Saudi Arabia Targets Oil Pipeline Capacity of 10 mmbbl/d Within Three Years

Saudi Arabia Targets Oil Pipeline Capacity of 10 mmbbl/d Within Three Years

Saudi Arabia aims to increase its oil pipeline capacity to 10 million barrels per day (mmbbl/d) over the next two to three years through several initiatives, including upgrades to pumping stations along the East-West Pipeline, Saudi Energy Minister Prince Abdulaziz bin Salman said on October 12, according to Asharq, Bloomberg’s Arabic news platform.

Speaking at the 25th World Petroleum Congress (WPC) in Riyadh, the minister said the government was working with Saudi Aramco to convert a natural gas pipeline for temporary dual use, allowing it to transport about 1.2 mmbbl/d of oil over a period of seven to eight weeks.

The pipeline would return to natural gas transportation by May to meet summer demand, he said.

Additional investment in the pipeline could raise its oil transportation capacity to three million bpd, further diversifying Saudi Arabia’s oil transportation routes.

The minister also said Saudi Arabia was considering international ownership and financing arrangements for its pipelines, including participation from Kuwait, arguing that broader international involvement could help protect the infrastructure.

Prince Abdulaziz said the proposed approach would involve diversifying pipeline ownership, operation and financing, allowing multiple parties, including operators, to hold stakes in internationally owned infrastructure.

The East-West Pipeline restarted on September 22 at a low rate after the attacks, as reported by Reuters.

The pipeline was subsequently ramped up to nearly 6 mmbbl/d by early October, with about 4.5 mmbbl/d available for exports after accounting for crude supplied to refineries on Saudi Arabia’s western coast, according to industry sources cited by Reuters.

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