The ongoing tensions in the Gulf region have prompted Gulf nations to revisit their strategic plans for pipeline infrastructure, despite the significant costs and complexities involved. The threat of prolonged Iranian control over the Strait of Hormuz has heightened concerns over potential disruptions to oil and gas exports, leading officials and industry leaders to explore alternative routes that bypass the vital chokepoint.
Historically, the 1,200-kilometer East-West pipeline in Saudi Arabia, constructed in the 1980s amidst fears of Iran-Iraq tanker conflicts, has proven crucial. Currently delivering around 7 million barrels of oil daily from the Red Sea port of Yanbu, it serves as a strategic lifeline by circumventing Hormuz entirely. Senior Gulf energy executives have praised the pipeline as a “genius masterstroke,” with Saudi Aramco CEO Amin Nasser emphasizing its importance as the primary export route.
Now, Saudi Arabia is evaluating options to increase its oil exports through pipelines, considering whether to expand the capacity of the existing East-West pipeline or develop entirely new routes. While previous regional pipeline projects faced delays due to high costs and political hurdles, there is a noticeable shift in the Gulf’s approach. Experts suggest the region is moving from hypothetical discussions toward concrete operational planning, envisioning a network of interconnected corridors rather than single alternative pipelines.
Long-term, these pipelines could form part of broader trade routes facilitating a wider array of goods beyond oil and gas. One such plan includes reviving US-led initiatives like the International Middle East Corridor (IMEC), which would connect India through the Gulf to Europe—though this project faces political sensitivities, especially concerning pipelines to Israeli ports.
Industry insiders highlight the significant obstacles ahead. Building new pipelines today could cost upwards of $5 billion for simpler routes, with multi-country projects potentially reaching $20 billion. Security risks remain high, including unexploded bombs in Iraq, militant activity, and threats to ports in Oman, such as recent drone attacks on Salalah.
Political considerations also pose challenges, particularly regarding pipeline operation and control. Establishing a regional network would require Gulf countries to coordinate more closely, moving away from traditional individualistic strategies and embracing shared infrastructure.
In the near term, expanding existing infrastructure—such as the East-West pipeline and Abu Dhabi’s route to Fujairah—appears to be the most feasible solution. Additionally, Saudi Arabia is exploring the development of new export terminals along its Red Sea coast, including at the port of Neom.
While no definitive decisions have been made, industry experts and officials agree that the current energy crisis demands innovative approaches. The UK is leading efforts to form a coalition of 35 countries to reopen the Strait of Hormuz, but Gulf states remain cautious, awaiting clarity on the waterway’s long-term status.
As one senior energy executive noted, “It’s a big problem, but smart minds are now actively looking for solutions.”
