Gulf Nations Review Energy Routes to Reduce Reliance on Strait of Hormuz

(MENAFN) Gulf countries are reconsidering pipeline projects that would avoid the Strait of Hormuz, as ongoing conflict raises concerns about regional reliance on one of the world’s most critical oil and gas chokepoints, according to reports.

The debate has intensified amid fears that extended Iranian control or disruption in the strait could leave Gulf exporters vulnerable, prompting officials and industry leaders to revisit options previously deemed too costly or challenging.

The current situation has highlighted the strategic significance of Saudi Arabia’s 1,200-kilometer East-West pipeline, which transports crude to the Red Sea port of Yanbu, enabling exports to bypass Hormuz entirely. One senior Gulf energy executive described the pipeline as looking “like a genius masterstroke” in hindsight.

Saudi Aramco CEO Amin Nasser emphasized its importance, noting it is the “main route that we are capitalizing on right now,” as Saudi Arabia considers expanding its capacity or building additional export terminals along the Red Sea coast.

Long-term options could involve broader trade corridors connecting India, the Gulf, and Europe, while some executives foresee pipelines to Mediterranean outlets eventually being constructed. Yossi Abu, CEO of Israel’s NewMed Energy, said: “People need to control their own destinies, with their friends.”

However, industry leaders warn that the challenges remain substantial. Christopher Bush, CEO of Lebanon-based Cat Group, noted that replicating Saudi Arabia’s East-West pipeline would cost at least $5 billion today, while more complex routes from Iraq through Jordan, Syria, or Türkiye could require $15 billion to $20 billion.

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