Iran's escalating threats to the Strait of Hormuz are pushing Gulf oil-producing nations to shift from strategic assumptions to practical implementation of bypass pipeline plans. Saudi Arabia's 1,200-kilometer East-West pipeline, capable of rerouting seven million barrels of crude oil daily, has become a benchmark reference; Abu Dhabi also has a contingency plan for a second pipeline leading to the Port of Fujairah. However, the cost of new routes ranges from $50 billion to $200 billion, with security risks and multi-national political maneuvering presenting equally daunting challenges.
The persistent threat by Iran to the Strait of Hormuz is forcing Gulf oil producers to reconsider a costly yet increasingly urgent option: building new pipelines that bypass this critical global energy chokepoint.
According to CCTV International, the Financial Times reported today (April 2) that Gulf states are considering constructing new pipelines to circumvent the Strait of Hormuz.
Multiple officials and industry executives have stated that the new pipeline may be the only viable solution to reduce Gulf nations' reliance on the Strait of Hormuz. Saudi Arabia is evaluating whether to expand its existing East-West pipeline or explore new routes, while Abu Dhabi is reportedly maintaining a 'backup plan' for a pipeline to the Port of Fujairah.
This round of discussions is taking place against a backdrop of escalating tensions in the Strait of Hormuz, with related conflicts intensifying concerns over energy export security.
Maisoon Kafafy, Senior Advisor to the Atlantic Council's Middle East program, noted that the atmosphere in the Gulf region has shifted – 'I sense a trend moving from hypothetical discussions to practical implementation, with everyone looking at the same map and arriving at the same conclusions.'
Saudi East-West Pipeline as Strategic Benchmark
Saudi Arabia’s 1,200-kilometer East-West pipeline, constructed in the 1980s during the Iran-Iraq War when fears of a potential closure of the Strait of Hormuz prompted its development, has now become the central reference point in these discussions. Currently, it can transport seven million barrels of crude oil daily to the Red Sea port of Yanbu, entirely bypassing the Strait of Hormuz.
'In hindsight, the East-West pipeline was a stroke of genius,' remarked a Gulf energy executive. Last month, Saudi Aramco CEO Amin Nasser also told analysts that this pipeline is a 'major route the company is fully leveraging.'
Saudi Arabia currently produces about 10.2 million barrels of crude oil per day and is exploring ways to export more oil through pipelines rather than via Iranian-controlled waters, including assessing whether to further expand the capacity of the East-West pipeline or establish new routes. On the Abu Dhabi side, according to a senior energy executive, Abu Dhabi National Oil Company (Adnoc) 'has always maintained a backup plan for a second pipeline to the Port of Fujairah,' but no final decision is expected until the long-term outlook for the Strait of Hormuz becomes clearer.
New Pipeline Network: Promising Prospects but Obstructed by Numerous Challenges
Despite the clear strategic needs, new pipeline projects continue to face significant challenges. Christopher Bush, CEO of Cat Group, estimates that replicating just one line of the East-West pipeline today would cost at least 5 billion USD – this is the same pipeline that originally traversed the hard basalt layers of the Hijaz Mountains along Saudi Arabia’s Red Sea coast. If the route involves a complex multi-country path passing through Iraq, Jordan, Syria, or Turkey, costs could rise to between 15 and 20 billion USD.
Security risks cannot be overlooked either. Bush pointed out that there are numerous unexploded ordnances within Iraq, alongside persistent threats from armed groups like ISIS; pipelines extending southward to Omani ports must cross deserts and rugged mountainous terrain. The Omani ports themselves are not immune to danger – the Port of Salalah was recently struck by drone attacks, forcing it to briefly shut down.
The complexity on the political front is equally formidable. Bush noted that a pipeline network requires Gulf nations to “abandon their independent policies and achieve unity,” whereas historically, “shipping oil has always been considered cheaper and safer.” Kafafy argued that the most resilient solution is not a single alternative pipeline, but rather “a network of corridors,” though she admitted that this is also the most difficult option to realize.
In more long-term planning, the new pipelines are expected to integrate into broader trade corridors. A Gulf official mentioned that the U.S.-led “India-Middle East-Europe Economic Corridor” (IMEC) initiative might be restarted, although the project originally included a pipeline segment leading to the Israeli port of Haifa.
Editor/Melody