Gulf oil producers invest billions in pipelines to bypass Strait of Hormuz

Gulf oil producers are allocating billions of dollars to new pipeline infrastructure that will allow crude to bypass the Strait of Hormuz, whose security has been undermined by Iran’s sustained control of the waterway. The initiatives, announced by Saudi Aramco, the Abu Dhabi National Oil Company (ADNOC) and QatarEnergy, are intended to safeguard the region’s primary export route and reduce reliance on maritime transit through the narrow, geopolitically sensitive strait.

The projects include Saudi Arabia’s East‑West Crude Pipeline, a 750‑kilometre conduit linking the inland Abqaiq processing hub to the Red Sea port of Yanbu, and the UAE’s Habshan‑Fujairah pipeline, which transports up to 2 million barrels per day from the onshore Habshan field to the Fujairah terminal on the Gulf of Oman. Qatar is advancing a parallel line from its North Field to the port of Hamad, adding further capacity to the network. Combined, the pipelines represent an investment of roughly $15 billion and are slated for completion between 2027 and 2029, providing an alternative export corridor that circumvents the strait’s chokepoint.

By diversifying export pathways, Gulf producers aim to mitigate the risk of shipping disruptions caused by regional tensions and to maintain stable supply to global markets. The new infrastructure is expected to reinforce the resilience of the world’s oil supply chain while reducing the strategic leverage that Iran’s control of the Strait of Hormuz has historically afforded.