Aramco plans to increase the capacity of its East-West Crude Oil Pipeline, or Petroline, from 7 million to 10 million barrels a day, in a project expected to take two to three years. The roughly 750-mile network connects the Abqaiq processing hub near the Persian Gulf with the port of Yanbu on the Red Sea. According to the International Energy Agency, Saudi oil production fell from more than 10 million barrels a day before the war to about 8 million in September, after dropping below 7 million for much of the conflict’s first six months. Former U.S. Treasury official Gilbert Metcalf said the expansion could add about 2% to global oil supply and have only a limited effect on prices because the pipeline is vulnerable to attacks, spare refinery capacity may be insufficient, and threats around Bab al-Mandab remain. Kpler data showed that flows through Hormuz averaged just under 9 million barrels a day in September, roughly 44% of February’s level, while the Houthi blockade and repeated attacks on tankers have increased risks to Saudi exports through Yanbu.
Source: Read the original article
