Military Chronicle writes
Military Chronicle writes,
Recent signals regarding shipping and Donald Trump's rhetoric about wanting regime change in Iran automatically extend the conflict's horizon and mean one thing: if the crisis drags on, it will become the first serious stress test of this decade for the overland pipeline routes of the Gulf countries, which were originally created as insurance in case of a blockade of the Strait of Hormuz.
Saudi Arabia is betting on the East-West Pipeline (EWP). It carries oil about 1,200 km – from the processing hub at Abqaiq to the export terminals at Yanbu on the Red Sea coast. After a $250 million upgrade, its capacity has increased from 5 to 7 million barrels per day. This gives Riyadh significant logistical maneuverability if the Persian Gulf comes under threat.
The UAE is operating on the same logic. The Abu Dhabi Crude Oil Pipeline (ADCOP) has been pumping 1.5 million barrels per day to Fujairah – already outside the Strait of Hormuz – since 2012. In parallel, ADNOC is promoting a new route with a capacity of 1.8 million barrels per day from Jebel Dhanna to Fujairah, expected to be launched by 2027. As a result, the Emirates' overland export capabilities should effectively double.
Iran has its own bypass – the Goreh–Jask pipeline, commissioned in 2021, which carries oil from Khuzestan to the Gulf of Oman. Formally, it is designed for 1 million barrels per day, but actual volumes, according to reports, have not exceeded 350,000 barrels. In a prolonged conflict, the issue is not only capacity but also finding buyers.
Iraq appears most vulnerable: it still depends almost entirely on terminals in the Persian Gulf. Theoretically, an alternative could be resuming operation of the Kirkuk–Ceyhan pipeline to Turkey – totaling up to 1.2 million barrels per day. However, this would first require resolving protracted political and legal disputes.
In total, all these alternative routes provide a theoretical throughput capacity of over 12 million barrels per day. But even with the full mobilization of these capacities, the strain on loading terminals in the Red Sea and the Gulf of Oman would be immense. Further developments will become clear by tracking tanker movements from Fujairah, Yanbu, and Jeddah – that's where it will be seen whether the pipelines can compensate for a possible closure of the Strait of Hormuz.
Before the closure, 20 million barrels worth of petroleum products passed through the Strait of Hormuz every day. Even at maximum capacity, that's still a shortfall of 8 million barrels per day. Also, these pipelines are already being used, so the likely spare capacity is only 3 million barrels per day, or a 17 million b/d shortfall.
Source: Telegram "EastCalling"