Huge Gulf oil pipeline becomes savior when Hormuz paralyzed

Ngọc Vân |

Saudi Arabia and UAE's giant oil pipeline has become a "lifebuoy" for the world's energy supply as the Ormuz Strait is paralyzed.

These two oil pipelines are located in Saudi Arabia and the UAE, allowing crude oil to be transported to the sea without going through the Strait of Hormuz.

The largest pipeline is the East-West Crude Oil Pipeline, also known as Petroline of Saudi Arabia. The system is about 1,200km long, transporting oil from the Abqaiq oil center on the east coast of the Gulf to Yanbu port in the Red Sea.

It is estimated that Petroline's designed capacity currently reaches about 7 million barrels of oil per day after recent expansions. Saudi Arabian Oil and Gas Group Aramco said that the system may soon operate at full capacity in the next few days to compensate for the amount of oil that cannot pass through Hormuz.

The second smaller pipeline but also playing a strategic role is the Abu Dhabi Crude Oil Pipeline (ADCOP), connecting oil fields in Habshan with the UAE port of Fujairah outside Hormuz.

This approximately 400km long pipeline can transport about 1.5 million barrels of oil per day, with a maximum capacity of nearly 1.8 million barrels per day. Thanks to its direct connection to the Gulf of Oman, UAE oil can be exported without having to go through a risky shipping route.

According to energy experts, these two pipelines combined can help compensate for a significant part of the huge amount of oil that usually passes through Hormuz - about 20 million barrels per day, equivalent to nearly 20% of the global supply.

However, the possibility of replacement is still limited.

Energy analysis company Kpler said that the ADCOP pipeline of the UAE is currently operating at about 71% capacity, still with room for about 440,000 barrels/day. However, the risk of energy infrastructure being attacked in the context of widespread war is still a factor that makes exporters cautious.

In fact, some energy facilities in the UAE have begun to be affected. The Ruwais oil refinery - one of the largest oil refinery complexes in the Middle East - is said to have had to temporarily suspend operations after a fire at the complex.

This complex is capable of processing about 922,000 barrels of oil per day, and disruptions could affect the supply of refined oil products.

Experts at Rystad Energy warn that if Hormuz continues to be blockaded, many oil refineries in the region may be forced to reduce capacity because crude oil cannot be exported.

Meanwhile, the world oil market is still fluctuating strongly. Brent oil prices once jumped to nearly 120 USD/barrel when war broke out, before falling around 90-100 USD/barrel due to manufacturers trying to adjust supply.

However, analysts believe that if the conflict prolongs and the Gulf countries are forced to cut production, the global energy market may face a new shock. Two pipelines around Hormuz may help reduce pressure, but it is unlikely to completely replace the world's most important oil shipping route.

Ngọc Vân
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