Saudi Energy Minister: 5.8 Million Barrels of Oil Currently Flowing Through East-West Pipeline
Saudi Minister of Energy and Minister of Industry and Mineral Resources, Prince Abdulaziz bin Salman, stated that approximately 5.8 million barrels of oil are currently flowing through the East-West Pipeline, noting that diversified logistical options have helped the Kingdom and Gulf countries manage the crises the region has experienced.
Speaking during a panel discussion at the "Made in the Gulf" conference in Bahrain, Prince Abdulaziz bin Salman added that Gulf states have benefited from past crisis experiences, and that diversifying routes and logistical options were among the key factors enabling them to confront the repercussions of such crises.
He said efforts are underway to integrate the energy, industry, and mining systems, with completion of the merger expected by the end of November.
The Energy Minister clarified that the directive is clear regarding the necessity of localizing everything related to the energy sector, noting that facilities in the industry, mining, and energy sectors will employ at least 70% Saudis.
He added, "Localization gives us flexibility and resilience," referring to the importance of strengthening local capabilities and supply chains in the face of disruptions and crises.
This comes within the context of Saudi Arabia’s move to enhance integration among the energy, industry, and mining sectors, and to raise the level of local content and national capabilities in strategic sectors.
The East-West Pipeline is one of the main routes for oil transportation in Saudi Arabia, providing the Kingdom with a logistical option to transport crude oil to the Red Sea coast, thereby allowing greater flexibility in oil exports and bypassing certain risks associated with traditional shipping lanes.
Prince Abdulaziz bin Salman explained that the East-West Pipeline has helped support Saudi oil exports, as Aramco has used technologies and materials to reduce pressure on the pipelines, thereby increasing export capacity to approximately 7 million barrels.
The Saudi Energy Minister said the East-West Pipeline was reused just five or six days after the attack it suffered. He continued, "We could not have returned this quickly without the localization program in the Kingdom."
He added that the Kingdom is seeking to localize everything related to the energy system, noting that the door is open for all GCC member states to participate with the Kingdom.
Prince Abdulaziz bin Salman clarified that "the most important lesson we have learned is to localize everything we need, and this is a general rule whether in the energy sector or even in pharmaceuticals, food, and other areas."
