Kuwait: Alternative Oil Pipelines via Saudi Arabia and the UAE
The Kuwait Petroleum Corporation is studying the creation of two oil pipelines through Saudi Arabia and the UAE to provide alternative routes away from the Strait of Hormuz.
Translated by Qiyas from النهار — Original source
Mohammed Al-Abdulkareem, Deputy Chief Executive Officer for Planning and Innovation at Kuwait Oil Company (KOC), told Bloomberg Al-Sharq that the Kuwait Petroleum Corporation (KPC) is studying the creation of two pipelines to transport crude oil through Saudi Arabia and the United Arab Emirates, a move aimed at providing alternative export routes away from the Strait of Hormuz. He added that the corporation has agreed with Saudi Arabia and the UAE to conduct feasibility studies for two separate projects originating from the Ahmadi area in Kuwait; the first extends through Saudi Arabia to the Red Sea coast, while the second heads through the UAE to Fujairah.
The first project, still under study, aims to establish a pipeline to transport crude from Ahmadi to the Saudi coast on the Red Sea, via the East-West Pipeline, which connects the kingdom’s oil-producing regions in the east to its western coast. Yesterday, Monday, Saudi Energy Minister and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman, during his speech at the World Energy Congress, pointed to a trend toward the internationalization of pipeline ownership and financing, including Kuwaiti participation. He also announced that Saudi Arabia aims to increase oil pipeline capacity to 10 million barrels per day within the next two to three years.
The second project involves creating a pipeline to transport Kuwaiti crude from Ahmadi to Fujairah, via the existing Habshan-Fujairah pipeline route in the UAE, enabling oil access to the Sea of Oman coast outside the Strait of Hormuz.
Regarding the Fujairah pipeline, Al-Abdulkareem explained that Kuwaiti crude would be transported by sea on tankers from the Mina Al-Ahmadi port to Abu Dhabi, before being pumped through a pipeline that would allow it to be transported to Fujairah, alongside the existing Habshan-Fujairah pipeline, or possibly to a more distant destination, such as Duqm in Oman. The existing infrastructure in Saudi Arabia and the UAE gives both countries the capacity to transport large volumes of crude to ports outside the Strait of Hormuz. The full capacity of the Saudi East-West Pipeline is approximately 7 million barrels per day, while the capacity of the UAE’s Habshan-Fujairah pipeline ranges between 1.5 and 1.8 million barrels per day.
He emphasized that both projects are still in very early stages, and the agreement to conduct feasibility studies does not constitute a final investment decision to proceed with implementation. Al-Abdulkareem confirmed to Bloomberg Al-Sharq: “We are still in a very early stage of studying the projects. If we decide to proceed with the construction of any of them, it will take four to five years to build.” This timeframe places the projects within a long-term strategy to enhance the resilience of Kuwait’s oil export system, rather than serving as an immediate solution to any disruption in maritime shipping.
Kuwait had already begun talks with Saudi Arabia and the UAE regarding the use of their pipeline networks to accommodate its oil exports, as part of its efforts to find alternative export routes. Last June, KPC Chairman Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah stated that the corporation was discussing with both countries the expansion of pipeline systems to allow for the accommodation of Kuwaiti oil shipments.
