Overview
Saudi Arabia has announced plans to expand its pipeline-based crude export capacity to as much as 10 million barrels per day through a combination of a temporary conversion of a domestic gas pipeline to carry oil and targeted investment in its existing East-West pipeline system, Energy Minister Prince Abdulaziz bin Salman said on Monday at the World Petroleum Congress in Riyadh.
Short-term conversion and initial capacity gains
The minister said converting a gas pipeline for crude shipments on a temporary basis could allow the kingdom to add up to 1.2 million barrels per day of export capacity within seven to eight weeks. That measure is presented as a near-term option to increase the volume of crude that can be moved by pipeline rather than shipped through maritime channels.
Prince Abdulaziz added that, with additional investment, the conversion and related measures could yield up to 3 million bpd of extra pipeline export capacity in total. He indicated that Saudi Aramco may use the pipeline for oil transport through May, after which the line would need to be cleaned and returned to gas service ahead of the summer season.
Medium-term upgrades and diversion of shipments
The minister said upgrades to pumping stations on the kingdom's East-West pipeline and other infrastructure projects could enable larger-scale diversion of crude away from the main maritime Gulf and Red Sea routes. According to his statement, those infrastructure efforts could raise the capacity available to redirect shipments to around 10 million bpd over the next two to three years.
Operational constraints and timeline
The plan combines an immediate, temporary engineering solution with longer-term capital work on existing pipeline assets. The temporary conversion carries a defined operational window for oil transport until the pipeline must be cleaned and restored to gas service, while the fuller capacity expansion depends on implementing pumping-station upgrades and other infrastructure projects on a multi-year timeline.
Key points
- Saudi Arabia plans to raise pipeline crude export capacity toward 10 million bpd through a temporary gas-pipeline conversion and East-West network investments.
- An immediate conversion could add up to 1.2 million bpd within seven to eight weeks; further investment could lift that incremental gain to as much as 3 million bpd.
- Pumping-station upgrades and other infrastructure work could enable diversion of shipments from maritime Gulf and Red Sea routes to around 10 million bpd over the next two to three years.
Risks and uncertainties
- The temporary conversion is time-limited - the pipeline must be cleaned and returned to gas service after use, with Saudi Aramco's access to the line noted through May.
- The larger capacity increases beyond the initial temporary boost are contingent on additional investment and completion of upgrades to pumping stations and other infrastructure.
- The full shift to around 10 million bpd relies on projects expected to unfold over a two- to three-year period, introducing execution and timing uncertainty.
Impacted sectors
- Oil export logistics and pipeline operations
- Maritime shipping routes for crude through the Gulf and Red Sea
- Energy infrastructure and upstream crude transport planning