Existing bypass capacity for Gulf producers totals approximately 9M to 10M BPD, roughly half of the 20M BPD that flowed through the Strait of Hormuz before the war. The specific Duqm project is estimated to cost $7B for a 1,000 km pipeline with a capacity of 2M BPD and a completion timeline of 2 to 3 years. While these projects complement the 7M BPD East-West pipeline to Yanbu, analysts warn that the new routes remain within range of Iran and may lead to other regional chokepoints in the Red Sea.
Wednesday, October 21, 2026
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Gulf Oil Chiefs Seek Importer Funds for Hormuz Bypass Pipelines
Commodities15 days ago
Kuwait Petroleum Corporation is evaluating a shared oil pipeline to the Arabian Sea with Saudi Arabia to reduce reliance on the Strait of Hormuz. Aramco CEO Amin Nasser has urged global oil importers to help finance the construction of these new export routes and expanded storage closer to consumers, stating that no single country should face the burden of these costs alone. The partnership with Kuwait focuses on a planned route to Duqm, Oman, which Aramco is currently studying at the feasibility stage.
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