Gulf Oil Producers Plan New Pipelines and Ports to Bypass Strait of Hormuz by 2027-2028

According to the New York Post, Gulf oil producers are planning new pipelines and ports to bypass the Strait of Hormuz following Iranian attacks on shipping. Goldman Sachs analyst Alexandra Paulus said on Monday that by end-2027, new pipelines should transfer 45% of pre-war Persian Gulf oil exports, with daily volumes bypassing the strait potentially reaching 7.3 million barrels by end-2028.

The UAE's West-East Pipeline is 50% complete and scheduled for completion by 2027, which will double Abu Dhabi's onshore capacity to 3.6 million barrels daily. Iraq launched its 435-mile Basra-Haditha pipeline in early May with a $1.5 billion budget, capable of transporting 2.5 million barrels daily. Saudi Arabia is also considering expanding its Red Sea pipeline capacity to 9 million barrels daily.