Major Global Energy Lifeline Struck This Week

Photo credit: Financial TImes

Major Global Energy Lifeline Struck This Week

A vital pipeline in Saudi Arabia, which delivers oil to global markets, was hit on Wednesday, according to reports, intensifying concerns over the stability of global energy supplies already strained by the Iran war.

Tehran’s decision to effectively close the Strait of Hormuz, the main sea route used by tankers carrying millions of barrels of oil from the Persian Gulf to the rest of the world, has given Saudi Arabia’s East-West Pipeline a central role in the global flow of energy supplies, The Caspian Post reports, citing CNN.

The pipeline runs from Saudi oil fields in the east of the country to the Red Sea port of Yanbu, bypassing the Strait of Hormuz. It can transport a significant portion of the kingdom’s oil to international markets every day.

Last month, Saudi Aramco, the world’s largest oil producer, announced that it would reroute millions of barrels of crude, normally loaded in the Persian Gulf and shipped through the strait, via this pipeline.

At full capacity, the East-West Pipeline can carry up to 7 million barrels of crude oil per day, according to Saudi Aramco. This offsets, to some extent, the roughly 15 million barrels per day that typically pass through the Strait of Hormuz.

Attacks on a key pumping station reduced the pipeline’s throughput by 700,000 barrels per day, an official at the Saudi energy ministry told state news agency SPA. Additional strikes on other facilities knocked out hundreds of thousands more barrels of daily production capacity. The SPA report dated Thursday did not say when the attacks took place.

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Major Global Energy Lifeline Struck This Week

A vital pipeline in Saudi Arabia, which delivers oil to global markets, was hit on Wednesday, according to reports, intensifying concerns over the stability of global energy supplies already strained by the Iran war.