Saudi Aramco is fast-tracking an expansion of its East-West crude pipeline in the wake of a spate of incidents aff ecting the key strait of Hormuz. Capacity on the East-West pipeline, also known as the Petroline, which runs to the Red Sea, is expected to increase to 7mn b/d from 5mn b/d and should be operational by late September or early October. Saudi offi cials have been privately briefi ng that they intended to accelerate the expansion plans since the reimposition of US sanctions on Iran’s oil sector in November, with the project getting started in December. Tehran’s threats to tanker traffi c in the strait of Hormuz until its economic security is restored through the lifting of US sanc- tions on its oil exports probably lay behind the Saudi decision to rapidly speed up the expansion. Riyadh said as recently as April in its international bond prospectus that it envisaged completing the project in 2023.
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