LNG

Saudi East-West pipeline maxed out on Hormuz closure

Saudi East-West pipeline maxed out on Hormuz closure

Doha, 29 March (Argus) — Saudi Arabia's now primary export outlet, the 7mn b/d East-West pipeline, has reached full capacity, sources with knowledge of the matter told Argus . The kingdom has, over recent days, moved around 7mn b/d of crude through the pipeline, the sources said. The pipeline, which links Saudi Arabia's eastern oil fields to the Red Sea port of Yanbu, was developed during the 1980s Iran-Iraq "Tanker War" as part of contingency planning to maintain exports in the event of a closure of the strait of Hormuz. The US-Israel war with Iran which began on 28 February has effectively halted flows through Hormuz, after Tehran began threatening and targeting tankers in and around the strait. This has forced Saudi Arabia and other regional producers to shut in significant volumes of oil and gas output. State-controlled Saudi Aramco began offering customers in Asia-Pacific the option of loading crude from Yanbu during the first week of the war, ramping up exports from the Red Sea port. A large number of tankers have since been redirected to Yanbu. Crude exports via Yanbu have reached around 5mn b/d, with an additional 900,000 b/d of refined products also shipped from the Red Sea, the sources said. The pipeline also supplies around 2mn b/d to domestic Red Sea facilities, including 1.5mn–1.6mn b/d to refineries near Yanbu and 400,000–500,000 b/d to the Jizan refinery, as well as power and desalination plants along the coast. Despite operating at full capacity, flows through the pipeline remain insufficient to compensate for the loss of Hormuz, which previously handled around 15mn b/d of crude flows. Saudi Arabia exported around 7.1mn b/d of crude in February and averaged 6.3mn b/d in 2025, with roughly 5.5mn b/d previously shipped via the Mideast Gulf. The kingdom's ability to rapidly deploy spare infrastructure and reroute exports reinforces its position as the world's primary supplier of last resort. Saudi Arabia has also cut production by around 2.5mn b/d , shutting in several offshore fields — including Safaniya, Marjan, Zuluf and Abu Safa — in response to Iranian missile and drone threats targeting Gulf energy infrastructure. Infrastructure linked to Red Sea exports has also come under attack. Saudi Arabia's defence ministry on 20 March said that an Iranian drone struck near the 400,000 b/d Samref refinery in Yanbu, prompting a temporary halt to exports from the terminal. Meanwhile, Yemen's Iran-backed Houthi militants launched missiles at Israel on 28 March, marking its first direct involvement since the conflict began. The move raises the risk of further escalation in the Red Sea and around the Bab el-Mandeb, a critical route for global oil flows. The Houthis warned they would enter the conflict if US or Israeli operations expanded, although they have not yet indicated plans to target shipping. But the group has previously attacked tankers during the Gaza war. Any disruption to flows through Bab el-Mandeb would leave Saudi crude exports via the Red Sea dependent on transit through Egypt. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.