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Kuwait studies four-to-five-year oil pipeline projects to bypass Hormuz

. . . eyes Red Sea, Gulf of Oman routes for crude exports as Hormuz risks drive diversification

  • KPC CEO Sheikh Nawaf Al-Sabah said the corporation was in talks with both countries on expanding pipeline capacity to handle Kuwaiti shipments.

Kuwait is exploring two potential crude oil pipeline routes through Saudi Arabia and the United Arab Emirates to diversify its export options and reduce dependence on the Strait of Hormuz, with feasibility studies under discussion with both countries.

Mohammed Al-Abduljalil, Deputy CEO for Planning and Innovation at Kuwait Oil Company (KOC), said Kuwait Petroleum Corporation (KPC) had agreed with its Saudi and Emirati partners to study two separate projects originating from the Ahmadi area. Speaking on the sidelines of the PwC World Energy Congress in Riyadh on Tuesday, he stressed that both proposals remained at an early stage and no final investment decision had been taken.

The first proposed route would transport Kuwaiti crude from Ahmadi through Saudi Arabia to the Red Sea coast, linking with the Kingdom’s East-West pipeline network. The second would connect Kuwait’s oil exports to Fujairah on the Gulf of Oman through the UAE’s existing pipeline infrastructure, offering an alternative outlet that avoids the Strait of Hormuz.

Under the proposed Fujairah arrangement, Kuwaiti crude could be transported by tanker from Mina Al-Ahmadi to Abu Dhabi before being pumped through a pipeline to Fujairah, using the existing Habshan-Fujairah system or additional infrastructure. Al-Abduljalil also cited Duqm in Oman as a possible more distant destination.

Saudi Arabia and the UAE already operate major pipeline networks that allow crude oil to reach export terminals outside the Strait of Hormuz. The Saudi East-West pipeline has a stated capacity of approximately seven million barrels per day, while the UAE’s Habshan-Fujairah pipeline can transport between 1.5 million and 1.8 million barrels per day.

However, the proposed Kuwaiti projects would require substantial planning and investment. Al-Abduljalil said construction could take four to five years if Kuwait decided to proceed with either project, underscoring that the proposals were part of a long-term strategy rather than an immediate alternative in the event of a shipping disruption.

Kuwait had previously discussed the use and potential expansion of Saudi and Emirati pipeline networks to accommodate its crude exports. In June, KPC CEO Sheikh Nawaf Al-Sabah said the corporation was in talks with both countries on expanding pipeline capacity to handle Kuwaiti shipments.

Saudi Energy Minister Prince Abdulaziz bin Salman also indicated at the World Energy Congress that international ownership and financing of pipeline infrastructure, including Kuwaiti participation, were being considered. He said Saudi Arabia aimed to raise its oil pipeline capacity to 10 million barrels per day within the next two to three years.

For Kuwait, the feasibility studies could help establish additional export corridors and strengthen the resilience of its oil supply chain. The projects’ eventual viability, however, will depend on the findings of the studies, infrastructure requirements, commercial arrangements and a final decision by the parties involved.




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