The East-West pipeline is becoming increasingly important to Saudi Arabia’s crude export system as more volumes are shipped from the country’s west coast.

Saudi Arabia is increasingly transporting crude through the East-West pipeline to the export terminal at Yanbu on the country’s west coast. From there, crude can be shipped via the Red Sea to international markets without passing through the Strait of Hormuz.

This alternative export route has become increasingly important as traffic through Hormuz remains heavily constrained. Only ten vessel transits through the strait have been recorded so far in August, while traceable energy flows remain around 6 million barrels per day.

The increased use of Yanbu is therefore changing Saudi Arabia’s traditional export pattern, shifting a larger share of the country’s crude exports from the Persian Gulf to the Red Sea.

Sources: MB Shipbrokers & Clarksons Research