Svmuu News: Five people familiar with the matter revealed that Saudi Arabia is considering expanding the capacity of its crude oil pipeline to the western coast of the Red Sea, enabling Saudi Arabia and its neighbors to transport more oil without passing through the Strait of Hormuz. Built in the early 1980s, this east-west pipeline has taken on increasing strategic importance since the outbreak of the Iran-Iraq War in February and the subsequent disruption of shipping through the Strait of Hormuz. The pipeline can transport up to 7 million barrels of crude oil per day to the port of Yanbu on the Red Sea. The CEO of Saudi Aramco stated in May that approximately 2 million barrels of that volume supply refineries on the west coast, while about 5 million barrels are destined for export. Sources say Saudi Arabia is engaged in preliminary discussions with some neighboring countries regarding the pipeline expansion, with plans to add approximately 2 million barrels per day of pipeline capacity. It remains unclear whether Aramco’s planned expansion involves upgrading existing infrastructure or constructing a new pipeline. One of the sources said the expansion plan also includes a smaller pipeline for refined products. Two sources said the expansion could range from 1 million to 2 million barrels per day, with refined products also under consideration. Another source indicated that the project would take several years to complete, cost tens of billions of dollars, and require adjustments to the pricing mechanism for Saudi crude oil. (Jin Shi)