Rystad Energy Highlights Risks To Global Energy Via Strait Of Hormuz

(MENAFN- Trend News Agency) BAKU, Azerbaijan, September 8. The Strait of Hormuz continues to play a central role in global energy security, says Rystad Energy's latest analysis of the world's most important maritime chokepoints, Trend reports.

Situated between Iran to the north and Oman and the UAE to the south, the strait handles about one-fifth of global maritime oil and condensate trade and nearly half of daily Middle Eastern oil and condensate production, approximately 14 million barrels per day (bpd). Around half of Saudi Arabia and the UAE's oil exports and roughly one-fourth of China's daily oil demand pass through the waterway.

The strait is also a key route for LNG, with about one-fifth of globally traded LNG volumes transported through it. Qatar ships around two-thirds of its daily gas production, roughly 16.3 billion cubic feet per day, through the strait to markets including China, India, and South Korea. China's LNG imports via the Strait of Hormuz have increased 2.5 times over the past five years, reaching 2.7 Bcfd.

Rystad Energy analysts highlighted that regional tensions, such as the recent Iran-Israel conflict and a proposed Iranian parliamentary bill to close the strait, underscore its strategic importance. Closure of the strait could disrupt nearly half of Middle Eastern oil exports, potentially driving up global oil prices and energy costs for dependent nations.

To mitigate such risks, countries in the region have developed alternative export routes. These include Saudi Arabia's East-West Crude Pipeline (5 million bpd capacity), the UAE's Abu Dhabi Crude Oil Pipeline (1.8 million bpd), and Iran's Goreh-Jask pipeline, which bypasses the strait.

Mrinal Bhardwaj, Senior Analyst at Rystad Energy, emphasized the need for continued monitoring and development of these alternatives to ensure global energy supply stability.

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