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Gulf States Explore New Energy Export Routes Amid Hormuz Crisis
(MENAFN) Gulf countries are seeking alternative routes for exporting oil and gas as the security situation around the Strait of Hormuz threatens to expose weaknesses in regional energy infrastructure.
The crisis followed joint US and Israeli strikes on Iran at the end of February, after which Tehran closed the strategic waterway in retaliation.
The Strait of Hormuz normally carries about 20% of the world’s oil supplies. Its closure has affected Gulf producers differently, depending on the availability and capacity of infrastructure capable of bypassing the strategic passage.
According to the US Energy Information Administration, Saudi Arabia and the United Arab Emirates are the only Gulf countries with operational pipeline networks that can transport exports without using the strait.
Kuwait, Qatar and Bahrain remain dependent on maritime routes through Hormuz and lack alternative export infrastructure, while Oman’s geographic position gives it an advantage because it lies outside the chokepoint.
Kuwait experienced severe economic disruption after the closure, with no immediate alternative route available. Its daily crude production dropped from about 2.6 million barrels before the conflict to just 573,000 barrels in May after its storage facilities reached capacity.
Kuwait’s crude exports later increased to around 1 million barrels per day by September, but this was still less than 36% of their pre-war level.
The crisis followed joint US and Israeli strikes on Iran at the end of February, after which Tehran closed the strategic waterway in retaliation.
The Strait of Hormuz normally carries about 20% of the world’s oil supplies. Its closure has affected Gulf producers differently, depending on the availability and capacity of infrastructure capable of bypassing the strategic passage.
According to the US Energy Information Administration, Saudi Arabia and the United Arab Emirates are the only Gulf countries with operational pipeline networks that can transport exports without using the strait.
Kuwait, Qatar and Bahrain remain dependent on maritime routes through Hormuz and lack alternative export infrastructure, while Oman’s geographic position gives it an advantage because it lies outside the chokepoint.
Kuwait experienced severe economic disruption after the closure, with no immediate alternative route available. Its daily crude production dropped from about 2.6 million barrels before the conflict to just 573,000 barrels in May after its storage facilities reached capacity.
Kuwait’s crude exports later increased to around 1 million barrels per day by September, but this was still less than 36% of their pre-war level.
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