EIL in talks with Saudi Arabia, UAE for oil infra projects to bypass Strait of Hormuz
Engineers India Ltd is in early discussions with Saudi Arabia and the UAE to provide engineering services for new oil infrastructure. These projects aim to bypass the Strait of Hormuz, which has faced significant shipping disruptions due to regional conflicts.
Why it matters
Diversifying oil transport routes is critical for global energy security and reducing the economic impact of geopolitical tensions in the Middle East.
State-run Engineers India Ltd (EIL) is in early-stage discussions with Saudi Arabia and the UAE to provide consultancy and engineering services for oil and gas infrastructure aimed at reducing the Gulf producers' dependence on the Strait of Hormuz, which has been severely disrupted by the Iran conflict, its chairman said.
Saudi Arabia and the UAE are planning investments of about $1 billion in pipelines, storage facilities, oil terminals and related infrastructure to provide alternative routes for moving crude and petroleum products to international markets, EIL chairman and managing director Atul Gupta told reporters after the company's annual general meeting.
"They are at the planning stage and we are involved in discussions at the planning stage," Mr. Gupta said.
EIL is seeking project consultancy and feasibility-study mandates for the planned infrastructure, he said.
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