Saudi oil under fire, Aramco plots new routes to keep barrels flowing
Saudi Aramco is diversifying its export routes and storage capabilities to mitigate risks from ongoing attacks on energy infrastructure by Houthi rebels. The company also announced long-term plans to significantly increase natural gas production by 2040.
Why it matters
The vulnerability of Saudi energy infrastructure poses a direct threat to global oil supply stability and market pricing.
Saudi Aramco is working on new oil export routes and overseas storage as repeated attacks on Saudi energy infrastructure and tankers expose vulnerabilities in the kingdom’s crude supply network.According to Reuters, Aramco CEO Amin Nasser said the company is working on a fourth and fifth export route and studying additional overseas storage to help deal with short-term disruptions.He said Aramco is currently meeting all customer requirements and can make 12 million barrels per day available within days if needed."We start repairing assets while they are still on fire," Nasser said, describing Aramco’s approach to damaged infrastructure.Nasser said Aramco continues to export crude through Yanbu as well as Egypt’s Sidi Kerir and Port Said, while also relying heavily on ship-to-ship transfers to keep supplies moving.Looking beyond the immediate oil supply disruptions, Nasser also outlined Aramco's longer term plans for natural gas.
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