Aramco considers new export routes to boost oil supply resilience

Aramco President and CEO Amin Nasser affirmed the company’s ability to manage operational disruptions and restore operations within days, noting that Aramco previously demonstrated this by returning to full capacity within 11 days after the 2019 attacks.

In comments to Nikkei Asia, Nasser explained that Aramco currently has three main crude oil export routes: the Strait of Hormuz, the Red Sea route, and the SUMED pipeline through Egypt. He added that the company is considering establishing a fourth and fifth route to further enhance supply flexibility.

Nasser also noted that the East-West pipeline is not a single line, but consists of several pipelines, making it difficult to disrupt entirely and providing Aramco with greater flexibility in oil exports.

He indicated that Aramco is also studying the expansion of its storage capacity outside the Kingdom, including in Japan, to address short-term disruptions and ensure continued supply to customers in Japan, South Korea, China, and other markets, even amid lower production.

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Aramco’s response to market disruptions

Nasser also stated that additional volumes outside contractual agreements will not return to the market until conditions improve, adding that releases from International Energy Agency reserves and reduced Chinese imports have masked the true scale of disruption in the oil market.