Aramco moves to expand export capacity amid Hormuz, Houthi threats

Saudi Aramco announced Tuesday that it is actively working to expand its oil export capacity, including potentially enlarging its East-West pipeline, as the Iran war continues to disrupt flows through the Strait of Hormuz and Houthi militants threaten the kingdom's alternative shipping routes.

Export Expansion and Pipeline Plans

Chief Executive Officer Amin Nasser said on an earnings call that the company is exploring multiple options to increase export flexibility. "In terms of exporting our crude, we are looking at actively increasing optionality right now," Nasser said. "This is currently under execution."rigzone+1

The East-West pipeline, which connects Saudi Arabia's eastern oil fields to its western Red Sea port of Yanbu, has served as a critical lifeline since the Strait of Hormuz was disrupted by the U.S.-Israeli war with Iran that began in February. Nasser said engineering teams are examining how to expand existing infrastructure while identifying new routes.rigzone

The urgency stems from a dual threat: Hormuz closures have already forced Aramco to reroute exports westward, while last month's declaration of a maritime blockade by Yemen's Houthi rebels now jeopardizes the Red Sea alternative. Exports to Asia via the Suez Canal or around Africa's Cape of Good Hope add 20 to 25 days to normal voyage times, Nasser noted.khaleejtimes+1

July Attacks Acknowledged

Aramco confirmed for the first time that its facilities were targeted in July attacks, which traders had observed through satellite imagery showing tank fires and flaring. Nasser said the strikes had "no material impact operationally or financially" and that Aramco's full production capacity of 12 million barrels per day remains available, with the ability to ramp up within three weeks if requested.bloomberg+2

Nasser warned that the world has lost more than 2.6 billion barrels of oil since the conflict began — equivalent to nearly a month of normal global production — and said it would take up to 18 months to replenish depleted inventories even if Hormuz reopened immediately.khaleejtimes

Najran Airport Struck

In a separate escalation on Tuesday, Yemen's Houthis claimed a drone strike on Najran Airport in southern Saudi Arabia, hitting its main radar and disrupting flight operations, according to AFP. The airport's website listed flight statuses as "unknown" for the coming days. The attack came as Aramco reported a 33 percent increase in second-quarter profit to approximately $33 billion, benefiting from war-driven oil prices.english.ahram+2