Saudi oil export routes: the East-West pipeline, expansion talks and Q2 earnings

Saudi Arabia already had an alternative in place when the Iran war disrupted tanker traffic through Hormuz from February 2026. A pipeline laid in the early 1980s linked the Kingdom’s eastern oilfields with Yanbu on the Red Sea, and industry reports in July 2026 described it as critical to Saudi exports.

Whether that line should grow is now a regional question. Talks on a possible Aramco pipeline expansion involve Kuwait and other neighbours, while the company’s leaders say they are studying extra export capacity and alternative routes.

How the East-West line keeps crude moving

Known as Petroline, the line runs roughly 1,200 km across the Kingdom, according to reporting from July 2019. Its capacity then was 5 million barrels per day (bpd), and the energy minister of the day set a goal of 7 million bpd within two years.

Industry reports in July 2026 said it now carries up to 7 million bpd. Not all of that is shipped abroad: Aramco CEO Amin Nasser, in comments reported on 7 July, said about 2 million bpd supplies west-coast refineries, leaving roughly 5 million bpd for export.

Expansion talks with Gulf neighbours

According to industry reports on 7 July 2026, Saudi Arabia is weighing an increase of up to 2 million bpd to lift export capacity and cut its reliance on Hormuz. Early talks with neighbouring states cover 1 to 2 million bpd, the reports said, and it is not clear whether that would come from upgrades or new infrastructure. Aramco declined to comment.

Kuwait has confirmed its interest. Sheikh Nawaf Al-Sabah, chief executive of Kuwait Petroleum Corporation, said in comments reported the same day that Kuwait was in talks with Saudi Arabia and the UAE on expanding their pipelines to carry Kuwaiti crude.

The catch: time, cost and pricing

The July reports flagged hurdles as well as benefits:

• Construction would take several years.
• The bill would run into billions.
• Saudi crude pricing might have to change.
• A second line for refined products could be part of the plan, one source said.
• Kuwait, Bahrain and Qatar, all heavily reliant on Hormuz, would gain alternative outlets.

Separately, Qatar is assessing LNG export routes through Saudi Arabia, and the UAE’s bypass pipeline expansion was about half finished and set to eventually double its crude export capacity to Fujairah, the reports said.

Second-quarter earnings: two measures, two sources

Higher oil prices shaped the latest quarter at Saudi Aramco, whose profit has been reported in two ways that should not be blended.

Kamco’s wider analysis links part of the gain to prices. Higher average crude prices more than offset lower crude exports from the region, it found, as GCC-listed companies posted a record $74.8 billion in net profit for the second quarter of 2026, up 31.3 percent from a year earlier.

What Aramco’s leaders expect next

Speaking in early August, Chief Financial Officer Ziad Al-Murshed credited multiple export routes with helping Aramco handle the Hormuz disruption effectively, and said a high share of local content had sped up repairs after attacks. He added that the company stands to benefit once the conflict ends and buyers rebuild depleted inventories.

His numbers: a 22 percent return on investment in the 12 months to 30 June, which he described as the highest in the global oil industry, and a gearing ratio that slipped to 6.2 percent from 6.5 percent over the same period.

Nasser, in comments reported on 5 August, estimated that the conflict had taken about 11 million barrels a day of liquids supply off the market, with more than 100 million barrels lost for each week Hormuz stayed shut. Refilling inventories could take around 18 months even if shipping restarted at once, he said. Attacks on Aramco sites, including in July, had no material financial or operational impact, he added, and the company is looking to add export capacity and use other routes.

The bottom line

The East-West line has kept Saudi crude flowing around Hormuz, with roughly 5 million bpd of export room by Nasser’s July figure. Widening it for neighbours’ barrels remains at the talks stage, and the July reports point to years of work and a multibillion bill.

Would a larger Gulf pipeline network change how you judge the region’s reliance on Hormuz?