In bid to bypass Hormuz chokepoint, Gulf countries scramble to ramp up infra, Pg1

Key Highlights:

• Gulf countries, led by the UAE and Saudi Arabia, are accelerating infrastructure projects to reduce reliance on the Strait of Hormuz following disruptions caused by the Iran-Israel/US conflict.
• The conflict, which began on February 28, resulted in an unprecedented halt in maritime traffic through the Strait, impacting about one-fifth of global oil and liquefied natural gas (LNG) flows.
• Existing pipelines, such as Saudi Arabia’s East-West pipeline and the UAE’s Abu Dhabi Crude Oil Pipeline (ADCOP), have demonstrated the potential to bypass the Strait, though current volumes are limited.
• Plans are being considered to expand existing pipelines, revive old ones like the Iraq-Turkey pipeline, and construct new ones to divert exports through alternative routes like the Gulf of Oman and Red Sea.

Detailed Insights:

• The Iran-Israel/US conflict has highlighted the vulnerability of global supply chains dependent on the Strait of Hormuz, prompting Gulf states to prioritize intraregional economic integration and infrastructure development.
• Reactivating the IPSA pipeline, linking Iraq to Saudi Arabia and onward to Yanbu on the Red Sea, could provide a substantial alternative export route, but requires significant technical refurbishment and political coordination.
• While Saudi Arabia and the UAE have existing bypass pipelines, countries like Kuwait, Qatar, and Bahrain face geographical limitations, making collaboration with neighbors and building up storage capacity crucial.
• Reviving defunct pipelines like the one connecting Kirkuk in Iraq with the Syrian port of Baniyas and the Iraq-Syria-Lebanon pipeline faces challenges due to regional political tensions and security concerns.
• The expansion of pipeline infrastructure will require significant financial investment, years to realize, and a high degree of cooperation between Gulf states, but is seen as essential to de-risk regional economies and global supply chains.

Key Concepts Involved:

• Chokepoint: A narrow passage, such as a strait, that restricts traffic, especially maritime traffic, making it vulnerable to disruption.
• Liquefied Natural Gas (LNG): Natural gas that has been cooled to liquid form for ease of storage and transportation.
• Pipeline Infrastructure: Systems of pipelines, including construction, expansion and revival, used for transporting crude oil and natural gas.