Alternative Routes for Middle East Oil and Gas to Bypass the Strait of Hormuz
The Strait of Hormuz is widely regarded as the world's most crucial oil chokepoint, but the ongoing conflict between the United States, Israel, and Iran has severely disrupted shipping through this vital waterway. In the past twenty-four hours, shipping data indicates that only three vessels have managed to pass through the strait, highlighting the scale of the current crisis.
Before the war began on February 28, the Strait of Hormuz was handling approximately one-fifth of the global oil and liquefied natural gas supply. Although more than a dozen tankers transited the strait after Iran briefly declared it open on Friday, the situation remains precarious. A ceasefire between the U.S. and Iran appeared to be in jeopardy on Tuesday as Iran vowed to retaliate for the U.S. seizure of one of its vessels and refused to participate in new peace talks.
The International Energy Agency has described this disruption as the largest supply disruption on record, surpassing even the combined impact of the oil shocks of the 1970s and the loss of Russian pipeline gas following Moscow's invasion of Ukraine. In response to these challenges, several existing and potential alternative routes for oil and gas exports are being scrutinised as critical bypass options.
Existing Alternative Routes
East–West Pipeline (Saudi Arabia)
Saudi Arabia's 1,200-kilometre East–West pipeline has the capacity to transport up to seven million barrels per day of crude oil to the Red Sea port of Yanbu. Effective exports are estimated at around 4.5 million barrels per day, depending on tanker and jetty availability. From Yanbu, shipments can travel to Europe via the Suez Canal or head south via the Bab el-Mandeb strait to reach Asian markets. However, this southern route carries significant security risks due to attacks by Yemen's Houthi militants on tankers during the Gaza war.
Habshan–Fujairah Pipeline (UAE)
The Abu Dhabi Crude Oil Pipeline runs from Abu Dhabi's Habshan onshore fields to Fujairah on the Gulf of Oman, effectively bypassing the Strait of Hormuz. Operated by ADNOC and commissioned in 2012, this 360-kilometre pipeline has a capacity of approximately 1.5 to 1.8 million barrels per day. Unfortunately, oil loadings at Fujairah have been impacted by drone attacks since the conflict with Iran began at the end of February.
Kirkuk-Ceyhan Pipeline (Iraq-Turkey)
Iraq's primary northern export route runs from Kirkuk to Turkey's Mediterranean port of Ceyhan via the Kurdistan region. The pipeline resumed operations last September after a two-and-a-half-year shutdown, following an interim agreement between Baghdad and the Kurdistan Regional Government. On March 17, Iraq commenced pumping 170,000 barrels per day, with plans to increase this to 250,000 barrels per day, after Iraq's national oil company SOMO signed export contracts via Turkey, Jordan, and Syria.
Goreh-Jask Pipeline (Iran)
According to the International Energy Agency's latest oil market report, Iran may be able to utilise the Jask terminal, which is fed by the one million barrels per day Goreh-Jask pipeline, to bypass the Strait of Hormuz. Although the construction of the terminal is not entirely complete, a loading from Jask was successfully tested in 2024, indicating potential for future use.
Possible Future Alternative Routes
Iraq–Oman Pipeline
In September of last year, Iraq announced that it was considering the development of a pipeline from Basra to Oman's port of Duqm on the Gulf of Oman. This project is currently in its early conceptual stages, with potential routes under study including an overland line via neighbouring countries or a more expensive subsea pipeline.
Iraq–Jordan Pipeline
A proposed pipeline with a capacity of one million barrels per day would ship crude oil from Basra to Jordan's Red Sea port of Aqaba, effectively bypassing the Strait of Hormuz. First proposed in the 1980s and approved in principle in 2022, this project remains stalled due to significant cost, security, and political hurdles.
Gulf–Sea of Oman Canal
A conceptual canal bypassing the Strait of Hormuz, similar in scope to the Suez or Panama Canals, remains purely speculative at this stage. A project to cut through the Hajar Mountains toward Fujairah would face extreme engineering challenges and could require investment amounting to hundreds of billions of dollars.
