Oil flows at Egypt’s Sumed pipeline up 150% since start of war

Oil flows through Egypt’s Sumed pipeline have reportedly surged by 150 percent since the start of the Iran conflict.

The Suez-Mediterranean pipeline has become a safe corridor for transporting crude oil from the Red Sea, a government official told the Asharq Business website.

The pipeline, owned by the Arab Petroleum Pipelines Company, is currently operating at its maximum capacity of 2.5 million barrels per day, the report said.

Arab Petroleum Pipelines is a venture led by the Egyptian General Petroleum Corporation, which holds a 50 percent stake. 

The remaining shares are held by Saudi Aramco (15 percent), three Kuwaiti companies (15 percent), the UAE’s Mubadala Energy (15 percent) and QatarEnergy (5 percent), according to company data.

Last month Aramco CEO Amin Nasser said the Abqaiq-Yanbu pipeline, which bypasses the Gulf, will allow the company to transport 7 million barrels a day.  

Oil markets have proved volatile in recent days, with the Brent crude benchmark shooting up to nearly $120 a barrel in March. Around a fifth of the world’s oil exports typically pass through the Strait of Hormuz.  

Data shared with AGBI by maritime intelligence company Pole Star Global captures 3,208 vessels still signalling their presence in and around the chokepoint on March 20. They include bulk carriers, crude and oil products tankers, container ships, tugs and general cargo. 

Further reading:

• Iraq targets 650,000 barrels per day oil exports via Turkey
• Opinion: Gulf oil producers can bypass Hormuz – but cannot replace it
• Arab oil capacity dented as Iran war forces output cuts