Gulf producers look to pipelines, overseas storage to bypass Hormuz: Energy expert

Middle East oil producers are increasingly looking to invest in alternative export pipelines, overseas crude storage and international energy assets to reduce their dependence on the Strait of Hormuz, according to international energy expert Anas F Alhajji.

Speaking during an X Spaces session hosted by #Finance Daily on Thursday, Alhajji said Saudi Arabia, the UAE, Kuwait, and Iraq are pursuing measures ranging from new pipeline routes to storage facilities in overseas markets, potentially reshaping regional oil export infrastructure over the longer term.

The expert, who also wears the hat of Managing Partner of Texas-based consultancy Energy Outlook Advisors, said regional producers had increased exports through alternative arrangements involving the Gulf of Oman over the past eight weeks, but warned that the additional transportation costs could become unsustainable if oil prices decline.

According to OPEC estimates, in 2026, freight rates for a VLCC carrying crude from the Middle East to East Asia has risen about 12 times, from $3.18/barrel at the end of January 2026 to $37.13/barrel at the end of October 2026.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →