Saudi Arabia Started Work on 1,000 km Oil Pipeline
The proposed infrastructure project will help energy firms bypass the Strait of Hormuz to reach the Indian Ocean.
Updated on Oct. 1, 2026 in Oil and Gas
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Saudi Arabia has commenced work on a pipeline spanning approximately 1,000 km to the coastal city of Duqm in Oman. The project, currently in the feasibility study stage, aims to secure export routes.
Why it matters
By providing a direct path to the coast of Oman, the pipeline would mitigate the strategic risk of Iranian-backed disruptions in the Strait of Hormuz. This shift seeks to improve energy security and supply chain reliability for international oil operators.
The proposed infrastructure project carries an estimated development cost of up to $7 billion, or approximately AED 25.7 billion. The 1,000 km pipeline is designed to potentially terminate at the port of Ras Markaz.
The players
TotalEnergies
A global multi-energy company engaged in oil, gas, and renewable power production.
Saudi Arabia
A major global oil-producing nation and key player in international energy export markets.
The details
The pipeline aims to reroute crude oil flows to the Omani coast, providing an alternative to the Strait of Hormuz, which sits within 650-700 km of Iranian territory. By shifting transit to the Indian Ocean via Duqm, companies may reduce the risk profile of their maritime export routes. The project is currently undergoing a formal feasibility study to determine final logistics and feasibility.
Timeline
September 28, 2026: TotalEnergies CEO announced that pipeline work began.
Market Landscape
This project marks a significant attempt by regional producers to move away from the historical transit reliance on the Strait of Hormuz. It follows a pattern of infrastructure investment aimed at securing energy supply chains against regional security risks.
Operators in the energy sector should monitor feasibility study results to gauge the timeline for alternative export capacity. Factoring in potential shifts in transit security insurance premiums remains a key consideration for regional supply chain planning.
The takeaway
The proposed pipeline is a direct response to security risks in the Strait of Hormuz, signaling a broader industry focus on diversifying export pathways. Operators should track the progress of the feasibility study as a signal for potential changes to long-term maritime logistics planning.
Further reading
For more on international energy infrastructure trends, visit our Oil and Gas section.
Source note: This article includes information reported by Oil & Gas Middle East.
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