Alternative Shipping Routes
In June 2012, Saudi Arabia reopened the Iraq Pipeline through Saudi Arabia (IPSA), which was confiscated from Iraq in 2001 and travels from Iraq across Saudi Arabia to a Red Sea port. It will have a capacity of 1.65 million barrels per day.
In July 2012, the UAE began using a new pipeline from the Habshan fields in Abu Dhabi to the Fujairah oil terminal on the Gulf of Oman, effectively bypassing the Strait of Hormuz. It was constructed by China and will have a maximum capacity of around 2 million barrels per day, over three-fourths of the UAE's 2012 production rate. The UAE is also increasing Fujairah's storage and off-loading capacities.
In a July 2012 Foreign Policy article, Gal Luft compared Iran and the Strait of Hormuz to the Ottoman Empire and the Dardanelles, a choke point for shipments of Russian grain a century ago. He indicated that tensions involving the Strait of Hormuz are leading those currently dependent on shipments from the Gulf to find alternative shipping capabilities. He stated that Saudi Arabia was considering building new pipelines to Oman and Yemen, and that Iraq might revive the disused Iraq-Syria pipeline to ship crude to the Mediterranean. Luft stated that reducing Hormuz traffic "presents the West with a new opportunity to augment its current Iran containment strategy."
Read more about this topic: Strait Of Hormuz
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