TotalEnergies Invests in Two Oil Pipelines Bypassing Hormuz
TotalEnergies has decided to invest in two oil transport routes that do not pass through the Strait of Hormuz. This is part of a strategy to diversify transport risks by bypassing a key bottleneck for Middle Eastern oil heading to Asia. On the 24th at the ONS Energy Conference in Stavanger, Norway, CEO Patrick Pouyanné announced plans to participate in the expansion of the Abu Dhabi-Fujairah export route and a route that sends Iraqi oil through Syria to the Mediterranean. The investment amount and equity stake were not disclosed. Pouyanné stated that they would become a partner in the pipeline from Baghdad to Syria and would invest in doubling the Fujairah pipeline in Abu Dhabi. The Abu Dhabi National Oil Company (ADNOC) reported that the construction of the second pipeline to double the export capacity through the Port of Fujairah is 50% complete. The Strait of Hormuz remains a bottleneck in the global energy market, with an average of 20 million barrels of oil and petroleum products passing through it daily in 2024, accounting for about 20% of global liquid oil consumption. The Iraq-Syria route is expected to require at least $15 billion and approximately four years for construction. TotalEnergies' decision is interpreted as a measure to diversify transport routes rather than a shift in short-term cargo volumes.
-- Price
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