Saudi Aramco Plans Alternative Oil Supply Route for Asian Buyers Amid Hormuz Tensions

RIYADH: Saudi state-owned oil giant Saudi Aramco is exploring alternative routes to supply crude oil to Asian refineries as disruptions and security concerns in the Strait of Hormuz continue to affect maritime traffic.

According to sources cited by the British news agency, Aramco is holding private discussions with some Asian buyers over the possibility of delivering Arab Medium and Arab Heavy crude through ship-to-ship transfers at sea near the UAE port of Fujairah.

The crude shipments are reportedly being considered for loading in September, with the proposed arrangement designed to deliver Saudi oil to Asian customers without requiring tankers to pass through the Strait of Hormuz.

Security concerns around the strategically important waterway have prompted several shipping companies to reduce or avoid operations in the area, creating additional challenges for oil exporters and buyers.

Aramco has already shifted some Arab Light crude exports to the Red Sea port of Yanbu, according to the report.

The company has also offered supplies through Egypt’s Mediterranean port of Sidi Kerir, providing another potential route for reaching international markets while avoiding the Strait of Hormuz.

Aramco has not publicly commented on the reported discussions.

Disruptions around the Strait of Hormuz and the Red Sea have affected Saudi oil sales to major Asian markets, including India, according to the report.

The Strait of Hormuz remains one of the world’s most important energy corridors, making any prolonged disruption a major concern for oil producers, shipping companies and Asian economies heavily dependent on crude imports.

Meanwhile, the United Arab Emirates has continued efforts to maintain crude exports by transporting oil from within the Gulf to routes outside the Strait of Hormuz.

The latest developments indicate that major Gulf oil producers are increasingly exploring alternative export routes and logistics arrangements to maintain supplies to Asian customers amid heightened maritime security risks.