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Possible Petroline expansion shines a light on Saudi Arabia’s long-term strategy

Dr. Carole Nakhle, CEO of Crystol Energy, spoke to Mohammed Al Kinani of Arab News about Saudi Arabia’s potential expansion of the East West Crude Oil Pipeline, known as Petroline. Dr Nakhle explained that the proposed expansion is about more than increasing export capacity, describing it as an investment in strategic flexibility. By providing an alternative route that bypasses the Strait of Hormuz, Petroline allows Saudi Arabia to diversify its export options, strengthens its reputation as a reliable supplier and ensures that spare production capacity can continue reaching customers during periods of disruption.

Dr Nakhle added that greater pipeline capacity could strengthen market confidence during periods of geopolitical tension, although diversification reduces risk rather than eliminating it. She also stressed that additional capacity would not automatically translate into higher Saudi exports, which will continue to depend on global demand, competition and OPEC+ policy. Looking ahead, Saudi Arabia’s low production costs, significant spare capacity and export flexibility leave it well positioned, with competitiveness increasingly determined not only by the ability to produce oil, but also to deliver it reliably and efficiently.

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