Aramco CEO Eyes More Overseas Oil Storage in Response to Customer Demand
By Farhan Rafid
Saudi Aramco is seeking additional overseas oil storage capacity after receiving requests from customers and partners, as the Middle East conflict disrupts shipping and exposes vulnerabilities in global energy supply routes.
Chief Executive Amin H. Nasser said during the Saudi energy giant's third-quarter earnings call Tuesday that the company was working on the requests and estimated that filling additional storage facilities could generate around 1 million barrels a day of oil demand.
The comments come as Gulf oil producers seek to expand storage facilities outside the region to protect shipments from disruptions in the Strait of Hormuz and other shipping routes, The Wall Street Journal reported last week, as the U.S.-Iran war exposed risks to energy infrastructure and transport networks in the region.
Nasser said the conflict had reduced the effective availability of the global tanker fleet by around 40%, with roughly 540 very large crude carriers affected by shipping disruptions. Aramco has also used ship-to-ship transfers to maintain deliveries, while some customers have been reluctant to load cargoes inside the Strait of Hormuz, he said.
The company is also studying additional oil export routes and plans to increase the capacity of its East-West pipeline from 7 million to 10 million barrels a day, a target previously mentioned by Saudi officials. Nasser said details of other potential routes wouldn't be announced before final investment decisions.
Nasser warned that even countries holding 90 days of strategic oil reserves could face shortages during prolonged disruptions, and said producers and consumers should share the financial burden of improving energy security.
Separately, Aramco said its gas investments are expected to generate between $12 billion and $15 billion in additional operating cash flow by 2030, with projected returns of 12% to 14%, according to comments from a company finance executive during the call.
Aramco earlier Tuesday reported a 35% on-year rise in third-quarter net profit to $36.25 billion.
Write to Farhan Rafid at farhan.rafid@wsj.com
(END) Dow Jones Newswires
November 03, 2026 06:12 ET (11:12 GMT)
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