Kuwait is exploring pipeline export options with Saudi Arabia and the UAE to bypass the Strait of Hormuz as disruptions continue to threaten Gulf crude flows, according to multiple media reports on Tuesday.
Discussions are underway between Kuwait Petroleum and neighboring Gulf producers about expanding existing pipeline networks to carry Kuwaiti crude, Chief Executive Sheikh Nawaf Al-Sabah said at a conference in Washington.
No timeline has been set for potential exports through the alternative routes, and Sheikh Nawaf did not indicate how far the talks have progressed, according to the reports.
About one-fifth of the Gulf's oil and gas supplies have been affected by the conflict in the Middle East, while uncertainty over future access to the Strait of Hormuz persists despite a US-Iran ceasefire.
Since the conflict erupted in late February, Kuwait has kept oil fields operating at minimum levels to meet domestic demand and protect wells, while cutting crude production because all of its energy exports depend on the trait.
While Saudi Arabia can move about 70% of its normal crude exports through its Red Sea pipeline network, the UAE is expanding infrastructure to ship oil from Abu Dhabi to Fujairah, outside the Strait of Hormuz.
"When you look at pipelines, they are only as safe as the export facility at the end of it," Sheikh Nawaf said, noting that Iran had previously targeted Saudi and Emirati export assets.
In addition to exploring additional overseas oil storage capacity, Kuwait and other Gulf producers are working with the US to strengthen protection of export terminals and pipeline infrastructure.
Kuwait Petroleum did not immediately respond to' request for comment.