Saudi Arabia is preparing to boost pipeline capacity by 40%, giving Riyadh a larger bypass route for crude exports around the Strait of Hormuz as its war with Iran intensifies, according to a report by Moneycontrol.

The planned expansion targets the kingdom's overland crude line to the Red Sea, the conduit that moves barrels from Eastern Province fields to export terminals on the west coast, outside the Persian Gulf chokepoint. A 40% capacity increase would materially raise the share of Saudi exports that can load without transiting Hormuz.

The report gives no timeline for the expansion, no engineering scope, and no confirmation of whether the work involves debottlenecking, pump additions, or new trunkline segments. Moneycontrol describes the plan as a wartime contingency rather than a sanctioned project with a final investment decision attached.

Why does the Hormuz bypass matter now?

The Strait of Hormuz carries roughly a fifth of global oil trade. Saudi Arabia and its Gulf neighbours load the bulk of their crude exports from Gulf-side terminals that sit inside the chokepoint. Any closure or sustained disruption — a risk that climbs with active hostilities between Riyadh and Tehran — would trap those barrels.

Riyadh has held surplus overland capacity for exactly this scenario. The kingdom's east-west crude pipeline and its Red Sea loading complex at Yanbu exist to keep exports flowing if Gulf shipping is interdicted.

The reported 40% uplift would expand that insurance. Moneycontrol frames the move as a direct response to the war with Iran, not as a commercial capacity addition timed to demand growth.

What remains unconfirmed?

The report leaves the project at the planning stage. It does not state:

• A startup or completion date for the expanded capacity
• The contractor or engineering scope, if either has been assigned
• Whether Saudi Aramco, which operates the kingdom's hydrocarbon infrastructure, has formally sanctioned the work
• The absolute barrel-per-day figures for existing versus expanded throughput

Until Aramco or the Saudi energy ministry confirms the plan, the 40% figure should be read as a reported contingency proposal, not an executed project.

How does this fit Saudi routing strategy?

Saudi Arabia has long maintained dual export corridors. Gulf-side terminals handle the largest share of loadings, while the Red Sea route provides the strategic alternative. Expanding the western corridor during the Iran conflict would follow the kingdom's established doctrine: keep enough spare overland capacity to cover a significant portion of exports if Hormuz becomes unusable.

A 40% increase in that corridor's capacity would shorten the gap between what the kingdom can load from the Red Sea and what it typically exports in total. Moneycontrol's report does not quantify the resulting coverage share.

What is the watch item?

Confirmation from Saudi Aramco or the energy ministry. The operative questions for the market are the expansion's absolute capacity in barrels per day, its timeline, and whether Riyadh commits capital to the work while the war continues or shelves it if hostilities ease. Until then, the 40% figure stands as a reported plan with no sanctioned scope behind it.