Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
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Could Egypt’s ‘SUMED’ Pipeline Temporarily Replace the Strait of Hormuz?

Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)
Egypt’s Petroleum Minister Karim Badawi during an inspection tour of SUMED port (Egyptian Petroleum Ministry)

Amid the ongoing Iran war and Tehran’s announcement of the closure of the Strait of Hormuz, a key artery for global energy supplies, Egypt has begun highlighting the SUMED pipeline linking the Red Sea and the Mediterranean as a potential temporary alternative for oil transport.

The move has raised questions about whether the pipeline, a vital connection between the two seas, could help offset disruptions to the volatile waterway.

Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi addressed the issue during a government press conference on Tuesday, saying Egypt “has sufficient technical and logistical capabilities to support this strategic route.”

He said the SUMED pipeline enhances the flexibility of oil supply flows in the region and confirmed Egypt’s readiness to cooperate with Gulf states to facilitate oil transport from the Red Sea to the Mediterranean through the line.

Energy experts who spoke to Asharq Al-Awsat agreed that the pipeline could help ease the current energy crisis amid the absence of any political solution to end the war, noting the line was originally designed as an alternative route when oil shipments face obstacles passing through the Suez Canal.

SUMED pipeline

The pipeline is owned by the Arab Petroleum Pipelines Company (SUMED), an Arab joint venture led by Egypt, with a 50% stake held by the Egyptian General Petroleum Corporation, alongside partners from Gulf states.

The pipeline runs across Egypt from Ain Sokhna on the Gulf of Suez to Sidi Kerir on the Mediterranean coast, with a capacity of about 2.8 million barrels per day.

According to Egypt’s petroleum ministry, the pipeline transported about 24.9 billion barrels of crude oil and more than 730 million barrels of petroleum products from its launch in 1974 through 2024.

Ahmed Kandil, head of Energy Studies Program at the Al-Ahram Center for Political and Strategic Studies, said the line’s importance lies in easing disruptions to oil trade following Tehran’s declaration that it had closed the Strait of Hormuz.

He told Asharq Al-Awsat that oil shipments could reach the pipeline via tankers transporting crude from Saudi Arabia’s Yanbu port to Egypt’s Ain Sokhna port, from where it would move through the pipeline to the Mediterranean and onward to Europe.

He said coordination with Gulf states is underway to contain concerns over energy supplies, particularly among European consumers.

Kandil added that the arrival of part of Gulf exports to European markets is highly important, helping limit spikes in Brent crude prices, which have already surpassed $80 per barrel.

“The growing importance of the Egyptian pipeline comes amid the absence of a political horizon, which means the current conflict could be prolonged,” he said.

Storage capacity

According to the US Energy Information Administration, the main reason for building the SUMED pipeline at this location is that very large crude carriers — capable of transporting about 2.2 million barrels — cannot pass through the Suez Canal due to their excessive weight and width, which could risk grounding.

Instead, they offload their cargo at Ain Sokhna, where the oil is transported through the pipeline to the other side of Egypt. Smaller vessels then reload the crude at Sidi Kerir and sail to Europe and the United States.

Energy markets expert Ramadan Abu Al-Ala said the Egyptian pipeline serves as an alternative to the Suez Canal and could temporarily ease the crisis caused by the closure of the Strait of Hormuz.

He noted that the pipeline is particularly effective for oil tankers arriving from Saudi Arabia, Oman, Bahrain and the United Arab Emirates, which can unload at Ain Sokhna before the crude is transported to the Mediterranean and European markets.

Abu Al-Ala expects SUMED to become even more important for Gulf oil exports to Europe if the war drags on, increasing reliance on the pipeline. However, he said this would require enhanced security measures for oil tankers operating in the Red Sea.

Energy market experts also highlighted another advantage: the pipeline’s large storage capacity. SUMED operates storage tanks with a total capacity of 40 million barrels of oil.

In February 2019, Saudi Aramco signed two agreements with the company to provide storage capacity for diesel and fuel oil.



Strait of Hormuz Ship Crossings Remain in Single Digits

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
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Strait of Hormuz Ship Crossings Remain in Single Digits

FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo
FILE PHOTO: Vessels near the Strait of Hormuz, as seen from Musandam, Oman, September 2, 2026. REUTERS/Stringer/File Photo

Vessel transits through the Strait of Hormuz remained in the single digits at four on Tuesday, down from seven a day earlier, preliminary shipping data showed on Wednesday, falling well short of the 10-day average of 18.

The drop in traffic through the waterway that handled one-fifth of the world's oil and liquefied ⁠natural gas supply before ⁠the Iran war comes after attacks in the region intensified.

Of the total on Tuesday, two ships were exiting and two were entering, according to the data.

No very large crude carriers ⁠or liquefied natural gas tankers were involved.

Some ships may be sailing through the waterway with their transponders turned off and they are therefore not counted.

One very large gas carrier, Salute, carrying around 470,000 barrels of liquefied petroleum gas exited via the Iranian route, while Panamax-sized tanker Nautilus, carrying around 510,000 barrels of naphtha, exited ⁠via ⁠an unknown dark route, Reuters reported.

The two ships that entered were both laden, with one being a short-range dirty products tanker and the other a dry bulk carrier. Both entered via the Iranian route.

Meanwhile, the number of ships sailing through the Bab el-Mandeb Strait was at 22, little changed on Tuesday compared with a day ago at 24.


Türkiye 2027 Inflation Target Realistic, Minister Says

People shop at the Eminonu district of Istanbul, Türkiye, April 25, 2025. (Reuters)
People shop at the Eminonu district of Istanbul, Türkiye, April 25, 2025. (Reuters)
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Türkiye 2027 Inflation Target Realistic, Minister Says

People shop at the Eminonu district of Istanbul, Türkiye, April 25, 2025. (Reuters)
People shop at the Eminonu district of Istanbul, Türkiye, April 25, 2025. (Reuters)

Türkiye's 2027 inflation target in its medium-term program is regarded as realistic by markets, provided that the Iran war does not continue next year, Finance Minister Mehmet Simsek said in an interview with broadcaster Haberturk on Wednesday.

Türkiye should normally operate a floating ‌exchange rate regime, ‌as it provides the ‌basis ⁠for responding correctly ⁠to shocks, Simsek said.

Türkiye has always provided wage increases of at least the rate of inflation for all public workers and retirees, and will continue to do so, ⁠he added.

Once inflation ‌falls to ‌single digits, mandatory export proceeds sales requirements could ‌be lifted in favor of ‌a freer regime, he also said.

Conditions for removing the mandatory export sales requirement have not yet been met and ‌Türkiye will review the matter when they arise.

The government expects ⁠inflation ⁠to slow to 28.4% this year and to 21% in 2027 before dropping to single digits in 2029 — about two years later than previously predicted.

The US-sanctioned Golden Global Yatirim bank is small and poses no systemic risk, Simsek also said, calling on other banks to comply with international regulations and strengthen compliance.


Bahrain's Alba Says Produces 1.3 Million Tons Per Year of Aluminium

The Bahraini capital (Reuters)
The Bahraini capital (Reuters)
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Bahrain's Alba Says Produces 1.3 Million Tons Per Year of Aluminium

The Bahraini capital (Reuters)
The Bahraini capital (Reuters)

Aluminium Bahrain, known as Alba, is currently producing aluminium at an annualized rate of 1.3 million metric tons, versus a pre-Iran war capacity of around 1.6 million tons, its CEO said on Wednesday.

Alba, which describes itself as the world's biggest aluminium smelter on one site, shut down production ⁠lines 1, 2, and ⁠3 following the outbreak of the war as the closure of the Strait of Hormuz restricted exports. The plant was then hit by an Iranian attack in late March.

Alba is now operating lines 4, 5 and 6 at its smelter, equivalent to 1.3 ⁠million tons per year, Ali Al Baqali told Reuters on the sidelines of the Fastmarkets Aluminium Conference in Budapest.

He described the Iranian strike as a "small, minor attack.”

"We got damages and we already repaired them. Nothing needed," Al Baqali said, adding that Alba had been covered by insurance.

Its overall capacity will return to 1.6 million tons when it completes its acquisition of French smelter Aluminium Dunkerque in the next couple of months, Al ⁠Baqali said.

To ⁠maintain production, Alba is bringing in 300 to 350 trucks carrying raw material alumina on a daily basis, the CEO said.

"We are managing to receive around 7,000 metric tons of alumina every day," Al Baqali said, describing the logistics operation as "expensive,” but offset by the high London Metal Exchange aluminium price and premiums for physical metal.

Alba is exporting metal via the Saudi port of Jeddah on the Red Sea and from Sohar in Oman, Al Baqali said, as hostilities in the Middle East continue.