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.



Fewer Than 20 Ships Transited Strait of Hormuz at the Start of the Week

Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer
Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer
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Fewer Than 20 Ships Transited Strait of Hormuz at the Start of the Week

Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer
Vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 24, 2026. REUTERS/Stringer

Fewer than 20 commodity vessels transited the Strait of Hormuz at the start of the week, shipping data showed on Monday, as Iranian and US blockades restrict traffic through the chokepoint for energy shipments.

Four vessels crossed the strait on Sunday, initial data from shiptracker Kpler showed by 0228 GMT, with 13 on Saturday. The figures could change as some ships had switched off transponders on their way through.

That compared with Friday's figure of 16 transits, with two empty very large crude carriers (VLCCs) entering the Gulf with the tracking devices switched off, one heading to Iraq and the other to ⁠Bahrain, the data ⁠showed.

A VLCC carrying 2 million barrels of Emirati crude exited the strait on Thursday.

Eight very large gas carriers transited the strait over the past three days, the data showed, according to Reuters, six of them entering empty while the others carried liquefied petroleum gas (LPG) loaded from Iran and exited the Gulf.

Overall traffic volumes remained suppressed ⁠in the week to August 21, as vessels aborted transit plans or switched routes through the strait's north after attacks, the United Kingdom Maritime Trade Operations (UKMTO) agency said in a report.

A total of 89 vessels exited the strait while 103 entered over the seven-day period, the report, based on Automatic Identification System (AIS) data, showed.

"Traffic remains well below normal levels, with AIS-detected transits approximately 90% below pre-conflict baselines and declining since the June 24 to June 26 peak," it added.

Tanker traffic, at 45% of the total, continued ⁠to dominate movement ⁠through the strait, the agency said. Of these, 56% were tankers that carry crude oil, oil products or chemicals while LPG carriers accounted for a further 24%.

Since July 6, the UKMTO has reported 23 incidents of projectile strikes, leading to bridge, engine-room, and structural damage across vessels in the strait and its vicinity.

A total of 24 commodity vessels sailed through the Bab el-Mandeb strait on Sunday, down from Saturday's figure of 32, which was an increase from 22 on Friday, Kpler data showed.

Two VLCCs entered the Red Sea on Saturday with one carrying Iraqi Basrah crude and the other empty, it showed.


Oil Falls as Trump Pledges Economic War on Iran

LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP
LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP
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Oil Falls as Trump Pledges Economic War on Iran

LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP
LOS ANGELES, CALIFORNIA - AUGUST 21: Diesel prices over $7 a gallon are displayed on a pump at a gas station on August 21, 2026 in Los Angeles, California. Justin Sullivan/Getty Images/AFP

Oil prices fell on Monday as investors braced for details of a US plan to isolate the Iranian economy that President Donald Trump billed as the "most crushing" financial operation ever against Tehran.

Asian stocks were mostly down, with South Korea's tech-rich Kospi falling more than three percent after Samsung Electronics said it spent $80 billion to buy back its own shares following weeks of turbulent trading.

The chip giant's shares, along with those of rival SK hynix, peaked in June on optimism for the artificial intelligence boom, but have since fallen amid investor jitters and a broader tech rout.

In an important week for AI, investors are also looking towards an earnings report from Nvidia, the world's most valuable company and a bellwether for the sector.

The recurring question for the US chipmaker is whether the AI boom will continue to accelerate as the technology takes over more corners of the broader economy.

"The spending machine is still running, but the bill is getting heavier," said Stephen Innes of SPI Asset Management.

"Nvidia must now show that the most expensive investment boom in modern market history can still pay its bills."

Chinese tech giant Alibaba is keeping focus on the sector after announcing on Sunday that it plans to issue $10.2 billion in new shares in Hong Kong to fund its global AI ambitions.

The firm, known for its open-source "Qwen" AI models, has been ploughing tens of billions of dollars into the technology, with shareholders eager to see how it will monetize the huge investments.

Tokyo and Shanghai closed down 0.7 percent and 0.6 percent respectively, echoing losses across Asia that included Taipei, Wellington, Bangkok, Mumbai and Jakarta. Sydney, Singapore, Manila and Kuala Lumpur posted marginal gains.

Hong Kong was down nearly two percent despite fast-fashion giant Shein announcing its market debut will take place in the Chinese financial hub on September 1.

The long-awaited listing would value the group -- known for its vast selection of products at stunningly low prices -- at close to $27 billion.

London was flat at the open, while Paris and Frankfurt were down 0.2 percent.

Eyes are also on US Treasury boss Scott Bessent, who said he would give more details in a news conference on Monday on a fresh push to pile economic pressure on Iran.

The United States warned allies and China on Thursday to join Trump's new campaign, which comes as the unpopular war in the Middle East drags toward the six-month mark.

US Vice President JD Vance acknowledged the plan was a "delicate dance" because Iran will "try to apply economic pressure to us".

Asked whether the United States would pressure China, Bessent told CNBC that "many conversations are best to have in private", but he also called on Beijing "to get with the program".

Both main crude contracts were down around two percent, with the Brent benchmark sitting at $92 a barrel, AFP reported.

Traders will also be watching this week's annual gathering of central bankers, economists and finance chiefs in Jackson Hole in the United States, hoping for some clarification on US monetary policy.

The meeting comes after the Treasury bought its own bonds last week in an effort to push down borrowing costs after the 30-year yield surged to levels last seen in 2007, just before the global financial crisis.

Yields have risen on inflation fears and as the United States reported that its federal debt had topped $40 trillion.


Norway Will Drill in Arctic Regardless of EU’s Position, Says Energy Minister

Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)
Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)
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Norway Will Drill in Arctic Regardless of EU’s Position, Says Energy Minister

Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)
Norway's Energy Minister Terje Aasland attends a press conference in connection with the new realization of the carbon capture project at the waste incineration plant at Klemetsrud, Oslo, Norway January 27, 2025. (NTB/Ole Berg-Rusten via Reuters)

Norway will continue developing its oil and gas resources in the Barents Sea regardless of the European Union's support for a moratorium on Arctic hydrocarbon supplies, and no longer sees itself as Europe's "green battery", Energy Minister Terje Aasland told Reuters.

Following Russia's 2022 invasion of Ukraine, Norway has become Europe's largest supplier of natural gas, meeting around 30% of gas demand of both the European Union and Britain.

Last year, the country's gas production was near record levels, while oil output reached its highest level since 2009. Official forecasts, however, show production falling sharply after 2030 unless new resources are discovered and developed.

"In today's geopolitical and security environment, and given the resource situation, I believe continued activity in the Barents Sea serves both Norwegian and European interests," Aasland said in a Reuters interview ahead ‌of ONS, Norway's biannual ‌energy conference, which begins in Stavanger on Monday.

The European Union currently supports a ban ‌on ⁠new drilling in the ⁠Arctic on environmental grounds but is considering revising its policy in response to concerns about energy security.

Anders Opedal, CEO of Equinor, Norway's biggest oil firm, said oil and liquefied natural gas (LNG) from the Barents Sea can be shipped anywhere in the world if rejected by the EU.

"The only thing that will suffer from this is actually European security. We have the flexibility," Opedal told Reuters on Monday.

NORWAY AIMS TO MAINTAIN OUTPUT LEVELS

Aasland said Norway aims to maintain petroleum production and exports at roughly current levels until at least 2035, and Barents Sea production will be key.

"If Norway is to remain a long-term supplier of oil and gas to Europe..., then the ⁠Arctic must be part of that discussion," the energy minister said.

In talks with EU ‌officials, Norway has argued that the parts of the Barents Sea opened to ‌petroleum activity are also ice-free like in the North Sea, and so less prone to oil spills and other environmental impacts, and are ‌helping to sustain jobs and settlement in the country's northern regions bordering Russia.

Aasland believes Norway's arguments are being heard in Brussels, ‌but added that it was the country's sovereign right to develop the Barents Sea resources even if the EU continued to support a moratorium.

"We would develop these areas, and then it will be up to the EU whether they should have a moratorium on buying that gas or oil," Aasland said.

Arctic oil would be sold into global markets regardless, while gas could be exported worldwide as liquefied natural gas from ‌Equinor's Melkoeya LNG plant near Hammerfest, he added.

International Energy Agency Executive Director Fatih Birol has also urged the EU to reconsider its opposition to new Arctic oil and gas developments, ⁠arguing that future supplies ⁠will be needed to support energy security.

Critics of such a move argue that new Arctic projects would take many years to come online and would do little to address Europe's near-term energy challenges.

GREEN BATTERY ‘A FLAWED IDEA’

In addition to oil and gas, Norway produces a surplus of renewable energy most years from an extensive network of reservoirs and waterways feeding hydroelectrical plants, which it has exported to Europe via cross-border power cables.

Norway has previously presented itself as "the green battery" of Europe, but the minister says this idea is now outdated as Norway alone can't balance the European power market.

"It was a flawed idea," Aasland said.

The idea helped drive the construction of new power interconnectors, including links to Britain and Germany, but has drawn some opposition in Norway as European electricity prices have escalated.

Deeper integration with Europe's power system left Norway more vulnerable to continental price swings.

Aasland said Norway will not build new interconnectors but remains committed to strong power sector cooperation with Europe.

He urged countries on the continent to strengthen their stable power supply, weakened by coal and nuclear plant closures and a lack of investment in new gas-fired generation.

Doing so will lower prices and build greater reciprocity when it comes to power flows between different countries.

"The future lies in having a very strong and integrated system," Aasland said.