Saudi Aramco has canceled or delayed some crude oil shipments to European refiners following the shutdown of Saudi Arabia’s East-West pipeline, disrupting one of the kingdom’s key alternative routes around the Strait of Hormuz. At least three European refiners have seen late-September crude cargoes canceled or postponed until as late as November, according to market sources cited by Argus. Two additional refiners are reportedly expecting notices affecting their September supplies.
The 7-million-barrel-per-day East-West pipeline has remained offline since an attack on September 10. The system transports crude from oil fields in eastern Saudi Arabia to the Red Sea port of Yanbu, allowing exports to bypass the Strait of Hormuz.
Saudi Aramco Yanbu Supplies Under Pressure
One market source told Argus that Saudi Aramco cargoes scheduled for the final 10 days of September could potentially be affected. The source also estimated that Yanbu had only around five days of crude inventories remaining. Argus said it could not independently verify the inventory estimate, while Aramco declined to comment. The disruption comes after Bloomberg reported in August that Aramco planned to supply full contractual crude volumes to at least three European refiners during September.
However, Vortexa data cited by Argus showed that no Saudi crude had departed Yanbu since September 11. Meanwhile, Saudi exports through Egypt’s Sidi Kerir terminal averaged approximately 1.95 million barrels per day during the first two weeks of September, while arrivals at Ain Sukhna averaged about 1.40 million bpd. Crude reaching Yanbu can be transferred to Egypt’s Ain Sukhna terminal and then transported through the 2.5-million-bpd SUMED pipeline to Sidi Kerir on the Mediterranean coast.
Orlen Turns to Alternative Crude Saudi Aramco
Poland’s Orlen has already begun securing replacement supplies. Traders told Reuters that the company purchased North Sea grades, including Grane, Johan Sverdrup and Johan Castberg, through spot tenders. It also sought offers for U.S. WTI Midland and Kazakhstan’s CPC Blend. At least four September tanker shipments from Sidi Kerir to Gdansk have reportedly failed to materialize.
Saudi Aramco provides roughly 40% of the crude processed by Orlen, which operates refineries in Poland, Lithuania and the Czech Republic. Despite the disruption, Orlen said its refineries continue to receive the feedstock they require. The East-West pipeline had become a crucial alternative for Saudi crude exports when Persian Gulf routes faced constraints. Its prolonged shutdown is now affecting European term customers, highlighting the broader impact of disruptions to Saudi Arabia’s crude transportation network.
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