Australia’s energy minister to visit Saudi Arabia over pipeline shutdown
Australia’s Energy Minister Chris Bowen will visit Saudi Arabia next week, where he will meet with the kingdom’s energy minister, Prince Abdulaziz bin Salman. The sides plan to discuss the condition of the East-West oil pipeline and oil supplies following its temporary shutdown due to drone attacks.
Talks on fuel security
Bowen told ABC News that he wants to obtain information directly from the Saudi minister about the situation with the pipeline. According to him, data on the facility’s technical condition, the timeframe for returning to normal operations, and the Saudi Arabian government’s approach are important for Australia’s fuel security in the coming weeks and months.
As OilPrice reports, Saudi Arabia temporarily shut down the East-West oil pipeline after drone attacks which, according to the publication, were launched from Iraqi territory near the border with Iran. Saudi authorities described the shutdown as a precautionary measure and reported injuries resulting from the attacks.
More current news is available on the UA.News Telegram channel Telegram.
Repair timeframe
Two regional officials informed about the situation told the Associated Press that repairs could take from three to five weeks. According to one of the agency’s sources, the pipeline may operate partially during repairs, although he could not estimate possible oil transportation volumes.
According to the publication, Saudi Arabia has used this route to export about 4 million barrels of oil per day via the Red Sea instead of the Strait of Hormuz since the start of the war with Iran. Australia, despite significant gas production and liquefied natural gas output, depends on imports for most of its transport fuel. The situation was also complicated by a fire at one of Australia’s two oil refineries at the beginning of the war.
At the end of March, the Australian government halved the excise duty on gasoline and diesel fuel for three months due to rising prices. OilPrice notes that the government does not rule out another reduction in the excise duty if oil and fuel prices continue to rise.
