Roughly 20 percent of global oil trade passes through the Strait of Hormuz every day. It is one of the world’s most consequential chokepoints, and also one of its most fragile — any significant disruption at Hormuz would cascade through global energy markets within hours. The Gulf states have long understood this vulnerability; the question has always been whether a credible alternative is technically and economically viable.
The research proposes a framework for what it calls the Arabian Energy Corridor (AEC) — a phased, multi-state energy infrastructure network designed to reshape Gulf export logistics, anchored at Oman’s deep-water port of Duqm.
Stage One: Abqaiq to Duqm
The corridor begins with a primary crude oil pipeline linking Saudi Arabia’s Abqaiq facility — one of the world’s largest oil processing complexes — directly to Duqm on the Arabian Sea coast of Oman. This standalone pipeline, with an estimated capacity of approximately 1.5 million barrels per day, would give Saudi Arabia a direct export route to the Arabian Sea without passing through Hormuz. The first stage is justified primarily as export-security infrastructure rather than a purely commercial proposition — the value of the option to bypass a risk often exceeds the immediate cost savings.
Stage Two: A Multi-Stream Regional Energy Platform
When additional crude and gas flows from the UAE and Qatar are integrated into the system, the corridor shifts from a single-asset pipeline into a multi-stream energy logistics platform. This integration is what unlocks genuine economic viability through scale effects, diversified revenue streams, and hub-based operations centered on Duqm — crude storage, blending, export timing optimization, and downstream integration with refining and petrochemical facilities.
Key Insight: The Arabian Energy Corridor is not simply a pipeline. It is a framework for repositioning Oman as the Gulf’s primary energy logistics hub for the Asian century, while simultaneously reducing the region’s exposure to one of global trade’s most dangerous chokepoints.
Asian Market Alignment
The center of gravity for hydrocarbon consumption has moved decisively toward Asia. China, India, Pakistan, and Japan now dominate the destination profile of Gulf energy exports, and a corridor terminating at Duqm is geographically optimized precisely for these markets — providing faster, more secure transit than Hormuz-dependent routes.
Oman’s Strategic Opportunity
Duqm’s transformation from an emerging industrial zone to a major energy logistics hub would create substantial employment, attract international investment across refining and petrochemicals, and establish Oman as an essential node in Gulf energy infrastructure rather than a peripheral participant. Turkey, with its own position as an energy transit country and its deepening economic relationships with Gulf states, has a particular interest in the emergence of this new regional energy architecture.
Investment and Policy Implications
The phased approach — moving from export-security infrastructure to an integrated multi-stream platform — allows for staged capital deployment aligned with demonstrated commercial viability at each phase. Regulatory frameworks governing cross-border pipeline cooperation, port development incentives, and downstream industrial integration will determine whether the corridor remains a strategic concept or becomes operational infrastructure over the coming decade.
