EEMEA Oil & Gas: Bypassing Hormuz: pipelines play to Middle East advantage

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EEMEA Oil & Gas: Bypassing Hormuz: pipelines play to Middle East advantage

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EEMEA Oil & Gas

Bypassing Hormuz: pipelines play to Middle

East advantage

Industry Overview

Why do pipelines matter now? 01 July 2026 Corrected

Pipelines in the Middle East are becoming increasingly critical as countries seek to Equity

reduce reliance on the Strait of Hormuz, ensure uninterrupted exports and strengthen Emerging Market Europe

global energy security. We deep dive into oil pipeline economics and benchmark regional Oil & Gas

pipelines against those in the US. Key takeaways: 1) attractive economics in the Middle Sashank Lanka >>

East supported by scale, 2) fewer permitting bottlenecks = shorter build times, and 3) Research Analyst

balance sheets in Saudi and UAE support a multi-year, structurally driven buildout cycle. Merrill+971 4Lynch425 8231(DIFC)

sashank.lanka@bofa.com

Reiterate Buys on Aramco, ADNOC Gas and ADNOC L&S Abhishek Kumar >>

We see attractive investment opportunities for companies with pipeline access: we ResearchMerrill LynchAnalyst(DIFC)

reiterate Buys on: Aramco: best-in-class export resilience via East-West pipeline; +971 4 425 8227

abhishek.kumar29@bofa.com

ADNOC Gas – pipeline buildout supports sustained product exports from Fujairah; and

Jean Ann Salisbury

ADNOC L&S – incremental upside from terminal & logistics expansion. Research Analyst

BofAS

Scale drives attractive implied tariffs in Middle East +1jeanann.salisbury@bofa.com646 855-1470

Middle East pipelines are generally larger (48”) and carry c.3x capacity vs US pipes (30”) Christopher Kuplent >>

but they cost 2-2.5x more per km due to greater thickness. Despite higher costs, greater Research Analyst

MLI (UK)