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Egyptian oil pipeline "Sumed"
There is a pipe "Sumed" It is 320 km long and connects the Gulf of Suez with the Mediterranean Sea, and carries 80 percent of the oil destined for the Gulf states to Europe, according to the Sumed website.
And connect the line "Sumed" Red and Mediterranean Bahrain, with a capacity of more than 2.5 million barrels per day, and the US Energy Information Administration said it witnessed an influx of around 1.3 million barrels per day. in 2018, since the capacity of the line is approximately 2.8 million barrels. per day, but it is used at much lower rates most of the time.
He addressed a line operator "Sumed" Oil traders to find out if they want to use the pipeline to transport crude in the face of the suspension of the Suez Canal, which can last weeks due to late payment of container ships.
A trader said that transporting oil using "Sumed" It can also be expensive and unappealing, except for million-barrel supertankers.
Another trader explained that the line could cost around 50 cents to a dollar a barrel, plus switching to it now could cost the ship’s charterer the full shipping costs anyway.
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The “Evergiven”, a 400 meter long ship, blocks traffic in both directions through one of the busiest channels in the world for the shipment of oil, cereals and others between Asia and Europe.
Traders were forced to replace some of the empty tankers that were scheduled to head north up the canal to load oil from the Mediterranean region, but many are betting that the situation will be resolved in a few days.
“The redirection around Africa can raise the cost of shipping by about $ 400,000, as well as increase the flight time by two or three weeks, which must also be taken into account,” said a source from the maritime sector, who spoke on condition of anonymity.
He continued: “Currently, the tenants do not cost money. The closure will affect the delivery time, but there are no penalties for delay because there are no clauses related to the closure of the Suez Canal.”
How much oil goes through the canal?
Of the 39.2 million barrels per day of crude oil imported by sea in 2020, 1.74 million barrels per day used the canal, according to Kepler tanker traffic data.
In which direction does crude oil flow?
Crude oil and refined products flow in both directions in the 193 km long Suez Canal.
In 2020, Europe imported 550,000 barrels a day of crude from sources east of Suez, most of it through the canal, according to Kepler figures.
Imports from South and East Asia through the canal amounted to 1.27 million barrels per day in June 2020, but deliveries subsequently declined to 310,000 barrels per day in November.
What about refined products?
Just under 9 percent or 1.54 million barrels per day of world imports of refined products went into the Suez Canal last year, according to Kepler. Naphtha, a raw material for the plastics industry, constitutes a large part of the supply of refined products used by the canal.
Kepler says two distillate tankers loaded with diesel and jet fuel are waiting to sail to the Mediterranean, while two tankers wait for Nafta to sail east.
Egyptian pipeline “added”
The 320 km long SUMED pipeline connects the Gulf of Suez with the Mediterranean Sea and carries 80 percent of the oil destined for Europe, according to the Sumed website.
The Sumed pipeline connects Red Bahrain and the Mediterranean and has a capacity of more than 2.5 million barrels per day. The US Energy Information Administration said it witnessed an influx of around 1.3 million barrels per day in 2018, as the line’s capacity is about 2.8 million barrels per day. , but it is used at much lower rates most of the time.
The operator of the Sumed line approached oil traders to find out if they wanted to use the line to transport crude in the face of the suspension of the Suez Canal, which could last for weeks due to the delinquent container ship crisis.
A trader said that transporting oil using SUMED could also be very expensive and unattractive, except for giant tankers with a tonnage of one million barrels.
Another trader explained that the line could cost around 50 cents to a dollar a barrel, plus switching to it now could cost the ship’s charterer the full shipping costs anyway.
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