Oman is positioned to become a critical alternative export route for Middle Eastern hydrocarbons, potentially enhancing global energy security by reducing reliance on the Strait of Hormuz, according to a recent assessment by the global consultancy Ernst & Young (EY).

The consultancy's October 2026 report, titled *Beyond Hormuz: A Regional Energy Export Corridor*, outlines a $50 billion proposal to develop an overland pipeline corridor spanning roughly 1,800 kilometers from southern Iraq, through Kuwait, along the Gulf coast, and terminating at Omani ports in Duqm and Salalah. The plan envisions two 56-inch pipelines with a combined capacity of 10 million barrels per day (bpd), forming a strategic export route that bypasses the traditional maritime chokepoints of Hormuz and Bab Al Mandeb.

Currently, nearly 20 million bpd of crude oil and petroleum products—close to one-quarter of the world’s seaborne oil trade—transit the Strait of Hormuz. EY’s analysis warns that a prolonged 90-day disruption of this key route could result in economic losses nearing $81 billion, impacting Gulf producers and major Asian importers alike, thereby underscoring the urgency for alternative export infrastructure.

Oman’s geographic location provides notable advantages for such a corridor. Its southern and southeastern ports offer direct access to the Arabian Sea and the Indian Ocean, enabling shipments to Asian refineries to reduce round-trip sailing times by 24 to 48 hours compared to those originating in the northern Arabian Gulf. Duqm, with its integrated industrial facilities, deepwater port, and dedicated oil berth capable of accommodating very large crude carriers, emerges as the intended primary hub for exports and aggregation.

Complementing Duqm’s capabilities is the nearby Ras Markaz crude oil storage terminal, which is planned to reach a total capacity of 200 million barrels, including an initial completed phase of 26.7 million barrels. Salalah is identified as a secondary export gateway, adding operational flexibility to the proposed corridor.

The report also highlights current shortfalls in pipeline alternatives operated by Saudi Arabia and the United Arab Emirates, which together have about 8.8 million bpd of capacity. This leaves a structural gap of more than 11 million bpd when compared to normal Hormuz transit volumes, a deficit that planned expansions are unlikely to fully address.

While the envisioned Omani export corridor would entail higher transportation costs under stable geopolitical conditions, EY suggests that these costs could be outweighed during disruptions, potentially saving around $1.50 per barrel. The proposed infrastructure, therefore, offers both a hedge against geopolitical risk and a reinforcement of global energy supply resilience.