{"id":51676,"date":"2019-07-24T18:21:34","date_gmt":"2019-07-24T18:21:34","guid":{"rendered":"https:\/\/energi.media\/?p=51676"},"modified":"2019-07-24T18:21:34","modified_gmt":"2019-07-24T18:21:34","slug":"suez-canal-sumed-pipeline-critical-chokepoints-for-oil-natural-gas-trade","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/suez-canal-sumed-pipeline-critical-chokepoints-for-oil-natural-gas-trade\/","title":{"rendered":"Suez Canal, SUMED Pipeline critical chokepoints for oil, natural gas trade"},"content":{"rendered":"

By Candace Dunn and Natalie Kempkey<\/strong><\/em><\/p>\n

This article was published by the US Energy Information Administration<\/a> on July 23, 2019.<\/em><\/p>\n

The Suez Canal and the SUMED Pipeline are strategic routes for Persian Gulf crude oil, petroleum products, and liquefied natural gas (LNG) shipments to Europe and North America. Located in Egypt, the Suez Canal connects the Red Sea with the Mediterranean Sea, and it is a critical chokepoint because of the large volumes of energy commodities that flow through it.<\/p>\n

\"Suez
Source:\u00a0<\/strong>U.S. Energy Information Administration<\/em><\/figcaption><\/figure>\n
<\/div>\n

Chokepoints<\/a> are narrow channels along widely used global sea routes that are critical to global energy security. Total oil flows through the Suez Canal and the SUMED pipeline accounted for about 9 per cent of total seaborne traded petroleum (crude oil and refined petroleum products) in 2017, and LNG flows through the Suez Canal and the SUMED pipeline accounted for about 8 per cent of global LNG trade.<\/p>\n

Since 2016, growth in northbound total petroleum flows through the Suez Canal and the SUMED pipeline has slowed, and southbound flows through the canal have risen substantially. In particular, the Suez Canal is gaining importance as a southbound route for U.S. and Russian crude oil and petroleum products to destinations in Asia and the Middle East.<\/p>\n

\"Suez
Source:\u00a0<\/strong>U.S. Energy Information Administration, based on Lloyd\u2019s List Intelligence, Clipper Data, and Suez Canal Authority (with EIA conversions<\/em>)<\/figcaption><\/figure>\n
<\/div>\n

Slightly more than half of total petroleum transiting the Suez Canal in 2018 was sent northbound to destinations in Europe and North America. Petroleum exports from Persian Gulf countries, such as Saudi Arabia, Iraq, and Iran, accounted for 85% of Suez Canal northbound traffic. Northbound flows of petroleum products have risen in recent years, particularly as more ultra-low sulfur diesel fuel has been shipped from Saudi Arabia to European countries.<\/p>\n

\"northbound
Source:\u00a0<\/strong>U.S. Energy Information Administration, based on Suez Canal Authority<\/em><\/figcaption><\/figure>\n
<\/div>\n

Northbound crude oil flows decreased in 2018 for several reasons:<\/p>\n