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The Search for Redundancy: Can Energy Producers Build Their Way Around the Strait of Hormuz?

Middle East energy producers are trying to reduce dependence on the Strait of Hormuz through alternative pipelines and export routes, but they cannot fully replace it due to limited pipeline capacity and the fact that LNG is much harder to reroute than oil. Alternative corridors thus merely shift geopolitical risk rather than eliminating it. Hormuz is also critical beyond energy, affecting fertilizers, helium, agriculture, healthcare, and advanced manufacturing. Thus, while redundancy is necessary, it is insufficient: alternative routes must be developed while Hormuz and other major maritime chokepoints remain secure and open.

6-minute read
24 August 2026

Tankers navigate the strategic Strait of Hormuz at the entrance to the Persian Gulf, between Iran to the north and Oman’s Musandam Peninsula to the south.
Tankers navigate the strategic Strait of Hormuz at the entrance to the Persian Gulf, between Iran to the north and Oman’s Musandam Peninsula to the south.
6-minute read
As the Iran War continues its uncertain course, Middle East energy producers are accelerating efforts to reduce dependence on the Strait of Hormuz by investing in “redundancy infrastructure”: alternative pipelines, ports, and export corridors. But redundancy cannot replace the Strait: current alternatives cannot accommodate all the volumes transiting Hormuz, which is better suited to oil than Liquefied Natural Gas (LNG). Meanwhile, major new pipelines will take years to complete. Alternative routes can also shift, rather than eliminate, geopolitical exposure, including drone attacks and threats around the Red Sea. Moreover, Hormuz carries critical commodities beyond oil and gas, including fertilizers and helium, that cannot be easily diverted via new trade corridors. While building redundancy is essential, the safety of maritime chokepoints remains critical to maintain a healthy global trade regime.

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