ARAB PETROLEUM PIPELINES CO. (SUMED)

Arab Petroleum Pipelines Co., commonly known as SUMED, is a significant player in the global petroleum industry, particularly in the transportation and logistical sectors. The company was established with a primary purpose: to provide a more efficient and secure route for transporting crude oil from the Arabian Gulf to Europe and North America, avoiding the longer and often congested route around the southern tip of Africa. Here's an overview of the company:

Key Facts and Background

1. Establishment:

   • SUMED was founded in 1974 as a joint venture by several Arab nations, including Egypt, Saudi Arabia, Kuwait, the United Arab Emirates, and Qatar. Egypt holds a significant stake and plays a crucial role as the host country.

2. Pipeline Infrastructure:

   • SUMED operates a major crude oil pipeline known as the SUMED Pipeline. This pipeline stretches approximately 320 kilometers (about 200 miles) from the Ain Sokhna terminal on the Gulf of Suez to the Sidi Kerir terminal on the Mediterranean Sea coast.
   • The pipeline was designed to bypass the Suez Canal for transporting oil, thus providing an alternative route that mitigates the risks and limitations associated with the canal, particularly with respect to large oil tankers that cannot navigate the canal fully loaded.

3. Capacity and Operations:

   • The SUMED Pipeline has a substantial capacity, capable of transporting around 2.5 million barrels of crude oil per day.
   • The pipeline system includes storage facilities at both ends, with a storage capacity exceeding 20 million barrels. These facilities enable the company to manage the transit and temporary storage of crude oil efficiently.

4. Strategic Importance:

   • SUMED plays a critical role in the global oil supply chain by facilitating the movement of Middle Eastern oil to key markets in Europe and beyond.
   • It provides a reliable transit option that complements the Suez Canal, enhancing the overall security and flexibility of global oil transportation routes.

5. Economic Impact:

   • The operation of the SUMED Pipeline contributes significantly to the economies of the stakeholder countries. It supports the broader logistics and oil export infrastructure of the region.
   • It also provides employment opportunities and aids in the development of the hosting regions, especially within Egypt.

6. Challenges and Developments:

   • The company, like others in the energy sector, faces challenges such as fluctuating oil prices, geopolitical tensions, and the shifting landscape towards renewable energy sources.
   • SUMED continuously invests in upgrading and maintaining its infrastructure to ensure safe and efficient operations. Over the years, it has also explored diversifying its services and engaging in strategic partnerships.

7. Environmental and Safety Standards:

   • As with other major infrastructure projects in the oil industry, SUMED is subject to stringent environmental and safety regulations. The company adopts best practices to minimize environmental impact and ensure the safety of its operations.

In summary, Arab Petroleum Pipelines Co. (SUMED) is a cornerstone of the petroleum transportation network between the Middle East and Europe, providing an essential service that supports the global energy supply chain. Its strategic pipeline infrastructure facilitates efficient oil transportation and enhances the economic and geopolitical stability of the region.