• TotalEnergies CEO Patrick Pouyanné advocates building alternative pipelines to bypass the Strait of Hormuz.
  • The push highlights the need for energy security and diversification of transit routes amid geopolitical tensions.
  • Investments in new corridors could reshape global oil flows, but face significant political and financial hurdles.

TotalEnergies CEO Patrick Pouyanné has made a bold call for new pipeline infrastructure to bypass the strategic Strait of Hormuz, a chokepoint through which about 20% of global oil passes. Speaking at a recent industry conference, Pouyanné said, "We at Total must invest in pipelines to bypass the Strait of Hormuz, for example through Abu Dhabi, Syria." He emphasized that the lesson from recent crises is the need for resilience, adding that TotalEnergies, as the most Middle East-exposed oil major, must act.

The Strait of Hormuz has long been a flashpoint for geopolitical tensions, with Iran threatening to block the waterway in disputes over sanctions or nuclear negotiations. The latest comments come amid ongoing volatility in the region, with potential knock-on effects on oil prices and supply reliability. Pouyanné's proposal involves building pipelines that would allow crude to bypass the strait entirely, potentially through routes via Abu Dhabi and Syria, though the latter remains embroiled in civil conflict.

Market analysts are watching closely. "Any move to diversify away from the Hormuz chokepoint could have significant implications for Brent and WTI benchmarks and LNG contracts," said a senior energy analyst, who spoke on condition of anonymity. However, the feasibility of such projects is uncertain. Constructing new pipelines requires massive capital investment, political alignment with Gulf states and transit countries, and security guarantees. "Without a deal, the company would be forced into bankruptcy," one person familiar with the matter joked, highlighting the high stakes.

The push for alternative routes is not new, but the current crisis has renewed urgency. Pouyanné's remarks come as TotalEnergies, a major integrated energy company active in oil, natural gas, LNG, renewables, and chemicals, seeks to secure supply chains. The company has already invested in LNG and storage as buffers, but pipelines offer a more direct solution.

Governments may need to provide incentives or regulatory frameworks to attract investment. Italy, for example, has seen growing interest from private credit funds, as noted by Blackstone's country chairman. But in the Middle East, the political landscape is complex. "It’s a great region to invest here, but the market here is not as competitive as other markets," one private equity executive said. "You can create your own ideas."

Short term, investor interest and feasibility studies are likely; medium to long term, new infrastructure could reshape trade routes. However, timing will depend on regional security, financing, and international support. Competitors like LNG and strategic storage may also influence the attractiveness of new corridors. TotalEnergies declined to comment further on specific routes.