UAE moves to build oil pipeline bypassing Strait of Hormuz
Abu Dhabi is accelerating construction of the new West-East pipeline to Fujairah. It will allow the emirate to expand export capacity and reduce dependence on the Strait of Hormuz — one of the key chokepoints in global energy infrastructure.
According to CNBC, the project is expected to come online in 2027. Once operational, it will double the export capacity of the Abu Dhabi National Oil Company (ADNOC).
The construction of the second pipeline comes amid continued pressure on global energy supplies. Flows through the Strait of Hormuz remain severely restricted, while repeated attacks on energy infrastructure and shipping are preventing the UAE from restoring normal production and export volumes.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan on Friday called for faster delivery of the project to meet rising global energy demand.
According to him, ADNOC is in a strong position as a responsible and reliable global energy producer. The company has the operational flexibility to increase production in line with market needs when export constraints allow.
OPEC exit
Earlier this month, the UAE announced it would leave OPEC — an organization it had been a member of since 1967, even before the country was officially founded. In recent years, the Emirates has been actively investing through ADNOC to expand production capacity.
Before the war, the UAE produced just over 3 million barrels of oil per day, broadly in line with OPEC+ targets. Abu Dhabi aimed to raise production capacity to 4.9 million barrels per day. However, because of the war, the country’s current output has fallen to around 1.8–2.1 million barrels per day.
At present, the only operating route that allows the UAE to export oil while bypassing the Strait of Hormuz is the Abu Dhabi Crude Oil Pipeline, also known as the Habshan-Fujairah pipeline. Its capacity is up to 1.8 million barrels per day.
Why the Strait of Hormuz Is blocked
The Strait of Hormuz has effectively been blocked due to a sharp escalation of the military situation in the region. After U.S. and Israeli strikes on Iran, Tehran restricted vessel traffic through one of the key maritime routes for global energy. The blockade has been in place for several months, with some vessels allowed to pass only after diplomatic arrangements.
The importance of this route is difficult to overstate: large volumes of oil, petroleum products and LNG from Gulf countries traditionally pass through the Strait of Hormuz. According to the EIA, in 2024 around 20 million barrels per day of oil and petroleum products moved through the strait — roughly 20% of global liquid fuel consumption. That is why any shipping restrictions in this area can quickly turn a regional crisis into a global problem for energy markets.
As a reminder, after the UAE announced its exit from OPEC, oil prices reached their highest level since 2022.
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