UAE accelerates construction of oil pipeline to bypass the Strait of Hormuz

The United Arab Emirates plans to significantly strengthen its oil export infrastructure by accelerating the construction of a new oil pipeline that should double export capacity through the port of Fujairah by 2027. This step is aimed at reducing the country's dependence on passage through the Strait of Hormuz.

This was reported by Reuters. According to the agency, the Crown Prince of Abu Dhabi Sheikh Khaled bin Mohamed bin Zayed instructed the Abu Dhabi National Oil Company to accelerate the implementation of the West-East oil pipeline project during a meeting of the executive committee.

Construction of the pipeline is already underway, and its launch is scheduled for 2027. It is expected to significantly expand the possibilities of exporting oil bypassing the strategically important Strait of Hormuz.

Currently, the Abu Dhabi Crude Oil Pipeline, also known as the Habshan-Fujairah, plays a key role in the system to bypass the strait. Its capacity is up to 1.8 million barrels per day, making it a critical element of the country’s energy infrastructure.

The United Arab Emirates and Saudi Arabia remain the only producers in the Persian Gulf region that have pipeline routes to export oil bypassing the Strait of Hormuz. At the same time, Oman has a long coastline in the Gulf of Oman, which partially reduces its dependence on this narrow sea passage.

The situation in the region remains tense: the Strait of Hormuz, which is located between Iran and Oman, has been effectively closed to shipping by Iran in response to a US-Israeli air and naval campaign that began on February 28. This has disrupted about a fifth of the world’s oil supplies, which normally flow to Asia and other regions.

Gulf states such as Kuwait, Iraq, Qatar and Bahrain are almost entirely dependent on tankers passing through the Strait of Hormuz to export their oil. This makes them particularly vulnerable to any disruptions to this key shipping corridor.

Energy prices have soared amid supply constraints, prompting governments in many countries to introduce fuel rationing measures. Economists are also warning of rising inflationary pressures and rising risks of a global economic recession.