Middle East Oil Pipelines Shift to Resilience-Focused Investments
The Middle East is undergoing a major shift in oil pipeline investments, focusing on resilience and redundancy. The region's key pipeline projects aim to strengthen routes bypassing the Strait of Hormuz, restore cross-border exports, and create new outlets toward the Red Sea and Mediterranean. The UAE's second Habshan, Fujairah line, expected to add 1.5 million barrels per day (MMbpd) by 2027, is a clear example of this new strategy. Meanwhile, Saudi Arabia is enhancing its existing Petroline system, which is set to undergo capacity modifications in March 2026.
Northern Iraq's oil exports are resuming after a two-and-a-half-year hiatus, with initial volumes of 180,000 to 208,000 barrels per day flowing toward Ceyhan. Iraq is also building the Basra, Hadithah project, which will have a capacity of 2.5 MMbpd, with plans for further extensions toward Faysh Khabur and Aqaba. However, the success of these projects depends on state backing, political alignment, and service to domestic or regional markets.
The Gulf Energy Infrastructure (GEI) inventory lists 268 Middle East oil and products pipeline records, with most projects concentrated in Iraq, the UAE, and Saudi Arabia. The strategic focus is on hardening bypass routes, restoring northern Iraqi exports, and building an Iraqi corridor spine. The UAE project has the clearest near-term capacity addition, while Iraq offers the largest long-run optionality but also the greatest execution burden.
Monitoring key developments will be crucial, including the UAE's construction progress, Saudi throughput modifications, the durability of Iraq, Turkey arrangements, and the sequencing of Iraqi corridor projects. The outlook suggests a state-led and selective phase, with projects connecting aligned governments having stronger prospects.