TotalEnergies Invests in UAE Pipeline Bypassing Strait of Hormuz
French oil major TotalEnergies will invest in a new pipeline that allows the UAE to export crude oil without using the Strait of Hormuz. The pipeline, under construction by Abu Dhabi state oil company Adnoc, is due to start operating in 2027.
The second West-East pipeline will run parallel to an existing Adnoc pipeline and double the UAE's exports from Fujairah. This investment comes after TotalEnergies' CEO Patrick Pouyanne stated that the Strait of Hormuz represents a genuine threat, necessitating investment in pipelines to bypass it.
TotalEnergies plans to invest in both the Abu Dhabi-Fujairah pipeline and the Baghdad-Syria pipeline, which will carry oil from Iraq to Syria. This move is part of the company's strategy to build alternative routes for oil exports, reducing reliance on the Strait of Hormuz.