UAE Expedites Pipeline Construction to Bypass Strait of Hormuz

The United Arab Emirates (UAE) is accelerating the construction of a pipeline that bypasses the Strait of Hormuz, aiming to double its capacity for crude oil exports by next year. According to Abu Dhabi National Oil Co., the existing 252-mile pipeline from its oil fields to the port of Fujairah on the Gulf of Oman has been a lifeline during the Middle East conflict. The UAE's state-owned oil company, Adnoc, is planning to expand this capacity to handle more than half of its normal export volumes.

The project is significant because it reduces dependence on the Strait of Hormuz, which Iran practically shut after the war began in late February. As a result, the UAE and Saudi Arabia are the only major Gulf oil producers able to get significant quantities of crude to market during this time. The expanded pipeline will provide more options for exporting oil even if the Strait of Hormuz reopens.

Adnoc is set to boost its capacity to 5 million barrels a day by next year, which would be an increase from the current 3 million barrels a day. The company ships most of its main grade of crude via the pipeline to Fujairah for export. The expanded capacity will likely exceed the volume of Murban that Adnoc can produce.