UAE Fast-Tracks Pipeline to Bypass Hormuz

The United Arab Emirates will accelerate construction of a new oil pipeline to double its export capacity through the port of Fujairah by 2027. The project would significantly increase the country’s ability to export crude outside the Strait of Hormuz.

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed has ordered state-owned ADNOC to speed up work on the West-East Pipeline project. The pipeline is already under construction and is expected to become operational in 2027.

The existing Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, can transport up to 1.8 million barrels a day and is central to exports through the Gulf of Oman coast.

The Strait of Hormuz, between Iran and Oman, was virtually closed after Iran responded to the 28 February US-Israeli attack. About a fifth of the world’s oil supply normally passes through the strait.

Supply disruptions have pushed up energy prices and raised fears of higher inflation and an economic slowdown.

(reuters, bak)