UAE Accelerates Construction of Pipeline to Bypass Hormuz

The United Arab Emirates is accelerating construction of a new oil pipeline to bypass the Strait of Hormuz. Sultan Al Jaber, head of state-owned Abu Dhabi National Oil Company (ADNOC), said the project is around halfway complete and aims to double export capacity through the port of Fujairah by 2027.

Shipping through the Strait of Hormuz remains severely disrupted following US-Israeli attacks on Iran, pushing energy prices higher and fuelling fears of a global economic slowdown. Al Jaber warned that even after the conflict ends, it could take at least four months for global oil flows to recover to 80% of pre-war levels.

The UAE already operates the existing Abu Dhabi Crude Oil Pipeline (ADCOP), which has a capacity of 1.8 million barrels per day and allows oil to be exported without passing through the Strait of Hormuz. The new project is intended to significantly expand this capability.

During the conflict, the UAE also sustained missile and drone attacks on civilian infrastructure, including ADNOC facilities. Al Jaber noted that some facilities would not return to full capacity for several weeks to months.

The ADNOC chief also defended the UAE's decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and highlighted a lack of investment in the global oil sector. He added that the growth of artificial intelligence will significantly increase future energy consumption and place greater strain on energy networks.

(reuters, max)