Iran has blocked the Strait of Hormuz for weeks in response to a U.S.-Israeli air and naval campaign that began on Feb. 28.
The United Arab Emirates announced plans on May 15 to accelerate construction of a new oil pipeline to double its export capacity through Fujairah by 2027, massively expanding its capacity to bypass the blocked Strait of Hormuz.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed the Abu Dhabi National Oil Company (ADNOC) to fast-track the West-East Pipeline project during an executive committee meeting, the government’s Abu Dhabi Media Office said, adding that the pipeline is under construction and expected to start operating in 2027.
However, the release did not disclose the original project timeline.
The UAE’s existing Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, has a capacity of up to 1.8 million barrels per day, and has proved a vital artery for the monarchy as it seeks to maximize direct exports from the Gulf of Oman coast amid the ongoing Iran war.
Along with Saudi Arabia, the UAE is the only other Gulf producer with a pipeline that bypasses the Strait of Hormuz, while Oman itself has a long coastline on the Gulf of Oman.
The Strait of Hormuz, a narrow waterway flanked by Iran and Oman, has been blocked for weeks by the Islamic Republic’s response to a U.S.–Israeli air and naval campaign that began on Feb. 28.
Oil production in the UAE stood at just under 3.4 million barrels per day in January before the war, but output more than halved after the effective closure of the Strait of Hormuz forced ADNOC to shut in some production.
The result has been the choking off of about a fifth of global oil supplies, which flow chiefly to Asia but also to other parts of the world.
The Gulf nations of Kuwait, Iraq, Qatar, and Bahrain are almost entirely reliant on the strait to ship goods to the wider world.
Energy prices have surged due to the blockage, causing huge disruption to the global economy and prompting dire warnings from governments and watchdogs.
By Guy Birchall
