The United Arab Emirates is accelerating the implementation of a large-scale infrastructure project aimed at significantly expanding its oil export capabilities to bypass the Strait of Hormuz. By 2027, the country plans to double its supply capacity through the port of Fujairah, which will be a strategic move to ensure energy security and diversify transportation routes for raw materials.
This is reported by Finway
Rapid Construction of the New Oil Pipeline
During a meeting of the executive committee, the Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed, instructed the state-owned Abu Dhabi National Oil Company (ADNOC) to expedite the construction of the new West-East pipeline. The implementation of this project has already begun, with commissioning expected in 2027. The new pipeline is set to significantly enhance the country’s export potential, allowing oil to be transported directly from the coast of the Oman Gulf.
“The existing Abu Dhabi Crude Oil Pipeline, also known as Habshan-Fujairah, can transport up to 1.8 million barrels per day. It has become critically important for a country that aims to maximize direct exports from the coast of the Oman Gulf.”
Geopolitical Importance of Bypassing Hormuz
The UAE and Saudi Arabia remain the only producers in the Persian Gulf with alternative routes for oil exports bypassing the strategically important Strait of Hormuz. Oman, with its long coastline along the Oman Gulf, also has access to alternative logistical solutions.
After Iran effectively closed the movement through the Strait of Hormuz in response to the US-Israeli military campaign, global oil supplies were reduced by about one-fifth. This led to a significant increase in energy prices and forced governments in many countries to resort to fuel rationing and seek ways to stabilize the economic situation amid inflation.
Meanwhile, countries such as Kuwait, Iraq, Qatar, and Bahrain remain almost entirely dependent on transit through the Strait of Hormuz for their own oil exports, making them particularly vulnerable to any disruptions in this area.