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UAE Accelerates Pipeline to Double Oil Export Capacity Bypassing Hormuz by 2027

The United Arab Emirates is accelerating pipeline construction to double its crude oil export capacity bypassing the Strait of Hormuz by 2027. State producer Abu Dhabi National Oil Company is expanding conduit links to the Gulf of Oman port of Fujairah. The initiative builds on an existing pipeline to secure alternative export channels outside the regional maritime chokepoint.

The United Arab Emirates is accelerating construction of a crude oil pipeline to double its export capacity bypassing the Strait of Hormuz by 2027, according to an Abu Dhabi Media Office announcement reported by Bloomberg and EnergyNow.com.

Abu Dhabi National Oil Company (ADNOC) is fast-tracking the conduit running to the port of Fujairah on the Gulf of Oman, seeking to reduce reliance on the maritime shipping chokepoint. The state-owned energy company already operates a pipeline linking Abu Dhabi oil fields to Fujairah.

ADNOC had planned the pipeline expansion because the existing route carries less than half of normal export volumes. The UAE and Saudi Arabia remain the only major Gulf oil producers capable of sending substantial export volumes to market without traversing the Strait of Hormuz.

Carole Nakhle, chief executive officer of consultancy Crystol Energy Ltd., stated that while the expansion gains heightened significance during regional maritime tensions, the strategic rationale predates recent disruptions, with the core goal being to reduce reliance on Hormuz and align export logistics with broader upstream production capacity.

Sources

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