UAE Fast-tracks Second Pipeline to Bypass Strait of Hormuz to Double Export Capacity
Abu Dhabi has ordered its state oil company to accelerate a critical pipeline expansion project that will double the United Arab Emirates’ crude export capacity through the port of Fujairah by 2027, officials said.
The directive, issued by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed during an executive committee meeting last week, fast-tracks the construction of the new West-East Pipeline.
The project underscores a shift among Gulf energy powers, who are moving away from treating disruptions in the Strait of Hormuz as short-term shipping challenges.
Instead, nations are investing in permanent infrastructure to reduce exposure to the strategic chokepoint, where recent tensions have disrupted tanker traffic and inflated global energy prices.
UAE’s new pipeline will transport crude from Abu Dhabi’s onshore fields to Fujairah, a major bunkering and oil hub on the Gulf of Oman.
Because Fujairah sits outside the Strait of Hormuz, the route allows the UAE to bypass the narrow waterway, which is bordered by Iran and Oman.
Currently, the UAE relies on the Habshan-Fujairah pipeline, which has an export capacity of roughly 1.5 million to 1.8 million barrels per day.
The accelerated expansion aims to double this capacity, supporting the Abu Dhabi National Oil Company’s (ADNOC) broader target to raise its overall production capability to 5 million barrels per day by 2027.
Historically handling about one-fifth of the world’s oil and liquefied natural gas, the Strait of Hormuz remains a vital global energy transit point. However, recent geopolitical instability has choked regional energy flows and heightened economic anxieties.
The UAE and Saudi Arabia are the only Gulf producers possessing pipeline infrastructure capable of routing crude around the strait.
Saudi Arabia has similarly utilized its East-West pipeline to the Red Sea as an export lifeline during the current crisis.
The UAE's announcement follows its recent departure from OPEC, a move that freed the country from strict oil production quotas and provided greater operational flexibility for its infrastructure targets.