The United Arab Emirates (UAE) plans to speed up construction of a new oil pipeline to double its export capacity through the port of Fujairah by 2027, according to the Abu Dhabi Media Office.
This development is expected to increase the UAE’s ability to ship oil outside the Strait of Hormuz, a major transit route for global energy supplies that is currently affected by regional instability, reported Reuters
Last week, Abu Dhabi Crown Prince and Abu Dhabi Executive Council Chairman Sheikh Khaled bin Mohamed bin Zayed chaired an executive committee meeting at Abu Dhabi National Oil Company (ADNOC) headquarters. During the meeting, he directed the company to expedite the West-East Pipeline project. ADNOC indicated that this new oil pipeline is already under construction and is expected to be operational next year.
The current Abu Dhabi Crude Oil Pipeline, which connects to Fujairah, has a daily capacity of up to 1.8 million barrels (mbbl). Recent developments around regional security have heightened focus on alternative export routes. Since the Iran conflict began, Tehran has expanded its definition of the Strait of Hormuz and the maritime territory it claims, leading to increased tension.