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UAE Considers Additional Oil Pipeline to Bypass Strait of Hormuz

News originally published by

MENAFN

(MENAFN) The United Arab Emirates is exploring the possibility of developing a third crude oil pipeline to reduce its reliance on the Strait of Hormuz for oil exports, although the reported plans have been rejected by the Abu Dhabi National Oil Company (ADNOC).

The proposed infrastructure could connect the country's western coastline with the eastern port of Fujairah, potentially allowing other oil companies to use the route. Discussions have reportedly taken place between ADNOC and several Asian customers, but key details, including the pipeline's proposed path, remain undecided.

ADNOC has denied the reports, with a company spokesperson stating: “We have advised Bloomberg that this report is not accurate and purely speculative,”

The UAE currently operates a pipeline transporting crude oil from the Habshan fields in Abu Dhabi to Fujairah, situated along the Gulf of Oman. This connection enables oil tankers to collect shipments without navigating the Strait of Hormuz.

The existing infrastructure has a transportation capacity of approximately two million barrels per day and has provided the UAE with an alternative export route during interruptions to maritime traffic through the strategic waterway.

Meanwhile, another pipeline project, known as the West-East Pipeline, is already being developed. ADNOC announced in May that the facility was expected to enter service in 2027, potentially doubling the country's oil export capacity through Fujairah.

At the time, ADNOC Chief Executive Sultan Al Jaber indicated that construction had reached the halfway mark, highlighting progress toward expanding the UAE's ability to transport crude oil through routes that avoid the Strait of Hormuz.

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