UAE Accelerates Oil Pipeline Project to Reduce Reliance on Strait of Hormuz

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Abu Dhabi has ordered faster work on a new pipeline intended to double crude export capacity through Fujairah by 2027, strengthening the UAE’s ability to ship oil outside the Strait of Hormuz.

The United Arab Emirates is accelerating construction of a new oil pipeline designed to expand its capacity to export crude outside the Strait of Hormuz, as disruption in the Gulf continues to expose the strategic vulnerability of one of the world’s most important energy routes.

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed has instructed Abu Dhabi National Oil Company to speed up the West-East Pipeline project, which is already under construction and is expected to become operational in 2027. The project is intended to double the UAE’s oil export capacity through Fujairah, on the Gulf of Oman, according to current reporting on the project.

Fujairah is strategically important because it lies outside the Strait of Hormuz, the narrow waterway between Iran and Oman through which around a fifth of global oil flows normally passes. By moving more crude directly to the Gulf of Oman coast, the UAE would be able to reduce its dependence on tanker movements through the strait.

The UAE already operates the Abu Dhabi Crude Oil Pipeline, also known as the Habshan-Fujairah pipeline, which can carry up to about 1.8 million barrels per day. That route has become increasingly important as Abu Dhabi seeks to maximise direct exports from the Gulf of Oman and maintain access to international markets during periods of regional disruption.

The new West-East Pipeline would expand that system and give the UAE greater flexibility in the event of future maritime blockages or military escalation around Hormuz. It would not eliminate the country’s exposure to regional security risks, but it would improve its ability to keep crude moving when Gulf shipping lanes are constrained.

The present urgency follows the effective closure of the Strait of Hormuz after Iran responded to the US-Israeli air and maritime campaign that began on 28 February. The disruption has affected oil flows normally destined for Asia and other major consuming regions, contributing to higher energy prices, pressure on fuel supplies and wider concerns over inflation and economic slowdown.

The UAE and Saudi Arabia are the only major Gulf producers with significant pipeline routes that can move crude for export outside the Strait of Hormuz. Saudi Arabia’s East-West system links oil production areas in the east to Red Sea export terminals, while the UAE’s existing route carries crude from inland Abu Dhabi to Fujairah. Other Gulf producers, including Kuwait, Iraq, Qatar and Bahrain, remain far more dependent on Hormuz for seaborne exports.

The strategic value of alternative routes has become clearer since the start of the current crisis. Recent analysis of alternative Middle East oil and gas routes noted that the Habshan-Fujairah pipeline was commissioned in 2012 and runs about 360 kilometres from Abu Dhabi’s onshore fields to the Gulf of Oman. Its capacity is generally estimated at between 1.5 million and 1.8 million barrels per day.

For Abu Dhabi, the expansion also supports broader energy-policy objectives. ADNOC has been working towards increasing the UAE’s production capacity to 5 million barrels per day by 2027, with company officials indicating that further expansion could be possible if required. That production strategy depends not only on upstream capacity, but also on reliable export infrastructure.

Fujairah’s role has therefore become central to the UAE’s long-term energy security. The port is already an important hub for oil storage, bunkering and crude exports. Expanding pipeline access to Fujairah would strengthen its function as an outlet for Emirati crude and as one of the few Gulf-linked export points outside Hormuz.

The project also reflects a wider regional reassessment of energy logistics. Gulf states have been considering additional pipeline routes across the Arabian Peninsula to reduce reliance on Hormuz, although such infrastructure would require significant investment, cross-border coordination and long construction timelines. A recent assessment of possible pipeline alternatives to Hormuz suggested that any broader regional solution would involve substantial financial and security costs.

For oil-importing countries, especially in Asia, the UAE’s pipeline expansion could offer some additional supply resilience by 2027. However, it would not replace the full volume normally moving through the Strait of Hormuz. The waterway remains central to global energy trade, and any prolonged disruption would continue to affect prices, freight costs and refinery supply planning.

The UAE’s decision is therefore best understood as a national resilience measure rather than a complete solution to the Hormuz problem. By accelerating the West-East Pipeline, Abu Dhabi is seeking to expand its room for manoeuvre in a region where energy infrastructure, maritime security and geopolitical risk have become increasingly closely connected.

EU Global Editorial Staff
EU Global Editorial Staff

The editorial team at EU Global works collaboratively to deliver accurate and insightful coverage across a broad spectrum of topics, reflecting diverse perspectives on European and global affairs. Drawing on expertise from various contributors, the team ensures a balanced approach to reporting, fostering an open platform for informed dialogue.While the content published may express a wide range of viewpoints from outside sources, the editorial staff is committed to maintaining high standards of objectivity and journalistic integrity.

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