The United Arab Emirates is pushing ahead with a new oil pipeline to double its export capacity through the eastern port city of Fujairah, as Gulf states seek alternatives to the Strait of Hormuz.
Crown Prince Sheikh Khaled bin Mohamed bin Zayed announced the acceleration of the East-West Pipeline Project to "meet global demand" during an executive meeting hosted by the Abu Dhabi National Oil Company (ADNOC) on Friday. According to the Abu Dhabi Media Office, the pipeline is expected to become operational by 2027.
Sheikh Khaled stated that ADNOC is "well-positioned as a responsible and reliable global energy producer, with the operational flexibility to responsibly increase output to meet market demand as export constraints allow."
The conflict between the United States and Israel with Iran has disrupted global energy supply chains. With the blockade of the Strait of Hormuz — which previously carried about one-fifth of the world's oil — along with Iran's new maritime procedures on that route, as well as attacks on energy infrastructure, Gulf states have been forced to seek alternative trade routes to maintain oil and gas exports.
The UAE currently operates the 380-kilometer Abu Dhabi Crude Oil Pipeline (ADCOP) from the Habshan oil fields southwest of Abu Dhabi to the port of Fujairah — a site that has come under recent attack. This pipeline, launched in 2012, has a capacity of about 1.5 million barrels per day (bpd) and is one of the key energy routes in the Middle East.
In comparison, Saudi Arabia operates the 1,200-kilometer East-West Pipeline from the Abqaiq oil processing center to the port of Yanbu on the Red Sea. Aramco CEO Amin Nasser has called it the kingdom's "critical lifeline." Oman has an extensive coastline outside the Strait of Hormuz, while Kuwait, Iraq, Qatar, and Bahrain are almost entirely dependent on this waterway for trade shipments.
Last month, the UAE announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) to focus on "national interests." The UAE stated the move was part of a "long-term strategic and economic vision, along with an evolving energy profile."
