UAE Accelerates Construction of New Oil Pipeline to Double Export Capacity as Hormuz Strait Remains Unstable

The UAE is accelerating construction of a new West-East oil pipeline that will pass through Fujairah in the northeast, aiming to double export capacity and significantly reduce dependence on the restricted shipping lanes of the Hormuz Strait. Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed the Abu Dhabi National Oil Company (ADNOC) to fast-track the project, which is currently under construction and expected to become operational in 2027. This initiative comes amid growing concerns over the Hormuz Strait situation, where Iran has effectively blockaded one of the world's critical energy shipping routes following attacks between the US, Israel, and Iran on February 28. The disruption has reduced global crude oil supplies by approximately one-fifth, causing oil prices to surge and prompting fuel rationing in some countries while raising recession fears due to rising inflation. The UAE already operates the Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, which can transport up to 1.8 million barrels daily and has proven vital as the UAE seeks to maximize oil exports from the Oman Gulf coast. Currently, only the UAE and Saudi Arabia among Gulf producers have pipelines bypassing the Strait, while Kuwait, Iraq, Qatar, and Bahrain rely almost entirely on it for oil transportation.