DUBAI, May 20 (Reuters) - A new crude oil pipeline being built by the United Arab Emirates, which avoids the Strait of Hormuz, is now 50% complete, according to ADNOC’s CEO, Sultan Al Jaber, who made the announcement on...
DUBAI, May 20 (Reuters) - A new crude oil pipeline being built by the United Arab Emirates, which avoids the Strait of Hormuz, is now 50% complete, according to ADNOC’s CEO, Sultan Al Jaber, who made the announcement on Wednesday.
Since the U.S.-Israeli strikes in February, Iran has mostly kept the important waterway, vital for global oil and gas supplies, closed to all ships except its own. This has caused a rise in energy prices and inflation, heightening concerns about a potential economic downturn.
Last week, the Abu Dhabi Media Office publicly disclosed the pipeline project for the first time, stating that the UAE plans to boost its oil export capacity through the Fujairah port by 2027.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed has instructed ADNOC to speed up the West-East Pipeline project during a recent executive meeting, as per the media office's announcement.
“It’s nearly 50% complete now, and we are working faster to finish it by 2027,” Al Jaber said during an event streamed live by the Atlantic Council.
He noted, “Currently, too much of the world’s energy still travels through too few chokepoints. This is why the UAE decided over a decade ago to invest in infrastructure that bypasses the Strait of Hormuz.”
The existing Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, has a capacity of up to 1.8 million barrels per day and is crucial for the UAE in maximizing exports from the Gulf of Oman, just outside the strait.
Al Jaber also mentioned that some of ADNOC's facilities had been specifically targeted, and some infrastructure was directly hit, with damage assessments ongoing. He indicated that it would take weeks or even months in some cases to return to full operational capacity.