The UAE has ordered state oil company ADNOC to fast-track construction of a second pipeline to double crude export capacity through Fujairah port, bypassing the Strait of Hormuz amid escalating regional tensions.
According to Al-Monitor, the United Arab Emirates has announced plans to accelerate construction of a new oil pipeline to double crude export capacity through its Fujairah port, bypassing the troubled Strait of Hormuz.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed instructed state-owned ADNOC to fast-track the West-East Pipeline project, which Al-Monitor said will become operational in 2027.
The move follows severe disruption to commercial traffic through the Strait of Hormuz after Iran effectively closed the waterway in response to US-Israeli strikes. ADNOC CEO Sultan bin Ahmed Al Jaber warned of the consequences, saying: “The world is already one billion barrels short because of the closure of Hormuz. That is the arithmetic of extortion. Every day the Strait is held hostage, the costs go up…for families, farms, factories and economies around the world.”
Al-Monitor noted the UAE’s estimated oil export earnings dropped by more than $174 million year-on-year in March.
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