Amid rising geopolitical instability in the Gulf, United Arab Emirates is moving faster to complete a major oil pipeline project designed to expand crude export capacity through Fujairah by 2027 and reduce dependence on the Strait of Hormuz.
(News Article by Haifa Chairunisa)
The directive was issued by Crown Prince Sheikh Khaled bin Mohamed bin Zayed during a government executive committee meeting, where he instructed Abu Dhabi National Oil Company (ADNOC) to accelerate development of the West-East pipeline, according to a statement published Friday by the Abu Dhabi Media Office.
Although the pipeline is already under construction and expected to become operational in 2027, officials have not revealed the project’s original completion target.
The UAE currently relies on the Abu Dhabi Crude Oil Pipeline (ADCOP), or Habshan–Fujairah pipeline, which can carry as much as 1.8 million barrels of oil daily. The infrastructure provides a strategic export route via the Gulf of Oman, enabling shipments to avoid the Strait of Hormuz.
Only a limited number of Gulf producers, including the UAE and Saudi Arabia, possess export routes that bypass the strait. Oman also holds a logistical advantage because of its extensive coastline along the Gulf of Oman.
Pressure on global energy markets intensified after Iran was reported to have effectively shut down the Strait of Hormuz following a US-Israeli military offensive launched on February 28. The waterway, located between Iran and Oman, is one of the world’s most critical oil transit routes and handles roughly 20% of global oil shipments.
Several Gulf states including Kuwait, Iraq, Qatar, and Bahrain continue to depend heavily on the strait for energy exports.
The ongoing disruption has contributed to surging oil and fuel prices worldwide, while fears of slower economic growth are mounting as governments grapple with inflation and tighter energy supplies.
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