en.Wedoany.com Reported - The UAE plans to double its crude oil export capacity bypassing the Strait of Hormuz by next year, reducing its reliance on this critical shipping chokepoint.
According to a statement released by the Abu Dhabi Media Office on X platform, Abu Dhabi National Oil Company (Adnoc) is accelerating the construction of an oil pipeline to the Port of Fujairah on the Gulf of Oman. The company currently operates a pipeline with a capacity of 1.5 million barrels per day, connecting its oil fields to this port on the east coast. During the ongoing conflict, this pipeline has proven to be a vital lifeline for the country.
Shortly after the war broke out in late February, when Iran nearly shut down regular shipping routes through the Strait of Hormuz, the existing pipeline helped the UAE continue supplying oil to the market. However, the pipeline's capacity is less than half of Adnoc's normal export volume, which could potentially impact the country's oil revenues.
The UAE and Saudi Arabia are the only two major oil producers in the Gulf region capable of continuing to deliver significant volumes of crude oil to the market during the war. In recent weeks, the state oil companies of both nations have been discreetly shipping some cargoes out of the Gulf region, thereby circumventing Iran's blockade.
Accelerating the construction of this pipeline also follows the UAE's decision to withdraw from the Organization of the Petroleum Exporting Countries, OPEC+. Freed from the group's production restrictions, the UAE has indicated plans to increase crude oil output to meet the demand surge driven by the war. Even if the Strait of Hormuz reopens to navigation in the future, the additional export capacity through the Port of Fujairah will provide the country with more options.
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