UAE Announces Acceleration of Pipeline to Bypass the Strait of Hormuz

The United Arab Emirates announced plans on May 15 to accelerate construction of a new oil pipeline to double its export capacity through Fujairah by 2027, massively expanding its capacity to bypass the blocked Strait of Hormuz.

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed the Abu Dhabi National Oil Company (ADNOC) to fast-track the West-East Pipeline project during an executive committee meeting, the government’s Abu Dhabi Media Office said, adding that the pipeline is under construction and expected to start operating in 2027.

However, the release did not disclose the original project timeline.

The UAE’s 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 has proved a vital artery for the monarchy as it seeks to maximize direct exports from the Gulf of Oman coast amid the ongoing Iran war.

Along with Saudi Arabia, the UAE is the only other Gulf producer with a pipeline that bypasses the Strait of Hormuz, while Oman itself has a long coastline on the Gulf of Oman.

The Strait of Hormuz, a narrow waterway flanked by Iran and Oman, has been blocked for weeks by the Islamic Republic’s response to a U.S.–Israeli air and naval campaign that began on Feb. 28.

Oil production in the UAE stood at just under 3.4 million barrels per day in January before the war, but output more than halved after the effective closure of the Strait of Hormuz forced ADNOC to shut in some production.

The result has been the choking off of about a fifth of global oil supplies, which flow chiefly to Asia but also to other parts of the world.

The Gulf nations of Kuwait, Iraq, Qatar, and Bahrain are almost entirely reliant on the strait to ship goods to the wider world.

Energy prices have surged due to the blockage, causing huge disruption to the global economy and prompting dire warnings from governments and watchdogs.

The UAE itself has been subjected to numerous missile and drone attacks by Iran, which has not only impacted its oil industry but also the lucrative tourism trade it has built up, particularly in the cities of Abu Dhabi and Dubai.

To counter these attacks, Israel deployed Iron Dome missile defense batteries and personnel to the UAE during the Iran war, according to U.S. Ambassador to Israel Mike Huckabee.

Huckabee made the comments on May 12 during the Tel Aviv Conference hosted by Tel Aviv University and the Kadar Family Foundation.

“I’d like to say a word of appreciation for United Arab Emirates, the first Abraham Accord member,” Huckabee said at the event. “Just look at the benefits. Israel just sent them Iron Dome batteries and personnel to help operate them.”

Huckabee said the deployment reflected what he described as an “extraordinary relationship” between the UAE and Israel under the Abraham Accords.

The comments highlighted growing military cooperation between Israel and the UAE, which formally normalized relations under the 2020 Abraham Accords brokered by the United States.

UAE Leaves OPEC

The announcement of the acceleration of the new pipeline came just weeks after the UAE left OPEC.

The country announced on April 28 that it would exit OPEC and the wider OPEC+ alliance, effective May 1.

In a government statement, published by Emirati state-run news agency WAM on April 28, the UAE said it sought a “sovereign responsibility in a new energy age.”

It said that near-term volatility, including disruptions in the Persian Gulf and the Strait of Hormuz, continues to affect supply dynamics, and that underlying trends point to “sustained growth in global energy demand over the medium to long term.”

Reuters, Evgenia Filaminova, and Owen Evans contributed to this report.