UAE fast-tracks oil pipeline to bypass Strait of Hormuz
Why this matters: an international story with cross-border implications worth tracking.
The United Arab Emirates (UAE) is fast-tracking a major west-east oil pipeline expansion aimed at bypassing the Strait of Hormuz amid escalating regional tension and disruption to global energy supplies. UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan said on Friday that the project would double the country’s export capacity and help meet global demand. The pipeline, expected to become operational in 2027, will complement the Abu Dhabi crude oil pipeline, which transports 1.8 million barrels a day from Habshan in Abu Dhabi to the eastern port of Fujairah along the Gulf of Oman. The move comes as the Strait of Hormuz remains heavily restricted after Iran blockaded it following US and Israeli attacks on the country on 28 February. Completed in 2012, the Abu Dhabi crude oil pipeline has become a strategic export route for the UAE during the conflict. The infrastructure has reportedly also come under attack from Iran. With one of the world’s most critical oil chokepoints under severe pressure, conveying 20% of global oil, Abu Dhabi aims to significantly increase crude exports through Fujairah, bypassing the strait. The initiative is aimed at meeting global demand and ensuring UAE trade resilience during geopolitical conflicts. The UAE oil pipeline expansion could also have significant implications for South Africa, which remains exposed to global oil price volatility and shipping disruptions associated with the Strait of Hormuz. Prolonged instability in the corridor could place additional pressure on fuel prices, import costs and inflation across African economies that rely on Gulf energy supplies. Sheikh Khaled chaired a meeting of the executive committee of the Abu Dhabi National Oil Company (Adnoc) board, where officials reviewed the pipeline expansion and progress on the TA’ZIZ chemicals ecosystem in Al Ruwais Industrial City. During the Friday meeting, Sheikh Khaled said Adnoc remained “well-positioned as a responsible and reliable global energy prod