Bloomberg: Abu Dhabi Considers Third Oil Pipeline to Bypass Hormuz
The UAE is considering constructing a third oil pipeline to reduce reliance on the Strait of Hormuz.
Translated by Qiyas from الجريدة — Original source
Bloomberg reported that the United Arab Emirates is considering building a third crude oil export pipeline to bypass the Strait of Hormuz, as part of its efforts to significantly reduce its heavy reliance on the strategic waterway.
According to the agency, Abu Dhabi National Oil Company (ADNOC) is studying the construction of a pipeline stretching from the UAE’s western coast to the port of Fujairah on the eastern coast, with provisions allowing other companies to use it for oil transportation.
The proposed pipeline would join an existing line and another scheduled to come online next year, enhancing the UAE’s capacity to continue exporting oil in the event of future disruptions in the Strait of Hormuz.
At the end of last October, ADNOC informed some Asian refineries that a portion of its supplies from offshore fields would likely be delivered via the new pipeline starting in the early months of 2027, marking the latest indication of the project’s timeline, which will help the company avoid dependence on the Strait of Hormuz, which has experienced repeated disruptions and tensions.
According to sources familiar with the matter speaking to Bloomberg, the UAE’s largest oil producer indicated the possibility of beginning to supply a portion of Upper Zakum crude, produced from fields located within the Arabian Gulf, to long-term contract customers through the port of Fujairah during the first period of 2027.
ADNOC announced in May last year that it had accelerated construction work on the new pipeline, confirming its readiness for operation by next year without disclosing further details.
Crude will be delivered in Fujairah under annual supply contracts, allowing buyers to ship supplies without their tankers needing to cross the Strait of Hormuz, which still faces security risks linked to Iranian threats. The new pipeline would double ADNOC’s capacity to bypass the strait, as part of the UAE’s plan to reduce its reliance on this vital maritime route, ultimately aiming to eliminate it entirely.
Alternative pipelines, including another operated by Saudi Arabia, have emerged as vital routes for oil exports during periods of tension and war in the region. ADNOC currently operates a pipeline that transports Marban crude, produced from onshore fields, to Fujairah, while offshore crudes such as Upper Zakum are typically sold through tenders, with shipments loaded at sites located outside the Strait of Hormuz after being transported through it.
