UAE Accelerates Second Oil Pipeline to Bypass Strait of Hormuz
Abu Dhabi is pressing ahead with a second oil export pipeline to sidestep the Strait of Hormuz, CNBC reported Friday, as the ongoing conflict with Iran keeps the critical waterway severely constrained. The new West-East pipeline is expected to come online in 2027 and will double the Abu Dhabi National Oil Company’s seaborne export capacity through the port of Fujairah.
Crown Prince Orders Faster Delivery on Strait of Hormuz Pipeline
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan directed the national oil company to accelerate construction during a meeting of ADNOC’s executive committee on Friday. He said ADNOC is well positioned to raise output and meet rising global demand once export constraints ease. The remarks signal Abu Dhabi’s urgency in restoring supply routes disrupted by repeated strikes on shipping and energy infrastructure since the Iran war began.
The UAE’s current daily output has fallen sharply as a result of those disruptions. Before hostilities escalated, production ran at roughly 3 million barrels per day. It has since dropped to somewhere between 1.8 million and 2.1 million barrels per day, well below Abu Dhabi’s longer-term target of 4.9 million barrels per day.
Background: A Single Bypass Route Has Been Stretched to Its Limit
The UAE has long maintained one alternative export artery to the Hormuz chokepoint. The existing Abu Dhabi Crude Oil Pipeline, sometimes called the Habshan-Fujairah line, can carry up to 1.8 million barrels per day overland to the Gulf of Oman. That capacity has effectively been running at its ceiling, leaving no headroom to absorb further shocks to Hormuz traffic. The new pipeline is designed to address that vulnerability directly by adding a second, parallel corridor to the same Fujairah terminal.
Also Read: Iran Conflict Rattles Global Oil Markets as Hormuz Traffic Stalls
OPEC Exit Adds Strategic Dimension to Infrastructure Push
The infrastructure drive follows a significant diplomatic shift. Earlier this month the UAE announced it was leaving OPEC, ending a membership that predates the Emirates’ own founding in 1971. Departing the cartel gives Abu Dhabi greater freedom to ramp production independently once export routes are restored. Analysts see the pipeline acceleration and the OPEC exit as complementary moves, positioning ADNOC to capture market share the moment Hormuz conditions improve.
The 2027 completion target will be closely watched by energy markets already strained by constrained Gulf flows, a tighter tanker market, and persistent uncertainty over the conflict’s duration.
