UAE to bypass strait by 2027, complete 2nd oil pipeline

Dubai: The United Arab Emirates will complete a second oil pipeline bypassing the Strait of Hormuz by 2027 to safeguard its crude exports against ongoing disruptions, The Guardian reported on Friday.

The vital waterway remains blockaded near the 11-week mark following conflict with Iran, driving up global energy prices.  

Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Abu Dhabi’s Crown Prince, has directed the state oil company to expedite the secret project. The new line will link the emirates to the port of Fujairah on the Gulf of Oman, doubling the UAE’s bypass capacity to 3.6 million barrels a day. This bypass system has kept UAE exports flowing since Iran blocked tankers after US and Israeli attacks on Feb 28.  

The decision underscores a rift with Saudi Arabia, coming weeks after the UAE withdrew from OPEC. 

While the Saudis prefer production limits to maintain high oil prices, leaving the cartel enables the UAE to increase its crude output. The new pipeline guarantees that Abu Dhabi can execute its aggressive export strategy even if normal navigation through the strait does not return to pre-crisis levels anytime soon.