economy
UAE fast tracks second West-East oil pipeline to bypass Strait of Hormuz
The second pipeline project comes as global energy supplies remain under pressure and flows through the Strait of Hormuz remain severely limited
TL;DR
- Abu Dhabi is expediting the construction of a new West-East pipeline to Fujairah.
- The pipeline aims to expand oil export capacity and bypass the Strait of Hormuz.
- Expected to be operational in 2027, it will double ADNOC's export capacity.
- Global energy supplies are under pressure, and Strait of Hormuz flows are limited.
- Attacks on energy infrastructure have curtailed the UAE's ability to restore normal output.
- Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan urged faster pipeline delivery.
- ADNOC is positioned as a reliable global energy producer capable of increasing production when export constraints allow.
- The UAE recently announced its departure from OPEC, where it was a member since 1967.
- Abu Dhabi has targeted a production capacity of 4.9 million BPD, compared to its pre-war production of just over 3 million BPD.
- Current UAE production is between 1.8 and 2.1 million barrels per day due to the war.
- The existing Abu Dhabi Crude Oil Pipeline (Adcop) can carry up to 1.8 million barrels.