economy
UAE says new pipeline that will bypass Strait of Hormuz is nearly 50% complete
The UAE has redirected some oil exports through an existing pipeline to Fujairah, which has a maximum capacity of 1.8 million barrels per day.
TL;DR
- The UAE has completed nearly 50% of a second pipeline to bypass the Strait of Hormuz.
- The new pipeline will double ADNOC's export capacity through Fujairah.
- The project's construction was accelerated due to the Iran war and the blockade of Hormuz.
- The pipeline is expected to become operational in 2027.
- Iran's blockade of Hormuz has caused the most severe energy supply disruption in history, leading to significant oil losses.
- It is estimated that it will take until the first or second quarter of 2027 for oil flows to fully normalize, even if the conflict ends immediately.
- The UAE has redirected some oil exports through an existing pipeline to Fujairah, with a maximum capacity of 1.8 million barrels per day.