UAE Orders ADNOC to Fast-Track Pipeline Doubling Hormuz Bypass Oil Capacity by 2027
The United Arab Emirates will accelerate construction of a new oil pipeline to double its export capacity through Fujairah by 2027, the government’s Abu Dhabi Media Office announced on Friday, vastly expanding its ability to bypass the Strait of Hormuz. Arab News
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Executive Council, chaired a meeting of the Executive Committee of the ADNOC Board of Directors at the company’s Abu Dhabi headquarters, during which he directed Abu Dhabi National Oil Company to fast-track the West-East Pipeline project. The pipeline is currently under construction and is expected to become operational in 2027. GulfToday
The Project and What It Replaces
The West-East Pipeline expansion will double crude export capacity through Fujairah by running along the Habshan–Fujairah route, which bypasses the Strait of Hormuz and ensures uninterrupted exports during regional tensions. The National
The UAE’s existing pipeline — the Abu Dhabi Crude Oil Pipeline, also known as the Habshan-Fujairah pipeline — stretches more than 360 kilometres across the country and has the capacity to transport up to 1.5 million barrels of crude oil per day. Construction began in 2008, with commercial operations commencing in 2012. The National
The current pipeline handles less than half of ADNOC’s normal export volumes. With the new infrastructure, the UAE aims to substantially close that gap and ensure continued market access amid regional instability. Athens Times
During the executive meeting, Sheikh Khaled commended ADNOC for its resilience in maintaining safe operations while continuing to reliably supply energy to local and international customers. GulfToday
Why Now: The Hormuz Closure
The narrow waterway between Iran and Oman was effectively shuttered by Iran in response to a US-Israeli air and naval campaign that began on February 28, choking off about a fifth of global oil supplies that normally flow to Asia and elsewhere. Arab News
Global energy supplies are under pressure amid the Iran war, and flows through the Strait of Hormuz remain severely limited. Repeated attacks on energy infrastructure and shipping have curtailed the UAE’s ability to restore normal output. CNBC
“Crude exports routed through Fujairah have increased during the disruption to Gulf shipping lanes,” the emirate’s Media Office said. The National
The UAE and Saudi Arabia are the only Gulf producers with pipelines that export crude outside the Strait of Hormuz, while Oman has a long coastline on the Gulf of Oman. Kuwait, Iraq, Qatar, and Bahrain are almost wholly reliant on the strait for shipments. Arab News
That geographic reality has placed the UAE in a position of unusual leverage during the current crisis. Its ability to keep crude flowing while neighbours cannot has made Fujairah one of the most consequential export terminals in the world right now.
Wider Production Ambitions
The project also supports a production capacity target of five million barrels per day by 2027, aligned with infrastructure growth and the UAE’s recent exit from OPEC. The National
The UAE’s exit from OPEC this month is expected to provide the country with greater flexibility over future oil production levels as it pursues long-term capacity expansion plans. Free from OPEC output ceilings, Abu Dhabi can now set its own production pace — and the new pipeline gives it the export infrastructure to match. The National
The expansion aligns with the UAE’s plans to increase oil production capacity to five million barrels per day by 2027 through continued investment in upstream and export infrastructure. The National
Regional and Global Impact
Abu Dhabi National Oil Company is building the pipeline to run to the port of Fujairah on the Gulf of Oman, which has proven to be a lifeline for the country during the war. Once doubled, Fujairah’s throughput will position the UAE as the Gulf’s dominant reliable crude exporter for the duration of the Hormuz disruption — and well beyond it. Bloomberg
The UAE and Saudi Arabia are currently the only major Gulf producers able to maintain significant crude oil deliveries to global markets during the conflict. For energy-importing nations in Asia — particularly China, India, Japan, and South Korea — the UAE’s expanded Fujairah corridor represents one of the few stable arteries left in a severely disrupted global oil market. Athens Times
The stakes extend beyond barrels. Countries like Kuwait, Iraq, and Qatar, with no viable bypass routes, face structural vulnerability so long as the strait remains choked. The UAE’s accelerated investment widens the gap between those with alternatives and those without.
Background
The Habshan-Fujairah pipeline was developed by ADNOC to transport crude from Abu Dhabi’s onshore Habshan fields to the Port of Fujairah on the Gulf of Oman, bypassing the Strait of Hormuz. The project was launched as part of the UAE’s broader strategy to enhance energy security and ensure uninterrupted exports to international markets amid growing regional tension. The National
The Strait of Hormuz is the narrow waterway between Iran and Oman through which roughly one-fifth of global oil supplies normally pass. Iran’s decision to restrict vessel traffic through the strait following the US-Israeli campaign that began on February 28 sent shockwaves through energy markets. The strait’s closure has forced oil traders, refiners, and governments to scramble for alternative supply routes. Arab News
What Happens Next
The West-East Pipeline is currently under construction and is expected to become operational in 2027. The Abu Dhabi Media Office did not disclose the original timeline for the project, only confirming that the Crown Prince directed ADNOC to fast-track delivery. The Executive Committee also reviewed ADNOC’s efforts to strengthen operational resilience and ensure the continuity of exports through strategic infrastructure projects. No further details on project milestones or costs were released in Friday’s statement. GulfToday + 2
