UAE Orders ADNOC to Fast-Track Oil Pipeline That Doubles Hormuz Bypass Capacity
The United Arab Emirates announced on Friday that it will accelerate construction of a new oil pipeline to double its export capacity through Fujairah by 2027, vastly expanding its ability to bypass the Strait of Hormuz. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed Abu Dhabi National Oil Company to fast-track the project during an executive committee meeting held on May 15. The Times of IsraelMaritime Executive
Iran has effectively shut the Strait of Hormuz since the country was attacked by the United States and Israel on February 28, choking off about a fifth of global oil supplies. The new pipeline is the UAE’s clearest infrastructure response yet to that disruption. The Times of Israel
The Pipeline and What It Will Do
The West-East Pipeline runs 360 kilometres from Habshan in Abu Dhabi to the port of Fujairah on the Gulf of Oman, allowing crude exports to bypass the Strait of Hormuz entirely. Once complete, it is expected to roughly double ADNOC’s current export capacity through Fujairah to around four million barrels per day. Nukta
ADNOC has operated a pipeline from Habshan to Fujairah for more than a decade. It was put into operation in 2012 and has a capacity of approximately 1.5 million barrels per day. Since the outbreak of hostilities and the blockade of the Strait, ADNOC is reported to be running the pipeline at around 1.7 to 1.8 million barrels per day. Maritime Executive
The new West-East Pipeline runs parallel to that existing route. The project 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
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed stated that ADNOC is “well positioned as a responsible and reliable global energy producer, with the operational flexibility to responsibly increase production to meet market needs when export constraints allow.” Al Jazeera
The War’s Impact on UAE Output
Before the war, the UAE was producing just over 3 million barrels a day — broadly in line with OPEC+ targets. Abu Dhabi had targeted a capacity to produce 4.9 million barrels per day. Due to the war, the UAE is now producing between 1.8 and 2.1 million barrels per day. CNBC
The UAE and its oil buyers have recently sailed several tankers through the strait with location trackers switched off to avoid Iranian attacks, in a bid to move oil trapped in the Gulf. The pipeline expansion is designed to make such improvised manoeuvres unnecessary. The Times of Israel
Iranian drones hit a gas-processing facility near the pipeline’s starting point at Habshan during the war. Fujairah was also attacked, with activity at the port briefly suspended. The port has been attacked several times, which the UAE has blamed on Iran, forcing temporary halts to oil loadings in April. middleeasteyeThe Times of Israel
Despite those attacks, crude exports routed through Fujairah have increased during the disruption to Gulf shipping lanes, the emirate’s Media Office said, emphasising the strategic importance of the pipeline for global energy markets. The National
OPEC Exit and Production Ambitions
The new pipeline project comes at a critical moment for the UAE, which has exited OPEC after nearly 60 years and is no longer bound by any production quotas. OilPrice.com
Last month, the UAE announced its departure from the Organization of the Petroleum Exporting Countries in order to focus on “national interests,” saying the move was part of its “long-term strategic and economic vision and evolving energy profile.” Al Jazeera
The UAE is now signalling it needs to look after its own economic interests and is accelerating investment in new projects, unhindered by any OPEC or OPEC+ restrictions. The pipeline expansion is the most concrete expression of that shift. OilPrice.com
The West-East Pipeline forms part of a broader expansion programme, with ADNOC planning to award $55 billion in projects between 2026 and 2028. Nukta
Regional Context: Saudi Arabia and the Hormuz Race
The UAE is not alone in rerouting around Hormuz. Saudi Arabia’s East-West pipeline has allowed the kingdom to export five million barrels per day of oil via the Red Sea port of Yanbu. Aramco Chief Executive Amin Nasser called it a “critical lifeline,” adding that Aramco ramped up the pipeline’s capacity to seven million barrels per day in eight days, keeping about 60 percent of the kingdom’s pre-war exports flowing. The Times of Israel
Saudi Arabia’s Red Sea port of Yanbu was also attacked. Both Gulf states are now racing to reinforce export infrastructure that was previously considered supplementary but has become their primary route to market. The Times of Israel
The UAE’s new pipeline is distinct from Saudi Arabia’s route. Fujairah’s location outside the Arabian Gulf has helped establish the emirate as one of the world’s leading bunkering and oil storage hubs. The port’s position on the Gulf of Oman means tankers can load without entering the Strait at all. The National
What Happens Next
ADNOC says it expects the new pipeline to be operational in 2027. The UAE is targeting total oil production capacity of five million barrels per day by 2027, up from current levels. Maritime ExecutiveNukta
With uncertainty over when the Strait of Hormuz will reopen and whether traffic will resemble the free and unconditional passage that existed before the war, the UAE is accelerating plans to bypass the critical chokepoint and monetise its expected production growth. OilPrice.com
Following its recent decision to leave OPEC, the UAE is moving to expand infrastructure, increase market share, and compete more independently in global energy markets. The Abu Dhabi Media Office has not announced a timeline for when the Habshan facility, damaged in an earlier drone strike, will return to full operating capacity. Nukta
