UAE planning to by 2027, double the capacity to export crude oil bypassing the Strait of Hormuz, according to Bloomberg.
This is a direct response to the ongoing conflict with Iran, which has disrupted one of the world's most important energy routes.
The UAE wants to bypass a key bottleneck
Abu Dhabi National Oil Company, the state-owned oil giant, is responsible for the project.
The company is building a new pipeline leading to the port of Fujairah on the Gulf of Oman, which will allow it to transport oil without having to pass through the endangered strait.
The existing infrastructure is already operational
The UAE already has a pipeline with a capacity of approx 1.5 million barrels per daywhich connects the oil fields in the desert with the eastern seaboard.
This system, which has been in operation for over a decade, became a key export during the war in the Middle East.
Despite its role, the current infrastructure has limits – what it can handle less than half of ADNOC's standard exports. This is why the UAE decided to expand the system and increase its capabilities, writes Bloomberg.
