The United Arab Emirates will double its capacity to export crude oil by bypassing the Strait of Hormuz by 2027, as part of a strategic effort to reduce reliance on the critical maritime chokepoint—currently disrupted due to the ongoing conflict in Iran.
New Pipeline Under Construction
Abu Dhabi National Oil Company (ADNOC) is building a new oil pipeline extending from the port of Fujairah on the Gulf of Oman, according to a press statement issued by the UAE’s official media office and posted on X. The project aims to significantly expand export infrastructure beyond the vulnerable Strait of Hormuz—the narrow waterway through which roughly one-fifth of global oil and natural gas supplies previously flowed.
Existing Pipeline Proves Vital
ADNOC already operates an existing 1.5-million-barrel-per-day pipeline from its desert oil fields to Fujairah port on the eastern coast—a route that has served as a lifeline for the UAE during the war. In operation for over a decade, this pipeline has grown increasingly important as Iran continues to restrict most vessel traffic through the Strait of Hormuz.
However, 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.
Gulf Exporters Holding Steady
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. Both countries’ state-owned oil companies have quietly moved several cargo shipments outside the Gulf in recent weeks, successfully circumventing the Iranian blockade.