The United Arab Emirates on Friday announced that it will accelerate construction of a new oil pipeline to double crude export capacity through its Fujairah port, bypassing the Strait of Hormuz, as tensions around the key waterway remain high.
What happened: Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed instructed the state-owned Abu Dhabi National Oil Company (ADNOC) to fast-track the project, the West-East Pipeline, during an executive meeting of the company’s board of directors held in the Emirati capital on Friday, the Abu Dhabi government media office said in a statement.
According to the statement, Sheikh Khaled, who also chairs the Abu Dhabi Executive Council, was updated on the progress of the project, which the statement said will double ADNOC’s export capacity through the port of Fujairah, located on the UAE’s eastern shore, on the Gulf of Oman.
The statement said construction of the pipeline was underway, though it did not specify when works began or the projected cost of the project. It added that the pipeline will become operational in 2027.
Why it matters: The new pipeline will link UAE export hubs in the west to Fujairah, becoming the second corridor to transport crude oil to the key port there for shipment through the Gulf of Oman.
