UAE Accelerates New Oil Pipeline to Bypass Strait of Hormuz as Energy Security Risks Intensify
The United Arab Emirates is rapidly advancing construction of a second crude oil pipeline designed to bypass the strategically vital Strait of Hormuz, with the project now nearly 50% complete, according to the chief executive of Abu Dhabi National Oil Company (ADNOC).
Speaking during an interview at the Atlantic Council on Wednesday, ADNOC CEO Sultan Ahmed Al Jaber warned that global energy markets remain heavily dependent on a limited number of maritime chokepoints.
“Right now, too much of the world’s energy still moves through too few chokepoints,” Al Jaber said.
The new export pipeline will significantly expand the UAE’s crude oil export infrastructure by doubling ADNOC’s export capacity through Fujairah, a major UAE energy hub located on the Gulf of Oman outside the Strait of Hormuz. The Fujairah route is viewed as a critical alternative shipping corridor for global oil and energy trade.
The project has reportedly been fast-tracked following the ongoing Iran conflict and the continued closure of the Strait of Hormuz. ADNOC expects the new pipeline to become operational in 2027.
The UAE is already redirecting part of its crude exports through an existing Fujairah pipeline system, which currently has a maximum export capacity of 1.8 million barrels per day.
Al Jaber described Iran’s blockade of the Strait of Hormuz as the most severe disruption to global energy supply chains in modern history. According to him, more than 1 billion barrels of oil have already been lost due to the closure, while almost 100 million additional barrels are being removed from global supply every week the waterway remains blocked.
He further stated that even if the conflict were resolved immediately, restoring oil flows to 80% of normal levels would take at least four months. Full normalization of global crude oil shipments may not occur until the first or second quarter of 2027.
“This is not just an economic problem,” Al Jaber said. “In fact, this sets a dangerous precedent once you accept that a single country can hold the world’s most important waterway hostage.”
The Strait of Hormuz remains one of the world’s most critical maritime energy chokepoints, handling a significant share of global oil exports and LNG shipments. The waterway has been blocked since Iran imposed restrictions on shipping traffic after large-scale airstrikes against Iran were launched by the United States and Israel on February 28.
Last week, Chris Wright said the strategic importance of the Strait of Hormuz to global energy markets could gradually decline after the conflict as Gulf nations invest in new export infrastructure and alternative energy transport routes.
“This is a card you can play once,” Wright said regarding Iran’s blockade strategy. “There’ll be other routes for energy to get out of the Persian Gulf.”
“We will see a decreasing importance from the Strait of Hormuz, but not a decreasing importance of those nations’ energy production and energy supply,” he added.
