The United Arab Emirates (UAE) has decided to accelerate construction of the West-East Pipeline project following a directive from Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. The project, led by the Abu Dhabi National Oil Company (ADNOC), is expected to be operational by 2027. The new pipeline will double the UAE's capacity to export crude oil through the port of Fujairah, bypassing the Strait of Hormuz.
The UAE already has the Abu Dhabi Crude Oil Pipeline (ADCOP), a 380-kilometer pipeline running from Habshan, an oil and gasfield in southwestern Abu Dhabi, to the port of Fujairah. This pipeline, which became operational in 2012, has a capacity of approximately 1.5 million barrels of oil per day. The existing ADCOP pipeline can carry up to 1.8 million barrels per day and has proven crucial for the UAE's ability to export directly from the Gulf of Oman coast. With the new project, export capacity through Fujairah will double by 2027, significantly reducing the UAE's dependence on the Strait of Hormuz.
The acceleration of the project comes at a time when global energy supplies remain under pressure, flows through the Strait of Hormuz are severely limited, and repeated attacks on energy infrastructure have curtailed the UAE's ability to restore normal production levels. While approximately one-fifth of the world's oil previously passed through the Strait of Hormuz, Iran's new maritime protocol in the waterway and attacks on energy infrastructure have forced Gulf nations to find alternative trade routes. The UAE and Saudi Arabia are the only two Gulf producers with pipelines that export crude outside the Strait of Hormuz.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan called for faster delivery of the pipeline during an ADNOC executive committee meeting to meet rising global energy demand, emphasizing that the company is "well positioned with the operational flexibility to responsibly increase production to meet market needs when export constraints allow." The project comes shortly after the UAE's exit from OPEC, a move that freed the country from production quotas and allows it to pursue higher output capacity. ADNOC is targeting 5 million barrels per day production capacity, with potential to increase to 6 million barrels per day if needed.
Fujairah and the nearby port of Khor Fakkan have emerged as lifelines, including for non-oil trade as the UAE relies heavily on food imports. Several attacks attributed to Iran by the UAE forced temporary halts to oil loadings at Fujairah in April. Note: This summary draws on SupplyChainBrain's publicly visible headline + subhead + opening paragraph and on sector background on Strait of Hormuz pipeline infrastructure.
Key Takeaways:
1. UAE is fast-tracking the West-East Pipeline project to bring a second oil pipeline bypassing the Strait of Hormuz online by 2027
2. The new pipeline will double export capacity through Fujairah port; existing ADCOP pipeline can carry 1.8 million barrels per day
3. UAE and Saudi Arabia are the only two Gulf producers with pipelines that export crude outside the Strait of Hormuz
4. ADNOC targets 5-6 million barrels per day production capacity, enabled by UAE's recent exit from OPEC
5. Fujairah port has become a critical lifeline for oil and food imports but faces attacks attributed to Iran
