The United Arab Emirates (UAE) has announced that a new oil pipeline bypassing the Strait of Hormuz will be completed by next year. The project has been fast-tracked to mitigate the risk of future oil export disruptions, according to a report by The Guardian.

Prior to the outbreak of the war involving Iran, nearly 20 percent of the world’s petroleum and seaborne liquefied natural gas passed through the Strait of Hormuz.

The ongoing blockade of this vital waterway has now entered its 11th week, driving up global energy prices and straining Gulf economies.

In response, Abu Dhabi’s Crown Prince, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, has directed the UAE’s state-owned oil company to expedite the completion of the project.

According to the plan, the new pipeline will begin transporting oil across the UAE to the Port of Fujairah by 2027.

The new pipeline is expected to double the export capacity of the existing Habshan-Fujairah pipeline.

Currently, the operational infrastructure can transport a maximum of 1.8 million barrels of oil per day (bpd) to the Port of Fujairah on the Gulf of Oman.

Strategic Shift Following Regional Conflict
Tehran blocked tanker traffic through the Strait of Hormuz shortly after the United States and Israel launched strikes on Iran on February 28.

Since then, pipelines have become absolutely critical for the UAE to maintain its oil exports.

The UAE and Saudi Arabia are the only oil producers in the Gulf region with pipeline infrastructure capable of exporting crude oil outside the narrow waterway between Iran and Oman.

The decision to accelerate the construction of the second pipeline comes just weeks after the UAE exited OPEC.

Ending its 60-year membership in the alliance is widely seen as a clear indicator of growing rifts with Saudi Arabia, the de facto leader of the oil cartel.

By leaving the alliance, the UAE could position itself to exceed production quotas and pump more oil once the conflict ends and normal trade resumes in the Strait of Hormuz.

However, the new pipeline will ensure that even if the conflict drags on—or if future peace frameworks fail to guarantee the unrestricted tanker movement previously seen in the Strait of Hormuz—the UAE can press ahead with its plans to scale up oil exports.

The UAE’s departure from OPEC also underscores long-standing tensions between Abu Dhabi and Riyadh; Saudi Arabia typically favors strict production caps to sustain high oil prices and fund its domestic economic agendas.

While the exact capacity of the second pipeline has not yet been disclosed, doubling the current infrastructure to reach 3.6 million bpd would bring the UAE's pipeline-based export capacity closer to that of Saudi Arabia.

Saudi Arabia can transport approximately 7 million bpd from its eastern oilfields to the Red Sea port of Yanbu, of which around 5 million bpd is exported.
Source: The Guardian