UAE’s New West-East Crude Pipeline Bypassing Hormuz Nearly 50% Complete

The United Arab Emirates said its new oil pipeline designed to bypass the Strait of Hormuz is now nearly 50% complete, as the country moves to protect crude exports from ongoing disruption in one of the world’s most important shipping routes.

Speaking at an Atlantic Council event on Wednesday, ADNOC CEO Sultan Ahmed Al Jaber said the new West-East pipeline is being accelerated towards a planned 2027 completion date.

The pipeline will increase the UAE’s ability to export oil through Fujairah on the Gulf of Oman, outside the Strait of Hormuz.

The pipeline expansion comes after months of severe disruption to regional shipping and energy flows following Iran’s blockade of Hormuz after U.S.-Israeli strikes on February 28.

The waterway carries a major share of the world’s seaborne crude and LNG exports, making any prolonged closure a direct threat to global energy markets, tanker operations and supply chains.

“Too much of the world’s energy still moves through too few choke points,” Al Jaber said, explaining why the UAE had invested in infrastructure outside Hormuz.

The UAE already operates the Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, which can carry up to 1.8 million barrels of crude oil per day to Fujairah.

The new pipeline is expected to double ADNOC’s export capacity through the Gulf of Oman port once operational.

Al Jaber said the new pipeline is “almost 50% complete” and that construction was being fast-tracked after directions from Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

Iran has largely limited movement through Hormuz to its own ships since March, reducing oil exports from Gulf producers and forcing countries to depend more on alternative export routes.

The disruption has pushed oil prices higher and raised concerns over inflation and global economic growth.

Al Jaber described the Hormuz blockade as the worst energy supply disruption in history. He said more than 1 billion barrels of oil had already been lost because of the closure, while nearly 100 million more barrels are being lost every week the Strait remains shut.

According to Al Jaber, even if the conflict ended immediately, oil flows would take at least four months to recover to 80% of normal levels. Full recovery may not happen before the first or second quarter of 2027.

The UAE has also faced direct attacks during the conflict. Al Jaber said the country had been targeted by more than 3,000 missiles and drones aimed at civilian infrastructure, including ADNOC facilities.

Some damaged operations may take weeks or months to fully restore.

The conflict has increased concerns about shipping security and freedom of navigation in the Gulf region.

Iran has previously attacked vessels around the Strait of Hormuz, while the United States has tried to reopen the route and imposed restrictions on Iranian ports.

U.S. Energy Secretary Chris Wright said the importance of the Strait of Hormuz could decline in the future as Gulf countries develop more pipelines and export routes outside the waterway.

“This is a card you can play once,” Wright said of Iran’s blockade. “There’ll be other routes for energy to get out of the Persian Gulf.”

The UAE’s accelerated pipeline project also follows its withdrawal earlier this month from the Saudi-led OPEC alliance.

Al Jaber said the decision was linked to future global energy demand and was not aimed at damaging relations with other producers.

References: Bloomberg, Reuters