The United Arab Emirates will double its crude oil export capacity that bypasses the Strait of Hormuz. State-owned Abu Dhabi National Oil Co. (ADNOC) is accelerating construction of a new pipeline to the port of Fujairah. The project aims for completion by 2027.
The expansion targets the Gulf of Oman to avoid a chokepoint where 20% of global oil flows. ADNOC currently operates a 1.5 million barrel-a-day conduit to Fujairah. This existing route maintains exports while conflict disrupts the primary Hormuz passage.
The strategy aims to de-risk energy exports and ensure long-term supply stability. Increased bypass capacity may lower the geopolitical risk premium in global oil prices. Reliable delivery provides a competitive advantage for UAE production.