The United Arab Emirates accelerated plans for a second major crude oil pipeline to Fujairah on May 18, 2026. This project creates a reliable alternative to the volatile Strait of Hormuz. Officials now target a 2027 completion date for the infrastructure.
The decision follows weekend drone strikes on the Barakah nuclear plant. Escalating regional conflict has virtually closed the Strait of Hormuz.
The project will nearly double the nation's bypass capacity to over 3.3 million barrels per day. ADNOC aims to ensure oil production reaches global markets in Asia without passing the Iranian-controlled chokepoint. The pipeline strengthens UAE geopolitical leverage following its recent exit from OPEC.
Brent crude prices remain elevated above $110 per barrel due to regional instability.