UAE to double oil export capacity bypassing Strait of Hormuz by 2027

The United Arab Emirates will double its oil export capacity bypassing the Strait of Hormuz by 2027, according to a statement from the emirate’s media office. Abu Dhabi National Oil Co. (Adnoc) is constructing a new pipeline to the port of Fujairah on the Gulf of Oman, building on an existing 1.5 million barrel-a-day pipeline that has operated for over a decade. The expansion aims to reduce dependency on the Strait of Hormuz, a critical but vulnerable shipping route that has been disrupted by the Iran war. The conflict has forced Iran to block most vessels from transiting the strait, which previously carried about 20% of global oil and gas supplies. The current pipeline, though operational, can only handle less than half of Adnoc’s normal export volumes. The UAE and Saudi Arabia remain the only major Gulf producers capable of shipping significant crude volumes despite the blockade. Both countries’ state oil companies have managed to export some cargoes in recent weeks, circumventing Iranian restrictions. The Fujairah port, located on the UAE’s eastern coast, has become a lifeline for oil exports during the conflict. The expansion project will enhance the UAE’s ability to maintain stable oil supplies globally, even as geopolitical tensions persist in the region. Adnoc’s move highlights the growing strategic importance of alternative export routes amid rising risks in traditional shipping corridors. The project is expected to be completed by 2027, reinforcing the UAE’s role as a key player in global oil markets.