Philip Huri, Vice President of Trading at the Abu Dhabi National Oil Company ADNOC, announced plans for this pipeline, which aims to bolster supply routes amid ongoing regional conflicts that have restricted navigation through the strait, News.Az reports, citing GuruFocus.
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Currently, the UAE relies on an existing oil pipeline from the Habshan oil field to Fujairah Port, which has reached its maximum capacity of 1.5 million barrels per day. However, the port has faced frequent attacks, disrupting operations. A second pipeline is under construction, expected to double the capacity by early next year. The upcoming multi-product pipeline, designed similarly to the U.S. Colonial pipeline, will enable flexible transportation of various refined products.
This initiative highlights the region’s over-reliance on the Strait of Hormuz for oil exports, with about 20% of global oil passing through it. The new infrastructure aims to enhance the UAE’s resilience and maintain efficient supply to global markets.
