Abu Dhabi is expediting the construction of a new West-East pipeline to Fujairah, aiming to enhance its oil export capacity and circumvent the strategic Strait of Hormuz, a critical chokepoint for oil shipments. This pipeline is projected to become operational by 2027 and will effectively double the export capacity of the Abu Dhabi National Oil Company (ADNOC).
The urgency of this project arises from ongoing global energy supply pressures, limited flow through the Strait of Hormuz, and recent attacks on energy infrastructure that have hindered the UAE's ability to maintain normal oil production levels.
Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan emphasized the need for accelerated delivery of the pipeline to address increasing global energy demands, asserting that ADNOC is positioned to responsibly boost production when export limitations permit.
The UAE's recent decision to exit OPEC, a group it had been part of since 1967, underscores its commitment to expanding production capacity through ADNOC. Prior to the conflict, the UAE's oil production was slightly above 3 million barrels per day, aligning with OPEC+ targets, but current output has dropped to between 1.8 and 2.1 million barrels per day due to the war.
The existing Abu Dhabi Crude Oil Pipeline (Adcop), also known as the Habshan-Fujairah pipeline, is the only operational pipeline that allows the UAE to export oil outside the Strait of Hormuz, with a capacity of 1.8 million barrels