The CEO of Abu Dhabi National Oil Co. (ADNOC), Sultan Ahmed Al Jaber, announced that the UAE has constructed nearly half of a new pipeline designed to circumvent the Strait of Hormuz, a critical chokepoint for global energy transport.
This initiative aims to double ADNOC's export capacity through Fujairah, a port located on the Gulf of Oman, and is being expedited due to the ongoing conflict with Iran, which has blockaded Hormuz since early March.
Al Jaber highlighted that the blockade has resulted in unprecedented energy supply disruptions, with over 1 billion barrels of oil lost and an additional 100 million barrels lost weekly while the strait remains closed.
He noted that even if the conflict were to end immediately, it would take at least four months to restore oil flows to 80% of normal levels, with full normalization expected by early to mid-2027. U.S.
Energy Secretary Chris Wright remarked that the importance of the Strait of Hormuz will diminish as Gulf nations develop alternative routes for energy transport, indicating a long-term shift in the global energy landscape as a result of these geopolitical tensions