More than halfway there! The UAE's new pipeline bypasses the Strait of Hormuz.

On May 20, Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), announced at an event hosted by the Atlantic Council in the United States that the construction of the UAE's second oil pipeline bypassing the Strait of Hormuz (the East-West Crude Oil Pipeline expansion project) has reached 50% completion. The project is accelerating, with official operation expected to commence in 2027. This pipeline will double the UAE's crude oil export capacity via the Port of Fujairah, significantly reduce dependence on the Strait of Hormuz, and fortify the defenses of energy supply security.

Strategic Chokepoint Blocked, Strategic Pipeline Accelerated

The Strait of Hormuz is the global energy transport "chokepoint," handling approximately 20% of the world's oil and 20% of liquefied natural gas (LNG) transport volume. Since Iran blockaded the Strait in early March, oil shipments from the Gulf region have been severely obstructed, resulting in a cumulative loss of over 1 billion barrels of crude oil supply, with an additional loss of nearly 100 million barrels per week. Global oil inventories are being depleted at a record rate of 4 million barrels per day. The UAE's existing East-West Crude Oil Pipeline has a daily transport capacity of 1.8 million barrels and has become a critical channel for crude oil exports under the current situation.

This expansion project is a core extension of the UAE's "West-to-East Oil Transport" strategy, stretching from the Abu Dhabi oil production hub in the west to the Port of Fujairah on the coast of the Gulf of Oman in the east, bypassing the Strait of Hormuz entirely. Upon completion, the export capacity of the Port of Fujairah will double, further consolidating its status as an international oil hub and ensuring that the UAE's crude oil exports remain uninterrupted amidst regional conflicts.

Long Recovery Cycle, Reshaping Energy Landscape

Al Jaber warned that even if the conflict were to end immediately, it would take at least 4 months for oil production in the Gulf region to recover to 80% of normal levels, with full recovery not expected until the mid to late second half of 2027. He emphasized that a single waterway being "held hostage" would set a dangerous precedent, highlighting the urgency of diversifying energy transport routes.

U.S. Secretary of Energy Chris Wright stated that the global energy importance of the Strait of Hormuz will decline in the long term, and Gulf countries are accelerating the construction of alternative pipelines, making the diversification of energy export paths an inevitable trend. The UAE withdrew from OPEC in May, shedding production quota restrictions to clear obstacles for pipeline expansion and capacity release.

Currently, the global energy system is shifting from "efficiency first" to "security and resilience first." The construction of a pipeline network bypassing the Strait of Hormuz will reshape the Middle East energy trade map and provide important support for stable global energy supply.