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New Pipeline Doubles UAE Oil Export Capacity
15 May
Summary
- UAE completes new oil pipeline bypassing Hormuz by 2027.
- Project expected to double export capacity to 3.6m barrels daily.
- UAE exited Opec, signaling strategic shift in oil policy.
The United Arab Emirates is accelerating plans for a new oil pipeline designed to circumvent the Strait of Hormuz, with completion anticipated by 2027. This strategic infrastructure project aims to guarantee the uninterrupted flow of the nation's crude exports.
Directed by Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the UAE state oil company is prioritizing this pipeline. It is projected to significantly increase export capacity, potentially doubling it to 3.6 million barrels per day.
This development occurs shortly after the UAE's withdrawal from Opec after six decades of membership. This move signals a divergence from Saudi Arabia's influence within the cartel and allows the UAE greater flexibility in its production levels.
The pipeline's strategic importance is amplified by the ongoing threats to maritime trade through the Strait of Hormuz. It offers a secure alternative route to the port of Fujairah on the Gulf of Oman.
