- The third pipeline could also be made available to other oil companies for transporting their supplies.
The United Arab Emirates is considering building a third crude oil export pipeline to bypass the Strait of Hormuz, as part of a broader effort to reduce its dependence on the strategic waterway and protect oil shipments from potential disruptions, Bloomberg reported.
The proposed project is being considered by Abu Dhabi National Oil Company (ADNOC) and will extend from the UAE’s western coast to the eastern port of Fujairah, allowing crude exports to reach international markets without passing through the Strait of Hormuz. The pipeline could also be made available to other oil companies for transporting their supplies.
The proposed line will complement ADNOC’s existing pipeline network and another pipeline expected to become operational next year, significantly increasing the country’s capacity to export crude through routes that avoid the strait.
At the end of October, ADNOC informed some Asian refineries that part of its offshore crude supplies could be delivered through a new pipeline from early 2027, providing further indications of the project’s expected timeline, according to Bloomberg sources familiar with the matter.
The UAE’s largest oil producer is considering supplying some of its Upper Zakum crude, produced from offshore fields in the Arabian Gulf, to long-term customers through Fujairah during the first months of 2027. The supplies would be delivered under annual contracts, allowing buyers to receive crude without requiring tankers to transit the Strait of Hormuz.
ADNOC announced in May that it was accelerating construction of the new pipeline, targeting completion within the following year, although it did not disclose further details.
The additional pipeline capacity is expected to double ADNOC’s ability to transport crude outside the Strait of Hormuz, supporting the UAE’s longer-term objective of reducing and eventually eliminating its dependence on the waterway for oil exports.
ADNOC currently operates a pipeline carrying Murban crude from onshore oilfields to Fujairah. However, offshore grades such as Upper Zakum are generally sold through tenders, with shipments traditionally requiring passage through the Strait of Hormuz before reaching export points outside it.
Alternative export routes have become increasingly important for Gulf oil producers amid regional tensions and security risks. Saudi Arabia also operates a pipeline system that provides an alternative route for crude exports during periods of disruption.
