The United Arab Emirates is evaluating a third oil-export pipeline that would route crude outside the Strait of Hormuz, aiming to sharply cut reliance on the strategic waterway. Abu Dhabi National Oil Co. (Adnoc) is considering a line from the UAE’s western coast to the eastern port of Fujairah, which could be open to third‑party use and complement existing and upcoming conduits scheduled for next year. While Adnoc says the report is speculative, the company has been discussing the project with Asian customers. The UAE, which left OPEC in May, is investing heavily in new pipelines, rail, road networks and expanding eastern ports to achieve zero dependence on Hormuz. Adnoc already operates a 2‑million‑bbl/day pipeline to Fujairah and is fast‑tracking a second line to double capacity by 2027. Regional rivals Saudi Arabia and Kuwait are also pursuing bypass options, though security risks persist, as seen by attacks on Fujairah and temporary shutdowns of Saudi’s East‑West pipeline. The moves reflect broader efforts to safeguard oil flows amid heightened tensions with Iran.
Adnoc, 2 million bbl/day, Fujairah, Saudi Arabia, Kuwait
Source: Bloomberg Markets · Summarized by HeadlinesBriefing