The United Arab Emirates is planning its first multi-fuel pipeline to keep refined petroleum exports flowing when the Strait of Hormuz becomes impassable. Abu Dhabi National Oil Company intends to construct a refined oil products pipeline that circumvents the strategically vital waterway, according to executive vice-president Philippe Khoury.

Transit through the strait has been severely restricted since the Iran conflict began three months ago, forcing Middle East producers to seek alternatives to Tehran-controlled shipping routes. The UAE already operates a crude oil pipeline from Habshan to Fujairah with 1.5 million barrels daily capacity, but the port has faced frequent attacks amid the ongoing hostilities.

A second crude pipeline currently under construction will double capacity to Fujairah when it begins operating early next year. The planned multi-fuel pipeline will handle gasoline, diesel and jet fuel, operating similarly to the US Colonial pipeline system that switches between refined products. This infrastructure push reflects growing concerns about regional supply chain vulnerabilities.

Around one-fifth of global oil trade normally transits the strait, which has ground to a near halt since late February. Only Saudi Arabia and the UAE possess pipeline infrastructure capable of moving oil to non-Gulf ports without cross-border transit. The UAE is also evaluating a west-east pipeline that could serve fellow Gulf producers seeking alternative export routes.