Capacity of UAE oil export route significantly expanded
United Arab Emirates' oil export route capacity to be accelerated. The UAE wants to double the capacity of the important Habshan-Fujairah pipeline as early as 2027 to reduce its dependence on the Strait of Hormuz.
Middle East tensions and shipping disruptions are increasing pressure on alternative energy routes. The pipeline towards Fujairah plays an increasingly important role in this regard.
Oil export route capacity should reduce dependence
The Habshan-Fujairah pipeline transports oil from Abu Dhabi to the port of Fujairah on the Gulf of Oman. This allows oil to be exported without using the Strait of Hormuz.
Currently, the infrastructure transports about 1.5 million barrels of oil per day. With the expansion, the United Arab Emirates aims to double this capacity.
The expansion was previously planned, but energy company Adnoc is speeding up implementation due to geopolitical tensions and the vulnerability of the current shipping lanes.
Did you know...
...the Strait of Hormuz is normally one of the world's main export corridors for oil and gas?
Oil export route capacity remains vulnerable
Although the pipeline offers an alternative to transport by sea, even this infrastructure remains vulnerable to attack. In the region, pipelines and energy installations have previously been targeted by drones and missiles.
The port of Fujairah, the terminus of the route, was recently damaged by attacks. Yet the pipeline itself remained operational.
The situation underlines how important alternative logistics and energy routes have become in the Middle East.
Oil export route capacity part of larger strategy
The United Arab Emirates is increasingly investing in national energy interests. Last month, the country announced its exit from Opec to gain more freedom in its own production and export strategy.
Adnoc wants to increase oil production to 5 million barrels a day next year. For this, a reliable export infrastructure is essential.
Meanwhile, the situation in the Middle East remains unstable. New attacks and difficult negotiations between the United States and Iran mean that uncertainty around the Strait of Hormuz remains high.
Read more about international energy flows and logistics routes on the sea freight page.
The expansion of the capacity oil export route shows how countries in the Gulf region are preparing for a prolonged period of geopolitical uncertainty.