The United Arab Emirates (UAE) is fast-tracking a major west-east oil pipeline expansion aimed at bypassing the Strait of Hormuz amid escalating regional tension and disruption to global energy supplies.
UAE Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan said on Friday that the project would double the country’s export capacity and help meet global demand.
The pipeline, expected to become operational in 2027, will complement the Abu Dhabi crude oil pipeline, which transports 1.8 million barrels a day from Habshan in Abu Dhabi to the eastern port of Fujairah along the Gulf of Oman.
The move comes as the Strait of Hormuz remains heavily restricted after Iran blockaded it following US and Israeli attacks on the country on 28 February.
Completed in 2012, the Abu Dhabi crude oil pipeline has become a strategic export route for the UAE during the conflict. The infrastructure has reportedly also come under attack from Iran.
With one of the world’s most critical oil chokepoints under severe pressure, conveying 20% of global oil, Abu Dhabi aims to significantly increase crude exports through Fujairah, bypassing the strait.
The initiative is aimed at meeting global demand and ensuring UAE trade resilience during geopolitical conflicts.
The UAE oil pipeline expansion could also have significant implications for South Africa, which remains exposed to global oil price volatility and shipping disruptions associated with the Strait of Hormuz.
Prolonged instability in the corridor could place additional pressure on fuel prices, import costs and inflation across African economies that rely on Gulf energy supplies.
Sheikh Khaled chaired a meeting of the executive committee of the Abu Dhabi National Oil Company (Adnoc) board, where officials reviewed the pipeline expansion and progress on the TA’ZIZ chemicals ecosystem in Al Ruwais Industrial City.
During the Friday meeting, Sheikh Khaled said Adnoc remained “well-positioned as a responsible and reliable global energy producer, with the operational flexibility to increase production “to meet market needs when export constraints allow”.
He directed Adnoc to accelerate delivery of the west-east pipeline project as the company enters “a new phase of world-scale project execution”. Adnoc has been reported to be in an advanced stage in its negotiations to buy Shell’s 600 petrol stations in South Africa, worth $1 billion (about R17bn).
The UAE relies on the Habshan-Fujairah pipeline to transport up to 1.8 million barrels of crude oil a day. The route has become increasingly important as the Strait of Hormuz faces mounting instability.
Iran has claimed control over access to the Hormuz waterway and threatened to impose tolls and restrictions on vessels linked to allied countries. UAE energy infrastructure has also faced attacks, including drone strikes that caused fires at facilities in Fujairah and at the Barakah nuclear power plant.
The US has sought to establish initiatives to reopen the passage, while President Donald Trump has issued warnings to Iran over the deadlock. Reports indicate that some foreign vessels, including Chinese cargo ships, have resumed transit through the strait under newly imposed Iranian protocols.
In a statement, the UAE ministry of foreign affairs said all measures taken by the country were “within the framework of defensive actions aimed at protecting its sovereignty, civilians and vital infrastructure”.
The ministry added that the UAE reserved its “full sovereign, legal, diplomatic and military rights” to respond to threats or hostile acts.
The project is expected to complement the existing oil pipeline of 1.8 million barrels a day to meet global demand