Introduction 1- The UAE seeks to complete an oil export pipeline away from the Strait of Hormuz
To add details and background
May 15 (Reuters) - The United Arab Emirates will accelerate the construction of a new oil pipeline aimed at doubling the export capacity of Abu Dhabi National Oil Company (ADNOC) through the emirate of Fujairah by 2027 , the Abu Dhabi Media Office said on Friday, in a project that would significantly expand its ability to bypass the Strait of Hormuz.
The office stated that Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed ADNOC to expedite the implementation of the West-East 1 pipeline project during a meeting of the company's board of directors' executive committee. It added that the pipeline is under construction and is expected to begin operations in 2027.
The company did not disclose the original timeline for the project.
The Abu Dhabi Crude Oil Pipeline (ADCOP) , also known as the Habshan-Fujairah pipeline, has a capacity of up to 1.8 million barrels per day. This pipeline has proven crucial as the country seeks to increase exports directly from the Gulf of Oman coast.
The UAE and Saudi Arabia are the only two Gulf producers that have pipelines to export crude oil away from the Strait of Hormuz, while Oman has a long coastline on the Gulf of Oman.
Iran effectively closed the Strait of Hormuz in response to the war launched by the United States and Israel on February 28, cutting off about one-fifth of the world’s oil supplies that normally flowed through the strait to Asia and other regions before the war.
Kuwait, Iraq, Qatar and Bahrain rely almost entirely on the strait to ship their goods.
Energy prices have risen sharply as a result of supply disruptions, prompting governments to ration fuel consumption and raising fears of an economic recession coupled with rising inflation.