The United Arab Emirates has announced that its new oil pipeline, designed to bypass the Strait of Hormuz, is nearly 50% complete. The project forms part of a broader strategy to safeguard crude exports from regional disruptions.
The Strait of Hormuz handles a significant share of global oil shipments. The alternative route reduces UAE exposure to any future closure.
On Wednesday, Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Co.(ADNOC), said that “Right now, too much of the world’s energy still moves through too few chokepoints,” in an interview at the Atlantic Council.
According to officials, this project will enable the UAE to transport its oil directly to export terminals without passing through the Gulf. This will ensure an uninterrupted supply despite any tension or disruptions that may arise. This has become increasingly necessary amid growing fears of energy insecurity across the regions.
This project is becoming increasingly important amid the ongoing tensions in the Gulf region. There is a need for such an alternative, as the risks involved in shipping are also increasing. Once completed, the pipeline is expected to stabilize the export flows from the UAE and provide assurances to world markets.
Al Jaber further explained, “This is not just an economic problem. In fact, this sets a dangerous precedent once you accept that a single country can hold the world’s most important waterway hostage.”
Moreover, this project will help improve the UAE's standing as a dependable energy supplier, especially to Asia and Europe, which rely heavily on Middle Eastern oil. The UAE has been making significant investments in infrastructure to improve the resilience of the country's energy market.