UAE set to accelerate new oil pipeline project to help bypass Strait of Hormuz
The pipeline is already under construction but the latest decision by the UAE is to accelerate said project in order to become operational in 2027. The Crown Prince of Abu Dhabi met with the executive committee of the ADNOC board of directors and directed to accelerate delivery of the project.
For some context, the UAE's total production capacity is roughly 4.5 million bpd. But with the Strait of Hormuz now in de facto closure, they can only use the Fujairah pipeline to get oil exports out. However, that is only limited to around 1.9 million bpd at best even if running at maximum capacity.
So, they are still facing troubles currently in that there is nearly 2.6 million bpd unable to be exported. And not only that, it is worth reminding that the existing pipeline can only carry crude oil. Other refined products such as petrol and diesel still have no alternative routes and remain stranded.
The new pipeline under construction is expected to double the existing one and bring the export capacity through Fujairah to nearly 4 million bpd.
And with the US-Iran situation potentially dragging on for much longer, the UAE isn't waiting around to find out and are pushing to try and make their own solution by some time next year.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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