The United Arab Emirates will fast-track its new West-East Pipeline to double oil export capacity through the Port of Fujairah by 2027, a strategic move to ensure supply continuity amid major disruptions in the Strait of Hormuz.
The directive to accelerate the project was issued by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed during a meeting of the ADNOC board's executive committee, the Abu Dhabi Media Office said on Friday.
The new pipeline will supplement the existing Abu Dhabi Crude Oil Pipeline (ADCOP), which has a capacity of 1.8 million barrels per day. The expansion aims to double this capacity, though a final number has not been disclosed. The project is currently under construction and is now slated to become operational in 2027.
This acceleration is critical as the Strait of Hormuz, a chokepoint for about a fifth of global oil supplies, was recently closed, causing a surge in energy prices. The pipeline allows the UAE to export crude directly from its Gulf of Oman coast, de-risking its energy exports from geopolitical tensions. The UAE and Saudi Arabia are the only Gulf producers with pipelines that bypass the strait.
The pipeline is part of a broader strategy by the Abu Dhabi National Oil Company (ADNOC) to enhance its market position and boost the local economy. During the committee meeting, Sheikh Khaled reviewed progress in the TA’ZIZ Phase 1 chemicals ecosystem in Al Ruwais Industrial City.
The TA’ZIZ project is set to produce 4.7 million tonnes per annum of industrial chemicals by the end of 2028, making it one of the largest integrated chemical platforms in the region. ADNOC also reiterated its commitment to the In-Country Value (ICV) program, directing the company to prioritize 'Made in the Emirates' products across its operations.
This article is for informational purposes only and does not constitute investment advice.
