UAE almost 50% completes oil pipeline bypassing Strait of Hormuz

The United Arab Emirates (UAE) is almost 50% complete with an oil pipeline that bypasses the Strait of Hormuz, which has been blocked since the start of the war against Iran.

This was announced by the CEO of the Abu Dhabi National Oil Company (ADNOC), Sultan Ahmed al-Jaber, CNBC reports.

The new pipeline will accelerate ADNOC's export capabilities through the port of Fujairah, which is located on the coast of the Gulf of Oman. Construction was accelerated due to the consequences of the war in Iran. It is expected to begin operating in 2027.

After the start of the war, Iran blocked shipping in the Strait of Hormuz, blocking oil and gas exports from the Persian Gulf countries, including the UAE. ADNOC has redirected some supplies to Fujairah, but the current pipeline capacity is only 1.8 million barrels per day.

According to al-Jaber, more than 1 billion barrels of oil have been lost due to the closure of the Strait of Hormuz. He added that almost 100 million barrels are lost every week while the strait remains closed.

He noted that even if the conflict ends immediately, it will take at least four months to increase oil volumes to 80% of normal levels. According to him, it will take until the first or second quarter of 2027 to fully normalize oil supplies.

As Ukrainian News Agency earlier reported, on April 28 of this year, UAE Energy Minister Suhail Mohamed Al Mazrouei announced that the country was leaving the Organization of the Petroleum Exporting Countries. It has been a member of the cartel since 1967.