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May 15, 2026
Analyzed by GPT OSS 120B

UAE to Fast‑Track Second Oil Pipeline Bypassing Strait of Hormuz by 2027

AI Summary
The United Arab Emirates will fast‑track a second oil pipeline that bypasses the Strait of Hormuz, aiming for operation by 2027. The new line is expected to double the country’s export capacity and insulate its crude shipments from regional disruptions, coming weeks after the UAE exited OPEC.

United Arab Emirates announced a fast‑track plan for a second oil pipeline that will route crude around the Strait of Hormuz, targeting first oil flow by 2027. The move follows the UAE’s recent departure from OPEC and aims to safeguard export volumes amid ongoing regional tensions.

Fast‑Tracking a New Bypass Pipeline to Fujairah

Directed by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the state oil company will accelerate construction of a previously undisclosed line that will carry oil from the interior to the port of Fujairah on the Gulf of Oman. The project is designed to operate alongside the existing Habshan‑Fujairah corridor.

Doubling Export Capacity: Numbers and Projections

  • Existing Habshan‑Fujairah pipeline: up to 1.8 million barrels per day
  • New pipeline expected to double capacity, potentially reaching 3.6 million barrels per day
  • Current Strait of Hormuz blockage has halted roughly 20 % of global oil and seaborne gas
  • UAE is the third‑largest OPEC producer, poised to exceed future OPEC quotas once the new line is online

Strategic Implications for Gulf Oil Markets and OPEC Relations

The bypass reduces reliance on the narrow waterway that Iran can disrupt, giving the UAE a strategic edge over rivals that still depend on Hormuz. It also highlights the growing rift between Abu Dhabi and Saudi Arabia, whose production‑quota‑driven strategy contrasts with the UAE’s push for higher export volumes after leaving OPEC.

Future Outlook: UAE Oil Strategy After the Pipeline Completion

With the pipeline slated for completion by 2027, the UAE can sustain or increase crude shipments even if the Hormuz conflict persists, positioning itself closer to Saudi export levels of roughly 7 million barrels per day. Analysts expect the enhanced capacity to attract long‑term contracts and reinforce the UAE’s role as a reliable oil supplier in a volatile region.