UAE accelerates pipeline project to ship oil around the Strait of Hormuz instead of through it
The United Arab Emirates is bringing forward construction on a pipeline project that would route its crude oil exports around the Strait of Hormuz instead of through it. ADNOC said the expansion of the Habshan-Fujairah corridor will be accelerated for the duration of the Iran war. The move puts the fragility of global oil supply routes back at the centre of the conversation.
ADNOC, the United Arab Emirates' state oil company, has announced that it is accelerating the expansion of pipeline capacity linking its crude production to the port of Fujairah, on the south side of the Strait of Hormuz. The existing Habshan-Fujairah link provides overland access to the Sea of Oman and removes the need to navigate the narrow stretch along Iran's coastline.
As the Iran war moves into its third month, navigation restrictions through the Strait of Hormuz and historically high insurance premiums on regional shipping have settled into a longer-running pattern. ADNOC said an initial capacity boost will come from upgrading existing pumping stations, with later phases potentially adding new pipeline strings and storage facilities. Crews are being deployed on extended shifts to compress the schedule.
Analysts say the move could affect global markets in two directions. In the short term, it builds a partial 'insurance route' that reduces dependence on Hormuz. Over time, similar projects in Saudi Arabia and Iraq are likely to be accelerated; Saudi Arabia's East-West pipeline is also reportedly under review for expanded throughput.
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