UAE plans new pipeline to bypass Hormuz and double oil exports by 2027

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The United Arab Emirates will double its capacity to export crude oil bypassing the Strait of Hormuz by 2027, as it seeks to reduce reliance on the shipping chokepoint whose closure in the Iran war has upended global markets.

Abu Dhabi National Oil Co. is building a pipeline that runs to the port of Fujairah on the Gulf of Oman, according to a statement from the emirate’s media office posted on X.

The government-owned oil company already operates a 1.5 million barrel-a-day pipeline from its desert oil fields to the port on the eastern coast, which has proven to be a lifeline for the country during the war.

That existing pipeline, which has been in operation for over a decade, has become increasingly important as Iran continues to block most vessels from transiting the Strait of Hormuz, the narrow channel through which about a fifth of global oil and gas supplies flowed before the conflict. The link, however, can carry less half of Adnoc’s normal export volumes.

The UAE and Saudi Arabia are the only major Gulf producers able to get significant quantities of crude to market during the war. State oil companies of both countries have quietly managed to ship some cargoes out of the Gulf in recent weeks, avoiding the Iranian blockade.