A 406 kilometers proposed pipeline from Abu Dhabi to Fujairah would bypass the Strait of Hormuz and allow the UAE to double its export capacity outside the Gulf’s waters. Abu Dhabi’s crown prince has approved plans to accelerate the expansion work, with the new 406-kilometer (252-mile) link expected to come online in 2027 — the existing line carries 1.5 million barrels a day of crude to the Gulf of Oman. The additional capacity comes as the UAE, no longer subject to OPEC quotas after leaving the cartel at the start of May, plans to boost its output to 5 million barrels a day next year.
The project is part of a broader revamping of Gulf logistics and energy routes. Saudi Arabia has expanded trade corridors, while Iraq and Syria are reviving pipeline plans that could allow more Gulf oil and gas to flow to the Mediterranean — projects that were politically unfeasible just two years ago. For ADNOC, the extra capacity from its new pipeline will also allow it to export grades such as Upper Zakum, which are in high demand because of their quality, Bloomberg reported.