UAE Oil Pipeline Project Reaches Nearly 50 Percent Completion

Sultan Ahmed Al Jaber, chief executive of the Abu Dhabi National Oil Company, said during an interview at the Atlantic Council that the UAE's second west-east pipeline is almost 50 percent complete. The project is being accelerated toward a planned 2027 completion date.

Al Jaber said the pipeline is intended to reduce reliance on the Strait of Hormuz. The UAE announced last week that it would speed up construction to increase export capacity through Fujairah.

The country's existing Abu Dhabi Crude Oil Pipeline already allows some exports to bypass the strait. The new pipeline is expected to expand that capacity significantly. Al Jaber said global energy systems remain vulnerable because too much oil and gas infrastructure depends on narrow maritime chokepoints. He noted that the world drew down around 250 million barrels from storage in two months.

The pipeline expansion comes as the Strait of Hormuz remains disrupted following months of conflict involving Iran, Israel, and the United States. Iran announced in May the creation of the Persian Gulf Strait Authority to supervise transit through the waterway.

The authority said on May 20 that vessels operating within a defined area must coordinate transit frequencies and obtain permits from Iranian authorities before crossing. U.S. Central Command stated in an April 12 statement that American forces would blockade vessels entering or leaving Iranian ports beginning April 13.

U.S. Secretary of State Marco Rubio said on May 21 that an Iranian tolling system would be unacceptable. He said after meeting with NATO Secretary-General Mark Rutte in Helsingborg, Sweden, on May 22 that Western allies hope to reach an agreement with Iran that would reopen the strait.