UAE Oil Pipeline Project Reaches Nearly 50 Percent Completion
The head of the UAE's state oil company stated the second west-east pipeline is nearly half finished and on track for 2027. The project aims to expand export capacity through Fujairah on the Gulf of Oman.
zerohedge.comSultan 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. S. Central Command stated in an April 12 statement that American forces would blockade vessels entering or leaving Iranian ports beginning April 13. 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.
Key Facts
Story Timeline
5 events- May 22, 2026
U.S. Secretary of State Rubio met with NATO Secretary-General Mark Rutte in Sweden.
1 sourcezerohedge.com - May 21, 2026
U.S. Secretary of State Rubio said an Iranian tolling system would be unacceptable.
1 sourcezerohedge.com - May 20, 2026
Sultan Ahmed Al Jaber said the UAE pipeline is almost 50 percent complete.
1 sourcezerohedge.com - May 20, 2026
Iran's PGSA defined a maritime supervision area covering parts of the Strait of Hormuz.
1 sourcezerohedge.com - April 28, 2026
The UAE announced it would leave OPEC effective May 1.
1 sourcezerohedge.com
Potential Impact
- 01
UAE export capacity through Fujairah could increase once the pipeline is finished.
- 02
Vessels may face new permit requirements when crossing the Strait of Hormuz.
- 03
Negotiations between the U.S. and Iran could be affected by the proposed toll system.
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