United Arab Emirates has accelerated the construction of a strategic new oil pipeline with which it seeks to reduce its dependence on the Strait of Hormuz, one of the most sensitive points in global energy trade. The objective is to reinforce an alternative route to export crude oil without passing through this maritime bottleneck, which is key to the global oil supply.
According to Reuters, the Gulf country wants to double its oil export capacity avoiding the Strait of Hormuz by 2027, in a context marked by geopolitical instability in the region and the fear of possible disruptions to maritime traffic.
Why the Strait of Hormuz is so important
The Strait of Hormuz separates Iran from Oman and connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. A fundamental part of the oil traded in the world passes through this passage, making it a strategic infrastructure for the global economy.
Any military tension, blockade, or incident in this area can send crude oil prices soaring and affect international energy markets. That is why, for years, major Gulf producers have been seeking alternatives.
The Emirates is not starting from scratch. The country already has the Abu Dhabi Crude Oil Pipeline (ADCOP), an oil pipeline that connects the oil fields of Abu Dhabi with Fujairah, on the country's east coast, outside the Strait of Hormuz.
ADNOC itself, the Emirati state-owned oil company, highlights this infrastructure as a strategic route to maintain exports without depending exclusively on the most sensitive maritime passage in the region.
Currently, this route has the capacity to move around 1.8 million barrels per day.
What changes now
The novelty is that the Emirates wants to go further with a second oil pipeline, which would allow a significant increase in the volume of crude oil exported without passing through Hormuz.
The move is interpreted as a direct response to the deterioration of the geopolitical climate in the Middle East and the need to safeguard the country's export capacity.
If one of the main Gulf producers strengthens its capacity to bypass Hormuz, the move has implications for international oil prices, global energy security, the strategic balance in the Middle East, and crude oil trade routes.