The UAE is building a new oil pipeline to bypass the Strait of Hormuz
This is according to The Guardian. The decision was taken against the backdrop of the ongoing blockade of a strategic waterway through which, prior to the war with Iran, a significant proportion of the world’s oil and gas supplies passed.
The UAE wants to protect oil exports from disruptions
According to the Emirati authorities, the new pipeline is intended to connect the country’s oil fields with the port of Fujairah on the coast of the Gulf of Oman. The project will be implemented by the state-owned oil company ADNOC on the instructions of Abu Dhabi’s Crown Prince, Sheikh Khalid bin Mohammed bin Zayed Al Nahyan. It is expected that the new route will significantly increase export volumes via the port of Fujairah and reduce dependence on the Strait of Hormuz.
The Strait of Hormuz has remained blocked for over two months
The blockade of the Strait of Hormuz has now lasted for around 11 weeks. Following the outbreak of hostilities between Iran, the US and Israel, serious problems have arisen in the region regarding the passage of oil tankers. Approximately 20% of global oil and liquefied natural gas supplies were transported through the Strait of Hormuz prior to the conflict. The escalating risks in the region have already led to a sharp rise in energy prices and increased economic pressure on the Gulf states.
Tensions between the UAE and Saudi Arabia are escalating
The decision to accelerate the construction of a new pipeline was taken shortly after the UAE left OPEC, of which it had been a member for around 60 years. The media link this to disagreements between Abu Dhabi and Saudi Arabia over oil production levels. The UAE aims to increase its own exports even in the event of a protracted conflict and further restrictions on shipping through the Strait of Hormuz.
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