The United Arab Emirates says a second crude oil pipeline designed to bypass the Strait of Hormuz is nearly halfway built, a project that has taken on new urgency as Gulf energy exporters look for routes less exposed to regional conflict.
Sultan Ahmed Al Jaber, the CEO of Abu Dhabi National Oil Co., said Wednesday that the new line is close to 50% complete and is being accelerated toward a 2027 start. Once operating, the pipeline is expected to double ADNOC’s export capacity through Fujairah, the UAE port on the Gulf of Oman side of the strait.
Why Fujairah Matters
The Strait of Hormuz has long been one of the world’s most sensitive energy chokepoints. A large share of Gulf crude and liquefied natural gas moves through the narrow waterway, leaving exporters vulnerable when military or political tensions interrupt shipping.
Fujairah gives the UAE a way to load crude beyond Hormuz. The country already uses an existing route to move some barrels there, though the precise capacity figures often cited for that system have not been independently verified. The second pipeline is meant to expand that outlet and reduce the share of ADNOC exports that must pass through the strait.
Al Jaber framed the project as part of a broader shift in how Gulf producers think about energy security. “Too much of the world’s energy still moves through too few chokepoints,” he said, warning that disruption at Hormuz creates both economic and strategic risk.
What Changes for Energy Buyers
For refiners, traders and governments watching Gulf supply, the new pipeline does not remove Hormuz from the map. It does, however, add redundancy. That matters most when shipping lanes are restricted, insurance costs rise or buyers need confidence that contracted barrels can still reach the market.
| Decision point | What the pipeline changes | What remains uncertain |
|---|---|---|
| Export route | More crude can move through Fujairah, outside the Strait of Hormuz. | Hormuz will still matter for regional energy flows. |
| Timing | ADNOC says the project is being pushed toward 2027. | Full operational performance will depend on completion and ramp-up. |
| Supply security | A second route could reduce exposure to a single chokepoint. | Conflict risk and shipping constraints can still affect prices. |
Al Jaber said the Hormuz disruption has already caused a severe loss of oil supply, with additional barrels at risk for every week the strait remains constrained. He also cautioned that even a quick end to the conflict would not restore normal oil flows immediately, estimating that it would take months to bring volumes back near pre-crisis levels and potentially into 2027 for full normalization.
A Regional Shift Away From Single-Route Risk
U.S. Energy Secretary Chris Wright has argued that Hormuz may become less central after the Iran war as Gulf states build additional export routes. His point was not that Gulf oil will matter less, but that producers are likely to invest more heavily in infrastructure that keeps supplies moving when the strait is threatened.
For the UAE, the new Fujairah pipeline is the clearest example of that strategy. It is not a quick fix for the current disruption, but it could reshape future planning for oil buyers that depend on Gulf crude. The practical question now is whether ADNOC can keep the project on schedule and bring the added capacity online in 2027.