- UAE plans to double Fujairah export capacity by 2027 through a new West-East pipeline.
- The move comes as Iran’s blockade of the Strait of Hormuz continues to disrupt global oil flows.
- Abu Dhabi is also strengthening energy ties with India through strategic crude storage deals.
The United Arab Emirates is speeding up construction of a major oil pipeline that could dramatically reduce its dependence on the Strait of Hormuz, as the Gulf region grapples with one of its worst energy disruptions in years.
The project, led by the Abu Dhabi National Oil Company (ADNOC), is designed to expand crude export capacity through Fujairah on the Gulf of Oman coast. Once completed, the pipeline network is expected to carry between 3 million and 3.6 million barrels of oil per day, effectively doubling the UAE’s current bypass capacity outside Hormuz.
The decision comes at a tense moment for global energy markets. The Strait of Hormuz, one of the world’s most important oil shipping routes, has remained effectively shut since Iran responded to the US-Israeli military campaign launched on February 28. The disruption has squeezed nearly a fifth of global oil supplies, sending fuel prices higher and triggering supply concerns across several import-dependent economies.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan directed ADNOC to fast-track the project during a recent executive committee meeting, according to the Abu Dhabi Media Office. The government reportedly said the new West-East pipeline is already under construction and is expected to begin operations in 2027.
Fujairah becomes the UAE’s energy insurance policy
For years, the UAE has tried to reduce its exposure to Hormuz, the narrow maritime corridor separating Iran from the Arabian Peninsula. The country’s existing Habshan-Fujairah pipeline, also known as the Abu Dhabi Crude Oil Pipeline, has been operational since 2012 and can transport up to 1.8 million barrels per day directly to Fujairah, bypassing the strait altogether.
That infrastructure has now become central to the UAE’s wartime energy strategy.
While several Gulf states remain heavily dependent on Hormuz for exports, the UAE and Saudi Arabia are among the few producers with alternative routes. Saudi Arabia relies on its East-West pipeline leading to the Red Sea port of Yanbu, while the UAE has increasingly shifted focus towards Fujairah and nearby Khor Fakkan.
The urgency behind the expansion appears linked not only to export security but also to the UAE’s wider production ambitions. ADNOC has been steadily increasing upstream capacity and is targeting 5 million barrels per day by 2027. Before the conflict escalated, the UAE was producing slightly above 3 million barrels daily. However, wartime shipping disruptions reportedly forced ADNOC to cut effective exports significantly after the Strait of Hormuz closure.
Iran has meanwhile expanded its military posture around the waterway. The Islamic Revolutionary Guard Corps Navy reportedly widened the maritime zone it considers part of the strait, extending surveillance and operational claims further into the Gulf of Oman. Fujairah itself has faced repeated security threats in recent months, including drone attacks and disruptions near oil loading facilities.
The UAE has blamed Iran for several incidents targeting tankers and port infrastructure, though tensions in the region continue to evolve rapidly.
A bigger shift beyond OPEC
The pipeline expansion also reflects a deeper change in the UAE’s oil strategy.
In May, Abu Dhabi formally exited Organization of the Petroleum Exporting Countries after decades of membership, ending its participation in the production quota system long dominated by Saudi Arabia.
The move gave the UAE greater freedom to pursue higher production targets and protect market share during a period of unstable global supply. Analysts have increasingly viewed the country as positioning itself as a more flexible energy supplier, particularly for Asian markets that remain heavily reliant on Gulf crude.
India has emerged as a key partner in that strategy. During Prime Minister Narendra Modi’s recent visit to Abu Dhabi, both countries agreed to deepen energy cooperation, including plans for the UAE to store up to 30 million barrels of crude oil inside India’s strategic petroleum reserves.
The arrangement could help shield some UAE exports from future Gulf disruptions while also giving India an additional buffer against fuel price shocks.
For now, much depends on how long the Hormuz crisis continues and whether regional tensions escalate further. But the UAE’s accelerated pipeline push suggests Abu Dhabi no longer sees the Strait of Hormuz as a reliable long-term route for its oil exports.
