A logo of ADNOC is displayed at the Make it in the Emirates (MIITE) conference, held in Abu Dhabi, United Arab Emirates, on May 4, 2026. - Reuters

The UAE's government has announced a fast-tracking initiative for a new oil pipeline project that will double its export capacity through Fujairah by 2027, according to the Abu Dhabi Media Office. The move comes as energy prices have surged due to the closure of the Strait of Hormuz.

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed the Abu Dhabi National Oil Company (ADNOC) to expedite the construction of the West-East Pipeline during an executive committee meeting, ADMO reported. ADNOC is currently overseeing the project which is under development and expected to commence operations in 2027.

The existing Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, can transport up to 1.8 million barrels per day. This infrastructure has proven crucial for maximizing direct exports from the Gulf of Oman coast as the UAE seeks alternative routes away from the Strait of Hormuz.

The UAE and Saudi Arabia are the only two major oil-producing countries in the Gulf region with pipelines that export crude outside the Strait of Hormuz, while Oman has a long coastline on the Gulf of Oman. The narrow waterway between Iran and Oman was effectively closed by Iranian forces following a US-Israeli air and naval campaign initiated on February 28, significantly reducing global oil supply flows to Asia and other regions.

Kuwait, Iraq, Qatar, and Bahrain are almost entirely dependent on the Strait of Hormuz for their maritime shipments. The closure has led to a sharp increase in energy prices, prompting various governments around the world to implement fuel rationing measures and raising concerns about potential economic downturns as inflationary pressures build.

The UAE's new pipeline project aims to address these challenges by providing an additional export route that bypasses the Strait of Hormuz, ensuring greater energy security for the country. The fast-tracking initiative underscores the importance of diversifying oil transportation routes in response to geopolitical uncertainties and supply disruptions.