Bypassing the Strait of Hormuz, the UAE is building a new oil pipeline.

The UAE is accelerating infrastructure development in the energy sector to reduce its strategic dependence on the Strait of Hormuz—a globally critical oil transit corridor. According to a Bloomberg report dated May 15, Abu Dhabi National Oil Company (ADNOC) is constructing a new oil pipeline to the port of Fujairah on the Gulf of Oman, scheduled for completion in 2027. Upon commissioning, the UAE’s capacity to export crude oil while bypassing the Strait of Hormuz will double compared to current levels. ADNOC’s existing pipeline along the same route has been operational for over a decade, with a daily throughput capacity of 1.5 million barrels. During the ongoing Middle East conflict, this pipeline has served as a vital channel for sustaining UAE crude exports—but it meets less than half of the country’s normal export volume and cannot fully replace the traditional route via the Strait of Hormuz. This bottleneck directly spurred the accelerated implementation of the new pipeline project. Once completed, the new pipeline will operate in parallel with the existing one, significantly enhancing the resilience of the UAE’s crude export infrastructure. Energy Realignment Amid Geopolitical Conflict: The UAE Builds a “Backup” Route Around the Strait The Strait of Hormuz is the critical chokepoint linking Middle Eastern oil producers to global markets.

The UAE has announced its "Zero Dependence on Hormuz" initiative, accelerating investments in pipelines and ports.

According to a recent Bloomberg report, UAE Minister of State for Foreign Trade Thani Al Zeyoudi publicly stated that the UAE is advancing a clearly defined energy infrastructure initiative—achieving “zero dependence” on the Strait of Hormuz. “We are moving toward zero dependence on the Strait of Hormuz, regardless of whether the strait remains open or not—this direction will not change,” Al Zeyoudi said in an interview. “The strait will reopen; we hope this happens as soon as possible—but we will not halt our new initiatives.” These remarks come against the backdrop of months-long de facto closure of the Strait of Hormuz triggered by U.S.-Iran tensions, forcing a global reconfiguration of supply chains for crude oil, refined products, and liquefied natural gas (LNG). A U.S.-Iran memorandum of understanding is expected to be formally signed as early as this Thursday or Friday, potentially restoring passage through the strait within days—but this crisis has already made Gulf oil producers acutely aware that reliance on a single maritime corridor carries unacceptable risk. Pipeline, Rail, and Port Infrastructure: The UAE’s Bypass Blueprint The UAE’s plan encompasses pipelines, railways, and road networks, with the core objective being to establish an overland corridor linking Persian Gulf ports to ports along the Gulf of Oman—including Dibba, Fujairah, Khor Fakkan, and at least one newly built port. Abu Dhabi has announced plans to rapidly advance construction of a second crude oil pipeline to Fujairah by 2027, while also evaluating a third oil pipeline and alternative export routes for LNG and petrochemical products. However, pipelines alone can only solve part of the problem. Crude oil can be rerouted via pipelines, but transporting LNG, aluminum, and containerized imports poses far greater logistical challenges.

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