The United Arab Emirates (UAE) has ordered the fast-tracking of a major new oil pipeline project designed to bypass the increasingly volatile Strait of Hormuz, as Gulf nations scramble to shield energy exports from escalating regional tensions and supply disruptions.
According to the Abu Dhabi Media Office, UAE Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan directed the Abu Dhabi National Oil Company to accelerate construction of the proposed West-East Pipeline during a recent executive committee meeting.
Currently under construction, the pipeline is expected to become operational by 2027 and will significantly expand the UAE’s ability to export crude oil directly through Fujairah on the Gulf of Oman coast without depending on the Strait of Hormuz.
Strategic shift away from Hormuz
This development comes at a time when the Strait of Hormuz has emerged as the epicentre of global energy concerns amid ongoing geopolitical tensions in West Asia.
The narrow maritime corridor between Iran and Oman handles nearly a fifth of global oil shipments, much of it flowing towards Asian markets. However, the route has come under severe pressure following the ongoing US-Israeli military campaign against Iran and Tehran’s retaliatory threats targeting regional shipping lanes.
Energy markets have remained on edge as fears of prolonged disruption continue to push oil prices sharply higher, with governments across several countries already dealing with fuel shortages, inflationary pressures and rising transport costs.
Existing Fujairah pipeline already crucial
The UAE already operates the Abu Dhabi Crude Oil Pipeline, also known as the Habshan-Fujairah pipeline, which currently transports up to 1.8 million barrels of crude oil per day directly to Fujairah, bypassing the Strait of Hormuz entirely.
Officials say the existing route has become increasingly critical in recent months as concerns over maritime security intensified across the Gulf region.
The upcoming West-East Pipeline is expected to effectively double the UAE’s export capacity outside Hormuz, further strengthening Fujairah’s position as a strategic global energy hub.
While the Abu Dhabi Media Office confirmed that construction is being accelerated, officials did not disclose the original completion timeline before the latest directive.
Gulf nations under pressure
The UAE and Saudi Arabia remain the only major Gulf oil producers currently possessing significant pipeline infrastructure capable of bypassing the Strait of Hormuz. Meanwhile, countries such as Kuwait, Iraq, Qatar and Bahrain remain heavily dependent on the strait for crude exports.
Energy analysts believe this growing asymmetry could reshape regional energy logistics and investment priorities in the coming years, especially if geopolitical tensions persist.
The Strait of Hormuz crisis has already triggered major disruptions in global supply chains, forcing airlines, shipping companies and energy-intensive industries worldwide to reassess operations amid soaring fuel costs.
Global energy markets on edge
Oil prices have surged dramatically since the latest escalation in the region, intensifying inflation concerns globally and placing additional pressure on fuel-importing economies such as India. The disruption has also raised fears of a wider economic slowdown as transportation, logistics and manufacturing costs continue climbing worldwide.
With uncertainty surrounding the Strait of Hormuz showing little sign of easing, the race to secure alternative export corridors is rapidly becoming one of the defining energy stories of the decade.