ADNOC Says New Oil Pipeline Bypassing Strait of Hormuz Nearly 50% Complete

ADNOC completed roughly half of a major new crude oil pipeline project designed to bypass the Strait of Hormuz, as Gulf producers race to shield energy exports from escalating regional instability.

Speaking during an event hosted by the Atlantic Council on Wednesday, ADNOC Chief Executive Sultan Ahmed Al Jaber said the project is progressing rapidly, with completion targeted for 2027.

The expansion comes amid severe disruptions to maritime traffic in the Gulf following the outbreak of conflict involving Iran earlier this year. Iran has kept the Strait of Hormuz largely closed to most commercial vessels since U.S.-Israeli strikes in February, fueling sharp increases in energy prices, inflationary pressures, and concerns over a potential global economic slowdown.

Al Jaber said the vulnerability of global energy supplies to geopolitical chokepoints had driven the UAE to invest heavily in alternative export infrastructure over the past decade.

“A significant portion of global energy passes through a very small number of chokepoints,” he said, emphasizing the strategic importance of diversifying export routes away from Hormuz.

The UAE already operates the existing Habshan-Fujairah Pipeline, which can transport up to 1.8 million barrels of crude oil per day directly to the Gulf of Oman, bypassing the Strait entirely.

The new pipeline project is expected to further strengthen the country’s ability to maintain uninterrupted exports during periods of regional conflict and shipping disruption.

Al Jaber also revealed that some ADNOC facilities had sustained direct damage during the recent hostilities, with portions of the company’s infrastructure impacted by attacks linked to the conflict.

He said restoring full operational capacity could take several weeks in some locations and several months in others, depending on the extent of the damage.

The remarks underscore growing concerns among Gulf energy producers over the security of critical oil infrastructure as tensions continue to reshape global energy markets and maritime trade routes.

Analysts say investments in alternative pipelines, storage facilities, and export terminals are likely to accelerate across the region as producers seek to reduce dependence on one of the world’s most strategically sensitive waterways.