ADNOC to expand export capacity with new pipeline

The UAE’s state-owned oil company plans to build a new export pipeline and aims to have it up and running next year.

IMAGE: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

The Abu Dhabi National Oil Company (ADNOC) will build the West-East 1 Pipeline. It aims to double its oil export capacity via the Port of Fujairah, which is situated next to the Strait of Hormuz.

ADNOC plans to build the pipeline “to meet global energy demand,” the Abu Dhabi Media Office said.

The new pipeline could direct more crude tanker traffic to Fujairah – one of the three major ports in Asia – reinforcing its role as a key export and bunker hub outside the Strait of Hormuz.

Increased vessel calls may also support stronger bunker demand in Fujairah, particularly from very large crude carriers (VLCCs) and other crude carriers loading from the emirate.

Moreover, the project follows the UAE’s recent departure from OPEC, a move widely seen as aimed at expanding oil exports without the constraints of production quotas.

With uncertainty surrounding the reopening of the Strait of Hormuz and whether shipping conditions will return to pre-war norms, the UAE seeks to speed up efforts to expand alternative export routes.

By Aparupa Mazumder

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