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UAE races to bypass Strait of Hormuz with massive new oil pipeline

The new pipeline is expected to add to the UAE's existing Habshan-Fujairah line, which can move as much as 1.8 million barrels a day.

An oil refinery.

Photo Credit: iStock

The United Arab Emirates is fast-tracking a previously undisclosed oil pipeline designed to bypass the Strait of Hormuz.

As reported by the Guardian, Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan ordered UAE's state oil company to accelerate work on a pipeline to Fujairah on the Gulf of Oman, aiming to have crude flowing by next year.

The news is spreading widely because the Strait of Hormuz has been under intense pressure since the start of the Iran war. Before the blockade, the Strait of Hormuz saw about a fifth of the world's oil and gas move through the narrow waterway. But now with tanker traffic disrupted for weeks, energy prices have jumped, and Gulf economies have felt the strain.

The new pipeline is expected to add to the UAE's existing Habshan-Fujairah line, which can move as much as 1.8 million barrels a day, according to the Guardian. If the new project effectively doubles that capacity, the UAE would be in a much stronger position to keep exports flowing even if the maritime route remains constrained. 

The actual added capacity of the pipeline addition has not been publicly announced, although a potential doubling would bring the UAE's exports above half of that of Saudi Arabia.

The disruptions around the Strait of Hormuz are showing how a single ripple can affect daily life around the world. When oil and gas shipments are squeezed, the effects can show up in higher gasoline prices, more expensive shipping, and rising utility costs for households and businesses.

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This development has highlighted just how heavily the global economy still depends on fossil fuel infrastructure, and how exposed that system is to geopolitical conflict. A single blocked passage can tighten supply and send prices soaring. 

Many experts also argue that cleaner, locally generated energy can make countries and consumers less vulnerable to these kinds of shocks.

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