The United Arab Emirates and Iraq are fast-tracking multi-billion-dollar pipeline projects to bypass the Strait of Hormuz, shifting their primary export hubs to the Gulf of Oman and the Mediterranean. This rush follows the near-total shutdown of the vital Persian Gulf shipping chokepoint, which has severely throttled energy exports and sent global prices soaring.
The UAE: Fujairah Expansion.
The UAE is accelerating a major parallel pipeline to completely bypass the Strait of Hormuz by 2027.
- The Route: Transporting crude directly from Abu Dhabi’s onshore fields in Habshan to the port of Fujairah on the Gulf of Oman.
- Capacity Impact: The new network will almost double the UAE’s non-Hormuz export capacity, enabling up to 4 million barrels per day (bpd) to flow outside the Persian Gulf by 2027.
- Strategic Pivot: The expansion dovetails with the UAE’s exit from OPEC, empowering the nation to control its own crude oil production and supply independently of Gulf chokepoint vulnerabilities.
Iraq: Northern and Overland Re-routing
Iraq—whose economy remains heavily reliant on oil exports—is rushing to reverse and expand its northern pipeline infrastructure while planning long-term overland routes.
- The Kurdistan-Turkey Pipeline: The Iraqi cabinet recently approved plans to more than triple its shipments through the Kurdistan-Turkey pipeline network.
- Capacity Impact: This accelerates crude exports through the Kirkuk-Ceyhan pipeline, ramping capacity from 220,000 bpd to 770,000 bpd to reach the Mediterranean port of Ceyhan.
- Long-Term Alternatives: Iraq is also considering long-term land pipelines, including a 1 million bpd route to Jordan’s Red Sea port of Aqaba.
For ongoing updates regarding the regional conflict, shipping bottlenecks, and progress on these energy infrastructure projects, you can monitor live tracking and energy strategy reports via CNBC or Nikkei Asia.
