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Iran-Israel war: UAE oil pipeline offers safe alternative in case of Hormuz closure
The conflict between Iran and Israel has escalated significantly, with the United States now directly involved. This has triggered fears of a closure or harassment of shipping through the Strait of Hormuz, through which nearly 20 per cent of global oil passes daily. Iran has already threatened to block the strait, and its parliament has reportedly approved such a move.
In this volatile environment, the Habshan–Fujairah pipeline offers the UAE — and by extension, global markets — a secure and uninterrupted export route for up to 1.5 million barrels per day of crude oil. Its outlet at Fujairah, on the Gulf of Oman, lies outside the Strait of Hormuz, making it one of the few viable alternatives for Gulf oil exports if the strait is compromised.
Key strategic advantages
1. Bypassing the Strait of Hormuz: The pipeline allows the UAE to continue exports even if the strait is blocked or becomes unsafe.
2. Market Stability: It provides a buffer against extreme oil price shocks by ensuring a steady flow of oil to global markets.
3. Geopolitical Leverage: The UAE gains strategic autonomy and resilience, reducing its vulnerability to regional tensions.
4. Support for Allies: It can serve as a critical supply route for allied nations dependent on Gulf oil, especially during maritime disruptions.
The Habshan–Fujairah Oil Pipeline, also known as the Abu Dhabi Crude Oil Pipeline (ADCOP), is a landmark infrastructure project that underscores the UAE's strategic foresight in energy security and global oil logistics.
The conceptual design of the pipeline was completed in 2006, with construction commencing in March 2008. The project was spearheaded by the International Petroleum Investment Company (IPIC), with engineering and construction carried out by China Petroleum Engineering and Construction Corporation, a subsidiary of China National Petroleum Corporation. The pipeline was officially commissioned in June 2012 and inaugurated on 15 July 2012, when it delivered its first shipment of Murban crude to the Pak-Arab Refinery.
The 360-km pipeline (which inlcudes 14km offshore facilities) starts from Habshan in Abu Dhabi, passing through Sweihan, and terminating at Fujairah on the Gulf of Oman. It has a capacity of 1.5 million barrels per day (bpd) and includes three major pumping stations located at Habshan, Sweihan, and Fujairah. The approximate cost of construction was $3.3 billion
As of the latest available data, the pipeline is operational and functioning near or at full capacity, transporting up to 1.5 million bpd of crude oil. It plays a vital role in ADNOC's export strategy, particularly in light of the current geopolitical tensions in the region.
The Habshan–Fujairah Oil Pipeline has become strategically indispensable amid the ongoing US-Iran-Israel war, particularly due to the heightened risk of disruption in the Strait of Hormuz, a critical chokepoint for global oil shipments.
With oil prices already spiking, the pipeline's role is not just regional but global. It helps mitigate the risk of a full-blown energy crisis, especially if the Strait of Hormuz is closed for an extended period.
