Adnoc To Accelerate New Pipeline Project To Double Export Capacity Through Fujairah

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Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan has directed Adnoc on Friday to accelerate the delivery of the new West-East Pipeline project, which will double the oil giant's export capacity through Fujairah.

During a meeting of the Executive Committee of the Adnoc Board of Directors, Sheikh Khaled also commended Adnoc for its resilience in maintaining safe operations, while continuing to reliably supply energy to local and international customers.

Sheikh Khaled, who is also Chairman of the Abu Dhabi Executive Council, was updated on the pipeline project which is currently under construction and is expected to become operational in 2027.

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Sheikh Khaled also reviewed Adnoc's performance and noted its strong progress in delivering key growth projects, affirming that the company is well positioned as a responsible and reliable global energy producer, with the operational flexibility to responsibly increase production to meet market needs when export constraints allow.

Held at Adnoc headquarters in Abu Dhabi, the meeting also noted the progress made in developing the TA'ZIZ Phase 1 chemicals ecosystem in Al Ruwais Industrial City, Al Dhafra Region, highlighting its key role in creating new domestic value chains.

The UAE's existing Abu Dhabi Crude Oil Pipeline (Adcop), also known as the Habshan-Fujairah pipeline, can carry up to 1.8 million barrels per day, and has proved crucial as the country seeks to maximise direct exports from the Gulf of Oman coast.

The UAE and Saudi Arabia are the only Gulf producers with pipelines that export crude outside the Strait of Hormuz, while Oman has a long coastline on the Gulf of Oman.

The narrow waterway between Iran and Oman was effectively shuttered by Iran in response to a US-Israeli air and naval campaign that began on February 28, choking off about a fifth of global oil supplies that normally flow to Asia and elsewhere.

Kuwait, Iraq, Qatar and Bahrain are almost wholly reliant on the strait for shipments.

Energy prices have surged due to the disruption to supplies, prompting governments to ration fuel and raising fears of an economic downturn as inflation builds.

(With inputs from Reuters)

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