Today's Edition
ABU DHABI (ALETIHAD)
Work on Abu Dhabi’s second oil pipeline to Fujairah port that bypasses the Strait of Hormuz is 50% complete and will be operational by next year, said Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, ADNOC Managing Director and Group CEO, Chairman of Masdar and Executive Chairman of XRG.
He said work on the pipeline had begun in 2025 and, once complete, the project will double export capacity from Fujairah port in the Gulf of Oman.
“Right now, too much of the world’s energy still moves through too few chokepoints. That is exactly why the UAE made the decision more than a decade ago to invest in infrastructure that bypasses the Strait. And it is why we moved ahead with our second pipeline in 2025. Today it is already 50% complete, and we are accelerating delivery toward 2027.”
Dr Al Jaber said ADNOC can boost its oil production within weeks if the war ends promptly, but added that it will take four months for supplies via Strait of Hormuz to return to 80% of pre-conflict levels. Full flows will not return before the first or second quarter of 2027.
He called on Iran to end disruption of trade through the Strait, and for global leaders to step up diplomatic efforts to open the vital waterway. “This is not just an economic problem. It sets a dangerous precedent. Once you accept that a single country can hold the world's most important waterway hostage, freedom of navigation as we know it is finished. If we do not defend this principle today, we will spend the next decade defending against the consequences.”
Dr Al Jaber also spoke of ADNOC's commitment to its $150 billion five-year capital expenditure (CAPEX) programme to enhance its operations, drive growth and meet global energy demand.
“As a sector, we are dangerously underinvested. Upstream investment is sitting at around $400 billion a year, which barely offsets natural decline rates. Global spare capacity is around 3 million barrels a day. It should be closer to five. And in just two months, the world drew down around 250 million barrels from storage. We have 30 to 35 days of effective cover. We need to at least double that.”
Not just oil and gas supplies were disrupted by the conflict, supply of critical chemicals, minerals and fertilisers driving the world economy has stalled.
“Fuel prices are up 30%, fertiliser is up 50%, airfares are up 25%. Every farm, factory and family is paying the price. And the ones who are most vulnerable end up carrying the heaviest load,” he added.
The UAE is, meanwhile, speeding up plans to supply low-cost, low-carbon energy to customers around the world, supported by the “sovereign, strategic decision” to exit the Organisation of the Petroleum Exporting Countries (OPEC) in late April.
The decision to exit OPEC was not “a reaction or a rupture and not directed against anyone, or any institution” and the country will keep engaging and "showing up for our friends and partners", added Dr Al Jaber.
