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Market Chatter: UAE Weighs Products Pipeline Bypassing Strait of Hormuz

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The UAE is weighing plans to build an additional pipeline for refined petroleum products that would bypass the Strait of Hormuz and deliver fuels directly to the country's east coast, Bloomberg reported on Tuesday, citing a senior executive at Abu Dhabi National Oil Company.

Adnoc, which is already constructing a crude pipeline aimed at doubling capacity to the port of Fujairah on the UAE's eastern seaboard, is now "potentially" considering a separate conduit for oil products, Philippe Khoury, executive vice president for sales & trading, reportedly said at S&P Global's Middle East Petroleum & Gas Conference in London.

Adnoc did not immediately reply to a request for comment by.

The UAE currently relies on a 1.5 million barrel-per-day pipeline linking its inland oil fields to Fujairah, a route that has served as a critical alternative during recent Middle East tensions that disrupted shipping through the Strait of Hormuz.

The pipeline has allowed the UAE to maintain export flows and partially offset revenue losses after Iran effectively curtailed normal transit through the Strait following the outbreak of conflict in late February.

Adnoc is accelerating expansion plans already underway, reflecting efforts to strengthen export resilience and reduce exposure to potential disruptions at the key shipping chokepoint.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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