UAE Doubles Fujairah Pipeline Capacity to 3.4 Million Bpd as Hormuz Disruptions Spur Inland Shift
Updated
Updated · The National · May 17
UAE Doubles Fujairah Pipeline Capacity to 3.4 Million Bpd as Hormuz Disruptions Spur Inland Shift
9 articles · Updated · The National · May 17
The UAE has expanded its Fujairah pipeline, lifting bypass capacity around the Strait of Hormuz to 3-3.4 million barrels per day as war risks keep traffic disrupted.
That expansion supports a broader rerouting of energy and trade flows inland, with Saudi Arabia's east-west pipeline to the Red Sea also serving as a key outlet against a deeper global oil shortage.
Khor Fakkan's throughput has jumped to 50,000 containers a week from 2,000 as supply chains shift away from vulnerable sea lanes, helped by Etihad Rail and Red Sea terminals.
The landward pivot could gradually weaken Tehran's leverage over Hormuz, with any attempt to tighten control or impose tolls risking faster long-term avoidance by Gulf producers and Asian buyers.
With Hormuz closed, are the Gulf's new land routes a true solution or the region's next vulnerable chokepoint?
As the UAE and Saudi Arabia reroute trade, how will trapped Gulf nations like Qatar and Iraq survive the blockade?
Is the closure of Hormuz permanently redrawing the world's energy maps and ending Iran's geopolitical dominance?
Strait of Hormuz Crisis: UAE’s OPEC Exit, Pipeline Bypass, and the Battle for 20% of Global Oil Flows
Overview
In February 2026, the Strait of Hormuz—a vital route for global energy—was effectively closed due to escalating regional conflict, causing the most severe energy supply shock ever recorded. The International Energy Agency reported over 12 million barrels per day of oil shut-ins and damage to dozens of energy facilities. Facing heightened security risks and disrupted transit, the UAE and its oil buyers took extraordinary measures, such as sending tankers through the Strait with their trackers off, to avoid Iranian attacks and move trapped oil. This urgent situation highlighted the need for secure export alternatives and accelerated the UAE’s bypass strategy.