Adnoc Plans Multi-Fuel Pipeline to Bypass Hormuz as 20% of Global Oil Trade Stalls
Updated
Updated · Financial Times · Jun 2
Adnoc Plans Multi-Fuel Pipeline to Bypass Hormuz as 20% of Global Oil Trade Stalls
3 articles · Updated · Financial Times · Jun 2
Summary
Adnoc is preparing the UAE’s first multi-fuel pipeline so gasoline, diesel and jet fuel exports can keep flowing if the Strait of Hormuz remains shut.
Three months of war with Iran have severely restricted traffic through the strait, which normally carries about a fifth of global oil, pushing Gulf producers to cut reliance on the chokepoint.
The UAE already routes crude through its Habshan-Fujairah line, but that link is capped at 1.5 million barrels a day and Fujairah has faced repeated attacks since the conflict began.
A second crude pipeline to Fujairah is due online early next year, and the refined-products line is expected to be Adnoc’s next project; the UAE is also weighing a broader west-east route for other Gulf exporters.
The scramble underscores how only Saudi Arabia and the UAE currently have pipeline options to move oil to ports outside the Gulf without crossing other countries.
With existing pipelines already under attack, how will the UAE's new Hormuz bypass be secured?
Is the UAE's new pipeline a risky bet on a future of high oil demand?
Can new pipelines solve the global energy crisis, or do they just create new targets?
The 2026 Strait of Hormuz Blockade: Global Energy Shock, Bypass Race, and the Future of Gulf Oil Exports
Overview
In March 2026, Iran’s plan to impose a paid toll on ships passing through the Strait of Hormuz sparked international condemnation, as it challenged the long-standing principle of free passage. This move led to the Hormuz Blockade, causing immediate disruptions to global energy and supply chains. Countries like Singapore strongly opposed the toll, emphasizing the importance of free navigation, while China responded by prioritizing its own energy security. The crisis highlighted the vulnerability of global trade to chokepoints like Hormuz and prompted Gulf states to accelerate investments in alternative export routes to ensure energy resilience.