UAE Fast-Tracks Second Oil Pipeline to Bypass Strait of Hormuz

• UAE to complete a second oil pipeline by 2027, bypassing the Strait of Hormuz, doubling its capacity to 3.6M bpd.
• This stems from an ongoing 11-week Strait of Hormuz blockade and comes weeks after the UAE exited OPEC.
• This will allow a huge export flexibility outside the chokepoint amid tensions over production policies.

The United Arab Emirates (UAE) is fast-tracking a major oil pipeline to Fujairah, aiming to bypass the Strait of Hormuz by 2027 and double its export capacity from 1.8 million barrels per day (bpd) to approximately 3.6 million barrels per day.

The move, driven by an ongoing 11-week Strait of Hormuz blockade, is designed to secure crude exports, stabilize global energy flows, and reinforce the UAE’s position as a resilient and independent oil exporter.

UAE to Complete a Second Major Oil Pipeline by 2027

On May 15, 2026, according to sources, the United Arab Emirates (UAE) is fast-tracking a major oil pipeline to bypass the Strait of Hormuz by 2027 and double its export capacity from 1.8M bpd to approximately 3.6M bpd. 

Notably, Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan has directed state oil company ADNOC to accelerate the previously undisclosed project. The new pipeline will run parallel to the existing West-East infrastructure, transporting crude from the emirates’ onshore fields to the port of Fujairah on the Gulf of Oman.

Why the Project Is Being Prioritized Now

The UAE is fast-tracking the project because Iran blockades the Strait of Hormuz, which began shortly after US and Israeli strikes on February 28, 2026, and is now approaching its 11-week mark. Iran has blocked tankers passing through the strait, which previously carried around 20% of global oil and seaborne gas flows. The disruption has sent energy prices soaring and severely affected Gulf economies.

Furthermore, the decision follows the UAE’s exit from OPEC on April 28, 2026, after 60 years of membership. The departure signalled growing tensions with Saudi Arabia over production quotas, giving the UAE greater freedom to increase output once the conflict ends and normal trade resumes.

What’s Next for Gulf Oil Exports and Global Energy Security?

Once operational, the expanded bypass system will allow the UAE to sustain and increase its crude shipments through the Gulf of Oman terminal without interruption, giving Abu Dhabi the physical means to match higher production levels with direct access to global buyers.

At the same time, the UAE and Saudi bypass capacity is expanding as the UAE builds a new pipeline while Saudi Arabia already operates the East-West pipeline system with an export capacity of around 5–7M bpd to Yanbu. Together, this raises reliable non–Strait of Hormuz export capacity to more than 8–10M bpd, creating a stronger structural buffer against future supply disruptions.

For global energy markets, the result is a measurable reduction in single-point vulnerability for oil flows. Brent is currently trading at 108.55 USD/Bbl, up 2.67% from the previous day, while WTI Crude is trading at $104.2 per barrel.

As a result, with a larger share of Gulf crude now able to reach international waters via multiple independent pathways, importers could expect lower exposure to price volatility and supply interruptions, delivering greater long-term stability for energy-dependent economies in Asia, Europe, and beyond.

What’s the Impact on Crypto?

The pipeline news signals improving energy security, which may help cap volatility in crude. Historical patterns during the current crisis show BTC struggling when Brent surges (correlation tightens in shocks), but stabilization could relieve pressure on mining costs, liquidity, and risk appetite.

However, near-term effects remain limited until the pipeline is live; crypto traders will watch oil’s path closely, with any faster-than-expected price moderation likely supportive for BTC and altcoins amid recovering institutional inflows.

Related: UAE Warns of Shift Away From Dollar for Oil as War Risks Grow