The Abu Dhabi National Oil Company (ADNOC) is pushing ahead with a second Habshan‑Fujairah crude pipeline to expand export facilities at the Port of Fujairah. The strategic project aims to double the UAE’s crude export capacity that bypasses the Strait of Hormuz from 1.8 million barrels per day to 3.6 million barrels per day by the end of 2027, mitigating geopolitical risks to national oil shipments.
The existing Habshan‑Fujairah pipeline, also known as ADCOP, entered service in 2012. It runs overland roughly 360 kilometres from onshore Abu Dhabi fields to Fujairah on the Gulf of Oman. Tankers load crude at Fujairah without transiting the Strait of Hormuz. The port hosts around 42 million barrels of oil storage and functions as a key regional crude transshipment hub.
Authorities ordered construction to be fast-tracked in May 2026, when ADNOC leadership said the parallel new pipeline was around 50% complete. The expansion forms a core part of the UAE’s energy security plan. The Strait of Hormuz carries roughly one-fifth of global crude trade. Escalating Persian Gulf tensions have lifted shipping insurance premiums and raised disruption risks, prompting Gulf producers to build alternative export routes to reduce chokepoint dependence.
Market analysts note that once operational, the new pipeline will allow most of the UAE’s crude output to reach global markets without Hormuz transit, strengthening global supply resilience and damping extreme price swings triggered by regional shocks. Even so, the infrastructure cannot fully replace the Strait of Hormuz. Its near-term impact on crude prices is expected to be muted, though over time it will reshape tanker routing, freight rates and insurance pricing across the Gulf.
Saudi Arabia is also expanding its east-to-west pipeline to Yanbu on the Red Sea, while Iraq and Kuwait are repairing and building cross-border pipelines. This broader shift toward bypass infrastructure across the Middle East will continue to shape global oil, commodity and safe-haven asset markets including gold.