A shared bypass line would chip away at the Hormuz risk premium over time by giving Gulf producers beyond the UAE a route to market that avoids the strait. With ADNOC’s denial, though, the report is unlikely to move crude near term, and the risk premium stays anchored to shipping attacks and transit volumes through the strait itself. The 2027 second line is the more tangible supply factor, potentially easing Asian buyers’ exposure to Hormuz disruption. Repeated attacks on Fujairah also limit how much comfort traders can take from bypass capacity, keeping the infrastructure itself part of the risk.
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The pipeline ADNOC says isn’t happening would have turned the UAE from a country avoiding Hormuz into one selling a way around it.
Summary:
Bloomberg reported ADNOC is weighing a third pipeline from the UAE’s west coast to Fujairah, bypassing Hormuz
The line could be open to third parties and was described to some Asian customers, but plans are not final
ADNOC called the report inaccurate and purely speculative
An existing line carries about 2 million barrels a day, and a second line due in 2027 would roughly double capacity
The UAE, Saudi Arabia and Kuwait are all pursuing ways to reduce reliance on the strait
Fujairah and Saudi Arabia’s East-West pipeline have both been attacked during the war
Abu Dhabi National Oil Co. has denied a report that it is weighing a third crude pipeline to bypass the Strait of Hormuz, a project that, according to Bloomberg, could be opened to other producers and turn the UAE’s east coast into a wider export outlet for Gulf oil.
Bloomberg reported on Wednesday, citing people familiar with the matter, that ADNOC was considering a new line from the UAE’s western coast to the port of Fujairah, which sits outside the strait on the Gulf of Oman. The pipeline could be made available to third parties, and ADNOC had described the plan to some Asian customers, the report said, adding that the project was not finalised and its route could change. No cost or timeline was given.
ADNOC told Bloomberg the report was inaccurate and purely speculative.
The third-party element is what sets the report apart from the UAE’s existing bypass strategy. ADNOC already operates a pipeline from its western onshore fields to Fujairah with capacity of about 2 million barrels a day, according to Bloomberg, and said in May it was accelerating a second line due for completion in 2027 that would roughly double that capacity. Both serve ADNOC’s own exports. A line open to other shippers would instead position Fujairah as a regional route around Hormuz, extending the UAE’s reach beyond its own production.
That would fit the direction the UAE has taken since leaving OPEC in May, with plans to invest in pipelines, rail, roads and at least three eastern ports to reduce its reliance on the strait. Neighbours are moving the same way: Saudi Arabia plans to expand its East-West pipeline, and Kuwait is in talks with both countries about alternative routes.
The backdrop explains the urgency. Hormuz was almost shut at the height of the Iran war, and while traffic has picked up, ships are still frequently targeted. Bypass routes are not immune either. Fujairah has been attacked several times during the conflict, and Saudi Arabia’s East-West line was briefly halted after an attack in September.
With ADNOC rejecting the report, the plan remains unconfirmed. The more concrete milestone for oil markets is the second pipeline, which ADNOC has told some Asian refiners could supply cargoes at Fujairah from early 2027.
This article was written by Eamonn Sheridan at investinglive.com.
