UAE Accelerates Second Hormuz Bypass Pipeline as ADNOC Hits 50% Construction Milestone

On May 20, 2026, Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Company (ADNOC), confirmed during an Atlantic Council event that construction of the United Arab Emirates' second crude oil pipeline bypassing the Strait of Hormuz has reached nearly 50 percent completion. The project, known as the West-East Pipeline expansion, is being fast-tracked toward an operational start in 2027 and aims to double ADNOC's crude export capacity through the port of Fujairah on the Gulf of Oman.

The announcement follows a directive issued on May 15, 2026 by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, instructing ADNOC to accelerate delivery of the project. The new pipeline route runs from the Habshan onshore oil fields in the western Abu Dhabi emirate to the Fujairah terminal in the east, completely avoiding the narrow waterway that has been blockaded by Iran since early March 2026.

Iran shut down the Strait of Hormuz in the aftermath of US-Israeli strikes on its territory on February 28, 2026. The closure has triggered what Al Jaber described as the most severe energy supply disruption in modern history. According to ADNOC figures, more than 1 billion barrels of crude have already been lost since the start of the blockade, with another 100 million barrels lost every week the strait remains closed. Global inventories are being drawn down at a record pace of around 4 million barrels per day.

The UAE's existing Abu Dhabi Crude Oil Pipeline, also called the Habshan-Fujairah pipeline (ADCOP), can transport up to 1.8 million barrels per day. It has become the country's only large-scale export channel outside the strait since commercial operations began in 2012. The 360 km, 48-inch line currently carries the bulk of UAE crude shipments to international markets. The new West-East Pipeline expansion will add a parallel corridor capable of pushing combined throughput to as much as 4 million barrels per day once operational.

Al Jaber also warned that even if the conflict ended immediately, regional oil production would need at least four months to recover to 80 percent of pre-war levels, with full recovery unlikely before the first or second quarter of 2027. The UAE was itself hit by more than 3,000 missiles and drones during the conflict, with some ADNOC facilities sustaining damage that may take weeks or months to repair. National crude output has fallen from just over 3 million barrels per day before the war to between 1.8 and 2.1 million barrels per day today.

To support the expansion, ADNOC is maintaining its $150 billion five-year capital spending plan. The UAE also withdrew from the OPEC producer group earlier in May 2026, ending a membership held since 1967 and giving Abu Dhabi the flexibility to lift quota constraints on production. The country has set a long-term target of 5 million barrels per day of crude capacity.

The Fujairah hub already plays a central role in this strategy. The port hosts large underground crude storage caverns with a combined capacity of 42 million barrels, supporting the UAE's role as a regional trading center. Saudi Arabia has taken a parallel approach, with its own East-West pipeline running to Yanbu on the Red Sea reportedly pumping at full 7 million barrel per day capacity since late March 2026.

Al Jaber framed the broader picture as a structural shift in global energy logistics. He noted that upstream investment of around $400 billion per year barely offsets natural decline rates and that global spare capacity, currently near 3 million barrels per day, should be closer to 5 million. He also pointed to a draw-down of 250 million barrels from storage over the past two months and warned that effective coverage of 30 to 35 days needs to at least double.

The accelerated UAE pipeline project, combined with similar bypass infrastructure across the Gulf, is reshaping global oil trade routes. Energy markets, shipping operators, and import-dependent economies in Asia and Europe are watching closely as alternative corridors emerge to reduce reliance on a single chokepoint. The completion of the West-East expansion in 2027 will mark a lasting change in how Middle East crude reaches international buyers.