Amid ongoing conflict in the West Asia, several countries across the Persian Gulf are accelerating efforts to reduce their dependence on the Strait of Hormuz after repeated attacks on ships in the narrow strait. The move from these Gulf nations comes as the heated rivalry between the US and Iran continues to disrupt one of the worldโs busiest oil routes, raising concerns about the security of global energy supplies.
Before the conflict, nearly a fifth of the world’s crude oil, along with a significant share of Indiaโs liquefied natural gas, moved through this route every single day. Gulf nations are now investing in alternative transport routes to protect exports and reduce the risk of future disruptions.
UAE and Iraq start constructing major pipeline projects
United Arab Emirates and Iraq have already begun constructing major pipeline projects to move crude oil without using the Strait of Hormuz. Moreover, Saudi Arabia is also exploring a similar expansion of its own pipeline infrastructure. According to Goldman Sachs, the multinational investment bank, enough pipeline capacity could be ready by the end of 2027 to divert nearly 45 per cent of the Gulf’s pre-war oil exports away from the strait.
Alexandra Paulus, who is an analyst at the multinational bank, further tracked seven pipeline and export infrastructure projects across the region that are either under construction, planned, or considered potentially feasible.
These alternate routes could carry up to 7.3 million barrels of oil each day, allowing 60 per cent of Gulf oil exports to avoid the strait by the end of 2028
UAE Aggresively fast-tracing West-East Pipeline project
The UAE is aggressively fast-tracking its land-based export routes as regional instability escalates, with its strategic West-East Pipeline project now passing the halfway mark. Crown Prince Sheikh Khaled bin Mohamed bin Zayed ordered officials to meet a strict 2027 completion deadline for the 252-mile mega-project.
Once operational alongside the existing Fujairah network, the new pipeline will double the UAEโs land-based crude export capacity to a massive 3.6 million barrels per day.
Abu Dhabi National Oil Company chief Sultan Al Jaber said the latest regional tensions had reinforced the countryโs long-term strategy. โRight now, too much of the worldโs energy still moves through too few choke points. That is exactly why the UAE made the decision more than a decade ago to invest in infrastructure that bypasses the Strait of Hormuz,โ he told reporters.
Iraq and Saudi scale up pipeline project to connect Jordan, Syria, Turkey
Meanwhile, Iraq and Saudi Arabia are scaling up their own overland networks to strengthen their economies in the ongoing situation. Iraq has committed $1.5 billion to initiate ground construction on its 435-mile Basra-Haditha pipeline, a project designed to pump 2.5 million barrels of oil per day by linking directly to terminal networks in Jordan, Syria, and Turkey.
Iraqi Prime Minister Mohammed Shia al-Sudani heavily backed the pipeline, calling it a vital national security shield to safeguard oil exports. Simultaneously, Saudi Arabia is examining plans to heavily expand its core Red Sea crude pipeline system to a capacity of 9 million barrels per day.
UAE plans to construct a new port and container terminal
The UAE is also planning a major new port and container terminal on the Arabian Sea side of the Strait of Hormuz, alongside its pipelines. Dubai-based port operator DP World would develop a brand new multipurpose port and a container terminal on the east coast of the United Arab Emirates. The strategic move is aimed at cutting Dubai’s reliance on its main Jebel Ali hub while providing a critical shipping route that bypasses the volatile Strait of Hormuz. Even with billions being invested in alternative routes, experts say the Strait of Hormuz will remain critical.
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