The proposed project, being developed by Abu Dhabi National Oil Company (ADNOC), is designed to ensure that refined petroleum products can continue reaching global markets even if one of the world's most important shipping routes becomes inaccessible.
Speaking on Tuesday, ADNOC Executive Vice-President for Trading, Philippe Khoury, confirmed that the company intends to construct a refined oil products pipeline that would bypass the Strait of Hormuz, a strategic waterway through which a significant share of global oil supplies normally passes.
The move comes as oil-producing nations in the Gulf seek long-term solutions to growing security concerns in the region. Shipping through the Strait of Hormuz has faced severe restrictions since the outbreak of the Iran war three months ago, prompting producers to reassess export routes and strengthen supply chains.
Explaining ADNOC's strategy, Khoury said the company spends “a lot of time seeing how we can reinforce our channels of supply and our systems to ensure that if the crisis continues longer, as we think it might, we still have the ability to supply our customers in an efficient and competitive manner”.
The UAE already operates a crude oil pipeline linking the Habshan production hub in Abu Dhabi to the port of Fujairah on the country's eastern coast. Since the conflict began, authorities have maximised the use of this route to maintain crude exports to international customers.
However, the existing pipeline has limitations. Its capacity is capped at 1.5 million barrels per day, while Fujairah itself has been targeted repeatedly since the conflict started, creating additional challenges for exporters. To address these concerns, ADNOC is currently constructing a second crude oil pipeline that is expected to double transport capacity to Fujairah when it becomes operational early next year.
Industry sources say the planned multi-fuel pipeline is expected to become ADNOC's next major infrastructure project once the second crude pipeline is completed. A person familiar with the plans revealed that the system would function similarly to major international refined-products networks, including the United States' Colonial Pipeline, by transporting different fuel products through the same line at different intervals.
The project underscores the vulnerability of Middle Eastern energy exporters to disruptions in the Strait of Hormuz. Under normal circumstances, roughly one-fifth of the world's oil supply moves through the narrow passage. Since late February, however, traffic through the strait has slowed dramatically, raising concerns about global energy security and supply stability.
At present, only Saudi Arabia and the UAE possess pipeline networks capable of moving significant volumes of oil to export terminals outside the Gulf without relying on transit through neighbouring countries. Saudi Arabia has increasingly relied on its East-West Pipeline to redirect crude shipments to the Red Sea port of Yanbu, allowing state oil giant Aramco to maintain most of its export flows despite the disruption.
Beyond the planned multi-fuel project, the UAE is also evaluating the possibility of constructing a new west-east pipeline. According to Khoury, the proposal could eventually provide other Gulf producers with an alternative route to international markets, reducing dependence on the Strait of Hormuz and strengthening regional energy resilience.
If approved, the new infrastructure would represent one of the UAE's most significant strategic energy investments in recent years, aimed at protecting exports, reassuring international buyers and reducing the risks associated with one of the world's most geopolitically sensitive maritime chokepoints.