The United Arab Emirates (UAE) has opened the new $4.2bn Habshan-Fujairah pipeline which will allow Abu Dhabi to export crude oil directly from Fujairah, and has loaded the first tanker for export.
The project is designed to offset the reliance on Arabian Gulf oil terminals, and reduce shipping congestion through the Strait of Hormuz.
The completion of the long-delayed pipeline comes in line with threats from Iran to block the Gulf shipping waterway as Western sanctions on its oil exports tighten.
The project will provide an alternative route for up to 75% of the UAE’s exports, reports Reuters.
The 380km Abu Dhabi Crude Oil Pipeline (ADCOP), or the Habshan-Fujairah pipeline, will start from Habshan, the current collection point for Abu Dhabi’s onshore crude oil production, and terminate at the Gulf of Oman.
The 48-inch-diameter pipeline has a capacity to transport around 1.5 million barrels per day of crude oil from the Abu Dhabi Company (ADCO) for onshore oil operations facilities at Habshan, to an export oil terminal in Fujairah.
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By GlobalDataThe capacity is expected to eventually increase to 1.8 million barrels per day.
The construction of the pipeline began in March 2008 and was carried out by China Petroleum Engineering and Construction Corporation.
