As Iran continues to attack vessels and restrict navigation in the Strait of Hormuz, Middle Eastern oil producers are accelerating the construction of oil pipelines and ports to bypass the strait.
According to reports from foreign media outlets including the New York Post on July 14, the United Arab Emirates (UAE) and Iraq are working on new pipelines that will allow them to export crude oil without passing through the Strait of Hormuz. Saudi Arabia is also considering expanding the capacity of its existing pipelines, while the UAE is planning to build a new port along the Arabian Sea coast.
Alexandra Paulus, an analyst at Goldman Sachs, projected that by the end of 2027, pipeline capacity could be established to divert up to 45% of pre-war Persian Gulf oil exports away from the Strait of Hormuz.
By the end of 2028, it is expected that oil transported without passing through the strait could reach 7.3 million barrels per day, meaning that approximately 60% of Gulf oil exports could be unaffected by the Strait of Hormuz.
The UAE's 'West-East Pipeline' is currently about 50% complete. Khalid bin Mohammed bin Zayed, the Crown Prince of Abu Dhabi, has reportedly instructed that the project be completed by 2027.
This pipeline, which will stretch 252 miles (approximately 406 kilometers), is set to operate alongside the existing Fujairah pipeline. Once completed, the UAE's capacity to transport oil via land will double to 3.6 million barrels per day.
In Iraq, the construction of the Basra-Haditha pipeline, which will span 435 miles (approximately 700 kilometers), is underway. This pipeline will connect Basra to Jordan, Syria, and Turkey and is designed to transport 2.5 million barrels of oil per day.
According to the Iraqi Ministry of Oil, construction began in early May and is expected to cost around $1.5 billion (approximately 2.236 trillion won). However, a specific completion date has not yet been determined.
Saudi Arabia is also reviewing plans to expand the capacity of a pipeline from its eastern oil fields to the Red Sea to 9 million barrels per day. Initial discussions with neighboring countries are reportedly ongoing.
The UAE is also pursuing plans to build a new port and container terminal on the Arabian Sea side of the Strait of Hormuz. Once the new port is established, vessels will be able to transport goods to the region without passing through the strait, further reducing the UAE's dependence on it.
However, even with the completion of the pipelines and ports, it is expected to be challenging to completely eliminate Iran's influence. Between 7 million and 9 million barrels of crude oil and petroleum products will still need to pass through the Strait of Hormuz, and some alternative pipelines will depend on the stability of the Red Sea route.
The New York Post recently reported that the Iranian-backed Houthi rebels in Yemen have warned of attacks on the Bab-el-Mandeb Strait, indicating that uncertainties remain even for alternative transport routes.
* This article has been translated by AI.
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