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FINANCIAL NEWS
UAE officially inaugurates Habshan-Fujairah oil pipeline
16 Jul 2012
(MENAFN) Fujairah municipality’s director general, Mohammed Saif al-Afkham, announced that the UAE inaugurated the Habshan-Fujairah pipeline, established to export oil without passing through the Strait of Hormuz, reported AP.
Al-Afkham said that the first commercial shipment was loaded onto a tanker for export; therefore, the 380-kilometer Abu Dhabi Crude Oil Pipeline became officially operational.
The pipeline was established to transfer at least 1.5 million barrels per day (bpd) of crude, with capacity forecasted to grow to 1.8 million bpd in time.
The pipeline, managed by the state-run International Petroleum Investment Co., will permit the UAE to export around 2-thirds of its peak output through the eastern port city, once the pipeline is operating at full capacity.
It is worth noting that the Strait of Hormuz is patrolled by Iranian warships in addition to the US Navy and its allies. Nearly 17 million bpd of oil or a fifth of the world’s oil supplies, pass through the narrow strait.
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