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FINANCIAL NEWS
UAE’s oil pipeline bypassing Strait of Hormuz ready by mid-2012
10 Jan 2012
(MENAFN) UAE Minister for Energy, Mohammad Bin Dha’en Al Hameli, said that by mid-2012, the oil export pipeline which would bypass the strategic Strait of Hormuz, would be completed and operational, reported Gulf News.
Al Hameli added that the USD3.3 billion, 370 km pipeline would extend from Habshan in Abu Dhabi to Fujairah, adding that the commissioning of the 1.5 million-barrel-per day (bpd) pipeline would take place within a month.
He also said that the project would ensure safe transfer of the UAE’s crude oil exports in case Iran closes the Strait of Hormuz, due to increasing tensions with the West over its controversial nuclear program, adding that the pipeline would give Abu Dhabi direct access to the Indian Ocean for its oil exports.
It is worth noting that the new pipeline, owned by the International Petroleum Investment Company, an investment arm of the government of Abu Dhabi, will reduce shipping costs for the UAE’s oil exports, as shippers charge a premium due to the war risk for entering the Gulf.
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