The US$3.3 billion oil pipeline to the UAE’s easternmost emirate, Fujairah, that aims to “bypass” the Strait of Hormuz could be completed by the end of this year, said the nation’s oil minister in an interview in Washington, according to Bloomberg.
The pipeline, which will avoid sending oil through the risky Strait using tankers, will carry about 1.5 million barrels of oil a day, according to Mohamed Al Hamli.
The area is regionally sensitive with Iran, which lies across the Gulf, threatening to block the Strait if attacked because of its nuclear programme.
The congested waterway lies at the mouth of the Arabian Gulf and accounts for a fifth of the world’s oil supply route.
The oil minister said that the pipeline will aim to ease pressure on ships coming into the Gulf.
The UAE is the fourth largest crude producer in the Organization of Petroleum Exporting Countries, which next meets Oct 14 in Vienna.
