Adnoc tells clients new Hormuz bypass pipe to start early 2027

Abu Dhabi National Oil Co. has told some Asian refiners that part of their supply from offshore fields is likely to be delivered through a new pipeline early next year, the latest timeline for the conduit that will help the company avoid the disrupted Strait of Hormuz.

The United Arab Emirates’ biggest oil producer has indicated it may start supplying some Upper Zakum crude, produced from fields inside the Persian Gulf, to term customers from the Fujairah terminal in the initial months of 2027, people familiar with the matter said, asking not to be named as they aren’t authorized to speak to the media. Adnoc said in May that it was accelerating construction and the pipeline would be ready next year, without providing more details.

The oil will be delivered at Fujairah under term agreements which are renewed annually, enabling buyers to load supply without needing to send vessels through the Strait of Hormuz that’s still under threat from Iranian attacks. The under-construction pipeline would allow Adnoc to double its capacity to circumvent Hormuz, part of the UAE’s plan to move its economy toward zero reliance on the waterway.


Adnoc declined to comment.

The link, along with another conduit run by Saudi Arabia, emerged as lifelines for the oil market during the war. Adnoc currently operates one pipeline that delivers Murban crude produced from its onshore fields to Fujairah. Offshore crudes such as Upper Zakum are sold through tenders, with customers loading at locations just outside the Strait of Hormuz after cargoes are shuttled out through the waterway.

The new pipeline’s start would also follow the UAE’s decision to exit the Organization of Petroleum Exporting Countries. No longer bound by the group’s production limits, the country had said previously that that it will be able to respond more nimbly to market demands.