UAE may export its oil without passing through the Strait of Hormuz in June
The pipeline will allow the UAE to export most of its oil without passing through the Strait of Hormuz and thus escape the Iranian threats, will be operational in June, announced a UAE leader.
“The pipeline will start in June,” said Sheikh Hamad bin Mohammed Al-Sharqi, Emir of Fujairah, the only emirate in the federation which is located on the shores of the Gulf of Oman.
The construction of this pipeline length of 360 kilómetrps began in 2008 in order to avoid passing through the Strait of Hormuz, which links the oil-rich Gulf, the Arabian Sea.
Its capacity will be “1.8 million barrels a day,” ie, 70% of production in the UAE, a member of the Organization of Petroleum Exporting Countries (OPEC), which produces 2.5 million barrels daily.
The pipeline will drive the oil from the Habshan fields in the Emirate of Abu Dhabi, in the west to the port of Fujairah.
All exports of Bahrain, Kuwait, Qatar, UAE and even Iran pass through the Strait of Hormuz. Most of Iran’s oil and also use this road as part of crude from Saudi Arabia.
Iran has threatened in recent months to close the Strait of Hormuz if it had some kind of international sanctions against its oil exports.
Category: Forex
