(United Arab Emirates)— On Sunday, July 15th, the United Arab Emirates (U.A.E.) commenced transporting crude oil through a newly commissioned pipeline running from the Port of Fujairah in the northern part of the country to Habshan, a commercial energy transit point in the oil-rich emirate of Abu Dhabi. Initially, the $3.3 billion project—known as the Abu Dhabi Crude Oil Pipeline project (ADCOP)— is set to support up to 1.5 million barrels per day (bpd), or about one half of the U.A.E.’s daily crude oil production. The pipeline, which holds regional and global significance as a viable alternative to the Strait of Hormuz in the Arabian Gulf, is gaining international attention as a strategic option for crude oil transportation if security in the Gulf is compromised.
In a recent interview with Bloomberg, Danny Sebright, president of the U.S.-U.A.E. Business Council, underscored the strategic importance of ADCOP to energy security in the broader Middle East North Africa (MENA) region and encouraged other countries in the region to explore alternative transport options:
“This is a significant step to maintain the flow of oil if there is ever an issue of security around the Gulf,” said Sebright in the interview. “The opening of this pipeline will spur others to give careful consideration to similar plans that may have been put on the shelf.”
In addition to providing an alternative route for crude oil, ADCOP is positioned to catalyze rapid economic development in Fujairah, an emerging energy hub in the MENA region and a relatively developed emirate. On a grander scale, the infrastructure required to support the project will contribute to the federal economic development of the U.A.E. in line with the leadership’s U.A.E. Vision 2021 and Abu Dhabi 2030 plans.
Operationally, the pipeline is set to boost the United Arab Emirates’ stance as a leader in energy security in the Middle East North Africa (MENA) region and reaffirm the country’s commitment to maintaining peace and security in the Gulf—a mission the U.A.E. shares with the United States and other key allies around the world.
Please also find today’s latest reporting in the National regarding the operation of the new pipeline at http://www.thenational.ae/business/energy/abu-dhabis-new-pipeline-delivers-first-cargo-of-oil .
