Project aims to eliminate concerns over future crude disruptions and mitigate potential threats
The UAE on Sunday has inaugurated the oil pipeline that runs from Habshan in Abu Dhabi to Fujairah, with a capacity to pump over 1.5million barrels of crude oil per day.
Built by Abu Dhabi’s International Petroleum Investment Company (IPIC), the $4.2bn project is a strategic move aimed at eliminating concerns over future crude disruptions, mitigating potential threats to block the Strait of Hormuz, which provides nearly fifth of the world’s seaborne oil through the Indian Ocean.
The pipeline will be transporting 70% of the country’s oil, of which a total of 500,000 barrels of oil were transported on the first day of inauguration to Pakistan.
Considered to be “a very strategic project, it gives the options to our clients to transport larger quantities [of oil]… so we have an alternative…to give us choice to have more than one trade route,” the UAE’s Minister for Energy Mohammad Bin Dha’en Al Hameli told reporters.