UAE eyes June opening for pipeline bypassing Hormuz

Monday 28 May 2012 ARABNEWS

FUJAIRAH: A pipeline being built by the United Arab Emirates to pump most of its oil exports from east coast terminals bypassing the Iran-threatened Strait of Hormuz, will be operational in June, the ruler of Fujairah said in an interview.
“The pipeline will be operational in June,” said Sheikh Hamad bin Mohammed Al-Sharqi, whose east-coast emirate is one of seven that make up the UAE.

Construction of the 360-kilometer (225 miles) pipeline began in 2008. The pipeline will have an initial capacity of 1.5 million barrels per day rising to 1.8 million bpd, which represents the bulk of the UAE’s current production of around 2.5 million bpd, Sheikh Hamad said. The Habshan-Fujairah pipeline will carry oil from fields in Abu Dhabi on the Gulf to Fujairah on the Gulf of Oman.

Fears of a closure of the Strait of Hormuz intensified in recent months after Iran threatened to close the strategic outlet to the Gulf if Western governments kept up their efforts to choke off its oil exports in a bid to rein in its controversial nuclear program.

In addition to the exports of the UAE and Iran itself, all the oil exports of Bahrain, Kuwait and Qatar are shipped through the waterway. Iraq also pumps the bulk of its exports through ports on the Gulf.

FROM: Agence France Presse

NOTE FROM THE EDITOR: Seems to be a ‘long-term plan’ …

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