The UAE plans to institute a “Zero Hormuz Dependency” plan after the disruption of the Strait this spring.
They already have a pipeline that can transit [Edit:] 1.5M barrels per day to Fujairah. They are now fast-tracking a second pipeline in parallel to double the capacity by the end of next year. A third pipeline is being considered that could transit LNG.
It’s hard for me to tell how serious these plans are. It makes a good announcement for strategic reasons. It would also provide a lot of benefit in the situation where Iran closes Hormuz again. But if traffic resumes this summer, there may be less of an incentive.
Do you think the war with Iran has changed the situation enough in the region to motivate this work? Will Iran’s choking of the Strait end up depleting its importance?
Playful-Demand2312 on
I mean even an oil pipeline as they’re planning is risky
Saudis had theirs hit in the last days of the war
Kooky_Masterpiece_43 on
Bypassing the strait will not make them invulnerable to Iran. The UAE already possesses ports that bypass the strait of Hormuz, and they were targeted, forcing them to suspend operations. Pipelines are targetable, the Nord Stream 2 incident is an example, Hungary’s Druzhba is another.
What this really teaches us is that the UAE no longer trusts the U.S.’s ability to keep the strait open or to defend it in any future engagement.
Solving the issues with Iran might be the only long-term solution here.
Catch_ME on
Oil pipelines are stationary targets. At least boats can move.
tatmona on
That make sense ,they also left OPEC,they will now follow independent policy on this !!Good and bold decision by UAE ,also Iran had hit them at most possible they can but then also they managed the crisis and used their diplomacy to overcome by the end of war, they are taking lead through diplomacy with Iran now..Iran did not hit them during last few weeks and finally now MOU is signed !!
Firecracker048 on
Yeah this was gonna be the likely outcome of all this.
Iran targeting the gulf nations is gonna backfire spectacularly
PapaSheev7 on
Good on them. I’d be doing the exact same thing seeing as how effectively Iran can shut down the strait. Piping it to the coast of Oman to bypass even the bab-el-mandeb seems like the logical choice.
Reasonable_Play4828 on
It makes sense. Having a business model is versatile and can bypass chokepoints during vulnerable times is a good way to attract investment.
Also it (hopefully) should improve connection/trade with other countries in the region.
Outside of maritime trade, one thing I’m looking out for is the creation of new pipelines that would go through Saudi Arabia.
Detroitlions81 on
If they didn’t have air defense successfully block 100% of attempts against their luxury hotels how are they expecting to protect 100% of strikes against their pipelines? Or the destination terminals of that pipeline?
By all means reduce dependence on strait of Hormuz but that alone doesn’t secure their income.
For securing their income stream they need to leverage that they are the biggest GCC ally of Israel, and take steps to prevent more Israeli preemptive strikes.
10 Comments
The UAE plans to institute a “Zero Hormuz Dependency” plan after the disruption of the Strait this spring.
They already have a pipeline that can transit [Edit:] 1.5M barrels per day to Fujairah. They are now fast-tracking a second pipeline in parallel to double the capacity by the end of next year. A third pipeline is being considered that could transit LNG.
It’s hard for me to tell how serious these plans are. It makes a good announcement for strategic reasons. It would also provide a lot of benefit in the situation where Iran closes Hormuz again. But if traffic resumes this summer, there may be less of an incentive.
Do you think the war with Iran has changed the situation enough in the region to motivate this work? Will Iran’s choking of the Strait end up depleting its importance?
I mean even an oil pipeline as they’re planning is risky
Saudis had theirs hit in the last days of the war
Bypassing the strait will not make them invulnerable to Iran. The UAE already possesses ports that bypass the strait of Hormuz, and they were targeted, forcing them to suspend operations. Pipelines are targetable, the Nord Stream 2 incident is an example, Hungary’s Druzhba is another.
What this really teaches us is that the UAE no longer trusts the U.S.’s ability to keep the strait open or to defend it in any future engagement.
Solving the issues with Iran might be the only long-term solution here.
Oil pipelines are stationary targets. At least boats can move.
That make sense ,they also left OPEC,they will now follow independent policy on this !!Good and bold decision by UAE ,also Iran had hit them at most possible they can but then also they managed the crisis and used their diplomacy to overcome by the end of war, they are taking lead through diplomacy with Iran now..Iran did not hit them during last few weeks and finally now MOU is signed !!
Yeah this was gonna be the likely outcome of all this.
Iran targeting the gulf nations is gonna backfire spectacularly
Good on them. I’d be doing the exact same thing seeing as how effectively Iran can shut down the strait. Piping it to the coast of Oman to bypass even the bab-el-mandeb seems like the logical choice.
It makes sense. Having a business model is versatile and can bypass chokepoints during vulnerable times is a good way to attract investment.
Also it (hopefully) should improve connection/trade with other countries in the region.
Outside of maritime trade, one thing I’m looking out for is the creation of new pipelines that would go through Saudi Arabia.
If they didn’t have air defense successfully block 100% of attempts against their luxury hotels how are they expecting to protect 100% of strikes against their pipelines? Or the destination terminals of that pipeline?
By all means reduce dependence on strait of Hormuz but that alone doesn’t secure their income.
For securing their income stream they need to leverage that they are the biggest GCC ally of Israel, and take steps to prevent more Israeli preemptive strikes.
Pipelines are more vulnerable than ships tho