UAE plan to completely eliminate dependence on the Strait of Hormuz - media
Kyiv • UNN
The UAE is expanding ports and building pipelines to export oil bypassing the Strait of Hormuz. The plan is aimed at achieving complete energy independence.
The United Arab Emirates is developing a large-scale plan to allow the country to completely eliminate its dependence on the Strait of Hormuz for energy exports and trade. Abu Dhabi states that they are implementing the project regardless of when shipping through the strategic waterway is fully restored. This was reported by Bloomberg, according to UNN.
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UAE Minister of State for Foreign Trade Thani Al Zeyoudi stated that the country is moving toward "zero dependence" on the Strait of Hormuz.
"We are moving toward having zero dependence on the Strait of Hormuz, regardless of whether it is open or not. We hope it will quickly become fully operational, but the new plan will be implemented in any case,"
According to him, the key elements of the strategy will be the large-scale expansion of the ports of Fujairah, Khor Fakkan, and Dibba on the coast of the Gulf of Oman, as well as the construction of a new port outside the Strait of Hormuz.
In addition, the Emirates plan to invest billions of dollars in new oil pipelines, rail, and road infrastructure to connect the east coast with the country's oil and gas fields.
In particular, the UAE is accelerating the implementation of a second pipeline project to the port of Fujairah, which will double oil exports bypassing the Strait of Hormuz. The construction of a third oil pipeline and new routes for the export of liquefied natural gas and petrochemical products are also being considered.
Bloomberg notes that the war between the US, Israel, and Iran has demonstrated the global economy's critical dependence on the Strait of Hormuz, through which about 20% of global oil and liquefied gas exports passed before the conflict began.
Despite the fact that the UAE has already partially reoriented exports through the east coast, completely abandoning the use of the Strait of Hormuz will not be easy. This is especially true for LNG exports, aluminum, and a significant portion of import cargo arriving through major Persian Gulf ports.
At the same time, the country's authorities emphasize that diversifying routes is a matter of national security after Iran launched massive strikes on UAE territory during the war, some of which damaged energy and port infrastructure.
Abu Dhabi also emphasized that they advocate for the full restoration of freedom of navigation through the Strait of Hormuz and do not support Iran's intentions to introduce fees for the passage of vessels after the conflict ends.