Tags: Hormuz | Oil | Pipeline | Iran

UAE Delays Oil Pipeline to Bypass Hormuz

Monday, 09 Jan 2012 10:01 AM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The United Arab Emirates has delayed the launch of a crucial oil pipeline to bypass the Straits of Hormuz to mid-2012, which analysts said would add to supply worries at a time when Iran threatens to block the strait for the entire Gulf's oil.

Oil prices have remained elevated in recent weeks as Iran has threatened to block the strait should the West impose tougher sanctions on its oil industry as part of a standoff over Tehran's nuclear program.

The narrow strip of water that separates Oman and Iran is the world's most important oil shipping lane, which connects the biggest Gulf producers such as Saudi Arabia, Iran, Iraq and the United Arab Emirates with world markets.

Flows through the strait are estimated at around 15 million to 17 million barrels per day (bpd), or just under a fifth of global supplies, and a new pipeline would bypass it to carry most of the UAE's oil, 1.5 million bpd, to global markets.

"The pipeline is almost complete. Hopefully it will be operational within six months, by May, June," the UAE's oil minister, Mohammed bin Dhaen al-Hamli, told reporters on the sidelines of an energy conference in Abu Dhabi.

The previous deadline for the Abu Dhabi Crude Oil Pipeline (ADCOP) project was set in April.

"There is delay; it is a lot of work. It is not only construction of the project. but it also has to be filled," Hamli said, adding that its capacity could go up to 1.8 million bpd.

The first tests have been done on the pipeline, industry sources said, adding that the first cargo from Fujairah was scheduled for May.

"Iran's announcement that it will carry out another round of military exercises in the Strait of Hormuz in February kept crude prices near two-month highs last week," said David Wech from JBC Energy consultancy, adding that news about the UAE's pipeline delay was "adding to supply concerns."

The pipeline would link state oil firm Abu Dhabi National Oil Company's Habshan oilfields to the port of Fujairah, one of the top three bunkering hubs and a major oil storage terminal outside the Straits and on the Gulf of Oman.

Abu Dhabi government-owned International Petroleum Investment Company (IPIC) is undertaking the project, and China Petroleum Engineering & Construction Corporation is the engineering, procurement and construction contractor (EPC).

© 2014 Thomson/Reuters. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Okla., Neb. Sue Colorado Over Pot Fallout

Thursday, 18 Dec 2014 19:30 PM

Colorado's neighbors Oklahoma and Nebraska filed a lawsuit in the US Supreme Court Thursday protesting that the western  . . .

Mike McCaul: Sony Hack Shows Need for Rules on Cyberwarfare

Thursday, 18 Dec 2014 18:19 PM

The cyberattack on Sony Pictures reveals the need for clearer rules on cyberwarfare, Rep. Mike McCaul says. . . .

Sony Hack Sheds Light on Racism in Hollywood

Thursday, 18 Dec 2014 15:40 PM

Hollywood liberals' blatant racism once again is on embarrassing display thanks to the hacking of Sony Pictures Entertai . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved