Full Breakdown
UAE and Iraq Deploy New Pipelines to Bypass a Closed Strait of Hormuz
6/4/2026, 8:54:10 PM
Pipeline Initiatives to Circumvent Hormuz
The United Arab Emirates announced a multi-fuel pipeline for gasoline, diesel and jet fuel that will route refined products around the Strait of Hormuz. The plan was presented by ADNOC executive vice-president for trading Philippe Khoury. At the same time, Iraq’s cabinet approved an accelerated scheme to raise crude shipments from the Kurdistan region to Turkey’s Mediterranean port of Ceyhan, targeting 770,000 bpd within three months. Both projects respond to the near-total shutdown of maritime traffic through Hormuz since the U.S.–Israeli conflict with Iran began on 28 February.
Background & Context
The Strait of Hormuz carries roughly one-fifth of global petroleum trade. Its closure has forced Gulf exporters to seek inland alternatives to avoid storage bottlenecks, field shut-ins and soaring maritime insurance costs. Saudi Arabia and the UAE already operate pipelines that bypass the chokepoint; Iraq lacks any comparable route, leaving it uniquely exposed.
Data & Statistics
UAE’s existing crude pipeline moves 1.5 million bpd; a second line under construction will double that capacity by early 2027. Southern Iraqi oil output fell 70 % to 1.3 million bpd, down from 4.3 million bpd before the conflict. Iraq aims to lift north-bound crude flow from an initial 500,000 bpd to 770,000 bpd. Oil accounts for 53 % of Iraq’s 2025 GDP, 88 % of government revenue and 91 % of merchandise exports.
Official Statements & Responses
Khoury said ADNOC is focusing on reinforcing supply channels and systems to maintain deliveries if the crisis continues. The Iraqi cabinet framed the Ceyhan corridor as a short-term lifeline for state finances while Hormuz remains closed.
Criticism & Opposition
Analysts note that Iraq’s reliance on oil—90 % of the state budget—reflects limited diversification, making the economy vulnerable to export disruptions. The absence of any alternative bypass pipeline is repeatedly cited as a structural weakness.
Conflicting Reports & Gaps
Source reliability varies; Oilprice.com assigns a 40.22 reliability score, while other outlets give no rating. Capacity figures for the UAE multi-fuel line and an exact completion date are undisclosed, creating uncertainty about when full operations will begin.
Verbatim Quotes
- “We spend a lot of time seeing how we can reinforce our channels of supply and our systems,” — Philippe Khoury, ADNOC Executive Vice President for Trading
What’s Next
ADNOC expects the second crude pipeline to be operational by early 2027 and is evaluating a west-east corridor that could serve other Gulf producers. Iraq plans to complete the Kirkuk-Ceyhan capacity boost by mid-2026, while diplomatic efforts to reopen Hormuz remain unresolved.
