Gulf Producers Accelerate Seven Projects to Bypass Strait of Hormuz
Gulf oil producers are accelerating at least seven pipeline and export projects to reduce dependence on the Strait of Hormuz as Iran's blockade and renewed fighting disrupt energy trade. The projects could add 3.8 million barrels a day of bypass capacity by the end of 2027 and 7.3 million by the end of 2028. A $3 billion, 300-kilometer UAE line to Fujairah is about halfway complete and is designed to add more than 1.2 million barrels a day. Existing Saudi and Emirati bypass lines are running near full capacity, while Iran-backed Houthi threats also put Red Sea alternatives at risk.