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UAE to Double Oil Export Capacity on Hormuz Bypass Route

The United Arab Emirates will double its capacity to export crude oil through alternative routes bypassing the Strait of Hormuz by 2027, reducing exposure to supply chain disruptions at the critical waterway.

The expansion comes as regional producers face prolonged uncertainty over shipping operations through the chokepoint. ADNOC Gas, the UAE's liquefied natural gas operator, reported first-quarter earnings that beat analyst expectations despite export disruptions. The company expects to reach 80 percent capacity at its Habshan facility by the end of 2026.

Saudi Aramco's leadership cautioned that oil market turbulence could persist, though the Saudi producer has benefited from higher crude prices and its existing pipeline infrastructure that circumvents Hormuz. Both regional majors are investing in infrastructure to reduce exposure to geopolitical volatility affecting one of the world's most strategically important shipping lanes.