ADNOC to double Fujairah export capacity and urges global action to protect Strait of Hormuz
ADNOC will double Fujairah export capacity with a second pipeline and calls for protection of the Strait of Hormuz while pushing for greater global energy investment.
The UAE’s national energy company ADNOC said it is accelerating plans to expand export capacity through Fujairah and urged international action to safeguard freedom of navigation in the Strait of Hormuz. Dr. Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC’s Managing Director and Group CEO, outlined the measures and investment priorities during a discussion hosted by the Atlantic Council published on the AC Front Page podcast. He said the moves aim to strengthen global energy resilience and keep supplies flowing to markets worldwide.
ADNOC to double Fujairah export capacity with second pipeline
ADNOC confirmed construction of a second pipeline that will bypass the Strait of Hormuz to increase export throughput via Fujairah. The company said work began in 2025, the project is roughly half complete, and efforts are under way to finish the pipeline in 2027.
The new pipeline is intended to reduce dependency on a small number of chokepoints for global oil shipments and to provide customers with more reliable access to UAE crude. ADNOC stressed the move complements broader supply-chain and storage measures designed to bolster regional and global energy security.
ADNOC five year capital plan underpins expansion
ADNOC reaffirmed its five year capital investment programme of 551 billion dirhams, equivalent to about 150 billion US dollars, as the financial backbone for operational improvements and growth. The company said this programme will support projects across the value chain, from production to export and downstream handling.
Company officials described the capital plan as central to delivering low cost, lower emission energy and to meeting growing demand while expanding strategic infrastructure. That funding, they said, also enables accelerated execution of the Fujairah pipeline and related export facilities.
Investment shortfall threatens global oil and gas supplies
Dr. Al Jaber warned that current investment in exploration, development and production—estimated at roughly 400 billion dollars per year—is insufficient to offset natural declines and to meet future demand. He urged governments and companies to increase spending across all stages of the energy value chain to avoid tightened supplies.
ADNOC highlighted global reserve production capacity at about three million barrels per day, calling for that buffer to be nearer five million to reduce vulnerability. The company pointed to a recent two month period in which roughly 250 million barrels were drawn from inventories, leaving global stocks sufficient for only around 30 to 35 days of consumption.
Disruptions through the Strait of Hormuz ripple across economies
Al Jaber outlined far-reaching consequences when transit through the Strait of Hormuz is interrupted, noting impacts beyond crude oil to include LNG, jet fuel, fertilisers, aluminium, helium, metals and plastics. He said disruptions have driven near-term price spikes and supply-chain pressure across multiple industries.
Citing recent market responses, ADNOC referenced rises of roughly 30 percent in fuel costs, 50 percent in fertiliser prices and 25 percent in airfares, and said nearly 80 countries had enacted emergency measures within about 80 days of the outbreak of hostilities. The company urged an immediate end to actions that obstruct global trade and called on international leaders to reinforce protections for maritime routes.
UAE exits OPEC and deepens strategic international partnerships
Speaking about strategy, Al Jaber reiterated that the UAE took a sovereign decision in late April to leave the OPEC framework, describing the step as a move to enhance national flexibility in investment, growth and partnerships. He emphasised the decision was made with a clear policy objective to provide low cost, lower emission supplies to global customers.
Al Jaber also stressed the depth of economic ties with the United States, noting UAE investments exceeding 3.67 trillion dirhams across a wide range of sectors. He said ADNOC, XRG and Masdar together hold more than 312 billion dirhams of energy-related investments in 19 US states, underscoring long‑term strategic cooperation.
ADNOC diversifies into AI infrastructure and critical industries
Beyond hydrocarbons, ADNOC is accelerating international diversification into data centres, artificial intelligence infrastructure, semiconductors, advanced manufacturing and critical minerals. Company leadership argued that integrating digital technologies and AI into operations improves decision making and operational resilience during crises.
Al Jaber warned that the global rollout of large scale AI and data processing will sharply increase electricity demand, projecting data‑centre consumption could approach one thousand terawatt hours by the end of the decade. He said the race for AI leadership is increasingly a contest for reliable, scalable and affordable power, and that countries with robust energy and infrastructure will hold a strategic advantage.
The UAE reiterated that ADNOC can raise crude output within weeks if required, and that restoring flows through the Strait of Hormuz to roughly 80 percent of prior levels may take about four months after a conflict ends, with a full return possibly not until the first half of 2027. The company also invited energy sector leaders to participate in the ENACT forum and to attend ADIPEC 2026 in Abu Dhabi this November to coordinate resilience and investment strategies.
The message from ADNOC and UAE authorities was clear: governments and industry must act now to expand infrastructure, increase investment across the energy value chain and protect key maritime corridors if the world is to avoid prolonged supply disruptions and escalating costs.
