ADNOC Denies Report of Third Fujairah Pipeline Open to Other Producers

By Priya Raman

Abu Dhabi National Oil Co. has rejected a Bloomberg report that it is weighing a third crude pipeline to Fujairah, a line that could reportedly be opened to producers beyond the UAE and roughly add to bypass capacity around the Strait of Hormuz. ADNOC's denial was blunt. The company told Bloomberg the report was inaccurate and purely speculative. No cost estimate or timeline accompanied either the original report or the denial.

What did the report actually claim?

Bloomberg reported on Wednesday, citing people familiar with the matter, that ADNOC was considering a new line from the UAE's western coast to Fujairah, the export terminal on the Gulf of Oman that sits outside the strait (the chokepoint between the Persian Gulf and open sea). Two details stood out.

• The pipeline could be made available to third parties, not just ADNOC's own barrels.
• ADNOC had described the plan to some Asian customers, though the project was not finalised and its route could change.

That third-party element is the whole story. ADNOC already runs a pipeline from its western onshore fields to Fujairah with capacity of about 2 million bpd, and a second line due in 2027 would roughly double that throughput. Both lines serve ADNOC's own exports. A shared line would instead turn the UAE from a country avoiding Hormuz into one selling a way around it.

Takeaway: this was an idea floated to customers, not a sanctioned project, and ADNOC now says it isn't happening.

What is confirmed, and what is not?

The 2027 second line is the concrete item. ADNOC said in May it is accelerating that project, and has told some Asian refiners it could supply cargoes at Fujairah from early 2027. That is sanctioned, scheduled capacity. The third line is appraisal-stage talk at best, and now denied. The distinction matters for anyone modelling Hormuz bypass volumes (the amount of crude that can reach export markets without transiting the strait).

The regional picture is real regardless. The UAE has pursued pipelines, rail, roads and at least three eastern ports since leaving OPEC in May, all aimed at reducing reliance on the strait. Saudi Arabia plans to expand its East-West pipeline, and Kuwait is in talks with both countries about alternative routes.

Takeaway: neighbours are all hedging Hormuz, but only the UAE's second line carries a firm startup date.

Would a shared bypass line change the market?

Analysts' argument, not company guidance, holds that a shared line would chip away at the Hormuz risk premium over time by giving Gulf producers beyond the UAE a route to market avoiding the strait. With ADNOC's denial, the report is unlikely to move crude prices near term. The premium stays anchored to shipping attacks and transit volumes through the strait itself.

Two caveats temper even the bullish read on bypass capacity. First, the 2027 line eases Asian buyers' exposure to Hormuz disruption, but it serves UAE barrels only. Second, the bypass infrastructure itself is part of the risk. Hormuz was almost shut at the height of the Iran war, and while traffic has recovered, ships are still frequently targeted. Fujairah has been attacked several times during the conflict, and Saudi Arabia's East-West line was briefly halted after an attack in September. Capacity outside the strait does not guarantee safety from it.

Takeaway: a denied pipeline moves no barrels; the 2027 line is the supply factor worth tracking, and even it sits in a war zone's reach.

The watch item

Early 2027, when the second Fujairah line is due to begin supplying cargoes, is the date that could shift Asian crude logistics. Watch also whether ADNOC's denial holds, or whether a third-line plan resurfaces with cost figures and a route. Denials of unfinalised projects have a way of aging poorly.