Tuesday, July 03, 2012

Fujairah Pipeline

There will finally be an oil pipeline across the Musandam Peninsula:
"A pipeline that will carry the bulk of Abu Dhabi's crude to the port of Fujairah - bypassing the strategically sensitive Strait of Hormuz - will be operational this month, a senior Abu Dhabi National Oil Company (Adnoc) official said...
"The pipeline's initial capacity will be 1.5 million barrels per day (bpd), with a maximum capacity of 1.8 million bpd...
"The pipeline's strategic purpose lies in its ability to channel all 1.4 millions bpd of crude from Abu Dhabi's onshore fields to the Fujairah export hub outside the Arabian Gulf, thus bypassing the Strait of Hormuz. Iran has threatened to block the waterway in response to western pressure over its nuclear programme."
At present, there are no plans to use the pipeline for non-Emirati oil.  Using overland routes to avoid choke points has a history in the Indian Ocean, and was one of the way people undermined the Portuguese choke point-oriented strategy to dominate the region in the 16th century.

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