Fujairah oil port to become fully operational by year end

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Aerial view of Fujairah port. Photo – Fujairahport.ae

The Abu-Dhabi – Fujairah pipeline, bypassing the Strait of Hormuz, is expected to be fully operational by the end of the year and will carry Abu Dhabi’s oil exports, the UAE’s oil minister told reporters on the sidelines of the World Economic Forum in Dubai.

The 370-km pipeline carries oil from the emirate of Abu Dhabi to a major oil storage and fuel bunkering hub on the east coast. The new terminal storage tanks are built to hold a capacity of one million barrels each.

Threatened by Iran to block the world’s biggest oil shipping lane, the Strait of Hormuz, the UAE decided to open the pipeline to pump about 1.8 million barrels a day (bpd). It shipped its first export cargo in July. However, since some of the cargoes are returning to the UAE, the Fujairah terminal has not yet become fully operational for handling all the exports.

Mohammed al-Hamli said: “We also want to test the tolerance of the pipeline. If we have to export extra we push it through to see how much is sustainable.”

“Our refineries also take crude from onshore so we have to cater for our two refineries and then what’s available  will be exported through Fujairah,” he added.

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