A ‘fast track’ project to build an oil pipeline that would cross the UAE looks set to go ahead amid continuing worldwide tension over Iran.
The pipeline would cross the UAE and eliminate the need to export oil along the Strait of Hormuz, through which around 40% of the world’s supplies are transported.
Were worldwide tensions with Iran to escalate, and the strategic Strait be blocked or become too dangerous to navigate, the pipeline – which has the capacity to transport 1.5 million barrels per day (bpd) – would allow Abu Dhabi to continue exporting oil.
The project has been on the drawing board for some time but it was announced last night that an agreement on the implementation of the Abu Dhabi Crude Oil Pipeline (ADCOP) Project had been signed.
Abu Dhabi-owned International Petroleum Investment Company (IPIC) has signed a cooperation agreement with the China Petroleum Engineering & Construction Corporation (CPECC) concerning the pipeline, although the deal has not yet been finalised.
“In order to complete the project on a fast track basis, the parties have signed today a 'facilitation agreement' under which CPECC will provide certain services, as requested by IPIC, prior to the finalisation of the EPC contract,” reported the Emirates News Agency, WAM.
The project will involve the construction of a 360km, 48-inch diameter pipeline with a capacity of transporting 1.5 million bpd of crude from Habshan in Abu Dhabi to Fujairah, and will include storage and terminal facilities for crude export.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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