Friday 27 January 2012

UAE Hormuz bypass pipeline faces more delay

A strategic pipeline for United Arab Emirates’ oil exports to bypass the Strait of Hormuz could face more delay due to differences with the Chinese construction company, industry sources told Reuters on Thursday.

The pipeline will have a capacity of around 1.5 million barrels per day (bpd) and give the UAE an alternative route to exporting oil via the strait, which Iran has threatened to block over western sanctions on its oil exports.

The 370-km (231-mile) Abu Dhabi Crude Oil Pipeline has undergone numerous delays, with UAE oil minister Mohammed bin Dhaen al-Hamli this month pushing back the start of operations to May or June.

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