The UAE media reported recently the long awaited operation of the Habshan-Fujairah crude oil pipeline thereby enabling the UAE to export a large portion of its oil without passing through the traditional sea route of the Strait of Hormuz.
The pipeline is 48 inches in diameter and 350 kilometres in length and it will deliver 1.5 million barrels a day (mbd) to the loading terminal at the port of Fujairah. It was constructed at a cost of over $2.7 billion (Dh10 billion). Official statements indicated that the capacity can be increased to 1.8 mbd at a later stage.
The media and most analysts have concentrated on the strategic importance of the pipeline and its operation with the heightened tension in the region as the confrontation between the West and Iran intensifies. Iran has threatened many times to close the Strait of Hormuz in case of war or the stoppage of its exports through sanctions.
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