Business & Economics
Gulf States Fast-Track Seven Pipeline Projects to Circumvent Strait of Hormuz
Between 20-23 July 2026, Saudi Arabia, the UAE and Iraq moved multiple pipeline expansions onto accelerated wartime timetables that could reroute up to 7.3 million barrels per day of Gulf crude away from the now-shuttered Strait of Hormuz by 2028.
Focusing Facts
- Goldman Sachs projects 3.8 mb/d of new bypass capacity online by end-2027 and 7.3 mb/d—roughly 60 % of the Gulf’s pre-war 23 mb/d exports—by end-2028.
- The UAE’s $3 billion, 300 km Habshan-Fujairah ‘West-East’ pipeline is 50 % built; ADNOC has been ordered to finish it by mid-2027, doubling the country’s non-Hormuz export capacity to ≥3.6 mb/d.
- Iraq, with U.S. backing, is negotiating twin Mediterranean corridors—Basra-Haditha-Ceyhan and Basra-Haditha-Baniyas—each targeting up to 2 mb/d, after war losses cut its output to 1.9 mb/d in June.
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