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  • » 03/21/2007, 00.00

    UNITED ARAB EMIRATES – IRAN

    UAE pipelines to avoid Iranian threats



    The goal is bypass the Strait of Hormuz which Tehran has threatened to close should tensions with the West worsen over the nuclear issue. Once built, pipelines might knock down oil prices.

    Dubai (AsiaNews) – Gulf governments are planning two oil pipelines that would bypass the Strait of Hormuz, aiming to avoid possible Iranian threats to global oil shipments.

    In reporting the news the Kuwait Times said that, if built, the two pipelines could move as much as 6.5 million barrels of oil a day around the strait, an amount equal to nearly 40 per cent of the daily exports currently shipped through the narrow channel at the entrance of the Gulf.

    Construction of the first, smaller line is forecast to begin this year, the Dubai branch of Britain's Standard Chartered Bank announced this week.

    A second, more ambitious line carrying some 5 million barrels a day is still under discussion and could take a decade to build.

    The attraction of the plan for oil traders is easy to understand. Around two-fifths of the world's traded oil is shipped by tanker through the Hormuz Strait. But the 54-km-wide passage is highly vulnerable to threats from neighbouring Iran. With tensions rising between Iran and the West over its nuclear programme, Iran's supreme leader Ayatollah Ali Khamenei warned last June that his country could disrupt the world's oil supply if it comes under attack.

    Bypassing the Strait of Hormuz could also stabilise oil prices. The new pipelines would reassure traders over the stability of exports and knock down the few dollars per barrel they have to pay in “security premium.”

    The first, 360-km pipeline that Abu Dhabi's International Petroleum Investment Co is planning would carry only UAE oil to the emirate of Fujairah, located outside the strait on the Gulf of Oman. It would involve 1.5 million barrels per day of crude oil, about 55 per cent of the Emirates' production.

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    See also

    29/05/2008 UNITED ARAB EMIRATES – IRAN
    UAE and Iran at loggerheads over three tiny Gulf islands
    Occupied by Iran the islands are located in the Strait of Homruz and have great strategic value. Iran rejects Russian mediation and international arbitration as requested by the UAE.

    10/09/2008 UAE - IRAN
    Arab League condemns Tehran for occupation of islands in Strait of Hormuz
    Full support for the protest of the Emirates. For its part, the Gulf Cooperation Council is again asking that the question be resolved through international arbitration.

    30/10/2008 IRAN - UAE
    Tehran, Abu Dhabi set up joint committee on economy, disputed islands
    The agreement is aimed at a general reinforcement of relations between Iran and the Emirates. The disputed islands have a purely strategic value. The regime of the mullahs announces the creation of a naval base to control traffic through the Strait of Hormuz.

    04/09/2008 GULF – IRAN
    Gulf Council backs UAE against Iran
    Six Arab countries call on Tehran to remove illegally built offices on Abu Musa Island and open talks over sovereignty. Iran’s reply is full of scorn.

    16/07/2012 UNITED ARAB EMIRATES
    Abu Dhabi responds to Iranian threats with pipeline that bypasses the Strait of Hormuz
    The facility runs from the oil fields of Abu Dhabi to Fujairah, on the Indian Ocean. Its first shipment included 500,000 barrels for a Pakistani refinery. It can carry up to 1.5 million barrels a day. Tehran dismisses the pipeline as Western propaganda to reduce the importance of the Strait of Hormuz.



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