Halfway Progress! UAE Constructs New Pipeline Bypassing the Strait of Hormuz
Release time:
May 25,2026
On May 20, Abu Dhabi National Oil Company revealed that the expansion project of the oil pipeline avoiding the Strait of Hormuz has finished 50% of construction and is expected to be commissioned in 2027. Once completed, the crude oil export capacity will double, drastically cutting dependence on the strait channel and further safeguarding energy supply security.
The Strait of Hormuz is a crucial global energy transit passage, carrying 20% of the world’s crude oil and liquefied natural gas shipments. Navigational blockages have hindered oil exports from the Gulf area and led to rapid depletion of global crude oil reserves. The newly-built pipeline connects domestic oil fields with ports on the Gulf of Oman, steering clear of risky waters all the way and guaranteeing normal crude oil exports amid volatile regional situations.
Industry insiders pointed out that local oil production cannot recover fully in a short period even after conflicts end, exposing major flaws of single transport routes. Nations are accelerating the development of diversified energy shipping channels. Along with the UAE quitting OPEC to lift production restrictions, the global energy sector now prioritizes supply security over efficiency, reshaping the energy trade pattern across the Middle East.
Adjustments to energy routes bring practical influences to the chemical additives industry. Stabilized crude oil supply narrows price swings of fundamental chemical raw materials and eases cost pressure on rubber, plastic and lubricant additives. Diversified transportation boosts supply chain risk resistance and reduces delivery stagnation risks stemming from waterway troubles. Better stability of the energy market also ensures steady production and sales of wax additives, rubber additives and other relevant products.
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Guangzhou Zhenghao New Material Technology Co., Ltd. is a production and processing enterprise led by the production and research and development of water-based lotion environmental protection additives. The company is located in Huachuang Industrial Park, Xiancun Town, Zengcheng District, Guangzhou, as a new enterprise supported by the state.
