UAE Pipeline Delayed

The UAE's pipeline to bypass the Straits of Hormuz is behind schedule.

A pipeline which will allow oil from the Emirates to bypass the Straits of Hormuz will not be online for four months, according to the UAE’s oil minister, Mohamed al-Hamli. The delay is especially relevant now with Iranian threats to blockade the Straits. The facility, which will be able to handle 1,5m barrels per day, was originally scheduled to be completed in 2011. UAE officials say that the 370km long pipeline is already completed and some minor work remains to be done in the storage area and off-shore export terminal in the Gulf of Oman. Saudi Arabia already has a pipeline in place to bypass the Straits, but it does not have the capability to handle the country’s entire output. About 14 tankers pass through the Straits every day.

Links:

http://www.ft.com/cms/s/0/03b9dc16-3ab0-11e1-a756-00144feabdc0.html?ftcamp=rss#axzz1izfKfpng

http://www.businessweek.com/news/2012-01-09/hormuz-bypass-oil-pipeline-is-delayed-amid-iran-tensions.html