Arab Today, arab today tiny emirate could save gulf oil exports
Last Updated : GMT 09:09:51
Arab Today, arab today
Arab Today, arab today

Tiny emirate could save gulf oil exports

Arab Today, arab today

Arab Today, arab today Tiny emirate could save gulf oil exports

Dubai - UPI

Amid simmering tensions in the Persian Gulf standoff between Iran and the United States, the barely known, tiny emirate of Fujairah is set to become a strategic outlet for oil exports if Iran shuts down the choke point Strait of Hormuz. Oil-rich Abu Dhabi, the economic powerhouse of the United Arab Emirates that includes Fujairah, has just about completed construction of a 237-mile pipeline from its main oil fields to Fujairah on the Gulf of Oman. The port lies outside the southern end of the narrow 112-mile strait through which around 35 percent of the world\'s oil passes. That gives it major strategic importance, since supertankers would be able to load there on the edge of the Indian Ocean without entering the strait. Tehran has said it would close the strait if the Islamic Republic is attacked because of its contentious nuclear program, or if international sanctions first imposed in mid-2010, and steadily tightened ever since, choke off its vital oil exports. And right now, that\'s what happening, so Fujairah could become a pivotal facility in the global oil supply system. \"There\'s a recognition that it\'s a strategic asset having an outlet on the Indian Ocean,\" commented Robin Mills of Manaar Energy Consulting and Project Management in Dubai, the emirates\' financial center. The 48-inch-diameter pipeline will have an initial capacity of 1.5 million barrels per day. That\'s expected to increase later to 1.8 million bpd, most of the United Arab Emirates\' production. The United Arab Emirates, a confederation of seven emirates, is the third largest exporter in the Organization of Petroleum Exporting Countries after Saudi Arabia and Iran. It produces around 3 million bpd. Fujairah has been emerging as a major refueling port. It contains more than 100 fuel silos and oil storage tanks that can hold 1 million barrels of crude. Fujairah seeks to become one of the world\'s biggest oil supply hubs. It plans to double its storage capacity by 2014 now that the Abu Dhabi pipeline is about to start operating. A Singapore oil trader plans to build a 1.125 million bpd storage zone by 2014 and the local Primestar Energy is expected to complete a 640,000 bpd storage project by 2013. On top of that, a $3 billion, 200,000 bpd refinery is also planned by the Abu Dhabi International Petroleum Investment Co., which is building the pipeline. In March, another Abu Dhabi government-backed concern, Mubadala Development Co., announced it will build a liquefied natural gas terminal for domestic use. The Fujairah projects won\'t, initially, be available to the other Arab monarchies along the western shore of the gulf. They\'re not connected to the new pipeline and it\'s not clear at this stage whether they seek to be. But the pipeline will be able to keep the United Arab Emirates exports flowing if Iran does try to close the strait. Saudi Arabia has pipelines running westward across the Arabian Peninsula from its gulf coast oil fields to the Red Sea port of Jeddah but they can\'t handle anywhere near the kingdom\'s output of nearly 10 million bpd, higher than usual to compensate for the loss of Iranian exports because of Western sanctions. Nor will they be of any help to Iraq or Kuwait, or Qatar\'s vast natural gas exports. Iraq has pipelines running north to the Turkish Mediterranean terminal at Ceyhan but most of its exports are currently shipped south through the gulf and Hormuz. Redirecting this northward, should the need arise, will mean new pipelines to connect the southern fields to twin pipelines running from Kirkuk in the north to Turkey. All this will take time and billions of dollars. Apart from opening up the Fujairah route, with its limited capacity, none of the gulf Arab states appears to be making any move to find alternative export routes. Iran itself, struggling against ever-tightening international sanctions, is reported to be planning to build a new oil export terminal at Jask, on the Arabia Sea to bypass Hormuz along with a pipeline network from its fields. But that too will take time and there may not be much of that. Whether the gulf\'s oil supplies continue to flow through Hormuz is likely to be decided at a meeting between Iran and its U.S.-led adversaries in Moscow Monday and Tuesday.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today tiny emirate could save gulf oil exports Arab Today, arab today tiny emirate could save gulf oil exports

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today tiny emirate could save gulf oil exports Arab Today, arab today tiny emirate could save gulf oil exports

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today What's the reason and what you can do

GMT 05:44 2017 Sunday ,22 October

What's the reason and what you can do
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Prayers turn to nightmare

GMT 06:14 2017 Sunday ,22 October

Prayers turn to nightmare
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 10:18 2017 Saturday ,21 October

How to do open-heart surgery

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday