(MENAFN- Khaleej Times) Abu Dhabi now has the potential to export more than 1.5 million barrels of crude oil through the seafront of Fujairah - bypassing the Strait of Hormuz - as the emirate launched its new oil pipeline on Sunday.
"The mega project opening may increase the capacity to 1.8 million barrel per day this year," said UAE Energy Minister Mohammed bin Dha'en Al Hamili.
Addressing at a Press conference after inaugurating the Abu Dhabi-Habshan oil pipeline, he said the qualitative shift will create safe fields for exporting UAE oil from Abu Dhabi to the global markets.
"The pipeline project will contribute to increase the proportion of the crude export. UAE now has options to export its oil through alternative ways and outlets."
Al Hamili extended congratulations to the President His Highness Shaikh Khalifa bin Zayed Al Nahyan, General Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, for the successful completion of this vital and strategic project on the Gulf of Oman.
Director-General of the International Petroleum Investment Company (Ipic) Khadim Abdullah Al Qubaisi described the project as one of the strategic assets for Abu Dhabi and the UAE.
"The project will export almost 70 per cent of the emirate's crude oil, and will play a paramount role in terms of strategic policy of Abu Dhabi," he said.
He said Abu Dhabi government is committed to provide support and facilities contributing to the development and progress of Fujairah.
"The Abu Dhabi crude oil pipeline as well as the proposed oil refinery will form enormous direct investments in Fujairah," he said.
He said that $4.2 billion project, which has been built over the last four years, will contribute to reduce shipping costs and insurance expenses.
Ipic has contributed in the project though its investment company. "We are proud of what we have made and the achievement is historic," Al Qubaisi said.
He pointed out that the first oil tanker will commence loading the crude oil for Pak-Arab Refinery in Pakistan.
"We are confident by the grace of Allah the project will be fully operational by the end of the year with a capacity of transporting 1.5 million barrel per day," he said.
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