Iraq and the United Arab Emirates are both intensifying plans to expand pipelines and avoid depending on the Strait of Hormuz as the blockade of the key waterway resulting from the Iran war continues.
CNBC noted that the Iraqi cabinet last week approved plans to accelerate exports through its Kurdistan-Turkey pipeline network, potentially increasing shipments from about 220,000 barrels a day to some 770,000.
The outlet went on to note that, according to economic intelligence provider QuantCube Technology, the country's exports have all but dried up since the war began due to its reliance of the waterway, which remains blocked both by the U.S. and Iran.
"Iraq is in a much more complicated situation because we know that most, if not all of its oil, transits through Hormuz," QuantCube senior economist, told the outlet.
The country said in mid-May that it had exported some 10 million barrels of oil through the waterway in April, down from the 93 million before the war began.
Elsewhere, the UAE said last month that the pipeline it's building to bypass the Strait of Hormuz is almost halfway complete after accelerating construction.
Sultan Ahmed Al Jaber, CEO of Abu Dhabi National Oil Company, or ADNOC, announced the development in an interview with the Atlantic Council, saying "right now, too much of the world's energy still moves through too few chokepoints."
The pipeline will double the country's export capacity through the Fujairah port, which is located on the Gulf of Oman beyond the Strait of Hormuz. It is expected to become operational next year.
Reuters detailed that the existing pipeline can carry up to 1.8 million barrels per day. The new maximum capacity would be almost double, above 3.5 million. The UAE is one of the two only countries with active pipelines allowing for substantial exports not involving tankers going through the Strait of Hormuz.
Ever since the war in Iran began, the waterway has been blocked both by the U.S. and Iran, preventing energy from transiting and leading to a spike in energy prices. Few vessels have gone through since, and Iran said it wants to control it moving forward as a way to compensate damages sustained during the conflict.
