Fujairah port: UAE's oil lifeline outside Strait of Hormuz

Published May 17, 2019
The port of the emirate of Fujairah, located on the eastern coast of the UAE, is about 180 kilometres from Abu Dhabi. ─ Wikimedia Commons
The port of the emirate of Fujairah, located on the eastern coast of the UAE, is about 180 kilometres from Abu Dhabi. ─ Wikimedia Commons

A mystery "sabotage" attack on four ships, including three oil tankers, off the UAE coast has highlighted the importance of Fujairah port located just outside the key Strait of Hormuz.

Strategic location

The port of the emirate of Fujairah, located on the eastern coast of the UAE, is about 180 kilometres from Abu Dhabi ─ the richest of the seven emirates with 90 per cent of the country's oil production.

It is 70 nautical miles from the Strait of Hormuz and 80 nautical miles from Iran's Jask port, on the opposite side of Gulf waters.

Fujairah is the only emirate in the oil-rich UAE that is located on the Arabian Sea, bypassing the Strait of Hormuz, which Iran has threatened to close if a military confrontation with the United States erupts.

If the strait is closed, the UAE will be able to continue exporting oil from Fujairah, whose port would become a lifeline.

Oil hub

Fujairah has become a major player in the UAE's oil exports with two terminals, a pipeline from Abu Dhabi and a huge crude storage facility.

The 406-kilometre pipeline, owned by Abu Dhabi Crude Oil Pipeline Co (ADCOP), can carry over 600,000 barrels of crude oil from Abu Dhabi to Fujairah. The pipeline's capacity can go up to 1.6 million bpd in case of need.

Fujairah port has two oil terminals with a capacity to handle over 50m tonnes of oil a year. It can load Very Large Crude Containers (VLCC) and in 2016 it launched a new dock for supertankers.

The port has a huge oil storage facility with a capacity for 10m tonnes of crude oil, or around 70m barrels.

Abu Dhabi, which sits on a majority of oil reserves in UAE, has recently awarded a $1.2 billion contract for building a second storage area holding 42 million barrels.

History

Work on Fujairah port began in 1978 as part of plans to develop the UAE's economy. Operations began in 1983.

Ruler of Fujairah, Sheikh Hamad bin Mohammed al-Sharqi, said there are plans to boost port capacity “at the local, regional and global levels”, according to UAE state news agency Wam.

The port is a key platform for local and international companies, he said during a visit there.

“Especially since Fujairah port is strategically located outside the Strait of Hormuz on the open seas,” added Sheikh Hamad.

Opinion

Editorial

IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...
Saudi FM’s visit
Updated 17 Apr, 2024

Saudi FM’s visit

The government of Shehbaz Sharif will have to manage a delicate balancing act with Pakistan’s traditional Saudi allies and its Iranian neighbours.
Dharna inquiry
17 Apr, 2024

Dharna inquiry

THE Supreme Court-sanctioned inquiry into the infamous Faizabad dharna of 2017 has turned out to be a damp squib. A...
Future energy
17 Apr, 2024

Future energy

PRIME MINISTER Shehbaz Sharif’s recent directive to the energy sector to curtail Pakistan’s staggering $27bn oil...