TotalEnergies will invest in the Fujairah oil export pipeline expansion in Abu Dhabi. This project secures an alternative route to the Strait of Hormuz amid ongoing Middle East conflict. The strait typically facilitates the transit of one-fifth of the global oil supply.
The Abu Dhabi Crude Oil Pipeline currently transports 1.8 million barrels per day. The United Arab Emirates intends to double this existing capacity.
CEO Patrick Pouyanne announced the investment at the ONS energy conference in Norway. He stated that moving a very large crude carrier through the Strait of Hormuz costs approximately $10 per barrel.
This transit cost is lower than many investors previously feared. TotalEnergies’ trading and refining divisions continue to monetize current market volatility.