by Daniel Pipes
The Habshan-Fujairah oil pipeline under construction.
Started in 2008, the 225-mile-long pipeline is four-feet in diameter, it cost about US$2.7 billion and it carries 600-700 thousand barrels per day with the goal of increasing that to 1.4 million or even 1.8 million barrels per day. Along with the pipeline, Abu Dhabi's government is building a US$3 billion, 200,000-barrel-a-day refinery at the pipeline's termination, Fujairah in the Gulf of Oman.
Comment: Not only does the pipeline insure the export of Abu Dhabi's Murban blend crude, but it also protects it from hiked up insurance premiums in case of hostilities. This little-noticed news item is fraught with implications for the future of the energy market and for Gulf Cooperation Council relations with Iran. (June 21, 2012)
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