TotalEnergies to Invest in Oil Pipelines Bypassing Strait of Hormuz

TotalEnergies has announced plans to invest in two significant oil pipeline projects designed to circumvent the Strait of Hormuz, a critical chokepoint for global oil trade. The company will support Abu Dhabi's expansion of its Fujairah export capacity and a proposed pipeline to transport Iraqi crude oil to the Mediterranean via Syria.

CEO Patrick Pouyanné revealed these commitments at the ONS energy conference in Norway, emphasizing that securing alternative export routes has become a top priority for TotalEnergies following disruptions in the Strait of Hormuz. He indicated that the company would take stakes in both projects, though specific investment amounts and ownership percentages were not disclosed.

The existing Habshan-Fujairah pipeline in the UAE currently has a capacity of 1.8 million barrels per day, allowing oil to reach the Gulf of Oman without traversing Hormuz. Abu Dhabi intends to nearly double this bypass capacity within the next year.

Similarly, TotalEnergies is pursuing a hedge in Iraq with the proposed Iraq-Syria pipeline. This project aims to provide Baghdad with an export route to the Mediterranean for crude that primarily exits through its southern Persian Gulf terminals. Recent estimates suggest this pipeline could cost approximately $15 billion and require at least four years for completion.

Pouyanné highlighted TotalEnergies' position as a major trader of oil from Iraq and Qatar, underscoring the strategic importance of investing in alternative export infrastructure. Prior to recent conflicts, about one-fifth of global oil supply transited through the Strait of Hormuz, and severely disrupted tanker traffic has accelerated the development of these bypass projects.