Behind schedule: a pipeline that would bypass the Straight of Hormuz, pictured above
'Two-year delay on Hormuz bypass pipe'
The United Arab Emirates will complete a pipeline for oil exports to bypass the Strait of Hormuz around two years later than initially scheduled, the project's director Dieter Baluberg said.
The pipeline would allow the world's third-largest oil exporter to pump around 60% of its crude exports to a port on the Gulf of Oman, avoiding the strategic shipping chokepoint at the Strait of Hormuz.
Iran has threatened to block the route, through which about 40% of the world's traded oil is shipped, if it were attacked over its nuclear programme.
"There have been some delays due to market conditions," said Blauberg who is head of the project at Abu Dhabi government-owned International Petroleum Investment Company (IPIC).
"The market was congested and getting materials was difficult," Reuters quoted him as telling reporters on the sidelines of a conference.
The project would be completed in August 2011, Blauberg said.
The first tanker would load earlier in January 2011, but that would be part of the commissioning for the facilities, he added.
Earlier this year, IPIC said the pipeline would start in early 2010, already a year behind schedule.
The pipeline will initially have capacity to pump 1.5 million barrels per day, with an option to increase it to 1.8 million bpd.
The UAE pumped around 2.2 million bpd of crude in April and has capacity to produce around 2.8 million bpd.
The 320 kilometre pipeline would link state oil company Abu Dhabi National Oil Company's Habshan field to the port of Fujairah.
The project includes construction of 12 million barrels of storage in Fujairah and terminal facilities for crude exports.
IPIC invests in oil and gas projects for the Abu Dhabi government, which leads the UAE and holds most of its oil reserves.