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A pipeline running from Abu Dhabi's largest oil fields to Fujairah, allowing crude oil to bypass the Strait of Hormuz [pictured], has been completed, according to project operators International Petroleum Investment Company (IPIC).

The 48-inch diameter, 400-kilometre long pipeline, which runs overland from the Habshan oil fields to Fujairah, is scheduled to begin transporting Murban blend crude oil on a trial basis in December before the project is fully commissioned. IPIC plans for the pipeline to reach a maximum capacity of 1.8 million barrels per day (bpd).

The completion of the project means that Abu Dhabi will now be able to bypass the risky Hormuz Strait, through which approximately a fifth of the world's crude exports, including all of Abu Dhabi's exports of about 2 million barrels, pass every day.

IPIC began construction of the pipeline in 2008 and had planned to finish the project last year, but completion was delayed by difficulties in procuring building materials. The total cost of the project is estimated at around Dh12 billion, one of the largest pipeline ventures in the Middle East.

The pipeline is a boon for Fujairah, already the leading bunkering hub in the Middle East and second only to Singapore in terms of supply volumes.

In addition to the pipeline, a crude reservoir is being set up in Fujairah for oil to be loaded aboard tankers.

The new naval base, a new oil export terminal, offshore loading facilities and a planned 500,000 bpd refinery to be built by IPIC and ConocoPhillips will all help to boost Fujairah's economy - and bunker sales volumes as a result.

The importance of the United Arab Emirates as a leading energy hub will also be bolstered by plans over the next three years to double the number of fuel storage tanks in the region.