Habshan-Fujairah pipeline start-up delayed 1 year

Abu Dhabi's International Petroleum Investment Co. said its planned 1.5 million b/d Habshan-Fujairah oil pipeline will begin operating in March 2010, about a year later than originally planned.

Eric Watkins
Senior Correspondent

LOS ANGELES, June 13 -- Abu Dhabi's International Petroleum Investment Co. said its planned 1.5 million b/d Habshan-Fujairah oil pipeline will begin operating in March 2010, about a year later than originally planned.

No explanation was cited for the new start-up date for the 320-km, 48-in. pipeline, which will join state-owned Abu Dhabi National Oil Co's Habshan fields with the Port of Fujairah. The project also includes oil storage and terminal facilities for crude exports at Fujairah.

According to analysts, the pipeline will greatly enhance Abu Dhabi's supply security, bypassing the busy Strait of Hormuz, which generally is recognized as a strategic oil transport choke point.

In April, IPIC awarded contracts worth $460 million to three companies—Sumitomo of Japan, Salzgitter Mannesmann International of Germany and the Jindal Group of India—to supply 225,000 tons of coated steel pipe for the line. Pipe delivery will begin in July, with the contract expected to be completed in January.

Last September, IPIC awarded Australia's WorleyParsons an engineering and design contract for the pipeline.

Contact Eric Watkins at hippalus@yahoo.com.

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