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UAE Expands East Coast Ports Amid Strait of Hormuz Blockade
The Strait of Hormuz is an important water route used to move fuel around the world.
A war and blockade have made it harder for ships to pass through safely.
The United Arab Emirates is building up ports, pipelines, railways and other routes on its eastern coast so its trade can avoid the strait.
UAE officials say their energy exports should not be used as a bargaining tool.
India has been especially affected because it gets much of its fuel from the Gulf region.
India’s imports of cooking gas fell sharply after supplies were disrupted.
The United States then supplied much more LPG to India than before.
Iran says it shares control of the strait with Oman, while Gulf Arab states reject that claim.
Talks involving the United States, Iran, Qatar and Pakistan have not yet resolved the disagreement.
The UAE is expanding eastern-coast ports, pipelines, railways and alternative trade routes to reduce reliance on the Strait of Hormuz.
UAE Presidential adviser Anwar Gargash said the country’s energy exports and trade would not be held hostage by disruptions.
Before the disruption, about 40% of India’s crude oil, 60% of its LNG and nearly 90% of its LPG imports came through Hormuz.
India’s LPG imports fell by more than 40% between March and August, while US supplies nearly quadrupled and exceeded half of imports over the following six months.
Iran and the United States remain at odds over control and navigation rights in the strait, while negotiations continue with Qatar and Pakistan mediating.
- Who
- The United Arab Emirates, India, Iran, the United States and other Gulf states are central to the developments; Anwar Gargash announced the UAE’s position.
- What
- The UAE is expanding eastern-coast infrastructure to bypass potential Strait of Hormuz disruptions, while India shifts energy imports toward the United States.
- Where
- The infrastructure is being developed along the UAE’s eastern coast, while the disruption concerns the Strait of Hormuz and affects India.
- When
- The measures follow months of blockade and a conflict that began on February 28; a preliminary June ceasefire later broke down.
- Why
- The UAE wants to protect energy exports and trade from disruption, while India is seeking alternative energy supplies after Gulf shipments were affected.
Iran’s Position
UAE and U.S. Position
Control of the Strait
Iran’s Position
Iran maintains that the Strait of Hormuz is jointly under the jurisdiction of Iran and Oman.
UAE and U.S. Position
Gulf Arab states reject Iran’s jurisdiction claim, while the United States says vessels require Washington’s authorization to pass.
Navigation and Negotiations
Iran’s Position
Iran’s position remains part of the deadlock over the strait’s status and is being addressed in negotiations mediated by Qatar and Pakistan.
UAE and U.S. Position
The UAE says freedom of navigation must not be used as a bargaining tool and wants firm guarantees against further Iranian attacks on Gulf states.
Trade and Energy Security
Iran’s Position
The blockade and control dispute have contributed to the disruption of Gulf energy shipments and global trade.
UAE and U.S. Position
The UAE is developing alternative ports, pipelines, railways and trade corridors, while India and the United States are turning to longer-distance LPG supply routes.
Key facts
- India’s crude dependence
- India imports more than 88% of its crude oil requirement.
- Pre-disruption crude route
- About 40% of India’s crude oil imports came through the Strait of Hormuz.
- Pre-disruption LNG route
- About 60% of India’s LNG imports came through the waterway.
- Pre-disruption LPG route
- Nearly 90% of India’s LPG imports regularly came from West Asia through Hormuz.
- LPG import decline
- India’s overall LPG imports fell by more than 40% sequentially between March and August.
- US LPG share
- US suppliers accounted for more than 50% of India’s LPG imports in the six months after the conflict began, up from less than 10% in the previous six months.
- Alternative UAE infrastructure
- The UAE is expanding eastern-coast ports and developing pipelines, railways and alternative trade routes.
Quotes
Anwar Gargash
UAE Presidential adviser speaking at the Hili Forum in Abu Dhabi
“Our energy exports will not be held hostage, nor will our trade and economic activity”
indianexpress.com
Natalia Katona
Abu Dhabi-based energy analyst
“Washington has been the biggest LPG exporter worldwide even before the crisis, and US propane was already cheaper than Asian supplies before the war”
indianexpress.com
Sources
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