India’s Energy Security Alert: Can UAE Ports Shield Crucial Oil and Gas Flows From a Strait of Hormuz Shutdown?

India’s Energy Security Alert: Can UAE Ports Shield Crucial Oil and Gas Flows From a Strait of Hormuz Shutdown?​

India is navigating a complex geopolitical landscape as tensions in the Middle East threaten its primary energy corridors. The country relies heavily on the Strait of Hormuz for its vital fuel supplies, making any disruption to this waterway a significant threat to domestic stability.

Before recent escalations, India sourced approximately 60% of its crude oil imports, 54% of its LNG imports, and 90% of its LPG imports through the Hormuz route. This heavy concentration makes the country particularly vulnerable to maritime friction.

Even when physical supplies remain available, increased military escorts and operational uncertainty can drive up freight and insurance costs. These overheads directly inflate India’s import bill, creating a financial strain on the national economy.

The security situation has notably deteriorated, with reports of five commercial ships, three crude supertankers, an LNG carrier, and a container ship attacked in Omani waters recently. Such incidents have forced some shipping companies to decline US military-guided transit arrangements due to crew safety concerns.

The Strategic Role of UAE Ports as Alternative Corridors​

Indian refiners and energy importers are increasingly pivoting toward Fujairah and Khor Fakkan in the UAE to mitigate exposure to the Strait of Hormuz. These locations offer a logistical buffer for certain types of cargo, but their effectiveness is dictated by existing infrastructure.

Fujairah provides a genuine bypass specifically for crude produced within the UAE. The Abu Dhabi Crude Oil Pipeline, also known as the Habshan-Fujairah pipeline, can transport approximately 1.5 million barrels of crude per day from Abu Dhabi oilfields directly to Fujairah.

This allows tankers to load UAE Murban crude from the Gulf of Oman without entering the Strait of Hormuz. Data indicates that Fujairah exported an average of more than 1.7 million barrels per day of crude and refined fuels in 2025, establishing it as a credible alternative for UAE-produced products.

However, this advantage is not universal. Oil produced in other Gulf countries does not automatically gain access to the Fujairah bypass unless it can reach the port via an overland pipeline or a sea journey that avoids the strait entirely.

Structural Limitations of Gas and LPG Transport​

While crude oil benefits from established infrastructure, the logistics for Liquefied Natural Gas (LNG) and Liquid Petroleum Gas (LPG) are far more complex. These products require specialized liquefaction plants, cryogenic storage, and dedicated carriers to move safely.

The UAE ports can serve as crucial storage or transfer points once cargo reaches the UAE’s eastern coast. However, because Qatar's principal LNG export facilities are located inside the Gulf, any Qatari LNG cargo must still transit through Hormuz to reach Fujairah.

Data shows that no LNG carrier transited Hormuz between July 11 and July 13 as security risks intensified. Since the strait remains Qatar’s only maritime export route for cargoes traveling beyond the Gulf, a port bypass does not eliminate initial exposure for gas supplies.

Furthermore, while Omani LNG can travel directly into the Arabian Sea from facilities outside the strait, Oman's current production and export capacity cannot replace the massive volumes associated with Qatari exports.

The Saudi Arabian Bypass and its New Chokepoints​

Saudi Arabia offers a significant bypass route by moving crude from its eastern producing regions to Yanbu on the Red Sea via the East-West pipeline. The pumping capacity of this line was recently restored to around seven million barrels per day.

While this reduces dependence on the Strait of Hormuz, it introduces new logistical hurdles for Indian refiners. A vessel loading at Yanbu faces a considerably longer voyage, requiring passage through the Red Sea and across Bab el-Mandeb into the Gulf of Aden.

This alternative route has its own security risks, as Iran has signaled that the Bab el-Mandeb gateway could become a pressure point through Tehran-aligned Houthi forces in Yemen. This reflects a shift in risk from one waterway to another rather than an absolute removal of threat.

Infrastructure Constraints and Cargo Capacity Limits​

A critical factor in India’s energy strategy is the sheer volume of trade that must be accommodated. Experts note that Fujairah and Khor Fakkan cannot absorb every cargo currently moving through the UAE's larger Gulf-facing ports, such as Jebel Ali and Khalifa Port.

Khor Fakkan can handle approximately five million twenty-foot equivalent units of container cargo, while Fujairah’s capacity remains below one million. While new multipurpose port projects are being planned to reduce dependence on Jebel Ali, these represent future resilience rather than an immediate solution for current supply requirements.

A Strategic Escape Valve Rather Than a Total Solution​

The UAE and Saudi Arabia currently stand out as the only Gulf producers with operating crude-pipeline routes that bypass the Strait of Hormuz. Nations such as Kuwait, Iraq, Qatar, and Bahrain continue to rely heavily on the waterway for most seaborne exports.

To bolster its security, India has diversified its procurement by increasing crude purchases from suppliers in Brazil, Venezuela, Angola, and Nigeria. This geographic diversification provides a layer of protection that redirecting Gulf cargoes cannot offer alone.

Ultimately, while Fujairah serves as a vital escape valve for Indian energy trade—particularly for UAE crude—it is not a comprehensive substitute for the Strait of Hormuz across all fuel types. India's security depends on a multi-faceted approach that addresses both regional logistics and global supply diversity.