Reuters reported that a strategic pipeline for the UAE's oil exports to bypass the Strait of Hormuz could face more delay due to differences with the Chinese construction company.
The pipeline will have a capacity of around 1.5 million barrels per day and give the UAE an alternative route to exporting oil via the strait, which Iran has threatened to block over western sanctions on its oil exports.
The 370 kilometer Abu Dhabi Crude Oil Pipeline has undergone numerous delays with Mr Mohammed bin Dhaen al-Hamli minister of UAE Oil this month pushing back the start of operations to May or June.
An industry source close to the project said that "The project might face more delays because there is a debate over the quality of the pipeline between Abu Dhabi's National Oil Company and the Chinese construction group."
Industry sources said that Tehran's rhetoric has put planners under increased pressure to open the pipeline, but added that a row over how the work has been done threatens even the latest target date.
A second industry source said that "There is political pressure to start this pipeline because of what's happening with Iran," adding that UAE leaders have been involved in overseeing the project.
The same industry source, who has direct knowledge of the project, said that "The Chinese company is ready to commission the pipeline but ADCO has to make sure first it suits its standards. So now they're working to do that."
The Industry said that "The project was initially done without the involvement of ADCO. That's why now they have a problem. The Chinese company has different standards."
Involved along with ADCO are International Petroleum Investment Company, owned by the Abu Dhabi government, and China Petroleum Engineering & Construction Corporation.
