Indian Firm EIL Eyes $1 Billion Gulf Oil Bypass Projects Amid Hormuz Crisis

Engineers India Ltd (EIL), an Indian state-run engineering powerhouse, is in crucial early discussions with Saudi Arabia and the United Arab Emirates for significant oil and gas infrastructure projects valued at over $1 billion. These ambitious projects aim to create vital new routes for moving crude oil and petroleum products, a direct response to the severe and ongoing disruption of the Strait of Hormuz. The need for these bypass projects is urgent, stemming from a major conflict involving Iran, the United States, and Israel that has largely blocked the Strait of Hormuz since February 2026, triggering a global fuel crisis and soaring oil prices. The UAE is fast-tracking a new West-East Pipeline to its Fujairah port, set to open by 2027, which will effectively double the country's capacity to bypass the strait. Saudi Arabia is also exploring options to expand its existing East-West pipeline, reinforcing a broader regional strategy to insulate energy exports from the volatile chokepoint. EIL anticipates securing around $1 billion in orders from these Gulf projects over the next two to three years, building on its recent ₹510 crore in new business from the region since the conflict began. This push signifies a lasting shift in global energy logistics, as Gulf nations invest heavily to ensure reliable supply chains, cementing alternative routes as critical for world energy security in the coming years.