ADNOC Gas Explores East Coast LNG Plant
ADNOC Gas is considering a new liquefied natural gas export facility on the UAE’s east coast, potentially providing an alternative route for LNG shipments outside the Strait of Hormuz. The company’s Chief Financial Officer, Peter van Driel, announced that ADNOC Gas is exploring options for the facility, although no final decision has been made and the project remains in its exploratory stage.
The potential east coast plant would offer additional flexibility for LNG exports, following disruptions to maritime movements through the Strait of Hormuz that affected the company’s product liftings during the second quarter. ADNOC Gas worked with customers and partners to mitigate the impact, using inventory, logistics, and supply-chain management to manage temporary constraints and fulfill commitments.
In a separate development, ADNOC Gas reported that recovery at its Habshan complex has progressed faster than expected, with gas supply already restored to 85% following security-related incidents at the site on April 3 and April 8. This surpasses the year-end recovery target set by the company in May.
The progress at Habshan marks a significant operational recovery during a quarter in which ADNOC Gas faced disruption both at one of its major processing sites and to maritime movements affecting product liftings. The company expects third-quarter net income of $600 million to $800 million, based on an assumption that maritime routes through the Strait continue to face disruption. For the full year, ADNOC Gas expects net income of $3.5 billion to $4 billion if maritime operations are fully restored by the fourth quarter of 2026 and pricing realisations normalise.
ADNOC Gas’s exploration of a new east coast LNG facility and the recovery at Habshan demonstrate the company’s efforts to assess its future export infrastructure and mitigate the impact of recent disruptions. As the company moves forward, it will be important to monitor developments in the Strait of Hormuz and the progress of the potential east coast plant.
The UAE’s energy sector is a critical component of the country’s economy, and ADNOC Gas plays a significant role in the industry. The company’s efforts to expand its export capabilities and improve its operational efficiency will be closely watched by investors and industry analysts.
In the context of the UAE’s strategic development plans, ADNOC Gas’s initiatives align with the country’s goals to diversify its economy and increase its competitiveness in the global energy market. However, without a specific target or deadline from these plans, it is unclear how the company’s efforts will contribute to the broader national objectives.
ADNOC Gas’s exploration of a new east coast LNG facility and the recovery at Habshan are significant developments for the company and the UAE’s energy sector. As the company continues to navigate the challenges posed by maritime disruptions, its efforts to expand its export capabilities and improve its operational efficiency will be crucial to its success.
