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Adnoc Gas Plans LNG Export Hub to Bypass Strait of Hormuz

Bloomberg Markets •
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Adnoc Gas Plc is evaluating a new liquefied natural gas export facility outside the contested Strait of Hormuz, Abu Dhabi’s latest infrastructure push to bypass the critical waterway disrupted by the Iran war. The plan reflects the UAE’s broader strategy to secure its energy export routes amid escalating regional tensions.

The unit of the United Arab Emirates’ biggest oil producer is exploring options on the country’s east coast, CFO Peter van Driel said in a Bloomberg Television interview. Although no final decision has been made, the company is weighing several potential sites and is expected to release a detailed feasibility study later this year. Van Driel also highlighted that the company is conducting technical assessments to determine the optimal scale and technology for the export plant, considering both current market demand and long‑term climate trends.

By locating the plant on the UAE east coast, Adnoc Gas could avoid the Strait of Hormuz, a choke point whose security has been threatened by the ongoing Iran war. This would diversify its logistics network, protect shipments from potential disruptions, and provide an alternative route for both domestic and international LNG customers.

The initiative aligns with Abu Dhabi’s goal of increasing its LNG export capacity and reducing reliance on a single transit point. Analysts view the project as a prudent hedge against geopolitical risk, ensuring continued supply to global markets even if the strait faces prolonged closure. If approved, the project could be operational within the next five years, positioning the UAE as a more resilient player in the global LNG landscape. The new facility is also expected to create jobs and stimulate economic growth in the eastern region.