ADNOC Gas explores new UAE east coast LNG plant with Habshan recovery at 85%

Dubai: ADNOC Gas is evaluating the possibility of constructing a new liquefied natural gas export facility on the UAE's east coast, which could offer alternative routes for shipments outside the Strait of Hormuz. Chief Financial Officer Peter van Driel disclosed this during an appearance on Bloomberg Television, stating that the company is still in the exploratory phase and has not made a final decision.

The potential plant's capacity, investment cost, development timeline, and exact location remain undisclosed. This consideration follows disruptions to maritime movements through the Strait, which impacted ADNOC Gas's product liftings during the second quarter. To mitigate these effects, the company collaborated with customers and partners, utilizing inventory, logistics, and supply-chain management.

ADNOC Gas has also revised its near-term financial outlook, anticipating third-quarter net income of $600 million to $800 million, contingent on ongoing Strait disruptions, and a full-year net income of $3.5 billion to $4 billion if maritime operations normalize by late 2026. The potential east coast facility emerges as ADNOC Gas assesses its export infrastructure amidst recent regional maritime route disruptions.

Meanwhile, ADNOC Gas has reported faster-than-expected recovery at its Habshan complex, with gas supply restored to 85%, surpassing the year-end recovery target set in May.