UAE's Adnoc announces $8bn gas expansion, as it mulls Hormuz bypass

Abu Dhabi National Oil Company (Adnoc) announced on Monday an $8 billion investment to expand its gas business in the United Arab Emirates. The company plans to build a new natural gas processing unit at the largest facility in the country, Habshan, and a new gas export facility at Ruwais. Adnoc's CFO, Peter van Driel, told Bloomberg that the company is also considering constructing a liquefied natural gas (LNG) export facility outside the Strait of Hormuz, complementing the Ruwais facility.

The UAE's strategic move comes as Qatar has declared a force majeure on LNG shipments due to the ongoing US-Israeli conflict with Iran, impacting the Strait of Hormuz, a critical energy corridor. The UAE continues to export oil at an all-time high of 4.1 million barrels per day, while Saudi Arabia has an East-West Pipeline that bypasses the Hormuz via the Red Sea, reflecting the growing infrastructure investments aimed at circumventing the Strait of Hormuz.