The UAE plans to invest billions of dollars in building a new LNG export terminal to seek to avoid the risks associated with the Strait of Hormuz.

Abu Dhabi National Oil Company (ADNOC) subsidiary Adnoc Gas Plc is considering the construction of a new liquefied natural gas (LNG) export facility outside the Strait of Hormuz. This move is the latest effort by the UAE to build infrastructure to bypass this critical waterway, as ongoing conflict in Iran has severely disrupted navigation safety in the strait. Peter van Derreel, Chief Financial Officer of Adnoc Gas, revealed in an interview that the company is evaluating multiple site options along the UAE's east coast but has not yet made a final decision regarding the plans. Constructing an LNG plant outside the Strait of Hormuz would be a significant part of the UAE's goal to completely eliminate its dependence on the strait. Currently, the UAE is actively advancing supporting projects such as new pipelines and port expansions. Regional conflicts have exposed the Gulf states' vulnerable reliance on the Strait of Hormuz, forcing them to seek alternative routes to ensure continuous energy exports and stable economic operations. Abu Dhabi National Oil Company is also the most active company in the Persian Gulf region in seeking alternative routes for crude oil transport, even resorting to turning off ship identification signals to evade surveillance. Its vessels have frequently faced attacks while transiting the straitlast week, three oil tankers were attacked by missiles and drones, bringing the total number of attacked vessels to 15 since the outbreak of the Iranian conflict. Countries in the region are accelerating their efforts to finalize infrastructure plans to bypass this critical waterway. Saudi Arabia has been transporting crude oil to its Red Sea coastal ports via an east-west pipeline and is evaluating further expansion of its export capacity; Iraq is working on repairing old pipelines and planning new routes to transport crude oil to Syria and Turkey. If this plan is realized, the UAE will become the first major exporter in the region to attempt to supply LNG while bypassing the Strait of Hormuz. Other suppliers, such as Qatar, still rely heavily on this route. The construction of such facilities will cost billions of dollars. Building a plant on the UAE's east coast will also require the construction of long-distance pipelines to connect the western gas fields with the project. Adnoc Gas is currently building an LNG export terminal at Ruwais in the Persian Gulf, which, once operational, is expected to more than double the companys annual export capacity to approximately 15 million tons. Additionally, the company announced on Monday that it will advance an $8.2 billion investment plan to increase natural gas production. Van Derreel stated that the company will build multiple gas processing facilities to accommodate the increased output, meeting the growing demand in domestic and Asian markets. Adnoc Gas expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow 60% by 2030 in response to rising global demand for natural gas fuels. This target is an adjustment from a previous expectation of 40% growth, reflecting the company's latest investment plans. Meanwhile, the company has restored approximately 85% of the operational capacity of the Habshan plant, the UAEs largest natural gas processing facility, which was damaged during the conflict.