Abu Dhabi National Oil Company's gas subsidiary, Adnoc Gas Plc, is evaluating the construction of a new liquefied natural gas (LNG) export facility outside the Strait of Hormuz. This initiative represents the latest move by the UAE to build infrastructure circumventing this critical waterway, as conflict in Iran has severely disrupted navigational safety in the strait.
Chief Financial Officer Peter van Driel revealed in an interview that the company is assessing several potential sites along the UAE's eastern coast, though no final decisions have been made regarding the plans. Developing an LNG plant outside the Strait of Hormuz would be a key component of the UAE's goal to achieve complete independence from reliance on this passage.
The UAE is actively advancing supporting projects, including new pipelines and expanded port facilities. Regional conflict has exposed Gulf nations' vulnerability to the Strait of Hormuz, compelling them to seek alternative routes to ensure uninterrupted energy exports and economic stability. Abu Dhabi National Oil Company is among the most proactive entities in the Persian Gulf region in pursuing alternative crude oil export routes, having even deactivated vessel tracking signals to avoid surveillance.
The company's ships have faced repeated attacks while transiting the strait—three oil tankers were struck by missiles and drones last week, bringing the total number of vessels attacked since the onset of Iran's conflict to 15. Countries across the region are accelerating plans for infrastructure that bypasses this vital waterway.
Saudi Arabia already transports crude oil via its east-west pipeline to Red Sea ports and is evaluating further export capacity expansion, while Iraq is repairing old pipelines and planning new routes to transport oil to Syria and Turkey. If the plan materializes, the UAE would become the first major exporter in the region to attempt to divert LNG supply away from the Strait of Hormuz, while other suppliers like Qatar remain heavily dependent on this route.
Building such a facility would cost tens of billions of dollars. Establishing a plant on the UAE's eastern coast would also require constructing a long-distance pipeline connecting western gas fields to the project. Adnoc Gas is already building an LNG export terminal at Ruwais within the Persian Gulf, which will more than double the company's annual export capacity to approximately 15 million tonnes upon completion.
Additionally, the company announced on Monday that it would advance an $8.2 billion investment plan to boost natural gas production. Van Driel stated that the company will construct multiple new gas processing facilities to handle the increased output, meeting growing demand from domestic and Asian markets. Adnoc Gas projects a 60% growth in EBITDA by 2030, responding to anticipated global demand for natural gas fuel, an upward revision from the previous 40% growth forecast reflecting the company's latest investment plans.
Meanwhile, the company has restored approximately 85% of the operational capacity at its largest domestic gas processing plant, the Habshan facility, which had been damaged during the conflict.