Adnoc Commits $8bn to Gas Expansion Amid Hormuz Security Concerns
The UAE's Adnoc is investing $8bn to expand its gas business, doubling down on increasing capacity after the country pulled out of Opec. The company plans to build a new domestic natural gas processing unit at Habshan and a new gas export facility at Ruwais.
Adnoc Gas's CFO Peter van Driel told Bloomberg that the company is also weighing plans to build an LNG export facility outside the Strait of Hormuz, in addition to the facility at Ruwais. This move comes as Qatar has declared a force majeure on LNG shipments through the autumn due to attacks on its vessels.
The UAE's vessels have been struck by Iran, but the Gulf state has taken a more risk-prone approach to sending vessels through the Strait of Hormuz with their ship tracking signals turned off. The country has also benefited from an oil pipeline that terminates at Fujairah, outside the Strait of Hormuz.