Adnoc Gas Plans East Coast LNG Export Facility Amid Strait of Hormuz Disruptions

Adnoc Gas has reported a significant decline in its net income and revenues due to disruptions caused by the closure of the Strait of Hormuz. The company's second-quarter (2Q) net income dropped 52% year-over-year (y-o-y) to $665 million, while revenues fell by 39% y-o-y and 28% quarter-over-quarter (q-o-q) to $3.6 billion. For the first half of 2026, net income declined 34% y-o-y to $1.7 billion, with revenues sliding 28% y-o-y to $8.6 billion.

The prolonged closure of the strait had a particularly severe impact on Adnoc Gas' exports of liquefied natural gas (LNG), liquefied petroleum gas (LPG), and naphtha. Exports and liquid sales volumes declined 53% y-o-y in 2Q and 36% in 1H, resulting in the company missing out on surging benchmark prices. Brent crude averaged $104 per barrel in 2Q, a 30% increase from last year's average.

Adnoc Gas is now planning to build an LNG export facility on the UAE's east coast that would allow future exports to bypass the Strait of Hormuz entirely. The company has already invested heavily in gas-processing infrastructure, with $8.2 billion committed for new projects in 2026. Total capital expenditures reached $2 billion in the first half of the year, a 65% increase from last year.

The company's CFO, Peter van Driel, stated that Adnoc Gas is 'studying options' for the new LNG export facility but has not yet made a final investment decision. The company raised its committed capital expenditure target to $28 billion for 2026-2030 and maintained its FY 2026 capex guidance at $4.5-5 billion.