UAE's ADNOC Gas Eyes New LNG Export Facility Bypassing Hormuz

ADNOC Gas is exploring options for building an LNG export facility on the UAE's east coast to bypass the Strait of Hormuz. This move comes as a response to the disruptions caused by the Iran war, which has exposed Gulf nations' reliance on the waterway. The company's Chief Financial Officer, Peter van Driel, mentioned that they are looking at options for the new facility in an interview with Bloomberg Television.

The UAE aims to reduce its dependence on Hormuz to zero and is building infrastructure to achieve this goal. ADNOC Gas has already constructed an LNG export terminal at Ruwais inside the Persian Gulf, which will more than double its export capacity to about 15 million tons a year. The new facility would be a significant investment, with costs likely running into billions of dollars.

The company is also investing $8.2 billion in gas production, with plans to build new gas-processing facilities to handle increased output. ADNOC Gas expects a 60% increase in earnings by 2030 as it responds to the expected global rise in demand for LNG.