Adnoc Gas explores LNG export plant to bypass Strait of Hormuz

Abu Dhabi's Adnoc Gas is considering building a new liquefied natural gas export facility on the UAE's east coast, outside the contested Strait of Hormuz, as the Gulf nation accelerates efforts to reduce its dependence on the critical waterway disrupted by the Iran war.

Billions in New Investment

The company's chief financial officer, Peter van Driel, told Bloomberg Television on Monday that Adnoc Gas is studying options for an east-coast LNG plant but has not made a final decision. If approved, it would be the first attempt by a major Gulf LNG exporter to redirect gas supplies away from Hormuz, where shipping has ground to a near-halt amid hostilities between Tehran and Washington.energynow+1

The announcement came alongside $8.2 billion in new engineering, procurement, and construction contracts for the next phases of Adnoc Gas's Rich Gas Development project. A $3.9 billion Phase 2 contract was awarded to Wison Engineering and a $4.3 billion Phase 3 contract to Tecnimont, bringing total investment in the program to $13.2 billion. Adnoc Gas raised its EBITDA growth target to 60% by 2030, up from 40% previously.worldoil

Hormuz Disruption Reshapes Gulf Energy

The proposed facility reflects a broader regional scramble to build infrastructure bypassing Hormuz. Three Adnoc tankers were attacked by missiles and drones last week, bringing the total struck since the war began to 15. Qatar, which accounts for about 20% of global LNG exports, declared force majeure on shipments in March after Iranian missile attacks damaged two LNG-producing trains at its Ras Laffan facility. QatarEnergy has since extended force majeure through mid-October.reuters+2

Saudi Arabia is considering expanding its East-West pipeline capacity, and Iraq signed a deal with Syria in July to rehabilitate a pipeline from its northern oil fields to the Mediterranean coast. The UAE left OPEC in May 2026 and boosted oil production to a record 4.1 million barrels per day in June.middleeasteye

Costly but Critical

Building an east-coast LNG plant would cost billions and likely require a new pipeline connecting to gas fields on the UAE's western coast. Adnoc Gas is already constructing an LNG terminal at Ruwais inside the Persian Gulf that will more than double export capacity to about 15 million tons per year. The company has restored about 85% of operations at its Habshan gas-processing facility, the country's largest, which was damaged during the war.egyptoil-gas+1

"When we speak to our customers in the region, they say they never want to deal with this again," Artem Abramov, deputy head of analysis at Rystad Energy, told Middle East Eye. "These bypass projects will move forward."middleeasteye