In a step toward strengthening the United Arab Emirates’ position as a global energy hub, AD Ports Group, a leading enabler of global trade, logistics, and industry, and Nimex Terminals, have signed two long-term agreements that will position Khalifa Port into a leading trading hub for low-carbon energy and petrochemical logistics.
The agreements include the development of the UAE’s first private-sector Liquefied Natural Gas (LNG) and Liquified Petroleum Gas (LPG) terminal hubs, that can accommodate large, long-haul gas carriers. Together, these two facilities will expand Khalifa Port’s capabilities to meet the evolving demand of international energy trade, while supporting the UAE’s Net Zero 2050 strategy.
The deal, based on the projected 50-year multiple revenue streams from the two terminal hubs, is valued at over $8 billion. The agreements will provide Khalifa Port with the infrastructure required to fuel vessels with lower-emission LNG and LPG, two of the fastest-growing alternative fuels in the global maritime industry.
Both of the gas facilities will benefit from Khalifa Port’s maritime infrastructure and multimodal connectivity via sea, land, air, and rail, as well as its proximity to Khalifa Economic Zones – Abu Dhabi (KEZAD), the Group’s integrated system of economic cities and free zones. Strategically located between Asia, Africa, Europe, and the Middle East, Khalifa Port offers unparalleled access to major trade corridors, enabling efficient supply chains and optimised logistics.
Under the agreements, AD Ports Group has committed to invest up to $354 million to develop the required infrastructure (primarily dredging and development of jetties), while Nimex Terminals will invest up to $700 million in advanced LNG and LPG storage tanks and other superstructure construction, including regassification facilities, pipelines with instrumentation controls, loading arms, flare structures, and firefighting systems.
The two facilities will be developed in phases over a 5-year period with the associated investments spread over the same timeframe.
The LNG terminal, spanning an area of 130,000 m², will feature cryogenic storage facilities with a total capacity of 400,000 cubic meters. The LPG facility, occupying 90,000 m², will ultimately offer a total capacity of 280,000 cubic meters. Both terminals will serve as hubs for import, export, and transshipment operations, primarily catering to the growing demand from Asian markets.
Initial operations are expected to commence by mid-2028, with steady-state operations projected to be achieved by 2031 for the LNG terminal, and by 2033 for the LPG terminal. This phased approach ensures early market readiness while supporting medium and long-term growth in LNG and LPG trade volumes.