The UAE plans to invest several billions of dollars to build a new LNG export terminal, aiming to avoid the risks of the Strait of Hormuz.

According to Golden Ten Data APP, Adnoc Gas Plc, the natural gas subsidiary of Abu Dhabi National Oil Company (ADNOC), is considering building a new liquefied natural gas (LNG) export facility outside the Strait of Hormuz. This move is the latest effort by the UAE to construct infrastructure that bypasses this critical waterway—currently, the war in Iran has severely disrupted navigation safety through the strait.

Adnoc Gas Chief Financial Officer Peter van de Lir revealed in an interview that the company is evaluating several potential sites on the east coast of the UAE, but has not yet made a final decision regarding the plan.

Building an LNG plant outside the Strait of Hormuz would be an important component in the UAE's goal to completely eliminate its reliance on the strait. The country is actively advancing supporting projects such as new pipelines and expanded ports. Regional conflicts have exposed Gulf nations' vulnerable dependence on the Strait of Hormuz, forcing them to seek alternative routes to ensure ongoing energy exports and economic stability.

Abu Dhabi National Oil Company is also among the most proactive companies in the Persian Gulf seeking alternative routes for crude oil exports, and has even shut down ship positioning signals to evade surveillance. The company’s vessels have been repeatedly attacked while passing through the strait—last week, three more tankers were struck by missiles and drones. Since the outbreak of the conflict in Iran, the total number of vessels attacked has risen to 15.

Countries in the region are speeding up their infrastructure plans to bypass this key waterway. Saudi Arabia has transported crude oil to Red Sea ports via east-west pipelines and is evaluating further expanding export capacity. Iraq is repairing aging pipelines and planning new routes to deliver crude to Syria and Turkey.

If the plan goes forward, the UAE will become the first major exporter in the region to attempt to bypass the Strait of Hormuz for LNG supplies. Other suppliers, such as Qatar, still rely heavily on the route.

Constructing such facilities would cost several billion dollars. Building a plant on the east coast of the UAE would also require long-distance pipelines connecting western gas fields to the project.

Adnoc Gas has already built an LNG export terminal at Ruwais inside the Persian Gulf, which, once operational, will more than double the company’s annual export capacity to about 15 million tonnes.

Additionally, the company announced in a statement on Monday that it will advance an $8.2 billion investment plan to increase natural gas production. Van de Lir stated that the company will build multiple gas processing facilities to handle the extra production and meet the growing domestic and Asian market demand.

Adnoc Gas expects its EBITDA to grow by 60% by 2030 to respond to anticipated increases in global demand for gas fuel. This target is an upward revision from the previous 40% expected growth, reflecting the company’s latest investment plans.

Meanwhile, the company has restored about 85% of the operating capacity of the country’s largest gas processing facility, the Habshan plant, which was damaged during the conflict.