Abu dhabi: In a major step toward strengthening the United Arab Emirates' position as a global energy hub, AD Ports Group and Nimex Terminals have signed two long-term agreements set to transform Khalifa Port into a leading trading hub for low-carbon energy and petrochemical logistics.
According to Emirates News Agency, the agreements include the development of the UAE's first private-sector Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) terminal hubs, designed to accommodate large, long-haul gas carriers.
Together, these facilities will enhance Khalifa Port's capabilities to meet the evolving demands of international energy trade, supporting the UAE's Net Zero 2050 strategy. The agreement, valued at over AED30 billion (over US$8 billion), is based on projected 50-year multiple revenue streams from the two terminal hubs.
The infrastructure provided by the agreements will enable Khalifa Port, ranked 39th in Lloyd's List Top 100 Ports for 2025, to fuel vessels with lower-emission LNG and LPG, aligning with the global maritime industry's shift toward alternative fuels. Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, emphasized the transformative nature of these agreements for Khalifa Port and the UAE's energy sector, highlighting the commitment to a more sustainable future.
Both gas facilities will benefit from Khalifa Port's advanced maritime infrastructure and multimodal connectivity via sea, land, air, and rail, along with its proximity to Khalifa Economic Zones - Abu Dhabi (KEZAD). Khalifa Port's strategic location between Asia, Africa, Europe, and the Middle East offers exceptional access to major trade corridors, facilitating efficient supply chains and optimized logistics.
Azmat Mahmood, Executive Chairman of Nimex Terminals Ltd., expressed pride in partnering with AD Ports Group to advance the clean energy transition through the joint investment at Khalifa Port. The investments in LNG and LPG infrastructure are set to enhance the port's attractiveness and contribute to sustainable economic growth.
Under the agreements, AD Ports Group will invest up to AED1.3 billion (US$354 million) in infrastructure development, including dredging and jetty development, while Nimex Terminals will invest up to AED2.6 billion (US$700 million) in advanced storage tanks and superstructure construction. The development of the two facilities will occur in phases over a five-year period.
The LNG terminal will span 130,000 m² with a total capacity of 400,000 cubic meters, and the LPG facility will cover 90,000 m² with a capacity of 280,000 cubic meters. Both terminals will serve as hubs for import, export, and transshipment operations, primarily catering to Asian markets.
Initial operations are expected by mid-2028, with steady-state operations projected by 2031 for the LNG terminal and by 2033 for the LPG terminal, ensuring early market readiness and supporting growth in trade volumes. The agreements are anticipated to deliver significant economic impact, attracting foreign direct investment, creating high-value employment opportunities, and stimulating ancillary sectors.