Abu Dhabi’s AD Ports Group has signed an agreement worth more than AED30 billion ($8.2 billion) with Nimex Terminals to establish the UAE’s first private-sector liquefied natural gas (LNG) and liquified petroleum gas (LPG) terminal hubs in Khalifa Port.
The two facilities will be developed in phases over five years, the company said in a statement to the Abu Dhabi Securities Exchange (ADX).
As part of the deal, AD Ports will invest up to AED1.3 billion to develop infrastructure, including dredging and jetty development, while Nimex Terminals will allocate up to AED2.6 billion in advanced LNG and LPG storage tanks and superstructure construction.
The LNG terminal, covering an area of 130,000 sq m, will include cryogenic storage facilities with a total capacity of 400,000 cubic metres. The LPG facility, spanning 90,000 sq m, will offer a total capacity of 280,000 cubic metres.
Both terminals will serve as hubs for import, export, and transshipment operations, primarily catering to the growing demand from Asian markets, the statement said.
The deal is based on the projected 50-year multiple revenue streams from the two terminal hubs.
Initial operations are expected to begin by mid-2028, with full operations projected for the LNG terminal by 2031 and for the LPG terminal by 2033.
Last month AD Ports signed a preliminary agreement with China’s SPG Yantai Port to establish green automotive business parks in an effort to promote vehicle trade between Asia, the Middle East and North Africa.
Shares of AD Ports closed more than 1 percent higher at AED4.63 on Tuesday, but have fallen 22 percent so far this year.
The company has a free float of nearly 25 percent, while sovereign wealth fund ADQ owns a 75 percent stake.