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Khalifa Port Signs LNG and LPG Terminal Development Deals
Abu Dhabi’s AD Ports Group has signed two landmark agreements with Nimex Terminals aimed at transforming Khalifa Port into a leading regional and global trading hub for low-carbon energy and petrochemical logistics.
The agreements cover the development of the UAE’s first private sector Liquefied Natural Gas (LNG) and Liquified Petroleum Gas (LPG) terminal hubs, both designed to accommodate large deep-sea gas carriers. Valued at over AED 30 billion (US$8 billion) based on projected 50-year revenue streams, the deal will establish the critical infrastructure required for LNG and LPG bunkering, enabling Khalifa Port to support two of the fastest-growing alternative fuels in the global maritime industry.
Under the terms of the agreements, AD Ports Group will invest up to AED 1.3 billion (US$354 million) in infrastructure development – including dredging works and jetty construction – while Nimex Terminals will invest up to AED 2.6 billion (US$700 million) in the construction of LNG and LPG storage tanks and associated superstructure.
The LNG terminal, covering an area of 130,000 m², will feature cryogenic storage facilities with a total capacity of 400,000 m³. The LPG terminal, occupying 90,000 m², will ultimately provide a total capacity of 280,000 m³. Both facilities will be equipped to handle import, export, and transshipment operations, supporting the growing energy demand from Asian markets and reinforcing the UAE’s role as a global energy logistics hub.
Development of the two terminals will take place in phases over a five-year period, with investments distributed over the same timeframe. Initial operations are expected by mid-2028, while steady-state operations are projected for 2031 for the LNG terminal and 2033 for the LPG terminal. This phased approach is designed to ensure early market readiness and to support medium- and long-term growth in LNG and LPG trade volumes across the region.
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