ADNOC Gas Explores East-Coast LNG Export Facility to Bypass Strait of Hormuz Amid Shipping Disruptions

ADNOC Gas Plc announced on August 10 that it is considering a new liquefied natural gas export facility on the UAE's east coast, outside the contested Strait of Hormuz, as Abu Dhabi moves to build infrastructure bypassing the critical waterway severely disrupted by the Iran war. Chief Financial Officer Peter van Driel told Bloomberg Television the company is examining options along the country's east coast but has not made a final decision. The announcement follows confirmation that LNG tankers have continued docking at ADNOC's Das Island terminal inside the Gulf despite ongoing risks, with satellite imagery showing vessels entering and leaving the strait even as attacks on shipping persist. This marks the latest in a series of UAE infrastructure decisions aimed at reducing dependence on Hormuz transit, following the expansion of the Abu Dhabi crude oil pipeline to Fujairah and increased use of the eastern export route since the conflict began in late February. The move carries strategic and commercial significance for the UAE. An east-coast LNG facility would allow ADNOC Gas to maintain export commitments to Asian and European markets without exposing every cargo to the Hormuz chokepoint, where 15 ADNOC vessels have been struck since February according to the company's own reports. It also positions Abu Dhabi to capture long-term LNG market share as buyers seek supply sources with lower transit risk. The decision reflects a broader UAE hedging strategy: maintaining flows through Hormuz when possible while building parallel export capacity that can absorb traffic if the strait remains contested or if Iran's conditions for reopening prove unacceptable. For global energy markets, a UAE east-coast LNG terminal would add resilience to Gulf gas supply at a time when Europe and Asia are scrambling for non-Russian volumes, though any new facility would take years to construct and commission.