AD Ports

AD Ports, Nimex Terminals to establish LNG, LPG terminal hubs at Khalifa Port

Business Developments & Projects

The UAE-based terminal operator AD Ports Group and Nimex Terminals, an affiliate of the global trading organization Nimex Petroleum Group, have signed two long-term agreements to establish liquefied natural gas (LNG) and liquefied petroleum gas (LPG) terminal hubs at Khalifa Port.

Courtesy of AD Ports

The UAE’s first private-sector LNG and LPG terminal hubs will strengthen the country’s position as a global energy hub, according to AD Ports.

Capable of accommodating large, long-haul gas carriers, these two facilities will expand Khalifa Port’s capabilities to meet the evolving demand of international energy trade, while supporting the UAE’s Net Zero 2050 strategy.

The deal, based on the projected 50-year multiple revenue streams from the two terminal hubs, is valued at over AED 30 billion (over USD 8 billion).

The agreements will provide Khalifa Port with the infrastructure required to fuel vessels with lower-emission LNG and LPG, two of the fastest-growing alternative fuels in the global maritime industry.

“These agreements represent a transformative milestone for Khalifa Port and the UAE’s energy sector. Through our partnership with Nimex Terminals, we will equip Khalifa Port, one of the world’s fastest growing ports, with lower-impact fuel infrastructure that advances our commitment to a more sustainable future for the global ports and shipping industries,” Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, commented.

“… AD Ports Group remains dedicated to investing in a sustainable future that creates long-term value not only for our Group and our industry, but also for the people of Abu Dhabi and the UAE.”

Both of the gas facilities will benefit from Khalifa Port’s maritime infrastructure and multimodal connectivity via sea, land, air, and rail, as well as its proximity to Khalifa Economic Zones – Abu Dhabi (KEZAD), the group’s integrated system of economic cities and free zones. Strategically located between Asia, Africa, Europe, and the Middle East, Khalifa Port offers access to major trade corridors.

“Nimex Terminals is proud to partner with AD Ports Group, one of the world’s leading enablers of trade, logistics, and industry, to advance the clean energy transition through our joint investment at Khalifa Port. The LNG and LPG infrastructure investments we have agreed upon, will further enhance the attractiveness of one of the world’s fastest growing container ports, and reaffirm our commitment towards driving sustainable economic growth through the adoption of advanced, low-emission fuel technologies,” Azmat Mahmood, Executive Chairman of Nimex Terminals Ltd., said.

Under the agreements, AD Ports Group has committed to invest up to AED 1.3 billion (USD 354 million) to develop the required infrastructure (primarily dredging and development of jetties), while Nimex Terminals will invest up to AED 2.6 billion (USD 700 million) in advanced LNG and LPG storage tanks and other superstructure construction, including regassification facilities, pipelines with instrumentation controls, loading arms, flare structures, and firefighting systems.

The two facilities will be developed in phases over a five-year period with the associated investments spread over the same timeframe.

The LNG terminal, spanning 130,000 square meters, will feature cryogenic storage facilities with a total capacity of 400,000 cubic meters. The LPG facility, occupying 90,000 square meters, will ultimately 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.

Initial operations are expected to commence by mid-2028, with steady-state operations projected to be achieved by 2031 for the LNG terminal, and by 2033 for the LPG terminal.

As explained, this phased approach ensures early market readiness while supporting medium and long-term growth in LNG and LPG trade volumes.

Beyond infrastructure, the agreements are expected to deliver significant economic impact, attracting foreign direct investment, creating high-value employment opportunities, and stimulating ancillary sectors such as shipping, logistics, and energy services.

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