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 that will position Khalifa Port into a leading trading hub for low-carbon energy and petrochemical logistics.
The agreements include the development of the UAE’s first private-sector Liquefied Natural Gas (LNG) and Liquified Petroleum Gas (LPG) terminal hubs, that can accommodate large, long-haul gas carriers.
Together, these two facilities are set to expand Khalifa Port’s capabilities to meet the evolving demand of international energy trade, while supporting the UAE’s Net Zero 2050 strategy, AD Ports said.
The deal, based on the projected 50-year multiple revenue streams from the two terminal hubs, is valued at over AED 30 billion (over $8 billion).
Under the agreements, AD Ports Group has committed to invest up to AED 1.3 billion ($354 million) to develop the required infrastructure (primarily dredging and development of jetties ), while Nimex Terminals will invest up to AED 2.6 billion ($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 5-year period with the associated investments spread over the same timeframe.