AD Ports, Nimex to invest up to AED 3.9 bn into new gas terminal at Khalifa Port

AD Ports + Nimex partner to set up LNG, LPG terminal hub: AD Ports Group has inked two long-term agreements with Nimex Terminals to develop LNG and LPG terminal hubs at Khalifa Port, according to a statement. The agreement is valued at over AED 30 bn — based on the projected 50-year multiple revenue streams outpouring from the two terminal hubs.

These would be the UAE’s first private-sector LNG and LPG terminal hubs accommodating large, long-haul gas carriers. The move aims to bolster Khalifa Port’s capacity to address growing demand from the international energy trade, specifically rising demand from Asia.

The plan: AD Ports Group will invest up to AED 1.3 bn to develop the required infrastructure, including dredging and the establishment of jetties. Nimex Terminals will plug up to AED 2.6 bn into setting up advanced LNG and LPG storage tanks, as well as other superstructure construction, which features regasification facilities, pipelines, loading arms, flare structures, and firefighting systems.

Initial operations are slated to launch by mid-2028, with the facilities planned in phases over five years. “Steady-state operations” are scheduled to be locked in by 2031 for the LNG terminal, whereas the LPG terminal is expected to hit the benchmark by 2033.

The specs: The LNG terminal — spanning some 130k sqm — will include cryogenic storage facilities with a total capacity of 400k cbm. The LPG terminal, covering some 90k sqm, will host a total capacity of 280k cbm.

REMEMBER- LNG demand is projected to rise by 50% by 2040 — fueled by a fourfold surge in data center power demand and a growing global aviation fleet driving a 30% increase in jet fuel consumption.