Abu Dhabi’s Private Department launches a USD 1.2 bn LNG fund for UAE and region

Abu Dhabi’s Private Department of Sheikh Mohammed bin Khalid Al Nahyan is raising USD 1.2 bn for a new LNG fund that will back energy and infrastructure in the UAE and selected regional markets, Wam reports. The Pvt Dpt – LNG Fund (CEIC) IC was set up with the Department’s affiliate KSH Investments and will be managed by ADGM-regulated Reem Partners. The state news agency didn’t say whether the fund will invest in projects directly or through a platform.

BACKGROUND- The fund builds on the Department’s existing partnership with EIG and MidOcean Energy, through which it committed USD 1.13 bn to MidOcean. MidOcean has since reported more than USD 4 bn in closed and pending equity commitments over the 12 months to October, double its original target, according to a press release. The money goes toward producing LNG assets and projects still in development across a portfolio that spans Canada, Australia, Peru, and the US. Neither announcement says whether the new fund’s USD 1.2 bn is fresh capital or overlaps with earlier commitments.

Why it matters: LNG loadings from Qatar and the UAE fell by 35 bcm between March and June as the conflict disrupted exports through Hormuz. Higher output elsewhere made up about 27 bn cbm. Asian spot LNG reached USD 29.3 / mmBtu in the week to 16 October, nearly three times its pre-war level, Reuters reports.

The UAE can pipe its crude to the east coast, but not its gas: Adnoc’s Habshan-Fujairah crude pipeline carries up to 1.8 mn bbl / d} to Fujairah, outside Hormuz. Das Island’s 6 mtpa LNG plant and the 9.6 mtpa Ruwais LNG project, due to start operations in 2028, both sit inside the strait. Adnoc Gas is studying an east-coast LNG export facility but hasn’t taken a final investment decision.