Khalifa Port Signs LNG and LPG Terminal Development Deals Worth AED 30 Billion
Abu Dhabi’s AD Ports Group has signed two landmark agreements with Nimex Terminals that will position Khalifa Port as a major regional and global hub for low-carbon energy and petrochemical logistics. The deals, valued at more than AED 30 billion (US$8 billion) based on projected 50-year revenue streams, will support the UAE’s ambitions to expand its role in the international energy supply chain and accelerate the maritime industry’s transition toward cleaner fuels.
The agreements mark the development of the country’s first private sector Liquefied Natural Gas (LNG) and Liquified Petroleum Gas (LPG) terminal hubs. Both facilities will be designed to accommodate large deep-sea gas carriers and provide the critical infrastructure required to meet the rising global demand for LNG and LPG for power generation, industrial applications, and maritime bunkering. As shipping companies worldwide respond to decarbonisation mandates, demand for low-carbon alternative fuels has increased sharply — a trend the UAE aims to harness through strategic investments at Khalifa Port.
Under the terms of the partnership, AD Ports Group will allocate up to AED 1.3 billion (US$354 million) for core infrastructure development. This includes extensive dredging works, construction of dedicated jetties, and expansion of the port’s marine capabilities to handle large-scale gas operations. Nimex Terminals, for its part, will invest up to AED 2.6 billion (US$700 million) to build the LNG and LPG storage tanks and related superstructure, ensuring world-class receiving, holding, and distribution capabilities for both fuels.
The LNG terminal will span an area of 130,000 m² and feature advanced cryogenic storage tanks with a total capacity of 400,000 m³. These facilities will support import, export, and transshipment activities, enabling flexible supply options for regional and global customers. Meanwhile, the 90,000 m² LPG terminal will ultimately deliver 280,000 m³ of storage capacity, strengthening the UAE’s ability to serve expanding energy markets — especially across Asia, where demand for LPG continues to grow due to its use in petrochemicals, residential energy, and cleaner industrial processes.
Beyond storage and handling, both terminals will be developed as integrated logistics hubs, designed to support bunkering operations for LNG- and LPG-fueled vessels. This capability is set to become a major competitive advantage as global shipping fleets transition away from conventional fuels and seek reliable supply points across key trade routes. Khalifa Port’s strategic location between Asia, Africa, and Europe positions it ideally to meet this demand.
The development of the two terminals will follow a phased timeline spanning five years, allowing for investments and construction works to progress in line with market growth. Initial operations are expected by mid-2028, providing early capacity to meet rising LNG and LPG trade flows. Full steady-state operations are targeted for 2031 for the LNG terminal and 2033 for the LPG terminal, following progressive commissioning and capacity ramp-up.
Officials said the phased approach would help ensure early market readiness while supporting medium- and long-term energy logistics needs across the region. The terminals are expected to boost trade volumes, attract new maritime traffic, and create a foundation for additional downstream and value-added services.
With these agreements, Khalifa Port continues its rapid evolution into one of the Middle East’s most advanced and diversified ports, aligning with the UAE’s broader vision of positioning itself as a global logistics, energy, and industrial powerhouse.
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