By: AGBI

Abu Dhabi’s AD Ports Group has signed an agreement worth more than AED30 billion ($8.2 billion) with Nimex Terminals to establish the UAE’s first private sector liquefied natural gas and liquified petroleum gas terminals in Khalifa Port.

The facilities will be developed in phases over five years, the company said in a statement to the Abu Dhabi Securities Exchange.

AD Ports will invest up to AED1.3 billion to develop infrastructure, including dredging and jetty development. Nimex Terminals will allocate up to AED2.6 billion in advanced LNG and LPG storage tanks and superstructure construction – which refers to anything above ground.  

The LNG terminal, which will cover an area of 130,000 square metres, will include cryogenic storage facilities with a total capacity of 400,000 cubic metres. The 90,000 square metre LPG facility will have a total capacity of 280,000 cubic metres.

Both will serve as hubs for import, export and transshipment operations, primarily catering to the growing demand from Asian markets, the statement said.

The deal is based on the projected 50-year multiple revenue streams from the two terminals.

Operations are expected to begin by mid-2028, with the LNG terminal expected to be fully functional by 2031 and the LPG centre by 2033.

In October AD Ports signed a preliminary agreement with China’s SPG Yantai Port to establish green automotive business parks in an effort to promote vehicle trade between Asia, the Middle East and North Africa.

Shares of AD Ports closed more than 1 percent higher at AED4.63 on Tuesday, but have fallen 22 percent so far this year.

The company has a free float of nearly 25 percent, while sovereign wealth fund ADQ owns a 75 percent stake.