Batool Ghaith (ABU DHABI)
Khalifa Port is set to become home to the UAE’s first private-sector LNG and LPG terminal hubs, as AD Ports Group teams up with Nimex Terminals in a landmark deal aimed at accelerating the nation’s low-carbon energy ambitions.
With a combined investment value exceeding Dh30 billion, the deal is expected to transform Khalifa Port into a leading trading centre for low-carbon energy and petrochemical logistics, AD Ports Group stated.
AD Ports Group noted that the development will significantly expand the port’s capabilities to meet growing international energy demand while aligning with the UAE’s Net Zero 2050 strategy. Initial operations are scheduled to begin by mid-2028, with the LNG terminal reaching steady-state operations by 2031 and the LPG terminal by 2033.
“In the first two years, the investor plans to complete the design and engineering for the new terminal, followed by the commencement of construction and infrastructure development. The goal of the investor is to establish fully operational and world-class terminals that can handle LNG and LPG,” Marco Montefiore, Director at Nimex Terminals, told Aletihad.
According to AD Ports Group, the LNG terminal will span 130,000 square metres and house cryogenic storage facilities with a total capacity of 400,000 cubic metres. The LPG terminal, covering 90,000 square metres, will eventually provide 280,000 cubic metres of storage capacity. Both facilities are designed to support import, export, and transshipment operations, with a primary focus on the growing energy demands of Asian markets.
Montefiore added that the infrastructure is being built with the future in mind. “The terminal investments being made by the investor are specifically designed to cater for gaseous products to be stored in cryogenic conditions and to primarily meet the regional energy.”
“AI and advanced digital solutions will play a central role in the terminal’s operations, from predictive maintenance and optimised vessel scheduling to energy efficiency monitoring and emissions tracking. We are aware that our partners, AD Ports Group, continues to invest in AI-driven logistics to enhance safety, operational reliability, and sustainability across our entire energy portfolio,” Montefiore said.
Jakob Larsen, Chief Strategy and Growth Officer at Abu Dhabi Ports, emphasised the importance of transparency and digital transformation across the supply chain.
“AD Ports will leverage best in technology to bring transparency in the supply chains,” Larsen told Aletihad.
He also pointed to Abu Dhabi’s leadership in maritime decarbonisation, “Abu Dhabi is leading the decarbonisation agenda through initiatives such as attracting investments in alternative and green fuel storage and alternative fuel bunkering segment, investing in shore power facilities. AD Ports Group is actively supporting this transition by integrating sustainability metrics across operations and facilitating the use of cleaner fuels within our ports and logistics hubs.”
The new terminals will benefit from Khalifa Port’s advanced maritime infrastructure and its multimodal connectivity by sea, land, air, and rail.
“Our geographic location and expansion plans build critical connectivity that enables and facilitates regional energy trade flows. These developments create strategic corridors linking demand centers with origination locations, ensuring diversified access and resilient logistics for energy commodities, including LNG and clean fuels,” Larsen added.
Under the agreements, AD Ports Group will invest up to Dh1.3 billion in infrastructure development, while Nimex Terminals will contribute up to Dh2.6 billion to build advanced storage and regasification facilities, pipelines, and supporting structures. The investment will be phased over 50 years, AD Ports Group reported.