AD Ports Group have signed two long-term agreements with Nimex Terminals that will position Khalifa Port into a leading trading hub for low-carbon energy and petrochemical logistics. The deal, based on the projected 50-year multiple revenue streams from the two terminal hubs, is valued at over US$8 billion.
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The agreements include the development of the UAE’s first private-sector Liquefied Natural Gas (LNG) and Liquified Petroleum Gas (LPG) terminal hubs, that can accommodate large, long-haul gas carriers. Together, these two facilities are set to expand Khalifa Port’s capabilities to meet the evolving demand of international energy trade, while supporting the UAE’s Net Zero 2050 strategy, AD Ports said.
Under the agreements, AD Ports Group has committed to invest up to US$354 million to develop the required infrastructure (primarily dredging and development of jetties), while Nimex Terminals will invest up to US$700 million in advanced LNG and LPG storage tanks and other superstructure construction, including regassification facilities, pipelines with instrumentation controls, loading arms, flare structures, and firefighting systems.
The two facilities will be developed in phases over a 5-year period with the associated investments spread over the same timeframe.