UAE restarts key gas plant as Hormuz disruption curbs LNG exports

The United Arab Emirates has resumed operations at its largest gas processing facility following an attack that halted output, even as exports of liquefied natural gas remain severely constrained by disruption in the Strait of Hormuz.

The Habshan gas processing plant, operated by ADNOC Gas Plc, is again supplying the domestic network after last week’s outage, according to a person familiar with the situation. The facility is critical to meeting much of the country’s energy demand.

However, the UAE’s only LNG export facility at Das Island in the Persian Gulf is running at very low levels due to the inability to ship cargoes through Hormuz, the person said. The individual declined to be identified due to the sensitivity of the situation.

ADNOC Gas said on March 23 that it had made “temporary operational adjustments to LNG production in response to shipping disruption in Hormuz”. The company added that it is “actively collaborating with customers and partners on a transaction-by-transaction basis to fulfill commitments where possible”.

The partial recovery of domestic supply has been supported by imports of gas from Qatar via the Dolphin pipeline, alongside the restart of Habshan, the person said, helping to keep the UAE’s gas network fully supplied despite the disruption to exports.

The developments highlight the vulnerability of regional energy flows to instability around the Strait of Hormuz, a narrow waterway through which roughly a fifth of global oil and significant volumes of LNG pass. Recent tensions have raised concerns over the security of shipments and the knock-on effects for global energy markets.

Bloomberg reported on March 24 that the operational adjustments reflect logistical constraints rather than damage to export infrastructure, underscoring how shipping bottlenecks can curtail supply even when production capacity remains intact.

The UAE has invested heavily in gas infrastructure and export capacity in recent years, positioning itself as a reliable supplier to Asian markets. But the current disruption has forced a shift in focus towards maintaining domestic supply, as companies navigate restricted access to one of the world’s most critical energy corridors.

The Strait of Hormuz remains a chokepoint for global energy trade, with any prolonged disruption likely to tighten markets already strained by geopolitical tensions and supply constraints.