SupplyTuesday, 12 May 2026·India
UAE’s Habshan Gas Plant Still Running Below Capacity After Iran War Damage
ADNOC Gas has confirmed that the UAE’s major Habshan gas processing plant is currently operating at only around 60% capacity after sustaining damage during the Iran war earlier this year.
According to reports, the facility was hit twice in April during attacks targeting regional energy infrastructure. The Habshan plant is one of the UAE’s key gas processing hubs and plays an important role in supplying natural gas across the country.
The company expects operating rates to improve gradually, targeting around 80% utilization by the end of this year, while full recovery is not anticipated before 2027.
The ongoing disruption comes at a time when energy flows across the Gulf region remain under pressure due to the near closure of the Strait of Hormuz. ADNOC Gas said the shipping disruption is expected to create a financial impact of nearly $400–600 million during the second quarter.
LNG export operations have also been affected as limited vessel movement continues to disrupt regional supply chains. Company officials stated that shipments are ready to resume once the Strait of Hormuz fully reopens, although no clear timeline has been confirmed yet.
Reports also suggest that several LNG cargoes unable to reach customers are currently being stored either onboard vessels or inside storage tanks until transportation conditions improve.
Recent vessel tracking data indicated that at least two LNG carriers departing from Abu Dhabi’s Das Island facility crossed the Strait of Hormuz after temporarily disabling their tracking systems.
Despite the challenges, ADNOC Gas said it remains in close coordination with customers and business partners to fulfill contractual commitments wherever possible while navigating the ongoing logistical disruptions in the region.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
According to reports, the facility was hit twice in April during attacks targeting regional energy infrastructure. The Habshan plant is one of the UAE’s key gas processing hubs and plays an important role in supplying natural gas across the country.
The company expects operating rates to improve gradually, targeting around 80% utilization by the end of this year, while full recovery is not anticipated before 2027.
The ongoing disruption comes at a time when energy flows across the Gulf region remain under pressure due to the near closure of the Strait of Hormuz. ADNOC Gas said the shipping disruption is expected to create a financial impact of nearly $400–600 million during the second quarter.
LNG export operations have also been affected as limited vessel movement continues to disrupt regional supply chains. Company officials stated that shipments are ready to resume once the Strait of Hormuz fully reopens, although no clear timeline has been confirmed yet.
Reports also suggest that several LNG cargoes unable to reach customers are currently being stored either onboard vessels or inside storage tanks until transportation conditions improve.
Recent vessel tracking data indicated that at least two LNG carriers departing from Abu Dhabi’s Das Island facility crossed the Strait of Hormuz after temporarily disabling their tracking systems.
Despite the challenges, ADNOC Gas said it remains in close coordination with customers and business partners to fulfill contractual commitments wherever possible while navigating the ongoing logistical disruptions in the region.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.