The Government of the United Arab Emirates (UAE) is planning to move the location of the proposed natural gas export facility from Fujairah on the Gulf of Oman coast to the Ruwais port in the Persian Gulf.

Initially, the government-backed Abu Dhabi National Oil Company (ADNOC) planned to open the facility at Fujairah, a key trading hub for oil commodities in the Middle East.

The proposed facility is anticipated to more than double the UAE’s current capacity for producing liquefied natural gas.

According to a Bloomberg report, ADNOC, after considering all possible locations, determined that Ruwais benefited from being close to several of Adnoc’s important facilities, including gas fields and petrochemical plants.

The Ruwais facility, which is still in the design phase, would have electric-powered processing facilities and run on nuclear and renewable grid power, making it an LNG facilities with the lowest carbon intensity globally.

ADNOC did not disclose the cost of building the LNG facility but such facilities usually need investment of billions of dollars.

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The UAE is increasing its gas output to supply local power plants, burgeoning chemicals industry, and the expanding demand for LNG in Europe and Asia.

Earlier this week, ADNOC signed a three-year LNG supply deal with TotalEnergies Gas and Power, a subsidiary of French energy major TotalEnergies

Based on current market conditions, the arrangement will be worth between $1bn and $1.2bn and is scheduled to start in 2023 and end in 2025.