Written by: Basant El-Farmawy
The United Arab Emirates' exports of liquefied natural gas (LNG) saw a 4% year-on-year decline during the third quarter of 2026, reaching approximately 0.94 million tons compared to 0.98 million tons in the same period of 2025. Despite this annual decline, exports recorded a notable quarterly jump of 88% compared to the levels of the second quarter of the same year.
Impact of the Strait of Hormuz crisis on export traffic
UAE export levels were affected by the repercussions of the Iranian war and the crisis in the Strait of Hormuz, which is the main passage for Emirati and Qatari exports. March 2026 recorded the lowest level of exports historically, with a 90% decline, as only one shipment was exported to China. April 2026 also saw the second worst month historically, with exports not exceeding 62,000 tons destined for Japan.
Over the first nine months of 2026, total exports fell by 38% to reach 2.40 million tons, compared to 3.87 million tons during the same period in 2025.
India accounts for the majority of UAE shipments
India captured the lion's share of UAE LNG exports during the third quarter of 2026, with a single country (India) accounting for 80% of total shipments. India's imports of Emirati LNG rose by 14% to reach 0.75 million tons during this quarter. In contrast, Japan imported 0.12 million tons during the same period, representing a 36% decline compared to last year.
Expansion plans and infrastructure development
The UAE is working on studying the establishment of an integrated gas liquefaction project in the Fujairah region to overcome the challenges of the Strait of Hormuz. The country currently relies on Das Island plant with a capacity of 5.8 million tons annually, with plans to build a new plant in Ruwais with a capacity of 9.6 million tons annually, expected to be operational in 2028.
In the context of commercial expansion, ADNOC has concluded several strategic agreements, including an agreement with Japan's INPEX Corporation to supply one million tons annually for 15 years, an agreement with Thailand's Gulf Group to supply two million tons starting from 2027, in addition to an agreement with Germany's RWE to supply one million tons annually for 10 years.
