AD Ports Group and Nimex Terminals have officially broken ground on the UAE’s first private-sector LPG mega-hub at Khalifa Port. The strategic 280,000 m3 facility features 16-meter deepwater jetties designed to serve the global VLGC fleet and alternative marine fuel markets.
Abu Dhabi | February 24, 2026 – In a move that signals a tectonic shift in the Middle East’s energy logistics landscape, AD Ports Group and Nimex Terminals have officially broken ground on the UAE’s first private-sector Liquefied Petroleum Gas (LPG) terminal.
The ceremony, held at the deepwater flagship Khalifa Port, marks the beginning of a multi-year construction phase that will transform Abu Dhabi into a critical junction for the global LPG trade, bridging the gap between massive production centers and the energy-hungry markets of Asia, Africa, and Europe.
A New Frontier in Energy Logistics
First announced in November 2025 alongside a parallel LNG terminal development, the Nimex LPG hub is a response to the “bunker transition” and the shifting demands of global trade. As the maritime industry moves away from traditional heavy fuels, the availability of large-scale gas storage at a primary transshipment hub like Khalifa Port provides shipowners and traders with a much-needed alternative.
The facility is specifically engineered to handle the world’s largest long-haul gas carriers. With a 16-meter draft depth at its dedicated LPG jetties, the terminal will allow for the seamless berthing of Very Large Gas Carriers (VLGCs), streamlining the “ship-to-shore” and “ship-to-ship” transfer processes that are currently bottlenecks in other regional ports.
Technical Precision: Scaling to 280,000 m3
The project is being rolled out in two aggressive phases, prioritizing both scale and safety:
Phase 1 Specifications:
- Refrigerated Storage: Two full-containment tanks with a combined capacity of 117,000 m3 (50,000 for propane and 67,000 for butane).
- Mixed LPG Storage: Four mounded “bullet” tanks totaling 21,000 m3.
- Timeline: Commissioning is expected within 36 months.
Phase 2 Expansion:
Following the completion of the initial infrastructure, AD Ports and Nimex plan to double down, bringing the total terminal capacity to 280,000 cubic meters. This scale will allow Abu Dhabi to act as a “buffer” for regional energy security, offering traders the flexibility to store and blend products based on real-time market fluctuations.
Strategic Vision: Strengthening the Global Energy Ecosystem
Saif Al Mazrouei, CEO of the Ports Cluster at AD Ports Group, emphasized the strategic nature of the partnership:
“The Nimex LPG terminal exemplifies the type of high-quality strategic infrastructure investment that strengthens the port’s energy ecosystem. This development reflects a shared commitment to disciplined execution, operational excellence, and long-term value creation.“
Azmat Mahmood, Chairman of Nimex Terminals, highlighted the vision for connectivity:
“Our vision is to build a resilient, world-class LPG logistics platform that connects global supply with regional demand through Abu Dhabi. We are proud to work alongside AD Ports Group in delivering infrastructure that underpins the UAE’s role as a trusted global energy hub.”
Safety and Environmental Stewardship
In an era of heightened environmental scrutiny, the terminal’s design is a study in risk mitigation. By choosing full-containment refrigerated tanks and mounded bullet storage, the developers are utilizing the most robust safety technologies available. These designs protect the cargo from external impacts and minimize the “boil-off” of gas, significantly reducing the facility’s carbon footprint compared to older storage designs.
Future-Proofing Khalifa Port: Aligning with IMO 2030 Standards
The groundbreaking at Khalifa Port is a direct answer to the “chicken and egg” problem of alternative marine fuels. Shipowners have been reluctant to invest in LPG-fueled vessels due to a lack of large-scale bunkering infrastructure.
By establishing a private-sector terminal of this magnitude, AD Ports is sending a clear signal: The infrastructure is here. This terminal doesn’t just store gas; it provides the “optionality” that modern bunkering requires, allowing for a mix of propane, butane, and mixed LPG products to be readily available for a diversifying global fleet.
About Nimex Terminals
Nimex Terminals, a subsidiary of the Nimex Petroleum Group, is a leading infrastructure development and terminal operating company with over three decades of international experience in energy trading, logistics, and finance across Africa, the Middle East, and Europe. The company is strategically investing in next-generation storage, regasification, and supply chain assets to support global clean energy transition efforts.
About AD Ports Group
AD Ports Group (ADX: ADPORTS), is a key enabler of trade and logistics, supporting the UAE’s economic diversification and growth. The company’s integrated business model spans across five major clusters: Digital, Economic Cities & Free Zones, Logistics, Maritime & Shipping, and Ports. AD Ports Group connects global maritime routes and international trading partners, offering world-class services across its network of ports and logistics hubs.
Over the years, AD Ports Group has developed into an integrated premier enabler of trade, industrialization, and economic diversification. Established by Emiri Decree and owned by ADQ, one of the region’s largest holding companies, AD Ports Group continues to play a vital role in the UAE’s long-term economic vision.
Source AD Ports Group