UAE gas plant damage threatens longer LNG disruption

Damage to the UAE’s largest gas processing plant is expected to take until 2027 to fully repair, raising the prospect of prolonged disruption across LNG (Liquefied Natural Gas) markets and commodity finance flows.

The Habshan gas processing facility, operated by Adnoc Gas, was damaged during Iranian attacks in April. The company is aiming to restore the plant to around 80% capacity by the end of 2026, with full recovery not expected until next year.

The disruption has already affected earnings. Adnoc Gas reported a decline in first-quarter net income after export disruption prevented LNG shipments during part of March.

For commodity finance markets, the key issue is the duration of the outage. Short-term disruption can often be managed through inventories and replacement cargoes. A repair timeline stretching into 2027 creates greater uncertainty for LNG buyers, shipping firms, insurers and banks financing cargo flows.

The UAE remains an important supplier of LNG and related energy products into Asian and global markets. Reduced export capacity could tighten supply conditions and increase working capital needs for importers seeking alternative cargoes.

The development also highlights growing infrastructure risk across energy finance markets. Gulf assets that were previously viewed as relatively secure are now being reassessed through a geopolitical risk lens.

For banks and insurers exposed to LNG trade, physical infrastructure disruption is becoming as important as shipping and freight risk.