ADNOC Gas Weighs Alternative LNG Export Routes as Hormuz Shipments Stay Below Pre-Conflict Levels

ADNOC Gas is actively studying ways to reduce its reliance on the Strait of Hormuz for LNG exports, with both its CEO and CFO confirming the review is ongoing but no final decisions have been made. The Wall Street Journal reported exclusively that one option under consideration is a new LNG export facility on the UAE's east coast, near Fujairah, which would allow cargoes to bypass the strait entirely.

The CFO acknowledged that LNG shipments through the Strait of Hormuz have not yet recovered to pre-conflict levels, though the company is seeing month-by-month improvement in the volume of cargoes successfully transiting the waterway. No commitment has been made to any alternative export infrastructure.

Broader shipping data points to a gradual easing of the disruption. LNG traffic through Hormuz hit its highest level since the Iran conflict began, according to Investing.com, and Chinese crude oil imports rose to a seven-month high in October on a recovery in Persian Gulf shipments. Energy analyst Javier Blas noted that Middle East exports of crude, refined products, and LNG have all been rising since late October and accelerated into early November, arguing that Iran is losing leverage as it fails to choke off flows through the strait or force reliance on bypass routes. Falling crude prices lifted broader European equity markets, with the FTSE 100 climbing, though energy majors lagged the broader rally.