Habshan Gas Complex, the UAE's largest natural gas processing facility, sustained severe damage in an Iranian attack in April and is not expected to fully restore its production capacity until 2027. Adnoc Gas, the operator of the plant, confirmed this repair timeline in a statement to the Abu Dhabi Securities Exchange on Tuesday.
Attack and Casualties: Two Incidents, One Fatality On April 3, debris from an Iranian drone caused two fires at the Habshan complex, resulting in the death of an Egyptian engineer and injuries to four others. The facility was attacked again on April 8, forcing another operational shutdown. Adnoc Gas described the damage at the time as "significant."
Repair Progress: Phased Capacity Restoration The Habshan complex consists of five plants and 14 processing units, with a daily processing capacity of 6.1 billion standard cubic feet, making it one of the world's largest gas processing bases. Adnoc Gas stated that 60% of capacity was restored shortly after the attack, with a target to reach 80% by the end of 2026 and achieve full capacity operation in 2027.
Chain Reaction: Financial Setback and Strait of Hormuz Blockade Adnoc Gas missed out on benefits from rising oil prices in March due to an inability to export liquefied natural gas. The company's first-quarter net profit fell 15% year-on-year to USD 1.079 billion. Since the outbreak of conflict on February 28, Iran's threats to shipping have rendered the Strait of Hormuz nearly impassable, severely constraining trade for the UAE, the region's third-largest LNG producer with annual exports of approximately 5 million tons. Adnoc Gas anticipates that second-quarter net profit could further decline to between USD 400 million and USD 600 million.
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