Abu Dhabi National Petroleum Company (ADNOC) plans to build a new LNG plant in a global race by producers to expand their exports amid rising demand.
The LNG facility, to be built in Fujairah, will be able to produce up to 9.6 million tons per year.
The UAE currently has three 5.8 million tonnes of combined liquefaction plants per year on das island within the Gulf.
ADNOC said in a statement on its Linkedin page that it has appointed McDermott International Ltd. as a design contractor and plans to award a contract to build the plant in 2023. The plant will use new "clean energy"-focused technologies to reduce the carbon density of its LNG.
This comes as the desire for LNG among energy consumers has grown since the Russian invasion of Ukraine, particularly in Europe, boosting the global fuel market, which has already risen through increased demand in Asia last winter.
A pipeline linking gas production facilities in Habshan, Abu Dhabi, to Fujairah is scheduled to be built, with the liquefaction plant to begin in 2027, Bloomberg quoted two sources as saying.
A government official said earlier that the UAE was considering building an LNG plant in Fujairah to facilitate additional exports, and ADNOC agreed last month to buy two liquefied natural gas tankers from a Chinese shipyard.
The UAE ranked 12th among the world's largest LNG producers last year. Investing $20 billion to develop more natural gas resources means it will be able to produce more by 2025. The country aims to achieve self-sufficiency by 2030.