• The Habshan gas-processing complex in Abu Dhabi is running at about 60% capacity after Iranian strikes, with full recovery not expected until 2027.
  • ADNOC Gas aims to restore 80% capacity by end-2026, but phased repairs and ongoing security risks could delay the timeline.
  • The disruption tightens regional gas supply and adds to energy market volatility, amid broader Gulf tensions affecting shipping routes like the Strait of Hormuz.

The Habshan gas-processing complex, one of the world's largest, will not return to full capacity until 2027 after Iranian strikes in April damaged production, according to operator ADNOC Gas. The facility is currently operating at roughly 60% capacity, with a target of reaching 80% by the end of 2026, but a full recovery is now expected in 2027. The attacks caused fires and disrupted operations at the plant, which is a linchpin of the UAE's gas self-sufficiency and export infrastructure.

"Efforts to restore full output have hit a snag due to the extent of the damage and the need to ensure safety," said a person familiar with the matter. ADNOC Gas has been working on phased restorations, but the timeline underscores the vulnerability of critical energy infrastructure in the region. The company did not respond to requests for comment on the specific causes of the delay.

The strikes are part of a broader regional escalation that has also hit Gulf shipping routes, including the Strait of Hormuz, driving energy market instability and higher prices. Habshan's partial outage tightens regional gas supply and supports higher global energy prices, given its role in LNG supply chains. Industry analysts note that ADNOC's broader expansion plans—aiming to increase gas processing capacity through 2027—may face headwinds if disruptions persist.

Adam Nowak, an energy analyst at a London-based consultancy, said: "This is a significant outage that will keep markets on edge. The UAE's push for gas self-sufficiency is resilient, but repeated shocks highlight the need for accelerated investments in security and diversification."

Public discourse in the UAE has centered on energy security and the resilience of critical infrastructure, with authorities condemning attacks on energy sites. The incident also raises questions about insurance and risk premia for Gulf energy investments, as well as diplomatic efforts to stabilize regional tensions.

Correction: An earlier version of this article incorrectly stated the timing of the attacks as March. They occurred in April.