Latest News

• 
  Contractor begins work on Jafurah fourth expansion phase

  Administrator

  11 June 2026

  

   

  Register for MEED’s 14-day trial access 

  Indian contractor Larsen & Toubro Energy Hydrocarbon (L&TEH) has started engineering, procurement and construction (EPC) works on the fourth expansion phase of the Jafurah unconventional gas development in Saudi Arabia, after being selected by Saudi Aramco as the main contractor.

  The main scope of work on the Jafurah fourth expansion phase project involves the EPC of two gas compression trains at the giant gas basin in the kingdom’s Eastern Province. Each plant will be able to process up to 200 million cubic feet a day (cf/d).

  MEED reported in April that Aramco had selected L&TEH as the main contractor for the Jafurah fourth expansion phase, which sources estimate could be valued at around $1.5bn.

  Aramco has, however, only issued a draft letter of award for the project to L&TEH, based on which the contractor has started EPC works. The official contract award and final investment decision (FID) are pending, according to sources.

  The detailed scope of work on the Jafurah fourth expansion phase involves the EPC of the following process and utilities units at the south field of the Jafurah reserve:

  • Two gas compression trains of 200 million cf/d capacity each, measuring 400 by 400 metres
  • Gas compression plant inlet area
  • Gas compression plant condensate and produced-water handling
  • Instrumentation and plant air unit
  • Nitrogen generation unit
  • Raw/potable/water utilities
  • Chemical injection systems
  • Diesel systems
  • Flare and flare gas recovery systems
  • Gas compression plant burn pit
  • Closed drain system
  • Oily water system
  • Sanitary water system
  • Stormwater system
  • Firewater system
  • Fire and gas protection system
  • All buildings located within the gas compression plant, excluding security buildings
  • Outside battery limit buildings

  Contractors submitted proposals for the Jafurah fourth expansion phase project by the deadline of 15 January 2025, MEED previously reported. Following the submission of bids, Aramco initially requested that contractors extend the validity of their bids until the end of September, as it needed more time to evaluate the proposals.

  The Saudi energy giant then asked contractors to extend the validity of their base proposals until February this year, and the bidders complied, MEED earlier reported.

  Along with requesting bidders for a second bid validity extension, Aramco also sought an alternative set of commercial proposals from contractors, as per sources. Bidders submitted the second price option to the client in December, they added.

  The following contractors are among those that are understood to have submitted bids for the Jafurah fourth expansion phase project:

  • China Petroleum Engineering and Construction
  • Larsen & Toubro Energy Hydrocarbon (India)
  • Samsung E&A (South Korea)
  • Tecnicas Reunidas (Spain) / Sinopec Group (China)

  Aramco issued the main tender for the project in July 2024. Contractors invited to bid were initially set a deadline of 15 October that year to submit technical bids and their In-Kingdom Total Value Add (IKTVA) credentials. Commercial bids were due to be submitted by 31 October, with the deadline extended to 31 December, then to 15 January, 2025.

  Along with overseeing the start of EPC works on the Jafurah fourth expansion phase project, Aramco is also advancing with the main EPC tendering exercise for the fifth expansion phase of the mammoth Jafurah unconventional gas development programme.

  Aramco completed the solicitation of interest process with contractors for the main EPC tendering round for the Jafurah fifth expansion phase project in November, MEED previously reported.

  Dubai-headquartered Wood Group has carried out the front-end engineering and design (feed) on the fifth expansion phase.

  Jafurah gas development phases

  The Jafurah basin is the largest liquid-rich shale gas play in the Middle East, spanning around 17,000 square kilometres. The reserve is estimated to contain 229 trillion cubic feet of gas and 75 billion stock-tank barrels of condensate.

  Aramco, in early December, brought the greenfield Jafurah gas processing plant online, with a production capacity of 450 million cf/d, marking the commissioning of the first phase of its $100bn capital expenditure programme to produce gas from the unconventional resource base.

  The Saudi oil behemoth had earlier stated it expected to start gas production at Jafurah in 2025, with the intention of progressively ramping up to 2 billion cf/d of sales gas, 420 million cf/d of ethane and 630,000 barrels a day (b/d) of high-value liquids by 2030.

  Aramco has said that, at peak production, its unconventional gas programme is expected to generate electricity equivalent to displacing 500,000 b/d of oil.

  Progress on the fourth and fifth expansion phases of the Jafurah unconventional gas development programme continues, as EPC work on the third phase advances.

  In July 2024, Aramco issued a non-binding letter of intent to a consortium of Tecnicas Reunidas and Sinopec Group for the EPC contract for the Jafurah third expansion phase. The value of the contract is estimated to be $2.24bn.

  The objective of the third expansion phase of Jafurah is similar to that of the fourth phase of development. The main scope of work involves the EPC of three gas compression plants, each with a capacity of 200 million cf/d.

  The third phase’s scope of work also includes building a 230kV substation to power the new gas compression plants and installing other utilities units, piping systems and safety equipment.

  The selection of contractors for the third expansion phase of the Jafurah development came within weeks of Aramco officially awarding EPC contracts for the second expansion phase, which aims to raise its processing potential to up to 2 billion cf/d of raw gas produced from the Jafurah field.

  Aramco awarded 16 contracts, worth a combined total of about $12.4bn, for the second expansion phase on 30 June 2024.

  The EPC scope of work on the project involves the construction of gas compression facilities and associated pipelines and the expansion of the Jafurah gas plant, including the construction of gas processing trains, utilities, sulphur and export facilities, Aramco said in a statement.

  The main EPC packages of the Jafurah second expansion phase project, their estimated values and the selected contractors are:

  • Package 1 – gas processing plant and main process units – $2.9bn: Larsen & Toubro Energy Hydrocarbon (India)
  • Package 2 – utilities and offsites – $2.4bn: Hyundai Engineering (South Korea)
  • Package 3 – gas compression units – $1bn: Larsen & Toubro Energy Hydrocarbon
  • Riyas natural gas liquids (NGL) package 1 – NGL fractionation trains – $1bn: Tecnicas Reunidas / Refining & Chemical Engineering Group (part of China’s Sinopec Group)
  • Riyas NGL package 2 – utilities, storage and export facilities – $2.2bn: Tecnicas Reunidas/Refining & Chemical Engineering Group
  • Riyas NGL package 6 – site preparation works – $107m: Mofarreh Alharbi & Partners (Saudi Arabia)
  • Riyas NGL package 9 – temporary construction facilities – $80m: Mofarreh Alharbi & Partners

  Aramco kickstarted EPC works on the first phase of the programme in November 2021 by awarding $10bn-worth of subsurface and EPC contracts.

  In February 2020, Aramco received a capital expenditure grant of $110bn from the Saudi government for the long-term phased development of the Jafurah unconventional gas resource base.

  The Jafurah unconventional gas development programme is central to Aramco’s goal of increasing gas production capacity. The target has recently been raised to 80%, with 2021 as the baseline, up from 60%, to meet rising domestic and global demand. The company expects life-cycle investment in Jafurah to exceed $100bn.

  Prior to the commissioning of the Jafurah gas plant in the last quarter of this year, Aramco completed an $11bn lease-and-leaseback deal in late October for gas processing facilities at the Jafurah unconventional gas reserve with a consortium led by funds managed by Global Infrastructure Partners (GIP), part of US asset manager BlackRock.

  Under the transaction, which Aramco started in August, a newly formed subsidiary – Jafurah Midstream Gas Company (JMGC) – will lease development and usage rights to the Jafurah field gas processing plant and the Riyas natural gas liquids (NGL) fractionation facility.

  After 20 years, JMGC will lease the assets back to Aramco. JMGC will collect a tariff payable by Aramco in exchange for granting Aramco the exclusive right to receive, process and treat raw gas from the Jafurah resource base.

  Aramco will hold a 51% majority stake in JMGC, while the GIP-led consortium will hold the remaining 49%. Investors participating in the GIP-led consortium include Hassana Investment Company, The Arab Energy Fund (TAEF) and Aberdeen Investcorp Infrastructure Partners, as well as other institutional investors from North and Southeast Asia and the Middle East.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17187595/main4130.jpg

  Indrajit Sen
• 
  Uncertainty increases for Shell’s $3.9bn gas project in Iraq

  Administrator

  11 June 2026

  

   

  Uncertainty is increasing for phase two of the Basra Gas Company (BGC) expansion project in Iraq amid fallout from the ongoing regional conflict that started when the US and Israel bombed Iran on 28 February.

  BGC is a joint venture of the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), London-headquartered Shell (44%) and Japan’s Mitsubishi Corporation (5%).

  In September last year, the World Bank’s International Finance Corporation (IFC) signed a $500m investment deal with BGC for the phase two project.

  The entire phase two project is estimated to be worth $3.9bn, according to the IFC, which says the money will be spent between 2025 and 2030.

  Of the $500m deal that was signed in September, $300m will be provided directly by the IFC, and this was approved by the IFC’s board on 14 January this year, less than two months before the US and Israel attacked Iran.

  The subsequent conflict and the disruption to shipping through the Strait of Hormuz have created major obstacles for the project, according to industry sources.

  One source said: “Many Western workers that were specialists in the oil and gas sector have now left the country due to security concerns.

  “On top of this, it was originally assumed that required equipment for the project could be brought in through the Strait of Hormuz and that operational cash flows could be relied upon to help fund the project.”

  Due to the major disruption to shipping crude exports through the Strait of Hormuz, Iraq has had to dramatically reduce oil production in the Basra region, and, as a result, associated gas production has declined as well.

  One source said: “Right now, the state-owned oil companies in Iraq are in the midst of a financial crisis and it is unlikely that they will be able to contribute to this project in the way that was originally envisioned.”

  The main focus of the BGC phase two expansion project is a new liquefied petroleum gas (LPG) refrigeration train to increase the overall capacity of the upstream facility, where LPG and condensate are obtained through processing of the associated natural gas.

  The scope of the project also includes the construction of a new 22-kilometre-long, 132kV overhead transmission line, which will help to meet the energy demand associated with the project.

  ---

  READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

  GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

  Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:

  > AGENDA: Gulf races to reroute trade > EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity > CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends > MARKET FOCUS: Iraq’s reform window narrows  > MEED TOP 100: Middle East stocks recover unevenly > OIL & GAS: Insurers will only cover a fraction of war damage to oil and gas facilities > LEADERSHIP: Building the infrastructure that makes net zero possible > LEGAL:  Saudi Arabia’s foreign property ownership milestone > TRADE DEAL: UK-GCC trade deal talks conclude

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17178691/main.png

  Wil Crisp
• 
  PIF to work with Egypt’s TMG on Saudi real estate schemes

  Administrator

  11 June 2026

  Saudi Arabia’s Public Investment Fund (PIF) and Egyptian real estate conglomerate Talaat Moustafa Group (TMG) have signed a memorandum of understanding (MoU) to explore collaboration on mixed-use real estate projects across PIF-owned developments in Saudi Arabia.

  The non-binding agreement covers potential cooperation across the residential, commercial, hospitality and retail sectors, as well as integrated urban environments. PIF said the partnership would accelerate project delivery and value creation across its portfolio.

  TMG, which has nearly 55 years of experience developing large-scale integrated cities, communities and hospitality projects across Egypt, brings technical and managerial capacity to the collaboration. The company previously signed an agreement with Saudi Arabia’s National Housing Company (NHC) in early 2024 to develop more than 27,000 residential units at the Banan City project in Riyadh’s Al-Fursan suburb.

  The MoU also establishes a framework to attract additional investors to future project phases and is intended to expand private sector participation as investors, partners and suppliers.

  PIF said the agreement forms part of its broader strategy to diversify Saudi Arabia’s economy and develop its urban development and livability ecosystem – one of six strategic ecosystems under its 2026-30 strategy. That ecosystem spans housing, retail, office and community spaces and essential services.

  The MoU is subject to the satisfaction of certain conditions precedent and receipt of all necessary regulatory and internal approvals.

  ---

  > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17181887/main.png

  Colin Foreman
• 
  Oman signs $7.5bn of Duqm project deals

  Administrator

  10 June 2026

  Oman’s Public Authority for Special Economic Zones and Free Zones (Opaz) has signed 10 investment agreements and memorandums of cooperation worth RO2.9bn ($7.5bn) for projects in the Special Economic Zone at Duqm (SEZAD).

  The agreements were signed on 8 June during an investment ceremony in Duqm, chaired by Opaz chairman Qais Bin Mohammed Al-Yousef.

  The package includes a RO350m ($910m) agreement with Al-Sahil Power to develop the 890MW Duqm independent power project (IPP).

  MEED reported in January that a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services had signed a PPA for the Duqm IPP project.

  The agreement appears to relate to the same project, suggesting that Al-Sahil Power has been established as a project company to execute the project.

  The project will be developed under a long-term power-purchase arrangement with Nama Power & Water Procurement Company (NamaPWP).

  A consortium of China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility was recently appointed as the main contractor on the combined-cycle gas turbine plant.

  Commercial operations are scheduled to begin in 2029.

  Green hydrogen project

  The largest agreement signed includes a RO1.6bn ($4.2bn) agreement for the implementation of the second and third phases of Indian renewable energy company ​ACME Group’s green hydrogen project in Duqm.

  Hydrom, Opaz and ACME previously signed project development and land usufruct agreements for the two phases in May 2025

  The development will establish a green hydrogen and green ammonia production complex covering 10 square kilometres.

  Each phase is expected to produce about 71,000 tonnes a year of green hydrogen and 400,000 tonnes a year of green ammonia.

  Total production capacity will reach 142,000 tonnes of green hydrogen and 800,000 tonnes of green ammonia a year once both phases are completed.

  The agreements also include a memorandum of cooperation with OQ Group for the development of a natural gas liquids (NGL) separation and processing plant in Duqm’s petrochemicals zone.

  The proposed facility has an estimated investment value of RO288m ($750m). It will process natural gas liquids into propane, butane and heavier hydrocarbons for export and downstream industrial use.

  Elsewhere, a Chinese investor signed an agreement to develop a silicon-based battery anode materials plant with an investment value of RO192.2m ($500m). The facility will produce materials used in lithium-ion batteries for electric vehicles.

  Other agreements

  Other agreements cover industrial, residential, tourism and manufacturing projects.

  These include a RO30m residential development for Jindal Steel employees, a chemicals manufacturing plant by Duqm Chemical Industries, a steel fabrication facility by DSD Ferrometalco and a precast housing factory to be developed by Al-Qiyada Construction Technology.

  Further memorandums were signed for a RO192.2m industrial complex promoted by Truot Holding and a RO184.5m tourism and commercial development by Ruby Investment & Development.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17172424/main.jpg

  Mark Dowdall
• 
  Egypt signs $420m Gabal El-Zeit wind agreements

  Administrator

  10 June 2026

  Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.

  Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.

  The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.

  Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.

  The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.

  The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.

  The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.

  According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.

  The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor. 

  ---

  > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg

  Mark Dowdall
• 
  Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC

  Administrator

  10 June 2026

  Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).

  The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.

  The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.

  In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.

  In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.

  ---

  > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg

  Colin Foreman
• 
  Saudi Arabia and Turkiye sign railway agreements

  Administrator

  10 June 2026

  Register for MEED’s 14-day trial access 

  Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.

  Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.

  Agreement scope

  The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.

  More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.

  The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.

  Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.

  Turkish projects

  Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.

  The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.

  ---

  READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

  GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

  Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:

  > AGENDA: Gulf races to reroute trade > EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity > CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends > MARKET FOCUS: Iraq’s reform window narrows  > MEED TOP 100: Middle East stocks recover unevenly > OIL & GAS: Insurers will only cover a fraction of war damage to oil and gas facilities > LEADERSHIP: Building the infrastructure that makes net zero possible > LEGAL:  Saudi Arabia’s foreign property ownership milestone > TRADE DEAL: UK-GCC trade deal talks conclude

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17169958/main.gif

  Colin Foreman
• 
  Joint venture tenders Algeria field development contract

  Administrator

  10 June 2026

  

   

  Register for MEED’s 14-day trial access 

  Hassi Bir Rekaiz Group (GHBR), which operates Algeria’s Hassi Bir Rekaiz field, has issued a tender for phase 2A of the asset’s field development project.

  GHBR is a joint venture of Algeria’s national oil and gas company Sonatrach and Thailand’s national exploration and production company PTTEP.

  The scope of the contract focuses on the “provision of engineering and supervision services”, according to documents published by Sonatrach.

  The tender has been issued with a bid deadline of 16 June 2026.

  In May, GHBR signed a $1.1bn contract for phase two of the Hassi Bir Rekaiz development project.

  The contract was won by a consortium of Egypt’s Petrojet and Italian engineering and contracting company Arkad.

  Petrojet’s portion of the project was estimated to be worth around $600m, and Arkad’s portion was estimated to be worth $500m.

  The contract used the engineering, procurement, construction and commissioning model.

  The scope of the project contract is focused on the construction of a central processing facility (CPF) capable of processing crude oil and associated gas.

  It also includes developing off-plot pipelines, as well as related utilities and infrastructure.

  The CPF will have the capacity to process 32,000 barrels a day (b/d) and will be designed to support future expansions.

  The related infrastructure will include an extensive pipeline network spanning approximately 217 kilometres, as well as a road network.

  ---

  READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

  GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

  Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:

  > AGENDA: Gulf races to reroute trade > EXPORT ROUTES: Regional war boosts oil and gas pipeline project activity > CURRENT AFFAIRS: UAE’s Opec departure fulfils multiple ends > MARKET FOCUS: Iraq’s reform window narrows  > MEED TOP 100: Middle East stocks recover unevenly > OIL & GAS: Insurers will only cover a fraction of war damage to oil and gas facilities > LEADERSHIP: Building the infrastructure that makes net zero possible > LEGAL:  Saudi Arabia’s foreign property ownership milestone > TRADE DEAL: UK-GCC trade deal talks conclude

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17163750/main3325.jpg

  Wil Crisp