Latest News

• 
  Oman invites bids for Musandam renewables study

  Administrator

  25 August 2026

  Oman’s Nama Power & Water Procurement Company (PWP) has issued a request for proposals (RFP) for techno-economic consultancy services to assess the feasibility of renewable energy options in Musandam Governorate.

  The study will examine solar photovoltaic (PV), wind and hybrid renewable energy configurations. It will also assess battery energy storage systems (bess) and other renewable energy and energy storage technologies.

  The consultant will be required to determine which technologies are technically and economically justified for the governorate.

  The bid submission deadline is 24 September.

  The Musandam power system is served primarily by the 123MW Musandam independent power plant (IPP), which began operating in 2017. The governorate has historically relied on small diesel-fired units, but has been seeking to move away from diesel-fired power generation for several years.

  Nama PWP has previously said it was exploring renewable energy options in Musandam to meet future additional capacity requirements.

  Its latest seven-year statement, released in March, forecasts peak electricity demand in Musandam to rise from 91MW in 2024 to 130MW in 2031, an average annual increase of 5%. Average demand is forecast to rise from 52MW to 73MW over the same period.

  The plan says demand growth is being driven by distribution-level load and projects aimed at boosting tourism, economic and commercial activity. 

  Separately, the utility recently invited bids for financial and commercial consultancy services covering three 1GW solar IPPs targeted for commercial operation by the second quarter of 2030.

  The bid submissions deadline is 10 September.

  The three projects covered by the financial and commercial consultancy tender are understood to also be part of the 4GW programme, for which a technical advisory tender was issued on 15 July.

  Bidding for this tender closes on 26 August.

  ---

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

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

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

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

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

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  Mark Dowdall
• 
  US launches sanctions campaign against Iran

  Administrator

  25 August 2026

  The US has launched a sweeping sanctions campaign against Iran and the entities that trade with it, imposing measures on almost 60 individuals, companies and vessels while expanding the reach of secondary sanctions across five sectors of the Iranian economy.

  The campaign, named Operation Economic Outcast, was announced on 24 August by US treasury secretary Scott Bessent, who described it as an economic D-Day for Iran. He said Washington’s objective was to sever every economic lifeline sustaining the Iranian regime.

  The treasury’s Office of Foreign Assets Control (Ofac) issued five sectoral sanctions determinations under Executive Order 13902, covering digital assets, technology, gold, aviation and shipping. The determinations allow Ofac to sanction any person operating in those sectors, regardless of location. Washington said Iran uses cryptocurrency for sanctions evasion, seeks advanced technology for its weapons programmes, uses gold to stabilise the rial, and relies on commercial aviation and shipping networks to move fighters, weapons and oil revenue.

  The measures build on earlier determinations targeting Iran’s financial, petroleum and petrochemical sectors.

  Ofac also sanctioned close to 60 entities, individuals and vessels across multiple jurisdictions, including UAE-based entities, over alleged involvement in nuclear and missile procurement, cyber operations and oil revenue networks. The designations named a network of brokers, companies and shadow fleet vessels operating across the UAE, Hong Kong, China, Singapore, Switzerland and other regions to transport Iranian oil and channel revenue to the Islamic Revolutionary Guard Corps.

  Among those designated were shipping brokers and bunkering firms based in the UAE that Washington said facilitated Iranian oil shipments and provided services to sanctioned vessels. The treasury also identified several shadow fleet tankers as blocked property, saying they had moved millions of barrels of Iranian crude and petroleum products, mainly to China.

  Separately, the treasury targeted a procurement network spanning the Middle East and East Asia that it said supported Iran’s acquisition of proliferation-sensitive equipment, along with a cyber group directed by Iran’s Ministry of Intelligence & Security.

  Bessent said Washington was pressing governments to shut down Iran-related activity within defined timelines, warning that entities facilitating money laundering or sanctions evasion for Iran risked being cut off from the US financial system. He declined to name specific countries.

  The campaign follows the UAE’s own move against Tehran. On 19 August, the UAE suspended all trade, commercial exchanges and financial transactions with Iran with immediate effect, citing regional escalation. The UAE has historically been one of Iran’s most significant trading partners, with much of the relationship built on re-export trade routed through Dubai.

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  Colin Foreman
• 
  Kuwait tenders $3.3bn gas processing facility

  Administrator

  25 August 2026

  

   

  State-owned Kuwait Gulf Oil Company (KGOC) has issued the tender for the development of an onshore gas plant next to the Al-Zour refinery, according to industry sources.

  The project budget is estimated at $3.3bn, and the bid deadline is 29 December, with a meeting for contractors scheduled for 14 September.

  The tender was issued on 23 August.

  The proposed plant will have the capacity to process up to 632 million cubic feet a day of gas and 60,000 b/d a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

  In February, MEED reported that at least seven companies had shown interest in participating in the tender.

  Contractors that sent representatives to previous meetings to discuss the project include:

  • Samsung E&A (South Korea)
  • Larsen & Toubro (India)
  • Tecnicas Reunidas (Spain)
  • Saipem (Italy)
  • Hyundai Engineering & Construction (South Korea)
  • Hyundai Engineering Company (South Korea)
  • JGC (Japan)

  The tender process is using a fast-track model, which means that Kuwait’s Central Agency for Public Tenders (Capt) will not be involved in the tender process.

  Capt typically reviews the technical and commercial evaluations of bids and verifies that the bidding process is competitive.

  It is understood that not requiring Capt to approve this tender is expected to speed up the tender process.

  Iran disputes ownership of the field, referring to it as Arash.

  Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

  The Dorra field’s close proximity to Iran could make development difficult due to current security concerns.

  The offshore elements of the wider Dorra field development project are expected to be especially difficult to protect from attacks from Iran.

  Earlier this month, MEED revealed that Al-Khafji Joint Operations (KJO) had selected contractors for two major offshore packages under the Dorra field facilities development project.

  KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company and Kuwait Petroleum Corporation subsidiary KGOC, has divided the engineering, procurement and construction (EPC) scope for the Dorra gas production project into four packages: three offshore and one onshore.

  US-based McDermott International has secured offshore package 2A, valued at about $1.5bn, according to sources.

  A consortium of India’s Larsen & Toubro Energy Hydrocarbon (LTEH) and Italian contractor Saipem has secured package 2B, sources told MEED.

  Estimated at about $3.7bn, package 2B is the largest of the three offshore EPC packages under the Dorra field facilities project.

  MEED reported in March that the LTEH/Saipem consortium had emerged as the lowest bidder for offshore package 2B.

  Contractors submitted bids for offshore packages 2A and 2B by the 9 March deadline, MEED previously reported. Bid validity was understood to expire on 15 August, prompting KJO to issue letters of intent to the selected contractors earlier this month, sources said.

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  Wil Crisp
• 
  Iraq-GCC grid link delayed amid security concerns

  Administrator

  25 August 2026

  Iraq has postponed the planned commissioning of its 500MW electricity interconnection with Kuwait despite completing about 96% of the project.

  According to local media reports, Iraq Electricity Ministry spokesman Ahmed Turki said: “The announcement of the completion of the electricity interconnection project with Kuwait has been postponed due to the security situation and the current events in the region.”

  The project had been scheduled to be completed and commissioned in September, connecting Iraq to the six-member Gulf Cooperation Council (GCC) electricity network.

  The GCC-Iraq grid link involves a double-circuit 400-kilovolt (kV) transmission line from the Wafra station in Kuwait to the Al-Faw station in south Iraq, with a total transmission capacity of 1,800MW and a length of 295 kilometres.

  As MEED previously reported, construction on the project began in June 2023, with an initial completion period of 24 months.

  Earlier that year, the GCC Interconnection Authority (GCCIA) awarded contracts to the following contractors: KEC International (local), Kalpataru Power Transmission (India), Calik Enerji (Turkiye), Cegelec Saudi Arabia (local/France) and National Contracting Company (NCC).

  In January 2020, Iraq signed a memorandum of understanding to import 500MW of electricity from the GCCIA.

  The project was initially due to begin operating in April this year. However, in May, Iraq Electricity Ministry spokesman Ahmed Mousain said the interconnection line had reached an area in Kuwait where Kuwaiti forces were deployed because of the US-Iran war, with the security situation disrupting the project’s final stages. 

  Iraq currently produces about 28GW of electricity, according to the Electricity Ministry, but demand during peak summer periods is estimated at more than 50GW. The shortfall continues to cause widespread outages and put pressure on the national grid.

  In parallel, Iraq’s power sector is undergoing one of its largest expansion programmes in decades as the government attempts to address chronic electricity shortages, diversify fuel sources and strengthen regional grid connectivity. As of May, over $40bn-worth of projects were under execution, following $4.2bn in new contracts last year.

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  Mark Dowdall
• 
  L&T announces Jafurah fourth expansion phase contract award

  Administrator

  24 August 2026

  

   

  Indian contracting conglomerate Larsen & Toubro (L&T) has announced that its subsidiary, L&T Energy Hydrocarbon Onshore (LTEH Onshore), has won a contract to undertake a gas compression facilities project “for a prestigious client in the Middle East”.

  LTEH Onshore received the letter of award during India’s 2026 financial year, which starts on 1 April, Mumbai-headquartered L&T said in a statement, describing the order as ‘ultra-mega’ – a term the company uses for contracts valued at more than INR150bn ($1.57bn).

  The project involves the engineering, procurement and construction (EPC) of gas compression plants, comprising gas inlet facilities, gas compression systems, condensate and produced-water handling systems, propane refrigeration systems and all associated utilities, L&T said in its statement on 24 August.

  “The facilities will be developed for new onshore installations to process sour gas in compliance with applicable client standards, codes and project requirements,” the Bombay Stock Exchange-listed company said.

  To meet the power requirements of the gas compression plants, L&T’s Power Transmission & Distribution business will execute two 230kV extra-high-voltage substations, L&T added.

  MEED understands that the contract award relates to the fourth expansion phase of the Jafurah unconventional gas development in Saudi Arabia, for which Saudi Aramco selected LTEH for EPC works earlier this year.

  MEED previously reported that LTEH started work on the Jafurah fourth expansion phase during the second quarter of the year, with sources estimating the contract value at around $1.5bn.

  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).

  The detailed scope of work 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 metres 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. After the bids were submitted, Aramco initially asked contractors to extend their bid validity 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 reported.

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

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

  • China Petroleum Engineering & 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.

  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 brought the greenfield Jafurah gas processing plant online in early December, 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 company had earlier said 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.

  Along with overseeing EPC works on the Jafurah fourth expansion phase project, Aramco is also nearing a decision on awarding the main EPC contract for the fifth expansion phase of the mammoth Jafurah unconventional gas development programme.

  MEED recently reported that a frontrunner has emerged for the main EPC contract for the Jafurah fifth expansion phase, whose scope is similar to the programme’s fourth phase that has been awarded to LTEH.

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

  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.

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  Indrajit Sen
• 
  Saudi Arabia battery storage awards provide fresh lift

  Administrator

  24 August 2026

  Commentary
  Mark Dowdall
  Power & water editor

  The latest battery storage awards provide a welcome injection of investment into Saudi Arabia’s power market, which has seen a sharp slowdown in contract awards this year.

  Saudi Power Procurement Company’s four Group 1 storage service agreements, announced last week, are worth more than $1.16bn and cover 2,000MW of capacity.

  That is significant against the wider market. According to regional project tracker MEED Projects, Saudi Arabia recorded $19.7bn in power sector contract awards in the first seven months of 2025, compared with just $2.5bn in new awards in the same period this year.

  The battery energy storage system (bess) awards therefore account for a sizeable share of the activity recorded so far this year and provide a much-needed source of new contracting activity.

  Importantly, this is not a one-off. SPPC issued the request for proposal (RFP) for its second group of bess projects in July, covering six projects with a combined capacity of 3,000MW and 12,000MWh.

  With the Group 1 tender taking around 18 months from RFP to contract award, it is reasonable to expect Group 2 contracts to be signed in 2027.

  At the same time, the awards for six independent renewable plants under Round 7 of Saudi Arabia’s National Renewable Energy Programme (NREP), with a combined capacity of 5,300MW, are also likely to move into next year, with the latest bid deadlines now extending into September.

  Although a substantial pipeline remains in procurement, it is only once these projects move from tender to award and into construction that this pipeline translates into market activity.

  It is important that these tenders continue to progress at the pace established by the early rounds of Saudi Arabia’s renewable energy programme and now also SPPC’s independent storage provider bess scheme.

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  Mark Dowdall
• 
  Qatar receives bids for major power grid expansion

  Administrator

  24 August 2026

  

   

  Qatar General Electricity & Water Corporation (Kahramaa) has received bids for several packages under a major power transmission expansion project tendered in April.

  The project covers new substations at multiple voltage levels, as well as the supply and installation of 400kV extra-high-voltage power cables. The overall scheme is estimated to cost $650m.

  It is being tendered as part of Kahramaa’s 2026 procurement plan, which includes 198 tenders with a total estimated value of QR21.4bn ($5.9bn).

  According to sources, bids were submitted for the following packages on 20 August:

  • Substation packages S1 and S2, covering new 132/11kV substations (estimated cost: $200m)
  • Package S3, covering new 66/11kV substations ($50m)
  • Package S4, including a new 400/220/132kV substation, as well as upgrades and modifications to existing 400kV and 220kV substations ($200m)
  • Package S5, covering new 132/11kV substations and upgrades to existing 132kV and 66kV substations ($100m)
  • Cable packages C1 and C2, covering 400kV cables ($100m)

  Kahramaa previously stated that foreign companies not registered in Qatar would be allowed to participate in the bidding, subject to meeting specified conditions, including registration and certification requirements.

  In June, the electricity and water utility awarded contracts worth more than QR2.2bn ($604m) to expand the electricity transmission network in the country’s western region.

  The engineering, procurement and construction (EPC) works will support the integration of the 2GW Dukhan solar power project into Qatar’s national electricity grid. The scope includes new and upgraded substations, as well as the installation of underground cables and overhead transmission lines.

  Kahramaa said contracts were awarded to local firm Voltage Engineering, Turkiye’s Best & Betas Consortium, India’s Larsen & Toubro and South Korea’s LS Cable.

  Of Kahramaa’s 2026 procurement plan, electricity transmission projects account for QR8.9bn ($2.4bn) and include the construction of new 400/132kV substations in Al-Wukair and Al-Mashaf, as well as the expansion of 400kV substations at Ras Laffan.

  These also cover the installation of 132kV underground cables between Al-Sailiya and Al-Rayyan over a 24-kilometre route, as well as upgrades to the 400kV and 220kV networks.

  Additionally, there are 64 planned electricity distribution projects managed by the Electricity Distribution Department that cover the medium-voltage and low-voltage networks throughout Doha and the regional municipalities. 

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  Mark Dowdall
• 
  Maaden closes $1bn term loan and credit facility

  Administrator

  24 August 2026

  Saudi Arabian Mining Company (Maaden) has announced the closing of its inaugural international syndicated term loan and revolving credit facilities, worth a total of $1bn.

  The $500m international term loan facility will support Maaden’s growth agenda and general corporate purposes, including funding growth projects across its portfolio.

  The $500m international revolving credit facility, which is expected to remain undrawn, provides additional committed funding capacity “as Maaden continues to scale its business and execute its long-term growth strategy”.

  The transaction “was met with strong support from the international banking market, attracting participation from a diverse group of leading international banks across key global financial markets”, including the US, Canada, Europe, China and Japan. The facilities were oversubscribed, Maaden said.

  ALSO READ: Maaden and Aramco sign deal to create joint venture

  “The level of demand reflects the global banking community’s confidence in Maaden’s financial strength, strategic direction and ambitious growth plans,” the Saudi state miner said in its statement.

  “The facilities mark another significant milestone in Maaden’s funding journey – further diversifying its sources of funding and broadening its access to global capital providers as the company continues to advance its long-term growth ambitions.

  “Maaden continues to make significant progress across its growth pipeline, expanding production, advancing major projects and accelerating exploration as it builds a world-class mining company at the heart of Saudi Arabia’s economic transformation.”

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  Indrajit Sen