meed-logo

line1 line2 line3
SIGN IN / REGISTER

Region advances LNG projects with pace

30 August 2024

 

Global liquefied natural gas (LNG) liquefaction capacity is expected to more than double by 2028, potentially increasing from 473 million tonnes a year (t/y) in 2023 to 968 million t/y in 2028 through new build and expansion projects, according to a recent report by GlobalData.

North America dominates globally among the regions, in terms of new build and expansion liquefaction capacity growth, contributing around 54% of the total global capacity additions or 268 million t/y by 2028, GlobalData says in the report. 

The Middle East comes in at second position, followed by the Former Soviet Union, with capacity additions of 78 million t/y and 71 million t/y, respectively. 

Since the start of this decade, there has been a sharp increase in investments in the Middle East and North Africa (Mena), and particularly in the Gulf region, in projects to expand LNG production. Capital expenditure close to $45bn has been made by Mena hydrocarbon producers in the past 10 years on various LNG projects, mainly for output capacity building, MEED Projects data shows. Almost three-fourths of that spending took place in the past four years, and predominantly in the GCC.

A desire to cater to the steady growth expected in global LNG demand and dominate the global supply market is fuelling the wave of investments into large-scale production capacity expansions and terminal construction by Gulf players.

Qatar guns for top spot

Qatar has been jostling with the US and Australia for the status of being the largest LNG provider to the world for many years now. The three countries have all clinched the top spot, only to be unseated by another the very next month.

However, when its mammoth North Field LNG expansion programme begins to come online later this decade, Qatar will be able to consolidate its position as the world’s largest producer and exporter of LNG in the long term.

State enterprise QatarEnergy is understood to have spent almost $30bn on the two phases of the North Field LNG expansion programme, North Field East and North Field South, which will increase its LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028. Engineering, procurement and construction (EPC) works on the two projects are making steady progress.

QatarEnergy awarded the main EPC contracts in 2021 for the North Field East project, which is projected to increase LNG output to 110 million t/y by 2025. The main $13bn EPC package, which covers the engineering, procurement, construction and installation of four LNG trains with capacities of 8 million t/y, was awarded to a consortium of Japan’s Chiyoda Corporation and France’s Technip Energies in February 2021.

QatarEnergy awarded the $10bn main EPC contract for the North Field South LNG project, covering two large LNG processing trains, to a consortium of Technip Energies and Lebanon-based Consolidated Contractors Company (CCC) in May last year.

When fully commissioned, the first two phases of the North Field LNG expansion programme will contribute a total supply capacity of 48 million t/y to the global LNG market.

Qatar is, however, not stopping at that. QatarEnergy, in February, announced a third phase of its North Field LNG expansion programme. To be called North Field West, the project will further increase QatarEnergy’s LNG production capacity to 142 million t/y when it is commissioned by 2030.

The North Field West project will have an LNG production capacity of 16 million t/y, which is expected to be achieved through two 8 million t/y LNG processing trains, based on the two earlier phases of QatarEnergy’s LNG expansion programme. The new project derives its name from the western zone of Qatar’s North Field offshore gas reserve, from where it will draw feedstock for LNG production.

Oman moves up the ladder

Oman has been supplying LNG to customers, mainly in Asia, for many years now. Majority state-owned Oman LNG operates three gas liquefaction trains at its site in Qalhat, with a nameplate capacity of 10.4 million t/y. Due to debottlenecking, the company’s complex now has a production capacity of about 11.4 million t/y.

As recently as late July, the Omani government announced that Oman LNG will build a new train at its Qalhat LNG production complex in Sur, located in the sultanate’s South Al-Sharqiyah governorate. Oman LNG will perform the preliminary engineering study for the planned LNG train.

The LNG train will have an output capacity of 3.8 million t/y. When commissioned in 2029, it will increase Oman LNG’s total production capacity to 15.2 million t/y.

Aside from Oman LNG, France’s TotalEnergies has now committed itself to becoming a major LNG supplier in the sultanate. In partnership with state energy holding conglomerate OQ, TotalEnergies achieved final investment decision earlier this year for a major LNG bunkering and export terminal in Oman’s northern city of Sohar.

TotalEnergies leads a joint venture named Marsa LNG, which is the Sohar LNG terminal project developer. Marsa LNG was formed in December 2021 through an agreement between TotalEnergies and the sultanate’s state energy holding company OQ. The partners own 80% and 20% stakes, respectively.

Marsa LNG intends to develop an integrated facility consisting of upstream units that will draw natural gas feedstock from TotalEnergies’ hydrocarbon concessions in the sultanate, particularly from Blocks 10 and 11; an LNG bunkering terminal and storage units located in Sohar port; and a solar photovoltaic plant to power the LNG terminal.

The Marsa LNG terminal will have a single train with the capacity to process about 1 million t/y of natural gas into LNG. The bunkering terminal will mainly supply LNG as a marine fuel to vessels. Marsa LNG has picked France-based Technip Energies to perform EPC works on the estimated $1bn LNG terminal project.

Adnoc gives shape to ambitions

Abu Dhabi National Oil Company (Adnoc) has been a relatively smaller LNG producer in comparison to its GCC peers. Adnoc Group subsidiary, Adnoc Gas, operates three large gas processing trains on Das Island. At its Das Island terminal, Adnoc Gas has an LNG liquefaction and export capacity of about 6 million t/y. The first and second trains were commissioned in the 1970s and have a combined output capacity of 2.9 million t/y. The third train came into operation in the mid-1990s, with a capacity of 3.2 million t/y.

Adnoc Gas’ LNG production and export capability, however, will receive a major fillip when a new greenfield terminal it has committed to developing in Ruwais, Abu Dhabi, comes online before the end of this decade. The planned LNG export terminal in Ruwais will have the capacity to produce about 9.6 million t/y of LNG from two processing trains, each with a capacity of 4.8 million t/y.

Adnoc awarded the full EPC contract and achieved the final investment decision for the LNG terminal complex in June. A consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy was awarded the EPC contract, worth $5.5bn.

Jordan takes a step forward

Jordan imports more than 90% of its oil, gas and refined product needs and therefore has a strong economic case for developing projects to boost its domestic hydrocarbon infrastructure, particularly for gas.

The country recently took a key step forward when Aqaba Development Corporation awarded the main EPC contract in August for a project to develop the Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah LNG onshore regasification facility at the port of Aqaba.

The contract was won by a consortium of Singapore-based AG&P and South Korea’s Gas Entec, along with their local partner, Jordan’s Issa Haddadin.

In a statement, Gas Entec said that the facility will have the capacity to process 720 million cubic feet a day of natural gas. 

“Jordan relies heavily on natural gas for its power and industrial needs, but faces challenges with supply reliability,” Gas Entec said.

“The new LNG terminal will provide Jordan with the flexibility to access LNG from various global suppliers, ensuring a stable and secure energy source.”

Global LNG demand set for steady growth

https://image.digitalinsightresearch.in/uploads/NewsArticle/12432924/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • WEBINAR: GCC water projects market outlook and review

    15 September 2025

    Register now

    Date & Time: Wednesday 24 September 2025 | 11:00 AM GST

    Agenda:

    1. Latest updates on the GCC water sector projects market

    2. Summary of the key water sector contracts and projects awarded year to date

    3. Analysis of the key trends, opportunities and challenges facing the sector

    4. Highlights of key contracts to be tendered and awarded over the next 18 months

    5. Long-term capital expenditure outlays and forecasts

    6. Top contractors and clients

    7. Breakdown of spending by segment, i.e. desalination, storage, transmission and treatment

    8. The evolution of the PPP model framework in the delivery of water projects

    9. Key drivers and challenges going forward

    Hosted by: Edward James, head of content and analysis at MEED

    A well-known and respected thought leader in Mena affairs, Edward James has been with MEED for more than 19 years, working as a researcher, consultant and content director. Today he heads up all content and research produced by the MEED group. His specific areas of expertise are construction, hydrocarbons, power and water, and the petrochemicals market. He is considered one of the world’s foremost experts on the Mena projects market. He is a regular guest commentator on Middle East issues for news channels such as the BBC, CNN and ABC News and is a regular speaker at events in the region. 

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14667833/main.gif
    MEED Editorial
  • Alec set to launch IPO on Dubai Financial Market

    15 September 2025

    UAE-based Alec Holdings has announced that it will list 20% of its share capital on the Dubai Financial Market through an initial public offering (IPO).

    According to an official statement, the firm will offer 1 billion shares, representing 20% of its share capital. The subscription will be offered in three tranches and will open on 23 September and close on 30 September.

    The first tranche comprises individual subscribers, the second includes professional investors, and the third tranche is reserved for eligible employees of Alec and the Investment Corporation of Dubai (ICD).

    ICD, the investment arm of the Government of Dubai, is currently the sole shareholder of Alec. It will retain 80% of Alec’s issued share capital following the offering.

    Emirates NBD Capital and JP Morgan Securities have been appointed as joint global coordinators. Both firms, along with Abu Dhabi Commercial Bank and EFG Hermes, have been appointed as joint bookrunners.

    Moelis & Company is the independent financial adviser.

    Emirates NBD has been appointed as the lead receiving bank.

    Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al-Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank and Wio Bank have also been appointed as receiving banks.

    “Alec intends to distribute a cash dividend of AED200m, payable in April 2026, and a cash dividend of AED500m for the financial year ending 31 December 2026, payable in October 2026 and April 2027,” the statement added.

    “The company further intends to distribute cash dividends in April and October of each year, with a minimum payout ratio of 50% of the net profit generated for the relevant financial period, subject to the approval of the board of directors and the availability of distributable reserves,” Alec said.

    Alec Holdings’ core businesses include Alec Construction and Target Engineering.

    Other businesses include Alec Fitout, Alemco, Alec Data Centre Solutions, Alec Technologies, Alec Lite, Alec Facades, Linq Modular, Alec Energy and AJI Rentals.

    READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage

    Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14667572/main.jpg
    Yasir Iqbal
  • Kuwait sets October deadline for residential PPP bids

    15 September 2025

     

    Kuwait’s Public Authority for Housing Welfare (PAHW) has invited local and international firms to submit their statements of qualifications (SoQs) by 30 October for a tender covering the development of three residential cities under a public-private partnership (PPP) framework.

    The projects will be developed on a design, finance, build, operate, maintain, sell and transfer basis. The contract term is 30 years, with four years allocated for construction.

    The projects include:

    • Al-Mutlaa City (2.12 million square metres)
    • East Saad Al-Abdullah City (1.02 million sq m)
    • West Saad Al-Abdullah and the commercial services strip in Jaber Al-Ahmad City (1.01 million sq m)

    Interested companies can collect the request for qualification (RFQ) documents between 18 September and 1 October.

    To qualify, firms must have at least 10 years of experience in delivering large-scale residential or mixed-use developments.

    These projects will be the first to be implemented under Kuwait’s new real estate development law, introduced in 2023. The law opens Kuwait's housing sector to private investment and enables the establishment of joint ventures between local and foreign investors to deliver new developments on a PPP basis.

    Kuwait construction market overview

    Kuwait’s construction and infrastructure projects market continued its recovery in the first half of 2025, with over $1.8bn-worth of contracts awarded by 8 August.

    The outlook for the remainder of the year appears promising, following the government’s approval of capital spending worth KD1.7bn ($5.7bn) in May for more than 90 projects.

    According to local media, these projects include rail, road, water and electricity infrastructure, as well as the Grand Mubarak Port.

    The country invested over $45bn in construction and transport projects during 2015 and 2016, amid high oil prices. However, parliamentary gridlock and declining oil revenues since then led to a slowdown in contract awards.

    The sector has seen particularly low award levels since 2019, when the total fell below $2bn for the first time. Awards increased modestly in 2020 and 2021, but then dropped again to a low of $1.4bn in 2022.

    In contrast, 2023 marked a significant recovery, with awards reaching $3.6bn.

    According to data from regional tracker MEED Projects, 2024 was the best year in recent times, with contract awards totalling approximately $5.6bn for construction and infrastructure schemes.

    READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage

    Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14667516/main.jpg
    Yasir Iqbal
  • Lowest bidders emerge for Oman Sinaw-Duqm road

    15 September 2025

     

    Oman’s Ministry of Transport, Communications and Information Technology has opened bids for two contracts covering the upgrade of sections three and four of the Sinaw-Mahout-Duqm road.

    According to results published by the Oman Tender Board, local firm Galfar Engineering & Contracting submitted the lowest bid of RO51m ($215.6m) for section three of the project.

    The other bidders are:

    • Strabag ($206m)
    • Sarooj Construction ($244.3m)
    • Rimal Global Group ($285.6m)
    • Oman Gulf Company (undisclosed)

    The third section spans 83 kilometres (km) and extends from the Al-Jouba roundabout in the Wilayat of Mahout towards Duqm. It consists of a single carriageway with two lanes, each lane measuring 3.75 metres in width. 

    For the fourth section, the Austrian firm Strabag submitted the lowest bid of RO79m ($206m).

    The other bidders for this section include:

    • Galfar Engineering & Contracting ($215.6m)
    • Sarooj Construction ($244.3m)
    • Rimal Global Group ($285.6m)
    • Oman Gulf Company (undisclosed)

    This section of the project spans about 49km, stretching from Sarab to the boundaries of the Special Economic Zone at Duqm near Nafun.

    This project will serve as a key piece of infrastructure linking North Al-Sharqiyah to the Special Economic Zone at Duqm.

    UK analytics firm GlobalData expects the Omani construction industry to register an annual average growth rate of 4.2% from 2025 to 2028, supported by investments as part of the Oman Vision 2040 strategy. Under this strategy, the government plans to allocate RO20bn ($52bn) to the tourism sector and aims to attract 11 million visitors annually by 2040. 

    The infrastructure construction sector was estimated to grow by 6.1% in 2024 and is projected to record an annual average growth rate of 5.4% from 2025 to 2028. Growth will be driven by Muscat’s efforts to upgrade the road, railway and airport infrastructure to improve connectivity across the sultanate.

    READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage

    Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14667488/main.gif
    Yasir Iqbal
  • Aramco turns attention to strategic projects

    12 September 2025

     

    In the second quarter of 2025, Saudi Aramco’s capital expenditure (capex) stood at $12.3bn, marking a marginal year-on-year increase of 1.46%. For the first half of the year, the company recorded capex of $24.85bn, up 9.5% compared to the same period last year.

    The company had earlier issued capital investment guidance of $52bn to $58bn for 2025, excluding approximately $4bn in project financing.

    Concerns grew in Saudi Arabia’s offshore oil and gas projects market earlier this year as engineering, procurement, construction and installation (EPCI) contract awards stalled.

    Aramco spent a record $5bn on offshore EPCI contracts in 2024 and was expected to surpass that in 2025. However, it awarded no Contract Release Purchase Orders (CRPOs) in the first half of the year, fuelling apprehension among contractors and suppliers.

    In July, Aramco dispelled speculation by awarding five tenders worth over $3bn. The CRPOs are numbers 150, 157, 158, 159 and 160, and involve EPCI work and infrastructure upgrades at the Abu Safah, Berri, Manifa, Marjan and Zuluf offshore oil fields.

    Aramco also awarded four additional CRPOs as part of a large-scale infrastructure expansion at the Zuluf offshore field. These are CRPOs 145, 146, 147 and 148, with a combined estimated value of nearly $6bn.

    With these contract awards, Aramco has nearly doubled its offshore capex this year compared to 2024, marking another year of robust upstream investment.

    Looking ahead, Aramco is evaluating bids received for seven key tenders in July and August.

    These tenders include CRPOs 154, 155 and 156, representing the next phase of infrastructure expansion at the Safaniya offshore oil field; CRPO 161, which covers the EPCI of four gas jackets at the Arabiyah, Hasbah and Karan fields; and CRPOs 162, 163 and 164, relating to the EPCI of key infrastructure at the Abu Safah, Berri, Karan, Marjan and Safaniya fields.

    Onshore projects advance

    In parallel with the Safaniya offshore expansion, Aramco is tendering a separate project to build onshore surface and processing facilities to handle additional volumes of oil and associated gas generated by the expanded offshore infrastructure.

    The scope of the Safaniya onshore facilities project has been divided into two main EPC packages: the first covering water treatment and injection units, and the second focused on produced water utilities. Contractors have been given deadlines of 24 October and 7 November to submit technical and commercial bids.

    Aramco is also understood to be close to awarding the main EPC contracts for the expansion of the Haradh gas-oil separation plant 3 (Gosp 3) in Saudi Arabia. Located within the Haradh hydrocarbons development in the Eastern Province, the project will increase output of the Arab Light crude grade from 300,000 barrels a day (b/d) to 420,000 b/d. It will also raise sour gas production to 32 million cubic feet a day (cf/d).

    Ramping up gas production

    In line with its goal of increasing gas production, Aramco is progressing its Jafurah unconventional gas programme. Situated in Saudi Arabia’s Eastern Province, the Jafurah Basin contains the largest liquid-rich shale gas play in the Middle East, with an estimated 200 trillion cubic feet of gas in place. The shale play spans approximately 17,000 square kilometres.

    The Jafurah programme is a cornerstone of Aramco’s long-term gas strategy, with total lifecycle investment expected to exceed $100bn. In February 2020, Aramco received a capex allocation of $110bn from the Saudi government to support the long-term phased development of the unconventional gas resource base.

    Aramco is estimated to have spent $25bn across the first three phases of Jafurah’s development. In November 2021, the company awarded $10bn in subsurface and EPC contracts for phase one of the programme.

    On 30 June 2024, Aramco awarded 16 contracts worth approximately $12.4bn for phase two. The scope includes the construction of gas compression facilities, associated pipelines and the expansion of the Jafurah gas plant – covering gas processing trains, utilities, sulphur handling and export infrastructure.

    In July 2024, a consortium of Spain’s Tecnicas Reunidas and China’s Sinopec was awarded a $2.24bn EPC contract by Aramco for phase three of the expansion.

    Phase four of the Jafurah expansion is estimated at $2.5bn. The scope includes EPC works for three gas compression plants, each with a capacity of 200 million cf/d. Bids were submitted in mid-January, remain valid through September, and are under evaluation, with a contract award expected in Q4 2025.

    Aramco is also tendering a major project to boost gas compression capacity at the Shedgum and Uthmaniya plants in the Eastern Province.

    The facilities currently receive approximately 870 million cf/d and 1.2 billion cf/d of Khuff raw gas, respectively. The project aims to increase compression and processing capacity and to construct new pipelines to enhance gas transport.

    Contractors are preparing bids for several EPC packages under the Shedgum and Uthmaniya gas compression project.

    MEED’s October 2025 special report on Saudi Arabia also includes:

    > ECONOMY: Riyadh looks to adjust investment approach
    > BANKING: New funding sources solve Saudi liquidity challenge
    > GAS: Saudi Arabia and Kuwait accelerate Dorra gas field development
    > POWER: Saudi Arabia accelerates power transformation
    > CONSTRUCTION: Saudi construction pivots from gigaprojects to events
    > TRANSPORT: Infrastructure takes centre stage in Saudi strategy

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14656451/main.png
    Indrajit Sen