Related Articles

• 
  Oman makes strides forward in global LNG race Indrajit Sen

  22 September 2025

  Commentary
  Indrajit Sen
  Oil & gas editor

  Oman has recently made notable strides in the global race to lead the production and export of liquefied natural gas (LNG) — a critical enabler of the energy transition.

  The Omani government made headlines in July last year, when it announced that majority state-owned Oman LNG would build a new train at its Qalhat LNG production complex in Sur. The new LNG train will have an output capacity of 3.8 million tonnes a year (t/y), increasing Oman LNG’s total production capacity to 15.2 million t/y when it is commissioned in 2029.

  Oman LNG recently made key progress on its project to add a fourth processing train at the Sur LNG complex, shortlisting contractors to participate in the main tender for engineering, procurement and construction (EPC) works.

  The start of the EPC tendering process and selection of bidders comes within ten months of Oman LNG awarding the contract for front-end engineering and design (feed) works on the project to US-based consultancy KBR.

  Separately, MEED recently reported that France’s TotalEnergies is studying a potential expansion of its Marsa LNG bunkering and export terminal in Oman. The move is significant considering that the first phase of the project is currently under construction in the sultanate’s northern industrial city of Sohar, and will have an output capacity of 1 million t/y.

  TotalEnergies purportedly began an initial study on a potential second phase of the Marsa LNG facility earlier this year. The French energy major might consider doubling the output capacity of the LNG complex, although the plan is yet to be laid out, according to sources.

  Earlier this year, TotalEnergies appointed French contractor Technip Energies as a consultant to perform concept and feasibility studies on the proposed expansion phase of the Marsa LNG terminal, sources told MEED.

  With Oman LNG going full throttle with its fourth LNG train project, and TotalEnergies mulling a potential doubling of LNG production in Oman, the sultanate is on course to establish itself as a prominent player in the global LNG domain by the end of this decade.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14716054/main.jpg

  Indrajit Sen
• 
  Kuwait considers relaunching $10bn chemicals complex Wil Crisp

  22 September 2025

  

   

  Kuwait is considering relaunching prequalification for its planned Al-Zour integrated complex upgrade programme (Zicup), which is estimated to be worth $10bn.

  The Zicup project, also known as the Al-Zour petrochemicals project, or the Petrochemical Refinery Integration Al-Zour Project (Prize), is expected to be integrated with the $16bn Al-Zour refinery and has faced significant delays in recent years.

  The project is being developed by state-owned Kuwait Integrated Petroleum Industries Company (Kipic) and the company has not made a final investment decision for the project or revealed a schedule for when the project will be approved and tendered.

  In June 2024, MEED reported that Kuwait was still seeking financing for the project.

  At the time, a source said that Kipic was looking for a similar financing deal to Kuwait’s Clean Fuels Project, which upgraded and integrated two of the country’s biggest oil refineries.

  For the Clean Fuels Project, Italian export credit agency Sace guaranteed a $625m loan issued by a pool of international banks, led by BBVA Milan Branch in the role of Sace facility agent.

  The credit arrangement helped state-owned Kuwait National Petroleum Company to finance its strategic $14.5bn Clean Fuels Project, which includes the modernisation and expansion of its Mina Abdullah and Mina Al-Ahmadi refineries.

  In September 2024, MEED reported that Kipic had signalled to contractors that the project was no longer a priority.

  However, in recent months, Kipic has started to talk to contractors about the project again and is considering relaunching prequalification for the project, according to industry sources.

  One source said: “Discussions are now ongoing within Kipic about the future of this project and it could see movement next year. It’s looking like it could go ahead.

  “One of the discussions that is currently ongoing in Kipic is around potentially relaunching the prequalification for this project.

  “The future of this project is still uncertain – but it is looking much more like it is going to progress compared to at this time last year.

  “At this time last year, nobody at Kipic wanted to talk about it and it was clearly not a priority.

  “Now, this is a project that is back on the table and they are definitely looking at ways to make it work.”

  In January 2023, MEED reported that US-based engineering company Fluor and South Korea’s SK Engineering & Construction had withdrawn from the bidding process for the project.

  Kipic prequalified bidders for the planned petrochemicals complex in April 2021.

  It published a list of bidders eligible to bid on the three main packages of the project.

  The original list of the seven groups prequalified to bid for packages one and two comprised:

  • Tecnicas Reunidas (Spain) / Sinopec Engineering Company (China)
  • Samsung Engineering (South Korea) / CTCI Corporation (Taiwan) / Consolidated Contractors Company (Lebanon)
  • Fluor (US) / Daewoo Engineering & Construction (South Korea) / China Huanqiu Contracting & Engineering Corporation
  • Saipem (Italy) / Hyundai Engineering & Construction (South Korea)
  • Technip Energies (France)
  • SK Engineering & Construction (South Korea) / Petrofac (UK)
  • JGC Corporation (Japan)

  The scope of package one includes gasoline and olefins units. It was estimated to be worth $4bn and is also known as Gasoline Engineering, Procurement and Construction (EPC) Package 5011.

  The scope of package two included aromatics units. It was known as Petrochemical EPC Package 5012.

  Package three, known as Marine EPC Package 5013, covered the building of port and export facilities and onshore and offshore pipelines.

  Originally, four groups prequalified to bid for package three, estimated to be worth $1.5bn:

  • China Harbour Engineering Company (China) / Saipem (Italy)
  • SK Engineering & Construction Company (South Korea) / Larsen & Toubro Hydrocarbon Engineering (India)
  • Hyundai Engineering & Construction Company (South Korea) / Hyundai Engineering Company (South Korea)
  • Eiffage Genie Civil Marine (France) / Afcon Infrastructure (India) / Daewoo Engineering & Construction Company (South Korea)

  The project was first announced in 2006.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14714183/main4300.jpg

  Wil Crisp
• 
  Aseer-Jizan highway is a test case for Gulf infrastructure PPPs Yasir Iqbal

  19 September 2025

  Commentary
  Yasir Iqbal
  Construction writer

  Register for MEED’s 14-day trial access 

  The start of tendering for the Aseer-Jizan highway public-private patnership (PPP) is a watershed moment in the Gulf region's approach to infrastructure. For decades, the major highways in the GCC have been delivered in the same way: government-funded, government-managed, with little appetite for risk-sharing.

  This project breaks that mould. Aiming to be the first full-concession transport PPP in the region, it hands the private partner responsibility for design, construction, financing, operations and maintenance. This is a major step forward.

  According to industry experts, the move signals that Saudi Arabia, and by extension the GCC, is ready to treat private investors as partners rather than contractors. The PPP models in social infrastructure have been useful experiments, but this case, where the private sector is taking on long-term risks, demonstrates the market’s growing maturity.

  This raises the bar for private involvement and brings the model closer to precedents seen in Europe, Asia and Latin America.

  However, there are still unknowns: the offtaker is new to the PPP market, and that adds uncertainty. But for investors, the prestige of being associated with Saudi Arabia’s first highway concession has its own appeal. As long as the payment guarantees are firm, the risk may be worth the reward. 

  If the project is executed well, it will set the standard for a new pipeline of road, airport and rail schemes. It will also deliver confidence, both for investors, who want predictable frameworks, and for governments, which want to stretch budgets without compromising delivery.

  The wider GCC will study the Aseer-Jizan highway PPP carefully. The concession is the first test case that could pave the way for the region's investment-driven infrastructure developments.

  ---

  Webinar: Unlocking Opportunities: An Insight into the NCP’s Current PPP Project Pipeline in Saudi Arabia
  Mon, 29 Sep 2025 | 13:00 GST / 12:00 KSA
  Secure your spot now by clicking here

  ---

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14704209/main.jpg

  Yasir Iqbal
• 
  Kuwait aims to close bidding for $1.3bn oil projects Wil Crisp

  19 September 2025

  

  Register for MEED’s 14-day trial access 

  State-owned upstream operator Kuwait Oil Company (KOC) is aiming to close the bidding process for two major projects by the end of September, according to sources.

  Both projects are focused on the development of an oil separation facility, with their combined value expected to be about KD396m ($1.3bn).

  Both tenders have seen several extensions to their bid deadlines since they were originally tendered.

  One source said: “KOC has signalled to bidders that the bid deadline extensions are coming to an end.

  “They are aiming to see bids submitted before the end of September. There maybe will be a small delay of a week, or something like that, but KOC is really looking to get bids in before the end of September.”

  Both contracts were tendered in December 2024 and the original deadline for bid submission for both contracts was set for 16 March.

  The first tender, estimated to be worth KD292m ($951m), is focused on developing a separation facility in the NK SA/BA area, close to Gathering Centre 23 (GC-23) and GC-24. The scope of the contract also includes a new injection facility at GC-31 and effluent water injection networks in north Kuwait.

  The second contract, estimated to be worth KD104m ($338m), is focused on developing separation facilities at GC-25 and a water injection facility at GC-30.

  Kuwait is in the middle of an upstream projects push, in line with producing 4 million barrels a day of oil by 2035.

  On 10 May 2024, Kuwait’s Emir, Sheikh Mishal Al-Ahmad Al-Sabah, announced the indefinite suspension of parliament in a televised speech.

  Under Kuwaiti law, parliament can be suspended for a maximum of four years.

  Prior to the suspension of Kuwait’s parliament, the country suffered from very low levels of project awards for several years due to political gridlock and infighting between the country’s cabinet and parliament.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14702553/main0703.png

  Wil Crisp
• 
  Etihad Rail tenders first section of Jordan phosphate rail Yasir Iqbal

  19 September 2025

  

   

  Abu Dhabi's National Infrastructure Construction Company, a subsidiary of Etihad Rail, has tendered a contract covering the construction works for the first section of a phosphate railway line stretching from Al-Shidiya to Aqaba in Jordan.

  The scope of work covers the construction of civil works, including the tunnel and mechanical, electrical and plumbing works on the railway line.

  The client has set a deadline of 22 September for firms to submit their technical and commercial proposals.

  In April, a French-Swiss joint venture of Egis and Arx was awarded a design consultancy contract for the project.

  In September last year, Etihad Rail announced that it had signed a memorandum of understanding (MoU) worth $2.3bn with Jordan’s Transport Ministry and local companies to develop the phosphate railway line in Jordan.

  In an official statement, Etihad Rail said it had signed an agreement with Jordan to build, operate and maintain the project.

  The statement added that other MoUs were signed with Jordan Phosphate Mines Company and Arab Potash Company to transport 16 million tonnes of phosphate and potash annually from mining sites to the Port of Aqaba via the Jordanian railway network.

  The MoUs also cover the manufacturing and supply of rolling stock; the construction of terminals in Aqaba, Ghor Al-Safi and Shidiya; and the railway line’s maintenance, repair and operation.

  Project history

  In 2015, Jordan’s Transport Ministry tendered a contract to construct the Shidiya rail link. The proposed rail link was intended to facilitate the transport of 6 million tonnes a year of phosphate from mines in Shidiya to Wadi Al-Yutum near Aqaba.

  In November of that year, a joint venture of China Communications Construction Company and local contracting firm Masar United were confirmed as the lowest bidders and were awaiting the formal award of the contract to build the 21-kilometre spur line.

  The project was subsequently put on hold due to funding issues.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/14702103/main.gif

  Yasir Iqbal