L&T wins massive QatarEnergy LNG gas project package
26 March 2025
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India’s Larsen & Toubro (L&T) has announced that QatarEnergy LNG has officially awarded its subsidiary, Larsen & Toubro Energy Hydrocarbon (LTEH), the main contract for the COMP4 package of the second phase of its North Field Production Sustainability (NFPS) project.
L&T described the contract as “ultra-mega”, a term it uses to denote values exceeding INR150bn ($1.75bn), adding that it is the single-largest contract it has ever won.
MEED recently reported that QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, had selected LTEH – through a letter of intent – for the engineering, procurement, construction and installation (EPCI) works on the NFPS COMP4 package, which is estimated to be valued between $4bn and $5bn.
L&T, in its statement on 26 March, said that the scope of work encompasses the engineering, procurement, fabrication, installation and commissioning of two offshore compression complexes, each comprising large offshore platforms with compression and power generation facilities, living quarters, flare platforms, interconnected bridges and other associated structures, to be located approximately 80 kilometres off the northeast coast of Qatar.
Sources previously told MEED that the objective of the combined 4A and 4B package (COMP4), which is the fourth package of the second phase of the NFPS project, is the EPCI of two large gas compression systems that will be known as CP8S and CP4N, each weighing 25,000-35,000 tonnes. The contract scope also includes compression platforms, flare gas platforms and other associated structures.
The other contractors that bid for the package are understood to include Italian contractor Saipem and US-based McDermott International.
North Field Production Sustainability
QatarEnergy’s North Field liquefied natural gas (LNG) expansion programme requires the state enterprise to pump large volumes of gas from the North Field offshore reserve to feed the three phases of the estimated $40bn-plus programme.
QatarEnergy has already invested billions of dollars in engineering, procurement and construction works on the two phases of the NFPS project, which aims to maintain steady gas feedstock for the North Field LNG expansion phases.
The second NFPS phase will mainly involve building gas compression facilities to sustain and gradually increase gas production from Qatar’s offshore North Field gas reserve over the long term.
Saipem has secured work worth a total of $8.5bn on the second NFPS phase.
QatarEnergy LNG awarded Saipem a $4.5bn order in October 2022 to build and install gas compression facilities. The main scope of work on the package, which is known as EPCI 2, covers two large gas compression complexes that will comprise decks, jackets, topsides, interconnecting bridges, flare platforms, living quarters and interface modules.
The gas compression complexes – CP65 and CP75 – will weigh 62,000 tonnes and 63,000 tonnes, respectively, and will be the largest fixed steel jacket compression platforms ever built.
Following that, Saipem won combined packages COMP3A and COMP3B of the NFPS project’s second phase in September last year.
The scope of work on the combined packages encompasses the EPCI for six platforms, approximately 100km of corrosion-resistant alloy rigid subsea pipelines of 28-inches and 24-inches diameter, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.
Separately, QatarEnergy LNG awarded McDermott the contract for the NFPS second phase package known as EPCI 1, or COMP1, in July 2023. The scope of work on the estimated $1bn-plus contract is to install a subsea gas pipeline network at the North Field gas development.
NFPS first phase
Saipem is also executing the EPCI works on the entire first phase of the NFPS project, which consists of two main packages.
Through the first phase of the NFPS scheme, QatarEnergy LNG aims to increase the early gas field production capacity of the North Field offshore development to 110 million tonnes a year.
QatarEnergy LNG, formerly Qatargas, awarded Saipem the contract for the EPCI package in February 2021. The package is the larger of the two NFPS phase one packages and has a value of $1.7bn.
Saipem’s scope of work on the EPCI package encompasses building several offshore facilities for extracting and transporting natural gas, including platforms, supporting and connecting structures, subsea cables and anti-corrosion internally clad pipelines.
The scope of work also includes decommissioning a pipeline and other significant modifications to existing offshore facilities.
In addition, in April 2021, QatarEnergy LNG awarded Saipem two options for additional work within the EPCI package, worth about $350m.
QatarEnergy LNG awarded Saipem the second package of the NFPS phase one project, estimated to be worth $1bn, in March 2021.
Saipem’s scope of work on the package, which is known as EPCL, mainly covers installing three offshore export trunklines running almost 300km from their respective offshore platforms to the QatarEnergy LNG north and south plants located in Ras Laffan Industrial City.
Saipem performed the front-end engineering and design work on the main production package of the first phase of the NFPS as part of a $20m contract that it was awarded in January 2019. This provided a competitive advantage to the Italian contractor in its bid to win the package.
ALSO READ: QatarEnergy LNG prepares to receive decarbonisation bids
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Acwa Power starts production at new Shuaibah plant
3 April 2025
The new seawater reverse osmosis (SWRO) technology-based plant in Shuaibah, Saudi Arabia, has started water production following the decommissioning of the old plant running on multi-stage flash (MSF) technology.
The new plant will cater to the water needs of Jeddah and Makkah Al-Mukarramah, especially during peak demand periods such as the Ramadan and Hajj seasons.
Saudi utility developer Acwa Power CEO Marco Arcelli said in a social media post that the company has begun producing “green” water from the new SWRO plant in Shuaibah following the decommissioning of the old MSF desalination plant there.
“We bid farewell to the first ever Acwa Power plant to jump into the future with one of the most efficient and green plants in the world, reducing power consumption by 87%, integrating 65MW of locally produced solar power, and bringing 22 million barrels of oil and 9 million tonnes of carbon dioxide annually to zero,” Arcelli said.
The old MSF-based plant was part of the first independent water and power project (IWPP) to be developed in Saudi Arabia when the government opened the market for private investment. It became operational in 2010.
Acwa Power, Shuaibah Water Electricity Company (Swec) and Saudi Water Partnership Company (SWPC) agreed to convert the water desalination component of the Shuaibah 3 IWPP into an SWRO plant in June 2022.
At the time, the stakeholders announced that “operations of Shuaibah 3 IWPP will cease in 2025, saving nearly 45 million tonnes of carbon dioxide emissions and 22 million barrels of light crude oil annually”.
A consortium led by Acwa Power and Public Investment Fund (PIF)-owned Badeel is developing the new facility, known as the Shuaibah 3 independent water project (IWP), at a cost of approximately SR3bn ($800m).
It will produce 600,000 cubic metres of water a day once complete.
The Acwa Power-led team agreed to have 40% local content in the construction phase and 50% in the operation and maintenance phase for the first five years, which will eventually increase to 70%.
Swec is the project company that developed, financed and operated the Shuaibah 3 IWPP. It comprised Acwa Power (30%); a Malaysian consortium of Tenaga Nasional, Malakoff Berhad and Khazanah Nasional (30%); PIF (32%); and Saudi Electricity Company (8%).
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Read the April 2025 MEED Business Review
3 April 2025
Download / Subscribe / 14-day trial access Governments in the Middle East and North Africa (Mena) region are digging deep to find solutions to the challenges posed by booming populations and rapidly growing cities. It is hoped that by expanding their underground infrastructure, major urban
centres such as Dubai, Riyadh and Doha can alleviate the mounting pressure that is being put on their existing transport and utility networks.
Subterranean transport projects, such as the high-profile Dubai Loop scheme being planned by the Roads & Transport Authority in partnership with Elon Musk's The Boring Company, or the recently completed metro systems in Riyadh and Doha, promise to tackle urban congestion and slash commute times. Meanwhile, through large-scale underground utilities schemes like the Dubai Strategic Sewerage Tunnels project, the traditional wastewater network can be upgraded without disturbing the existing cityscape.As a result, while governments globally are curtailing public infrastructure spending to reduce public debt, GlobalData has revealed that the Mena region has a tunnel construction pipeline worth $128.6bn.
In the April edition of MEED Business Review, we take an in-depth look at the various subterranean transport and utility projects that are in the pipeline in the Mena region, and examine the outlook for major tunnelling projects globally.
MEED's latest issue also includes a comprehensive report on the region's tourism and hospitality sector, as Saudi Arabia strives to join Qatar and the UAE as one of the GCC’s leading leisure tourism destinations. Indeed, the kingdom dominates when it comes to hospitality-linked project activity, with contracts worth a total of $4.4bn awarded last year.
Saudi Arabia is also the focus of this month’s exclusive 21-page market report, which finds the kingdom looking forward to a positive year in 2025. As Riyadh takes the diplomatic initiative, particularly as an intermediary in the Ukraine conflict, the kingdom's non-oil economy is also going from strength to strength.
Although lower oil prices are expected to slightly dent revenues this year, Saudi Aramco is planning sustained capital expenditure and remains intent on projects to expand the production of high-value petrochemicals. Meanwhile, 2025 is expected to be a year of stable profitability for Saudi Arabia’s banks, and is set to be the busiest year ever for the power sector. Construction awards also remain up as Riyadh shifts its focus to delivering the infrastructure and transport projects that are needed for the kingdom’s hosting of upcoming international events.
This issue is also packed with analysis. We find out how BP’s planned $25bn investment in Iraqi oil fields will benefit Chinese contractors, round up the top five GCC data centre projects, look at why the rapid deployment of low-cost solar power is causing a surge in battery energy storage demand, and discover that Riyadh's need to diversify its sources of project financing has led to a sharp rise in the value of public-private partnerships in Saudi Arabia.
In the April issue, the team also speaks exclusively to CEO of Edmond de Rothschild Asset Management UK and global head of infrastructure and structured finance, Jean-Francis Dusch, about Saudi infrastructure investment opportunities; and talks to Mark Thomas, group CEO of Bapco Energies, about how the state energy conglomerate plans to secure Bahrain’s hydrocarbons potential.
We hope our valued subscribers enjoy the April 2025 issue of MEED Business Review.
Must-read sections in the April 2025 issue of MEED Business Review include:
> AGENDA:
> Traffic drives construction underground
> Muted public spending hinders global tunnelling> CURRENT AFFAIRS:
> Chinese contractors to benefit from BP’s investment in IraqINDUSTRY REPORT:
Tourism and hospitality
> Beaches and luxury drive regional tourism
> Region’s hotel projects pipeline balloons> INTERVIEWS:
> Investing in Saudi Arabia’s infrastructure opportunities
> Securing Bahrain’s hydrocarbons potential> DATA CENTRES: GCC’s top five data centre projects
> POWER: GCC battery storage pipeline hits over 55GWh
> SAUDI PPPs: Rise in PPPs reflects Saudi budgetary pragmatism
> SAUDI ARABIA MARKET REPORT:
> COMMENT: Riyadh enjoys buoyant fortunes
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads up> MEED COMMENTS:
> Saudi Arabia is high-rise capital of the world
> Dubai needs to deliver more metro lines
> US and UAE power play gains momentum
> Libya’s new oil licensing round could be make or break> GULF PROJECTS INDEX: Gulf index sees minor correction
> FEBRUARY 2025 CONTRACTS: Project awards slump notably in February
> ECONOMIC DATA: Data drives regional projects
> OPINION: Is this the end for Middle East studies?
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13603159/main.gif -
Abu Dhabi balances AI and net zero with $9.8bn infra spend
3 April 2025
Commentary
Jennifer Aguinaldo
Energy & technology editorAbu Dhabi National Energy Company (Taqa) and Emirates Water & Electricity Company (Ewec) have officially confirmed the scale of the power generation and grid infrastructure being planned to support the UAE capital’s artificial intelligence (AI) strategy.
The picture emerging from today’s announcement indicates a total investment of AED36bn, or roughly $9.8bn.
This includes the round-the-clock solar photovoltaic plus battery energy storage system project that Ewec and Abu Dhabi Future Energy Company (Masdar) announced in January, and which requires an estimated $6bn.
Today’s announcement said an advanced grid infrastructure project will account for 25% of the total investment, which equates to about $2.45bn. This implies that the build, own and operate contract for the Al-Dhafra open-cycle gas turbine (OCGT), which Taqa will 100% own, will require roughly $1.35bn.
The chosen energy infrastructure combination shows Abu Dhabi’s resolve to address the high energy density of the nascent AI sector and its commitment to achieving net-zero emissions in the long term.
These major investments provide a glimpse into the scale and urgency of Abu Dhabi’s AI ambitions.
In January, for instance, the government said it plans to deploy AED13bn for a three-year digital strategy to make Abu Dhabi the first government globally to fully integrate AI into its digital services by 2027.
The strategy includes achieving 100% adoption of sovereign cloud computing for government operations and digitising and automating 100% of processes to streamline procedures, enhance productivity and improve operational efficiency.
The strategy is projected to contribute AED24bn to Abu Dhabi’s GDP by 2027 while creating more than 5,000 jobs to support Emiratisation efforts.
Abu Dhabi-owned data centre operator Khazna Data Centres is also preparing for a major capacity expansion. Construction is under way for the state’s first 100MW data centre in Ajman.
In addition, UAE AI and technology fund MGX and US-based private equity investor Silver Lake recently acquired a minority stake in Khazna, while Abu Dhabi AI firm G42 remains the company’s majority shareholder.
A March meeting between US President Donald Trump and Abu Dhabi deputy ruler, Sheikh Tahnoon Bin Zayed Al-Nahyan, at the White House also highlighted Abu Dhabi’s unfolding AI pursuit.
The formation of a $25bn joint venture between Abu Dhabi’s ADQ and US-headquartered Energy Capital Partners (ECP) to build data centres in the US preceded that meeting.
However, in the minds of some observers, the real diplomatic objective of the UAE is to gain easier access to US-made graphics processing units (GPUs), which are vital to the successful implementation of its AI strategy.
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Taqa and Ewec sign Dhafra OCGT and grid contracts
3 April 2025
Abu Dhabi National Energy Company (Taqa) and state utility and offtaker Emirates Water & Electricity Company (Ewec) have signed a 24-year power-purchase agreement (PPA) to build, own and operate an open-cycle gas turbine (OCGT) project in Abu Dhabi.
The Al-Dhafra OCGT project will have a capacity of 1,000MW.
Taqa will own 100% of the project and undertake the operation and maintenance (O&M) of the plant, the firms said in a joint statement issued on 3 April.
MEED previously reported that the Italian original equipment manufacturer, Ansaldo Energia, will supply gas turbines for the project.
The project’s engineering, procurement and construction (EPC) contract is also expected to be formally awarded imminently to a team of South Korean and local contractors, according to industry sources.
In addition to the Dhafra OCGT project, Taqa Transmission, previously Transco, agreed to develop advanced power grid infrastructure to integrate the additional generation capacity to new sources of energy demand, enabling access to “reliable power with a low carbon footprint”.
According to Taqa and Ewec, both schemes will support the round-the-clock solar and battery energy storage system (bess) project, which Abu Dhabi Future Energy Company (Masdar) and Ewec announced in January.
Related read: Masdar meets renewable’s moonshot challenge
That project, comprising a 5.2GW solar photovoltaic (PV) plant and 19 gigawatt-hours bess plant, aims to deliver up to 1GW of “baseload” power from renewable sources “24 hours a day, seven days a week”.
These projects aim to advance the UAE National Strategy for Artificial Intelligence 2031 and the UAE Net Zero by 2050 initiative.
“The collaboration between Ewec, Taqa and Masdar will drive investment of around AED36bn ($9.8bn) in energy supply infrastructure in Abu Dhabi with around 75% of that to be invested in renewable and conventional power generation.
“The remaining 25% will be invested in grid infrastructure, which will be added to the regulated asset base and will receive the regulated return,” the firms said.
The round-the-clock solar plus bess project is understood to require $6bn in investment, which implies that the BOO contract for the Dhafra OCGT is roughly $1.35bn.
The advanced grid infrastructure will account for the remaining $2.45bn.
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Australian firm wins Trojena dams subcontract
3 April 2025
Australian firm Glaass has won a subcontract from Italian contractor Webuild for the Trojena dams project in Neom, Saudi Arabia.
In an official statement, the firm said its contract scope covers providing comprehensive quality, health, safety and environmental services for the project, which involves around 2,800 field workers.
Neom awarded Webuild a $5bn contract in late 2023. The deal covers the construction of three dams that will form a freshwater lake for the Trojena ski resort.
The main dam will be 145 metres high and 475 metres long at its crest. It will be built using 2.7 million cubic metres of roller compact concrete (RCC).
Some 650,000 cubic metres of RCC will be used to build a dam within the planned lake, creating an island below the water level.
The kidney-shaped dam will be 38 metres high and 700 metres long. It will be connected to the nearby Lake Village by an underwater tunnel. The landscaping and other attractions within the dam are known as the Enchanted Forest.
The third dam will be 65 metres high and 490 metres long at its crest. It will be constructed using 4.15 million cubic metres of rockfill. The works also include the lakebed line and the foundations for the Bow Building, a concrete structure at the end of the lake that will overhang the valley below and incorporate a hotel.
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MEED’s April 2025 report on Saudi Arabia includes:
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads uphttps://image.digitalinsightresearch.in/uploads/NewsArticle/13609655/main.gif