meed-logo

line1 line2 line3
SIGN IN / REGISTER

Gulf LNG sector enters a new prolific phase

24 October 2025

 

Liquefied natural gas (LNG) has been produced in the GCC since the 1970s. However, it is only since the start of this decade that regional producers have begun committing tens of billions of dollars to significantly ramp up output, driven by soaring global demand for the super-chilled fuel.

The GCC is projected to add at least 80 million tonnes a year (t/y) of LNG capacity by 2030, placing it firmly among the world’s top three producing regions. 

Qatar leads the Gulf’s push for LNG dominance as the region’s largest – and one of its earliest – LNG producers.

State enterprise QatarEnergy has been producing LNG from the giant North Field offshore gas reserve in the Gulf waters, which it shares with Iran, since the 1980s. QatarEnergy currently produces 77.5 million t/y of LNG from 15 processing trains, all located in a sprawling complex in Ras Laffan Industrial City.

Top spot

QatarEnergy is on course to nearly double its LNG production to 142 million t/y by the end of the decade through its $40bn North Field LNG expansion programme.

The energy giant is understood to have spent nearly $30bn on the first two phases of its North Field expansion – North Field East and North Field South – which will raise LNG production capacity from 77.5 million t/y to 126 million t/y by 2028. Engineering, procurement and construction (EPC) works on both projects are progressing.

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

In May 2023, QatarEnergy awarded the $10bn main EPC contract for the North Field South project to a consortium of Technip Energies and Lebanon-based Consolidated Contractors Company. 

The contract includes two large LNG trains, each with a capacity of 7.8 million t/y.

Once fully operational, the first two phases of the North Field expansion will add 48 million t/y of supply to the global LNG market.

In February 2024, QatarEnergy announced the third phase of its North Field expansion – North Field West. The project will add 16 million t/y of LNG capacity through two processing trains of 8 million t/y each, following the model of earlier phases. It will source feedstock from the western zone of the offshore North Field reserve.

Progress on the North Field West project has, however, been slow, and it has remained in the pre-front-end engineering and design (pre-feed) phase since its announcement.

QatarEnergy is reportedly exploring options to fast-track it to the EPC stage.

The first two phases of the North Field expansion will add 48 million t/y to the global LNG market

Oman progress

Oman has recently made significant progress in the global race to expand LNG production and exports. The Omani government made headlines in July last year, when it announced that majority state-owned Oman LNG would build a fourth train at its Qalhat LNG production complex in Sur.

The new LNG train will have an output capacity of 3.8 million 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. The majority state-owned company has shortlisted a consortium of Chiyoda and South Korea’s Samsung C&T, Japanese contractor JGC Corporation and another consortium of Italian contractor Saipem and South Korea-based Daewoo Engineering & Construction to participate in the main tender for EPC works.

Technical and commercial bids are due in February and March 2026, respectively.

The EPC tender process began less than a year after Oman LNG awarded the feed contract to US-based consultancy KBR.

Separately, 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 may consider doubling the output capacity of the LNG complex, although the plan is yet to be confirmed, according to sources.

Earlier in the year, TotalEnergies appointed Technip Energies – already the main EPC contractor on the under- construction Marsa LNG terminal – as a consultant to perform concept and feasibility studies on the proposed second expansion phase.

With Oman LNG advancing its fourth train and TotalEnergies mulling a potential doubling of LNG production in Oman, the sultanate is positioning itself as a key global LNG player by 2030.

UAE plans

Abu Dhabi National Oil Company (Adnoc) has historically been one of the GCC’s smaller LNG producers. Its subsidiary, Adnoc Gas, operates three large gas processing trains on Das Island. 

The Das Island terminal has a liquefaction and export capacity of about 6 million t/y. The first two trains, commissioned in the 1970s, provide a combined 2.9 million t/y, while the third, added in the mid-1990s, contributes 3.2 million t/y.

Adnoc Gas will significantly expand its LNG capacity with a new greenfield terminal in Ruwais, set to come online in 2028.  The terminal will add 9.6 million t/y of LNG capacity via two 4.8 million t/y trains.

Adnoc awarded the $5.5bn EPC contract in June 2024 to a consortium of Technip Energies, JGC Corporation, and NMDC Energy, coinciding with its final investment decision.

Along with the main processing trains, the Ruwais LNG complex will also feature process units, storage tanks and an export jetty for loading cargoes and LNG bunkering, as well as utilities, flare handling systems and associated buildings. The facility will ship LNG mainly to key Asian markets, such as Pakistan, India, China, South Korea and Japan. 

https://image.digitalinsightresearch.in/uploads/NewsArticle/14933998/main.gif
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Public Investment Fund backs Neom

    16 April 2026

    Commentary
    Colin Foreman
    Editor

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Public Investment Fund (PIF) has backed Neom by including it as one of six strategic ecosystems in its newly approved 2026-30 strategy.

    The future of the $500bn gigaproject had been thrown into doubt following the postponement of the 2029 Asian Winter Games at the Trojena mountain resort, the cancellation of construction contracts – such as the $5bn deal with Italian contractor Webuild for dam works at Trojena – and the slowdown of development at The Line, where tunnelling contracts were cancelled and staff left the project.

    The backing comes as Neom’s operational focus appears to be evolving in response to shifting regional dynamics and global economic conditions. For example, on 15 April Neom posted on its official X account about a new Europe-Egypt-Neom-GCC corridor, describing it as a faster route for time-sensitive goods. It said the corridor combines trucking and ferry services to move goods quickly into the Gulf, adding that importers from several European markets are already using it to reach the UAE, Kuwait, Iraq, Oman and beyond.

    Powered by Pan Marine, DFDS and regional RoPax services, the initiative is positioned as a way to add flexibility and resilience to regional supply chains. This emphasis on logistics and immediate trade utility suggests a shift away from the more speculative architectural announcements that characterised Neom’s early years, towards activity more directly tied to current market realities.

    PIF’s broader 2026-30 strategy places heavy emphasis on “delivering competitive domestic ecosystems to connect sectors, unlock the full potential of strategic assets, maximise long-term returns and continue to drive the economic transformation of Saudi Arabia”.

    The inclusion of Neom as a standalone ecosystem within the Vision Portfolio suggests that while the project remains part of the kingdom’s Vision 2030 goals, it will be subject to the fund's focus on working with the private sector.

    That means the long-term success of Neom will increasingly depend on its ability to attract external investment and function as a viable economic hub rather than just a state-funded construction site.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16417262/main.jpeg
    Colin Foreman
  • Kuwait gas project worth $3.3bn put on hold

    16 April 2026

     

    State-owned Kuwait Gulf Oil Company’s (KGOC’s) planned tender for the development of an onshore gas plant next to the Al-Zour refinery has been put on hold due to uncertainty created by the US and Israel’s war with Iran, according to industry sources.

    The project budget is estimated to be $3.3bn, and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

    Previously, it was expected to be tendered in late March, but the tendering process was delayed due to the regional conflict and disruption to shipping through the Strait of Hormuz.

    One source said: “This tender is now effectively on hold while KGOC waits for increased stability in the region before it invites companies to bid for the contract.”

    Under current plans, the plant will have the capacity to process up to 632 million cubic feet a day of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    Ownership of the field is disputed by Iran, which refers to the field as Arash.

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

    It is believed that the Dorra field’s close proximity to Iran will make development difficult due to the current security environment.

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

    In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

    France-based Technip Energies completed the contract for the front-end engineering and design.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413221/main.png
    Wil Crisp
  • Iraq pushes to revive oil pipeline through Saudi Arabia

    16 April 2026

    Iraq is pushing to revive an oil pipeline that passes through Saudi Arabia, allowing it to diversify export routes.

    Saheb Bazoun, a spokesman for Iraq’s Oil Ministry, said the pipeline would help to insulate Iraq from any future blockades of the Strait of Hormuz, which has been largely closed since 28 February.

    The original pipeline through Saudi Arabia has not been used for more than 30 years and would need work to be done in order to bring it online.

    It is 1,568km long, extending from the city of Zubair in Iraq to the Saudi port of Yanbu on the Red Sea.

    The pipeline was built in two phases during the 1980s. The first phase stretches between Zubair and Khurais, while the second extends to Yanbu. The pipeline’s operating capacity reached over 1.6 million barrels a day (b/d).

    Following the Gulf War, the pipeline was shut down in August 1990. It has remained out of operation for decades, despite Iraq’s several attempts to restart it.

    The original pipeline project cost over $2.6bn, including storage tanks and loading terminals.

    In the wake of the US and Israel attacking Iran on 28 February, global markets have lost 11 million barrels a day (b/d) of oil supply due to the effective closure of the Strait of Hormuz.

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

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

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

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413290/main.jpg
    Wil Crisp
  • Algeria opens bidding for water treatment plant

    15 April 2026

     

    State-owned Cosider Pipelines, part of Algeria’s public infrastructure group Cosider, has issued a tender for the construction of a demineralisation plant in In Salah in Algeria.

    The contract covers the design, supply, installation, testing and commissioning of a plant with a treatment capacity of 62,000 cubic metres a day (cm/d).

    The tender is open to local and international companies specialising in the design and construction of demineralisation and reverse osmosis desalination plants.

    The bid submission deadline is 26 April.

    The project will be located at In Salah, a key industrial area in southern Algeria, where treated water supply is important for both municipal and industrial use.

    Cosider said that individual bidders must demonstrate that they have completed at least one reverse osmosis demineralisation or desalination plant with a capacity of 20,000 cubic metres a day or more.

    They must also show an average annual turnover of at least AD1bn ($7.7m) for their five best years over the past decade.

    For consortium bids, all partners must share full responsibility for the contract, while the lead company must meet the technical and financial requirements.

    Recent projects

    In 2023, MEED reported that Riyadh-based water utility developer Wetico had won two contracts to develop water desalination plants in Algeria.

    Societe Algerienne de Realisation de Projects Industriels (Sarpi) awarded the contract for the El-Tarf desalination plant, while Entreprise Nationale de Canalisations (Enac) is the client for the Bejaja facility.

    Both plants were commissioned in 2025, each with a production capacity of 300,000 cm/d.

    Separately, Wetico was the main contractor on a third plant commissioned last year. The Cap Dijinet 2 seawater desalination plant in Boumerdes province covers 18 hectares and also has a capacity of 300,000 cm/d.

    Like many countries, Algeria is facing pressure on resources due to longer and more frequent droughts. Seawater desalination is seen as a key driver of the government’s strategy to guarantee drinking water supply.

    According to previous reports, the government is planning to build up to six additional plants by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16404325/main.jpg
    Mark Dowdall
  • WEBINAR: UAE Projects Market 2026

    15 April 2026

    Webinar: UAE Projects Market 2026
    Tuesday, 28 April 2026 | 11:00 GST  |  Register now

    Agenda:

    • Overview of the UAE projects market landscape
    • 2025 projects market performance
    • Value of work awarded 2026 YTD
    • Impact of the Iran conflict on the projects market and real estate, assessing supply chain disruptions, material cost inflation and war risk premiums
    • Key drivers, challenges and opportunities
    • Size of future pipeline by sector and status
    • Ranking of the top contractors and clients
    • Summary of key current and future projects
    • Short and long-term market outlook
    • Audience Q&A

    Hosted by: Colin Foreman, editor of MEED 

    Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401868/main.gif
    Colin Foreman