meed-logo

line1 line2 line3
SIGN IN / REGISTER

QatarEnergy achieves strategic oil and gas goals in 2025

12 January 2026

 

QatarEnergy made significant progress towards achieving its strategic oil and gas production expansion objectives in 2025, while also firming up plans for the next phase of its mammoth North Field liquefied natural gas (LNG) programme.

The state enterprise spent almost $20bn last year on projects ranging from gas production expansion and oil output capacity building to carbon capture and sequestration, making it the strongest year for capital expenditure in Qatar’s hydrocarbon sector since 2021.

QatarEnergy announced the North Field West project – the third expansion phase of its estimated $40bn North Field LNG programme – in February 2024. However, progress on the project was initially slow, with North Field West remaining in the early planning stages for much of the year.

Momentum picked up in the second half of the year, as QatarEnergy began the prequalification process and issued tenders for various work packages related to the North Field West LNG project. Notably, the company completed the prequalification exercise for dredging works.

More importantly, QatarEnergy awarded a contract in December for the engineering, procurement, construction and installation (EPCI) of four offshore jackets and associated facilities at the giant North Field gas reserve in Qatari waters.

US-headquartered McDermott International won the contract, which is estimated to be worth about $200m. The new jackets will boost gas production from the North Field reservoirs, providing additional gas feedstock for the North Field West LNG project.

North Field LNG expansion scheme

The North Field West project will have an LNG production capacity of 16 million tonnes a year (t/y), delivered through two 8 million t/y LNG processing trains, based on the two earlier phases of QatarEnergy’s LNG expansion programme. The project will draw feedstock from the western zone of Qatar’s offshore North Field gas reserve and is expected to increase QatarEnergy’s total LNG production capacity to 142 million t/y upon commissioning in 2030.

Meanwhile, EPCI works on the first two phases of the North Field expansion programme — North Field East and North Field South — continue to advance. These projects will raise Qatar’s LNG production capacity from 77.5 million t/y to 126 million t/y by 2028.

QatarEnergy is understood to have spent nearly $30bn on the North Field East and North Field South LNG projects, which, once fully operational, will add 48 million t/y of supply to the global LNG market.

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

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 covers the EPCI of two LNG trains, each with a capacity of 7.8 million t/y.

North Field Production Sustainability

QatarEnergy’s North Field LNG expansion programme requires large volumes of gas to be pumped from the offshore North Field to feed the three phases of the estimated $40bn-plus programme. The state enterprise aims to secure these incremental gas volumes through the North Field Production Sustainability (NFPS) project.

QatarEnergy has already invested billions of dollars in EPCI works across two phases of the NFPS project since 2021. The second phase primarily involves the construction of gas compression facilities to sustain and gradually increase gas production from the North Field over the long term.

In 2025 alone, QatarEnergy subsidiary QatarEnergy LNG spent approximately $8bn on awarding contracts for two key EPCI packages under the second phase of the NFPS programme.

In March, India’s Larsen & Toubro Energy Hydrocarbon (LTEH) won the main contract for the combined 4A and 4B package, the fourth package of the second NFPS phase, estimated to be worth between $4bn and $5bn. The scope of work includes the EPCI of two large gas compression systems – CP8S and CP4N – each weighing between 25,000 and 35,000 tonnes, as well as compression platforms, flare gas platforms and other associated structures.

LTEH later subcontracted the detailed engineering and design work for the combined 4A and 4B package to Technip Energies.

In December, a consortium comprising Italian contractor Saipem and state-owned China Offshore Oil Engineering Company (COOEC) secured the EPCI contract for the COMP5 package. The contract is valued at $4bn, with Saipem’s share declared at $3.1bn.

Milan-headquartered Saipem said the contract will run for approximately five years. The scope of work includes the engineering, procurement, fabrication and installation of two compression complexes, each comprising a compression platform, living quarters platform, flare platform supporting the gas combustion system and related interconnecting bridges. Each complex will have a total weight of about 68,000 tonnes.

CO2 capture and sequestration

Last year, QatarEnergy also made a significant investment in the development of a large-scale carbon dioxide (CO₂) sequestration complex at Ras Laffan Industrial City (RLIC). Once commissioned, the facility will be capable of capturing 4.1 million t/y of CO₂ from QatarEnergy LNG’s production operations at RLIC.

South Korea’s Samsung C&T won the contract to build the Ras Laffan CO₂ sequestration facility in November, with the project estimated to be valued at between $2bn and $2.5bn.

Building oil output capacity

In addition to advancing its gas production and LNG ambitions, QatarEnergy committed substantial capital expenditure last year towards increasing oil output capacity from its offshore fields.

In August, QatarEnergy selected contractors for the EPC works on a project to maintain and increase production potential at the Bul Hanine offshore oil field. The EPC scope was divided into three main packages, with COOEC awarded the first two packages and Qatari contractor Doha Petroleum Construction Company (Dopet) selected for the third. Additionally, COOEC appointed US-based KBR to provide detailed engineering services for the first and second packages.

Separately, in September, QatarEnergy awarded the main EPC contract for a project to add a fifth natural gas liquids (NGL) train at its NGL complex in Mesaieed Industrial City. Indian contractor L&T Energy Hydrocarbon won the contract.

The project, estimated to be worth $2.5bn, aims to build a fifth NGL train (NGL-5) with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

Looking ahead, QatarEnergy is expected to award EPC contracts this year for another major project to expand oil production capacity at the ageing Maydan Mahzam offshore oil field. The company floated the main tender for the estimated $4bn-$5bn project in 2025. Contractors submitted technical bids for two key EPC packages in September and are preparing to submit commercial bids by 1 March.

The project scope includes the installation of topsides, jackets, subsea cables and umbilicals, as well as brownfield modifications to existing facilities, to maintain the field’s oil production potential over the long term.

https://image.digitalinsightresearch.in/uploads/NewsArticle/15417037/main.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Uncertainty increases for Shell’s $3.9bn gas project in Iraq

    11 June 2026

     

    Uncertainty is increasing for phase two of the Basra Gas Company (BGC) expansion project in Iraq amid fallout from the ongoing regional conflict that started when the US and Israel bombed Iran on 28 February.

    BGC is a joint venture of the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), London-headquartered Shell (44%) and Japan’s Mitsubishi Corporation (5%).

    In September last year, the World Bank’s International Finance Corporation (IFC) signed a $500m investment deal with BGC for the phase two project.

    The entire phase two project is estimated to be worth $3.9bn, according to the IFC, which says the money will be spent between 2025 and 2030.

    Of the $500m deal that was signed in September, $300m will be provided directly by the IFC, and this was approved by the IFC’s board on 14 January this year, less than two months before the US and Israel attacked Iran.

    The subsequent conflict and the disruption to shipping through the Strait of Hormuz have created major obstacles for the project, according to industry sources.

    One source said: “Many Western workers that were specialists in the oil and gas sector have now left the country due to security concerns.

    “On top of this, it was originally assumed that required equipment for the project could be brought in through the Strait of Hormuz and that operational cash flows could be relied upon to help fund the project.”

    Due to the major disruption to shipping crude exports through the Strait of Hormuz, Iraq has had to dramatically reduce oil production in the Basra region, and, as a result, associated gas production has declined as well.

    One source said: “Right now, the state-owned oil companies in Iraq are in the midst of a financial crisis and it is unlikely that they will be able to contribute to this project in the way that was originally envisioned.”

    The main focus of the BGC phase two expansion project is a new liquefied petroleum gas (LPG) refrigeration train to increase the overall capacity of the upstream facility, where LPG and condensate are obtained through processing of the associated natural gas.

    The scope of the project also includes the construction of a new 22-kilometre-long, 132kV overhead transmission line, which will help to meet the energy demand associated with the project.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17178691/main.png
    Wil Crisp
  • PIF to work with Egypt’s TMG on Saudi real estate schemes

    11 June 2026

    Saudi Arabia’s Public Investment Fund (PIF) and Egyptian real estate conglomerate Talaat Moustafa Group (TMG) have signed a memorandum of understanding (MoU) to explore collaboration on mixed-use real estate projects across PIF-owned developments in Saudi Arabia.

    The non-binding agreement covers potential cooperation across the residential, commercial, hospitality and retail sectors, as well as integrated urban environments. PIF said the partnership would accelerate project delivery and value creation across its portfolio.

    TMG, which has nearly 55 years of experience developing large-scale integrated cities, communities and hospitality projects across Egypt, brings technical and managerial capacity to the collaboration. The company previously signed an agreement with Saudi Arabia’s National Housing Company (NHC) in early 2024 to develop more than 27,000 residential units at the Banan City project in Riyadh’s Al-Fursan suburb.

    The MoU also establishes a framework to attract additional investors to future project phases and is intended to expand private sector participation as investors, partners and suppliers.

    PIF said the agreement forms part of its broader strategy to diversify Saudi Arabia’s economy and develop its urban development and livability ecosystem – one of six strategic ecosystems under its 2026-30 strategy. That ecosystem spans housing, retail, office and community spaces and essential services.

    The MoU is subject to the satisfaction of certain conditions precedent and receipt of all necessary regulatory and internal approvals.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17181887/main.png
    Colin Foreman
  • Egypt signs $420m Gabal El-Zeit wind agreements

    10 June 2026

    Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.

    Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.

    The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.

    Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.

    The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.

    The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.

    The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.

    According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.

    The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg
    Mark Dowdall
  • Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC

    10 June 2026

    Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).

    The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.

    The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.

    In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.

    In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg
    Colin Foreman
  • Saudi Arabia and Turkiye sign railway agreements

    10 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.

    Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.

    Agreement scope

    The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.

    More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.

    The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.

    Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.

    Turkish projects

    Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.

    The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17169958/main.gif
    Colin Foreman