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  Kuwait prepares to retender fuel depot project

  26 June 2026

  

   

  State-owned downstream operator Kuwait National Petroleum Company (KNPC) is preparing to retender the contract to develop a new fuel depot in Kuwait’s Al-Mutlaa area and is seeking expressions of interest (EoIs) from contractors.

  KNPC issued the latest EoI request on 24 June, setting a deadline of 2 July for contractors to submit responses.

  Lebanon’s Consolidated Contractors Company (CCC) originally submitted a low bid of KD357.3m ($1.16bn) for the project ahead of a deadline on 22 December 2024, but the contract was never awarded.

  In May last year, MEED reported that the contract had come in 43% over its allotted budget.

  The scope of the latest version of the project has changed compared to the version for which bids were submitted in 2024.

  According to the latest documents circulated by KNPC, the scope of the project’s latest version focuses on four main areas.

  The first is the Matlaa Depot itself, where the new facilities will include:

  • 11 storage tanks
  • Distribution facilities
  • A terminal automation system
  • Road tanker loading and unloading facilities with vapour recovery
  • New offices and facilities buildings
  • Electrical substations
  • Utilities
  • Fire water tanks and pumps
  • Effluent treatment facilities

  The second scope area is a range of utilities for the depot, which include:

  • Overhead lines (with a total approximate length of 20 kilometres)
  • Four transformers
  • Associated works to supply the Matla depot with electricity
  • A 20km water pipeline with a diameter of 14 inches

  The third scope area is two parallel cross-country pipelines. One will have a diameter of 12 inches, the other 10 inches, and both will extend for around 130km.

  These pipelines will transport unleaded gasoline with octanes of 91 and 95 from the tank farm located next to the Mina Abdullah and Mina Al-Ahmadi refineries.

  The scope of work associated with these pipelines will include eight block valve stations as well as a new 14-inch pipeline with a diameter of 14 inches that will tie in with existing 20-inch pipelines to supply the depot with diesel.

  The fourth scope area is focused on developing new infrastructure and modifying infrastructure at the tank farm located next to the Mina Abdullah and Mina Al-Ahmadi refineries.

  This work will include:

  • Tank modification for tie-in works
  • New pumps
  • New flow lines
  • Electrical substations
  • Extensions to existing buildings

  Ahead of the previous tender for the main contract for this project, there were long-running debates within KNPC over the types of fuel to be transported to the depot.

  The facility will store fuels for distribution within Kuwait.

  Some officials wanted fuel that does not meet European import standards to make up a high volume of the fuel transported to the facility, so that more export-quality fuel can be sold to foreign markets.

  Other officials wanted the European-standard fuel to be used more widely in Kuwait due to its lower environmental impact.

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  Wil Crisp
• 
  Etihad Rail to begin passenger rail operations from 30 June

  26 June 2026

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  Abu Dhabi’s Etihad Rail is set to begin passenger rail operations on 30 June 2026, launching an introductory operational phase on the Abu Dhabi-Fujairah route. Tickets are already on sale through the operator’s digital platforms.

  The passenger roll-out marks a major milestone for Etihad Rail, the developer and operator of the UAE’s National Rail Network. Established in 2009, the company was tasked with delivering a roughly 900-kilometre railway linking key cities, ports and industrial hubs from Ghuwaifat to Fujairah on the eastern coast.

  The launch comes less than five years after the UAE announced its ambition to create a national passenger railway under the country’s “Projects of the 50” programme, which aims to support economic diversification and sustainable development.

  According to Etihad Rail, passenger services will be introduced in planned phases through 2026 and 2027:

  • 23 June 2026: Passenger tickets went on sale via the Etihad Rail app and a dedicated booking website (as well as the contact centre for certain fares)
  • 30 June 2026: Introductory operational phase begins with services between Abu Dhabi and Fujairah only
  • 30 September 2026: Passenger rail services formally commence and expand to include Abu Dhabi, Dubai, Al-Dhaid and Fujairah
  • 30 December 2026: Services extend to Al-Dhafra stations
  • 30 March 2027: Services expand further to include Sharjah

  Customers can book tickets up to four weeks before travel. Tickets for new destinations will be released in line with the phased roll-out.

  Once fully operational, Etihad Rail’s passenger service will connect 11 cities and regions across the UAE, supported by a station network that links key urban and economic centres. The station list includes:

  • Abu Dhabi – Mohamed Bin Zayed City Station
  • Dubai – Al-Yalayis Station
  • Sharjah – University City Station
  • Fujairah Station
  • Al-Dhaid Station
  • Al-Dhannah Station
  • Madinat Zayed Station
  • Liwa Station
  • Al-Mirfa Station
  • Al-Sila Station
  • Al-Faya Station

  For the initial Abu Dhabi–Fujairah service starting 30 June, Etihad Rail said fares will start from AED55 for Comfort class and AED120 for Premium class. The operator added that future fares and routes will be announced separately.

  The operator will offer two travel classes:

  • Comfort: guaranteed seating, Wi‑Fi, power at every seat and luggage space
  • Premium: wider reclining seats, extra legroom and complimentary refreshments

  Within each class, passengers can choose from three fare types based on flexibility:

  • Saver: lowest fare for fixed plans; available only via the app, booking website and contact centre
  • Value: includes complimentary seat selection and ticket changes
  • Flex: includes seat selection, ticket changes and refunds

  Etihad Rail said introductory fares are designed to encourage early uptake and will be available for a limited period, with pricing expected to transition “towards a more advanced fare structure and, ultimately, a broader fare framework” as the service matures.

  Etihad Rail’s passenger trains will have a maximum speed of 200km/h and, once fully operational, each train will carry up to 400 passengers, with an expected annual ridership of about 10 million.

  The journey times are as follows:

  • Abu Dhabi to Fujairah: 105 minutes
  • Abu Dhabi to Dubai: 57 minutes
  • Dubai to Fujairah: 69 minutes

  Train features include generous legroom, Wi‑Fi, power at every seat, foldable tray tables, overhead storage, space for larger baggage and accessibility provisions. Station features include clear signage, comfortable waiting areas, staff assistance, accessibility features and parking.

  Etihad Rail said the onboard experience is designed around “comfort and time well spent”, enabling passengers to work, relax or switch off in a “calm and spacious environment” with guaranteed seating, Wi‑Fi and charging points.

  Etihad Rail’s network currently supports freight operations across 11 terminals and four major ports, underpinning supply chain efficiency, emissions reduction and national connectivity.

  The company also pointed to the broader economic value of the UAE Railway Programme, stating that it creates opportunities worth AED200bn, while passenger rail is expected to generate around AED91bn in economic and social benefits over the next 50 years, driven by faster, safer and more efficient travel.

  Etihad Rail also differentiated the new passenger service from the UAE’s future high-speed rail plans, saying passenger rail is intended to connect more communities across the country with an affordable and comfortable service, while high-speed rail is being designed for “very fast journeys between central points of our major cities”, describing the two as “different products and services designed for different types of journeys”.

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  Yasir Iqbal
• 
  Saipem sells Saudi jack-up drilling business to ADES for $285m

  26 June 2026

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  Italian oil and gas contractor Saipem has signed a binding agreement to sell its Saudi Arabia-based shallow-water drilling subsidiary to Al-Khobar-based ADES Holding Company for $285m.

  Under the deal, ADES Saudi, an indirect subsidiary of Saudi Exchange-listed ADES Holding, will acquire Saudi Arabian Saipem, which operates a fleet of five jack-up rigs.

  The fleet includes three owned rigs – Perro Negro 7, Perro Negro 8, and Perro Negro 10 – as well as two leased rigs, Perro Negro 11 and Perro Negro 13.

  The transaction is structured on a debt-free, cash-free basis and will be settled entirely in cash upon closing. Completion is expected in the third quarter of 2026, subject to customary regulatory approvals and other closing conditions.

  The purchase of Saudi Arabian Saipem by ADES Holding follows the company’s takeover of Dubai-based, Oslo-listed Shelf Drilling in November last year, in a transaction valued at $379m. Following the completion of the cash merger, Shelf Drilling was wholly delisted from the Oslo Stock Exchange.

  The combined Shelf Drilling-ADES entity has been operating as a strong global player in shallow-water drilling with a fleet of 83 offshore jack-ups, including 46 premium jack-ups and 40 onshore rigs, across the world’s most prolific basins. The acquisition expanded ADES Holding’ global footprint from 13 to 19 countries, allowing entry and deeper operational integration into Southeast Asia, India, West Africa, the North Sea and the broader Mediterranean.

  Saudi Arabian Saipem generated revenues of SR636m ($170m) during 2025, highlighting the scale of the business being transferred.

  As part of the agreement, Saipem will retain operational access to the Perro Negro 10 rig through a bareboat charter arrangement after the sale closes. The arrangement will allow the company to continue fulfilling existing commitments in Mexico without disruption.

  The divestment aligns with Saipem’s broader industrial strategy of reducing exposure to mature shallow-water drilling markets and concentrating resources on deepwater and harsh-environment offshore projects, where technical complexity and barriers to entry are generally higher.

  These segments have attracted growing investment in recent years as operators pursue offshore developments in regions such as the North Sea, Brazil, West Africa and the US Gulf of Mexico.

  For ADES, the acquisition further expands its presence in the Middle East offshore drilling market, particularly in Saudi Arabia, one of the world’s largest offshore jack-up rig markets, driven by activity from Saudi Aramco.

  Saipem said proceeds from the transaction will be used in accordance with the objectives outlined in its industrial plan. The Milan-listed company was advised on the transaction by Moelis & Company as financial adviser and Clifford Chance, together with AS&H Clifford Chance, as legal counsel.

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  Indrajit Sen
• 
  Contractor wins €770m Italy-Tunisia power link deal

  25 June 2026

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  Zurich-headquartered Hitachi Energy has won a contract worth about €770m ($873m) to build converter stations for the Elmed electricity interconnection between Italy and Tunisia.

  The contract was awarded by Italian transmission system operator (TSO) Terna and Societe Tunisienne de l’Electricite et du Gas (Steg).

  The award completes the procurement process for the first high-voltage direct current (HVDC) submarine electricity link between Europe and North Africa.

  The project will connect Partanna in Sicily with Mlaabi in Tunisia’s Cap Bon region. It will have a transmission capacity of 600MW and extend for about 220 kilometres, most of it via submarine cable beneath the Strait of Sicily.

  The converter stations were procured under a joint tender issued by Terna and Steg in 2023 through the Official Journal of the European Union.

  The scope covered the design, supply and construction of the two converter stations.

  Hitachi Energy will provide the HVDC system, including converter valves, the MACH digital control platform, power transformers and high-voltage switchgear. Its scope also includes system studies, engineering, installation supervision and commissioning.

  Italy’s D’Agostino Costruzioni Generali will carry out the civil works for the converter station in Partanna. Egypt’s Orascom Construction will undertake the civil works, electromechanical installations and auxiliary systems for the Mlaabi station.

  The Elmed project is designed to strengthen electricity interconnection between Europe and North Africa and improve energy security in the Euro-Mediterranean region. It is also intended to support the integration of renewable energy into the electricity grid.

  In September 2025, MEED reported that Italy’s Prysmian Group had won a €460m contract to deliver the connecting cable that will run between the Partanna and Mlaabi substations. It will cross the Strait of Sicily at depths of up to 800 metres. Installation will be carried out using the cable‑laying vessel Monna Lisa.

  The total investment in the interconnection amounts to €1.42bn. The European Commission has allocated €307m through the Connecting Europe Facility (CEF) grant programme managed by CINEA.

  It is the first time the European Union has financed an energy infrastructure project involving a non-member country.

  The Tunisian section of the project is also supported by the World Bank, the European Investment Bank, the European Bank for Reconstruction and Development and KfW.

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  Mark Dowdall
• 
  Firms prepare Hudayriat East PPP tunnels advisory bids

  25 June 2026

  

   

  Abu Dhabi’s Modon Infrastructure, formerly Gridora, has tendered a contract for technical advisory services for the construction of two underwater tunnels connecting the eastern side of Hudayriat Island with mainland Abu Dhabi.

  Consultants have until 26 June to submit their proposals.

  The project includes the construction of a 4.8-kilometre (km) highway, with four lanes in each direction, connecting Hudayriat Island to Mussafah 8th Street.

  The project will be delivered on a public-private partnership (PPP) basis in coordination with the Abu Dhabi Department of Municipalities and Transport and the Abu Dhabi Investment Office.

  The contract term is expected to be 25 years.

  The latest infrastructure development in Abu Dhabi follows Modon Infrastructure’s invitation in May for firms to register for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will also be developed on a PPP basis.

  Modon Infrastructure will act as the lead developer, holding the majority equity stake in the project company. It will award the engineering, procurement and construction contract, as well as the operations and maintenance services and advisory appointments.

  The second phase of the MIPP involves the construction of about 11km of highways, including a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

  The scope also covers the construction of three interchanges: the E20, E10 and Dumbbell interchanges on Al-Sammaliyyah Island.

  The project includes several major structures, such as the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange with cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

  Further key elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. The project will be completed with another tunnel connecting Bilrimaid Island to Um-Yifeenah Island.

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

  

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  Yasir Iqbal