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• 
  Consortiums submit bids for Sadara cogeneration plant

  11 September 2026

  

   

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  At least three consortiums have submitted bids for the contract to develop and operate a cogeneration steam and power plant catering to the Sadara petrochemicals complex in Saudi Arabia.

  The planned independent steam and power plant (ISPP) project will have a capacity for 400MW-450MW of combined-cycle electricity generation and 550-700 tonnes an hour of steam.

  According to sources, bids were submitted for the contract at the end of August.

  The consortium bidders include: 

  • Abu Dhabi National Energy Company (Taqa) / Samsung C&T (South Korea)
  • Al-Jomaih Energy & Water (Saudi Arabia) / Albawani (Saudi Arabia) / Sepco 3 (China)
  • Acwa (Saudi Arabia), Korea Electric Power Corporation (Kepco) / Doosan Enerbility (South Korea)

  Sadara Chemical Company (Sadara) is the project client. It is the downstream joint venture of Saudi Aramco and US-headquartered Dow Chemical.

  The estimated $500m project includes construction of a power plant, substations, a seawater intake system and associated switchyards and switchgear.

  The project will also include gas turbines and a back-pressure steam turbine, as well as facilities for steam production.

  In 2024, MEED exclusively reported that Sadara had prequalified potential bidders for the project. It is understood that the request for proposals was issued towards the end of last year.

  The first units at the $20bn Sadara petrochemicals complex in Jubail began production in 2016, and the complex became operational in 2017.

  The Sadara complex is designed to produce more than 3 million tonnes a year (t/y) of chemicals and performance plastics, including polyurethanes, propylene oxide, propylene glycol, elastomers, polyethylene, glycol ethers and amines.

  Construction is also continuing on the Najim cogeneration facility, which will supply the Amiral petrochemicals complex with up to 475MW of power and approximately 452 tonnes an hour of steam.

  Previously known as the Amiral cogeneration independent steam and power plant, the project is being developed by a team comprising Abu Dhabi National Energy Company (Taqa) and Japanese power generation company Jera.

  South Korean contractor Samsung C&T is the engineering, procurement and construction contractor for the project.

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  Mark Dowdall
• 
  UAE plans 150km Boring Company tunnel network

  11 September 2026

  The UAE plans to build more than 150 kilometres of underground tunnel with US tunnelling firm The Boring Company, in a programme backed by a $3bn funding round the UAE led.

  The Series D round values the Boring Company at $23bn, about four times the $5.7bn it was worth after a 2022 funding round. The UAE and affiliated investment entities led the round, which will accelerate a partnership to deploy underground infrastructure across the UAE, the firm said.

  The 150km target marks a substantial expansion of the company’s footprint in the country, extending work already committed through the Dubai Loop project. It contrasts sharply with what has been contracted so far. The Boring Company has signed a construction contract with Dubai’s Roads & Transport Authority (RTA) for the pilot phase of Dubai Loop, covering a 6.4km route and four stations linking Dubai International Financial Centre (DIFC) and Dubai Mall. The pilot is expected to cost about AED565m ($154m), with tunnelling due to begin in the second half of this year.

  The 150km figure therefore represents an ambition for the wider partnership rather than a contracted volume, with the bulk of the network yet to be tendered, designed or awarded. No timeframe has been attached to the target.

  A second Dubai Loop phase will connect Dubai World Trade Centre and DIFC with Business Bay, extending the tunnels to 22km across 19 stations. The total cost across both phases is expected to be about AED2bn ($545m), with completion scheduled within three years. The pilot route is projected to carry about 13,000 passengers a day, rising to about 30,000 a day across the full route.

  Other investors in the round include Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal Holding and Baron Capital. The proceeds will also fund hiring, the scaling of the company’s Loop transit systems in the US cities of Las Vegas and Nashville, and further development of its Prufrock tunnel-boring machines, which it says can operate in both soft ground and hard rock.

  The RTA and the Boring Company signed a memorandum of understanding in February last year to explore developing the Dubai Loop, and the construction contract followed in February this year. In May, US engineering firm Parsons was appointed as programme manager for the pilot phase, with a scope covering independent design verification, permitting and multidisciplinary design reviews.

  The appointment comes amid a broader shift towards underground construction across the Gulf, as metro, sewerage and highway works in the UAE, Saudi Arabia and Qatar increasingly default to tunnelling.

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  Yasir Iqbal
• 
  Heisco wins $359m oil contract in Kuwait

  11 September 2026

  Kuwait-based Heavy Engineering Industries & Shipbuilding Company (Heisco) has been awarded a contract worth KD111.05m ($359m) to develop storage tanks for Kuwait’s Jurassic Light Oil (JLO) export facilities, according to a stock market filing.

  The scope of the contract includes civil, mechanical, electrical and instrumentation works, as well as engineering, procurement and construction (EPC) services for the tanks.

  The contract was awarded by India’s Larsen & Toubro (L&T), the main contractor for a broader project to develop JLO storage and export facilities in Kuwait, as well as upgrade Kuwait Oil Company’s (KOC’s) existing export network.

  The $979.2m main contract for this broader project was awarded to L&T on 15 July.

  The contract for Heisco’s scope of work has a time period of 42 months, according to its stock market filing.

  Oil crisis

  Kuwait’s oil and gas sector is currently in crisis due to the regional war that started after the US and Israel attacked Iran on 28 February.

  The war has severely disrupted exports through the Strait of Hormuz, which Kuwait relies on in order to ship crude exports.

  It has also disrupted imports of equipment and materials for projects, raising project costs.

  Sheikh Nawaf Saud Al-Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation (KPC), the country’s national oil company, has described the current conflict as the biggest oil crisis the country has faced since Iraq’s 1990 invasion.

  Despite the significant reduction in crude exports, Kuwait’s state-owned oil companies have continued to tender some projects.

  Export facilities

  The scope of work under the contract awarded to L&T in July includes the EPC of six new crude oil storage tanks, each with an operating capacity of 618,000 barrels, along with associated facilities, the Mumbai-headquartered company said on 29 July.

  The project also involves “the installation of new pipelines and comprehensive upgrades to Kuwait’s existing crude loading and export network, to seamlessly accommodate increased production and enhance the country’s crude handling capabilities”, the Bombay Stock Exchange-listed company said.

  L&T also said that the contract will be executed on a lump-sum turnkey basis.

  Only two companies submitted bids for the contract in October last year:

  • L&T (India): KD303.5m ($988m)
  • Petrofac (UK): KD310.6m ($1.01bn)

  Following bid submission, KPC discussed the potential cancellation of the tender due to bids coming in significantly over budget and Petrofac becoming ineligible to win contracts in Kuwait.

  The contractor was temporarily barred from participating in tenders in Kuwait’s oil and gas sector in December last year.

  Petrofac received the ban after the company announced it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa region.

  Despite discussions about cancelling the tender, KPC ultimately decided to proceed with the award process because it considered the project a high priority.

  One source previously told MEED: “Around the same time, projects worth around $8bn were cancelled because of bids coming in over budget, but this one has gone ahead because KPC sees it as an essential project.”

  The project was originally tendered in November 2024, with a bid deadline of 1 December the same year. The bid deadline was extended several times before bids were ultimately submitted.

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  Wil Crisp
• 
  Saudi Arabia tenders next phase of King Saud Air Base

  10 September 2026

  

   

  Saudi Arabia’s Ministry of Defence & Aviation has started the tendering process for the next phase of the King Saud Air Base in the kingdom.

  Contractors have been given until 20 October to submit their bids.

  The scope of works covers the construction of the headquarters building, administrative buildings, operations and maintenance area, police camp facilities, weapons and ammunition area, residential facilities, airfield facilities and other associated facilities.

  The project duration is three years.

  The air base spans an area of 383 square kilometres (sq km) in the Hafr Al-Batin area of the kingdom’s Eastern Region.

  Contracts worth about SR6.6bn ($1.8bn) for the project’s first phase were awarded early last year.

  The joint venture of local firms Isam Khairi Kabbani Group and Alfanar Projects was appointed as the main contractor for the first package, which was worth about SR2.9bn ($783m).

  The consortium comprising Riyadh-based Albawani, Shibh Al-Jazira Contracting and Kuwait’s Alghanim International won the second package, worth about $1bn.

  According to GlobalData, Saudi Arabia’s defence budget is projected to grow from $68bn in 2027 to $86.3bn by 2031, representing a compound annual growth rate (CAGR) of 6.1%.

  ---

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

  Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

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

  > AGENDA: Gulf nuclear revival takes shape > MARKET FOCUS: Kuwait keeps dealmaking alive under fire > INDUSTRY REPORT: Gas processing takes centre stage in Mena region > INTERVIEW: Emsteel persists with business productivity and efficiency > TUNNELS: The Gulf’s next construction boom is happening underground

  To see previous issues of MEED Business Review, please click here

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  Yasir Iqbal
• 
  Sabic awards $3.47bn contract for ammonia and urea complex

  10 September 2026

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  Sabic Agri-Nutrients, an affiliate of chemicals giant Saudi Basic Industries Corporation (Sabic), has awarded the main engineering, procurement and construction (EPC) contract for its seventh project in Saudi Arabia’s Jubail Industrial City, which will significantly expand its ammonia and urea production capacity.

  South Korea’s Samsung E&A has won the contract for the project known as San VII, valued at $3.465bn, Sabic Agri-Nutrients said in a filing with the Saudi Exchange (Tadawul) on 10 September. It added that its board approved the final investment decision on the project on 9 September.

  The San VII project in Jubail Industrial City, in the kingdom’s Eastern Province, will have a production capacity of about 1.2 million metric tonnes a year (t/y) of conventional ammonia and 2.6 million metric t/y of urea. The complex will also feature a post-combustion carbon capture unit.

  Sabic had earlier announced receiving approval for feedstock allocation from the Saudi Ministry of Energy in March for the project, which will expand Sabic Agri-Nutrients’ urea production capacity by 54%, from approximately 4.8 million metric t/y to 7.4 million metric t/y.

  The San VII project replaces a previously planned low-carbon or blue ammonia project with a conventional ammonia and urea facility. The project, which was previously known as San VI, was slated to produce 1.2 million metric t/y of low-carbon ammonia and 1.1 million metric t/y of urea and specialised agri-nutrients.

  Before being restructured into its current form, MEED reported in March last year that Samsung E&A was the frontrunner to win the main EPC contract for the project.

  Sabic Agri-Nutrients expects construction on the San VII project to begin in Q4 2026, with commissioning scheduled to start in Q3 2030. The commissioning period will last four months, ahead of the start of commercial production and completion of the project in Q4 2030.

  The San VII project “is also expected to represent a significant step toward enhancing the company’s competitiveness and sustainability through the integration of advanced carbon capture technologies and the reduction of emissions intensity across its operations. This will contribute to reducing the carbon footprint of its products, supporting the company’s sustainability and carbon neutrality ambitions”, Sabic Agri-Nutrients said in its Tadawul filing.

  “The project is considered one of the key pillars of the company’s 2040 strategy, which aims to strengthen the kingdom’s position in the agricultural nutrients export market and contribute to global food security, in line with the objectives of Saudi Vision 2030,” it added.

  Sabic Agri-Nutrients

  Formerly Saudi Arabian Fertiliser Company (Safco), Sabic Agri-Nutrients was the first petrochemicals company to be established in Saudi Arabia in 1965.

  Sabic Agri-Nutrients, in which Sabic owns the majority 50.1% share, is one of the leading global fertiliser producers, with a portfolio that includes urea, ammonia, phosphate and other specialised products.

  For the second quarter of 2026, the company reported a sharp decline in profitability, primarily driven by a drop in revenue and lower sales volumes compared with both the previous quarter and the same period last year.

  Sabic Agri-Nutrients saw its net profit fall by 64.25% to $101m, compared with $282.66m in the second quarter of last year, and by 69.11% on a quarter-on-quarter basis.

  The company’s Q2 revenues were down by 26.65% year-on-year at $643m, and by 16.11% quarter-on-quarter. Earnings before interest, taxes, depreciation and amortisation (Ebitda) in Q2 stood at $165m, a drop of 51% year-on-year and 55% quarter-on-quarter.

  Sabic Agri-Nutrients further said its profitability suffered from a 31% quarterly decline in agri-nutrient sales volumes, recorded at 960,000 metric tonnes. Although global supply chain disruptions triggered a 27% price increase for agri-nutrients during the second quarter, the short-lived macro-driven bump was not enough to fully offset the slide in sales volumes.

  In December 2022, Saudi Aramco and Sabic Agri-Nutrients delivered the world’s first commercial-grade blue ammonia cargo to South Korea. Locally based Lotte Fine Chemicals received the shipment of 25,000 metric tonnes of independently certified blue ammonia in the southern city of Ulsan.

  Following that milestone, the company struck several deals in 2023 with customers worldwide to supply low-carbon ammonia and urea.

  In April 2023, Sabic Agri-Nutrients shipped the first independently certified low-carbon ammonia from Saudi Arabia to Japan, where it is being used as fuel for power generation. The ammonia cargo was produced with feedstock from Saudi Aramco, sold by Aramco Trading Company to Fuji Oil Company and transported by Mitsui OSK Lines.

  After that, Sabic Agri-Nutrients shipped 5,000 metric tonnes of low-carbon ammonia in May 2023 to a customer in India, Indian Farmers Fertiliser Cooperative.

  The company then shipped 5,000 metric tonnes of low-carbon ammonia to Taiwan Fertiliser Company in June 2023.

  Sabic Agri-Nutrients’ latest shipment is believed to have been in July 2023, when it shipped a 2,700-tonne cargo of low-carbon urea to Ravensdown, a New Zealand farmer-owned agricultural co-operative company.

  Separately, Sabic Agri-Nutrients announced signing a memorandum of understanding (MoU) with Maaden Integrated Fertiliser Company (MIFC) on 18 August to explore potential collaboration opportunities.

  The non-binding MoU, which is valid for three years, “aims to establish a general framework for cooperation between the two parties in developing and investing in opportunities within the integrated value chain of agri-nutrients, including the production and manufacturing of value-added products”, Sabic Agri-Nutrients said in a Tadawul disclosure.

  MIFC is a limited liability company wholly owned by Saudi Arabian Mining Company (Maaden). MIFC serves as the holding entity for all subsidiaries within Maaden’s phosphate business vertical.

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  Indrajit Sen