Adnoc and Ewec sign $10bn gas supply deal
21 January 2025
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Adnoc Gas has signed a 10-year flexible natural gas sales and purchase agreement worth $10bn with Emirates Water & Electricity Company (Ewec), the sole procurer and supplier of electricity and water in Abu Dhabi.
Gas-fired power plants account for about 67% of Abu Dhabi's current installed capacity, with renewable energy and nuclear power accounting for 12% and 19%, respectively.
Ewec expects to rapidly expand its renewable energy capacity in line with its net-zero target.
Othman Al-Ali, CEO of Ewec, said the agreement ensures a stable and flexible supply of natural gas that is pivotal to enabling the UAE’s energy transition.
The firms said gas-fired power plants provide important transitional capacity, enabling the continued integration of large-scale renewable and clean energy.
“Because gas-fired plants can start and stop quickly and adapt their output to real-time demand and supply changes, they complement and enable the large-scale integration of solar power, offering crucial flexibility during peak demand periods,” the firms added.
Fatema Al-Nuaimi, CEO of Adnoc Gas, said the 10-year strategic agreement “supports the rise of digitisation, the increasing need for resilient connectivity and growing technology adoption across the UAE’s economy, while advancing the nation’s net-zero ambitions”.
She added that by collaborating across the industrial value chain to leverage Abu Dhabi’s vast gas reserves, “we are working to ensure the UAE’s self-sufficiency while continuing to fuel over two-thirds of the nation’s industries, driving sustainable economic growth and diversification”.
Tender proceedings are under way for two new gas-fired power plants in Abu Dhabi. The Taweelah C combined-cycle gas turbine plant has a capacity of 1,500MW, and the Madinat Zayed open-cycle gas turbine plant will also have a capacity of up to 1,500MW.
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Property prices in Dubai rebounded in February following a decline in January. Average property prices hit a record high of AED1,505 ($410) per square foot, reflecting a month-on-month increase of 1.41% or a rise of AED20.94 compared to January 2025, according to a statement from property agent Better Homes.
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Siemens Energy wins $1.6bn Saudi deal
13 March 2025
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
The Rumah 2 and Nairiyah 2 CCGT plants will each have a capacity of roughly 1,800MW, requiring an estimated investment of $2bn each.
The value of the contract Siemens Energy won is $1.6bn.
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The project includes long-term maintenance agreements to support the plants’ operational reliability over the next 25 years, Siemens Energy said.
It added: “Core components for the power plants will be manufactured at the Siemens Energy Dammam Hub, which is currently expanding to increase local production capacity and support Saudi Arabia’s energy sector.”
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Photo credit: Siemens Energy
READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
> AGENDA 1: Chinese firms dominate region’s projects market> AGENDA 2: China construction at pivotal juncture> UPSTREAM 1: Offshore oil and gas sees steady capex> UPSTREAM 2: Saudi Arabia to retain upstream dominance> DIRIYAH: Diriyah CEO sets the record straight> SAUDI POWER: Saudi power projects hit record high> AUTOMOTIVE: Saudi Arabia gears up to lead Gulf’s automotive sector> EGYPT: Egypt battles structural issues> GULF PROJECTS INDEX: Gulf hits six-month growth streak> CONTRACT AWARDS: High-value deals signed in power and industrial sectors> ECONOMIC DATA: Data drives regional projectsTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/13483115/main.jpg -
Chinese builders go global
13 March 2025
Commentary
Colin Foreman
EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
That success has created contractors that are now the largest construction companies on the planet. According to GlobalData, seven Chinese companies are among the top 10 largest construction companies in the world, with China State Construction Engineering Corporation topping the list with revenues of $320bn.
In the Middle East and North Africa, Chinese contractors dominated in 2024 by securing $90bn of the $347bn of contracts awarded, according to data from MEED Projects.
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Many international contractors exited the region over the past decade, which has meant Chinese contractors have had little competition as they stepped in to fill the void and deliver crucial projects.
On top of exploiting the shifting competitive landscape, Chinese successes have been able to meet the budgetary requirements of many projects, offering cost-effective solutions and even providing financing.
At the same time, the maturing Chinese economy has driven contractors to seek opportunities abroad. With a slowing domestic real estate market, they are turning to international markets for growth. The Middle East presents an attractive option due to its wide range of projects, backed by financially secure clients and governments.
The scale of the contractors and the large number of players yet to meaningfully venture overseas means they possess the ability to grow even further in the Middle East and North Africa as the region continues to press ahead with large-scale projects that require vast resources.
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READ THE MARCH MEED BUSINESS REVIEW – clck here to view PDFChinese contractors win record market share; Cairo grapples with political and fiscal challenges; Stronger upstream project spending beckons in 2025
Distributed to senior decision-makers in the region and around the world, the March 2025 edition of MEED Business Review includes:
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