meed-logo

line1 line2 line3
SIGN IN / REGISTER

Adnoc moves closer to Shah gas plant expansion contract

4 November 2025

Abu Dhabi National Oil Company (Adnoc) is understood to be close to making a decision regarding the engineering, procurement and construction (EPC) contract award on a major project to expand the Shah gas processing plant in Abu Dhabi.

The Shah gas plant is operated by Adnoc Group subsidiary, Adnoc Sour Gas. The project aligns with Adnoc Sour Gas’ objective to increase the Shah gas plant’s sour gas processing capacity to 1.85 billion cubic feet a day (cf/d).

MEED reported in early October that China Petroleum Engineering & Construction Company (CPECC) was the lowest bidder for the Shah gas plant expansion project, based on the initial evaluation of bids.

According to sources, Adnoc is in advanced discussions with CPECC for the project contract, with the Chinese contractor said to be “largely aligned with the client’s price expectations”.

“At this point, CPECC is leading the race to bag the [Shah gas plant expansion project] contract, so let’s wait and watch,” said one source.

Sources add that Adnoc remains in talks with other bidders, particularly Italian contractor Tecnimont, which is said to be another “strong contender” for the project contract.

The contractors that submitted bids for the Shah gas plant expansion project include:

  • China Petroleum Engineering & Construction Company
  • Petrofac (UK)
  • Saipem (Italy) / Samsung E&A (South Korea)
  • Tecnimont (Italy)

MEED previously reported that contractors submitted technical bids by 13 May. Adnoc Sour Gas received commercial bids from contractors by the deadline of 31 July.

Adnoc Sour Gas is understood to have issued the main EPC tender for the Shah gas plant expansion project in December last year.

The company initially planned to execute the project using a feed-to-EPC model. This process requires the operator to shortlist contractors for the project’s front-end engineering and design (feed) work, with the firm that submits the best feed proposal being awarded the contract for the EPC works.

Contractors expressed interest in participating in the feed-to-EPC competition for the Shah gas plant scheme in September 2023.

Adnoc Sour Gas later cancelled the feed-to-EPC model and opted for a conventional project execution approach, according to sources.

A fresh feed tender for the project was issued “during the last quarter” of 2023, sources said at the time.

MEED previously reported that UK-headquartered Wood Group won the project’s feed work contract in January 2024.

Shah gas plant expansion

The Shah gas plant, located 210 kilometres southwest of the city of Abu Dhabi, came online in 2015 with a processing capacity of 1.28 billion cf/d.

The facility draws associated gas produced from the onshore Shah oil field, which has an output capacity of 70,000 barrels a day. In January, Adnoc announced that the Shah field had achieved a carbon intensity of 0.1 kilogrammes of carbon dioxide (CO2) equivalent per barrel of oil equivalent.

The field reached this milestone through optimised field development and the deployment of digitalisation, artificial intelligence (AI) and other technologies to maximise efficiencies and minimise emissions. The field also benefits from Adnoc’s electrification of its onshore assets, which are powered by nuclear and solar energy sources.

To increase the Shah gas plant’s output to a potential 1.45 billion cf/d, Adnoc Sour Gas undertook the Optimum Shah Gas Expansion (OGSE) project in 2021. Italian contractor Saipem was awarded a $510m contract in June of that year to execute EPC works on the project. The OGSE project is now in the commissioning stage.

Adnoc Sour Gas expects to raise the asset’s production potential to 1.85 billion cf/d through the Shah gas plant expansion project.

Shah gas plant CO2 recovery

Last year, Adnoc Sour Gas undertook a project to capture and transport CO2 emissions from the facility’s operations.

The project aimed to recover, dehydrate, compress and transport CO2 from the Shah gas plant’s operations to the Bab onshore oil field for enhanced oil recovery (EOR).

However, Adnoc Sour Gas suspended the Shah gas plant CO2 recovery project, with sources expecting it could be revived this year.

The Shah gas plant CO2 recovery project is expected to deliver up to 1.37 billion cf/d of CO2 with a 95.5 mole percentage. The CO2 recovery facilities are to be designed for a target availability of 95%, with less than 400 parts per million by volume hydrogen sulphide and less than 20 pounds of water per million cubic feet a day.

The recovered CO2 will be supplied through an approximately 125-kilometre pipeline to the Bab field for re-injection into the wells at 210-barg pressure for EOR purposes.

Adnoc Sour Gas has stipulated the use of Shell’s Cansolv CO2 capture licensed technology by the EPC contractor for the project.

Adnoc Sour Gas production

Adnoc Sour Gas, in which Adnoc Group holds the majority 60% stake and US energy company Occidental Petroleum (Oxy) holds the other 40%, currently produces 1.28 billion cf/d of gas and 4.2 million tonnes a year of sulphur from the Shah onshore sour gas field.

The Shah gas production complex in Abu Dhabi is understood to be the world’s largest ultra-sour gas facility. It includes gas processing units and a sulphur granulation plant that features four of the largest sulphur recovery units in the world.

Adnoc Sour Gas processes more than 1 billion cf/d of ultra-sour gas, with a hydrogen sulphide content of more than 23%, from a single, integrated field-gas plant development. The company accounts for about 5% of global production.

About 17,000 tonnes of granulated sulphur produced by Adnoc Sour Gas from the Shah and Habshan fields are transported by Etihad Rail to Adnoc’s Ruwais terminal every day. From there, it is exported to markets worldwide for use in fertiliser manufacturing.

Adnoc Sour Gas also produces condensates, ethane and natural gas liquids. All products, except sulphur, are delivered to Adnoc Group companies for further processing or distribution to domestic consumers.

https://image.digitalinsightresearch.in/uploads/NewsArticle/15008069/main1011.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Frontrunner emerges for Saudi sewage treatment project

    13 March 2026

     

    A consortium led by China’s Jiangsu United Water Technology has emerged as the frontrunner for a contract to build and upgrade two sewage treatment plants in Saudi Arabia, according to sources.

    The contract covers the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11), part of the next phase of National Water Company’s (NWC) long-term operations and maintenance (LTOM) sewage treatment programme.

    The consortium comprising United Water, Prosus Energy (UAE) and Armada Holding (Saudi Arabia) offered “the lowest tariff” for the project, sources told MEED.

    It is understood that Turkey’s Kuzu has made the next-lowest bid.

    The development, estimated to cost about $211m, will have a combined capacity of about 440,000 cubic metres a day (cm/d).

    In February, MEED exclusively reported that six bidders were competing for the contract.

    The other companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • VA Tech Wabag (India)
    • Aguas de Valencia (Spain)

    LTOM11, also known as the North Western A Cluster, forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component.

    The main contract was tendered last year, with an award initially expected by the end of 2025.

    It is now understood that NWC is preparing to offer the main contract in the second quarter.

    As previously reported, Saudi Arabia’s NWC is also evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.

    Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    In January, the same United Water-led consortium won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    That project includes the rehabilitation and operation of nine sewage treatment plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces

    NWC is also preparing to tender a contract for the construction of 10 sewage treatment plants as part of package 14 of the programme.

    The final details of the Eastern A Cluster (LTOM14) package are being finalised, with a tender likely to be issued in March or April, sources told MEED.

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

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968035/main.jpg
    Mark Dowdall
  • Medina tenders Sikkah Al-Hadid PPP project

    13 March 2026

    Saudi entities including Al-Madinah Regional Municipality, in collaboration with the Ministry of Municipalities & Housing and the National Centre for Privatisation & PPP (NCP), have floated a request for proposal (RFP) notice for the development of the Sikkah Al-Hadid project.

    The project will be procured through build-own-operate-transfer contracts with a 50-year duration, using a public-private partnership (PPP) model.

    The deadline for bid submission is 23 June.

    The project will be located to the west of Medina on an 84,657-square-metre (sq m) site. 

    It includes a four-storey medical centre with a capacity of up to 200 beds and a shopping mall offering retail, food and beverage, and other entertainment facilities.

    In January last year, NCP asked firms to express their interest and prequalify for a contract to develop two mixed-use developments in Medina, which included the Sikkah Al-Hadid project and the Dhul Hulaifah project.

    The Dhul Hulaifah project will be built on a 30,112 sq m site located six kilometres from the Prophet’s Mosque. 

    The development will consist of a four-star hotel integrated with retail and healthcare facilities.

    MEED previously reported that Saudi Arabia had announced a P&PPP pipeline comprising 200 projects across 16 sectors.

    This pipeline aims to attract local and international investors and ensure their readiness to participate in the schemes tendered to the market.

    The initiative comes as the kingdom strives to increase the attractiveness of its economy and raise the private sector’s contribution to GDP.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15968021/main.jpg
    Yasir Iqbal
  • Fuel storage facility attacked in Bahrain

    13 March 2026

    Register for MEED’s 14-day trial access 

    Fuel storage tanks at a facility on Bahrain’s Muharraq Island were targeted in an attack attributed to Iran, according to a statement from Bahrain’s Interior Ministry.

    The ministry put out an alert for people in surrounding neighbourhoods “to remain in their homes, close windows and ventilation openings, as a precautionary measure against possible exposure to smoke”.

    Videos of the incident, which took place on 12 March, showed a large fire emitting black smoke. The fire was later extinguished by teams of firefighters.

    Bahrain’s international airport is also located on Muharraq Island.

    Iran has been firing missiles at a range of targets in nearby countries since it was attacked by the US and Israel on 28 February.

    On 11 March, a similar attack on fuel storage tanks in Oman led to the closure of some terminals at the port of Salalah.

    Footage recorded by vessel crews at the port, which is the largest in the country, showed explosions and a large fire.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15963333/main.png
    Wil Crisp
  • Bahrain contacts engineering companies over Sitra refinery damage

    13 March 2026

    Register for MEED’s 14-day trial access 

    Bahrain’s national oil and gas company Bapco Energies is in touch with international engineering companies about damage done to the Sitra refinery by Iranian strikes, according to industry sources.

    In a statement on 9 March, Bapco Energies said its decision to issue the force majeure notice followed “the recent attack on its refinery complex”, without providing details.

    Bapco Energies is yet to share full details about the extent of the damage caused to the refinery, sources said.

    One source said: “Bapco has been corresponding with several companies with regard to the damage. It is being careful not to share confidential information, but it has reached out.”

    Prior to Bapco’s 9 March statement, the Sitra refinery was hit by a strike earlier in the day.

    That strike on the Sitra refinery was the second strike on the complex in days.

    Iranian missiles hit the facility on 5 March, resulting in parts of the refinery being engulfed in flames.

    Iran has been firing missiles at a range of targets in nearby countries since it was attacked by the US and Israel on 28 February.

    In November last year, MEED reported that Bapco Energies was in the final stages of ramping up volumes processed by new units that were installed as part of the Bapco Modernisation Programme (BMP).

    The project at the Sitra refinery in Bahrain is estimated to have been worth $7bn and was inaugurated by Bahrain’s King Hamad Bin Isa Al-Khalifa in December 2024.

    At the time, the companies involved in the engineering, procurement and construction (EPC) contract for the project were still working on the site to assist with efforts to increase volumes.

    Bapco Energies awarded the main $4.2bn contract to perform EPC works on the BMP to a consortium led by France’s Technip Energies in February 2018.

    The consortium also included Spain’s Tecnicas Reunidas and South Korea’s Samsung E&A.

    Technip Energies also performed the project’s front-end engineering and design work. US oil and gas producer Chevron acted as a consultant on the BMP, while Australia-based Worley was the project management consultant.

    In March 2024, after a series of setbacks and delays, France’s Total Energies was brought in to support Bapco in “optimising” the project.

    The BMP is central to Bahrain’s Vision 2030 economic development strategy, and Bapco has said that it is crucial to boosting the country’s long-term downstream potential.

    The BMP was originally expected to reach mechanical completion in 2023, with operations set to begin in 2024.

    The core objective of the BMP was to upgrade the Sitra refinery – Bahrain’s only oil refining asset, which is 90 years old.

    One of the key units to be built as part of the BMP was a residual hydrocracking unit (RHCU) powered by technology licensed from US-based Chevron Lummus Global. The BMP team has built a two-train RHCU with a capacity of 65,000 barrels a day.

    The Sitra refinery includes seven crude distillation units (CDUs) and vacuum distillation units (VDUs) as part of the BMP.

    The new 225,000 b/d integrated crude and vacuum unit replaced CDUs 1, 2 and 3 and VDUs 1 and 3, which had served Bapco Energies for over 80 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15963329/main.jpg
    Wil Crisp
  • Italian consultant wins Egypt battery storage contract

    13 March 2026

    Italy-headquartered consultancy Rina has announced its appointment as owner’s engineer for the 1 gigawatt-hour Nefertiti battery energy storage system (bess) project in Egypt.

    The project is being developed by Dubai-based firm Amea Power and is located in the Benban Photovoltaic Industrial Park in Aswan.

    The scheme will deploy a 500MW/1,000 megawatt-hour (MWh) utility-scale bess, making it the largest independent energy storage project in Africa.

    In March, a group comprising China Energy Engineering International Group, Zhejiang Thermal Power Construction and Southwest Electric Power Design & Research Institute was appointed as the main engineering, procurement and construction contractor.

    The $250m project also includes the construction of a 220kV substation, upgrades to an adjacent substation and development of grid network connection infrastructure.

    Under the owner’s engineer scope, Rina will deliver engineering design review, construction monitoring and commissioning support. The company will also undertake performance verification.

    Egypt’s utilities sector had its strongest year in over a decade in 2025, hitting $5bn in contract awards for the first time since 2015. 

    Last July, Amea Power commissioned Egypt’s first-ever utility-scale bess.

    The 300MWh project had previously reached financial close in June.

    The bess project is an extension of Amea Power’s operational 500MW solar photovoltaic plant in Aswan Governorate, which was commissioned in December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15954234/main.jpg
    Mark Dowdall