Meed | Adnoc moves Fujairah LNG terminal project to Ruwais

Adnoc moves Fujairah LNG terminal project to Ruwais

3 May 2023

Abu Dhabi National Oil Company (Adnoc) has announced it will move forward with a liquefied natural gas (LNG) export terminal project in Ruwais Industrial City in Abu Dhabi’s Al-Dhafrah region.

Adnoc did not specify the project, but sources identified it as the planned LNG terminal project in the UAE emirate of Fujairah.

US-headquartered energy industry contractor McDermott International is performing the front-end engineering and design (feed) contract for the Fujairah LNG terminal project. US-based consultancy firm KBR was selected to provide project management consultancy (PMC) services.

In early March, MEED reported that Adnoc Gas, which is executing the project on behalf of its parent entity Adnoc Group, had started an early engagement process with contractors for the planned Fujairah LNG export terminal.

Adnoc Gas organised a site visit between 14-16 February for contractors shortlisted for the Fujairah LNG project’s engineering, procurement and construction (EPC) phase. It was expected to issue the main EPC tender during the second quarter.

The relocation of the project from the UAE’s geopolitically strategic emirate of Fujairah, which sits outside the Strait of Hormuz on the coast of the Gulf of Oman and the Indian Ocean, to Ruwais on the Gulf coast in Abu Dhabi is a significant development.

“As part of the design phase, Adnoc announced today that its world-class low-carbon LNG growth project will move forward in the Al-Ruwais Industrial City, Al-Dhafrah, Abu Dhabi.

“As an operational hub for Adnoc and its operating companies, the selected location offers significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies, unlocking additional value for Adnoc, its partners and the UAE,” Adnoc said.

“Following a comprehensive evaluation of location options during the ongoing design phase, the proximity of Al-Ruwais to Adnoc’s current operations, as well as its future growth projects, in addition to a well-established local supplier base were important considerations in the company’s decision.

“Through its planned LNG growth project, Adnoc intends to more than double its LNG production capacity to meet increased global demand for natural gas. The plant, which is designed with electric-powered processing facilities, will run on renewable and nuclear grid power, making it one of the lowest carbon intensity LNG facilities in the world,” Adnoc added.

Planned LNG terminal

The LNG export terminal will have the capacity to process and ship approximately 9.6 million tonnes a year (t/y) of LNG, mainly to Pakistan, India and China, and other key markets in Asia such as Japan and South Korea. It will comprise two trains, each with a capacity of 4.8 million t/y.

The overall value of the planned project is estimated to be upwards of $4.5bn, based on capital expenditure (capex) by operators on similar schemes worldwide.

The project will also feature process units, storage tanks, an export jetty for loading cargoes and LNG bunkering, utilities, flare handling systems and associated buildings.

Regarding gas feedstock for the planned Fujairah LNG complex, Adnoc Gas aimed to build a 364-kilometre-long, 52-inch pipeline from one of its main gas processing facilities in Abu Dhabi’s Habshan to transport gas at a starting pressure rate of 78 barg and arrival pressure rate of 40 barg.

Adnoc Gas was understood to have allocated a capex budget of $680m for this feedstock pipeline, a core component of the Fujairah LNG facility, according to sources.

The project also requires designs for electric-powered rotary equipment and compressors instead of gas-fired units.

Previously, the following consortiums of contractors were understood to have formed for the main EPC contract tendering phase of the LNG project:

Technip Energies (France) / JGC Corporation (Japan) / National Petroleum Construction Company (UAE)
McDermott (US) / Saipem (Italy) / Hyundai Engineering & Construction (South Korea)

Adnoc’s plans to build a major LNG export terminal in Fujairah were understood to be the outcome of a pre-feasibility study that US-based KBR performed in 2020 – known as ‘Project Aladdin’ – to determine the most effective use of a plot of land that Adnoc owns in the UAE emirate that sits outside the Strait of Hormuz.

Major LNG producer

Adnoc Gas produces about 6 million t/y of LNG from its facilities on Das Island, located off the Abu Dhabi coast.

The company also supplies 1 billion cubic feet of gas a day to the UAE’s national grid. It is a gas and LNG provider to other utilities companies, portfolio players and commodity traders overseas.

Adnoc Gas’ supplies are exported from Das Island and Ruwais by Adnoc Logistics & Services, another Adnoc Group subsidiary.

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Indrajit Sen

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Saudi Arabia raises electricity tariffs
26 October 2026

Saudi Energy, formerly Saudi Electricity Company, has announced revised electricity tariffs, which will take effect on 1 January 2027.

The revised tariff schedule, published on the company’s official website, covers residential, commercial, industrial, agricultural, charitable and government customers.

The largest percentage increase in consumption rates is 16.7%, for residential customers using up to 6,000 kilowatt-hours (kWh) a month. Residential customers will pay 21 halalas/kWh for monthly consumption of up to 6,000kWh, up from 18 halalas. For consumption above 6,000kWh, the rate will rise from 30 to 33 halalas/kWh, a 10% increase.

The industrial tariff will increase by 15%, from 20 to 23 halalas/kWh. Commercial customers, private healthcare facilities and private educational facilities will pay 25 halalas/kWh, up from 22 halalas, for consumption up to 6,000kWh a month, and 35 halalas/kWh above that level, up from 32 halalas.

Tariffs for charities and government customers will also increase. In addition to consumption-based charges, customers will pay a fixed monthly fee based on the capacity of their electricity meter. This replaces the previous separate charge for meter reading, maintenance and billing, with VAT applied to the revised tariffs.

Electricity investment

The new tariffs coincide with changes to water consumption tariffs announced by the National Water Company, also effective from 1 January 2027.

King Salman Bin Abdulaziz Al-Saud directed support measures following a proposal presented by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

This includes raising the minimum wage required for Saudi nationals to count as full employees towards private sector localisation quotas under the Nitaqat programme.

The tariff changes come as Saudi Arabia plans substantial investment in its electricity infrastructure. In September 2025, Saudi Energy announced plans to invest SR220bn ($58.7bn) in power infrastructure projects between 2025 and 2030.

A June 2025 report by Fitch Ratings forecast negative free cash flow of about SR16bn a year over the period and rising leverage, reflecting the financial demands of the programme.

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Mark Dowdall
Dubai Municipality confirms AED3bn Tasreef drainage awards
26 October 2026

Dubai Municipality has confirmed it has awarded four contracts worth AED3bn ($817m) to expand the emirate’s stormwater drainage network by about 100 square kilometres under phase three of the Tasreef programme.

The projects will cover Jumeirah, Umm Suqeim, Al-Quoz, Al-Barsha, Al-Wasl and Al-Marmoom. The works include constructing and extending main stormwater drainage lines with diameters of up to three metres.

The four packages are part of Dubai’s AED30bn Tasreef programme, which aims to increase the emirate’s stormwater drainage capacity by 700% and reduce costs associated with pumping stations, network operations and maintenance by 20%.

The contracts have been awarded to China State Construction Engineering Corporation (CSCEC) and three local firms: Arifco Group, Nael Construction & Contracting (NCC) and Detech Contracting. Dubai Municipality did not state which projects the awards relate to.

According to sources, the contract awards include packages TF-15-C1, TF-15-C2 and TF-13-C1.

The first package, TF-15-C1, involves the construction of 21 kilometres of main and secondary drainage lines along Al-Wasl Road and in surrounding areas. It will cover Za’abeel 2, Al-Wasl, Jumeirah 1 and 2, Al-Bada’a, Al-Satwa and Dubai World Trade Centre. The estimated $100m contract was awarded to Detech in July, as exclusively reported by MEED.

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The third package, TF-13-C1, covers Al-Marmoom, where 23km of drainage infrastructure will be developed. According to a source, Arifco has been awarded this contract.

The final package covers Jumeirah and Umm Suqeim, where about 42km of main drainage lines will serve Umm Suqeim 1, 2 and 3; Umm Al-Sheif; Jumeirah 3; Al-Safa 1 and 2; and Al-Manara.

In May, MEED reported that NCC had been awarded a contract to build a sewage and stormwater drainage system, DS-204. However, it is unconfirmed whether this relates to the same project.

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Nakheel awards $259m Dubai Islands buildings contract
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The package covers 617 residential units across eight buildings, ranging from one to four bedrooms, together with basement structures, infrastructure and community amenities including swimming pools, sports courts and fitness centres.

Phase two comprises 360 homes across four buildings, with main construction scheduled for completion in late 2028.

Phase four includes 257 homes across four buildings, with completion targeted for the second quarter of 2029.

The award follows an earlier contract valued at about AED800m ($218m) awarded to local contractor Metac General Contracting Company for phases one and three, covering 537 homes across seven buildings.

Together, the two contracts total more than AED1.75bn ($476m) and account for all 1,154 planned homes across the 15 buildings of Bay Grove Residences.

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The pipeline forms part of the government’s 2026-31 programme, presented to parliament last week.

The Marrakech-Agadir link is estimated to cost close to MD55bn ($5.5bn) and will cover a 240-kilometre (km) route through the High Atlas Mountains via Chichaoua. Civil engineering structures, including tunnels and viaducts, are expected to account for nearly 70% of the alignment.

In September, the government issued a decree declaring the Marrakech-Agadir and Chichaoua-Essaouira rail corridors to be of public utility, paving the way for land acquisition and expropriation procedures.

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The plans follow Morocco’s ongoing MD134bn ($13.4bn) 2024-30 rail investment programme, which focuses on completing the Kenitra-Marrakech high-speed line ahead of the 2030 Fifa World Cup.

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Riyadh tenders King Salman Stadium works

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Saudi Arabia’s Sports Ministry has tendered a contract covering early works at King Salman International Stadium in Riyadh.

The scope includes enabling works, site preparation and initial construction activities.

The tender was issued on 11 October, with a submission deadline of 19 November.

The stadium will cover about 660,000 square metres (sq m) and seat 92,000. Facilities will include a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

The wider development will include sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

The stadium is set to host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main base.

US-based architectural firm Populous is the lead architect for the stadium.

Construction of the stadium is expected to be completed by 2029.

The stadium will be located next to King Abdulaziz Park.

Firms submitted prequalification statements for the main design-and-build contract in February.

Saudi stadium plans

In August 2024, MEED reported that Saudi Arabia planned to build 11 new stadiums and refurbish four facilities for the 2034 Fifa World Cup.

Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

A further 10 cities will host training bases: Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

There are expected to be 134 training sites in the kingdom, including 61 existing facilities and 73 new venues.

Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

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