meed-logo

line1 line2 line3
SIGN IN / REGISTER

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.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10808507/main.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Algeria opens bidding for water treatment plant

    15 April 2026

     

    State-owned Cosider Pipelines, part of Algeria’s public infrastructure group Cosider, has issued a tender for the construction of a demineralisation plant in In Salah in Algeria.

    The contract covers the design, supply, installation, testing and commissioning of a plant with a treatment capacity of 62,000 cubic metres a day (cm/d).

    The tender is open to local and international companies specialising in the design and construction of demineralisation and reverse osmosis desalination plants.

    The bid submission deadline is 26 April.

    The project will be located at In Salah, a key industrial area in southern Algeria, where treated water supply is important for both municipal and industrial use.

    Cosider said that individual bidders must demonstrate that they have completed at least one reverse osmosis demineralisation or desalination plant with a capacity of 20,000 cubic metres a day or more.

    They must also show an average annual turnover of at least AD1bn ($7.7m) for their five best years over the past decade.

    For consortium bids, all partners must share full responsibility for the contract, while the lead company must meet the technical and financial requirements.

    Recent projects

    In 2023, MEED reported that Riyadh-based water utility developer Wetico had won two contracts to develop water desalination plants in Algeria.

    Societe Algerienne de Realisation de Projects Industriels (Sarpi) awarded the contract for the El-Tarf desalination plant, while Entreprise Nationale de Canalisations (Enac) is the client for the Bejaja facility.

    Both plants were commissioned in 2025, each with a production capacity of 300,000 cm/d.

    Separately, Wetico was the main contractor on a third plant commissioned last year. The Cap Dijinet 2 seawater desalination plant in Boumerdes province covers 18 hectares and also has a capacity of 300,000 cm/d.

    Like many countries, Algeria is facing pressure on resources due to longer and more frequent droughts. Seawater desalination is seen as a key driver of the government’s strategy to guarantee drinking water supply.

    According to previous reports, the government is planning to build up to six additional plants by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16404325/main.jpg
    Mark Dowdall
  • WEBINAR: UAE Projects Market 2026

    15 April 2026

    Webinar: UAE Projects Market 2026
    Tuesday, 28 April 2026 | 11:00 GST  |  Register now

    Agenda:

    • Overview of the UAE projects market landscape
    • 2025 projects market performance
    • Value of work awarded 2026 YTD
    • Impact of the Iran conflict on the projects market and real estate, assessing supply chain disruptions, material cost inflation and war risk premiums
    • Key drivers, challenges and opportunities
    • Size of future pipeline by sector and status
    • Ranking of the top contractors and clients
    • Summary of key current and future projects
    • Short and long-term market outlook
    • Audience Q&A

    Hosted by: Colin Foreman, editor of MEED 

    Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401868/main.gif
    Colin Foreman
  • Saudi Landbridge finds its moment in Gulf turmoil

    15 April 2026

    Commentary
    Yasir Iqbal
    Construction writer

    The strategic case for the Saudi Landbridge has never been more urgent. SAR’s appointment of Spain’s Typsa as lead design consultant, reported by MEED this week, is more than a procurement milestone. After two decades of delays, it reflects how the long-deferred project has become a strategic necessity.

    The conflict reshaping the Middle East has made that necessity more immediate. Red Sea transits are costly and unpredictable. The Strait of Hormuz carries risk no insurer can fully price. Saudi Arabia’s most valuable exports, including crude oil, refined products, petrochemicals and industrial goods, move almost entirely by sea through routes that are no longer reliably secure.

    The kingdom sits between two coastlines with no rail link connecting them. That gap is now an economic exposure.

    The $27bn project addresses it directly. More than 1,500 kilometres of track, anchored by a 900km railway between Riyadh and Jeddah, will provide direct freight access from King Abdullah Port on the Red Sea, with upgrades to the Riyadh-Dammam line and a new connection to Yanbu.

    Together, they create what Saudi Arabia has never had: a continuous land corridor linking Gulf industrial ports to Red Sea export terminals, entirely within its own borders.

    The commercial implications are substantial. Aramco’s downstream output, Sabic’s chemicals, and the manufacturing clusters of Jubail and Yanbu gain flexible access to both coasts.

    Exporters targeting Europe and the Americas load at Jeddah; those serving Asia pivot east to Dammam by rail, on demand, without Hormuz risk or Red Sea freight surcharges.

    No neighbouring economy has that optionality. The network also underpins a broader economic ambition. Connecting Jeddah, Riyadh, Dammam, Jubail, Yanbu, King Abdullah port and King Khalid airport by rail positions the kingdom as a genuine logistics corridor between East and West. 

    With design now under way and construction tenders expected imminently, the Landbridge is closer to reality than at any point in its troubled history. Regional disruption did not create this project. But it has made the argument for it unanswerable.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401567/main.png
    Yasir Iqbal
  • Indian firm selected for Saudi sewage treatment project

    15 April 2026

     

    Saudi Arabia’s National Water Company is understood to have recently selected Indian contractor VA Tech Wabag as its preferred bidder for a contract to expand a sewage treatment plant (STP) in Al-Majmaah in Riyadh Province.

    The engineering, procurement and construction (EPC) package for the Al-Majmaah STP has an estimated value of $65m.

    The scope includes the construction of sewage treatment plant units, a pumping station and an effluent surplus line. It also covers the installation of a Scada system, supervisory control systems and associated facilities.

    As MEED understands, six bids were submitted last year, including from local firms Alkhorayef Water & Power Technologies, Al-Rafia Contracting, Civil Works Company, Saudi Sdn Water & Energy and Washnah Trading & Contracting.

    The project forms part of Saudi Arabia’s broader push to expand treatment and reuse infrastructure under Vision 2030, particularly across the Riyadh region.

    MEED recently revealed that NWC had awarded an EPC contract for the latest phase of its long-term operations and maintenance sewage treatment programme.

    The contract to build and upgrade sewage treatment plants with a combined capacity of about 440,000 cubic metres a day was awarded to a consortium led by China’s Jiangsu United Water Technology.

    Elsewhere, a joint venture of Kuwait-based Heavy Engineering Industries & Shipbuilding and Wabag is awaiting the formal contract award for phase two of Kuwait’s Doha seawater desalination plant project.

    The firms submitted the lowest bid of $373.2m for the project last year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401155/main.jpg
    Mark Dowdall
  • SAR extends phosphate rail track deadline

    15 April 2026

     

    Saudi Arabian Railways (SAR) has extended the bid submission deadline to 26 April for a multibillion-riyal tender to double the tracks on the existing phosphate transport railway network connecting the Waad Al-Shamal mines to Ras Al-Khair in the kingdom’s Eastern Province.

    The new tender – covering the second section of the track-doubling works and spanning more than 150 kilometres (km) – was issued on 9 February. The previous bid submission deadline was 15 April.

    The new tender follows SAR receiving bids from contractors on 1 February for the project’s first phase, which spans about 100km from the AZ1/Nariyah Yard to Ras Al-Khair.

    The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track. It also includes support for signalling and telecommunications systems.

    The tender notice was issued in late November, with a bid submission deadline of 20 January 2026.

    Switzerland-based engineering firm ARX is the project consultant.

    MEED understands that these two packages are the first of four that SAR is expected to tender for the phosphate railway line. Other packages expected to be tendered shortly include the depot and systems packages.

    In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

    Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

    Adding a second track and the freight yards will significantly increase the network’s cargo-carrying capacity and facilitate increased industrial production. Project implementation is expected to take four years.

    State-owned SAR is also considering increasing the localisation of railway materials and equipment, including the construction of a cement sleeper manufacturing facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16400986/main.jpg
    Yasir Iqbal