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• 
  Firms submit bids for new QatarEnergy LNG gas project package

  21 July 2025

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  QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, has received technical bids from contractors for a new engineering, procurement, construction and installation (EPCI) package that is part of the second phase of its North Field Production Sustainability (NFPS) project.

  Contractors submitted technical bids for the NFPS phase two COMP5 package “in late June”, sources told MEED. The value of the EPCI contract for the package could be in the “ballpark of $5bn”, the sources said.

  Contractors that have submitted technical bids for the NFPS phase two COMP5 package are understood to include:

  • China Offshore Oil Engineering Company 
  • Larsen & Toubro Energy Hydrocarbon (India)
  • McDermott (US)
  • Saipem (Italy)

  The scope of work on the COMP5 package covers EPCI work on the following:

  • Two gas compression platforms, each weighing 30,000-35,000 tonnes, plus jacket
  • Two living quarter platforms, plus jacket
  • Two gas flare platforms plus jacket
  • Brownfield modification work at two complexes

  According to sources, QatarEnergy LNG, formerly known as Qatargas, is evaluating technical bids for the COMP5 package and has yet to set a submission date for commercial bids from contractors.

  NFPS scheme

  QatarEnergy’s North Field liquefied natural gas (LNG) expansion programme requires the state enterprise to pump large volumes of gas from the North Field offshore reserve to feed the three phases of the estimated $40bn-plus programme.

  QatarEnergy has already invested billions of dollars in engineering, procurement and construction works on the two phases of the NFPS project, which aims to maintain steady gas feedstock for the North Field LNG expansion phases.

  The second NFPS phase will mainly involve building gas compression facilities to sustain and gradually increase gas production from Qatar’s offshore North Field gas reserve over the long term.

  Saipem has been the most successful contractor on the second NFPS phase, securing work worth a total of $8.5bn.

  QatarEnergy LNG awarded Saipem a $4.5bn order in October 2022 to build and install gas compression facilities. The main scope of work on the package, which is known as EPCI 2, covers two large gas compression complexes that will comprise decks, jackets, topsides, interconnecting bridges, flare platforms, living quarters and interface modules.

  The gas compression complexes – CP65 and CP75 – will weigh 62,000 tonnes and 63,000 tonnes, respectively, and will be the largest fixed steel jacket compression platforms ever built.

  Following that, Saipem won combined packages COMP3A and COMP3B of the NFPS project’s second phase in September last year.

  The scope of work on the combined packages encompasses EPCI of a total of six platforms, approximately 100 kilometres (km) of corrosion resistance alloy rigid subsea pipelines of 28-inches and 24-inches diameter, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.

  Separately, QatarEnergy LNG awarded McDermott the contract for the NFPS second phase package known as EPCI 1, or COMP1, in July 2023. The scope of work on the estimated $1bn-plus contract is to install a subsea gas pipeline network at the North Field gas development.

  In March this year, India’s Larsen & Toubro Energy Hydrocarbon (LTEH) won the main contract for the combined 4A and 4B package, which is the fourth package of the second phase of the NFPS project and is estimated to be valued at $4bn-$5bn.

  The main scope of work on the package is the EPCI of two large gas compression systems that will be known as CP8S and CP4N, each weighing 25,000-35,000 tonnes. The contract scope also includes compression platforms, flare gas platforms and other associated structures.

  LTHE sub-contracted detailed engineering and design works on the combined 4A and 4B package to French contractor Technip Energies.

  NFPS first phase

  Saipem is also executing the EPCI works on the entire first phase of the NFPS project, which consists of two main packages.

  Through the first phase of the NFPS scheme, QatarEnergy LNG aims to increase the early gas field production capacity of the North Field offshore development to 110 million tonnes a year.

  QatarEnergy LNG awarded Saipem the contract for the EPCI package in February 2021. The package is the larger of the two NFPS phase one packages and has a value of $1.7bn.

  Saipem’s scope of work on the EPCI package encompasses building several offshore facilities for extracting and transporting natural gas, including platforms, supporting and connecting structures, subsea cables and anti-corrosion internally clad pipelines.

  The scope of work also includes decommissioning a pipeline and other significant modifications to existing offshore facilities.

  In addition, in April 2021, QatarEnergy LNG awarded Saipem two options for additional work within the EPCI package, worth about $350m.

  QatarEnergy LNG awarded Saipem the second package of the NFPS phase one project, estimated to be worth $1bn, in March 2021.

  Saipem’s scope of work on the package, which is known as EPCL, mainly covers installing three offshore export trunklines running almost 300km from their respective offshore platforms to the QatarEnergy LNG north and south plants located in Ras Laffan Industrial City.

  Saipem performed the front-end engineering and design work on the main production package of the first phase of the NFPS as part of a $20m contract that it was awarded in January 2019. This provided a competitive advantage to the Italian contractor in its bid to win the package.

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  READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

  UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

  Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

  > AGENDA: UAE-Turkiye trade gains momentum > INTERVIEW 1: Building on UAE-Turkiye trade > INTERVIEW 2: Turkiye's Kalyon goes global > INTERVIEW 3: Strengthening UAE-Turkiye financial links > INTERVIEW 4: Turkish Airlines plans further growth > CURRENT AFFAIRS: Middle East tensions could reduce gas investments > GCC REAL ESTATE: Gulf real estate faces a more nuanced reality > PROJECTS MARKET: GCC projects market collapses > INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation > INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia > LEADERSHIP: Nuclear power makes a global comeback > LEVANT MARKET FOCUS: Levant states wrestle regional pressures > GULF PROJECTS INDEX: Gulf projects index continues climb > CONTRACT AWARDS: Mena contract award activity remains subdued > ECONOMIC DATA: Data drives regional projects > OPINION: A farcical tragedy that no one can end

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

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• 
  Award nears on ‘world’s largest desalination plant’

  21 July 2025

  

   

  The Iraqi government has approved the award of the contract to build what will be the world’s largest desalination plant, sending its decision to the project client to conclude negotiations with the selected contractor consortium. 

  The grouping of Power Construction Corporation of China (PowerChina) and the local Al-Rida Group has been in talks with the Basra Governorate for over a year regarding the contract, which the authorities say has an estimated capital expenditure (capex) of $3.9bn. 

  It is unclear when exactly the final contract will be signed, but in a public statement Prime Minister Mohammed Shia Al-Sudani said that the Council of Ministers had approved the project, and that the governorate is now “authorised to conclude the contract with the implementing company after completing all technical and administrative requirements”.

  The 1 million cubic-metre-a-day reverse osmosis (RO) complex at Basra will be located in the Al-Faw Grand Port development area. 

  It includes a 240-kilometre transmission system that will transport potable water to nine off-take stations, which link to the municipalities.

  MEED understands that a 300MW captive power plant will produce the required energy for the plant.

  Austria’s ILF Consulting Engineers is the project consultant. 

  The massive complex is believed to be the world’s largest single-technology desalination plant ever built in one phase. Although there are larger desalination plants in Saudi Arabia and the UAE, they comprise a combination of hybrid technologies and were built in multiple stages.

  The long-awaited Basra project has had a complex history, and a successful conclusion of the contract is by no means assured.

  Various contracting groups have been associated with it since 2019, including the UK’s Biwater and South Korea’s Samsung C&T.  

  Responsibility for the project was transferred from the Ministry of Construction, Housing, Municipalities & Public Works to the Basra Governorate last year as a means of completing it.

  There is a pressing need for additional desalination capacity in Iraq. More than 90% of its water needs are met by the Euphrates and Tigris rivers, and thus depend on their sources in Turkiye.  

  In periods of drought or low rainfall when its northern neighbour has to extract more water from the rivers than normal, Iraq suffers a severe shortage. Desalination plants on the Gulf coast will therefore alleviate any potential future water supply disturbances, particularly in the south, and are consequently considered a national strategic priority. 

  ---

  MEED’s June 2025 report on Iraq includes:

  > COMMENT: Iraq maintains its pace, for now
  > GOVERNMENT & ECONOMY: Iraq’s economy faces brewing storm
  > OIL & GAS: Iraqi energy project value hits decade-high level
  > PIPELINES: Revival of Syrian oil export route could benefit Iraq
  > POWER: Iraq power sector turns a page
  > CONSTRUCTION: Iraq pours billions into housing and infrastructure projects
  > DATABANK: Iraq forecast dips on lower oil prices

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• 
  Baghdad and Erbil sign oil supply deal

  21 July 2025

  The Iraqi federal government has reached an agreement with the Kurdistan Regional Government (KRG) to resolve its dispute over crude oil exports from the north of the country.

  Under the terms of the deal, the KRG will immediately begin delivering all of its exports via Iraq’s state oil marketing company, Somo, according to a statement from Prime Minister Mohammed Shia Al-Sudani’s office.

  In return, the Baghdad-based Finance Ministry will provide an advance payment of $16 per barrel, either in cash or in-kind, under an amendment to the national budget law.

  The agreement states that the KRG must supply at least 230,000 barrels a day (b/d) to Somo, with any future increases to be determined by a joint measurement and calibration committee.

  If exports are stopped for any reason, the region must deliver the full quota to the Oil Ministry in Baghdad.

  The Iraqi Kurdistan region currently produces 280,000 b/d, of which 50,000 is allocated for local consumption.

  As part of the deal, the KRG will provide an initial payment of ID120bn ($91.6m) for May’s non-oil revenue share that is due to the federal treasury.

  Final adjustments will be made after audits are completed, according to the prime minister’s statement.

  The two sides agreed to form a joint team from their respective finance ministries and audit bureaus to assess any excess in the region’s spending above budgeted allocations for 2023-25, and to develop a plan to address discrepancies.

  The team is expected to submit its report to the federal Cabinet within two weeks.

  The Finance Ministry will begin disbursing public sector salaries for May to KRG employees as a first step towards implementing the agreement.

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  Wil Crisp
• 
  Chinese firm wins Dubai Umm Suqeim street upgrade

  18 July 2025

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  Beijing-headquartered China State Construction Engineering Corporation has won a contract to develop an integrated road network project in Dubai that will upgrade Umm Suqeim Street from its intersection with Jumeirah Street to Al-Khail Road.

  The project is being developed by Dubai’s Roads & Transport Authority (RTA).

  The project will add six intersections at Jumeirah Street, Al-Wasl Road, Sheikh Zayed Road, First Al-Khail Street, Al-Asayel Street and Al-Khail Road.

  The scope of work also includes the construction of four bridges and three tunnels, with a total combined length of 4.1 kilometres.

  The project will also establish a direct link between the Mall of the Emirates metro station and nearby residential communities.

  The RTA announced plans to develop the project in June. 

  Mattar Al-Tayer, director-general and chairman of the board of executive directors of the RTA, said: “The upgrade of Umm Suqeim Street, from its intersection with Jumeirah Street to Al-Khail Road, forms part of a masterplan to develop the Umm Suqeim-Al Qudra corridor.”

  He added: “The project enhances connectivity across four strategic transport corridors in Dubai – Sheikh Zayed Road, Al-Khail Road, Sheikh Mohammed Bin Zayed Road and Emirates Road. It will increase Umm Suqeim Street’s capacity to 16,000 vehicles an hour in both directions, significantly improve traffic flow and reduce travel time between Jumeirah Street and Al-Khail Road from 20 minutes to just six.”

  Upgrading Strategic Dubai Corridor

  We are pleased to announce the upgrade of Umm Suqeim Street as part of an integrated urban project aiming to enhance infrastructure efficiency and improve traffic flow in one of the city's key areas.

  This project marks a significant milestone… pic.twitter.com/Ymm9Wxy21X

  — RTA (@rta_dubai) May 31, 2025

  In November last year, the RTA outlined plans to improve urban mobility and infrastructure throughout the emirate.

  The estimated AED16bn ($4.3bn) 2024-27 Main Roads Development Plan involves adding 22 projects across Dubai’s road network.

  The development plan includes the construction of new roads and bridges designed to alleviate traffic congestion in several key locations in Dubai.

  Planning for growth

  The Dubai 2040 Urban Master Plan was launched in March 2021. Its launch referenced studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

  In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

  In addition to the road projects, the RTA’s Dubai Metro Blue Line extension also forms part of plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

  The policy aims for residents to have 80% of their daily requirements met within a 20-minute journey time, on foot or by bicycle. This goal will be achieved by developing integrated service centres with key facilities and increasing the population density around mass transit stations.

  ---

  READ THE JULY 2025 MEED BUSINESS REVIEW – click here to view PDF

  UAE and Turkiye expand business links; Renewed hope lies on the horizon for trouble-beset Levant region; Gulf real estate momentum continues even as concerns emerge

  Distributed to senior decision-makers in the region and around the world, the July 2025 edition of MEED Business Review includes:

  > AGENDA: UAE-Turkiye trade gains momentum > INTERVIEW 1: Building on UAE-Turkiye trade > INTERVIEW 2: Turkiye’s Kalyon goes global > INTERVIEW 3: Strengthening UAE-Turkiye financial links > INTERVIEW 4: Turkish Airlines plans further growth > CURRENT AFFAIRS: Middle East tensions could reduce gas investments > GCC REAL ESTATE: Gulf real estate faces a more nuanced reality > PROJECTS MARKET: GCC projects market collapses > INTERVIEW 5: Hassan Allam eyes role in Saudi Arabia’s transformation > INTERVIEW 6: Aseer region seeks new investments for Saudi Arabia > LEADERSHIP: Nuclear power makes a global comeback > LEVANT MARKET FOCUS: Levant states wrestle regional pressures > GULF PROJECTS INDEX: Gulf projects index continues climb > CONTRACT AWARDS: Mena contract award activity remains subdued > ECONOMIC DATA: Data drives regional projects > OPINION: A farcical tragedy that no one can end

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

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  Yasir Iqbal
• 
  Riyadh Royal Commission awards metro Line 2 extension

  18 July 2025

  

   

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  Saudi Arabia’s Royal Commission for Riyadh City (RCRC) has awarded an estimated $800m-$900m contract to build the next phase of the Riyadh Metro project, which is the Line 2 extension.

  The contract was awarded to the Arriyadh New Mobility Consortium.

  The Line 2 extension is 8.4 kilometres (km) long, of which 1.3km is elevated and 7.1km is underground. It includes five stations – two elevated and three underground.

  It will run from where Line 2 currently ends at King Saud University (KSU) and then travel onwards to new stations at KSU Medical City, KSU West, Diriyah East, Diriyah Central, where it interchanges with the planned Line 7, and then finally to Diriyah South.

  According to the consortium’s official website, the consortium members include Italy’s Webuild, India’s Larsen & Toubro, locally based Nesma & Partners, Japan’s Hitachi, Italy’s Ansaldo STS, the Canadian firm Bombardier, Spain’s Idom and WorleyParsons from Australia.

  Riyadh Metro Transit Consultants (RMTC), which is a joint venture between the US-based firm Parsons and the French engineering firms Egis and Systra, is the project management and construction supervision consultant.

  RMTC has previously worked as a project management and construction supervision consultant on Lines 1, 2 and 3 of the Riyadh Metro scheme.

  In 2013, the Arriyadh New Mobility Consortium secured Riyadh Metro’s Line 3 project for $5.21bn.

  Line 3, also known as the Orange Line, stretches from east to west, from Jeddah Road to the Second Eastern Ring Road, covering a total distance of 41km. 

  Riyadh Metro

  Riyadh Metro’s first phase features six lines with 84 stations.

  The RCRC completed the phased rollout of the Riyadh Metro network when it started operating the Orange Line on 5 January.

  In December last year, the RCRC started operating the Red Line and Green Line.

  The Red Line, also known as Line 2, stretches 25.1km from the east of Riyadh to the west, via King Abdullah Road, connecting King Fahd Sports City and King Saud University. It has a total of 15 stations.

  The Green Line, also known as Line 5, extends 13.3km from King Abdullah Road to the National Museum. With 12 stations, it serves several ministries and government agencies, including the Defence Ministry, the Finance Ministry and the Commerce Ministry, as well as other areas.

  Earlier in December, the RCRC started operating the Blue Line (Line 1), Yellow Line (Line 4) and Purple Line (Line 6).

  The Blue Line connects Olaya Street to Batha; the Yellow Line runs along King Khalid International Airport Road; while the Purple Line connects Abdul Rahman Bin Awf Road with Al-Sheikh Hassan Bin Hussain Road.

  King Salman Bin Abdulaziz Al-Saud inaugurated the Riyadh Metro on 27 November last year.

  The network spans 176km. Four of the stations have been designed by signature architects.

  The metro is part of the Riyadh Public Transport Project, which encompasses metro and bus systems. The project aims to relieve traffic congestion.

  The $23bn project was scheduled to open in 2018, but construction activity slowed due to disputes over prolongation and the disruption caused by the Covid-19 pandemic.

  The RCRC awarded the main construction packages for the scheme on 28 July 2013.

  In November 2022, the RCRC struck a deal with three contracting consortiums working on the Riyadh Metro scheme regarding the completion of the project’s remaining works.

  The Fast consortium won lines 4, 5 and 6, reportedly valued at $7.82bn. The Bacs consortium was awarded lines 1 and 2 for $9.45bn, while Arriyadh New Mobility secured Line 3 for $5.21bn.

  US firm Bechtel leads the Bacs consortium. Italian firm Ansaldo STS is the leader of the Arriyadh New Mobility group, and Spanish firm FCC Construccion heads the Fast consortium.

  AtkinsRealis has delivered programme management and supervision services for the operations and maintenance of the Riyadh Metro scheme.

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  Yasir Iqbal