Algeria launches $2.3bn upstream gas project

4 December 2024

Register for MEED's 14-day trial access 

Algeria’s national oil company Sonatrach has held a ceremony to mark the start of the $2.3bn gas development project to upgrade Algeria’s Hassi Rmel gas field.

In a statement, Sonatrach’s chairman and chief executive, Rachid Hachichi, said the project would help to maintain a production rate from the field of 188 million standard cubic metres a day (cm/d).

In May, a partnership of Italy’s Maire and US-based Baker Hughes was awarded the engineering, procurement and construction (EPC) contract.

The project aims to stabilise the pressure of the natural gas being transported through the Hassi Rmel transmission system.

Hassi Rmel is Algeria’s largest gas field, extending 70 kilometres (km) from north to south and 50km from east to west.

Maire has said that its subsidiary Tecnimont Integrated E&C Solutions will carry out its portion of the work.

It said that $1.7bn of the contract related to work that Tecnimont would carry out.

The project is focused on developing three gas booster stations and upgrading the gas gathering system at the Hassi Rmel gas field, which is located 550km south of Algiers.

The three gas booster stations will be developed in the field’s northern, central and southern zones.

The project includes installing 20 turbocompressors, which will compress about 188 million standard cm/d of natural gas.

It also includes:

  • Rehabilitation of the existing gas-collecting network
  • Construction of three condensate demercurisation units
  • Tie-ins for the utilities

The existing gas gathering system, which will be upgraded during the project, includes more than 300km of flowlines connecting the wells.

The central booster station is expected to be completed within 33 months.

The northern booster station is anticipated to be completed in 36 months, and the southern booster station in 39 months.

The respective commissioning dates for the booster stations are October 2026, January 2027 and April 2027.

In its latest statement about the project, Sonatrach said: “The completion of this project will maintain the level of gas production in order to satisfy the domestic market, and enable Sonatrach to meet its commercial international commitments.”

The project aims to help maintain the pressure of the gas as it travels through the pipelines, allowing it to continue flowing more efficiently and ensuring a reliable and uninterrupted supply of natural gas to Italy and, subsequently, to Europe.

This project is the third major field development project to be awarded for the Hassi Rmel gas field.

Tokyo-headquartered JGC was awarded the second major field development contract for the Hassi Rmel gas field in 2016. The contract, worth $1.1bn, was completed in February 2021.

JGC participated in early talks with Sonatrach about potentially taking on the third development project for the Hassi Rmel field.

However, talks between JGC and Sonatrach regarding the project ended without an agreement between the two companies.

Chemical plant

In March, Tecnimont was awarded a $1.1bn contract for the planned linear alkyl benzene (LAB) plant at Skikda in Algeria.

The project entails implementing a new LAB plant with an annual production capacity of 100,000 tonnes and the associated utilities, offsites and interconnections with the existing facilities.

The completion of the project is scheduled within 44 months from the contract’s effective date.

Italy has increasingly sought a deeper partnership with Algeria since the start of the Russia-Ukraine war.

Claudio Descalzi, CEO of the Italian oil and gas company Eni, has said that Algeria is expected to supply 38% of Italy’s gas needs in 2024, as much as Russia did before it cut flows to Europe in retaliation against war sanctions.

Growing demand

Algeria has seen an uptick in its upstream energy projects amid increased demand as European nations look for alternatives to Russian energy imports due to the ongoing war in Ukraine.

In February, Algeria announced a contract to supply Germany with pipeline gas for the first time.

It said that a contract had been signed between a subsidiary of the Leipzig-headquartered company VNG and Sonatrach.

In July last year, the French oil and gas firm TotalEnergies signed a series of agreements with Sonatrach to increase Algerian gas production and the number of gas deliveries to France.

The agreements were signed by Patrick Pouyanne, the chairman and chief executive of TotalEnergies, and Toufik Hakkar, the chief executive of Sonatrach.

Under the terms of one of the agreements, both parties agreed to convert the production contracts for the Tin Fouye Tabankort 2 (TFT2) and Tin Fouye Tabankort Sud (TFT Sud) fields in southern Algeria to the framework established by the Algerian Petroleum Law enacted on 11 December 2019.

Sonatrach has a 51% stake in the fields and TotalEnergies has a 49% stake.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13037652/main.jpg
Wil Crisp
Related Articles
  • Miral commits $3.2bn Yas Island investments

    14 September 2026

    Abu Dhabi’s Miral has announced plans to invest over AED12bn ($3.2bn) in Yas Island over the next five years.

    According to a statement, the investment will fund a pipeline of new projects, as well as expansions and enhancements to existing attractions, supporting Abu Dhabi’s Tourism Strategy 2030.

    The next phase of development will focus on expanding Yas Island’s theme parks and attractions, while introducing new immersive rides and experiences that reflect changing visitor expectations.

    The investment will also strengthen the island’s hospitality offering through additional hotel rooms and enhancements to its overall accommodation portfolio.

    The investment is separate from the previously announced Disney project. 

    Miral recently started the expansion works of its Harry Potter-themed expansion at the Warner Bros World Yas Island entertainment destination in Abu Dhabi.

    The scope of the Warner Bros World phase two expansion includes adding 63,000 square metres (sq m) to the existing theme park.

    This will include a Harry Potter-themed zone with three new rides called Diagon Alley, Hogwarts Castle and The Forbidden Forest, along with retail outlets and food and beverage facilities.

    Yas Waterworld

    Miral has developed a series of theme parks and other entertainment-related attractions on Yas Island, working with several local and international contractors.

    In July last year, Miral opened a new 16,900 sq m expansion of its Yas Waterworld park to the public.

    The expansion added 3.3 kilometres of slide sections to the park. The addition of 18 new rides and attractions, bringing the total number of rides to more than 60, is expected to increase visitor capacity by 20%.

    Construction was carried out by local contractor Alec.

    Disney park

    The Walt Disney Company and Miral signed an agreement in May to build a Disney theme park resort on Yas Island.

    Disney, which is based in the US, said the Abu Dhabi site will be its seventh theme park resort. The others are in California and Florida in the US, Paris in France, Hong Kong and Shanghai in China, and Tokyo in Japan.

    In a statement, Disney noted that the UAE is located within a four-hour flight of one-third of the world’s population, making it a significant gateway for tourism. It is also home to one of the world’s busiest airline hubs, with 120 million passengers travelling through Abu Dhabi and Dubai each year.

    The Disney theme park resort in Abu Dhabi will include entertainment areas, themed accommodations, dining venues and retail experiences.

    In 2023, Miral opened SeaWorld Abu Dhabi, also on Yas Island. Alec was the contractor for the estimated $565m project.

    In 2018, Miral opened the Warner Bros theme park on Yas Island. Belgium’s Besix was the contractor for the estimated $531m project.

    Other Miral projects have included the Etihad Arena and the indoor climbing and skydive centre Clymb. Bam International of the Netherlands was the contractor for the arena and Germany’s Zublin was the contractor for Clymb.

    Yas Island was launched as a project in 2006 by local developer Aldar Properties. The original centrepiece attractions were the Yas Marina Circuit, which hosts Formula 1 motor racing’s annual Abu Dhabi Grand Prix, and the Ferrari World theme park.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19645816/main.jpg
    Yasir Iqbal
  • Contractors prepare bids for Oxagon wastewater plant

    14 September 2026

     

    Contractors are preparing to submit bids to build a wastewater treatment plant for Oxagon, Neom’s industrial cluster.

    The industrial wastewater treatment package will have an initial capacity of 35,000 cubic metres a day (cm/d), supplied in modular trains of 5,000 cm/d each. A separate sanitary wastewater treatment package will have a capacity of 1,000 cm/d.

    The contract is structured as a design-build-operate project and covers the supply, installation and commissioning of industrial and sanitary wastewater treatment packages, as well as three years of operation and maintenance.

    Bids are due on 2 October, a source close to the project told MEED.

    It is understood that Neom’s water utility Enowa issued the request for proposals earlier this year. The plant is designed to provide “interim wastewater treatment” capacity for Neom’s Oxagon Industrial Quarter as industrial development in the area progresses.

    Enowa has described the treatment systems as interim and de-mountable, allowing them to be installed and subsequently removed or relocated as requirements at Oxagon develop. The plant can be expanded to a maximum of 45,000 cm/d.

    The tender documents also state that Neom may consider export credit agency (ECA) financing for the project, with the strength of bidders’ ECA financing proposals forming part of the commercial evaluation.

    The project follows an earlier tender for the Oxagon Village Water Recycling Plant, which was cancelled despite contractors submitting bids in 2024.

    MEED reported at the time that Beijing-based PowerChina, the local Alfanar Company and Cairo-headquartered Orascom had submitted bids for the project. It is understood that these firms are also likely to participate in the latest tender.

    The earlier scheme included truck receiving facilities, pretreatment, biological treatment using food chain reactor technology, tertiary treatment, sludge handling and recycled-water storage.

    The latest procurement appears to represent a reworked approach to wastewater treatment at Oxagon Industrial Quarter, with the previous engineering, procurement and construction scheme replaced by an interim, modular and de-mountable facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19640903/main.jpg
    Mark Dowdall
  • Saudi Arabia shuts East-West oil pipeline after drone strikes

    14 September 2026

    Saudi Arabia has temporarily closed its 1,200-kilometre East-West pipeline after it was targeted by multiple drones launched from Iraq, disrupting one of the kingdom’s most critical energy export routes and threatening global oil supplies already strained by conflict across the region.

    The Ministry of Energy said the pipeline, which connects the Abqaiq oil field in the east to the Red Sea port of Yanbu, was hit in the Riyadh and Medina regions on 12 September. Specialised teams have begun securing the facility and assessing damage. A Foreign Ministry statement said the attack resulted in injuries and “some damage that is currently being addressed”.

    The closure removes about 4 million barrels a day from the global market, representing 4% of world oil supply. The pipeline’s role has become increasingly critical since the US-Iran conflict forced a near-complete shutdown of flows through the Strait of Hormuz in March.

    Saudi Arabia has been using the East-West route to bypass the chokepoint, but the assault has left the kingdom dependent on substantially reduced Hormuz exports and Red Sea shipping routes now threatened by Iran-backed Houthi forces in Yemen.

    Iraqi Prime Minister Ali Al-Zaidi’s office confirmed the drone strike on the East-West Pipeline originated in the Maysan province, which borders Iran. The government formally condemned the attack, announced an investigation into the Maysan operations command and dismissed its commander. No armed group has claimed responsibility, but security analysts attribute the strike to Iran-backed militias operating from Iraqi territory.

    Riyadh said it was not retaliating “at this stage”, choosing instead to support Iraqi efforts to prevent further strikes from its territory. 

    The attack comes amid wider regional upheaval. Houthi forces have rapidly advanced along Yemen’s coast, seizing the strategic Mokha port and the Zuqar Island in the southern Red Sea, moving closer to the Bab El-Mandab strait. Saudi authorities said the group simultaneously launched dozens of drones and missiles at the southern kingdom on 11 September, striking civilian and economic targets and injuring 73 people.

    Oil analysts and traders reported that Yanbu’s storage capacity, estimated at around 35 million barrels, now holds supplies sufficient for only five to seven days of exports without pipeline operations. Storage facilities at Egypt’s Ain Sokhna and Sidi Kerir ports have similar constraints. Repair timelines remain uncertain, with sources citing estimates ranging from days to five or six weeks.

    The dual disruption of both the pipeline and Red Sea shipping has compressed global energy supplies. Energy analysts warned that without pipeline repairs, oil prices could return to the $120-a-barrel peak reached earlier in the regional conflict.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19641513/main.gif
    Colin Foreman
  • WSP wins Dammam airport expansion design works

    14 September 2026

    WSP Middle East, the regional arm of Canadian engineering firm WSP, has won a design contract to expand King Fahd International airport in Dammam, Saudi Arabia.

    Dammam Airports Company (DACO) awarded the contract.

    The scope includes designing passenger terminal expansions, facility upgrades, and improvements to airport entrances and access roads.

    It also covers the development of baggage-handling systems, digital services and other associated infrastructure.

    The expansion works will be carried out in line with the airport’s approved masterplan, which targets serving more than 19 million passengers a year by 2030.

    The plan also aims to increase air cargo capacity to more than 600,000 tonnes a year and raise aircraft operational capacity to 77 movements per hour, supported by comprehensive expansions to infrastructure, runways and general aviation facilities.

    This contract forms part of DACO’s ongoing efforts to strengthen the airport ecosystem, enhance operational efficiency, and support the Aviation Programme and Saudi Vision 2030 objectives.

    King Fahd International airport is the kingdom’s third-largest airport by annual passenger traffic, behind Jeddah’s King Abdulaziz International and Riyadh’s King Khaled International.

    DACO was formed in July 2017 to manage, operate and develop King Fahd International airport in Saudi Arabia’s Eastern Province.

    It was established as part of the broader Saudi Vision 2030 privatisation and economic reform programme to corporatise the aviation sector, increase operational efficiency, upgrade infrastructure, and transition state-run airports into commercially viable, world-class regional aviation hubs.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19639910/main.jpg
    Yasir Iqbal
  • Dubai seeks contractors for multibillion-dollar road scheme

    14 September 2026

     

    Register for MEED’s 14-day trial access 

    Dubai’s Roads & Transport Authority (RTA) is seeking contractors to design and build a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    MEED understands that the scope covers the construction of about 30 kilometres (km) of works.

    These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The RTA floated the expression of interest notice to contractors in early September, with a submission deadline of 10 October.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through-traffic while the existing at-grade lanes served local access.

    The plans ultimately progressed as standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing 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 and Dubai Metro Gold Line form part of Dubai’s 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 within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19639621/main.gif
    Yasir Iqbal