Meed | Algeria launches $2.3bn upstream gas project

Algeria launches $2.3bn upstream gas project

4 December 2024

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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.

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Wil Crisp

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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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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.

The second package, TF-15-C2, covers the corridor between Sheikh Zayed Road and Al-Khail Road. It includes about 14km of main drainage lines serving Al-Quoz Industrial Areas 1, 3 and 4, and Al-Barsha 1. In July, MEED reported that CSCEC had won the engineering, procurement and construction contract for this project.

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.

Earlier, in February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

These included two contracts awarded to Detech and one to CSCEC for stormwater drainage infrastructure. In addition, two consultancy contracts were awarded for the study and design of drainage systems in selected areas across the emirate.

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Previously, in April 2025, an earlier package of awards was announced under phase one of the Tasreef programme. The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033.

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Nakheel awards $259m Dubai Islands buildings contract
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Dubai-based master developer Nakheel, part of Dubai Holding Real Estate, has awarded local firm Parkway International Contracting a construction contract valued at about AED950m ($259m) for phases two and four of Bay Grove Residences on Dubai Islands.

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.

Under the long-term masterplan Plan Rail Maroc 2040, Essaouira is expected to connect to the network via a separate line branching off at Chichaoua, designed for operating speeds of up to 200km an hour. The mainline to Agadir is designed for speeds of up to 320km/h.

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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.

The programme also includes developing regional express network services across five regions, electrifying the Fez-Oujda line and completing a freight rail link to the Nador West Med port.

Work on the Kenitra-Marrakech line had reached about 30% by May 2026, with commercial services targeted to begin in September 2029.

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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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