meed-logo

line1 line2 line3
SIGN IN / REGISTER

Aramco awards $7.7bn Fadhili gas plant expansion contracts

2 April 2024

Register for MEED's guest programme 

Saudi Aramco has awarded engineering, procurement and construction (EPC) contracts totalling $7.7bn to expand the Fadhili gas plant in the Eastern Province of Saudi Arabia.

The project is expected to increase the Fadhili gas plant’s processing capacity from 2.5 billion cubic feet a day (cf/d) to up to 4 billion cf/d.

“The additional 1.5 billion cf/d of processing capacity is expected to contribute to the company’s strategy to raise gas production by more than 60% by 2030, compared to 2021 levels,” Aramco said in a statement on 2 April.

The Fadhili gas plant expansion, which is expected to be completed by November 2027, is also anticipated to add 2,300 metric tonnes a day of sulphur production, Aramco added.

MEED recently named frontrunners for the main EPC packages of the project, which will add three processing trains, each with a capacity of 500 million cf/d.

According to sources, the following contractors were in pole position to win the three main EPC works on the Fadhili gas plant expansion project:

  • Package 1 – Gas processing plant expansion – Samsung Engineering (South Korea)
  • Package 2 – Sulphur recovery units (SRUs) – GS Engineering & Construction (South Korea)
  • Package 4 – Utilities and offsites – Samsung Engineering

Aramco’s statement named local contractor Nesma and Partners among the project contract winners. MEED understands the Al Khobar-based contractor has won the contract for package 3, which relates to early civil works on the project.

Aramco declined to respond to MEED’s request for comment on the information at the time.

MEED reported in November that Aramco was preparing to award contracts for the main EPC packages for the Fadhili gas plant expansion project in the first quarter of this year. The Saudi energy giant was previously expected to award the EPC contracts by the end of last year.

Contractors submitted bids for packages 1 and 2 on 16 September, and bids for packages 3 and 4 on 14 October, MEED previously reported.

Aramco issued the tenders for the EPC packages between March and April in 2023 and set 15 July as the initial deadline for submission of proposals, as MEED reported. Aramco organised a site visit for contractors on 15 May.

Four contractors are understood to have been bidding for the Fadhili gas plant expansion project:

  • GS Engineering & Construction (South Korea)
  • Hyundai Engineering & Construction (South Korea)
  • JGC Gulf International (Saudi Arabia subsidiary of Japan-headquartered JGC Corporation)
  • Samsung Engineering (South Korea)

US-headquartered KBR is understood to have executed the project’s front-end engineering and design (feed) works.

Fadhili gas processing complex

The Fadhili gas processing complex, located 30 kilometres southwest of the Khursaniyah gas plant, was commissioned in early 2020 and has the capacity to process 2.5 billion cf/d of natural gas.

EPC works on the $6.5bn Fadhili gas processing complex were completed by the end of 2019.

There were five EPC packages in the project’s first phase, contracts for which were awarded in 2015.

Spanish contractor Tecnicas Reunidas was awarded packages 1 and 2, worth $2bn and $1bn, respectively. The scope of work on the two packages related to building the central gas processing facility and the utilities and interconnecting systems.

UK-based Petrofac won package 3, worth about $1.7bn. The scope included the construction of six sulphur recovery trains with associated facilities for sulphur and heavy-duty oil handling, loading, unloading and storage; sour water stripper, flare system and a wastewater treatment plant.

The fourth EPC package, worth about $450m, was awarded to a consortium of India’s Larsen & Toubro Energy Hydrocarbon, Saudi Arabia’s Arkad Engineering & Construction and local firm Denys Arabia. Package 4 related to constructing a pipeline network connecting the Fadhili gas plant to its feeder oil and gas fields and other gas plants in the Eastern Province.

A fifth package for industrial support facilities at the Fadhili gas plant site was awarded to local firm Al-Muhaidib Contracting.

The UK-headquartered Wood Group carried out the feed work on the Fadhili project and was also the project management consultant.

The Fadhili plant processes sour gas from the offshore Khursaniyah oil field and the offshore Hasbah non-associated gas field.

The Fadhili gas project is vital to Aramco’s goal of nearly doubling its gas production and processing capacity from 12 billion cf/d to 23 billion cf/d by the end of this decade.

ALSO READ: Aramco CEO calls fossil fuel phase out a fantasy

https://image.digitalinsightresearch.in/uploads/NewsArticle/11652087/main0457.jpeg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Humain tenders infrastructure for 6GW data centre campus

    4 May 2026

    Saudi artificial intelligence (AI) infrastructure company Humain, owned by the Public Investment Fund (PIF), has issued a tender inviting firms to develop infrastructure for its planned 6GW hyperscale AI data centre campus in Riyadh.

    The project will be delivered on an early contractor involvement (ECI) basis. Under the ECI process, selected contractors are required to submit methodologies and design proposals, after which one team will be selected to deliver the construction works.

    Firms have until 8 May to submit proposals.

    The development will be built on a 24-square-kilometre site in the Al-Saad area in east Riyadh. It will be delivered in two phases across six plots, each with a capacity of 1GW.

    The scope of infrastructure work covers:

    • Construction of 380kV/132kV/33kV electrical distribution network, two substations with a capacity of 500MVA and 200MVA, bulk supply point (2,000MVA)
    • Water network and fire protection systems
    • Sewage treatment plant and wastewater network
    • Stormwater systems
    • Roads
    • Underground cable and fibre optic networks
    • Landscaping works

    The client is being supported by Canadian engineering firm Hatch, France’s Egis and US-based firm JLL.

    Humain was launched in May last year to operate and invest across the AI value chain.

    Humain is building full-stack AI capabilities across four core areas: next-generation data centres, hyper-performance infrastructure and cloud platforms, and advanced AI models, including Allam.

    Also in May 2025, Humain signed preliminary deals with US chipmakers AMD and Nvidia to build multibillion-dollar advanced digital infrastructure in the kingdom.

    AMD said it will invest up to $10bn to deploy 500MW of AI compute capacity in Saudi Arabia over the next five years.

    In October, PIF and Saudi Aramco signed a non-binding term sheet setting out key terms under which Aramco would acquire a minority stake in Humain, with PIF retaining majority ownership.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16671267/main.jpg
    Yasir Iqbal
  • Abu Dhabi selects consortium for 2.5GW Taweelah C IPP

    4 May 2026

     

    Register for MEED’s 14-day trial access 

    A consortium of Al-Jomaih Energy & Water Company (Saudi Arabia) and Sembcorp Industries (Singapore) has been selected to develop the Taweelah C independent power producer (IPP) project in Abu Dhabi.

    The consortium will sign a power purchase agreement (PPA) in mid-May, a source told MEED.

    The combined-cycle gas turbine (CCGT) plant will have a capacity of 2.5GW. It will be located at the Al-Taweelah power and desalination complex, about 50 kilometres northeast of Abu Dhabi city.

    It is understood that China Energy Engineering Corporation (CEEC) will be the engineering, procurement and construction (EPC) contractor.

    Last September, MEED reported that state offtaker Emirates Water & Electricity Company (Ewec) had received three bids for the facility.

    The bidders included:

    • Al-Jomaih Energy & Water Company / Sembcorp Industries
    • Sumitomo Corporation (Japan) / Korea Overseas Infrastructure & Urban Development Corporation / Korean Midland Power
    • Korea Western Power Company / Etihad Water & Electricity (UAE) / Kyuden International (Japan)

    At the time, Mohamed Al-Marzooqi, chief asset development and management officer at Ewec, said the bids would make Taweelah C “one of the lowest tariff CCGT projects in the region”.

    The carbon-capture-ready facility had been scheduled to begin commercial operations in the fourth quarter of 2028.

    This was based on the initial timeline for a PPA to be signed in the fourth quarter of 2025.

    Taweelah C is part of Ewec’s wider programme to support the UAE’s Net Zero by 2050 Strategic Initiative and the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

    Ewec plans to raise solar power capacity to 18GW and wind capacity to 2.6GW by 2035, while reducing the carbon intensity of its power generation by more than half compared to 2019.

    Ewec is also expanding its low-carbon water desalination capacity, with the Taweelah reverse osmosis (RO) plant already operating as the world’s largest RO facility and additional projects, such as the Mirfa 2 RO and Shuweihat 4 RO, under way.

    By 2030, it expects 95% of Abu Dhabi’s installed water capacity to come from RO technology.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16670622/main0858.jpg
    Mark Dowdall
  • Dubai launches Blue Line metro tunnelling works

    4 May 2026

    Dubai has announced the launch of tunnelling works for the Dubai Metro Blue Line extension project.

    In a post on X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, announced the start of operations of the tunnel boring machine (TBM), which the Roads & Transport Authority (RTA) has named ‘Al-Wugeisha’.

    The TBM is 163 metres long, weighs more than 2,000 tonnes and will operate around the clock. The post added that its average excavation rate ranges from 13 to 17 metres a day.

    The Blue Line will connect the existing Red and Green lines. It will be 30 kilometres (km) long, with 15.5km underground and 14.5km above ground.

    The line will have 14 stations, seven of which will be elevated. There will be five underground stations, including one interchange station, and two elevated transfer stations connected to the existing Centrepoint and Creek stations.

    In December 2024, the RTA awarded a AED20.5bn ($5.5bn) main contract for the construction of the project to a consortium comprising Turkiye’s Limak Holding and Mapa Group, along with the Hong Kong office of China Railway Rolling Stock Corporation (CRRC).

    The consortium is responsible for all civil works, electromechanical works, rolling stock and rail systems. After completing the project, it will assist with maintenance and operations for an initial three-year period.

    According to an official statement, the Blue Line will have a capacity of 46,000 passengers an hour in both directions.

    The project is scheduled for completion in September 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16670584/main.jpeg
    Yasir Iqbal
  • Firms submit Jeddah distribution centre bids

    4 May 2026

     

    Contractors submitted bids on 26 April for an estimated SR140m ($37m) contract to build a distribution centre in Jeddah.

    Saudi Logistics Services Company (SAL) launched the tender on 11 March, as previously reported by MEED. The project will cover an area of about 37,000 square metres. Egyptian firm Cosmos-E Engineers & Consultants has been appointed as the project consultant.

    This tender follows the start of construction by Egyptian contractor Rowad Modern Engineering, a subsidiary of Elsewedy Electric Group, on the expansion of SAL’s facilities at King Khalid International airport in Riyadh. The scope of work includes rehabilitating and upgrading existing infrastructure, as well as constructing new supporting facilities and services.

    SAL also launched the tendering process in September last year for its SR4.2bn ($1bn) logistics zone in northern Riyadh, MEED previously reported. UAE-based Global Engineering Consultants is the consultant for that development.

    The logistics hub aims to meet demand for customised warehouses near King Khalid International airport and the Riyadh Metro. The project aligns with Vision 2030 and the National Transport & Logistics Strategy, which aims to strengthen the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16670338/main.gif
    Yasir Iqbal
  • Concerns increasing about delays to Iraq oil project

    4 May 2026

     

    Concerns are increasing among contractors about potential delays to PetroChina’s planned project to upgrade key infrastructure at Iraq’s Halfaya oil field, according to industry sources.

    The project, estimated at $200m, focuses on upgrading the utility system for the facility known as central processing facility 2 (CPF2).

    The project was tendered under the engineering, procurement, construction and commissioning (EPCC) contract model, and bids were submitted on 20 December 2025.

    One source said: “Bid evaluation is ongoing for this project. No decision has been made on the award and there are increasing concerns that there could be delays due to ongoing regional tensions.”

    Iraq’s oil and gas sector has been severely impacted by disruption to shipping through the Strait of Hormuz since the US and Israel attacked Iran on 28 February.

    Speaking on 2 May, Iraq’s deputy oil minister ​Basim Mohammed said that the country was producing 1.5 million ​barrels a day (b/d), down from about 4.3 million b/d before the US and Israel attacked Iran.

    Halfaya is one of the Iraqi fields whose production has been significantly reduced.

    On 5 March, MEED revealed that Iraq had prepared a sweeping four-part emergency plan for a large-scale oil-field shutdown to address the closure of the Strait of Hormuz.

    The second phase of the plan involved reducing production at Iraq’s Halfaya field by 50%.

    The scope of work for the project to upgrade the utility system at CPF2 includes:

    • Fresh water system modification
    • Oily water transfer facilities
    • A 3. 20” crude oil header replacement
    • Power plant fuel gas system upgrade
    • A new wet gas line from CPF1 to CPF2
    • A high-pressure fuel gas connection line
    • Backup cable installation
    • Adding process and utility facilities
    • Providing civil, structural and architectural services
    • Adding a heating, ventilation and air conditioning (HVAC) system
    • Piping, power supply and distribution infrastructure
    • Instrumentation and anti-corrosion systems

    Halfaya is located in the Maysan Governorate in southeastern Iraq and is one of the country’s seven giant oil fields.

    The field is operated by a partnership led by PetroChina, a subsidiary of CNPC. The partnership also includes France’s Total, Iraq’s state-owned South Oil Company and Malaysia’s Petronas.

    Projects to develop the Halfaya gas field have seen significant delays in recent years. Halfaya is the Maysan province’s largest field, with estimated reserves of 4.1 billion barrels.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16664182/main5635.jpg
    Wil Crisp