meed-logo

line1 line2 line3
SIGN IN / REGISTER

Chinese companies win 95% of all Iraqi energy projects

6 September 2024

Commentary
Wil Crisp
Oil & gas reporter

Companies headquartered in China have won 95% of all major project contracts awarded in Iraq’s oil, gas, chemicals and power sectors so far this year, as they increase their dominance in the market.

A total of $12.1bn in energy project contracts were won by Chinese companies during the first eight months of 2024, according to data gathered by regional project tracker MEED Projects.

The only major award so far this year that was not won by a company or partnership that was 100% Chinese, was the contract to rehabilitate the Baiji 2 gas-fired power station, which is estimated to be worth $1.3bn by MEED Projects.

This contract was awarded to a consortium of Beijing-headquartered China State Construction Engineering Corporation (CSCEC) and German technology conglomerate Siemens.

Commenting on the figures, one industry source said: “China has been a dominant force in Iraq’s energy sector for a long time and this is only increasing as time passes.

“The huge presence that China has in the country’s energy sector is a source of concern for Iraq’s leadership, which doesn’t want to cede control of so many important infrastructure projects to companies from any single country.”

“The problem is, other countries are reluctant to take on the risks of doing business in Iraq and at the same offer the competitive prices that Chinese contractors can offer.”

The biggest energy project contract won by a Chinese contractor so far this year is the agreement for the development of the Al-Faw Investment Refinery project.

The client on the project, state-owned Southern Refineries Company, signed a contract with CSCEC in May this year.

The refinery will have a capacity of 300,000 barrels a day and will produce oil derivatives for both domestic and international markets.

The project will be carried out in two stages. The first phase will involve refining operations, while the second will involve constructing a petrochemicals complex with a capacity of 3 million tonnes a year.

The wider project also includes the construction of a 2,000MW power plant and the establishment of the Al-Faw Academy for Refinery Technology, to train 5,000 Iraqi workers that will eventually work at the facility.

Hualu, a subsidiary of China National Chemical Engineering Company (CNCEC), signed a preliminary principles agreement for the project in December 2021.

At the time, Iraq’s Oil Ministry said that the project would have an investment value of $7bn-$8bn.

MEED Projects has estimated that the contract value of the deal signed with CSCEC in May for the refinery project is about $4bn.

Other energy project contracts won by Chinese companies during the first eight months of this year included the contract for the Artawi 1,000MW photovoltaic solar power plant in Basra.

This contract, estimated to be worth $1bn, was awarded to China Energy Engineering International Group.

Chengdu-based DongFang Electric Corporation was awarded the main contract for a project to convert the Baghdad South power plant into a combined-cycle gas turbine power plant.

The project is estimated to be worth $85m and will increase the capacity of the power plant by 125MW-625MW.

Also this year, a subsidiary of PetroChina, the listed arm of state-owned China National Petroleum Corporation, signed an agreement to develop Iraq’s Nahr Bin Umar onshore gas field.

The subsidiary, PetroChina Halfaya, was awarded the build-own-operate-transfer contract, which is estimated to be worth about $400m.

Iraq’s Oil Ministry said that the field will have an initial output capacity of 150 million cubic feet a day.

The project is expected to be completed within 36 months and will include the construction of gas-gathering facilities, storage tanks and pipeline networks to supply gas to power stations.

Strong performance

Chinese contractors also performed well in Iraq’s energy sector in terms of the value of contract awards in 2023.

Last year, Chinese contractors won $2.3bn in Iraqi energy sector contracts, almost half of the $4.8bn that was awarded.

Looking at the data for 2023 and the first eight months of 2024 together, Chinese companies won $14.5bn in contracts, 82% of the $17.6bn in energy project contracts awarded over the period.

The second closest competitors were companies from Germany, which won just over $1bn in contracts, 6% of all awards.

Iraqi companies were third, winning $816m in contracts, according to the data compiled by MEED Projects.

Contracts were also won by companies from Italy, the Netherlands and Turkiye.

Iraq is currently in the midst of a push to try and increase the volume of work being carried out by US companies in the country’s energy sector.

Earlier this month, Iraq announced that it was planning to offer about 10 gas exploration blocks to international companies in a new licensing round that will be launched during a visit to the US by Iraqi Oil Minister Hayan Abdel-Ghani.

Abdel-Ghani said that he will be specifically targeting US companies in the upcoming round.

Earlier this year, the US international oil and gas company ExxonMobil completed its exit from Iraq’s West Qurna-1 oil field, handing over operatorship to PetroChina.

Exxon’s plan to exit the West Qurna-1 oil field was first announced in April 2021, when Iraq’s Oil Ministry said the US-based oil company was considering selling its 32.7% stake.

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/12460160/main3355.jpg
Wil Crisp

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

Click here to register
Exclusive from Meed
Related Articles
  • Local firm wins contract for Kuwait power project

    19 November 2025

    Local firm Alghanim International has won a contract to provide engineering services at the Subiya power and water distillation plant.

    Kuwait’s Central Agency for Public Tenders approved the award following a request from the Ministry of Electricity, Water & Renewable Energy.

    The contract, valued at $286m, covers engineering, supply, installation, operation and maintenance services to convert the 250MW second phase of the plant’s open-cycle gas turbines to combined-cycle gas turbines.

    The upgrade is intended to increase efficiency and provide additional generation capacity during periods of high demand.

    In July, MEED reported that Alghanim had submitted the lowest bid for the tender ahead of local firms Al-Daw Engineering General Trading & Contracting and Al-Zain United General Trading & Contracting.

    In 2024, US-based GE Vernova completed separate upgrades of four GE Vernova 9F.03 class gas turbines at the 2GW Sabiya combined-cycle power plant. Alghanim International acted as GE’s local engineering partner for that work.

    The Subiya power and water distillation plant is the largest power and water plant in Kuwait, with a power generation capacity of 7,046.7MW, accounting for 35% of the country’s installed capacity.

    It has a water desalination capacity of 100 million imperial gallons a day.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15116135/main.jpg
    Mark Dowdall
  • UKEF issues $3.5bn interest letter for Al-Maktoum airport

    19 November 2025

    Register for MEED’s 14-day trial access 

    The UK’s export credit agency UK Export Finance (UKEF) has issued a $3.5bn expression of interest letter to support the participation of UK businesses in the $35bn expansion of Al-Maktoum International airport, which is also known as Dubai World Central (DWC).

    Chris Bryant, UK minister for trade, handed the letter to Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai Aviation Engineering Projects (DAEP), and Paul Griffiths, CEO of Dubai Airports.

    Letters of interest from UKEF, although not binding commitments, help ensure that UK exporters are given every opportunity to bid for contracts on a project. This is typically achieved by providing financial solutions in exchange for an agreed level of UK content used on the project.  

    Previous letter

    It is not the first time UKEF has issued a letter of interest for the expansion of Al-Maktoum International airport. In 2014, it issued a $2bn letter of interest. In a statement at the time, UKEF said five prime UK-based contractors were being supported, along with UK suppliers across the supply chain.

    The five prime contractors were Carillion, Kier, Balfour Beatty, Laing O’Rourke and Interserve. Of those five companies, Carillion entered liquidation in 2018 and Interserve entered administration in 2019. Balfour Beatty sold its shareholding in Dubai-based Dutco Balfour Beatty in 2017.

    Although some progress was made on the project after the UKEF offer in 2014, the scheme stalled and was revived again in April 2024, when Dubai approved new designs for the airport.

    Project progress

    Since then, the project client, DAEP, has been awarding and tendering contracts for the first construction packages. It has awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works for the terminal building are being undertaken by Abu Dhabi-based Tristar E&C.

    DAEP is also close to formally awarding a contract for the substructure works for the West Terminal and Concourse One, Concourse Two and Concourse Three.

    Tendering is also ongoing for an automated people-mover (APM) system. The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. Construction works on the project’s first phase are expected to be completed by 2032.

    The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Dubai has said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    This aviation package also includes:

    > Middle East invests in giant airports
    > Broader region upgrades its airports
    > Global air travel shifts east

     

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115788/main.jpg
    Colin Foreman
  • Riyadh gives Expo infrastructure bidders more time

    19 November 2025

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), which is tasked with delivering the Expo 2030 Riyadh venue, has extended the deadline for firms to submit commercial offers for the contract to undertake the initial infrastructure works at the site to 23 November.

    ERC had initially set deadlines of 26 October and 9 November for the submission of technical and commercial bids, respectively.

    The tender for the project’s initial infrastructure works was issued in September, as MEED reported.

    In October, MEED revealed that 16 firms had been invited to bid for the contract to undertake the initial infrastructure works at the Expo 2030 Riyadh site.

    The firms invited to bid include:

    • Shibh Al-Jazira Contracting (local)
    • Hassan Allam Construction (Egypt)
    • El-Seif Engineering Contracting (local)
    • Al-Ayuni Investment & Contracting (local)
    • Kolin Construction (Turkiye)
    • Al-Yamama Trading & Contracting Company (local)
    • Saudi Pan Kingdom (local)
    • Unimac (local)
    • Mapa Insaat (Turkiye)
    • Yuksel Insaat (Turkiye)
    • IC Ictas / Al-Rashid Trading & Contracting (Turkiye/local)
    • Mota-Engil / Albawani (Portugal/local)
    • Almabani / FCC Construction (local/Spain)

    The overall infrastructure works – covering the construction of the main utilities and civil works at Expo 2030 Riyadh – will be split into three packages:

    • Lot 1 covers the main utilities corridor
    • Lot 2 includes the northern cluster of the nature corridor
    • Lot 3 comprises the southern cluster of the nature corridor

    MEED previously reported that ERC was expected to issue the tender for some of the infrastructure packages in September.

    In July, US-based engineering firm Bechtel Corporation announced it had won the project management consultancy deal for the delivery of the Expo 2030 Riyadh masterplan construction works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    The Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth vehicle, launched ERC in June as a wholly owned subsidiary to build and operate facilities for Expo 2030.

    In a statement, the PIF said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115697/main.jpg
    Yasir Iqbal
  • NHC and Turkish firm sign $266m investment deal

    19 November 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Housing Company (NHC) has signed an investment agreement worth over SR1bn ($266m) with Turkiye’s Emlak Konut to develop new residential communities within the Mecca Gate project in Mecca.

    The agreement was signed on the sidelines of the Cityscape Global 2025 event in Riyadh.

    Emlak Konut will develop 1,000 residential villas spanning over 255,000 square metres (sq m).

    The latest agreement follows the NHC’s signing of deals worth over SR8.5bn ($2.2bn) for the development of two mixed-use and residential communities in Riyadh.

    The first agreement, worth over SR5.2bn ($1.4bn), was signed with local developer Retal Urban Development Company.

    The deal encompasses the development of 4,839 residential units in the Al-Fursan suburb of Riyadh.

    The other contract, worth over SR3.3bn ($880m), was signed with a joint venture of Egypt’s Hassan Allam Holding and local developer Tilal Real Estate for a mixed-use project in the Khozam district.

    The development will cover an area of over 228,000 sq m.

    It will be delivered through Grova Developments, the development arm of Hassan Allam Holding.

    In 2023, NHC and Saudi Arabia’s Housing Ministry signed investment agreements totalling more than SR24bn ($6.4bn) to launch the Al-Fursan residential project.

    Al‑Fursan is described as the largest scheme in terms of area and number of housing units that NHC is implementing in partnership with other real estate developers. 

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and become one of the 10 wealthiest cities in the world.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15115626/main.png
    Yasir Iqbal
  • Egypt announces oil discovery in Western Desert

    19 November 2025

    Register for MEED’s 14-day trial access 

    A new gas discovery has been made in Egypt’s Western Desert region, according to a statement released by the Ministry of Petroleum & Mineral Resources.

    The discovery was made by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation (EGPC) and US-headquartered Apache Corporation.

    The field is expected to be brought online this week, according to the ministry.

    The reserves were discovered after drilling the exploratory well ‘Gomana-1’, the ministry said.

    It added that sensors confirmed the presence of gas reserves, and tests indicated that the well is expected to have a production rate of around 36 million standard cubic feet of gas a day.

    Further tests are ongoing, and the initial evaluation of the well’s reserves is currently being finalised.

    The ministry said that the discovery followed the introduction of new incentives designed to encourage additional gas investment within Khalda’s areas of operation.

    Earlier this month, Egypt started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid.

    The country is currently pushing to increase domestic gas production in order to meet domestic demand and reduce its import bill.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15112551/main.png
    Wil Crisp