meed-logo

line1 line2 line3
SIGN IN / REGISTER

Chinese firm wins civil sub-contract on Marsa LNG project

19 May 2025

 

China National Chemical Construction Corporation (CNCCC) has won a sub-contract to perform general civil construction works on the upcoming 1 million tonne-a-year Marsa liquefied natural gas (LNG) bunkering and export terminal project in Oman.

The sub-contract has been awarded by France’s TechnipEnergies, as the main engineering, procurement and construction (EPC) contractor on the estimated $1.6bn LNG project being built in the sultanate’s northern port city of Sohar.

French energy major TotalEnergies is the majority stakeholder in the Marsa LNG project, holding an 80% interest. Omani state energy conglomerate OQ Group holds the remaining 20% stake. The partners recently broke ground on the project.

LNG production from the facility is expected to start in the first quarter of 2028, TotalEnergies and OQ said in a joint statement.

MEED previously reported that Technip Energies had awarded a couple of other sub-contracts to local firms.

Sarooj Construction Company won a sub-contract for temporary construction facilities at the Marsa LNG terminal project site. Industrial Technology Services (Intecs) was sub-contracted by Technip Energies to perform civil works and construct utility buildings.

The Marsa LNG project will primarily supply marine fuel to vessels such as container ships, tankers and large cruise ships, and is said to be the first marine LNG bunkering hub in the Middle East.

Last April, TotalEnergies awarded Technip Energies the main contract to execute EPC works on the Marsa LNG project.

US-based Chicago Bridge & Iron (CB&I) won a contract to build the main concrete LNG storage tank, which will have a capacity of 165,000 cubic metres, and to complete the associated piping upgrade. The firm described its contract as being “significant”, a term it uses to denote a value range of $100m-$250m.

In addition to awarding the EPC contracts for the project, TotalEnergies and OQ also achieved the final investment decision on the Marsa LNG project last April. Marsa LNG was formed in December 2021 through a joint-venture agreement between the two companies.

Marsa LNG infrastructure contracts

Along with the groundbreaking ceremony on 1 May, Oman’s Sohar Port & Freezone, where the Marsa LNG terminal is being built, also awarded three contracts covering infrastructure and other services related to the project.

WSP International’s Oman branch was awarded a consultancy services contract to provide project management, back-office support, design review, site supervision and contract management services, with the contract running from November 2024 to November 2028.

The second contract was signed with the Netherlands-headquartered Boskalis International’s Oman branch for dredging works, involving the removal of approximately 3.8 million cubic metres of material to develop the access channel, berth pocket and turning circle, with completion expected in September.

Sohar Port & Freezone announced the start of dredging works on the Marsa LNG project in March, when Boskalis was contracted for the job.

The third contract was awarded to Six Construct’s Oman branch, covering the construction of the LNG jetty, shore protection and drainage systems, with a duration of 16 months.

LNG production

The Marsa LNG facility will consist of a single processing train that will draw up to 150,000 cubic feet a day of natural gas feedstock from the Mabrouk Northeast field, located in Oman’s onshore Block 10 concession.

TotalEnergies is part of a consortium that operates the Block 10 hydrocarbons concessions in the sultanate. Oman’s Energy & Minerals Ministry signed a concession agreement in December 2021 with a consortium led by Shell Integrated Gas Oman, the Omani subsidiary of UK-based energy major Shell, to develop and produce natural gas from Block 10.

As part of the concession agreement, Shell operates Block 10, holding a 53.45% working interest, with OQ and Marsa LNG holding 13.36% and 33.19% stakes, respectively.

TotalEnergies is also a 22.5% stakeholder in the Block 11 onshore concession, from which the Marsa LNG project could draw gas feedstock in the future. Shell Development Oman is the majority (67.5%) stakeholder in Block 11, for which the Omani government signed an exploration and production sharing agreement in September 2022.

Solar-powered LNG terminal

The Marsa LNG complex will be completely electrically driven and supplied with solar power. The project will be “one of the lowest GHG [greenhouse gas] emissions intensity LNG plants ever built worldwide”, with a GHG intensity below 3 kilogrammes of carbon dioxide per barrel of oil equivalent, the partners said in a statement.

TotalEnergies said it is in an “advanced stage of discussions” with OQ’s renewable energy branch, OQ Alternative Energy, to jointly develop a portfolio of up to 800MW, including a 300MW solar project that will supply power to the Marsa LNG facility. The two companies will form a joint venture in which OQ Alternative Energy will own a 51% stake, with TotalEnergies holding the other 49%.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13905550/main.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • June 2025: Data drives regional projects

    30 June 2025

    Click here to download the PDF

    Includes: Top 10 Global Contractors | Brent Spot Price | Construction output

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/14171168/main.gif
    MEED Editorial
  • UAE-Turkiye financial links strengthen

    30 June 2025

    This package on UAE-Turkiye relations also includes:

    > UAE-Turkiye trade gains momentum
    > Turkiye’s Kalyon goes global

     

    Turkish bank DenizBank is one of Turkiye’s leading private banks and, as a wholly owned subsidiary of Emirates NBD since 2019, it is playing a leading role in developing business links between the UAE and Turkiye.

    Recep Bastug, who was appointed as DenizBank’s CEO in 2024, says there is great potential for trade between the two countries. 

    “Turkiye is a growing country,” he says. “We’ve had volatility over the past five years, but the Turkiye economy and the banking sector have been able to manage those periods successfully.”

    Having spent years with international institutions such as BBVA, Bastug has vast experience in the banking sector. “Turkish banks, especially private ones like DenizBank, are very successful. In terms of capital, balance sheet structure and digital transformation, we are in a strong position,” he says.

    Solid fundamentals

    Turkiye’s fundamentals remain solid with a diversified export-oriented economy, a young and skilled population of 85 million, and relatively low debt levels. “We are not a highly leveraged country. Our household debt-to-GDP ratio is low. With the right policy mix, we offer high potential for foreign investors,” says Bastug.

    That potential is increasingly being realised through growing engagement with the GCC and the UAE. “Turkiye’s connection with the Gulf is going up, and DenizBank is set to play a serious role in these relations. Day by day, Turkish companies are expanding their footprint in the region.”

    GCC projects

    Baştug says that many of these companies approach DenizBank to help facilitate their entry into Gulf markets. “Some of our clients are extremely well capitalised, but others need support for major projects. Just recently, one Turkish company announced a $3bn project in the region. We’re helping them connect with Emirates NBD and navigate the local financial landscape.”

    DenizBank is actively supporting the creation of trilateral partnerships – particularly between Turkiye, the UAE and Saudi Arabia. “We see huge opportunity in forming financial strongholds across these markets, leveraging Turkiye’s contractor experience, the UAE’s capital and Saudi Arabia’s scale,” says Baştug.

    DenizBank is already delivering results. “With Emirates NBD, we’ve identified 10 strategic cooperation areas, including trade finance, payments and capital markets. Thanks to this partnership, Emirates NBD has become the number one debt capital markets bank in Turkiye, even ahead of global players.”

    One area of growing activity is initial public offering (IPO) participation. “We’ve launched a mutual fund that allows Turkish private banking clients to participate in IPOs from the region, including from the UAE and Saudi Arabia. It’s a diversification strategy and helps retain wealth within the group.”

    Turkiye’s connection with the Gulf is going up, and DenizBank is set to play a serious role in these relations. Day by day, Turkish companies are expanding their footprint in the region
    Recep Bastug, DenizBank

    Inflation ends

    Despite the current inflationary environment, Bastug says there is a clear inflection point ahead. “We expect 2027 to be a turning point. Once we exit the inflationary accounting regime [in Turkiye], DenizBank will become one of the biggest contributors to Emirates NBD’s global balance sheet. Last year, we contributed $1.2bn. In 2027, it will be significantly more.”

    DenizBank is the fifth-largest private bank in Turkiye with about a 5% market share. “The largest private bank is at 13%. It’s not easy to close that gap – but we will do it. Our long-term goal, aligned with our shareholder, is to become the biggest and most successful private bank in the country.”

    The bank is especially focused on agriculture, SMEs, and export financing – sectors that are deeply relevant to
    Turkiye’s economic growth and to regional demand. “We are the leading agricultural bank in Turkiye, and we believe strongly in the sector’s future – both for local consumption and exports.”

    Regional opportunities

    Bastug also sees potential for engagement beyond the GCC, including in post-conflict reconstruction. “In the past, Turkiye had strong trade volumes with Syria. Even during wartime, commercial links remained. Once a stable environment emerges, there will be opportunities – especially in infrastructure.”

    While a physical branch presence is not currently being considered, DenizBank is prepared to support Turkish contractors operating in neighbouring countries. “We have the relationships and expertise to facilitate this growth. And culturally, we’re well aligned with the region – it helps make business smoother.”

    As Turkiye re-establishes economic momentum and Gulf economies look to deliver on long-term visions, DenizBank is positioning itself for a more active role in the region in the future. “We are preparing the bank for the next stage, and with the backing of Emirates NBD, we’re confident in our ability to lead.” 

    READ MORE
    > UAE-Turkiye trade gains momentum
    > Turkiye’s Kalyon goes global

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14170372/main.gif
    Colin Foreman
  • Multiply agrees to sell Pal Cooling to Tabreed and CVC

    30 June 2025

    Abu Dhabi-based investment company Multiply Group has agreed to sell all of its shares in its district cooling subsidiary Pal Cooling Holding (PCH) for AED3.8bn ($1bn) to a consortium comprising Engie-backed National Central Cooling Company (Tabreed) and CVC DIF.

    The transaction is still subject to regulatory approvals.

    MEED exclusively reported in May that a team comprising Tabreed and CVC was holding exclusive discussions to acquire PCH.

    Multiply Group initially acquired a 100% stake in PCH and its subsidiaries in July 2021.

    Multiply Group has been advised by Standard Chartered and Clifford Chance. Tabreed and CVC DIF have been advised by Citi, Synergy Consulting and White & Case.

    The transaction brings together two of the UAE’s leading district cooling players. PCH was founded in 2006 and operates five active district cooling plants across the UAE. The company maintains eight long-term concessions and strategic partnerships with some of the UAE’s leading real estate developers, servicing key residential, commercial and mixed-use developments – most notably on Abu Dhabi’s Reem Island.

    Tabreed owns and operates 92 plants, including 76 in the UAE, five in Saudi Arabia, eight in Oman, one in Bahrain, one in India and one in Egypt, in addition to other international projects and operations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14170511/main.jpg
    Colin Foreman
  • Iraq approves Basra housing project

    30 June 2025

    Iraq has approved plans to build a housing project in Basra that will offer about 5,000 homes in the first phase to tackle the country’s rising housing shortage.

    The project, which is endorsed by Iraq’s National Investment Commission (NIC), will cover an area of about 3 square kilometres.

    According to local media reports, Basra province governor Asaad Al-Idani said the project has already been awarded to a developer.

    Iraq has been gradually recovering since the war. The government initially prioritised infrastructure and public housing to stimulate economic growth, improve living standards and attract foreign investment.

    More recently, benefitting from higher oil prices and a period of relatively stable governance, Baghdad has expanded its focus to reconstructing and modernising the country’s deteriorating infrastructure.

    The Iraqi construction market has also seen significant investments from private real estate developers from the region. In May, Egyptian real estate developer Ora Developers announced that it had started construction on the Al-Wardi residential city project, which consists of more than 100,000 residential units covering about 61 million square metres (sq m) on the southeastern side of Baghdad.

    The move is the latest sign of international investors’ growing appetite for developing real estate in Iraq as part of the country’s post-war building initiatives.

    Also in May, another Egyptian firm, Talaat Moustafa Group Holding, said it was in negotiations with the NIC to develop a mixed-use project. The project, which will cover an area of about 14 million sq m and will be located in the southwest of Baghdad, is expected to contain about 45,000 residential units.

    The positive sentiment has been particularly buoyed by a robust 2024 budget, which allocated nearly $42bn to transport, social infrastructure and housing initiatives.

    Looking ahead, Iraq’s construction industry is expected to register an annual average growth rate of 4.9% in 2025-28, supported by further investments in energy, infrastructure and housing projects, according to UK analytics firm GlobalData.

    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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14170011/main.png
    Yasir Iqbal
  • Meraas announces Dubai City Walk expansion

    30 June 2025

    Register for MEED’s 14-day trial access 

    Local real estate developer Meraas has announced the City Walk Crestlane project as it continues to expand its City Walk residential community in the Al-Wasl area of Dubai.

    The City Walk Crestlane comprises two residential towers offering 198 one-, two-, three-, four- and five-bedroom units.

    The project is expected to be completed and handed over by the third quarter of 2028.

    Earlier this month, Meraas, which is part of Dubai Holding Real Estate, awarded a construction contract for another project at City Walk.

    The local firm Naresco Contracting was awarded a AED450m ($123m) contract for the main construction works on its Central Park Plaza residential project at City Walk.

    The project involves constructing two towers with 23 and 20 floors. Together, they will have 212 residential units.

    In May, Meraas awarded another local firm, Al-Sahel Contracting Company, a AED300m contract for the main construction works on Elara, which is phase seven of the Madinat Jumeirah Living masterplan in Dubai.

    The project involves building three residential towers with 234 apartments.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/14169472/main.jpg
    Yasir Iqbal