Engie stages GCC renewables comeback
6 September 2023
France-headquartered utility developer and investor Engie has been largely absent in the GCC region’s renewable energy sector. It has not bid for any solar independent power producer (IPP) contracts in the region since 2016, despite being prequalified to bid for successive tenders in Saudi Arabia over the past few years.
This is set to change as the market establishes a degree of normalisation and veers away from the race to the bottom in pricing, particularly for solar photovoltaic (PV) IPP contracts.
“We have capital to deploy globally, and yes, we have been selective in terms of which projects to bid for,” says Francois-Xavier Boul, Engie’s managing director for renewables in the Middle East and North Africa (Mena) and head of business development for Africa, Middle East and Asia (Amea).
The company’s prudent fiscal approach has precluded it from competing in previous renewable energy tenders in the GCC, where the likelihood of success in terms of internal rate of return does not match its targets, according to the executive.
However, Engie’s future approach is changing to match what it perceives to be an improving GCC market, with a certain level of repricing taking place.
For instance, the French utility developer is leading a consortium that aims to bid for the three planned wind IPP projects under the fourth round of Saudi Arabia’s National Renewable Energy Programme (NREP).
“We are actively pursuing those contracts,” Boul tells MEED, adding that his company, which is undergoing a major expansion in terms of employee headcount and presence in the Mena region, has the technical edge to compete for those contracts.
“We will keep an eye on every renewable project, particularly wind IPPs in Saudi Arabia, the UAE and Oman,” says Boul.
He stresses that a degree of price competitiveness and reasonable assumptions from competing developers is good for Engie as well as the offtakers.
“A normalised market offers a more level playing field [for developers]. It is more sustainable, unlike what we’ve seen in the past where there was a lot of competition, very few transactions and a high likelihood of projects incurring some losses.”
We will keep an eye on every renewable project, particularly wind IPPs in Saudi Arabia, the UAE and Oman
Francois-Xavier Boul, Engie
Egypt calling
A major wind IPP project in Egypt marks Engie’s return to the Mena region’s renewables scene.
It has teamed up with local firm Orascom Construction and Japan’s Toyota Tsusho Corporation to build a 3,000MW wind farm in West Sohag.
Unlike projects in the GCC that enjoy more than enough liquidity, the Egyptian project will face the all-important question of “How do you make the project bankable?” notes Boul.
The executive acknowledges that this project will require support from export credit agencies and entities such as the European Bank for Reconstruction & Development (EBRD) and Japan International Cooperation Agency (Jica) to take off.
Egypt’s currency status will require “a lot of financial discipline and rigorous sovereign oversight”, Boul says, adding that the project will require a “first-class finance structure”.
Nevertheless, the consortium is expected to kick off the technical feasibility study for the project soon. It will also start a survey campaign following the allocation of land for the project in late August.
The consortium has previously won two contracts to develop wind IPP projects in Egypt. The 262MW Ras Ghareb wind farm is operational, while another 500MW wind project in the Gulf of Suez reached financial close in April.
Engie’s Amea office is also keeping an eye on projects in Morocco and South Africa, as well as in India, Malaysia, the Philippines and Australia.
Boul says Engie has a fluid decision-making process in terms of capital allocation and evaluates each project against its target returns, which are usually contingent on the project’s risk profile.
“As a global utility provider, we can be selective,” says Boul. “The number of utility projects globally has been rising, but the rate of returns has not always matched the mitigating requirements [for these projects]. Ideally, we are looking for a balance, a win-win situation with offtakers … in an ecosystem that encourages repeat business.”
Cloudy forecast
A more palatable, normalising GCC renewable market does not mean there will be no further challenges, says Boul.
For example, easing solar PV supply chain constraints may mean decreased costs and oversupply, leading to further commoditisation in the market.
“There are remaining variables and it all comes down to the amount of risk developers and contractors are willing to take. As a prudent utility player, we are careful about mitigating and controlling risks.
“Rightly or wrongly, we have not invested in projects we deem too risky and have not incurred losses.”
Photo: ENGIE Green wind farm at Mont de la Grévière (Ardennes)
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Eni completes $1bn Libya gas project20 October 2026
-
Diriyah Company tenders East Wadi bridge20 October 2026
-
Kuwait selects firms for power works at housing projects20 October 2026
-
Taqa moves forward with Mirfa-Liwa scheme20 October 2026
-
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Eni completes $1bn Libya gas project
20 October 2026
Register for MEED’s 14-day trial access
Libya’s Mellitah Oil & Gas Company, a joint venture of Libya’s National Oil Corporation (NOC) and Italian oil and gas company Eni, has achieved mechanical completion on its Bouri gas utilisation project (GUP).
In a statement, Eni said that start-up procedures are currently under way, enabling the recovery of associated gas produced from the Bouri field, which is located in Libya’s western offshore area.
The main contract for the project, worth $1bn, was awarded to Italy’s Saipem in August 2023.
The project involved the construction and installation of the new Bouri gas recovery module and related tie-in infrastructure that enables the recovery and treatment of gas that was previously flared.
In its statement, Eni said that the project “represents one of the most significant emissions reduction initiatives in Libya’s energy sector”.
It also said that it would contribute to improving the environmental performance of the country’s production system by reducing greenhouse gas emissions by approximately 1.5 million tonnes of carbon dioxide a year.
The recovered gas will be supplied to the domestic market, adding about 700 million cubic metres a year and helping meet demand from the power generation sector.
The project will also support additional gas volumes available for export to Europe through the GreenStream pipeline.
Eni said: “The start-up of the Bouri GUP confirms the joint commitment of Eni and NOC to the development of Libya’s energy sector through initiatives that combine production growth, operational efficiency and environmental stewardship.
“The project is part of a broader strategy aimed at enhancing the value of the country’s gas resources while reducing the emissions intensity of upstream activities.”
Other key projects currently under way in Libya include the A&E Structures Project, which is focused on bringing new offshore gas resources onstream for both the domestic market and exports, as well as initiatives aimed at upgrading and optimising gas production and transportation infrastructures.
Eni has been present in Libya since 1959, and the company’s equity production in the country in 2025 amounted to approximately 162,000 barrels of oil equivalent a day.
The Bouri offshore field is part of Libya’s Block NC-41, located 120 kilometres north of the Libyan coast in the Mediterranean Sea.
It was first discovered in 1976 at a depth of 8,700 feet. It is estimated to contain 4.5 billion barrels in proven recoverable crude oil reserves and 3.5 trillion cubic feet of associated natural gas, with an annual production potential of 6 billion cubic metres.
The first development phase, costing nearly $2bn, was completed in 1990.
This was immediately followed by a second development phase, which entailed drilling 55 new wells and constructing three additional platforms. Production began from the oil platforms DP4 and DP3 in August 1998.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20770288/main3529.jpg -
Diriyah Company tenders East Wadi bridge
20 October 2026
Saudi Arabia’s Diriyah Company has invited contractors to bid on the construction of the DG II East Wadi Bridge, a key crossing within Riyadh’s Diriyah master development.
The bridge will provide an arterial road connection linking the Diriyah Gate Phase 2 (DG II) Infrastructure Package 1 and Package 2 zones.
The project scope involves the construction of a 100-metre clear-span, 44-metre-wide, single-span post-tensioned concrete bridge structure with integrated abutments and four architectural towers.
The contract also encompasses approach slabs, access roads, pavements, associated earthworks, architectural finishes and cladding, mechanical, electrical and plumbing installations, utility interfaces, bridge parapets, vehicle restraint systems, waterproofing, testing and commissioning, and associated temporary works.
The client will supply the detailed engineering design, and the selected contractor will develop the construction methodology.
Diriyah Company issued the prequalification tender on 14 September, with submissions due by 10 December.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20769223/main.png -
Kuwait selects firms for power works at housing projects
20 October 2026
Kuwait’s Public Authority for Housing Welfare (PAHW) has appointed contractors for works covering the supply and installation of 132kV underground cables at South Sabah Al-Ahmad Residential City.
The contracts relate to engineering, procurement and construction (EPC) packages for works for 28 main 132/11kV substations across four phases.
According to sources, Egypt’s Elsewedy Cables has won contracts for phases 1 and 3, while China’s TBEA Shandong Luneng Taishan Cable Company has won contracts for phases 2 and 4 of the development.
In April, MEED reported that PAHW had received at least five bids for each of the first two packages, with Elsewedy and TBEA offering $44m and $40.5m, respectively.
The first contract (phase 1) covers seven substations in zones N9, N7 and N5. The second contract (phase 2) covers seven substations in zones N10 and N5.
PAHW issued two further 132kV underground cable tenders for the South Sabah Al-Ahmad residential development at the end of May, as reported by MEED.
This included a contract (phase 3) covering the supply, extension and maintenance of 132kV underground cables linked to seven substations serving the N5, N6, N8 and N10 districts. Egytech Cables, a subsidiary of Elsewedy, submitted an offer of $39.95m, the lowest of four bids.
The other contract (phase 4) covers the supply, extension and maintenance of 132kV underground cables feeding eight main transformer substations serving the N1, N6 and N11 districts.
MEED reported in July that TBEA had submitted an offer of $44.06m for the contract.
South Saad Al-Abdullah
Separately, PAHW has appointed contractors for power transmission works at the South Saad Al-Abdullah residential development.
The local firm Sayed Hamid Behbehani & Sons has won a contract to supply, install and maintain 10 main 132/11kV transformer substations for the development’s third phase.
Another local firm, Al-Ahleia Switchgear, has won a contract to supply, install and maintain 10 main 132/11kV transformer substations for the project’s fourth phase.
As reported in August, the contractors submitted bids of $104.2m and $103.3m, respectively.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20761431/main.jpg -
Taqa moves forward with Mirfa-Liwa scheme
20 October 2026
Taqa Transmission and Taqa Distribution are advancing a major water transmission and distribution scheme serving Mirfa, Madinat Zayed and Liwa in Abu Dhabi, sources told MEED.
The project, originally estimated to cost $775m, has been in procurement for several years. According to sources, a request for proposals has been issued, with bids due on 5 January 2027.
The initial submission deadline was 11 November, before it was extended.
The project was previously tendered in December 2024, with contractors submitting bids for transmission and distribution packages in January 2025. As of August, the bids were still under evaluation. It is unclear whether the latest tender represents a revised procurement process for the same scheme.
The project comprises a water transmission system from Mirfa, alongside distribution networks serving farms and settlements in the western region.
According to details seen by MEED, the latest scope includes a pumping station at Mirfa with a capacity of 128 million imperial gallons a day, about 125 kilometres of transmission pipelines to Muzairah, with branches to Madinat Zayed and Liwa Summit, and storage tanks at the three locations.
The distribution network is divided into four geographic clusters covering Liwa East, Liwa West, Madinat Zayed and Seih Al-Kheir. The works include associated pipelines, pumping stations and storage facilities.
The earlier procurement was structured as an engineering, procurement and construction scheme, divided between transmission and distribution works.
As MEED understands, the latest tender is being pursued under a design, build and operate model, which extends the contractor’s responsibilities to operating the infrastructure after construction.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20758109/main2934.jpg -
Contractors prepare prices for Adnoc Onshore field facilities project
20 October 2026
Contractors are preparing commercial bids for Adnoc Onshore’s project to build on-plot and off-plot facilities at the Rumaitha and Shanayel fields in Abu Dhabi’s North East Bab oil field cluster.
The project will enhance and sustain crude output at Rumaitha and Shanayel at 45,000 barrels a day (b/d), supporting Adnoc’s Accelerated Integrated Programme 5 (AiP5) drive to lift capacity to 5 million b/d by 2027.
Adnoc Onshore issued the main tender for engineering, procurement and construction (EPC) works on 19 June. Contractors submitted technical bids by 5 August, sources told MEED.
The on-plot works include adding a crude processing train, produced water treatment and reinjection systems, surface water pumps, and multi-stage gas compression and dehydration units. Works also include utilities, safety and control systems, modifications to existing Phase 1 units and 220kV power infrastructure.
The off-plot scope includes installing and tying in new gas-lifted producer and water-injection wells, as well as building and expanding wellhead clusters. Contractors will also lay crude-gathering, water-injection and gas-export pipelines connecting to the Adnoc Gas network and extend 33kV overhead power lines across the fields.
The tender follows Adnoc Onshore’s shift in strategy for the wider North East Bab development – comprising the Al-Nouf, Rumaitha and Shanayel fields – after scrapping an earlier engineering, procurement and construction management (EPCm) approach. MEED reported in December that the operator had cancelled an off-plot EPCm contract awarded to China Petroleum Engineering & Construction Corporation (CPECC) in October 2024. Adnoc later cancelled a separate on-plot EPCm tender that it received bids for in the second quarter of 2025.
In addition to the North East cluster, Adnoc Onshore continues to make progress on EPC works for another similar project to build off-plot facilities at the South East cluster of oil fields in Abu Dhabi, which is also integral to Adnoc Group’s AiP5 campaign.
The South East cluster comprises the Asab, Mender, Qusahwira, Sahil and Shah fields and accounts for approximately a third of Adnoc Onshore’s oil production capacity.
MEED previously reported that Adnoc Onshore awarded CPECC the EPC works for the South East off-plot facilities project, with the contract value estimated at around $1.2bn.
CPECC is also performing EPC works on the South East on-plot facilities project in a consortium with Greece-headquartered Archirodon. Adnoc Onshore awarded an estimated $1.5bn contract for that project to the consortium in December 2024, with EPC works scheduled for completion in 2027.
ALSO READ: Adnoc Onshore seeks bids for Bu Hasa field EOR project
https://image.digitalinsightresearch.in/uploads/NewsArticle/20757699/main.jpeg