Engie submits lowest bid for Madinat Zayed power plant
16 April 2025
French utility developer Engie has submitted the lowest bid for the contract to develop and operate the Madinat Zayed open-cycle gas turbine (OCGT) power generation plant project in Abu Dhabi.
Engie offered a levelised cost of electricity of 103.9544 fils (28 $cents) a kilowatt-hour (kWh) for the contract.
A consortium of Saudi Arabia's Aljomaih Energy & Water and a subsidiary of the local Etihad Water & Electricity submitted the second-lowest bid of 107.86846 fils/kWh.
The third bidder, a consortium of Egypt's Orascom Construction and Belgium's Besix, submitted the highest bid of 126.980 fils/kWh.
The three teams submitted their proposals for the contract on 28 March.
The Madinat Zayed independent power project is expected to begin commercial operations in Q3 2027. It will provide up to 1,500MW of backup generation, which can be operational “at very short notice”.
“Gas-fired plants like Madinat Zayed are key to ensuring a reliable energy supply while the country transitions to a decarbonised water and electricity system,” state utility and offtaker Emirates Water & Electricity Company (Ewec) said when it issued the tender for the contract in July last year.
“[This type of plant] will be particularly important for supporting the growth of solar power, providing crucial flexibility during peak power demand periods and acting as a bridge to a future powered exclusively by clean and renewable sources.”
Major capacity buildout
Abu Dhabi’s current electricity generation installed capacity is about 22GW, with gas-fired plants accounting for 68.7% of the total and renewable and nuclear power contributing 12% and 19%, respectively.
Construction work is under way for the 1.5GW Al-Ajban solar photovoltaic (PV) power plant and a 2.5GW combined-cycle gas turbine (CCGT) plant in Fujairah.
Six major generation projects in Abu Dhabi are expected to be awarded this year. These are the 2.5GW Taweelah C CCGT scheme, the Al-Khazna and Al-Zarraf solar PV schemes, the Al-Sila wind facility and Bess 1, in addition to the Madinat Zayed OCGT scheme.
In January, Ewec and Abu Dhabi Future Energy Company (Masdar) signed a power-purchase agreement for a 5,200MW solar PV plant with a 19 gigawatt-hour battery energy storage system (bess), which is expected to provide round-the-clock solar power.
The project is expected to reach financial close this year.
Correction: The fils to $cents conversion is edited on 23 April.
MEED’s April 2025 report on Saudi Arabia includes:
> GOVERNMENT: Riyadh takes the diplomatic initiative
> ECONOMY: Saudi Arabia’s non-oil economy forges onward
> BANKING: Saudi banks work to keep pace with credit expansion
> UPSTREAM: Saudi oil and gas spending to surpass 2024 level
> DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
> POWER: Saudi power sector enters busiest year
> WATER: Saudi water contracts set another annual record
> CONSTRUCTION: Reprioritisation underpins Saudi construction
> TRANSPORT: Riyadh pushes ahead with infrastructure development
> DATABANK: Saudi Arabia’s growth trend heads up
Exclusive from Meed
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Three bids submitted for Riyadh-Qassim IWTP
18 September 2025
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Saudi Arabia seeks firms for six renewable projects
17 September 2025
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Qatar tenders Smaisma infrastructure contract
17 September 2025
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Dragon Oil to boost exploration and production in Egypt
17 September 2025
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Construction launched for final major projects of Iraq’s GGIP
17 September 2025
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Three bids submitted for Riyadh-Qassim IWTP
18 September 2025
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State water offtaker Saudi Water Partnership Company (SWPC) has received three bids from the private sector for the development of the Riyadh-Qassim independent water transmission pipeline (IWTP) project.
The bids were submitted by two consortiums and one individual company.
The first consortium comprises Saudi firms Al-Jomaih Energy & Water, Al-Khorayef Water & Power Technologies, AlBawani Capital and Buhur for Investment Company.
The second consortium comprises Bahrain/Saudi Arabia-based Lamar Holding, the UAE's Etihad Water & Electricity and China’s Shaanxi Construction Installation Group.
The third bid was submitted by Saudi Arabia's Vision Invest.
In August, MEED exclusively reported that SWPC had extended the bid submission deadline again for a contract to develop and operate the project.
The deadline for bids was 17 September.
The project will have a transmission capacity of 685,000 cubic metres a day. It will include a pipeline length of 859 kilometres (km) and a total storage capacity of 1.59 million cubic metres.
The scheme is the third IWTP contract to be tendered by SWPC since 2022.
The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which was awarded to a team of Riyadh-based companies comprising Al-Jomaih Energy & Water, Nesma Group and Buhur for Investment Company.
Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model.
Commercial operations are expected to commence in the first quarter of 2030.
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Saudi Arabia seeks firms for six renewable projects
17 September 2025
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Saudi Arabia's principal buyer, Saudi Power Procurement Company (SPPC), has invited interested companies to prequalify for the contracts to develop and operate solar photovoltaic (PV) and wind independent power producer (IPP) projects with a total combined capacity of 5,300MW.
The following schemes comprise round seven of the kingdom's National Renewable Energy Programme (NREP):
- 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf Province)
- 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail Province)
- 600MW Tathleeth solar PV IPP (Tathleeth, Aseer Province)
- 500MW South Al-Ula solar PV IPP (Al-Ula, Medina Province)
- 1,300MW Bilgah wind IPP (Bilgah, Medina Province)
- 900MW Shagran wind IPP (Shagran, Medina Province)
These projects are part of the NREP, which aims to achieve an optimal energy mix and supply 50% of the kingdom's electricity from renewable energy by 2030.
Earlier rounds under the NREP have already put in place large capacities.
Round six solicited around 4,500MW of solar and wind projects:
- 1,500MW Dawadmi wind IPP (Riyadh)
- 1,400MW Najran solar PV IPP (Najran)
- 600MW Samtah solar PV IPP (Jizan)
- 600MW Al-Darb solar PV IPP (Jizan)
- 400MW Al-Sufun solar PV IPP (Hail)
In April, MEED reported that prequalified developers were forming teams to bid for the contracts to develop solar farms under the sixth round of the NREP.
A separate set of bidders were prequalified for the 1,500MW Dawadmi wind farm, with contracts due to be awarded before the end of the year.
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Qatar tenders Smaisma infrastructure contract
17 September 2025
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Qatar’s Public Works Authority (Ashghal) has tendered a contract inviting construction firms to bid for the remaining works on roads and infrastructure in the small seaside town of Smaisma.
The contract covers package two in the south area of Smaisma, located 52 kilometres (km) north of Hamad International airport.
The scope of work includes the completion of the remaining works and remedial works on three zones. Each zone is further divided into three sub-zones.
The scope also covers the remaining works on road C1017.
The contract duration is two years from the start of construction works.
The tender was floated on 15 September with a bid submission date of 28 October.
The latest notice follows the tendering for the construction of roads and infrastructure in Wadi Al-Banat North (Zone 70).
Market overview
After 2019, there was a consistent year-on-year decline in contract awards in Qatar’s construction and transport sectors. The total value of awards in that year was $13.5bn, but by 2023 it had fallen to just over $1.2bn.
In 2024, the value of project contract awards increased to $1.7bn, bucking the downward trend in the market in the preceding four years.
Of last year’s figure, the construction sector accounted for contract awards of over $1.2bn, while transport contract awards were about $200m.
There are strategic projects in the bidding phase in Qatar worth more than $5bn, and these are expected to provide renewed impetus to the construction and transportation market, presenting opportunities for contractors in the near term.
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Dragon Oil to boost exploration and production in Egypt
17 September 2025
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Dubai-based Dragon Oil has signed a deal with the state-owned national oil company Egyptian General Petroleum Corporation (EGPC), agreeing to increase exploration and production activities in the Gulf of Suez.
Under the terms of the agreement, Dragon Oil will make investments worth about $30m.
This will fund activities including a programme to drill at least two new wells in the East El-Hamd area.
Abdulkarim Ahmed Al-Mazmi, the acting chief executive of Dragon Oil, said: “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability.”
Dragon Oil is wholly owned by Emirates National Oil Company, which is fully owned by the Government of Dubai.
Al-Mamzi said that the new investments are part of Dragon Oil’s broader strategy to expand in regional markets and to strengthen its position in the oil and gas sector, in line with the directions of the government of the UAE, and in particular the Government of Dubai.
The agreement was signed at the EGPC headquarters in Cairo.
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Construction launched for final major projects of Iraq’s GGIP
17 September 2025
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Officials have announced the start of construction on Iraq’s Common Seawater Supply Project (CSSP) and the full field development of the Ratawi oil field, which is also known as the Artarwi field.
The two projects are the two last major contracts of the Gas Growth Integrated Project (GGIP).
The GGIP is led by France’s TotalEnergies, which is the operator and has a 45% stake in the project.
Its partners are Iraq’s state-owned Basra Oil Company, which has a 30% stake, and QatarEnergy, which has a 25% stake.
An event in Baghdad to mark the launch of the two projects was attended by senior officials including Patrick Pouyanne, the chairman and chief executive of TotalEnergies; and Saad Sherida Al-Kaabi, who is Qatar’s Minister of State for Energy Affairs, as well as the president and chief executive of QatarEnergy.
In a statement, TotalEnergies said: “All four parts (natural gas, solar, oil, water) of the GGIP are now in the execution phase.”
The CSSP will be built on Iraq's coast, near the town of Um Qasr. It will process and transport 5 million barrels a day (b/d) of seawater to the main oil fields in southern Iraq.
Treated seawater will be substituted for the freshwater currently taken from the Tigris, Euphrates and aquifers to maintain pressure in the oil wells.
The project is expected to help alleviate water stress in the region and free up to 250,000 cubic metres of freshwater a day for irrigation and local agriculture needs, according to TotalEnergies.
The Ratawi redevelopment was launched in September 2023. Phase one aims to increase production to 120,000 b/d of oil and is expected to come on stream by early 2026.
The launch of phase two, the full field development, will enable production to be increased to 210,000 b/d starting in 2028, with no routine flaring, according to TotalEnergies.
In a statement, it said that all 160,000 cubic feet a day (cf/d) of associated gas produced will be fully processed by the 300,000 cf/d Gas Midstream Project (GMP), the construction of which began in early 2025.
The GMP, which will also treat previously flared gas from two other fields in southern Iraq, will deliver processed gas into the national grid, where it will fuel power plants with a production capacity of approximately 1.5GW, providing electricity to 1.5 million Iraqi households.
An early production facility to process 50,000 cf/d of associated gas will start in early 2026, together with the Ratawi phase one oil production.
Pouyanne said: “We are delighted today to award the two final contracts of the GGIP, in particular the seawater treatment plant, which has been long awaited by the oil industry in Iraq.
“In less than two years since the GGIP effective date in August 2023, TotalEnergies and its partners have fully executed their commitment towards the people of Iraq and launched all projects included in the multi-energy GGIP project, the best showcase of TotalEnergies' transition strategy.
“All these projects will bring a significant contribution to the Iraq economy and employ during the construction phase 7,000 Iraqi nationals.
“Furthermore, I am proud to confirm that the first phase of the associated gas, oil and solar projects will start up as soon as early 2026.”
Turkiye’s Enka has signed a contract to develop a central processing facility at the Ratawi oil field as part of the second phase of the field’s development.
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