Related Articles

• 
  Amiral cogen eyes financial close

  26 April 2024

  The developer team for the cogeneration independent steam and power plant (ISPP) serving the Amiral petrochemicals complex in Jubail, Saudi Arabia is expected to reach financial close for the project before the end of the second quarter this year.

  Saudi Aramco Total Refining & Petrochemical Company (Satorp) signed a power and steam purchase agreement with a team that comprises the UAE's Abu Dhabi National Energy Company (Taqa) and Japan's Jera in March. 

  A special purpose entity owned by Taqa (51%) and Jera (49%) will develop the Amiral cogeneration plant on a 25-year build-own-operate basis, extendable by five years on mutual agreement.

  Taqa and Jera will also undertake the plant's operation and maintenance (O&M) through an O&M special purpose entity.

  "The target is to reach financial close by the end of May or June," a source familiar with the project tells MEED. 

  The planned facility is anticipated to have a design capacity of about 475MW of power generation and roughly 452 tonnes an hour of steam from advanced combined-cycle gas-fired technology.

  The firms said the plant is expected to be operational by 2027.

  "The Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems, and gas insulated switchgear interconnections while at the same time meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre," the firms said on 28 March.

  "The project also has provision for the future installation of a carbon dioxide capture plant and is capable of hydrogen cofiring."

  South Korean contracting company Samsung C&T will undertake the engineering, procurement and construction (EPC) contract for the Amiral cogeneration ISPP project.

  Steam cracker complex

  Integrated with the existing Satorp refinery in Jubail, the new complex aims to house one of the largest mixed-load steam crackers in the Gulf that can produce up to 1,650 kt/y of ethylene and other industrial gases.

  This expansion is expected to attract more than $4bn in additional investment in various industrial sectors, including carbon fibres, lubes, drilling fluids, detergents, food additives, automotive parts and tires. It is also expected to create about 7,000 local direct and indirect jobs.

  Satorp reached the final investment decision on Amiral in December 2022.

  Aramco owns 62.5% of shares in Satorp, while France's TotalEnergies has a 37.5% stake.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11716656/main.jpg

  Jennifer Aguinaldo
• 
  Acwa Power signs $356m Barka extension

  25 April 2024

  Barka Water and Power Company (BWPC), a subsidiary of Saudi utility developer Acwa Power, has received a letter of award from Nama Power and Water Procurement Company in Oman (PWP) for extending the power and water purchase agreement (PWPA) for the plant.

  The value of the contract extension is $356m, Acwa Power said in a bourse filing on 25 April.

  The award includes extending the operation of the power plant for eight years and 9 months with operations starting from 1 June 2024, and the water desalination plant for three years starting from 1 September 2024, with an extension option at PWP’s discretion for a further term of three years and another term of two years and nine 9 months for a total of 8 years and 9 months.

  BWPC is registered in Oman and listed in the Muscat Stock Exchange.

  The Barka independent water and power project (IWPP) is located 60 kilometres north of Muscat. It began commercial operations in June 2003, and a majority stake was acquired by Acwa Power in August 2010.

  At the time it started operations, the facility was contributing 6% of the electricity and 24% of the desalinated water in Oman.

  The gas-fired power plant has the capacity to generate 427MW of electricity using combine-cycle gas turbines, while the desalination plant that runs on multi-stage flash technology had an initial capacity of 91,000 cubic metres a day (cm/d).

  A succeeding independent water project entailed the development of a seawater reverse osmosis (SWRO) plant with a capacity of 45,000 cm/d, which became operational in 2014. A further expansion of the SWRO plant, with a capacity of 56,800 cm/d became operational two years later.

  Earlier this week, Acwa Power CEO, Marco Arcelli, said his company is in negotiations with long-term investors, such as pension funds, for the selective sale of assets.

  The report did not specify which assets are being considered for sale.  

  Last week, Arcelli told MEED that Acwa Power and Saudi sovereign wealth vehicle the Public Investment Fund (PIF) are discussing the fourth round of the renewable energy programme that PIF is implementing.

  However, he declined to comment on the outage of one of the company's concentrated solar power plants in Morocco, which is expected to result in $47m of lost revenue for the firm.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11713505/main.jpg

  Jennifer Aguinaldo
• 
  Abu Dhabi makes major construction investments

  25 April 2024

  Latest news from Abu Dhabi's construction and transport sectors:

  > Hassan Allam and Siemens confirm Hafeet Rail award
  > Contractors win Oman-Etihad Rail packages
  > Alpha Dhabi sells stake in construction subsidiary to ADQ
  > Abu Dhabi to launch Al Fahid island this year
  > Abu Dhabi approves $953m housing project for nationals
  > Contractor starts Bloom Casares package construction
  > Abu Dhabi launches Hudayriyat Island residences

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  Abu Dhabi is making significant investments in its construction sector. This was demonstrated in March, when the Abu Dhabi Executive Council (Adec) approved a budget of AED66bn ($18bn) for the development of 144 projects in the emirate. This includes projects in the areas of housing, education, human capital, tourism and natural resources.

  This investment follows on from a strong performance in 2023, when Abu Dhabi awarded contracts worth over $12bn in the construction and transport sector, according to regional projects tracker MEED Projects. This was 14% higher than the value of contracts awarded in 2022.

  Abu Dhabi also boasts a pipeline of $41bn-worth of projects in the construction and transport sector, of which $17bn-worth are in the bidding stage, promising significant opportunities for contractors in the short to medium term.

  Imminent projects include the UAE-Oman rail scheme, the high-speed rail link connecting Abu Dhabi and Dubai, and the real estate developments on the Ramhan and Al Fahid islands.

  Construction boom

  Construction is the biggest single sector in Abu Dhabi after oil and gas, and large-scale residential developments planned by both the government and private investors are the backbone of the sector.

  In early February, Abu Dhabi-based private real estate developer Aldar Properties said that it will invest AED5bn ($1.4bn) in developing new commercial assets at Yas Island, Saadiyat Island and Al Maryah Island, which will be delivered in phases between 2025 and 2027.

  Aldar is also preparing to launch the Al Fahid Island project this year. In February, the developer paid AED2.5bn ($680m) for a 4 million square metre land bank on the island to build a new waterfront development.

  Aldar has also awarded two contracts worth over AED7bn for the development of the Saadiyat Lagoons project. It awarded an estimated AED3bn ($820m) contract to the local contractor Innovo for package three and a AED4.1bn ($1.2bn) contract for packages two and four of the development to a team of local contractors Trojan Construction Group and Arabian Construction Company.

  Project developer Q Properties also awarded a AED584m ($159m) contract late last year to the local Trojan General Contracting for the development of phase one of the Reem Hills scheme in Abu Dhabi.

  In late March, Adec also approved a new housing development known as the Yas Canal residential project. Worth AED3.5bn ($953m), the scheme will be built on an area of 1.8 square kilometres at Al Raha Beach and will offer housing for UAE nationals.

  Transport links

  In recent months, Abu Dhabi has made strides in the development of its transport sector.

  The emirate’s most advanced transport scheme is the UAE-Oman rail network. In January, Oman-Etihad Rail Company received bids for three civil works packages for the project that will link the two countries.

  Etihad Rail is also preparing to start construction on the UAE’s high-speed rail project and has asked contractors to express interest in the early works for the line connecting Abu Dhabi and Dubai. The client is expected to launch prequalification for the project by the end of Q2 2024.

  Meanwhile, contractors have started work on the first phase of Abu Dhabi’s long-awaited light rail transit system. Phase one includes constructing a tram link connecting Electra Street, Al Maryah Island and Al Reem Island.

  Etihad Rail is also making progress on its AED50bn ($13.6bn) integrated cargo and passenger transport system running across the UAE, which was announced in late 2021. The scheme comprises three projects, the first of which is a freight rail component. The second project, covering passenger services, will connect 11 cities in the UAE, from Al Sila to Fujairah. The third project covers integrated transport services and will establish an innovation centre to incorporate smart transportation solutions into the overall plan.

  ---

  MEED's April 2024 special report on the UAE includes:

  > COMMENT: Non-oil activity underpins UAE economy
  > GVT & ECONOMY: Non-oil activity underpins UAE economy
  > BANKING: UAE banks seize the moment
  > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
  > DOWNSTREAM: UAE builds its downstream and chemical sectors
  > POWER: UAE marks successful power project deliveries
  > WATER: Dubai tunnels project dominates UAE pipeline
  > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector
  > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

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  Yasir Iqbal
• 
  Kuwait reviews 1.1GW solar prequalifications

  25 April 2024

  Kuwait’s Electricity, Water & Renewable Energy Ministry (MEWRE), through the Kuwait Authority for Partnership Projects (Kapp), is still reviewing the prequalification applications it has received for a contract to develop and operate a 1,100MW solar independent power producer (IPP) scheme.

  The project comprises the Al-Dibdibah and Shagaya renewable energy phase three, zone one project, Kapp said when it issued the request for qualifications to interested bidders in January.

  The 1,100MW solar photovoltaic (PV) IPP project is located in Jahra governorate, approximately 100 kilometres from the capital, Kuwait City.

  "They are still evaluating the prequalification submissions," one source tells MEED, without disclosing when the ministry or KAPP expects to publish the list of prequalified bidders for the contract.    

  In August 2022, a team led by London-headquartered consultancy firm EY won the transaction advisory contract for the next phases of Kuwait’s renewable energy programme.

  London-headquartered DLA Piper is the legal adviser, while Norwegian engineering services firm DNV is the client’s technical and environmental adviser.

  The Kuwait Institute for Scientific Research (Kisr), in partnership with the electricity ministry, developed the first phase of SREP. This comprised a 50MW parabolic trough CSP plant and a wind and solar PV plant, each with a 10MW capacity.

  2030-50 strategy

  Kuwait aims to have a renewable energy installed capacity of 22,100MW by 2030 as part of its new 20-year strategy that ends in 2050, which was announced in March.

  Electricity, Water & Renewable Energy Minister Salem Falah Al Hajraf confirmed that the strategy also involves the installation of distributed or rooftop solar farms, with the state procuring the energy output from solar photovoltaic (PV) farms.

  Kuwait's current overall power generation installed capacity is about 20GW. 

  https://image.digitalinsightresearch.in/uploads/NewsArticle/11712991/main.jpg

  Jennifer Aguinaldo
• 
  LIVE WEBINAR: Abu Dhabi Oil & Gas 2024

  25 April 2024

  Register now

  Agenda:

  • Overview of the Abu Dhabi oil, gas and petrochemicals projects market
  • Summary description of the main megaprojects, including project programmes
  • Analysis of active contracts and spending to date
  • Analysis of top contracts by work already awarded
  • Long-term capital expenditure outlays and forecasts
  • Highlights of key contracts to be tendered and awarded over the next 18 months
  • Top contractors and clients
  • Breakdown of spending by segment, i.e. oil, gas, petrochemicals – upstream, downstream, onshore and offshore 
  • Key drivers and challenges going forward 
  • Q&A session

  Time: Monday 6 May at 2:00 PM GST

  Hosted by: Indrajit Sen, oil and gas editor at MEED

  Indrajit Sen has been working with MEED since December 2017, covering the Middle East and North Africa region’s oil, gas, refining and petrochemicals markets, across the upstream, midstream and downstream segments. Indrajit closely tracks projects undertaken by the region’s energy giants such as Saudi Aramco, Adnoc, QatarEnergy and Petroleum Development Oman, as well as those being planned by international oil companies, particularly in the Gulf.

  Click here to register

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  Indrajit Sen