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• 
  Oman extends deadline for $150m water transmission project

  11 August 2026

  

   

  State-owned Nama Water Services (NWS) has extended the bid submission deadline for a contract to build a $150m water distribution network project in Jalan Bani Bu Ali Wilayat in Oman’s South Sharqiyah Governorate.

  The new deadline is 24 August. The original deadline was 17 August.

  The engineering, procurement and construction (EPC) contract covers the development of water distribution infrastructure in the JBBA North and JBBA Coastal areas.

  The scope includes new water storage reservoirs, elevated tanks, booster pump stations and transmission and distribution pipelines.

  The project includes two reservoirs in the JBBA North area with a capacity of 40,000 cubic metres, along with about 58 kilometres of ductile iron distribution pipelines and 343km of high-density polyethylene (HDPE) pipelines.

  The JBBA Coastal works include reservoirs at Asilah, Ashkarah, Wadi Sal and Khabbah, as well as elevated tanks and pump stations. The scope also includes about 38.5km of 400mm-diameter ductile iron transmission pipeline.

  NWS issued the main contract tender on 4 June. UK-headquartered Mott MacDonald is the main consultant on the project.

  The project is one of three water distribution schemes being tendered under a wider $350m masterplan covering Jalan Bani Bu Hassan, Jalan Bani Bu Ali, and Al-Kamil and Al-Wafi wilayats.

  The Jalan Bani Bu Hassan scheme includes a new 40,000-cubic-metre ground reservoir at Al-Sayah Al-Sharqi 4, a pump station and associated transmission and distribution pipelines. It will also include a pump station serving the Industrial Area and an inline booster pump station supplying Al-Mintajjah and Sariq Haryah.

  The projects covering Jalan Bani Bu Ali and Al-Kamil and Al-Wafi wilayats are estimated to cost £100m each. The bid submission deadline for both projects is 17 August.

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  READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

  Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

  To see previous issues of MEED Business Review, please click here

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  Mark Dowdall
• 
  Adnoc Gas expects Habshan to hit full capacity in 2027

  11 August 2026

  Adnoc Gas hopes to restore full output capacity at its Habshan gas processing facility in Abu Dhabi by the second quarter of next year, following attacks on the facility in March and April during the US-Iran conflict.

  Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), said it has already restored 85% of the Habshan facility’s capacity, surpassing the year-end target set in May.

  The Habshan complex is one of the largest gas processing facilities in the UAE and the wider Middle East and North Africa region. It has a processing capacity of 6.1 billion cubic feet a day. The complex comprises five trains and 14 processing units that receive gas feedstock from onshore and offshore fields in Abu Dhabi.

  The Habshan facility was struck at least three times in March and April by Iranian drones and missiles. On 19 March, UAE authorities suspended operations at Habshan after it was affected by debris falling from Iranian missiles intercepted by the country’s air defence systems.

  Adnoc Gas then announced on 23 March that operations were continuing safely across its asset base, after similar missile and drone attacks by Iran on facilities owned by its parent, Adnoc Group, although it did not specifically mention the Habshan plant.

  The worst of the attacks on Habshan took place on 3 April, when Iranian drones intercepted by the UAE’s air defence systems caused damage at the site, resulting in the death of an engineer working at the facility for Egyptian contractor Petrojet during an evacuation. Four other contractors sustained minor injuries, but were later discharged from hospital after receiving treatment.

  ALSO READ: Adnoc Gas to move prudently on Bab Gas Cap project

  On 8 April, Abu Dhabi authorities said three people – two Emiratis and an Indian national – sustained minor injuries after debris fell at the Habshan gas complex following a successful interception by the UAE’s air defence systems.

  The debris also sparked several fires at the facility, prompting a temporary suspension of operations as safety and response teams assessed the situation.

  “Adnoc Gas responded swiftly to the security-related incidents at the Habshan site on 3 and 8 April, prioritising safety and minimising disruptions to customers,” the company said on 10 August.

  “The company has concluded its technical assessment of the impact from these incidents and recovery has progressed ahead of schedule, with gas supply already restored to 85%,” Adnoc Gas said as part of its announcement of financial results for the second quarter of 2026.

  During a press conference to discuss Adnoc Gas’ Q2 2026 results, Peter Van Driel, the company’s chief financial officer, said: “At the moment, we have progressed to 85% of supply being reinstated, so the balance will be reinstated between now and the first half of 2027.

  “If I look at the cost impact, we are still firming up our estimates. There are uncertainties around the pricing of certain items that we need to install as part of the final reinstatement.

  “If we look at the key driver for our results in the second half, the 85% reinstatement of supply is definitely important. We’re encouraged by the fact that the 85% was delivered ahead of schedule,” Van Driel told journalists.

  Fatema Al-Nuaimi, Adnoc Gas’ CEO and board member, said: “If I may add one point: it might be 85%, but in reality, today we are supplying 100% of our customers’ requirements locally.”

  She added: “On exports, of course, we try our best to satisfy requirements and work closely with customers. But in terms of gas supply to the UAE, we are at 100%.”

  Role of robotics and AI

  Responding to a question about the deployment of robotics and artificial intelligence (AI) to carry out damage assessment and repair work at the Habshan gas processing facility, Al-Nuaimi said: “One of the technical challenges in restoring the facilities quickly was that we had to inspect a significant part of our assets – some 600 kilometres of piping of different sizes across the facilities.

  “If we had done this in the conventional way, we would have spent around 100 additional days putting up scaffolding and sending people to conduct manual and visual inspections.”

  The CEO continued: “Instead, we used robotics supported by AI-driven software, which enabled us to shorten the inspection and response time and carry out repairs faster.

  “It was not just about time; it was also about safety. It spared us from sending our people into critical areas that might not yet have been safe.”

  She added: “We also used robotics in responding to fires and accessing certain parts of the assets.

  “When we talk about AI, it is not a headline. It is real work and real value that we see every day in our business,” Al-Nuaimi further remarked.

  ALSO READ: Adnoc announces FID on $6.2bn Umm Shaif gas cap project

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  Indrajit Sen
• 
  Dewa receives eight bids for 132kV cable works

  11 August 2026

  Eight companies have submitted bids for a contract to supply, install, test and commission 132kV cable works serving multiple substations across Dubai.

  The tender was issued by Dubai Electricity & Water Authority (Dewa) in April.

  It covers 132kV cable works for the Autosouq, Crystal, Danaroad, Dsrtisld, Elwood, Horizion, Mesmgolf, Naseemst, Orchidst, Yfravaly and Ylysisld 132/11kV substations. The scope also includes a new 132kV cable circuit and cable shifting works.

  The bidders include:

  • Acume Electrical Engineering Services (UAE, $10.7m)
  • Sociedad Espanola de Montajes Industriales (Spain, $17.8m)
  • Danway Electricity & Mechanical Engineering (UAE, $67.6m)
  • Arar Utility Company (UAE, $71.9m)
  • Mannai Trading Company (Qatar, $91.3m)
  • AASA Middle East Contracting Company (UAE, $174.5m)
  • Centaur Electro Mechanical Contracting Company (UAE, $199.6m)
  • Saudi Modern Company for Metals, Cables & Plastic Industries (Saudi Arabia, $351.4m)

  Transmission investment

  Dewa has been accelerating investment in Dubai’s electricity transmission network to meet rising electricity demand. In July, the utility said that its investments in transmission projects had exceeded AED10bn ($2.7bn).

  Dewa is currently building 65 new 132kV substations and one 400kV substation. It plans to issue tenders for more than 30 additional 132kV substations over the next three years, alongside plans to extend 340 kilometres of underground transmission cables and construct two 400kV substations.

  In the first half of 2026, Dewa said it awarded 21 contracts for 132kV transmission substations and contracts to extend 132kV cables connecting the substations to the main network. The cable contracts cover 64km and have a combined value of AED3bn ($817m).

  The utility also commissioned eight 132kV substations with a combined conversion capacity of 1,200MVA and an investment of AED970m ($264m). The projects included 20km of transmission cables.

  Dewa said it had 402 transmission substations in operation at the end of June, with 374 substations at the 132kV level. The rest are 400kV substations.

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  Mark Dowdall
• 
  Adnoc Gas to move prudently on Bab gas cap project

  10 August 2026

  Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), has said it is treading cautiously towards a final investment decision (FID) on its estimated $8bn Bab gas cap development project.

  The project aims to build a gas processing plant in the Bab area, about 170 kilometres from Abu Dhabi city, along with associated pipeline networks and ancillary units, to process up to 1.85 billion cubic feet a day (cf/d) of additional raw gas once its parent company starts production from the Bab gas caps.

  “We are at an early stage when it comes to engagement with the market on Bab gas cap. At this stage, we are not in a position to discuss any of the technical or commercial aspects of the Bab gas cap project,” Fatema Al-Nuaimi, Adnoc Gas CEO, said in response to a question from MEED during a press conference on 10 August.

  Adnoc Gas has divided the engineering, procurement and construction (EPC) scope of work on the Bab gas cap development project into four main packages:

  • EPC package 1 – Main Bab gas cap plant
  • EPC package 2 – Early civil works
  • EPC package 3 – Pipelines
  • EPC package 4 – Non-process facilities and associated works package

  Adnoc Gas issued the tender for the main Bab gas cap plant on 25 June and set an initial deadline of 17 July for contractors to submit technical bids. The company then extended the technical bid submission deadline by four months until 16 November, MEED recently reported.

  Peter Van Driel, chief financial officer of Adnoc Gas, said: “There are two parts to this. You have an upstream decision and an Adnoc Gas decision.

  “Upstream [Adnoc Group] has started to develop the Bab gas cap reservoir. At Adnoc Gas, we have a funnel of opportunities. Today, we announced the FID on phases two and three of the Rich Gas Development project,” Van Driel said.

  “As part of future opportunities, we may invest in infrastructure specifically for the Bab gas cap project, and that is a pending decision,” he added.

  “We have focused our decision-making on phases two and three of the Rich Gas Development project. With all of these decisions, we do a very thorough assessment. We are not in a hurry to make these decisions. We want to ensure we have the right feed composition, competitive landscape and demand.

  “[Gas] demand in the UAE remains strong. Electricity demand, for example, grows by approximately 3% every year, and we also see a very robust demand profile for gas in export markets,” he told journalists on the call.

  Bab Gas Cap project tendering

  As part of its upstream production growth targets for 2030, Adnoc Group is working to extract gas from four underdeveloped gas cap reservoirs at the Bab onshore field – Thammama A, Thammama B, Thammama F and Thammama H. The Thammama A, B and H reservoirs are estimated to collectively produce 1.45 billion cubic feet a day (cf/d) of gas, while output from the Thammama F gas cap is expected to reach 396 million cf/d.

  Existing trains at the Habshan processing complex in Abu Dhabi will be unable to handle the new gas volumes. Adnoc Gas is therefore required to build new facilities to process up to 1.85 billion cf/d of additional raw gas when its parent company starts production from the Bab gas caps.

  Abu Dhabi Securities Exchange-listed Adnoc Gas issued an expression of interest (EoI) to contractors for the main EPC tendering process for the Bab gas cap plant on 10 February. The company set an initial EoI submission deadline of 17 February, which it later extended to 20 February. Contractors submitted responses by that date, MEED reported.

  Following completion of the prequalification phase, contractors that expressed interest formed the following teams to compete in the main contract tendering round, according to sources:

  • Larsen & Toubro Energy Hydrocarbon (India) + Samsung E&A (South Korea)
  • Saipem (Italy) + NMDC Energy (UAE)
  • Technip Energies (France) + JGC Corporation (Japan) + Sinopec (China)
  • Tecnimont (Italy) + China Petroleum Engineering and Construction Corporation (CPECC)

  The other three packages are also in the main contract tendering stages, sources have said. Separately, another Adnoc Group subsidiary, Adnoc Onshore, is preparing to issue the main tender for a project involving the tie-in of gas-producing and injection wells at the gas cap reservoirs of Abu Dhabi’s onshore Bab field, which forms part of the wider integrated Bab gas cap development programme.

  Prior to issuing the EoIs for the Bab gas cap development project packages, Adnoc Gas completed an early engagement process with contractors in September and October last year, as MEED previously reported.

  In December last year, Adnoc Gas awarded the front-end engineering and design (feed) works for the Bab gas cap development project – which will increase its gas processing capacity by about 20% – to Australia-based consultancy Worley. The feed contract covers more than 1.2 million man-hours, making it the largest engineering job awarded by Adnoc Gas to date.

  Bab Gas Cap concession

  In addition to Adnoc Gas overseeing the main EPC tendering exercise for the gas processing plant, Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) awarded concession agreements in June for the development and production of the Bab gas cap reserve in the emirate.

  Adnoc will hold the majority 60% participating interest in the concession. The remaining stakes will be held by France’s TotalEnergies (10%), the UK’s BP (10%), China National Petroleum Corporation (CNPC) International (8%), Japan Oil Development Company (Jodco) Onshore (5%), China ZhenHua Oil (4%) and Korea GS E&P (3%).

  According to SCFEA, the Bab gas cap development and production concession represents the largest gas cap development project of its kind globally, the Abu Dhabi Media Office said in a report.

  A gas cap refers to the free natural gas that sits above an underlying oil reservoir — in this case, the giant Bab onshore oil field in Abu Dhabi.

  The project, operated by Adnoc Onshore, is expected to have a production capacity of approximately 1.5 billion cf/d of natural gas, equivalent to about 15% of Adnoc Gas’ total operational gas processing capacity.

  “This underscores the strategic significance of the project, which is expected to contribute to the UAE’s gas self-sufficiency, support the continued development of the country’s petrochemicals sector and advance Adnoc’s plans to expand its liquefied natural gas export capacity,” the Abu Dhabi Media Office said in its report.

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  Indrajit Sen
• 
  Adnoc Gas reaffirms $28bn capex for 2026-30

  10 August 2026

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  Adnoc Gas, the gas processing subsidiary of Abu Dhabi National Oil Company (Adnoc Group), has announced it is executing a capital expenditure (capex) budget of $28bn for 2026 to 2030, reaffirming the spending plan it previously committed to for the period.

  As part of that capex plan, Adnoc Gas said it achieved final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.

  The company awarded $8.2bn of engineering, procurement and construction (EPC) contracts for the second and third phases of the RGD programme. These relate to the construction of a new gas processing train at the Habshan complex and a natural gas liquids (NGL) fractionation train at the Ruwais gas processing facility, respectively.

  MEED reported in March that Adnoc Gas had selected the main EPC contractors for both the Habshan 7 gas processing train and the Ruwais NGL Train 5 projects.

  Adnoc Gas officially announced the award of EPC contracts for the two projects, saying it awarded China-based Wison Engineering a $3.9bn contract for RGD phase 2, while Italy’s Tecnimont was selected for the $4.3bn third phase.

  Phase 2 will add a new natural gas processing train at the Habshan facility, “expanding Adnoc Gas’ natural gas processing capacity, enhancing operational flexibility, and supporting the UAE’s expanding downstream and petrochemical sectors”, the company said in a statement.

  Phase 3 will add a new NGL fractionation train at Ruwais, “increasing the recovery of higher-value liquids from rich natural gas for export, strengthening Adnoc Gas’ global customer portfolio”, it said in its statement on 10 August.

  Adnoc Gas also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management contracts in three tranches for phase 1 of the RGD in June last year, marking the company’s largest-ever capital investment.

  With all three phases combined, Adnoc Gas has made a total investment of $13.2bn in the RGD programme.

  “We continued investing through the cycle and advancing megaprojects that will define the next phase of Adnoc Gas’ growth, expanding our processing capacity and product volumes,” the company’s CEO, Fatema Al-Nuaimi, said.

  “Together with Ruwais LNG and our wider portfolio of strategic projects, we are executing one of the industry’s most ambitious gas growth programmes,” she said.

  Al-Nuaimi added: “These investments support our upgraded target of 60% [earnings before interest, taxes, depreciation and amortisation] Ebitda growth by 2030, which was previously 40%. Delivering that ambition will see us invest approximately $28bn between 2026 and 2030.

  “We’re able to make these investments because we’re in a strong financial position. What matters here is this: we are reaffirming our dividend policy, we fund this growth programme and we deliver returns to shareholders. That is not an either/or,” she said.

  Second-quarter financial results

  Adnoc Gas detailed its capex plan as part of a media roundtable to discuss its financial results for the second quarter of the year (Q2 2026).

  The company achieved net income of $665m in Q2 2026 – above the upper end of the $400m-$600m guidance range provided in the first quarter – “reflecting strong operational performance in a challenging operating environment. This was supported by resilient margins in the domestic gas business”.

  Supported by its cash flow from operations, the company’s board has approved a quarterly dividend of $940m, payable in September, in line with its commitment to deliver annual dividend growth of 5% through 2030.

  Adnoc Gas remains the largest dividend payer on the Abu Dhabi Securities Exchange (ADX), where it listed in March 2023.

  Additionally, the company said: “Continued disruption to maritime movements through the Strait of Hormuz affected product liftings during the second quarter. Through proactive inventory, logistics and supply-chain management, Adnoc Gas worked closely with customers and partners to mitigate the impact of these disruptions, manage temporary constraints and fulfil commitments wherever possible.”

  For Q3 2026, Adnoc Gas said it expects profit in the range of $600m to $800m, “based on the assumption that maritime routes through the Strait of Hormuz continue to be disrupted”.

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  Indrajit Sen