Frontrunner emerges for QatarEnergy NGL train project
8 September 2025
A frontrunner has emerged to win the main contract for a project to add a fifth natural gas liquids (NGL) train at QatarEnergy’s NGL complex in Qatar’s Mesaieed Industrial City.
The aim of the project, which is estimated to be worth $2.5bn, is to build a fifth NGL train (NGL-5) with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.
According to sources, Indian contractor Larsen & Toubro Energy Hydrocarbon has pulled ahead in the race to win the main engineering, procurement and construction (EPC) contract for QatarEnergy’s NGL-5 project.
QatarEnergy is expected to officially award the project’s contract in September, said sources close to the project.
MEED previously reported that contractors had submitted commercial bids for the EPC works on the NGL-5 project by the deadline of 15 June.
Following the submission of commercial bids, QatarEnergy engaged in negotiations with the bidders and requested that they submit revised prices. Contractors submitted revised commercial proposals by 20 July.
MEED also previously reported that QatarEnergy had received technical bids for the NGL-5 project from contractors by the deadline of 13 April. The client eventually requested that bidders extend the validity of their technical proposals until the end of August, as per sources.
The following contractors, among others, are understood to be participating in the project’s main contract tendering process:
- CTCI Corporation (Taiwan)
- Larsen & Toubro Energy Hydrocarbon (India)
- Samsung E&A (South Korea)
- Tecnicas Reunidas (Spain)
- Tecnimont (Italy)
QatarEnergy issued the expression of interest (EoI) document for the NGL-5 project in early June of last year, with contractors submitting responses by 24 June 2024, MEED previously reported.
QatarEnergy eventually issued the main EPC tender for the NGL-5 project in November 2024.
In the EoI document, QatarEnergy stated that it had commenced site preparation work for the project in the fourth quarter of 2023 and anticipated completion of the work in the first quarter of 2025.
Turkish contractor Iris Insaat is performing the site preparation work, according to regional projects tracker MEED Projects.
QatarEnergy intends to start operations at the NGL-5 facility by the second quarter of 2028.
Project scope of work
Associated gas from the PS1, PS2 and PS3 offshore fields, as well as the Dukhan onshore field, is processed at existing facilities in the NGL complex at Mesaieed – specifically, the FSP, NGL-1 and Qapco ERU units.
The planned NGL-5 facility will replace these three units at the Mesaieed complex and process gas from the PS1, PS2 and Dukhan fields.
The scope of work on the project involves EPC work on units for the following functions:
- Feed gas compression
- Slug handling
- Gas sweetening
- Dehydration
- Mercury removal
- NGL fractionation
- NGL recovery
- Product treatment
- Propane refrigeration
- Acid gas enrichment
- Sulphur recovery
- Anti-flaring
- Utilities
- Boil-off gas recovery
- Drains and collection networks
- Effluent water treatment plant
- Carbon dioxide treatment and sequestration/export
- Brownfield modifications
- Product rundown pipelines
QatarEnergy is understood to have divided the scope of work on the NGL-5 project into five EPC packages.
READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF
Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage
Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
> OLYMPICS: Qatar banks on infrastructure for Olympic bid
> QATAR TOURISM: Olympics bid aims to extend tourism gains
> CURRENT AFFAIRS: Syria charts post-war reconstruction course
> INDUSTRY REPORT: Regional chemicals spending set to soar
> DOWNSTREAM: Adnoc set to become a chemicals major
> SAUDI STADIUMS: Stadiums become main event for Saudi construction
> CONSTRUCTION: Middle East to be a growth leader for global construction
> LEADERSHIP: Dubai’s sea-air logistics model powers resilient trade
> KUWAIT MARKET FOCUS: Kuwait’s political hiatus brings opportunity
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Contractors submit Riyadh rail link prequalifications
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The development comprises five residential towers, offering a mix of one-, two- and three-bedroom apartments and duplexes.
The project is slated for completion in 2029.
Sobha is also planning to build a 450-metre-tall residential tower called Sobha SkyParks on Dubai’s Sheikh Zayed Road.
The tower will have 109 floors and will be the tallest development in Sobha Realty’s portfolio.
The development will offer more than 684 residential units.
Speaking exclusively with MEED, Ravi Menon, chairman of Sobha Group, outlined plans for delivering a project of this scale.
“While it is indeed our tallest creation to date, we bring strong engineering experience to the table, with nearly 50 high-rise buildings in Dubai already completed or under development,” Menon said.
The developer said it will leverage its experienced in-house team of engineers, designers and technical experts who have delivered some of Dubai’s most iconic high-rise projects, including ‘The S’, a 60-storey tower on Sheikh Zayed Road, along with several other towers over 75 storeys currently under construction in Sobha Hartland 2.
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Oman issues tender for mineral site exploration
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The MEM will host a site visit for bidders on 2 November and has set the bid submission deadline for 27 November.
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Investment shapes UAE growth story
23 October 2025
Commentary
John Bambridge
Analysis editorThe UAE is once again demonstrating that strategic investment remains the cornerstone of its national progress. Across the federation, elevated infrastructure spending aimed at economic diversification is knitting the emirates closer together, while reaffirming the country’s long-term growth trajectory.
At the heart of this transformation is the UAE’s transport infrastructure spending, with a record $15.5bn in project awards in 2024 alone underscoring the country’s confidence in its future. From the delivery of high-speed rail to the upgrade of its existing highways, the UAE is prioritising internal transport and logistics as the key enabler of a sustainable, integrated economy.
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Saudi Arabia’s housing boom risks leaving citizens behind
23 October 2025
Saudi Arabia is in the middle of one of the biggest housing drives in its history. Across Riyadh, Jeddah and the Eastern Province, entire neighbourhoods are taking shape, funded by government initiatives and ambitious developers.The ambition is clear: raise living standards, push homeownership towards Vision 2030’s 70% target, and showcase modern Saudi life.
But here is the uncomfortable reality: homes are being built, yet many Saudis cannot afford them.
No one doubts the appetite for housing. Saudi families have always valued owning a home, and with such a young population, the demand is only growing. But affordability is slipping away.
According to Knight Frank, the number of families planning to buy fell sharply, from 40% in 2023 to 29% in 2024. Prices keep climbing: in Riyadh alone, apartment values rose almost 11% last year, while villas increased even more. Salaries, however, have hardly moved. The result is a widening gap between what people want and what they can realistically buy.
Wrong market
Much of today’s housing pipeline is designed for the top end. Villas and apartments that are priced at SR2-SR4m ($533,333-$1.07m) are now common, while surveys show that two-thirds of Saudi households can only afford about SR1.2m or less.
Developers understandably chase higher margins, building bigger homes with luxury finishes. But this leaves out the very group the government most wants to support: young, middle-income families. Land costs make the situation worse. Speculative buying has pushed land far out of reach, and those costs inevitably pass down to buyers.
Imported designs
International developers have entered the market with big ideas and sleek designs. Yet too often, their projects look as though they are meant for global investors or expatriates, not for Saudi households. Tower blocks and gated compounds may look impressive, but they do not always reflect local family life, or income levels.
Then there is infrastructure. Building communities is not just about homes, but also schools, hospitals, roads, utilities and parks. Those upfront costs are huge, and developers usually recoup them through higher sale prices. Once again, it is the local buyer who feels the squeeze.
Financing difficulties
Rising mortgage rates add another hurdle. With the Saudi central bank following US interest rate moves, borrowing has become more expensive. What might have been an affordable monthly payment two years ago is now out of reach for many young families.
Tower blocks and gated compounds may look impressive, but they do not always reflect local family life, or income levels
Saudi Arabia is opening its property market to foreign investors. That brings in capital and supports diversification. But if supply for citizens is not guaranteed first, the risk is clear: locals may be priced out of their own housing market.
The government is aware of these issues. The Ministry of Housing is rolling out schemes, financing tools and regulations. But more is needed. Policies must:
- Match new homes to actual income levels, not just investor targets
- Curb speculation and make land more accessible
- Expand subsidised mortgages for first-time buyers
- Open the market to foreigners gradually, after domestic needs are met.
Inclusivity goal
Housing is one of the most visible promises of Vision 2030. It symbolises progress, modernisation and opportunity. But unless the current course is corrected, many of these new developments could end up as exclusive enclaves rather than inclusive communities.
Saudi Arabia has the money, the demand and the ambition. The challenge now is to connect all three, so that the homes rising across its skylines are not just impressive projects, but real homes that reflect the aspirations of ordinary Saudis.
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Contractors submit Riyadh rail link prequalifications
23 October 2025
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Contractors submitted their prequalification documents on 12 October for a contract covering the construction of a new railway line, known as the Riyadh Rail Link, which will run from the north to the south of Riyadh.
The scope of work includes constructing a 35-kilometre-long double-track railway line connecting SAR’s North-South Railway to the Eastern Railway network.
The contract also covers the procurement, construction and installation of associated infrastructure such as viaducts, civil works, utility installations, signalling systems and other related works.
The project is being developed by Saudi Arabia Railways (SAR).
In September, MEED reported that SAR had invited consultants to prequalify by 28 September for a contract covering design review and construction supervision for the Riyadh Rail Link project.
The project is expected to form a key component of the Saudi Landbridge railway.
The Saudi Landbridge is an estimated $7bn project comprising more than 1,500km of new track. Its core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.
Other key sections include upgrades to the existing Riyadh-Dammam line and a link between King Abdullah Port and Yanbu.
The start of tendering activity for the Riyadh Rail Link project makes the construction of the Saudi Landbridge more likely.
The project is one of the kingdom’s most anticipated infrastructure programmes. Plans to develop it were first announced in 2004, but the project was put on hold in 2010 before being revived a year later.
Key stumbling blocks were rights-of-way issues, route alignment and its high cost.
In December 2023, MEED reported that a team of US-based Hill International, Italy’s Italferr and Spain’s Sener had been awarded the contract to provide project management services for the programme.
If it proceeds, the Landbridge will be one of the largest railway projects ever undertaken in the Middle East – and among the biggest globally.
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