Gas takes centre stage in Adnoc downstream expansion
13 April 2023
This package on the UAE’s downstream sector also includes:
> Fertiglobe to pay $700m in second-half 2022 dividend
> Borouge signs East Africa distribution agreement
> Adnoc receives bids for key Estidama project packages
> Adnoc to study ammonia value chain in German state
> Adnoc Gas receives bids for ethane recovery project
> Adnoc committed to supplying hydrogen says executive
Regional energy producers are racing to increase their gas production and supply potential as natural gas as a clean energy source becomes more important in the global energy mix.
By merging its gas processing and liquefied natural gas (LNG) businesses this year, Abu Dhabi National Oil Company (Adnoc) has made considerable strides in this race.
Adnoc Gas, the new, combined entity that began operating on 1 January, has a processing capacity of about 10 billion cubic feet a day (cf/d) of gas across eight onshore and offshore sites and a pipeline network of over 3,250 kilometres.
This makes the company, now listed on the Abu Dhabi Securities Exchange, one of the largest gas processing firms in the world.
The strategic move to consolidate its gas processing business underscores Adnoc’s ambition to propel the growth of its overall downstream portfolio, including petrochemicals, with the help of gas.
Adnoc Gas is already overseeing progress on vital downstream projects inherited from the erstwhile Adnoc Group subsidiaries Adnoc Gas Processing and Adnoc LNG.
Sales gas pipeline network
The Estidama project, crucial to enhancing Adnoc’s sales gas pipeline network across the UAE, is progressing under Adnoc Gas’ management.
The project is part of Adnoc Group’s 2030 mandate to ensure a sustainable natural gas supply to its key customers in the country. It aims to cater to increasing demand for gas from industrial consumers across the UAE, particularly in the Northern Emirates.
Contractors recently submitted bids for two key engineering, procurement and construction (EPC) packages of the Estidama project – commercial bids for package two and technical bids for combined package numbers four and seven.
The scope of work on Estidama package two broadly involves building a new facility at the KP-30 location of the Habshan gas compressor plant (HGCP) in Abu Dhabi and installing three variable frequency drive motor-driven compressors.
The combined package involves laying a new pipeline from the Al-Shuwaib pig launcher and pig receiver station to the Sajaa gas facility in Sharjah. The scope also covers building a new gas pipeline between BVS-2/KP28.7 in Abu Dhabi to Dubai’s Margham gas facility to meet increased gas demand from Adnoc Gas Processing’s customer Dubai Supply Authority (Dusup).
The EPC work on the estimated $2bn Estidama project has been divided into seven packages.
Abu Dhabi-based contractor Integrated Specialised General Contracting Company (Iscco) won package one, understood to have a contract value of $18m, in December 2021.
In January this year, MEED named frontrunners to win packages three and six.
Package five is expected to be tendered separately to contractors as part of a planned second phase of the sales gas pipeline upgrade project.
As per the original project schedule, EPC works on the Estidama project are due to be completed in 2025.
Ramping up ethane output
Adnoc Gas is in charge of one of the world’s largest gas processing complexes in Abu Dhabi, with the capacity to process about 8 billion cf/d from its Asab, Bab, Bu Hasa, Habshan and Ruwais plants.
Increased volumes of ethane production will allow the company to commercialise it to supply feedstock to Borouge for its under-construction Borouge 4 petrochemicals complex, as well as to derivatives plants in the upcoming Taziz complex. Adnoc Gas intends to achieve this through the Maximise Ethane Recovery & Monetisation (Meram) project.
Adnoc Gas is understood to have issued the main tender for Meram in February, with the scope of work comprising the detailed engineering aspect of the project. Contractors submitted technical bids for the tender in early March.
Taziz chemicals complex
Meanwhile, investors in the Taziz petrochemicals derivatives-producing industrial complex in Ruwais are pushing ahead with their projects.
Taziz – a 60:40 joint venture (JV) of Adnoc and Abu Dhabi’s industrial holding company ADQ – is overseeing the development of the sprawling industrial complex, which will mainly draw ethylene feedstock from the Borouge 4 facility to produce several in-demand chemicals.
A JV of UAE-based Fertiglobe, South Korea’s GS Energy and Japanese investment firm Mitsui has officially awarded Italian contractor Tecnimont the main EPC contract for its planned blue ammonia project in the Taziz Industrial Chemicals Zone.
The JV has appointed KBR to provide the technology licence, basic engineering design, proprietary equipment and catalyst for the low-carbon ammonia plant, which will have a capacity of 1 million tonnes a year (t/y).
India’s Reliance Industries is also an investor in the Taziz complex, having forged a partnership with Taziz and Abu Dhabi-based Shaheen Chem Holdings Investment (Shaheen) to invest $2bn in developing three chemical plants producing chlor-alkali (940,000 t/y), ethylene dichloride (1.1 million t/y) and polyvinyl chloride (360,000 t/y).
Switzerland-based Proman, meanwhile, has committed to building the UAE’s first methanol plant at Taziz, with a planned production capacity of 1.8 million t/y.
As projects in the first phase of the chemicals complex move forward, Taziz is also understood to be gearing up for a second phase to more than double the number of chemicals produced at the derivatives hub.
This month’s special report on the UAE also includes:
> UPSTREAM: Strategic Adnoc projects register notable progress
> POWER: UAE power sector shapes up ahead of Cop28
> WATER: UAE begins massive reverse osmosis buildup
> BANKING: UAE lenders chart a route to growth
Exclusive from Meed
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Turkish Airlines plans further growth
1 July 2025
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Levant states wrestle regional pressures
1 July 2025
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Jordan’s economy holds pace, for now
1 July 2025
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Turkish Airlines plans further growth
1 July 2025
This package on UAE-Turkiye relations also includes:
> UAE-Turkiye trade gains momentum
> Turkiye’s Kalyon goes global
> UAE-Turkiye financial links strengthen
With a network covering 30 more countries than its closest competitor, Turkish Airlines has been recognised by Guinness World Records for the most countries flown to by an airline since 2012. “Over the past two decades, Turkish Airlines has experienced rapid expansion, becoming one of the world’s most recognised airlines and the largest carrier in terms of destinations served,” says Erol Senol, vice-president of sales at Turkish Airlines.
The airline’s growth has meant it has become a competitor for the major Gulf carriers such as Emirates, Qatar Airways and Etihad. Senol says the growing aviation market offers opportunities for all carriers.
“The global centre of aviation is moving from the west to the east,” he says.
“This change is advantageous for all regions and carriers, provided there is the commitment to serve more effectively.”
Extending reach
Like the airlines in the Gulf, Turkish Airlines is based in a strategically important geographic location. “Istanbul is within a three-hour flight distance to 78 cities in 41 countries, making it a central hub for connections between Europe, Asia and Africa,” says Senol.
Since 2019, the airline has also been based at one of the world’s largest airports, Istanbul Grand airport (IGA), which has enabled it to continue growing.
“The transition to Istanbul Grand airport has marked a new era for Turkish Airlines, enabling the company to sustain its ambitious growth trajectory,” says Senol.
“Approximately 80% of its capacity is dedicated to Turkish Airlines, offering the airline the operational flexibility and technological support required to manage large-scale passenger and cargo flows.”
The congestion and capacity limitations that previously constrained operations at Ataturk airport were effectively resolved through this relocation.
“Aircraft movement capacity increased from 70 per hour at Ataturk to 80 at the initial stage of Istanbul airport, eventually reaching 120 movements an hour with the commissioning of the third runway. This has significantly reduced aircraft waiting times from 5% to below 1%, improving both punctuality and fuel efficiency,” he adds.
IGA’s larger footprint, which Senol says is “seven times larger than Ataturk airport” has also enhanced passenger services and facilities, helping to improve customer satisfaction and streamline operations.
Turkish Airlines has also increased its annual cargo handling capacity from 1.2 million tons at Ataturk to 2.5 million tonnes at IGA, with projections of reaching 5-6 million tonnes as the airport develops further. “Turkish Airlines has advanced from ninth place in 2018 to third place in 2025 in global air cargo traffic rankings,” says Senol.
Supporting the cargo business is Turkish Cargo’s airport facility, SmartIST, which began operations in February 2022. In 2024, cargo volumes at SmartIST increased by 20% compared to 2023, reaching 1.99 million tonnes. Based on freight tonne kilometres, Turkish Cargo says its market share has reached 5.7%, ranking it third globally. Market share rose to 5.8% in the first quarter of 2025.
A second phase of expansion will further enhance Turkish Cargo’s operations capacity, allowing it to handle up to 4.5 million tonnes annually. The long-term target is to reach 3.9 million tonnes of cargo by 2033.
The relocation of Turkish Airlines’ operations to IGA presented many challenges.
“The relocation project involved extensive pre-planning and meticulous attention to detail,” says Senol.
One of the key challenges was maintaining uninterrupted flight operations during the transition. With real-time monitoring and contingency planning, Turkish Airlines completed the transfer within 33 hours.
The transition to Istanbul Grand airport has marked a new era for Turkish Airlines, enabling the company to sustain its ambitious growth trajectory
Erol Senol, Turkish AirlinesFuture growth
With major airport projects planned at other hubs, Senol offers some advice on how to ensure a seamless transition of operations. “Airlines should invest in full-scale simulations and contingency rehearsals well before the actual move, including load testing IT systems, coordinating logistics and stress-testing operational workflows,” he says.
“Success hinges on strong coordination across departments – operations, IT, cargo, ground services, human resources, safety and more. Turkish Airlines created interdisciplinary task forces and embedded decisionmakers in each operational unit to allow for real-time problem solving during the transition.
“A relocation isn’t just physical – it’s digital,” he notes. “Turkish Airlines used the move to accelerate digital transformation: implementing contactless systems, integrating cargo automation and upgrading passenger services. Airlines should use relocation as a catalyst to modernise infrastructure and adopt scalable technologies.”
Another factor is having room to grow. “Airlines should ensure their new base is not just sufficient, but expandable,” Senol adds.
By 2033, Turkish Airlines aims to serve 171 million passengers across 400 destinations with a fleet of 813 aircraft. “Our strategic plan is built on an annual average growth rate of 7.6%,” he says.
Turkish Airlines currently operates 481 aircraft, comprising 134 wide-body and 347 narrow-body planes. The airline has also placed orders for 355 new Airbus aircraft – 250 A321 Neos and 105 A350s – to support its growth strategy.
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Qatar records largest local-currency bank bond issuance
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Qatar-based Commercial Bank has completed a QR500m ($137m) senior unsecured bond sale, marking the largest local-currency issuance by a Qatari bank to date.
The three-year bonds, priced with a 4.9% coupon, were issued under the bank’s Euro Medium Term Note (EMTN) programme. The notes are listed on Euronext Dublin. DBS Bank and Standard Chartered acted as joint lead managers.
The deal attracted strong demand from both regional and international investors, as lenders across the Gulf continue to diversify their funding bases amid high interest rates, Commercial Bank said in a statement.
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New Murabba signs MoU for project delivery solutions
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Saudi Arabia’s New Murabba Development Company (NMDC) has signed a memorandum of understanding (MoU) with South Korea’s Naver Cloud Corporation to explore technological solutions for delivering its 14 square-kilometre (sq km) New Murabba downtown project.
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According to an official statement: “The three-year agreement covers exploring innovative technology and automation to support the delivery of New Murabba, including robotics, autonomous vehicles, a smart city platform and digital solutions for monitoring construction progress.”
NMDC is in Seoul to examine technological offerings, assess financing options and showcase the investment opportunities available for the New Murabba downtown development.
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Levant states wrestle regional pressures
1 July 2025
Commentary
John Bambridge
Analysis editorThe Levant countries of Jordan, Lebanon and Syria are all in various degrees of distress, and collectively represent the Israel-Palestine-adjacent geography most severely impacted by that conflict, including in the latest phase initiated by Israel’s attack on Iran. In all three cases, however, recent developments have provided tentative hope for the improvement of their political and economic situations in 2025.
In the case of Lebanon, still reeling from Israel’s invasion and occupation of the country’s southern territories in retaliation for Hezbollah’s missile attacks on northern Israeli cities, the hope has come in the form of the country’s first elected president since 2022, and a new prime minister.
The task before both leaders is to stabilise a deeply fragile political and economic situation while avoiding further degradation to Lebanon’s weakened state capacity. If the country can ride through present circumstances to the upcoming parliamentary elections in May 2026, the possibility could also emerge for a more comprehensive shake-up of its stagnant politics.
In civil war-wracked Syria, the toppling of the Bashar Al-Assad government in December and the swift takeover by forces loyal to Ahmed Al-Sharaa have heralded a political transition – even if it is not the secular one that Syria’s population might have once hoped for.
The new president has already made progress in reaching agreements for the rollback of EU and US sanctions and an influx of foreign investment that his predecessor could only have dreamt of securing. This opens the door to a future of economic recovery for the country.
The reopening and reconstruction of the Syrian economy also has the potential to benefit the entire region, by rebooting trade and providing growth opportunities.
For Jordan, the recent conflict in Israel and the occupied Palestinian territories has hit tourism hard, while also pitching the country’s anti-Israel street against its US-allied government. Washington’s threats to cut aid and to raise tariffs on Jordan have added to the political strain on the country, and this has only been staved off by in-person overtures by King Abdullah II to the US government.
The outbreak of hostilities between Israel and Iran has only worsened the economic climate for Jordan, with both Israeli jets and Iranian munitions frequenting Jordanian airspace and providing a constant reminder of how close the country is to being dragged into regional unrest. Yet Jordan has avoided conflict to date, and the country’s GDP growth is expected to rise modestly in 2025 as an increase in exports and projects activity stimulates the economy, despite the wider regional headwinds.
The overall picture for this region is therefore one of tentative recovery from recent shocks, ripe with potential for a better path forward as the Levant rebuilds and works together to overcome the challenges that have so long afflicted the region.
MEED’s July 2025 report on the Levant includes:
> COMMENT: Levant states wrestle regional pressures
JORDAN
> ECONOMY: Jordan economy nears inflection point
> GAS: Jordan pushes ahead with gas plans
> POWER & WATER: Record-breaking year for Jordan’s water sector
> CONSTRUCTION: PPP schemes to drive Jordan construction
> DATABANK: Jordan’s economy holds pace, for nowLEBANON
> ECONOMY: Lebanon’s outlook remains fraughtSYRIA
> RECONSTRUCTION: Who will fund Syria’s $1tn rebuild?To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14122966/main.gif -
Jordan’s economy holds pace, for now
1 July 2025
MEED’s July 2025 report on the Levant includes:
> COMMENT: Levant states wrestle regional pressures
JORDAN
> ECONOMY: Jordan economy nears inflection point
> GAS: Jordan pushes ahead with gas plans
> POWER & WATER: Record-breaking year for Jordan’s water sector
> CONSTRUCTION: PPP schemes to drive Jordan construction
> DATABANK: Jordan’s economy holds pace, for nowLEBANON
> ECONOMY: Lebanon’s outlook remains fraughtSYRIA
> RECONSTRUCTION: Who will fund Syria’s $1tn rebuild?To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/14177596/main.gif