Gulf index rises 2 per cent in September

27 September 2023

 

The estimated value of the Gulf projects market rose by 2 per cent from 11 August to 15 September in the seventh straight month of growth for the Gulf Projects Index by regional projects tracker MEED Projects.

This growth was driven primarily by a $48bn rise in the value of the Saudi projects market and a $29bn rise in the Qatari market, alongside a rise of $8.7bn in the UAE. The growth spree in the past seven months has led to the Gulf projects market expanding from $3.1tn in February to $3.5tn in September.

In Saudi Arabia, the $48bn or 3 per cent rise was driven by the launch of several new projects, including three schemes from National Housing Company. The firm launched the $10.7bn Banan City project as part of the Dahiyat al-Fursan development, as well as projects for a $5bn business centre and $2bn sports city in the Dahiyat Khuzam development.

The $29bn value increase in the Qatari market was equivalent to 15 per cent growth, but it was largely driven by the re-estimation of budgets for existing schemes rather than project additions.

Further GCC growth

The UAE projects market also grew by $8.7bn or 1.5 per cent, for a total GCC increase of $78.1bn or 2.8 per cent.

This was dragged down only slightly by a $6.2bn or 3.5 per cent decline in Kuwait and a $1.1bn or 0.6 per cent contraction in Oman. However, the Housing Ministry in Oman also launched its own $1bn Al-Dahariz City development.

The Bahrain market grew marginally, adding $0.3bn or 0.4 per cent in value.

Beyond the GCC, the Iraqi projects market fell by $11.1bn or 3.6 per cent. Iran’s projects market meanwhile contracted marginally, declining by $0.7bn or 0.3 per cent.

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John Bambridge
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    Engineering, procurement and construction (EPC) works are progressing on an estimated $2bn to $2.5bn carbon dioxide (CO2) sequestration complex project of QatarEnergy LNG covering its liquefied natural gas (LNG) production operations in Qatar’s Ras Laffan Industrial City (RLIC).

    Once commissioned, the planned sequestration facility will be capable of capturing 4.3 million tonnes a year (t/y) of CO2 from QatarEnergy LNG’s production operations in RLIC.

    QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, awarded the main EPC contract for the CO2 sequestration project to South Korean contractor Samsung C&T, sources told MEED.

    The letter of award for the EPC contract was issued by QatarEnergy LNG to Samsung C&T on 27 May, according to a source.

    The following contractors are among those that are understood to have submitted bids in April for EPC works on the QatarEnergy LNG CO2 sequestration project:

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    Based on the initial evaluation of bids, Larsen & Toubro Energy Hydrocarbon is understood to have pulled ahead in the race for the project’s contract, MEED previously reported. However, sources, at the time, added that the situation could change.

    QatarEnergy LNG awarded Australia-headquartered consultancy Worley a contract in September 2023 to execute the front-end engineering and design (feed) work on the project and to prepare the EPC scope of work.

    CO2 sequestration facility

    The planned sequestration facility will capture CO2 from seven LNG trains at the QG North complex and three LNG trains at the QG South complex.

    The CO2 captured from the trains is to be dehydrated, compressed and transferred via a new 154-kilometre pipeline, to be injected into wells at the Dukhan oil field development onshore Qatar for a related enhanced oil recovery pilot scheme.

    The pilot project is part of QatarEnergy’s long-term strategy for the redevelopment of the Dukhan fields that will contribute to the recovery of additional crude.

    The detailed EPC scope of work on the CO2 sequestration project covers the following:

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      • Integration with South injection system unit 85
      • Solvent reformulation for South trains 1/23
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      • New SIH for DCS/ESD/F&G
      • Tie-ins with utility units
      • Dehydration package
      • Chillers package
      • Pig launcher
         
    • RLIC corridors
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      • Electric cables
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    The project will directly reduce CO2 emissions because some of the CO2 injected into wells at the Dukhan oil field will remain in the reservoir after injection.

    The CO2 sequestration complex in RLIC is expected to start operations by the end of 2027.

    North Field LNG expansion

    Meanwhile, QatarEnergy LNG continues to press forward with its North Field LNG expansion programme.

    The estimated $40bn North Field LNG expansion programme aims to raise Qatar’s total LNG production capacity from 77.5 million t/y to 142 million t/y in three phases.

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    > ECONOMIC DATA: October 2025: Data drives regional projects

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    Spanish engineering firms Sener and Ineco are the project’s engineering consultants.

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    30 October 2025

     

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    Already cancelled

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