Meed | Gulf players secure future of LNG projects

Gulf players secure future of LNG projects

29 April 2024

This package also includes: Region boosts LNG spending

Offtake agreements are crucial for producers of liquefied natural gas (LNG) to be able to reap long-term returns from their projects.

Traditionally, LNG has primarily been traded on the spot market, which, while beneficial to buyers, has left sellers with little profit.

In order to justify the investments that they have committed to making on large-scale output expansion projects, Gulf LNG producers have been striving to strike long-term sales and purchase agreements (SPAs) with key customers around the world.

Scores of such supply deals have been struck by regional LNG producers in recent years – primarily by QatarEnergy, Oman LNG and Abu Dhabi National Oil Company (Adnoc) as they look to secure sustained returns on their project capital expenditure.

Gulf LNG producers have been striving to strike long-term SPAs with key customers around the world

Qatar LNG supply deals

Qatar started delivering LNG to China in September 2009 and is estimated to have supplied approximately 80 million tonnes of LNG to the country to date.

Qatar has worked to boost geopolitical and commercial relations with China, which is the world’s second-largest economy and one of the biggest markets for LNG consumption. The key long-term LNG SPAs that QatarEnergy has secured from Chinese companies, particularly since 2021, are a result of those improving bilateral relations.

In March 2021, QatarEnergy won a 10-year contract with China’s Sinopec to supply 2 million tonnes a year (t/y) of LNG, with deliveries commencing in January 2022.

QatarEnergy then signed a long-term SPA with CNOOC Gas & Power Trading & Marketing, a subsidiary of China National Offshore Oil Corporation (CNOOC), in October 2021. The deal involves supplying 3.5 million t/y of LNG to CNOOC over 15 years, starting in January 2022.

Following that, in December 2021, QatarEnergy secured SPAs with two Chinese companies for the supply of 2 million t/y – 1 million t/y each to Guangdong Energy Group Natural Gas Company and S&T International, for periods of 10 and 15 years, respectively.

QatarEnergy also signed another SPA with Sinopec in November 2022 for the supply of 4 million t/y of LNG from the North Field East (NFE) project for 27 years.

In June 2023, QatarEnergy secured two major LNG supply deals with state-owned China National Petroleum Corporation (CNPC). The first deal is an SPA with CNPC to supply 4 million t/y of LNG for 27 years. As part of the second agreement, QatarEnergy transferred a 5% stake in its NFE LNG project to CNPC, which is the equivalent of one NFE train with a capacity of 8 million t/y.

More recently, the Qatari state energy enterprise signed a major agreement with Sinopec to supply 3 million t/y of LNG for a period of 27 years. The LNG cargoes are to be sourced from QatarEnergy’s North Field South project. Under the terms of the agreement, QatarEnergy will also transfer a 5% interest to Sinopec in a joint venture company that owns the equivalent of
6 million t/y of LNG production capacity in the North Field South project.

Oman grows customer base

Oman LNG has enjoyed significant success in some of the world’s largest LNG markets, winning deals with major consumers in those countries. Most recently, in April, the majority state-owned company secured three SPAs with Turkiye’s Botas Petroleum, Shell International Trading Middle East – the regional trading subsidiary of Shell – and Japan’s Jera.

Under these agreements, Oman LNG will deliver 1 million t/y, 1.6 million t/y and 800,000 t/y of LNG to its three customers, respectively.

In addition, as well as having achieved the final investment decision on the Marsa LNG project in the sultanate with France’s TotalEnergies, Oman LNG has also signed an SPA with the French energy major to supply 800,000 t/y of LNG for a period of 10 years, starting in 2025.

Adnoc vies for market share

Adnoc has yet to award final contracts for engineering, procurement and construction works on its planned Ruwais LNG terminal project in Abu Dhabi. However, the company has already secured SPAs for the supply of LNG from the project in the future.

In March, Adnoc signed a heads of agreement with Germany’s SEFE Securing Energy for Europe for the supply of LNG that will primarily be sourced from its planned LNG export terminal in Ruwais. Adnoc will deliver 1 million t/y of LNG to SEFE Marketing & Trading Singapore, a subsidiary of the Berlin-headquartered SEFE, for a period of 15 years.

The agreement with SEFE is the second long-term LNG supply agreement from the Ruwais LNG project. It followed the signing of a 15-year agreement with China’s ENN Natural Gas, which was inked in December 2023. Adnoc’s deliveries to ENN are expected to start in 2028, upon commencement of the facility’s commercial operations.

Region boosts LNG spending

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Indrajit Sen

Exclusive from Meed

Jedco maps next phase of Jeddah airport expansion
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22 September 2026
Oman tenders Thumrait Industrial City infrastructure
22 September 2026
Kuwait halves drilling contractor pool
22 September 2026
Abu Dhabi expects 45% emissions cut as electricity demand rises
21 September 2026

Jedco maps next phase of Jeddah airport expansion
22 September 2026

Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

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Yasir Iqbal

Contractor wins $105m Medina university hospital deal

22 September 2026

Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

The contract duration is three years, with delivery targeted for late 2029.

The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

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

> AGENDA: Gulf nuclear revival takes shape

> MARKET FOCUS: Kuwait keeps dealmaking alive under fire

> INDUSTRY REPORT: Gas processing takes centre stage in Mena region

> INTERVIEW: Emsteel persists with business productivity and efficiency

> TUNNELS: The Gulf’s next construction boom is happening underground

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

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Yasir Iqbal

Oman tenders Thumrait Industrial City infrastructure
22 September 2026

Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

The tender was issued on 14 September, with bids due by 12 November.

The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

The first phase of the development will cover about 120,000 square metres (sq m).

Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

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Yasir Iqbal
Kuwait halves drilling contractor pool
22 September 2026
State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

The full list of contractors that are now qualified to participate in tenders is:
- Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
- Kuwait Drilling Company (Kuwait)
- Sun Drilling Kuwait (Kuwait)
- TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
- United Precision Drilling (Kuwait)
- Abraj Energy Services (Oman)
- Adnoc Drilling Company (UAE)
- Arabian Drilling Company (Saudi Arabia)
- Anton Oilfield Services (China)
- China Oilfield Services (China)
- Egyptian Drilling Company (Egypt)
- CNPC Bohai Drilling Engineering Company (China)
- Great Wall Drilling Company (China)
- John Energy (India)
- Kerui Oilfield Service (China)
- KCA Deutag Drilling (Germany)
- Mohammed Al-Barwani Petroleum Services (Oman)
- Nabors Drilling International (US)
- National Drilling & Services Company (Oman)
- Sea & Land Drilling Contractors (Oman)
- Sinopec International Petroleum Service Corporation (China)
- Karamay Jianye Energy (China)
- Modern Drilling Company (Egypt)
- Grey Wolf Drilling International (US)
An earlier list, which was published on 11 February, included 51 qualified companies.

The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.
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Wil Crisp

Abu Dhabi expects 45% emissions cut as electricity demand rises

21 September 2026

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Abu Dhabi-based Emirates Water & Electricity Company (Ewec) expects carbon emissions from power and water production to fall by more than 45% by 2035 as the UAE expands renewable energy and reverse osmosis (RO) desalination.

The state offtaker's latest long-term system planning forecasts emissions will decline from about 42 million tonnes in 2019 to approximately 23 million tonnes in 2035.

The reduction is expected despite annual electricity demand that is forecast to rise by about 70% in 2026-33.

Ewec said the expansion of renewable energy and the shift towards RO desalination will be the principal drivers of the reduction.

The company plans to increase Abu Dhabi's solar capacity to 14GW by 2030 and more than 35GW by 2035. This will be supported by up to 15GW of battery storage capacity.

According to regional project tracker MEED Projects, Ewec has over $16bn-worth of power and water projects in the execution stage as part of its long-term procurement programme to increase renewable energy and low-carbon water production capacity.

This includes a 5.2GW Abu Dhabi solar and battery energy storage system (bess) round-the-clock renewable energy project, as well as three 1.5GW solar photovoltaic independent power projects (IPP): Al-Ajban, Al-Khazna and Al-Zarraf.

It also comprises the 1GW Al-Dhafra open-cycle gas turbine power plant, the 2.5GW Taweelah C combined-cycle gas turbine (CCGT) plant and a separate 400MW bess IPP.

As previously reported, it is expected that the developer's agreement for the 3.3GW Al-Nouf 1 CCGT IPP will be signed by the end of the year, while contractors are preparing to submit bids for a separate 2.6GW power plant project in Ajman.

The expansion of solar and battery storage is expected to reduce the system's reliance on gas-fired generation. However, gas-fired generation will continue to provide flexibility to support the system and balance intermittent renewable power output, according to Ewec.

The offtaker also expects RO desalination to account for more than 95% of total water production by 2035, with the procurement programme supporting the Abu Dhabi Department of Energy's Clean Energy Strategic Target 2035 for electricity production and the UAE Net Zero by 2050 Strategy.