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  Chinese firm signs deals for 5GW Saudi projects

  13 October 2025

  China Energy Engineering Corporation has signed engineering, procurement and construction (EPC) contracts for three major renewable energy projects in Saudi Arabia with a total capacity of 5GW.

  The agreements cover the 1GW Shaqra wind power project, the 2GW Starah wind power project and the 2GW Khulis solar photovoltaic (PV) project.

  A consortium of three China Energy subsidiaries – China Energy International Group, Guangdong Thermal Power and the Northwest Electric Power Design Institute – signed the contracts.

  All three projects were allocated directly under Saudi Arabia’s Public Investment Fund's (PIF) 15GW package announced in July, with Acwa Power, Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco).

  The package included five large-scale solar PV plants with a total capacity of 12,000MW and two large-scale wind energy plants with a total capacity of 3,000MW.

  The total contract value is $2.75bn with a construction period of 26 months for Shaqra and Khulis, and 30 months for Starah.

  The Shaqra and Starah wind projects are located northwest and south of Riyadh, while the Khulis solar project is located north of Jeddah in Mecca province.

  According to China Energy Engineering, the signing represents a major expansion of its Middle East wind market presence.

  The company has been involved in previous Saudi renewable developments, including the 2.6GW Al-Shubakh solar project and 2GW Hadden solar project, both developed under PIF's direct renewable energy programme.

  PIF has committed to developing 70% of Saudi Arabia’s renewable energy target capacity by 2030. 

  The projects under the 15GW package are scheduled to start operating in the second half of 2027 and the first half of 2028.

  

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  Mark Dowdall
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  Adnoc strives to build long-term upstream potential

  13 October 2025

  

   

  Between 2023 and 2024, Abu Dhabi National Oil Company (Adnoc Group) spent an estimated $37bn on projects considered vital to achieving its upstream goals: reaching an oil production capacity of 5 million barrels a day (b/d) by 2027 and attaining gas self-sufficiency by the end of the decade.

  The state energy enterprise spent more than $22.5bn in 2023 alone, making it the biggest year on record for oil and gas project spending in the UAE. The Hail and Ghasha sour gas development project, which accounted for approximately $17bn, holds the distinction of being the single-largest contract award in history in the country’s hydrocarbons industry.

  A decline in capital expenditure (capex) in 2025, following two years of prolific project spending, is therefore in line with expectations. While there has been a noticeable dip in capex on engineering, procurement and construction (EPC) contract awards for upstream projects this year, Adnoc has still spent over $8bn year-to-date.

  This year, Adnoc’s upstream spending appears to be focused on surpassing its immediate oil and gas production targets – which are already considered within reach – and on building long-term output capacity beyond 2030.

  Adnoc Group subsidiary Adnoc Offshore awarded contracts totalling $7.5bn for three main EPC packages under a project to boost oil production at the Lower Zakum offshore concession in Abu Dhabi. Spanish contractor Tecnicas Reunidas and Abu Dhabi-based firms NMDC Energy and Target Engineering Construction Company were selected in February to execute EPC works on the three main packages of the Lower Zakum Long-Term Development Plan (LTDP-1) project.

  The Lower Zakum hydrocarbons zone is located 65 kilometres northwest of Abu Dhabi in the Gulf’s waters. Adnoc Offshore holds the majority 60% stake in the Lower Zakum asset. Other stakeholders in the concession include an Indian consortium led by ONGC Videsh (10%), Japan’s Inpex Corporation (10%), China National Petroleum Corporation (10%), Italy’s Eni (5%) and France’s TotalEnergies (5%).

  Adnoc Offshore’s broader long-term objective is to raise the asset’s production capacity to 520,000 b/d by 2027 and sustain that level through 2034.

  Vital projects in queue

  Looking ahead, another Adnoc Group subsidiary, Adnoc Sour Gas, has entered the decision-making phase for its project to increase the Shah gas plant’s sour gas processing capacity to 1.85 billion cubic feet a day (cf/d), following the receipt of commercial bids from contractors in July.

  Based on an initial evaluation of bids, China Petroleum Engineering & Construction Company (CPECC) has emerged as the lowest bidder for the Shah gas plant expansion project.

  Meanwhile, Adnoc Offshore is progressing with three additional key projects aimed at further expanding its oil and gas production capacity.

  The first is a major project to increase oil production from the Satah Al-Razboot (Sarb) field, located within the Sarb and Umm Lulu concession in the Gulf.

  Contractors including US-based McDermott, China Offshore Oil Engineering Company (COOEC), UAE/Saudi-based Lamprell and Abu Dhabi’s NMDC Energy submitted bids for the two main EPC packages of the Sarb field development in September. Adnoc Offshore is believed to be nearing a decision, with the contract award expected by year-end.

  Adnoc Offshore is also advancing a project to boost gas and condensate production from the Umm Shaif field. The primary goal of the Umm Shaif gas cap and surface pressure boosting project is to increase gas production by 550 million cf/d and raise associated condensate output by 50 million b/d. Adnoc Offshore plans to feed approximately 520 million cf/d of the additional gas output into Adnoc Group’s sales gas network.

  Adnoc Offshore is in the tendering phase for three EPC packages of the Umm Shaif gas cap development project – two offshore packages and one onshore – with contractors currently preparing technical bids.

  After awarding EPC contracts worth over $1.3bn last year for two key projects as part of its campaign to increase oil production capacity at the Upper Zakum offshore field to 1.2 million b/d, Adnoc Offshore is now moving forward with the next expansion phase, which will boost the asset’s capacity to 1.5 million b/d.

  Located 84 kilometres offshore from Abu Dhabi, Upper Zakum is the world’s second-largest offshore oil field and the fourth-largest overall. Contractors are currently preparing technical bids for the UZ1.5MMBD project, with the EPC scope reportedly divided into three packages.

  Separately, Adnoc Gas – the natural gas processing arm of Adnoc Group – is working towards a final investment decision (FID) on a project to process gas from the Bab onshore field in Abu Dhabi in 2026.

  Adnoc Gas is nearing the issuance of the main tender for the Bab gas cap development project, having completed early engagement with interested contractors.

  Adnoc Gas is close to issuing the main tender for the Bab gas cap development project, having completed an early engagement process with contractors interested in participating. EPC works on the Bab gas cap project – which will add 1.85 billion cf/d of gas output – are scheduled for completion in 2029.

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  MEED's November 2025 special report on the UAE also includes:

  > GOVERNMENT: Public spending ties the UAE closer together
  > ECONOMY: UAE growth expansion beats expectations
  > BANKING: Stability is the watchword for UAE lenders
  > DOWNSTREAM: Taziz fulfils Abu Dhabi’s chemical ambitions at pace
  > POWER: UAE power sector hits record $8.9bn in contracts
  > CONSTRUCTION: UAE construction faces delivery pressures
  > TRANSPORT: $70bn infrastructure schemes underpin UAE economic expansion

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  Indrajit Sen
• 
  Global renewable capacity to double by 2030

  13 October 2025

  Register for MEED’s 14-day trial access 

  Global renewable power capacity is expected to more than double by 2030, led by a surge in solar photovoltaic (PV) deployment, according to the International Energy Agency’s (IEA) latest medium-term forecast.

  The Renewables 2025 report projects an additional 4,600GW of capacity, equivalent to the combined power generation of China, the EU and Japan.

  Solar PV will account for around 80% of this increase, driven by declining costs and faster permitting timelines. Growth in wind, hydropower, bioenergy and geothermal will also contribute, with geothermal installations on track to reach record levels in key markets such as the US, Japan and Indonesia.

  The IEA notes that emerging economies in Asia, the Middle East and Africa are accelerating renewable energy deployment through stronger policy support and new auction programmes. India is set to become the second-largest growth market after China and is expected to meet its 2030 target comfortably.

  “The growth in global renewable capacity in the coming years will be dominated by solar PV – but with wind, hydropower, bioenergy and geothermal all contributing, too,” said IEA executive director Fatih Birol.

  “Solar PV is on course to account for some 80% of the increase in the world’s renewable capacity over the next five years,” he added.

  While overall forecasts remain strong, the outlook has been revised slightly downward compared with last year due to policy shifts in China and the US.

  The early phase-out of federal tax incentives and regulatory changes in the US have lowered growth expectations by almost 50%. China’s move from fixed tariffs to auctions has also reduced projected capacity growth.

  This has been partly offset by higher growth projections in India, Europe and other emerging markets, supported by expanded auctions, faster permitting and rising rooftop solar installations. Corporate power purchase agreements and merchant projects are expected to drive 30% of total capacity additions by 2030, double last year’s forecast.

  The report also highlights supply chain risks, with more than 90% of key solar PV and wind turbine components concentrated in China. Grid congestion and curtailment are increasing as variable renewables rise, prompting several countries to launch new capacity and storage auctions to strengthen grid integration.

  Renewables’ share in transport and heating will grow modestly, from 4% to 6% in transport and from 14% to 18% in heat supply by 2030.

  The shift will be driven by the electrification of transport in China and Europe and the expanded use of biofuels in emerging economies.

  

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  Mark Dowdall
• 
  Neom to retender Trojena Ski Village

  13 October 2025

  

   

  Trojena will retender the main construction contract for the multibillion-riyal Trojena Ski Village project in Saudi Arabia.

  The client plans to reissue the tender for the package – estimated at SR12bn-SR15bn ($3.2bn-$4bn) – “in a couple of months”, according to a source.

  In May, MEED exclusively reported that Trojena had received final offers from contractors for the Ski Village project.

  Neom requested a new round of offers after issuing an addendum in early January. Contractors submitted revised proposals on 17 May.

  The Ski Village is a superstructure consisting of five zones, from ground floor to roof, designed to mimic a ski slope and align with the surrounding mountain. The village will also include hotels, residences and retail facilities.

  Designed by Hong Kong-based architecture firm Aedas, Trojena Ski Village will be the Middle East’s first outdoor ski resort.

  The project is the centrepiece of the 2029 Asian Winter Games, which Saudi Arabia is scheduled to host in Neom.

  In August, MEED reported that high-level discussions had begun regarding a potential shift of the 2029 Asian Winter Games venue from Saudi Arabia to South Korea.

  A senior official from the Korean Sport and Olympic Committee was recently quoted by South Korean media as saying they had been contacted by the Olympic Council of Asia about the possibility of hosting the event.

  Officials from the Olympic Council of Asia and the Korean Sport and Olympic Committee met in Singapore in September for further discussions on the potential hosting of the 2029 event.

  South Korean media also reported that the Olympic Council of Asia sent an official letter to the Korean Sport and Olympic Committee following the Singapore meeting.

  The Trojena development in Neom, located in northwest Saudi Arabia, was selected in October 2022 to host the 10th Asian Winter Games in 2029.

  

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  Yasir Iqbal
• 
  Qatari cabinet approves GCC rail link to Saudi Arabia

  13 October 2025

  The Qatari cabinet has approved a draft agreement that paves the way for constructing a railway link between Qatar and Saudi Arabia, as part of the GCC railway network.

  The draft was approved on 8 October during a cabinet session chaired by Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Bin Jassim Al-Thani.

  The GCC railway project has progressed steadily since the GCC Secretariat’s official announcement in January 2021, which effectively relaunched the initiative.

  A string of recent announcements and commitments means that all six GCC states have either declared or signalled plans for their sections of the rail network.

  GCC leaders approved the establishment of the GCC Rail Authority in January 2022. It was tasked with policymaking and coordinating efforts among member states to ensure smooth project delivery and operation.

  The latest development follows MEED's report earlier in October that the authority had received technical bids for an asset management contract covering the overall scheme.

  In August, MEED exclusively reported that the authority awarded a contract to develop the GCC railway’s operational plan to a joint venture of German consultancy Dornier and India’s Balaji Railroad Systems.

  GCC railway line

  According to the overall plan, the railway will span 2,177 kilometres, beginning in Kuwait, passing through Dammam in Saudi Arabia, reaching Bahrain via a planned causeway, and continuing from Dammam to Qatar, the UAE, and ultimately Muscat via Sohar in Oman.

  The network’s route length within each member state is as follows: 684km in the UAE, 663km in Saudi Arabia, 306km in Oman, 283km in Qatar, 145km in Kuwait and 36km in Bahrain.

  The railway is designed for passenger trains travelling at 220km an hour (km/h) and freight trains operating between 80 and 120km/h.

  With high levels of project activity, governments in spending mode and the agreements under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If the railway is finally completed, it could prove transformational for a region that feels connected to the world but divided between its constituent parts.

  

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  Yasir Iqbal