Meed | Maghreb energy project activity doubles

Maghreb energy project activity doubles

12 July 2023

The total value of active oil, gas and chemical projects in the Maghreb region has more than doubled since the start of 2021 amid increased energy demand from Europe in the wake of the Russia-Ukraine war.

Algeria, Morocco and Tunisia’s energy project markets have all expanded, according to data collected by MEED Projects.

Libya has seen a slight contraction, but appears to have laid the foundation for a steady increase in activity as long as it can maintain a degree of political stability.

The total value of all active oil, gas and chemical projects across all four countries stands at $90.8bn, more than double the figure recorded in January 2020, when the total was just $43.9bn.

With the ongoing Russia-Ukraine conflict, European nations have made a significant effort to support oil and gas projects in Libya and Algeria in the hope of paving the way for increased imports that can be used as an alternative to Russian hydrocarbons.

Additionally, Morocco, home to the world’s largest concentrated solar plant, has increasingly been identified as a promising location for producing green hydrogen and fertiliser projects.

More on Algeria’s oil, gas and chemicals sectors:

> TotalEnergies signs Algeria gas deal
> Chinese contractor signs Algerian petrochemical deal
> Repsol and Pertamina sign Sonatrach oil deal
> Banks provide financing for Algeria chemicals plant
> Petrofac signs $1.5bn Algerian petrochemicals deal
> Contractors bid for Algeria chemicals plant
> Algeria seeks upstream oil and gas consultants

Algeria

In terms of oil, gas and petrochemicals projects, Algeria is by far the region’s largest projects market, with $43.1bn in energy projects.

The North African country has seen a 45 per cent increase in the total value of active oil, gas and chemical projects since the start of 2021, according to MEED Projects.

Algeria’s energy project expansion has been mainly driven by gas projects, with the total value of all active gas projects more than doubling from $10.8bn in January 2021 to $22bn in June 2023.

Chemical and oil project activity has also risen significantly, growing by 12.2 per cent and 10.7 per cent, respectively.

Despite years of poor maintenance at some of its biggest oil and gas fields, the country is taking advantage of its extensive gas reserves, its geographical proximity to Europe, and Europe’s need for alternatives to Russian gas exports.

European officials have repeatedly visited Algeria, seeking to help boost Algerian production and secure increased gas imports.

In January, Italy’s Prime Minister Giorgia Meloni called Algeria Rome’s “most stable, strategic and long-standing” partner in North Africa when she wrapped up a two-day visit aimed at securing Italy’s energy supplies and promoting her plan for investment in the continent.

On 23 January, the Italian international oil and gas company Eni announced that it would study joint projects with Algeria’s state-owned energy company Sonatrach to improve the country’s energy export capacity.

In August 2022, the president of France, Emmanuel Macron, also travelled to Algeria as it became increasingly clear that Algerian gas imports would provide a key role in Europe’s energy mix.

Algeria has also secured higher prices for gas transported to Spain, where it supplied 25 per cent of the country’s gas deliveries in January, more than any other supplier.

In January, Sonatrach announced plans to invest more than $30bn in exploration and production to boost the country’s natural gas output.

The funds will also be spent on upgrading infrastructure to export gas from liquefied natural gas (LNG) terminals and by pipelines to Europe, according to the company’s chief executive Toufik Hakkar.

Hakkar said that Algeria wants to become one of the world’s most important sources of natural gas through Sonatrach and its planned investments.

Amid the increased demand for Algerian energy, there has been a series of major announcements regarding new projects and contracts in the country.

These include the announcement that UK-based Petrofac had signed an engineering, procurement and construction (EPC) contract for an estimated $1.5bn Algerian petrochemicals project.

Petrofac has partnered with China Huanqiu Contracting & Engineering Corporation, a subsidiary of China National Petroleum Corporation, for the Step Polymers project, which is due to be developed in the Arzew Industrial Zone to the west of Algiers.

At the end of 2022, Algeria revived phase two of the Touat natural gas field development project.

The project is estimated to be worth $1bn and is being developed by Groupement TouatGaz, a partnership between Sonatrach and London-based Neptune Energy.

The project scope includes the development of 19 wells, the construction of a gas treatment plant and the installation of pipelines.

In November last year, Sonatrach signed a series of contracts with the Italian contractors Tecnimont and Arkad, as well as local contractors, in a push to develop its hydrocarbons sector.

The contracts, all signed at a single ceremony, were worth more than $660m.

The contracts included one worth AD56bn ($400m) with Tecnimont for a liquefied petroleum gas (LPG) facility at its Rhourde el-Baguel oil field.

The plant is expected to process 10 million cubic metres a day (cm/d) of associated gas, producing 1,000 tonnes a day (t/d) of LPG, 300 t/d of condensate and 8.7 million cm/d of gas.

More on Libya’s oil, gas and chemicals sectors:

> Libya has potential for energy project surge
> Libyan pipeline contract awarded
> Libyan oil company in pipeline procurement talks
> Libya’s Waha Oil plans water plant
> Halliburton in talks for $1bn Libya oil project
> UK delegation to meet Libyan oil officials
> Eni signs gas deal in Libya

Libya

Like Algeria, Libya has extensive hydrocarbon reserves and existing export routes, making it a good candidate for replacing Russian oil and gas supplies to Europe.

While the total value of active oil, gas and chemical projects in the country declined by 14.5 per cent to $9.7bn between the start of 2021 and June 2023, its energy projects market holds the potential to expand significantly over the coming months if there is no decline in the security situation.

Libya pipeline can boost Europe gas exports

Since the start of the Ukraine war, a series of major oil and gas deals have been signed in the country. Libya’s National Oil Corporation (NOC) has ramped up tendering under the leadership of Farhat Omar Bengdara, appointed in July last year.

In January, NOC announced a partnership with Italy’s Eni to develop two regions containing expected gas reserves of 6 trillion cubic feet with an estimated production capacity of 750 million cubic feet a day (cf/d) of gas for 25 years.

NOC chairman Bengdara and Eni chairman Claudio Descalzi signed the deal. The Italian company said the agreement would generate between $7bn and $9bn of investment into the country’s oil and gas industry.

In March, it was announced that a subsidiary of NOC had signed a contract with US-based Honeywell for engineering work on the planned South Refinery project in Libya.

Zallaf Oil & Gas Company said in a statement that the project would be carried out in two phases and is expected to cost between $500m and $600m.

Libya’s Waha Oil Company is in advanced talks with US-based Halliburton over a $1bn project to rehabilitate the country’s Al-Dhara oil field.

The oil field in central Libya has suffered from years of poor maintenance and was sabotaged by Islamic State militants in 2015.

If the contract is signed soon, it could help provide a significant boost to Libyan oil exports and send a signal to other international oil companies that are wary about investing in the country due to concerns about security.

More on Tunisia and Morocco’s oil, gas and chemicals sectors:

> Tunisia gas pipeline to complete before 2024
> Tunisia tenders study for refinery project
> Tunisia receives gas transmission bids
> Morocco fertiliser project progresses towards approval
> Nigeria to invest $12.5bn in Morocco pipeline
> Genel in talks to develop Moroccan oil assets
> Design completed for Moroccan gas project

Tunisia and Morocco

The dynamics in the energy projects sector in Tunisia and Morocco are different from those in Libya and Algeria because they lack the same large volumes of hydrocarbon reserves.

While Tunisia has more than doubled the value of active oil, gas and chemical projects within its borders since the start of 2021, it remains the Maghreb’s smallest energy project market.

As of 20 June 2023, it had just $1.7bn in energy projects, according to data compiled by MEED Projects.

While Morocco also lacks large volumes of hydrocarbons, it has seen a significant expansion in gas and petrochemicals projects.

The North African country is currently evaluating bids for a floating LNG import terminal in Mohammedia Port that is estimated to be worth $200m.

A project estimated to be worth $190m is also ongoing to develop the country’s offshore Anchois gas field.

The major driver of growth in the country’s chemical projects market has been phosphate fertiliser projects and green hydrogen and ammonia schemes.

In December 2022, it was announced that Total Eren, affiliated with France’s TotalEnergies, was planning to construct a hydrogen and green ammonia plant in Morocco estimated to be worth about $10bn.

Main image: View of Skikda Port, Algeria

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Wil Crisp

Exclusive from Meed

Tender issued for Libyan gas project
17 September 2026
Nakheel awards $218m Dubai Islands buildings deal
17 September 2026
Aldar and Mubadala acquire Masdar City Square
17 September 2026
Dubai announces new 80km highway corridor
16 September 2026
Contractors submit Expo 2030 convention centre interest
16 September 2026

Tender issued for Libyan gas project
17 September 2026
An invitation to bid has been issued for a contract to conduct environmental assessments for the project to expand the Mellitah oil and gas complex in Libya.

The bid submission deadline is 2pm today (17 September) Libyan time.

The scope of the project includes provision of:
- An environmental baseline study (EBS)
- An environmental impact assessment (EIA)
- An environmental management plan (EMP)
The client is Mellitah Oil & Gas (MOG), which is a joint venture of Italy’s Eni and Libya’s National Oil Corporation (NOC).

MOG is based in Tripoli and operates both onshore and offshore oil and gas facilities.

The joint venture owns and operates six major oil and gas fields across the North African country.

According to the tender documents, the company that is awarded the contract will need to prepare environmental management measures in compliance with:
- Libyan environmental legislation
- Ministry of Environment requirements
- NOC environmental guidelines
- Applicable international environmental standards and best practices
The expansion of the Mellitah oil and gas complex is part of a project estimated to be worth $8bn.

The wider project is known as the Mellitah Complex Expansion & CO2 Management Integrated Development Project.

It has six main packages:
- Onshore package
- Offshore Structure A
- Offshore Structure E
- Subsea pipeline package
- Site preparation work
- Carbon capture and storage facility
Security issues and political instability have been a major problem for Libya’s oil and gas sector since the country’s civil war started in 2011.

Earlier this month, the Mellitah oil and gas complex was forced to shut down temporarily due to a protest over deteriorating public services.

The existing onshore complex includes housing, processing units, storage facilities and export facilities.

It also serves as the launch point for the Greenstream pipeline, which delivers Libyan gas directly to Italy.

The planned expansion of the complex will involve:
- Construction of a new fourth gas processing train
- Construction of a third condensate train
- Construction of a third natural gas liquids fractionation train
- Construction of a fourth sulphur recovery unit train
- Installation of a hydrogen sulphide enrichment unit
- Installation of a sulphur recovery unit
- Construction of other associated facilities
The Mellitah complex is located about 100 kilometres west of Tripoli and is a key energy facility in the west of the country.
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Wil Crisp

Nakheel awards $218m Dubai Islands buildings deal

17 September 2026

Register for MEED’s 14-day trial access

Dubai-based developer Nakheel, now part of Dubai Holding, has awarded a main construction contract worth more than AED800m ($218m) for phases one and three of Bay Grove Residences at Dubai Islands.

The contract was awarded to the local firm Metac General Contracting Company.

It covers the construction of 537 apartments, comprising one- to four-bedroom units, across seven residential buildings.

Phase one includes 296 units in four buildings, while phase three comprises 241 units across three buildings.

The works are scheduled for completion in late 2028.

Bay Grove Residences will ultimately comprise 1,154 homes across 15 buildings. Planning is under way for the remaining 617 homes in phases two and four, with further contract awards expected.

In August last year, Nakheel awarded a AED2.6bn ($708m) contract to Abu Dhabi-based Fibrex Contracting to build the Bay Villas project at Dubai Islands. The contract includes constructing 636 villas.

In April this year, another AED527m ($143m) contract was awarded to local firm Al-Nasr Contracting Company to construct the primary infrastructure and utilities works on Island B at the development.

The Dubai Islands development consists of five islands spanning 18.6 square kilometres. It features more than 59 kilometres (km) of waterfront and 20km of beaches, as well as parks, golf courses, promenades and cycling paths.

The offshore island project gained renewed momentum in 2022, when Nakheel unveiled a new masterplan and rebranded it as Dubai Islands.

The reclaimed islands were originally part of the Palm Deira project, which was partially completed before being put on hold in 2008.

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

Aldar and Mubadala acquire Masdar City Square
17 September 2026

Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and local developer Aldar have completed the acquisition of Masdar City Square at Masdar City, in a transaction valued at AED918m ($250m).

The deal was executed through their joint venture established in 2024.

Masdar City Square comprises more than 47,000 square metres (sq m) of net leasable area across seven office buildings.

Completed in Q1 2026, the development is 99% occupied. Tenants include Taqa, the Department of Energy, Emirates College and the Mohamed Bin Zayed University of Artificial Intelligence.

The transaction expands the joint venture’s real estate portfolio in Masdar City, which is now valued at AED4.7bn ($1.3bn).

Masdar City is one of the region’s leading hubs for clean energy, artificial intelligence, advanced research and sustainable urban development.

The joint venture acquired The Link project at Masdar City for AED654m ($178m) in April.

Comprising about 32,000 sq m of net leasable area across five buildings, The Link is fully leased to a portfolio of major tenants, including Abu Dhabi Future Energy Company (Masdar) and the Mohamed Bin Zayed University of Artificial Intelligence.

The asset includes Grade A, Leed Platinum office space, a net-zero-energy headquarters building, a multi-use hall and residential accommodation, supporting its position as a high-performing, integrated component of Masdar City.

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Yasir Iqbal
Dubai announces new 80km highway corridor
16 September 2026

Dubai has approved the construction of the new fourth corridor, a major highway programme aimed at boosting inter-emirate connectivity, increasing road capacity and easing congestion.

The corridor will extend 80 kilometres, from Al-Faya Road in Abu Dhabi to Al-Shanouf Road in Sharjah.

It will include 12 lanes, 72 bridges and 17 tunnels.

The project is expected to reduce travel times by up to 60% and serve more than 3.1 million people, while providing links to Al-Maktoum International airport and Etihad Rail.

It will have the capacity to accommodate 24,000 vehicles per hour in each direction.

The project will be delivered in two phases. The first phase, running from Al-Shanouf Road to Dubai-Al Ain Road, will be delivered at a cost of AED3.5bn ($953m).

The second phase will stretch from Dubai-Al Ain Road to Al-Faya Road in Abu Dhabi.

Hamdan bin Mohammed: In line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum to boost investment in infrastructure, I approved the New Fourth Corridor to strengthen Dubai’s road network and enhance connectivity with the UAE’s federal road network.… pic.twitter.com/zlIyY2yKBN

— Dubai Media Office (@DXBMediaOffice) September 16, 2026

The scheme adds a fourth spine to a network that has long relied on three main corridors: the E11 (Sheikh Zayed Road/Al-Ittihad Road); the E311 (Sheikh Mohamed Bin Zayed Road) and the E611 (Emirates Road), which together carry more than 850,000 vehicles commuting between Dubai and the northern emirates daily.

That concentration has made the route one of the country’s most congested, with peak-hour bottlenecks a persistent problem for residents. The new corridor is designed to divert a significant share of that traffic onto a higher-capacity route, rather than add pressure to the existing network.

The project also aligns with the Dubai 2040 Urban Master Plan, which anticipates population growth to 5.8 million by 2040 and calls for the expansion of roads, railways, airports and ports to support that growth and reinforce Dubai’s position as a global trading hub. This is reflected in the corridor’s direct links to Al-Maktoum International airport and Etihad Rail.

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Yasir Iqbal

Contractors submit Expo 2030 convention centre interest

16 September 2026

Register for MEED’s 14-day trial access

Expo 2030 Riyadh Company (ERC), responsible for delivering the Expo 2030 Riyadh venue, received contractor interest on 14 September for a contract to design and build a convention centre in the site's Collaboration District.

Construction is slated to begin in January 2027 and take 29 months. The development will cover a total gross external area of more than 28,000 square metres (sq m). The total programme area will be about 22,000 sq m and the gross floor area will be 17,000 sq m. The maximum height of the building will be 41.5 metres.

The venue will be laid out across two levels, with a mezzanine, roof terraces and a 4,030 sq m basement, in addition to mechanical, electrical and plumbing and back-of-house spaces.

Two flexible exhibition halls are planned, covering a combined 7,280 sq m, as well as 3,800 sq m of pre-function space, 650 sq m dedicated to meeting rooms and 2,200 sq m of outdoor exhibition space in the north and south plazas.

The appointed main contractor will assume responsibility for packages including the early works substructure and the lead design consultant's deliverables, while carrying out the full scope of superstructure, above-ground waterproofing, external facades, masonry, base build and specialised fit-outs for VVIP, VIP and visitor areas.

Further scope includes delivering comprehensive MEP services; vertical transportation; final infrastructure tie-points; public-realm hard and soft landscaping; testing, commissioning, handover documentation; and management of the defects liability period.

The expression of interest notice was floated on 13 September.

The unusually brief expression of interest deadline of just one day underscores a compressed procurement timeline.

This accelerated tender and evaluation schedule signals that project organisers are operating under time pressure to secure contractors and maintain the tight schedule required ahead of the event's opening.

ERC expects to award the formal contract by the end of this year and begin construction in January next year.

The project is due for completion in early 2030, in time for the main event in October of that year.

Site progress

Construction activity at the Expo site is accelerating, with Riyadh moving to award its first major vertical contracts and advancing infrastructure works across the programme.

Earlier this month, MEED exclusively reported that ERC has tendered a contract to deliver the Souq areas within the expo site.

These areas are divided into five precincts, with a total development area of about 300,000 sq m.

In September, Saudi Arabia’s Royal Commission for Riyadh City awarded a design-and-build contract for the construction of a new metro station catering to the Expo 2030 site.

In April, ERC awarded two contracts for the next phase of infrastructure works at the site to local firm Alyamama Company.

The scope covered the construction of road networks and infrastructure for water, sewage, electricity, telecommunications and electric vehicle (EV) charging.

These awards followed ERC’s January award of an estimated SR1bn ($267m) contract for initial infrastructure works at the site to local firm Nesma & Partners.

That scope covered about 50 kilometres of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communications systems and EV charging stations.

The masterplan covers 6 square kilometres, making it one of the largest sites ever designated for a World Expo event. Situated north of the Saudi capital, the site will be located near the future King Salman International airport and will provide direct access to landmarks within Riyadh.

The Public Investment Fund, Saudi Arabia’s sovereign wealth vehicle, launched ERC – a wholly owned subsidiary – in June 2025 to build and operate facilities for Expo 2030.