meed-logo

line1 line2 line3
SIGN IN / REGISTER

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

https://image.digitalinsightresearch.in/uploads/NewsArticle/10968982/main.gif
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Uncertainty increases for Shell’s $3.9bn gas project in Iraq

    11 June 2026

     

    Uncertainty is increasing for phase two of the Basra Gas Company (BGC) expansion project in Iraq amid fallout from the ongoing regional conflict that started when the US and Israel bombed Iran on 28 February.

    BGC is a joint venture of the Iraqi Ministry of Oil through its subsidiary South Gas Company (51%), London-headquartered Shell (44%) and Japan’s Mitsubishi Corporation (5%).

    In September last year, the World Bank’s International Finance Corporation (IFC) signed a $500m investment deal with BGC for the phase two project.

    The entire phase two project is estimated to be worth $3.9bn, according to the IFC, which says the money will be spent between 2025 and 2030.

    Of the $500m deal that was signed in September, $300m will be provided directly by the IFC, and this was approved by the IFC’s board on 14 January this year, less than two months before the US and Israel attacked Iran.

    The subsequent conflict and the disruption to shipping through the Strait of Hormuz have created major obstacles for the project, according to industry sources.

    One source said: “Many Western workers that were specialists in the oil and gas sector have now left the country due to security concerns.

    “On top of this, it was originally assumed that required equipment for the project could be brought in through the Strait of Hormuz and that operational cash flows could be relied upon to help fund the project.”

    Due to the major disruption to shipping crude exports through the Strait of Hormuz, Iraq has had to dramatically reduce oil production in the Basra region, and, as a result, associated gas production has declined as well.

    One source said: “Right now, the state-owned oil companies in Iraq are in the midst of a financial crisis and it is unlikely that they will be able to contribute to this project in the way that was originally envisioned.”

    The main focus of the BGC phase two expansion project is a new liquefied petroleum gas (LPG) refrigeration train to increase the overall capacity of the upstream facility, where LPG and condensate are obtained through processing of the associated natural gas.

    The scope of the project also includes the construction of a new 22-kilometre-long, 132kV overhead transmission line, which will help to meet the energy demand associated with the project.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17178691/main.png
    Wil Crisp
  • PIF to work with Egypt’s TMG on Saudi real estate schemes

    11 June 2026

    Saudi Arabia’s Public Investment Fund (PIF) and Egyptian real estate conglomerate Talaat Moustafa Group (TMG) have signed a memorandum of understanding (MoU) to explore collaboration on mixed-use real estate projects across PIF-owned developments in Saudi Arabia.

    The non-binding agreement covers potential cooperation across the residential, commercial, hospitality and retail sectors, as well as integrated urban environments. PIF said the partnership would accelerate project delivery and value creation across its portfolio.

    TMG, which has nearly 55 years of experience developing large-scale integrated cities, communities and hospitality projects across Egypt, brings technical and managerial capacity to the collaboration. The company previously signed an agreement with Saudi Arabia’s National Housing Company (NHC) in early 2024 to develop more than 27,000 residential units at the Banan City project in Riyadh’s Al-Fursan suburb.

    The MoU also establishes a framework to attract additional investors to future project phases and is intended to expand private sector participation as investors, partners and suppliers.

    PIF said the agreement forms part of its broader strategy to diversify Saudi Arabia’s economy and develop its urban development and livability ecosystem – one of six strategic ecosystems under its 2026-30 strategy. That ecosystem spans housing, retail, office and community spaces and essential services.

    The MoU is subject to the satisfaction of certain conditions precedent and receipt of all necessary regulatory and internal approvals.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17181887/main.png
    Colin Foreman
  • Egypt signs $420m Gabal El-Zeit wind agreements

    10 June 2026

    Egypt has signed agreements worth $420m for the investment, operation and power purchase of the 580MW Gabal El-Zeit wind power complex in the Red Sea region.

    Gabal El-Zeit 1 has a capacity of 240MW, while Gabal El-Zeit 2 and 3 have capacities of 220MW and 120MW, respectively.

    The agreements were signed between Egypt’s New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and Dubai-based Alcazar Energy.

    Under the agreements, Alcazar Energy will invest in, operate and manage the farms through a project company established under Egyptian law.

    The company will be responsible for technical operations, maintenance and efficiency upgrades while maintaining a minimum capacity of 580MW throughout the contract period.

    The Egyptian Electricity Transmission Company will purchase the electricity generated by the plant.

    The agreements follow earlier efforts to privatise the Gabal El-Zeit wind complex, involving a deal with UK-headquartered private equity firm Actis.

    According to the Egyptian government, the project supports the country’s state ownership policy and national energy strategy, which aim to increase the share of renewable energy in the electricity mix to 45%.

    The Gabal El-Zeit area on Egypt’s Red Sea coast is one of the country’s most established wind power development zones. The latest Gabal El-Zeit wind farm was completed in 2014, according to MEED Projects data. Germany’s Siemens Gamesa was the main contractor. 

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170360/main.jpg
    Mark Dowdall
  • Majid Al-Futtaim awards $545m Ghaf Woods contract to ECC

    10 June 2026

    Majid Al-Futtaim Properties has appointed Engineering Contracting Company (ECC) as the main contractor for the Capria East, Capria West and Maravelle Residences developments at its Ghaf Woods community in Dubai, in a deal valued at AED2bn ($545m).

    The contract covers the construction of one-, two- and three-bedroom apartments and duplex residences across the two Capria clusters.

    The award adds to a series of major construction contracts Majid Al-Futtaim has issued across its Dubai communities in recent years.

    In May, local contractor Al-Sahel Contracting was awarded a AED700m contract for the Distrikt development, also at Ghaf Woods.

    In 2024, Majid Al-Futtaim awarded AED3bn in contracts for its Tilal Al-Ghaf community, appointing Innovo Build to build 94 waterfront villas at Elysian Mansions and United Engineering Construction (Unec) to deliver 130 villas at the Alaya development.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17170744/main.jpg
    Colin Foreman
  • Saudi Arabia and Turkiye sign railway agreements

    10 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia and Turkiye have signed two memorandums of understanding (MoUs) to strengthen bilateral cooperation in the railway and logistics sectors, advancing Riyadh’s ambitions to become a global logistics hub.

    Transport and Logistics Services Minister Saleh Al-Jasser and Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu signed the agreements at the ministry’s headquarters in Riyadh on 9 June, following ministerial talks held with a high-level Turkish delegation. Transport General Authority president Fawaz Al-Sahli and officials from the kingdom’s transport and logistics sector were also present.

    Agreement scope

    The first MoU covers logistics services and operations, including the exchange of expertise, policies and regulations. The second focuses on railway technologies, signalling and communication systems, railway digitalisation, human capacity development, the localisation of the railway industry and measures to reduce the sector’s environmental impact.

    More broadly, the agreements cover cooperation on railway standards and related innovations, the exchange of expertise on the design, operation and maintenance of rail projects, and engineering, infrastructure and safety standards.

    The two sides will also cooperate on research and development, with provision for joint workforce training through specialist railway academies.

    Riyadh said the agreements will help support its National Strategy for Transport and Logistics Services and Saudi Vision 2030, which seeks to position the kingdom as a logistics bridge connecting three continents.

    Turkish projects

    Turkish contractors have already established themselves as key players in the region’s rail sector. In 2012, Yapi Merkezi secured a $2.1bn contract for work on the Haramain high-speed rail network in Saudi Arabia, while Turkish firms Mapa and Limak are leading the ongoing civil works on Dubai’s $5.5bn Metro Blue Line project as part of a China Railway Rolling Stock Corporation (CRRC) consortium. Turkish consultancy Proyapi Muhendislik ve Musavirlik Anonim Sirketi has also won design contracts for the 111km Kuwait National Rail Road project.

    The agreements signed by Saudi Arabia and Turkiye may also give momentum to longstanding discussions around a rail corridor linking the GCC with Turkiye. The route, which has been discussed for years, has gained renewed impetus in recent months as the effective closure of the Strait of Hormuz has pushed regional governments to accelerate the development of overland trade alternatives.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17169958/main.gif
    Colin Foreman