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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Egypt and Russia signed the initial inter-governmental agreement for the North African state’s first nuclear facility in November 2015.
Rosatom, the project’s main contractor, announced that it started the production of electrical components in Saint Petersburg for a reactor vessel for the plant in June 2022.
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El-Dabaa project status
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The latest advancements align with Egypt’s annual Nuclear Energy Day, observed on 19 November to mark the 2015 agreement that initiated the El-Dabaa project.
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Iraq unveils 20-year plan to add 57GW of power capacity21 November 2025
Register for MEED’s 14-day trial access
Iraq has unveiled a 20-year plan to add 57GW of new power capacity in partnership with Germany’s Siemens Energy and US-based GE Vernova.
The programme aims to expand the electricity sector through new gas-fired plants, renewable energy schemes and long-term maintenance plans for existing plants.
Prime Minister Mohammed Shia Al-Sudani announced the plan on 19 November as he launched a project to build the 1,400MW Al-Youssifiyah thermal power plant under a build-own-operate (BOO) model.
Located about 30 kilometres from Baghdad, there have been previous attempts to restore the Al-Youssifiyah plant, which has been stalled since it was destroyed during the Gulf War.
In 2015, the project was cancelled amid civil unrest in the region.
No official timeline was given for the latest “implementation phase” of the project.
In a statement, however, the prime minister said the country will move towards an alternative financial model for electricity investments.
“We have adopted an investment financial model that addresses the injustices of previous phase contracts to provide an attractive environment for investment,” he said.
“We have worked to reduce the tariff rate and provide up to a 43% [reduction] from previous contracts while preserving public funds,” he added.
MEED understands that these savings refer to reduced generation costs under a model supported by long-term power purchase agreements (PPAs).
Al-Sudani has also directed the ministry to calculate the actual cost of producing electricity and recover it through improved billing and collection.
Iraq’s government has also set a target of adding more than 7GW of solar capacity by 2030 to reduce reliance on oil- and gas-fired generation. The country continues to face chronic electricity shortages, especially during the summer months, as it aims to meet 24-hour demand.
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Kuwait upstream project to be completed in 202721 November 2025

State-owned upstream operator Kuwait Oil Company (KOC) is expecting its project to install depletion compression systems and sulphur recovery units (SRUs) to be completed in the middle of 2027, according to industry sources.
KOC signed a contract with Kuwait-based engineering contractor Spetco earlier this year, and construction work is currently ongoing.
In November last year, Spetco submitted a bid of KD126.5m ($412m), beating bids from companies based in China, Saudi Arabia and India.
The project involves installing new units at the facilities known as Early Production Facility 50 (EPF-50) and Jurassic Production Facility 3 (JPF-3).
Tender documents were originally made available on 17 September 2023, with a bid deadline of 17 December that year.
Due to scope changes, the deadline was extended several times before bids were ultimately submitted ahead of a 15 October 2024 deadline.
Scope changes
In August last year, MEED reported that the estimated budget for the project had been increased from about $380m to approximately $460m due to scope changes.
The project uses the build-own-operate-transfer contract model.
EPF-50 and JPF-3 are sour hydrocarbons processing and handling facilities located in North Kuwait, designed to handle high-pressure (HP) sour hydrocarbons from several Jurassic wells in North Kuwait fields.
The project was launched to sustain production from the facilities by installing compression systems and SRUs.
Boosting compression
The contract’s original scope of work was divided into two parts, according to the tender documents that were released in September 2023.
The first part focused on installing a new medium-pressure (MP) compression system and SRU at EPF-50.
The second part focused on installing a new MP compression system and SRU at JPF-3.
The EPF-50 and JPF-3 facilities receive sour wet hydrocarbons reservoir fluids through flowline gathering networks and trunk lines.
Crude, gas and water are separated in a separation section that is currently receiving well fluid at 1,100 pounds a square inch gauge (psig), and the crude is stabilised for export after desalting.
The separation section consists of HP, MP and low-pressure (LP) separators in series. MP and LP gases are compressed to HP and combined with gas from HP separators.
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Regional rail construction surges ahead21 November 2025

> This package also includes: Middle East becomes a hub as rail networks mature
The GCC is at the centre of global rail construction activity after a decade of stop-start activity. Progress is being made on several large-scale rail schemes, providing renewed opportunities for international contractors to re-enter the market.
From the Qiddiya high-speed rail in Saudi Arabia to the planned expansion of Dubai’s metro network and the long-awaited revival of the GCC railway, a new wave of projects is shaping the region’s economic future.
Well-timed resurgenceAccording to data from regional projects tracker MEED Projects, the region boasts a pipeline of over $140bn-worth of railway schemes. Several factors are driving the renewed focus on major infrastructure.
Firstly, the region’s post-pandemic recovery has been underpinned by robust fiscal performance. Higher oil prices since 2022 have strengthened government balance sheets, enabling public investment in capital projects. Unlike in previous cycles, however, the current wave of spending is guided by a clearer vision rooted in diversification and long-term national development strategies.
Saudi Arabia’s Vision 2030, the UAE’s Centennial Plan 2071 and Oman’s Vision 2040 all emphasise connectivity, mobility and urban liveability as essential components of sustainable growth. Governments are therefore prioritising infrastructure that forms the backbone for tourism, logistics and housing development.
Secondly, project delivery capabilities have matured across the GCC. Local developers, contractors and authorities have gained experience delivering large and complex schemes such as the Dubai and Riyadh metros and Doha’s Fifa World Cup infrastructure. This has built confidence and the capacity to handle more ambitious undertakings.
Thirdly, global construction markets are shifting. With slowing growth in some developed economies, the GCC offers a stable, well-capitalised and politically supportive environment for investment.
In addition, international contractors, consultants and suppliers are facing shrinking margins elsewhere and are therefore refocusing on the Gulf region’s more promising project pipelines.
Strong prospects
Saudi Arabia has a pipeline of about $60bn-worth of rail projects. The long-discussed Saudi Land Bridge, connecting the Red Sea to the Gulf through Riyadh, is being prepared for procurement. Once complete, it will be a 1,300-kilometre (km) corridor from Jeddah to Dammam, transforming freight logistics and positioning Saudi Arabia as a regional trade hub.
The kingdom’s planned Qiddiya high-speed rail, meanwhile, will link King Salman International airport with Qiddiya entertainment city. It is part of Riyadh’s broader mobility masterplan and reflects the government’s intention to integrate developments with efficient public transport.
Riyadh also continues to expand its metro system, with Line 7 currently under tendering. This addition will extend the network’s reach to growing urban districts, further embedding mass transit into the daily life of the city.

Dubai is moving forward with the proposed Metro Gold Line
In the UAE, the momentum is just as strong. The ongoing Etihad Rail project is entering a new phase with the anticipated rollout of passenger services, connecting Abu Dhabi, Dubai and eventually the northern emirates. Freight operations are already under way, providing a backbone for industrial connectivity and cross-border trade. Plans for an Abu Dhabi–Dubai high-speed link are also progressing as bid evaluation continues for the main construction works.
Dubai is also going ahead with the proposed Metro Gold Line, which is designed to serve new growth corridors and improve connectivity to emerging districts.
Meanwhile, regional integration is back on the agenda with the GCC Railway, a long-delayed project that is finally gaining traction. Once realised, the network will connect Kuwait to Oman via Saudi Arabia, Bahrain, Qatar and the UAE, and governments are now actively coordinating to align standards, timelines and funding mechanisms.
The GCC offers a stable, well-capitalised and politically supportive environment for investment
Evolving delivery models
While public funding remains central to these initiatives, the GCC’s infrastructure landscape is also seeing a gradual shift towards new delivery and financing models.
Public-private partnerships (PPPs) are gaining traction, especially in Saudi Arabia. The proposed Qiddiya high-speed rail project is planned as a PPP, while several components of Hafeet Rail are being delivered through joint ventures providing financing arrangements.
This evolution comes with challenges, however. These frameworks must balance investor confidence with
public value, creating a need for clear risk allocation and transparent governance.The scale and ambition of the ongoing projects have not gone unnoticed internationally. Leading construction, engineering, and technology firms are either expanding or returning to the region after years of reduced activity.
Global rail specialists are competing for lucrative contracts in the region, while international consultancies are increasingly embedded in master planning and programme management roles.
The resurgence in project activity within the regional rail sector means firms will have many prospects to explore.
“The regional market has not been this exciting in a long, long time,” a senior executive from a major international rail firm told MEED.
“The market is shaping up for a golden era in rail and we will make sure that we give it our full attention.”
Another executive added: “This is primarily because of the resources available to governments now compared to in previous years, but more importantly [it is due to] the intent and will to make the projects happen.”
The GCC’s clear project pipeline and decisive execution are also a draw. Several rail projects in the region, such as Dubai Metro and Etihad Rail, have progressed from concept to implementation in relatively short timeframes.
Moreover, sustainability and innovation are becoming central to the GCC’s value proposition. Digital engineering, modular construction and low-carbon materials are being adopted more widely.
Developers are under pressure to meet environmental standards and align with global best practices. Commitment to these concerns, particularly through the UAE and Saudi Arabia’s net-zero goals, further enhances the region’s attractiveness to global investors.
Bringing together transport, tourism, logistics and sustainability is creating a practical approach to modern urban development
Challenges ahead
Despite the optimism, challenges remain. Cost pressures, supply chain disruptions and competition for skilled labour could slow progress or inflate project budgets.
The rapid pace of project launches also risks overstretching local capacity. Maintaining quality, timelines and financial discipline will require strong governance and careful coordination between various government agencies.
Long-term success depends on integrating infrastructure investment with broader social and economic goals. Transport systems must connect to affordable housing, job clusters and educational hubs, otherwise benefits remain limited.
That said, the GCC has shown remarkable adaptability. The lessons learned from previous cycles, especially the importance of phasing, master planning and stakeholder alignment, are helping to shape current strategies. Authorities are more selective, prioritising projects that yield clear economic multipliers and align with national visions.
The current wave of infrastructure expansion looks set to position the GCC region as a global rail construction hotspot. The projects will also define the physical and economic landscape of the region for decades to come.
By connecting cities, ports, and industries, these projects are reshaping the region’s economy. Bringing together transport, tourism, logistics and sustainability is creating a practical approach to modern urban development.
If the previous era of regional construction was defined by skyscrapers and luxury resorts, the coming decade will be defined by connectivity and integration. The GCC’s major projects today are not about scale alone, but also about building more connected economies that can sustain growth.
The renewed momentum also presents an opportunity for regional governments to amplify their national ambitions by building more diversified economies, reducing carbon emissions and enhancing liveability.
Main image: Haramain high-speed train in Jeddah, Saudi Arabia
Middle East becomes a hub as rail networks mature: MEED interviews Martin Vaujour, Alstom’s Africa, Middle East and Central Asia region presidenthttps://image.digitalinsightresearch.in/uploads/NewsArticle/15132273/main.gif -
Middle East becomes a hub as rail networks mature21 November 2025

The resurgence in investment in metro and intercity lines means the region is no longer an emerging market for the global rail industry. It is now an established hub with an expanding network of projects and, increasingly, the need for ongoing servicing, upgrades and new technologies.
“We are reaching a point where it is not just about building new lines. Customers are now understanding that it is not enough to just buy new trains – they also need long-term partnerships to service and maintain them efficiently,” says Martin Vaujour, Alstom’s Africa, Middle East and Central Asia region president.Alstom, which has supplied rolling stock and systems for major schemes in the region such as the Riyadh Metro, is now seeing growing demand for both new-build contracts and service agreements. “There are still lots of new investments,” he says, “but also growing activity in signalling projects, service projects and spare parts – areas that used to be small but are now taking off. That is a [source] of satisfaction for me, because those businesses are less risky, have better margins and create long-term relationships with customers.”
The change is an important development as the region becomes a mature market with diverse opportunities for the rail industry. “There was a time when countries would just buy materials with export credit,” says Vaujour. “Now, they are supporting local capacity to service and maintain trains. The mindset is evolving, and that is a very positive sign.”
Saudi expansion
Buoyed by the opening of Riyadh Metro at the end of 2024, Saudi Arabia remains an important market. “They are happy with the success [of Riyadh Metro],” says Vaujour. “There is extension work on the existing lines, new rolling stock being discussed and a potential Line 7 project. The network is expanding, and that is a great success story.”
The next wave of growth in Saudi Arabia includes the planned Qiddiya Express high-speed line, which has recently attracted expressions of interest.
“That project has been on our radar for some time,” says Vaujour. “It is under the umbrella of the Royal Commission for Riyadh City, which is very well organised and structured. That gives the project strength and credibility.”
The scheme is being developed as a public-private partnership, a model that Vaujour says fits Saudi Arabia’s stable economic environment. “Public-private partnerships (PPPs) take longer to put together because they are more complex to structure, but in countries like Saudi Arabia – stable and with the capacity to raise debt – why not?” he says.
“We are fine with PPPs. We have experience from France, the UK and Spain.”
While Alstom does not invest directly, it plays a key role in structuring deals. “We are facilitators and advisers,” says Vaujour.
“Our job is to accompany the customer, to adjust and iterate with them, and to help find the best solution. PPP is one of the tools in the box – not the simplest one, but one that works.”
The challenge in the market today is not a lack of opportunity, but deciding where to focus.
“Our main problem is not the market; it is how to be selective,” he says. “We have more than enough opportunities to ensure a nice trajectory of growth. The difficulty is to pick our battles and fight for the right ones.”
The challenge in the market today is not a lack of opportunity, but deciding where to focus
Shifting focus
In Africa and Central Asia, Alstom has long-term locomotive and commuter train partnerships that offer years of visibility. In the Gulf, by contrast, the model remains dominated by engineering, procurement and construction-style projects.
“It is more big projects, where civil contractors team up with us to deliver metros or airport people movers,” says Vaujour.
As regional urban transport networks become established, attention is turning to intercity and high-speed rail. “In the Gulf, the Abu Dhabi-Dubai high-speed project is probably the most advanced, while Qiddiya Express and upgrades to the Haramain line in Saudi Arabia could also accelerate momentum.”
Interest in high-speed connections between Riyadh, Doha and Kuwait is also growing, although such schemes will depend on electrification. “High-speed rail comes with electrification,” Vaujour notes. “And that means significant investment.”
In addition to new infrastructure, the rail sector is being reshaped by technology. Alstom is investing in clean traction systems, such as hydrogen and battery-powered trains, as well as in autonomous operations.
“Hydrogen and battery traction are progressing, but they are still in an early stage,” says Vaujour. “Diesel will continue to dominate freight for some time, because there is no clean technology yet that can deliver that level of power. But for passenger services, we are starting to see progress.”
Driverless trains are another major growth area. “Customers everywhere are interested, partly because it is increasingly hard to find drivers, and also because software drives more efficiently than humans. It is more energy-efficient and reduces wear and tear,” says Vaujour.
As the Middle East’s networks expand, upgrading existing infrastructure is becoming as important as building new lines. Signalling systems are central to this evolution. “You cannot just create new lines every year – it is too expensive,” says Vaujour. “Signalling allows you to double train frequency. It is what makes networks more efficient.”
The evolution reflects a wider transformation of the region’s rail sector. “The Middle East has become an established rail hub,” says Vaujour. “It is no longer just about building – it is about operating, maintaining and evolving.”
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