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  Chinese firms expand oil and gas presence

  25 November 2025

  

   

  > This package also includes: Larsen & Toubro climbs EPC contractor ranking

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  Chinese contractors have been present in the oil and gas projects market in the Middle East and North Africa (Mena) region since the turn of this century, but largely remained on the fringes. In a hydrocarbons market that has traditionally been dominated by European and American contractors, and those from Japan and South Korea, Chinese firms have become a rising force, especially since the start of the decade.

  Economic competitiveness in bid battles, significant improvement in engineering and technological capabilities and commitment to execution schedules have been primary factors behind the success of Chinese contractors in the regional oil and gas projects market since 2020.

  Competitive edge

  Traditionally, Chinese engineering, procurement and construction (EPC) contractors have enjoyed a lower cost base than their international competitors. This comes from lower manpower costs, access to cheaper materials and equipment, and financial support from state banks. 

  In addition, Chinese firms have typically had a different attitude to risk than many other contractors. Instead of seeking to turn a profit on specific projects, Chinese firms have entered markets cautiously and, as their knowledge of the local market grew, built a commanding long-term position.

  More recently, the edge that Chinese contractors enjoy has come from the technical experience they have gained from delivering large-scale, complex projects in their domestic market. While in the past Chinese contractors were only considered capable of delivering basic construction work, they now have some of the best project references in the world.

  Regional leaders

  Chinese EPC contractors have strengthened their performance in the Mena oil and gas projects market, particularly since the end of the Covid-19 pandemic. Since 2023, the combined value of projects won by Chinese firms has consistently remained well over $13bn, with them winning key contracts on major projects.

  The largest EPC scheme under execution by a Chinese contractor in the region is on a project to maintain and increase the oil production potential of the Bul Hanine offshore oil field development in Qatar. China Offshore Oil Engineering Company won contracts worth $4bn for the two main EPC packages of the project in the third quarter of 2025.

  Also this year, Abu Dhabi’s Taziz awarded the main EPC contract to build a complex of specialty chemicals plants in the Taziz Industrial Chemicals Zone at Ruwais Industrial City to China National Chemical Engineering & Construction Corporation Seven (CC7). 

  The EPC contract is valued at $1.99bn, with work expected to be completed by Q4 2028. The chemicals cluster, known as Project Salt, will produce 1.9 million tonnes a year of marketable polyvinyl chloride (PVC), ethylene dichloride (EDC), vinyl chloride monomer (VCM) and caustic soda.

  Chinese contractors have also enjoyed success in Saudi Arabia, with Aramco having awarded several key EPC contracts to Chinese firms since 2023. China Petroleum Engineering & Construction Company, Sepco and Sinopec Petroleum Services are executing EPC works on four out of the 17 packages of the third expansion phase of Aramco’s Master Gas System project.

  Sinopec Group has played a significant role in Aramco’s Jafurah unconventional gas development in Saudi Arabia. In a consortium with Spanish contractor Tecnicas Reunidas, in 2024 Sinopec won packages one and two of the Riyas natural gas liquids scheme, part of the second Jafurah unconventional gas expansion phase. The combined value of the two EPC contracts was $3.2bn.

  Just weeks after securing these EPC contracts, the consortium also won the contract to deliver the entire scope of work on the scheme’s third expansion phase, valued at $2.24bn.

  In Iraq, China Petroleum Engineering (CPE) won a major contract in August to carry out EPC works on a package covering a major seawater transmission pipeline to be built in Basra as part of the larger Common Seawater Supply Project, which is one of four main components of the estimated $10bn Gas Growth Integrated Project masterplan.

  Work on the $2.52bn contract will be carried out by CPE’s engineering arm, China Petroleum Pipeline Engineering.

  China has built up extensive resources, from skilled personnel to technical know-how. As the domestic market shows signs of slowing, these resources are being deployed internationally, supporting the growing presence of Chinese contractors in the Mena region.

  MEED's 2025 EPC contractor ranking

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  Indrajit Sen
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  Saudi housing entity awards infrastructure contract

  24 November 2025

  

   

  Saudi Arabia’s National Housing Company (NHC) has awarded Riyadh-based Alomaier Trading & Contracting Company a contract to carry out infrastructure works at its Khuzam residential development in Riyadh.

  The scope of work covers all infrastructure works across an area of 4,000,000 square metres (sq m) in stage three, phase three of the Khuzam residential project.

  Construction works have started, and the project is expected to be completed in 2028.

  NHC’s Khuzam project is located to the north of Riyadh, near King Khalid International airport and the Expo 2030 site.

  The development will offer more than 50,000 residential units and will include parks, commercial areas and other associated amenities.

  It will also feature a grand park spanning an area of more than 4.5 million sq m.

  MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

  By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and become one of the 10 wealthiest cities in the world.

  Alomaier Trading & Contracting is undertaking some major infrastructural development projects across the kingdom.

  In 2023, MEED reported that Saudi Arabia’s National Water Company had awarded a contract worth SR371m ($99m) to Alomaier Trading & Contracting. It covers the construction of a sewage network in Dammam’s King Fahd suburb and adjacent areas.

  The contract also involves the construction of regression lines with diameters of up to 700 millimetres (mm) and a total length of 300 kilometres (km), as well as five ejection lines with diameters of up to 500mm and a total length of 15km, according to data obtained from the regional projects tracker MEED Projects.

  The firm specialises in the construction of roads, railways and other infrastructural development works.

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  Yasir Iqbal
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  Saudi utility firm awards water transmission contract

  24 November 2025

  Saudi Arabia’s state-owned utility National Water Company (NWC) has awarded a contract for the operation and maintenance of water distribution networks to local firm International Water Distribution Company (Tawzea).

  The project comprises the operation and maintenance of water transmission pipelines in Medina province, Sisco Holding announced.

  Sisco Holding, also known as Saudi Industrial Services Company, holds a 50% stake in Tawzea. The other 50% stake is owned by Amiantit Water, a subsidiary of Saudi Arabian Amiantit Company.

  The contract is valued at SR133.4m ($35.6m) and has a duration of 36 months.

  It covers main and secondary pipelines, reservoirs, pumping stations, valves and all related components of the water distribution system.

  NWC has also been advancing major sewer network expansion plans in Hafar Al-Batin and Al-Qaisomah.

  The utility recently awarded local firm Alkhorayef Water & Power Technologies (AWPT) a contract to deliver the next phase of this project.

  The phase four (part two) package involves constructing about 184 kilometres of sanitary sewer pipeline.

  As of September, NWC had awarded $337m-worth of contracts. This includes a separate contract awarded to AWPT in August for a sewage network scheme in Al-Kharj governorate.

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  Mark Dowdall
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  Larsen & Toubro climbs EPC contractor ranking

  24 November 2025

  

   

  The oil, gas and petrochemical engineering, procurement and construction (EPC) sector in the Middle East and North Africa (Mena) has enjoyed another strong year in historical terms.

  This remains true even though the total value of awards in 2025 – $62.5bn as of the first week of November – looks set to fall short of the record highs of $86bn in 2023 and $95bn in 2024. The level of market activity nevertheless remains well above the long-term average of $46bn and the 10-year average of $50bn.

  Looking beyond the top line, the most notable trend of the year is the outsized success of India’s Larsen & Toubro (L&T) in securing many of the largest recent schemes in Saudi Arabia and Qatar. 

  Chinese contractors have also made steady progress in increasing their market share. Some industry stalwarts, by contrast, have seen considerably less success.

  While some of this can be attributed to the cyclical nature of tendering and more selective bidding by established players with already large order books, MEED’s ranking of total execution values bears out the broader trends.

  

  L&T’s dramatic surge

  The most dramatic shift in the EPC landscape over the past 12 months (Q4 2024-Q3 2025) has been a $12.7bn surge in awards secured by L&T. This rapid expansion of its value of work under execution to $25.4bn has brought the company to within one place of the top of MEED’s EPC contractor rankings – falling just shy of the $26.9bn currently being executed by Italy’s Saipem.

  L&T’s recent successes include the March win of the $4bn combined package 4A and 4B (Comp4) of QatarEnergy LNG’s North Field Production Sustainability programme – the largest project awarded during the period. L&T also won the $2.5bn fifth natural gas liquids train (NGL-5) project from QatarEnergy, and four separate contracts worth more than $1bn each with Saudi Aramco.

  These wins built on an already burgeoning order book – one that also includes the $3.6bn phase 2: package 1 of the Jafurah gas treatment facility, awarded by Aramco in September 2023.

  L&T’s rise has also been helped by relative inactivity among other top firms. Both Saipem and Italy’s Maire Tecnimont achieved prominent ranking positions a year earlier after securing, respectively, the $8.2bn offshore and $8.7bn onshore packages of Adnoc’s Hail and Ghasha programme in October 2023. Those awards, together with other contracts, saw the two Italian firms secure roughly $12bn in awards each in a single 12‑month stretch, catapulting them up the ranking.

  However, neither company has added significantly to their pools of work over the past 12 months, in sharp contrast with L&T, which has seized momentum in the regional contracting landscape. So far, L&T has displaced Maire Tecnimont to reach second place regionally; another year of even marginally comparable momentum should put it at the top.

  Also notable is the gap between L&T’s total awards over the past 12 months and those of its nearest competitors. L&T’s $12.7bn in wins rivals the combined value of the next three largest EPC contractors. As a share of an estimated $70bn in total awards across the sector over the same period, L&T secured about 18% of the work.

  The previous year, Saipem and Maire Tecnimont each secured closer to 12% of awards. This underlines L&T’s considerable momentum both in terms of its order book and market share growth.

  Chinese push

  Two other significant winners over the past 12 months are China Petroleum Engineering & Construction Corporation (CPECC) and China Offshore Oil Engineering Company (COOEC), which secured $5bn and $4.3bn-worth of awards, respectively.

  These contracts wins have moved the two Chinese firms up into the top 20 EPC contractors. CPECC’s success is largely attributable to the niche it has developed in Iraq and Algeria, where about $4.4bn of its awards were won – led by a $1.6bn contract to deliver the central gas complex for Basra Oil Company’s Artawi development.

  COOEC’s recent wins have been concentrated in the GCC, specifically on phases one and two of QatarEnergy’s Bul Hanine offshore oil field expansion, which are worth a combined $4bn.

  The US’ McDermott and Spain’s Tecnicas Reunidas – two long-term regional players – recorded the next strongest order-book additions, securing about $3.8bn and $3.4bn, respectively. McDermott’s new work includes the $2bn phase two of Adnoc Offshore’s Umm Shaif long‑term development plan and a $1.8bn contract to lay offshore pipelines and subsea power cables for QatarEnergy LNG’s North Field South programme.

  The next five biggest bookers over the period were South Korea’s Samsung C&T and Samsung E&A, the UAE’s Lamprell and Target Engineering, and Qatar’s Doha Petroleum Construction Company (DOPET) – each securing more than $2bn.

  Samsung C&T’s top award was for QatarEnergy’s $2.5bn carbon sequestration complex; Samsung E&A’s was for Taziz Chemicals’ $1.7bn methanol plant in phase one of its industrial chemicals zone.

  Lamprell secured five separate contracts from Saudi Aramco, the largest a $1.5bn award for offshore infrastructure on the Zuluf development.

  Target secured three UAE contracts, led by a $1.5bn award from Adnoc Offshore for phase five of its Das Island terminal facilities (part of the Lower Zakum long‑term development).

  DOPET secured two contracts from QatarEnergy, led by a $2bn award for phase three of the Bul Hanine offshore oil field expansion.

  Across the activity, it remains conspicuous how rapidly values fall away from the top winners and how concentrated the recent awards are with L&T. While the contraction in total award value may partly explain this dynamic, the broader trend is clear: the concentration of work with L&T makes it the company to watch in regional bidding rounds in the year ahead.

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  John Bambridge
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  Chinese firm signs deal for Algerian steel project

  24 November 2025

  China’s Sinomach Heavy Equipment has signed a contract to develop a steel rolling facility in Algeria.

  The project will be executed by its subsidiary, China National Heavy Machinery Corporation (CNHMC).

  The turnkey contract includes planning, design, equipment supply, construction, installation and commissioning.

  The scope of the project includes:

  • A rolling mill production line
  • Auxiliary facilities
  • Steel structure workshops

  In a statement, CNHMC said: “The signing of this contract marks a new stage in the company's market expansion in the African metallurgical sector.

  “CNHMC will fully leverage its technological and management advantages in the metallurgical field, strictly control the project's quality and schedule, and strive to complete and deliver the project on schedule with high quality and high standards, making it a benchmark project in the Algerian market.”

  The company said it will use its regional headquarters in Turkiye to ramp up its activities in the Algerian market and other neighbouring countries.

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  Wil Crisp