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• 
  Saudi Arabia battery storage awards provide fresh lift

  24 August 2026

  Commentary
  Mark Dowdall
  Power & water editor

  The latest battery storage awards provide a welcome injection of investment into Saudi Arabia’s power market, which has seen a sharp slowdown in contract awards this year.

  Saudi Power Procurement Company’s four Group 1 storage service agreements, announced last week, are worth more than $1.16bn and cover 2,000MW of capacity.

  That is significant against the wider market. According to regional project tracker MEED Projects, Saudi Arabia recorded $19.7bn in power sector contract awards in the first seven months of 2025, compared with just $2.5bn in new awards in the same period this year.

  The battery energy storage system (bess) awards therefore account for a sizeable share of the activity recorded so far this year and provide a much-needed source of new contracting activity.

  Importantly, this is not a one-off. SPPC issued the request for proposal (RFP) for its second group of bess projects in July, covering six projects with a combined capacity of 3,000MW and 12,000MWh.

  With the Group 1 tender taking around 18 months from RFP to contract award, it is reasonable to expect Group 2 contracts to be signed in 2027.

  At the same time, the awards for six independent renewable plants under Round 7 of Saudi Arabia’s National Renewable Energy Programme (NREP), with a combined capacity of 5,300MW, are also likely to move into next year, with the latest bid deadlines now extending into September.

  Although a substantial pipeline remains in procurement, it is only once these projects move from tender to award and into construction that this pipeline translates into market activity.

  It is important that these tenders continue to progress at the pace established by the early rounds of Saudi Arabia’s renewable energy programme and now also SPPC’s independent storage provider bess scheme.

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  Mark Dowdall
• 
  Maaden closes $1bn term loan and credit facility

  24 August 2026

  Saudi Arabian Mining Company (Maaden) has announced the closing of its inaugural international syndicated term loan and revolving credit facilities, worth a total of $1bn.

  The $500m international term loan facility will support Maaden’s growth agenda and general corporate purposes, including funding growth projects across its portfolio.

  The $500m international revolving credit facility, which is expected to remain undrawn, provides additional committed funding capacity “as Maaden continues to scale its business and execute its long-term growth strategy”.

  The transaction “was met with strong support from the international banking market, attracting participation from a diverse group of leading international banks across key global financial markets”, including the US, Canada, Europe, China and Japan. The facilities were oversubscribed, Maaden said.

  ALSO READ: Maaden and Aramco sign deal to create joint venture

  “The level of demand reflects the global banking community’s confidence in Maaden’s financial strength, strategic direction and ambitious growth plans,” the Saudi state miner said in its statement.

  “The facilities mark another significant milestone in Maaden’s funding journey – further diversifying its sources of funding and broadening its access to global capital providers as the company continues to advance its long-term growth ambitions.

  “Maaden continues to make significant progress across its growth pipeline, expanding production, advancing major projects and accelerating exploration as it builds a world-class mining company at the heart of Saudi Arabia’s economic transformation.”

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  Indrajit Sen
• 
  Libya oil project on track for 2027 completion

  24 August 2026

  

   

  The project to develop a workers’ camp at Libya’s Erawin oil field is on track for completion next year, according to industry sources.

  The project, estimated to be worth about $50m, is being executed by the Libyan oil services company Al-Saraya Al-Hamara, headquartered in the city of Sebha.

  The Libyan company was awarded the contract in February 2025.

  The scope of the project includes:

  • Construction of an accommodation camp
  • Construction of the camp maintenance warehouse
  • Construction of the camp office
  • Construction of a fire brigade shelter
  • Construction of a kitchen and mess hall
  • Construction of a mosque
  • Construction of a laundry room
  • Construction of a clinic
  • Construction of parking facilities
  • Installation of a fire and gas system
  • Installation of a power generator
  • Construction of associated facilities

  The client on the project is Zallaf Libya Oil & Gas Exploration & Production Company.

  Zallaf Libya Oil & Gas Exploration & Production Company was established in Libya in 2013 and is wholly owned by Libya’s state-owned National Oil Corporation.

  The Erawin field development project is located about 800 kilometres south of Tripoli and 100km southwest of the El-Sharara field.

  Libya shipped its first cargo of crude from the Erawin oil field in November 2023.

  The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.

  Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the early production facility project in 2019.

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  Wil Crisp
• 
  Tunisia extends bid deadline for gas pipeline project

  24 August 2026

  State-owned Tunisian Company of Electricity & Gas (Steg) has extended the bid deadline for a project to develop gas pipelines in the North African country.

  Earlier this year, the project was tendered with a bid deadline of 15 July. The new deadline is 30 September 2026.

  The scope of the project includes conducting studies, procuring equipment and materials, and performing construction work.

  Steg has received financing from the Islamic Development Bank to fund the project.

  The tender has been split into two packages.

  The first pipeline runs from the Tunisian town of Mourouj, in the suburbs of Tunis, to the town of Zriba.

  Along this route, the pipeline will be split into two sections.

  The first extends from Mourouj to the town of Fouchana, which lies to the south of the capital.

  Under existing plans, the pipeline will have a diameter of 20 inches and extend for 3.8 kilometres.

  The second section will extend for 43km to Zriba and have a diameter of 24 inches.

  The contract for package one has a 450-day completion period.

  The project’s second package focuses on a gas pipeline extending from Zriba to the town of M’saken.

  This pipeline will extend for 78km and have a diameter of 24 inches.

  The contract for this package also specifies a 450-day completion period.

  The procedure for the tender of both packages is an international call for tenders under the Islamic Development Bank guidelines for design, supply and installation.

  The Middle East and North Africa (Mena) region is currently seeing a surge in oil and gas pipeline projects as countries attempt to diversify routes through which hydrocarbons can be transported.

  The increased concerns about overreliance on a small number of transportation routes are a result of the regional conflict that started when the US and Israel attacked Iran on 28 February.

  The conflict severely disrupted oil and gas flows through the Strait of Hormuz, highlighting the importance of having a diverse range of import and export routes.

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  Wil Crisp
• 
  Saudi Arabia signs $1.16bn bess agreements

  21 August 2026

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  Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has signed four storage service agreements for battery energy storage system (bess) projects with a combined capacity of 2,000MW.

  The projects will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve total investment of more than SR4.35bn ($1.16bn).

  The agreements cover the first group of independent storage provider (ISP) bess projects being procured by SPPC under a build, own and operate model. The projects are supervised by the Energy Ministry.

  Three projects have been awarded to a consortium comprising Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company.

  These comprise the Al-Muwyah and Haden bess ISPs in the Mecca region, and the Al-Kahafa bess ISP in the Hail region. Each has a capacity of 500MW for four hours.

  The fourth project, the Al-Khushaybi bess ISP in the Qassim region, has been awarded to a consortium of France's Engie and local firm Haji Abdullah Alireza & Co. This also has a capacity of 500MW for four hours. 

  In July, MEED exclusively reported that Acwa and Engie were frontrunners for the Group 1 bess contracts. SPPC launched the qualification process for the scheme in November 2024, with bids submitted last year.

  The projects form part of Saudi Arabia’s efforts to achieve an electricity generation mix comprising approximately 50% renewable energy by 2030.

  Bess 2

  As exclusively reported by MEED, SPPC issued the request for proposals for the second phase of its independent bess projects in July.

  The Group 2 programme comprises six ISP projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration.

  The six bess projects are:

  • Samha bess ISP: 500MW (Qassim)
  • Al-Leeth bess ISP: 500MW (Mecca)
  • Al-Henakiyah bess ISP: 500MW (Medina)
  • Khulis bess ISP: 500MW (Mecca)
  • Sadawi bess ISP: 500MW (Eastern Province)
  • Ashyrah bess ISP: 500MW (Mecca)

  According to a source, developers have since submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.

  On 1 July, MEED reported that up to 27 firms had prequalified to participate in the second phase. SPPC previously received statements of qualification on 13 May.

  It is understood that Abu Dhabi National Energy Company (Masdar, UAE), Acwa (Saudi Arabia), EDF (France), Korea Electric Power Corporation (Kepco, South Korea), International Power (Engie, France) and Marubeni Corporation (Japan) are among the companies likely to make offers for the contracts.

  Winning bidders will hold 100% equity in a special purpose vehicle (SPV), with each SPV entering into a storage services agreement with SPPC as part of the ISP structure. 

  US/India-based Synergy Consulting is advising SPPC on the energy storage Group 1 and Group 2 programmes.

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

  Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

  Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

  > AGENDA: Expo 2030 Riyadh construction gathers pace > WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034 > MARKET FOCUS: Maghreb fortunes diverge > INDUSTRY REPORT: GCC banks prove resilient amid turmoil > LEADERSHIP: Private capital and the GCC infrastructure inflection > PORTS: Geopolitical risk shapes $513bn of global ports projects > INTERVIEW: Developers look beyond standalone solar

  To see previous issues of MEED Business Review, please click here

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  Mark Dowdall