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• 
  Iraq LNG project delayed until next year

  13 May 2026

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  Iraq’s first liquefied natural gas (LNG) import terminal, which has an estimated project value of $450m, is now expected to become operational in 2027 due to delays caused by the regional war and disruption to shipping through the Strait of Hormuz.

  Work on jetty reinforcement and fixed terminal infrastructure at the Port of Khor Al-Zubair has been delayed, according to a statement from US-based Excelerate Energy, which is contracted to develop the facility.

  In its statement, the company said: “We are revising our full-year guidance to reflect the delayed startup of our Iraq terminal due to the ongoing conflict in the Middle East.”

  It added: “The Iraq project fundamentals remain unchanged. Looking ahead, we continue to have confidence in our sequenced earnings growth through 2028.”

  In October 2025, Excelerate signed a definitive commercial agreement with a subsidiary of Iraq’s Ministry of Electricity for the development of the country’s first LNG import terminal.

  The integrated project includes a five-year agreement for regasification services and LNG supply, with extension options, and a minimum contracted offtake of 250 million standard cubic feet a day (cf/d).

  Excelerate said: “Jetty reinforcement and construction of the fixed terminal infrastructure have been delayed temporarily due to the conflict in the Middle East and the terminal is no longer expected to commence operations in the third quarter of 2026 as previously disclosed.

  “Project startup is now expected in 2027. The long-term fundamentals supporting the project remain unchanged, driven by chronic power shortages and limited domestic gas processing capacity in Iraq.

  “Current conditions further reinforce the country’s need for reliable and scalable LNG import infrastructure and construction will resume as conditions allow.”

  Earlier this year, Iraq’s Ministry of Electricity said that the terminal was on track to come online on 1 June, ahead of expected gas shortages during the summer months.

  Then, in late April, the ministry said the project had been delayed by several months and was expected to come online in August at the earliest.

  Although Iraq is Opec’s second-largest oil producer after Saudi Arabia, it is a net natural gas importer because its lack of infrastructure investment has meant that, until 2023, it flared roughly half of the estimated 3.12 billion cf/d of gas produced in association with crude oil.

  Iraq’s reliance on flaring associated gas instead of gathering and processing it has prevented the country from fully realising its potential as a gas producer and forced the Iraqi government to rely on costly gas and electricity imports from Iran.

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

  Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

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

  > AGENDA: War in the Middle East recalibrates global energy markets > REGIONAL LNG: War undermines business case for Middle East LNG > CAPITAL MARKETS: Damage avoidance frames debt issuance > IPOs: Regional IPO market dries up amid war  > MARKET FOCUS: Conflict tests UAE diversification > INTERVIEW: Desalination holds steady amid tensions, says Veolia CEO > LEGAL: Force majeure will not cure pre-existing construction industry breaches > BANKS:  GCC banks to feel the strain despite strong buffers > PIF STRATEGY: Public Investment Fund approves 2026-30 strategy

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

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  Wil Crisp
• 
  Algeria turns the GCC oil crisis into an economic opportunity

  13 May 2026

  Commentary
  Wil Crisp
  Oil & gas reporter

  Algeria’s state-owned oil and gas company, Sonatrach, is taking advantage of concerns about global gas and crude supplies to sign deals and push ahead with major upstream projects.

  In recent weeks, the country has launched an oil and gas licensing round, taken steps to boost crude production in the short term and awarded a $1.1bn oil and gas field development project.

  This comes as shipping remains disrupted through the Strait of Hormuz, a key global oil and gas supply route. The disruption began after the US and Israel attacked Iran on 28 February 2026, triggering a regional war.

  Algeria’s ramp-up in activity puts it in a stronger position to benefit from higher global energy prices than neighbouring Libya, despite Libya holding Africa’s largest proven oil reserves.

  Libya challenges

  In Libya, officials have sought to advance oil and gas projects, but the business environment remains challenging due to recurring violence and deep political divisions.

  Last month, Libya’s rival legislative bodies approved a unified state budget for the first time in more than 13 years. The Central Bank of Libya confirmed on 11 April that both chambers had endorsed the budget, calling it a key step towards restoring financial stability after prolonged division.

  Contractors expected the agreement to accelerate project activity, but so far the deal has yet to translate into meaningful progress on the ground. Earlier this month, MEED reported that Libya’s state-owned National Oil Corporation (NOC) had not yet provided subsidiaries with details of their funding allocations under the new budget.

  Libya’s downstream sector was also disrupted this month by a fresh outbreak of violence. On 8 May, military clashes damaged buildings and vehicles, and forced the country’s largest operating refinery and a nearby oil port to shut for two days. On 10 May, Azzawiya Oil Refining Company, operator of the Zawiya facility, said it had lifted the state of emergency, allowing work to resume.

  Algeria momentum

  While Libya has struggled to capitalise on the current period of higher oil and gas prices, Algeria has significantly increased activity across its hydrocarbons sector.

  Last month, Algeria launched a new bid round offering seven exploration blocks to international companies. The round was launched by the National Agency for the Valorisation of Hydrocarbon Resources (Alnaft), which regulates the upstream sector. The blocks are located in Ouargla, Illizi, Touggourt and El-Bayadh.

  In parallel, Algeria is implementing short-term measures to raise output. On 3 May, the Ministry of Oil & Gas said the country plans to increase average production by 6,000 barrels a day in June.

  Algeria is also pursuing regional export opportunities. Earlier this month, officials signed a framework agreement to enable crude supplies from Algeria to Egypt.

  Turkiye has also announced plans to renew and expand its liquefied natural gas (LNG) agreement with Algeria. Turkiye’s Energy and Natural Resources Minister Alparslan Bayraktar said on 8 May that annual volumes could rise to 6.5 billion cubic metres, up from the current 4.4 billion cubic metres a year. The existing agreement is due to expire in September 2027.

  Another sign of momentum is the award of a $1.1bn contract for phase two of the Hassi Bir Rekaiz oil and gas field development. The contract was signed by Egypt’s Petrojet and Italian engineering and contracting company Arkad. Petrojet’s share is estimated at about $600m and Arkad’s at about $500m. The client is Groupement HBR, a joint venture of Sonatrach and Thailand’s PTTEP.

  Overall, while Libya continues to face obstacles to building sustained momentum in its oil and gas sector, Algeria is pursuing multiple initiatives that are likely to deliver economic benefits in the short, medium and long term.

  ---

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

  Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

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

  > AGENDA: War in the Middle East recalibrates global energy markets > REGIONAL LNG: War undermines business case for Middle East LNG > CAPITAL MARKETS: Damage avoidance frames debt issuance > IPOs: Regional IPO market dries up amid war  > MARKET FOCUS: Conflict tests UAE diversification > INTERVIEW: Desalination holds steady amid tensions, says Veolia CEO > LEGAL: Force majeure will not cure pre-existing construction industry breaches > BANKS:  GCC banks to feel the strain despite strong buffers > PIF STRATEGY: Public Investment Fund approves 2026-30 strategy

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

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16803345/main4150.jpg

  Wil Crisp
• 
  Chinese-Saudi joint venture to build $566m copper plant

  12 May 2026

  Register for MEED’s 14-day trial access 

  Saudi Arabia-based industrial investment company Rawas and China’s Zhejiang Hailiang Company have signed a joint-venture agreement to establish a copper products manufacturing plant in the kingdom.

  The joint venture, in which Zhejiang Hailiang will hold 51% and Rawas 49%, plans to invest about $566m in the facility, which will be built near Dammam port in Saudi Arabia’s Eastern Province.

  The factory will be developed in two phases, with total production capacity projected at 150,000 tonnes a year (t/y). This includes 30,000 t/y of copper tubes, 20,000 t/y of copper busbars, 50,000 t/y of refined recycled copper and 50,000 t/y of copper foil.

  “The project will fully leverage Saudi Arabia’s local copper ore resources, energy cost advantages and regional policy incentives to serve markets across the Middle East, Europe and Africa,” the partners said in their statement.

  Shenzhen Stock Exchange-listed Zhejiang Hailiang is a subsidiary of Hailiang Group, one of the world’s largest copper pipe manufacturers and exporters.

  Rawas is based in Riyadh. Obeikan Investment Group and Al-Khorayef Group are among its founding shareholders, while other investors include Al-Muhaidib Group and Mohammed Abunayyan Investment Group.

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  Indrajit Sen
• 
  Dubai Holding increases its shareholding in Emaar

  12 May 2026

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  Dubai Holding and the Investment Corporation of Dubai (ICD) have completed a transaction under which Dubai Holding acquired a 22.27% equity stake in the private real estate developer Emaar Properties from ICD.

  Following the transaction, Dubai Holding’s total shareholding in Emaar Properties has risen to 29.73%, making it the company’s largest shareholder.

  Listed on the Dubai Financial Market, Emaar Properties is among the region’s leading real estate developers, with a portfolio spanning residential, commercial, hospitality and retail assets. The firm has a presence across the Middle East, North Africa, Asia and Europe.

  In a statement, Dubai Holding said that the acquisition is a strategic investment that underscores Dubai Holding’s confidence in Emaar Properties’ market position, asset quality and long-term growth outlook, as well as the resilience of Dubai’s economy and real estate sector.

  Dubai Holding’s latest investment follows the incorporation of local real estate bodies Nakheel and Meydan into the Dubai Holding Group in 2024.

  Since its establishment in 2004, Dubai Holding Group has created a portfolio of companies, including Jumeirah Group, Dubai Properties and Tecom Group. Tecom Group owns and operates several clusters in Dubai, including Dubai Internet City and Dubai Media City.

  Nakheel and Meydan are among Dubai’s major real estate developers, with developments including Palm Jumeirah, Palm Jebel Ali, Meydan One, Tilal Al-Furjan, Mohammed Bin Rashid City and Dubai Islands.

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  Yasir Iqbal
• 
  Aramco logs $12.1bn in Q1 2026 spending

  12 May 2026

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  Saudi Aramco registered capital expenditure of $12.094bn in the first quarter of 2026, which it said “supports growth objectives”. The Saudi energy giant had earlier offered a capex guidance of $50bn to $55bn for this year.

  Aramco’s capex in Q1 2026 is down 4% from its spending level in the same period last year. The company spent $13.37bn in the fourth quarter of 2025 and a total of $52.2bn for the full year.

  Offshore oil and gas projects are understood to have accounted for a chunk of Aramco’s capex in the first quarter of the year.

  MEED in January this year reported that Aramco had selected US-based McDermott International for Contract Release and Purchase Order (CRPO) number 166. The scope of work on the tender is understood to have been carved out of the major $15bn Marjan offshore field development project, as part of which Aramco awarded contracts for 20 engineering, procurement, construction and installation (EPCI) packages in 2019. McDermott won the largest share of work on the project, with an estimated $4.5bn-worth of contracts secured for two packages.

  The contract for CRPO 166 was single-sourced to McDermott without a competitive tendering process, and issued as a change order, sources told MEED.

  Aramco then awarded its second offshore contract of this year, CRPO 156, to Italian contractor Saipem. The scope of work on the contract covers the EPCI of a 48-inch trunkline, covering a distance of roughly 65km offshore and 12km onshore, from the Safaniya offshore oil field to the onshore processing facility, plus associated structures such as subsea hook-ups.

  CRPO 156, valued at about $500m, comprises the third package in Aramco’s latest expansion phase at Safaniya – the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day (b/d). Discovered in 1951, the field is located in the Gulf waters, approximately 265 kilometres north of Aramco’s headquarters in Dhahran.

  Saipem also won the other two contracts for the Safaniya field expansion project – CRPOs 154 and 155 – with the Milan-headquartered firm declaring their combined value to be approximately $400m.

  Upstream projects dominate capex

  The upstream oil and gas sector dominated Aramco’s spending last year, accounting for $37.75bn, or about 72%, of the company’s total capex in 2025.

  In its financial statement for full-year 2025, Aramco announced the commissioning of the Marjan crude oil increment programme and the Berri increment programme, “supporting flexibility and ability to respond to changing market conditions”, as it strives to maintain its oil spare production capacity at 12 million b/d over the long term.

  Aramco awarded a total of 34 contracts in 2019, cumulatively worth $18bn, for its multibillion-dollar Marjan and Berri oil and gas field development projects. The objective of the two schemes is to boost the combined production capacity of the Marjan and Berri offshore field developments by 550,000 b/d of Arabian Crude Oil and 2.5 billion cubic feet of gas a day (cf/d).

  In its 2025 financial results, Aramco also said “progress continues towards sales gas production capacity increase of approximately 80% by 2030, from 2021 production levels,” which would help the company reach approximately 6 million barrels of oil equivalent per day of total gas and associated liquids production.

  The world’s largest-listed company announced the start of gas production from the massive Jafurah unconventional resource base, located in Saudi Arabia’s Eastern Province, in December last year.

  The greenfield Jafurah gas processing plant online, with a production capacity of 450 million cf/d, represents the first phase of Aramco’s estimated $100bn capital expenditure programme to produce gas from the Jafurah basin – the largest liquid-rich shale gas play in the Middle East, spanning around 17,000 square kilometres. The reserve is estimated to contain 229 trillion cubic feet of gas and 75 billion stock-tank barrels of condensate.

  Also in December, Aramco said it began operations at its Tanajib gas plant, which is part of the Marjan crude increment programme. The plant has a capacity to process 2.6 billion cf/d of associated raw gas feedstock from the Marjan, Safaniya and Zuluf offshore fields.

  “The Tanajib gas plant is a key component of Aramco’s strategy to increase gas processing capabilities and diversify its energy product portfolio, helping to support long-term economic growth. The plant features digital integration, enhanced operational efficiency, complex project delivery and maximum resource utilisation,” the world’s largest oil exporter said in an earlier statement.

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  Indrajit Sen