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  Contract award nears for Saudi Landbridge Riyadh section

  31 August 2026

  

   

  Saudi Arabia Railways (SAR) is preparing to award the main construction contract for the design-and-build of the Riyadh Rail Link, a new north-to-south railway line across the capital.

  MEED understands that the commercial proposals were opened two weeks ago, with a decision expected imminently.

  SAR began the post-tender clarifications with bidders in July, as MEED reported.

  The bidders include:

  • China Civil Engineering Construction Corporation / Al-Ayuni Investment & Contracting (China/local)
  • Nesma & Partners / China Harbour Engineering Company (local/China)
  • Al-Rashid Trading & Contracting / IC Ictas Construction / Saipem (local/Turkiye/Spain)
  • Saudi Binladin Group (local)

  In June, MEED exclusively reported that contractors submitted their commercial proposals on the 30th of that month.

  The scope includes a 35-kilometre double-track line connecting SAR’s North-South Railway to the Eastern Railway network.

  Issued on 29 January, the tender also covers the procurement, construction and installation of associated infrastructure, including viaducts, civil works, utility diversions/installations, signalling systems and other related works.

  Once delivered, the Riyadh Rail Link is expected to become a key component of the Saudi Landbridge railway.

  In January, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium to construct it, as MEED reported.

  In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements, and that the project would instead be delivered in several phases under a different procurement model.

  Negotiations have been under way between Saudi Arabia and China-backed investors interested in developing the scheme through a public-private partnership (PPP). Al-Malik put the project cost at about SR100bn ($26.6bn).

  Overall, it comprises more than 1,500km of new track. A core element is a 900km railway between Riyadh and Jeddah, providing the capital with direct freight access to King Abdullah Port on the Red Sea.

  Other key elements include upgrading the existing Riyadh-Dammam line, a bypass around the capital known as the Riyadh Link, and a connection between King Abdullah Port and Yanbu.

  The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. First announced in 2004, it was put on hold in 2010 before being revived a year later. Rights-of-way issues, route alignment and the high cost have been among the main stumbling blocks.

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  Yasir Iqbal
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  Prequalification begins for Dammam suburb boulevard PPP

  31 August 2026

  Saudi Arabia’s Ministry of Municipalities & Housing, in collaboration with Ashraq Development Company and the National Centre for Privatisation & PPP, has issued a request for qualification (RFQ) notice for the development of the King Fahd suburb boulevard project in Dammam.

  The notice was issued on 27 August, with a submission deadline of 22 October.

  The public-private partnership (PPP) project will be delivered using a design, build, finance, operate, maintain and transfer model, with a 43-year contract term.

  The project is located in Al-Bayda Governorate and features a 4 kilometre (km) mixed-use zone along a central boulevard, forming part of a larger 7.3km corridor.

  The project will be developed in two phases and span about 1 million square metres.

  According to a statement: “The private sector partner will be responsible for developing and operating the boulevard, which includes leisure and recreational facilities, public parks, entertainment venues, retail outlets, office spaces, hospitality zones, pedestrian walkways and road networks.”

  The project is the latest addition to the growing number of PPP projects in the kingdom. 

  In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

  Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

  In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

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  Yasir Iqbal
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  Eni plans to drill 230 oil and gas wells in Egypt

  31 August 2026

  Italy’s Eni is planning to drill 230 new oil and gas wells in Egypt, according to a statement from the country’s Ministry of Petroleum & Mineral Resources.

  Eni’s chief executive, Claudio Descalzi, discussed his plans for exploration and development in Egypt on 25 August during a meeting with Egypt’s Prime Minister Mostafa Madbouly and the Minister of Petroleum and Mineral Resources Karim Badawi.

  During the meeting, Descalzi said that the company has plans to drill 30 exploration wells in addition to 200 development wells.

  Descalzi said his company plans to intensify its exploration and development programmes, especially in the Mediterranean and Western Sahara regions, to increase production of natural gas and crude oil.

  He said that his company plans to use the latest seismic imaging and artificial intelligence technologies as a key part of its exploration and development plans.

  In a separate statement, Eni also said that it is working with UK-headquartered BP and state-owned Egyptian General Petroleum Corporation (EGPC) to reach a final investment decision (FID) for a project to develop the major gas discovery of Denise West in Egypt’s Temsah concession.

  Eni made the discovery in February and says it holds about 2 trillion cubic feet of gas and 130,000 barrels of condensate.

  It is targeting first gas in less than two years and expects to reach FID “in the next few months”, according to its statement.

  Eni’s total investments in Egypt have reached a value of $8.5bn, according to the statement from Egypt’s Ministry of Petroleum & Mineral Resources.

  During the meeting on 25 August, Descalzi also stressed the importance of linking Cyprus’ Cronos gas field to Egyptian export infrastructure.

  In July, Eni reached the FID to develop the Cronos project in deep waters offshore Cyprus, targeting the first Cypriot gas to market in 2028.

  Production is expected to reach a plateau of 500 million standard cubic feet a day.

  In October last year, Egypt and Cyprus signed provisional agreements to connect Cyprus’ Cronos gas field to Egypt’s gas infrastructure.

  The agreements were signed by parties including Egypt’s Ministry of Petroleum and Mineral Resources, Eni, and the French oil and gas company TotalEnergies.

  Connecting the Cronos field to Egypt is expected to involve the tendering of a major subsea pipeline project.

  This will allow gas to be transported and processed in existing Zohr facilities in Egypt, then transferred and liquefied at the Damietta LNG plant for export as LNG to international markets, primarily Europe.

  At the meeting on 25 August, Descalzi said the planned project to connect the Cronos field to Egypt will be considered a model for regional cooperation in the gas sector and will enhance Egypt’s status as a regional gas hub.

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  Wil Crisp
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  Shell approves Egypt offshore gas project

  31 August 2026

  BG Delta, a Shell subsidiary, has reached the final investment decision for phase 12a of the West Delta Deep Marine (WDDM) development project.

  The project will be implemented in partnership with Malaysia’s Petronas and state-owned Egyptian General Petroleum Corporation (EGPC).

  Shell, Petronas and EGPC formed a joint venture called Burullus Gas Company to operate the WDDM concession.

  Phase 12a includes drilling and completing three deepwater gas wells, with production expected to begin in 2028, according to a statement from the London-headquartered company.

  The wells will be tied into existing subsea infrastructure, helping accelerate development, improve capital efficiency and limit the need for additional facilities.

  Dalia El-Gabry, the vice-president and chairperson of Shell Egypt, said: “This investment demonstrates our commitment to maximising the remaining potential in WDDM where the right technical and commercial conditions exist.

  “By leveraging existing infrastructure and our proven development experience, we can accelerate delivery while reinforcing our partnership with the Egyptian government and joint venture partners to help meet Egypt’s energy needs.”

  The new development builds on phases 10 and 11, which brought six wells online during 2024 and 2025.

  Its scope also covers facility installation, tie-in operations, commissioning and connection to existing offshore infrastructure.

  Egypt’s Ministry of Petroleum & Mineral Resources said in May that about $350m had been allocated to phase 12a.

  In April, Egypt’s Petroleum Marine Services (PMS) was awarded a contract for offshore works for phase 12 of the WDDM field development project.

  The contract awarded to PMS uses the engineering, procurement, installation and construction contract model.

  Under the scope of the contract, PMS will install the required electrical, hydraulic and mechanical connections in deep waters to tie three new gas wells into production as part of phase 12.

  The scope also includes the installation of three final triple tie-in spool bases to complete the connection between the wells.

  During phases 10 and 11 of the WDDM project, PMS laid two offshore electrical cables at water depths reaching 660 metres, in addition to carrying out well tie-in and production connection works at depths of up to 880 metres.

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  Wil Crisp
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  Contractors appointed for Group 1 battery storage projects

  27 August 2026

  

   

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  Two contractors have been appointed for engineering, procurement and construction (EPC) works on Saudi Arabia’s four Group 1 battery energy storage system (bess) projects with a combined capacity of 2,000MW, a source has confirmed to MEED.

  Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), recently signed four storage service agreements for the bess projects, which will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve a total investment of more than SR4.35bn ($1.16bn).

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

  According to the source, India’s Larsen & Toubro will carry out EPC works for these three projects, comprising the Al-Muwyah and Haden bess independent storage providers (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 three projects have a combined capacity of 1,500MW and 6,000MWh.

  L&T recently announced that it had secured “a major order” for bess projects in the Middle East but did not disclose the specific projects involved.

  The fourth project, the Al-Khushaybi bess ISP in the Qassim region, was 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. 

  China’s Sepco 3 has been appointed as the EPC contractor for this project, a source said.

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

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

  As previously reported, 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.

  Developers recently submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.

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  Mark Dowdall