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• 
  Rejlers wins engineering contract on Borouge project

  14 May 2025

  

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  Rejlers Abu Dhabi, a subsidiary of Swedish engineering services firm Rejlers, has secured a detailed engineering job on a polyethylene production capacity expansion project of petrochemicals producer Borouge.

  Borouge has undertaken the project to expand its PE4 and PE5 polyethylene production units to increase their nameplate capacity from 540,000 tonnes a year (t/y) to 700,000 t/y each.

  Rejlers Abu Dhabi has secured the detailed engineering job as a sub-contract from Abu Dhabi’s Target Engineering Construction Company, the main contractor executing the engineering, procurement and construction (EPC) works on the project.

  Borouge announced awarding the main EPC contract for the PE4 and PE5 polyethylene production unit expansion project to Target in late April.

  EPC works on the project are expected to be completed in the first quarter of 2027, Borouge said.

  The project will contribute towards Borouge’s goal of increasing its overall production capacity to 6.6 million t/y by 2028.

  Borouge has also announced initiating a project to upgrade its second ethane cracker unit (EU2), adding 230,000 t/y of capacity, which is a 15% increase for the EU2 cracker.

  Adnoc Gas and Adnoc Refining, subsidiaries of Abu Dhabi National Oil Company (Adnoc Group), will supply ethane feedstock for the EU2 upgrade project, with completion scheduled for 2028-end.

  Borouge awarded Germany-headquartered Linde Engineering a contract to perform front-end engineering and design (feed) on the EU2 upgrade project.

  Borouge expects the two output capacity expansion projects to contribute between $165m and $200m in annual earnings before interest, taxes, depreciation and amortisation (Ebitda).

  ALSO READ: Borouge awards hydrogen extraction project contract

  Borouge entered operations in 2001, with a production capacity of 450,000 t/y of polyethylene. The Borouge 2 and Borouge 3 expansion projects took the capacity to 2 million t/y and 4.5 million t/y of polyethylene and polypropylene in 2010 and 2014, respectively. 

  When the under-construction Borouge 4 complex enters operations, Borouge’s overall production capacity will increase significantly from 5 million t/y to 6.4 million t/y, making it the world’s largest single-site polyolefins facility.

  The upcoming Borouge 4 polyolefins complex will feature two polyethylene plants – each with a capacity of 700,000 t/y – using the third generation of Borealis Borstar technology. These plants will be supplied by an ethane cracker with a capacity of more than 1.5 million t/y of ethylene, as well as associated ethylene derivatives.

  Following the signing of a final investment decision agreement worth $6.2bn by Adnoc and Borealis in November 2021, Borouge awarded the main EPC contracts for the Borouge 4 project in December of that year.

  The EPC packages, the winning contractors, their estimated contract values and a brief scope of work are as follows:

  • Early works (package one) – Al-Asab General Transport & Contracting (UAE) – site preparation and early civil works
  • Ethane cracker (package two) – Technip Energies (France)/Target Engineering (UAE) – $1.58bn – building an ethane cracker with a manufacturing capacity of 1.5 million t/y of ethylene
  • Polymers production (package three) – Tecnimont (Italy) – $1.35bn – building two new polyethylene manufacturing plants and a unit to produce 1-hexene, a component in the production of high-performance polyethylene
  • Utilities and offsites (package four) – Tecnimont (Italy) – $1.5bn – constructing non-process buildings, roads, infrastructure, internal and external interfaces, tankage systems, flaring systems and utilities, as well as integration of Borouge 4 with the existing facilities
  • Second cross-linkable-polyethylene (XLPE) plant (package five) – Tecnimont (Italy) – $350m – building an XLPE plant with a capacity of 100,000 t/y.

  Italian contractor Maire Tecnimont executed the front-end engineering and design works for Borouge 4.

  Borouge awarded France-based Axens a contract to provide licensed technologies in January 2020. This covered supplying a methyl tertiary butyl ether unit coupled with a 1-butene production unit and 1-hexene unit for the project.

  The new Borouge 4 facility will cover an area equivalent to almost 500 football pitches, or more than three times the size of Al-Maryah Island in Abu Dhabi. It will produce enough polyolefins annually to make pipes to supply water to 35 million households.

  Borouge Group International

  Borouge is the petrochemicals-producing joint venture of Abu Dhabi National Oil Company (Adnoc) and Austrian energy company Borealis. Adnoc owns the majority 56% stake in Borouge, with Borealis holding a 34% stake. The remaining 10% of shares in Borouge trade on the Abu Dhabi Securities Exchange following an initial public offering in June 2022, from which Adnoc Group earned proceeds of $2bn.

  In March, Adnoc and Austrian energy company OMV entered into a binding framework agreement to combine their shareholdings in Borouge and Borealis and take control of a greater share of the global chemicals market.

  Adnoc has also entered into a share purchase agreement with Canada-based Nova Chemicals Holdings, an indirectly wholly-owned company of Abu Dhabi’s sovereign wealth institution Mubadala Investment Company, for 100% of Nova Chemicals Corporation (Nova).

  Adnoc and OMV have also agreed that upon completion of the planned merger of Borouge and Borealis, the new entity – which will be known as Borouge Group International – will acquire Nova for $13.4bn including debt, further expanding its footprint in North America.

  Borouge Group International is intended to be headquartered and domiciled in Austria, with regional headquarters in the UAE. In addition, Borouge Group International will hold corporate hubs in Canada’s Calgary, Pittsburgh in the US and Singapore.

  The combination of Borouge and Borealis, and the acquisition of Nova, are expected to complete in the first quarter of 2026, subject to regulatory approvals and other customary conditions, Adnoc said.

  The acquisition, together with the contribution of the upcoming Borouge 4 petrochemicals project in Abu Dhabi, will create a major polyolefins producer valued at over $60bn. It will be the world’s fourth-largest by nameplate production, with a potential of 13.6 million metric t/y across 62 plants globally.

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  Indrajit Sen
• 
  Bechtel confirms King Salman International airport deal

  14 May 2025

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  US firm Bechtel Corporation has confirmed that it has been appointed as the delivery partner for the terminals at King Salman International airport (KSIA) in Riyadh.

  Bechtel will manage the delivery of three new terminals, including the terminal for commercial carriers, Terminal 6 for low-cost carriers and a new private aviation terminal with hangars.

  In March, MEED exclusively reported that King Salman International Airport Development Company (KSIADC) had appointed delivery partners for Riyadh’s KSIA project.

  In addition to Bechtel, another US-based firm, Parsons, was chosen as the delivery partner for two packages. One covers the airside infrastructure, including the runways, taxiways, air traffic control towers, fuel farms and fire stations. The other involves the infrastructure connecting the airport to the rest of the city, including utilities and roads.

  Delivery partner roles typically involve assisting the project client with developing a project. This includes project management, design management, cost consulting and procurement advice. Delivery partners have been appointed for some of Saudi Arabia’s largest projects. For example, a team of Canada’s AtkinsRealis, Jacobs and Parsons, both US-based, is working as the delivery partner for The Line at Neom.

  UK-based architect Foster + Partners won the competition to design the masterplan for KSIA in 2023. Jacobs is doing the engineering work for the project.

  In May, MEED exclusively reported that KSIADC had tendered a contract to develop the first phase of Terminal 6 and the Iconic Terminal of the KSIA project in Riyadh.

  The tender notice was issued on 17 April with a submission deadline of 15 May.

  The client plans to deliver the package on an early contractor involvement (ECI) basis.

  The ECI process requires selected contractors to submit methodologies for the project and a design proposal.

  Project scale

  The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.

  If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.

  The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.

  Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation (Gaca), aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.

  It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations. 

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  Yasir Iqbal
• 
  Nemetschek launches in Saudi Arabia

  14 May 2025

  

   

  Germany-headquartered architecture, engineering, construction and operation (AEC/O) software provider Nemetschek Group has signed multiple agreements with local partners, coinciding with the opening of its office in Saudi Arabia.

  The companies that signed memorandums of understanding with Nemetschek include:

  • Nesma Infrastructure & Technology
  • BuildingSmart International
  • Concerted Solutions
  • Wakecap 

  The $14bn ($15.5bn) software firm is looking to invest in the Middle East market, particularly Saudi Arabia, as part of its regional expansion strategy, according to its chief executive, Yves Padrines.

  “Nemetschek will invest in talent, technology, know-how … and in training young people to become more productive, sustainable and capable of addressing the building lifecycle issues,” Padrines told the ongoing Saudi Gigaprojects Forum in Riyadh.

  “We will do everything in our power to help you achieve the 2030 Vision,” he said, referring to the kingdom’s long-term economic programme.

  Product suites

  Nemetschek’s product suites cover the entire build lifecycle, adding an ‘o’ for operation to the conventional AEC software technology suite.  

  “Forty-two per cent of buildings and infrastructure globally are at the end of their lifecycle,” Padrines said, highlighting the need to ensure those assets do not worsen the building environment’s contribution to carbon emissions, which sits at approximately 40% of the global total.

  Nemetschek’s AEC/O software products have around 7.5 million users globally, and the firm is keen to participate in design and execution for the multibillion-dollar-a-year construction market in the Middle East.

  Some 90% of projects globally struggle with budget and time due to silos and a lack of collaboration. “There is a need to streamline the workflow and implement interoperable solutions like Open BIM for projects to align with budget and delivery timeline,” the executive explained.

  Delays in construction projects, coupled with an estimated 20% of materials waste, can be avoided by adopting such solutions, including, where applicable, digital twins for both greenfield and existing assets, concluded Padrines.

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  Jennifer Aguinaldo
• 
  Egypt discusses importation of Qatari natural gas

  14 May 2025

  Egypt is exploring partnerships with Qatar to import natural gas in order to meet domestic demand, according to a statement.

  Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi met with Qatar’s Minister of State for Energy Affairs Saad Bin Sherida Al-Kaabi to explore ways to accelerate the implementation of joint natural gas projects, the statement said.

  The two sides discussed signing long-term contracts to supply natural gas from Qatar to meet local needs.

  They also discussed enhancing cooperation in energy infrastructure to achieve common interests, given both countries’ potential in liquefied natural gas (LNG) trading and liquefaction and regasification activities.

  Separately, the potential to boost cooperation in research and exploration to expand production capacity from QatarEnergy’s concession areas in Egypt was discussed.

  The two ministers discussed the latest developments in QatarEnergy’s drilling plans, particularly in Egypt’s Nefertari, Cairo and Masry regions.

  Al-Kaabi expressed QatarEnergy’s interest in expanding operations and increasing investments in research and exploration in Egypt.

  Recently, QatarEnergy, the Egyptian Natural Gas Holding Company (EGAS) and Chevron agreed to a deal that will see QatarEnergy acquire some of Chevron’s stake in the North El-Dabaa offshore block.

  During the meeting, Badawi and Al-Kaabi discussed potential investment opportunities in Egypt’s oil, gas and petrochemicals sectors.

  In February, MEED revealed that the total value of active Egyptian gas projects had fallen by 79% since the start of 2019.

  The decline comes amid a steep drop in domestic gas output, which has increased the need for costly imports.

  At the start of 2019, the total value of active gas projects in Egypt was $41.5bn. By February this year, it had sunk to $8.6bn, according to data from regional project tracker MEED Projects.

  Despite the billions of dollars of investment in upstream projects in Egypt’s gas sector in recent years, production has been dropping since it peaked in 2021, according to the Energy Institute’s Statistical Review of World Energy.

  In 2021, Egypt produced 67.8 billion cubic metres (bcm) of gas. This fell to 64.5 bcm in 2022 and 57.1 bcm in 2023.

  In May 2024, Egypt’s domestic gas output hit a six-year low, down by about 25% from its 2021 peak.

  Declining domestic production has led to a severe energy shortage in Egypt.

  Last year, the North African country had to resort to load-shedding to keep its grid functioning amid a lack of gas supply and rising demand, while the deepening energy crisis strained Cairo’s budget as it grappled with a heavy subsidies bill.

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  Wil Crisp
• 
  Preparations ongoing for Kuwait remediation project

  14 May 2025

  

   

  State-owned upstream operator Kuwait Oil Company (KOC) is continuing to prepare tender documents for its oil remediation project known as Sustainable Environmental Economic Development Phase 2 (Seed-2).

  The invitation to bid is expected to be issued before the end of this year, according to industry sources.

  Previously, the project was anticipated to be issued in the first quarter of 2025.

  One industry source said: “The tender issuance has been delayed for several reasons. Part of this is due to existing remediation contracts being extended.

  “There are also ongoing debates about the details of the planned tender and which companies will be eligible.”

  One topic of debate within KOC about the contacts has been whether the tender will be limited to Kuwait-based companies or open to both Kuwaiti and international contractors.

  Currently, it is unknown whether international contractors will be permitted to participate, according to industry sources.

  The project is expected to be tendered with five-year service contracts.

  The scheme involves remediating 4 million cubic metres of soil and is estimated to be worth about KD50m ($130m).

  The project will be executed under KOC’s budget, unlike previous similar projects, which were carried out with funds from the UN’s budget for the Kuwait Environmental Remediation Programme (Kerp).

  The three packages will focus on three different areas. These are:

  • North Zone
  • West Zone
  • South East Zone

  The original Seed project was a pilot project launched in 2012 to remediate soil in the Burgan oil field.

  This field is considered to be the world’s second-largest and contains most of Kuwait’s oil reserves.

  The project covered remediating various contaminated features of oil field properties to acceptable levels and restoring the soil’s ecological functions.

  It aimed to remediate approximately 0.9 million cubic metres of soil and 0.16 million cubic metres of sludge and recover 0.8 million barrels of free-phase oil by 2016.

  In total, 25 test sites, with an average area of 45,000 square metres, were set to be remediated.

  Since the launch of the original Seed project, Kuwait has delivered several major remediation schemes, with many achieving results that exceeded expectations.

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  Wil Crisp