Najim cogeneration project reaches financial close

22 August 2024

Najim Cogeneration Company, the special purpose vehicle for a new industrial steam and electricity cogeneration plant in Jubail in the Eastern Province of Saudi Arabia, has reached financial close on the 25-year build, own and operate (BOO) project.

Najim Cogeneration Company is a special purpose entity owned by Abu Dhabi National Energy Company (Taqa) and Japanese power generation company Jera, which won the contract to develop and operate the plant in March.

The project was previously referred to as the Amiral cogeneration independent steam and power plant.

The team announced reaching a financial close on the project on 22 August.

Saudi Aramco Total Refining & Petrochemical Company (Satorp) entered into a power and steam purchase agreement with the developer team in March this year.

The 25-year BOO contract is extendable by five years on mutual agreement.

Regional project tracker MEED Projects estimates that the scheme will require an investment of at least $400m.

The new cogeneration plant will supply up to 475MW of power and approximately 452 tonnes an hour of steam from advanced combined cycle gas-fired technology.

Taqa and Jera will also undertake the operation and maintenance (O&M) of the plant through an O&M special purpose entity.

MEED reported in March that South Korean contracting company Samsung C&T will undertake the engineering, procurement and construction contract for the project.

The plant is expected to be operational by 2027. It will cater to the Amiral petrochemicals complex in Jubail.

According to the project sponsors, the Amiral cogeneration plant will include state-of-the-art power and steam generation systems, gas and water receiving systems and gas-insulated switchgear interconnections while at the same time "meeting stringent efficiency standards imposed by the Saudi Energy Efficiency Centre".

MEED understands that the project has a provision for the future installation of a carbon dioxide capture plant and is capable of hydrogen co-firing.

Steam cracker complex

Integrated with the existing Satorp refinery in Jubail, the new complex aims to house one of the largest mixed-load steam crackers in the Gulf, capable of producing up to 1,650 kilotonnes a year of ethylene and other industrial gases.

This expansion is expected to attract more than $4bn in additional investment in various industrial sectors, including carbon fibres, lubricants, drilling fluids, detergents, food additives, automotive parts and tires. It is also expected to create about 7,000 local direct and indirect jobs.

Satorp reached the final investment decision on Amiral in December 2022.

Saudi Aramco owns a 62.5% stake in Satorp, while France's TotalEnergies has 37.5%.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12383987/main0833.jpg
Jennifer Aguinaldo
Related Articles
  • Kuwait tenders oil manifold project

    24 June 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to construct remote header manifolds and associated works in the southern and eastern regions of Kuwait.

    A meeting with prospective contractors has been scheduled for 21 July 2026, and bids are due to be submitted ahead of a deadline on 20 September 2026.

    Manifolds are devices used in the oil sector to divide the flow of liquids from a single source to several outlets, or to collect liquids, or vice versa.

    Previously, a project with a similar scope in the same region was awarded to the Kuwaiti contractor Al-Ghanim International General Trading & Contracting.

    In 2016, it signed a contract worth $435m to construct remote header manifolds and associated works in the south and east Kuwait areas.

    The scope of that contract included design, procurement, construction and commissioning of 25 remote manifold stations and associated pipelines in south and east Kuwait using multi-phase pumps to deliver liquids to gathering centres.

    Kuwait’s oil fields are connected to more than 25 gathering centres, which serve as collection points for crude oil produced by several wells connected by flowlines, providing initial treatment by separating associated gas and removing salt.


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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17409564/main.jpg
    Wil Crisp
  • Contractors win deals for Saudi Energy transmission projects

    23 June 2026

     

    Saudi Arabia-based Haif Company has won contracts for two separate substation projects in Saudi Arabia, according to sources.

    The first involves the construction of a 132/33/13.8kV substation for Saudi Energy, formerly Saudi Electricity Company, which will replace the existing Tabuk substation 2 in Tabuk, northwestern Saudi Arabia.

    The works include the construction of a new substation, along with GIS, transformers, switchgear, capacitor banks, MV/LV cable systems and protection infrastructure.

    Ten firms submitted bids for the project last December. The bidders included:

    • Al-Babtain Contracting (Saudi Arabia)
    • Alfanar Projects (Saudi Arabia)
    • Al-Gihaz Holding (Saudi Arabia) 
    • Al-Osais International Holding (Saudi Arabia)
    • Danway Electrical & Mechanical Engineering (UAE)
    • Haif Company (Saudi Arabia)
    • Mohammed Al-Ojaimi Group (Saudi Arabia)
    • Nesma Infrastructure & Technology (Saudi Arabia)
    • Saudi Services for Electro Mechanic Works (Saudi Arabia)
    • Tareg Al-Jaafari Contracting Est (Saudi Arabia)

    In addition to Tabuk, Saudi Energy is planning several power transmission projects in Al-Jouf, Medina and the Eastern Province as part of the kingdom’s push to upgrade its electricity transmission and distribution infrastructure

    The second Haif contract involves a 132/33kV substation project at Hail to support the integration of solar generation from the Al-Kahfah photovoltaic facility into the network. Together, the projects are valued at about $90m.

    Elsewhere, the local Trading & Development Partnership has been appointed to build a 132/33kV substation at Al-Jouf, in Al-Jouf Province.

    The facility will deliver a transmission capacity of about 168 MVA to the Al-Busitaa agricultural site, supporting the Liquid Fuel Displacement Programme, which aims to reduce reliance on diesel generators and fuel oil for power generation.

    Nine bids were submitted for the project last year.

    According to MEED Projects, Saudi Energy has almost $2.3bn-worth of projects currently under bid evaluation, including the 500kV overhead transmission line, approximately 466km long, for the Eastern Operating Area and the Central Operating Area in the Eastern Province. The main contract is expected to be awarded later in 2026.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17397346/main.jpg
    Mark Dowdall
  • Consortium wins $1bn Saudi healthcare PPP project

    23 June 2026

    Saudi Arabia’s Ministry of Health and the National Centre for Privatisation & PPP (NCP) have awarded a public-private partnership (PPP) contract for the operation and management of the Sabic Specialised Behavioural Healthcare Hospital in Riyadh.

    The contract was awarded to SEH Healthcare, a consortium comprising local firms Specialised Medical Company (SMC Healthcare) and Health Gates Complex, and Germany’s Dr Ebel Fachkliniken.

    In a stock exchange filing on the Tadawul, SMC Healthcare said the total estimated project value is about SR3.8bn ($1bn).

    “The scope of the contract includes medical and non-medical operations and maintenance, facility management, equipment management, and specialised clinical and non-clinical services in mental health and addiction treatment,” the statement added.

    The contract term is 15 years.

    The facility spans about 62,500 square metres and includes 150 beds, 19 outpatient clinics and six dedicated day-care rooms, as well as specialised services in mental health, addiction treatment, rehabilitation and aftercare.

    The project is the latest healthcare project to be procured on a PPP basis in the kingdom. In May, Saudi Arabia’s Ministry of Health, the Ministry of Defence and the NCP issued an expression of interest and request for qualification notice for the Chronic Kidney Disease Care and National Dialysis Services project.

    The NCP said the initiative supports Saudi Vision 2030 by increasing private sector participation in the healthcare sector.

    In January, Saudi Arabia launched a National Privatisation Strategy, which aims to mobilise $64bn in private sector capital by 2030.

    The strategy builds on the privatisation programme first introduced in 2018. It will focus on unlocking state-owned assets for private investment and privatising selected government services.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17396605/main.jpg
    Yasir Iqbal
  • Morocco approves Khalladi wind farm expansion

    23 June 2026

    Acwa Maroc, a subsidiary of Saudi developer Acwa, has secured approval to expand the Khalladi wind independent power project (IPP) in northern Morocco by 40MW.

    The extension will increase the project’s total installed capacity from 120MW to 160MW. The Khalladi wind farm is located at Djebel Sendouq, about 50 kilometres from Tangier. The existing facility comprises 40 wind turbines rated at 3MW each.

    The project operates under Morocco’s Law 13.09 renewable energy framework, which allows private renewable energy firms to develop generation assets and supply electricity directly to industrial consumers.

    According to Acwa’s website, the facility entered commercial operation in 2018 and supplies electricity to Morocco’s state-owned utility Onee and large industrial customers under a 20-year power-purchase agreement.

    Acwa holds a 51% stake in the project alongside Participation Khalladi SA (24%) and ARIF North Africa Investment SARL, an infrastructure investment fund managed by France’s Amundi (25%).

    The engineering, procurement and construction contract was executed by Denmark’s Vestas, France’s Cegelec and Morocco’s Stam and AGTT.

    Morocco is targeting renewables to account for 52% of its installed power generation capacity by 2030.

    The operational wind farm generates about 397GWh of electricity a year. It is understood that the expansion project has already entered the development phase.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17394999/main5046.jpg
    Mark Dowdall
  • Libya plans to distribute oil budget in July

    23 June 2026

     

    Libya’s National Oil Corporation (NOC) has communicated to contractors in the country that it is expecting funds from the country’s budget to be distributed to state-owned oil companies in July, according to industry sources.

    Earlier this year, the country’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.

    The total budget was valued at LD190bn ($29.95bn), and LD12bn ($1.9bn) was allocated to the country’s NOC.

    An additional LD40bn ($6.3bn) was allocated for “development projects”.

    At the time, Libya stated that a joint committee had been formed to help prioritise development projects, and the projects had been listed in the budget.

    Over the past decade, the country has had two rival governments; the last time the country operated under a single national budget was in 2013.

    The country’s two legislatures are the eastern-based House of Representatives and the Tripoli-based High Council of State.

    As a result of the US and Israel’s war with Israel, there has been significant disruption to shipping through the Strait of Hormuz, which normally transports around 20% of the world’s oil and gas exports.

    This has driven global energy prices higher, with Brent hitting more than $114 a barrel in May this year.

    The price of Brent remains 10% higher than prior to the US and Israel attacking Iran on 28 February.

    Libya is well-positioned to capitalise on the ongoing uncertainty around exports via the Strait of Hormuz, as energy-importing nations seek reliable oil and gas supplies.

    The North African country is located near Europe, with several large oil and gas export ports and a pipeline that transports gas to Italy.

    Libya has the largest oil reserves in Africa, but has struggled to implement projects to develop them over recent years due to political infighting and security problems.


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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

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

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17389246/main2010.jpg
    Wil Crisp