meed-logo

line1 line2 line3
SIGN IN / REGISTER

Petro Rabigh and Honeywell sign NEP agreement

31 January 2025

Saudi Arabia's Rabigh Refining & Petrochemical Company (Petro Rabigh) has signed a non-binding agreement with US-headquartered Honeywell to explore the deployment of Honeywell UOP’s naphtha-to-ethane-and-propane (NEP) technology.

The non-binding memorandum of understanding (MoU) represents a significant milestone in leveraging advanced technologies to transform butane and naphtha into high-value feedstocks for light olefin production, such as ethylene and propylene, a joint statement said.

NEP converts light naphtha and butanes into ethane and propane, providing what Honeywell describes as "a flexible, cost-effective, and sustainable solution" for ethylene and propylene production.

The MoU aims to enhance productivity, operational efficiency and sustainability "through the production of value-added petrochemical products from crude oil".

Supported by the Energy Ministry, the initiative also aligns with the goals of Saudi Vision 2030 to drive innovation in the energy sector, promote liquid-to-chemical (LTC) processes, and improve energy efficiency and economic resilience, the statement added.

Petro Rabigh was originally established as a basic topping refinery, with crude oil processing facilities, at Rabigh on the kingdom’s Red Sea coast to the north of Jeddah.

However, in 2005, Aramco and Japan's Sumitomo Chemical Company formed an equal joint venture to transform the business into an integrated refinery and petrochemicals complex.

In August last year, Aramco announced signing an agreement with Sumitomo Chemical to acquire an additional 22.5% stake in Petro Rabigh.

Aramco and Sumitomo Chemical presently own 37.5% shares each in Petro Rabigh, with the remaining 25% shares trading on the Saudi Exchange (Tadawul) since 2008.

Following the completion of the transaction, which is priced at SR7 ($1.86) a share, Aramco will become the majority shareholder in Petro Rabigh, with a 60% stake, and Sumitomo Chemical will retain a 15% stake.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13353977/main.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Solar deals signal Saudi Arabia’s energy ambitions

    13 February 2026

    Commentary
    Mark Dowdall
    Power & water editor

    Saudi Arabia’s recent agreement to build $2bn-worth of solar power plants in Turkiye is the latest sign that the kingdom’s energy influence is changing.

    Historically, this was measured in oil barrels and export volumes. Increasingly, this is extending to capital, structuring expertise and the ability to deliver record-low tariffs in competitive markets.

    Announcing the deal, Turkish Energy Minister Alparslan Bayraktar said tariffs for the plants would be the country’s lowest on record, with electricity purchased under 25-year power purchase agreements.

    It followed another announcement, in January, that Acwa is investing $200m to build a large-scale solar photovoltaic (PV) plant in the Philippines.

    Whether Saudi-backed companies ultimately retain long-term stakes or primarily develop and build the assets, their role at the front end is significant.

    Sponsors that bring sovereign backing, clear procurement processes and access to low-cost financing can influence tariffs and contract terms from the outset.

    There is also a geopolitical layer. Investing in Turkiye, or anywhere for that matter, strengthens political and economic ties at a time when regional alignments are shifting.

    Energy infrastructure is also long-term by its nature. It connects ministries, regulators, lenders and operators in relationships that often extend well beyond a single transaction.

    Saudi Arabia has spent the past few years refining its approach to pricing, structuring and financing large-scale renewables at home.

    Exporting that expertise may not rival oil in scale or visibility, but it does signal that Saudi Arabia is becoming more than just an energy supplier.

    Increasingly, it is becoming a participant in how other countries design and finance their energy transitions. That influence is still significant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15645903/main.jpg
    Mark Dowdall
  • Saudi Arabia appoints new investment minister

    13 February 2026

    Register for MEED’s 14-day trial access 

    King Salman Bin Abdulaziz Al-Saud has made a series of senior government changes, including Khalid Al-Falih leaving his role as investment minister to become minister of state and a member of the cabinet.

    Al-Falih has been replaced by Fahad Al-Saif as investment minister. Al-Saif has been head of the Investment Strategy and Economic Insights Division at the Public Investment Fund (PIF) since 2024. That role involved formulating PIF’s long-term investment strategy. He has also served as head of the Global Capital Finance Division, a role he has held since joining PIF in 2021.

    The change of investment minister comes at a time when securing investments has become a key priority for Saudi Arabia as it prepares to hand over more projects to the private sector for delivery.

    King Salman also named Abdullah Al-Maghlouth as vice-minister of media and Abdulmohsen Al-Mazyad as vice-minister of tourism. Khalid Al-Yousef was named attorney general, and Sheikh Ali Al-Ahaideb will serve as president of the Board of Grievances.

    Faihan Al-Sahli was selected as director general of the General Directorate of Investigation, while Abdulaziz Al-Arifi was chosen to lead the National Development Fund. Haytham Al-Ohali will head the Communications, Space and Technology Commission, and Fawaz Al-Sahli will chair the Transport General Authority.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15645415/main.gif
    Colin Foreman
  • Indian firm wins major Oman substation contract

    12 February 2026

     

    India’s Larsen & Toubro has won a contract to build the Majan 400/220/132kV grid station in Oman.

    Estimated to cost $100m, the project includes an associated 400kV line-in line-out underground cable from Sohar Free Zone to the Sohar Interconnector Station.

    The contract was awarded by Oman Electricity Transmission Company (OETC), part of the government-owned Nama Group.

    The grid station will comprise eight 400kV gas-insulated switchgear (GIS) bays, eight 220kV GIS bays and 10 132kV GIS bays at the new Sohar Free Zone substation.

    The scope includes the installation of two 500MVA, 400/220kV transformers and two 500MVA, 220/132kV transformers.

    Local firm Monenco Consulting Engineers was appointed in April last year to provide design and supervision services for the project.

    As MEED exclusively revealed, the main contract was tendered in June, as part of three significant contracts to build new substations in the sultanate.

    The second contract, worth about $35m, covers the construction of the Sultan Haitham City 132/33kV grid station and associated 132kV line-in line-out underground cables running 4 kilometres from Mabella to Mabella Industrial Zone.

    The third contract, valued at about $100m, covers the construction of the Surab 400/33kV grid station and an associated 400kV line-in line-out cable from the Duqm grid station to the Mahout grid station. 

    Local firms Muscat Engineering Consulting and Hamed Engineering Services are consultants for the Sultan Haitham City and Surab projects, respectively.

    The two remaining contracts are currently under bid evaluation, with awards expected this quarter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15638107/main.jpg
    Mark Dowdall
  • Developers appoint contractor for $500m wastewater treatment project

    12 February 2026

     

    Register for MEED’s 14-day trial access 

    Egypt’s Orascom Construction has won the engineering, procurement and construction (EPC) contract for a major wastewater treatment project in Saudi Arabia’s Eastern Province.

    A consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding is developing the $500m (SR1.875bn) industrial wastewater treatment plant (IWWTP) in Jubail Industrial City 2.

    Sources close to the project confirmed the appointment to MEED, adding that the project has now entered the construction phase.

    Industry sources also said that financial close on the project is expected to be reached in the coming days.

    In September, the developer consortium was awarded a contract, under a 30-year concession agreement, by Saudi Aramco Total Refining & Petrochemical Company (Satorp), a joint venture of Saudi Aramco and France’s TotalEnergies.

    The planned facility will treat and recycle wastewater from Satorp’s under-construction Amiral chemical derivatives complex, also in Jubail.

    Marafiq, formally Power & Water Utility Company for Jubail and Yanbu, will own a 40% stake in the dedicated project company. Veolia Middle East SAS will hold a 35% stake, and Lamar Holding’s Lamar Arabia for Energy will hold the other 25%.

    The planned IWWTP, which will primarily serve the $11bn sprawling Amiral chemicals zone, will implement advanced water treatment and recovery technologies to process complex industrial effluents, including spent caustic streams. Treated water will be reintegrated into the industrial processes, supporting closed-loop reuse and energy efficiency.

    The project follows a concession-style model, akin to a public-private partnership (PPP), where the developer consortium invests in, builds and operates the wastewater plant over a 30-year period, with returns linked to service delivery.

    Marafiq has been involved in several similar projects across Saudi Arabia, including as the sole owner of the Jubail industrial water treatment plant (IWTP8), which treats complex industrial effluents for petrochemical and heavy industrial companies.

    In 2020, Saudi Services for Electro Mechanic Works was awarded the $202m main contract for the fourth expansion phase of IWTP8. Construction works on the project are expected to be completed by the end of the quarter.

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

    Spending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.

    Distributed to senior decision-makers in the region and around the world, the February 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15637523/main.jpg
    Mark Dowdall
  • Dewa raises Empower stake in $1.41bn deal

    12 February 2026

    Dubai Electricity & Water Authority (Dewa) has announced it has increased its stake in Emirates Central Cooling Systems Corporation (Empower) from 56% to 80%.

    The transaction was completed through the purchase of 2.4 billion shares and the transfer of the entire ownership of Emirates Power Investment (EPI), which is wholly owned by Dubai Holding.

    The total value of the deal is AED5.184bn ($1.41bn).

    Empower currently holds over 80% of Dubai’s district cooling market and operates 88 district cooling plants across the emirate.

    According to MEED Projects, the UAE’s district cooling sector currently has nine projects worth $1.29bn in the pre-execution phase.

    Empower has ownership in four of these projects, which have a combined value of $472m.

    This includes a $200 million district cooling plant at Dubai Science Park, with a total capacity of 47,000 refrigeration tonnes serving 80 buildings.

    Empower signed a contract to design the plant last August, with construction scheduled to begin by the end of the first quarter of 2026.

    The utility is also building a district cooling plant at Dubai Internet City.

    UAE-based TMF Euro Foundations was recently appointed as the enabling and piling subcontractor for the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15635949/main.jpg
    Mark Dowdall