Petronas plans Iraq carbon capture project
6 March 2023
The Malaysian state-owned oil and gas company Petronas plans to develop a carbon capture and storage (CCS) project in Iraq, according to Mohd Shahir Liew, the deputy vice chancellor of research and innovation at Universiti Teknologi Petronas (UTP).
UTP is a research university that is wholly owned by Petronas and conducts research operations in collaboration with the oil and gas company.
“We are already piloting a carbon capture and storage project in Malaysia and we are planning to deploy one in Iraq as well,” Liew told MEED in an interview.
The ongoing pilot in Malaysia is a CCS scheme named the Kasawari integrated offshore high contaminant project.
The first injection of carbon dioxide at the site is expected to take place by the end of 2025.
Once in operation, the project is expected to reduce carbon dioxide volumes emitted via flaring by 76 million metric tonnes with an annual average of 3.7 million metric tonnes a year.
Commenting on the planned project in Iraq, Liew said: “I think we are looking at doing this in about five years’ time. We have to make sure that the one that we are doing now is successful.”
He added: “Iraq is top of our list when it comes to places that we want to implement this technology. We think it could be quite straightforward. Iraq is going to be the next location after Singapore.”
Liew said that Petronas does not want to decarbonise by withdrawing from the assets it is still operating in Iraq.
He said the company wanted to maintain stakes in the existing Iraqi assets and use new technologies to try to reduce its carbon footprint.
Petronas has been operating in Iraq since 2010 and holds an interest in the Garraf oil field (45 per cent), the Halfaya oil field (22.5 per cent) and the Badra oil field (15 per cent). Petronas is also the operator of the Garraf oil field.
In December last year, Iraq’s Oil Minister Hayan Abdel-Ghani said the country aims to eliminate gas flaring within four years.
Iraq continues to flare large volumes of the gas extracted alongside crude oil because it lacks the facilities to process it into fuel for local consumption or exports.
Iraq is the second-largest gas-flaring country after Russia, according to the World Bank, with around 40 per cent of its gas production flared.
Exclusive from Meed
-
Neom’s industrial pivot gathers pace1 October 2026
-
Contractor wins Dammam airport water infrastructure deal1 October 2026
-
Kuwait tenders LNG project1 October 2026
-
Riyadh approaches contractors for 2km tower1 October 2026
-
Aldar and Arada to pursue Abu Dhabi projects1 October 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Neom’s industrial pivot gathers pace1 October 2026
Commentary
Colin Foreman
EditorReprioritisation has been the buzzword in Saudi Arabia over the past two years and nowhere has that been more evident than at Neom.
The slowdown of development at The Line and the postponement of the 2029 Asian Winter Games at Trojena have dominated international headlines. As these projects scale back, Oxagon’s industrial and logistics base has become the $500bn gigaproject’s flagship development. There are tangible results: in August, the $8.5bn Neom Green Hydrogen project was commissioned, marking Neom’s most significant completion to date. Construction activity elsewhere at Oxagon supports this trend. The AI data-centre campus being developed by Humain and DataVolt has broken ground on its first 100MW phase, backed by $5bn of investment and targeted for service in 2028. Neom has issued an expression of interest for a rail line linking the Port of Neom to Saudi Arabia Railways’ North-South network, tenders are out for an industrial wastewater plant and the upgrade of Highway 55, and the port itself is advancing towards a 2030 capacity target of 1.5 million TEUs.
The regional conflict that began in February has strengthened the business case by giving Oxagon’s Red Sea port added strategic weight as a second maritime gateway outside the Strait of Hormuz, at a time when Riyadh has committed to directing about 80% of the Public Investment Fund’s portfolio into domestic investment.
These developments reflect a kingdom recalibrating rather than retreating
Elsewhere, Saudi Arabia’s wider projects market is holding steady despite conflict-related disruption, with contract awards reaching $68bn so far this year. The regional power market is also diversifying, with Aljomaih, EDF and Kepco all more than tripling net capacity in recent years as Acwa retains its lead.
These developments reflect a kingdom recalibrating rather than retreating, with priority given to projects capable of delivering commercial returns.
READ THE OCTOBER 2026 MEED BUSINESS REVIEW – click here to view PDFIndustry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.
Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:
> AGENDA: Oxagon takes centre stage at Neom> MARKET FOCUS: Saudi projects hold steady> INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking> LEADERSHIP: The future city does not need to hang above the groundTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20178338/main.gif -
Contractor wins Dammam airport water infrastructure deal1 October 2026
Saudi Arabia-based Alkhorayef Water & Power Technologies has won an SR80m ($21.3m) contract to rehabilitate water and wastewater infrastructure at King Fahd International airport in Dammam in the kingdom’s Eastern Province.
The contract was awarded by Dammam Airports Company (DACO), and work is scheduled to be completed within 18 months, the firm said in a disclosure to the Saudi Exchange (Tadawul) on 29 September.
The scope covers the design, construction, supply, installation, replacement, rehabilitation and integration of water and wastewater infrastructure.
It includes pumps, storage tanks and reservoirs, reverse osmosis facilities, piping and tie-ins, as well as electrical and instrumentation works.
The award comes as DACO advances a wider programme of investment at King Fahd International airport.
DACO signed more than SR1.2bn ($320m) in agreements in June covering airport infrastructure, including a new power station, a medium-voltage distribution network and upgrades to the existing electrical grid.
In September, it also appointed WSP Middle East, the regional arm of Canadian engineering firm WSP, to develop the airport’s expansion under its masterplan.
The expansion is intended to increase annual passenger capacity to more than 19.3 million by 2030, with a longer-term target of 32 million passengers.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20169118/main.jpg -
Kuwait tenders LNG project1 October 2026

State-owned Kuwait Integrated Petroleum Industries Company (Kipic) has tendered a project to develop a reliquefaction unit at the Al-Zour liquefied natural gas (LNG) import terminal.
The project focuses on developing a boil-off gas (BOG) unit at the terminal, with bids due on 22 December.
A meeting for contractors to discuss the project is scheduled for 18 October.
The project scope includes engineering, procurement and construction works, along with pre-commissioning, commissioning and performance testing services.
The list of prequalified companies is:
- Fluor (US)
- GS Engineering & Construction (South Korea)
- Tecnicas Reunidas (Spain)
- Larsen & Toubro (India)
- Hyundai Engineering (South Korea)
- CTCI Corporation (Taiwan)
- Daewoo Engineering & Construction (South Korea)
- Hyundai Engineering & Construction (South Korea)
- Saipem (Italy)
- Samsung Engineering (South Korea)
- Sinopec Engineering (China)
- JGC Holdings (Japan)
- KBR (US)
- China National Petroleum Corporation (China)
- Technip (France)
A BOG unit at an LNG facility captures, compresses and processes natural gas vapours that evaporate from cryogenic storage tanks, enabling the gas to be recycled back into the system rather than flared.
In April, MEED revealed that contractors expected the project to be worth about $200m.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20168625/main2005.jpg -
Riyadh approaches contractors for 2km tower1 October 2026

Register for MEED’s 14-day trial access
Saudi Arabia’s Public Investment Fund (PIF) has reached out to contractors as part of a market-sounding exercise for the construction of the proposed 2-kilometre megatall tower project.
MEED understands that a PIF subsidiary, the Tower District Real Estate Development Company, is undertaking the process.
It is understood that several experienced international contractors, as well as some prominent local contractors, have been approached.
The latest development follows PIF receiving offers in June last year from firms seeking a contract to provide project management consultancy (PMC) services for a new central business district (CBD) on the outskirts of Riyadh, which includes the proposed 2km tower.
The PMC role covers both the tower and the surrounding district.
Firms understood to have been invited to bid include US-based Aecom, Jacobs, Parsons and Turner, as well as the UK’s Mace.
UK-based Foster & Partners is working as the architect for the tower after winning a design competition launched in late 2022.
Record breaker
The proposed tower would be more than double the height of the world’s tallest building, Dubai’s Burj Khalifa, which stands 828 metres tall. It is expected to be at least several hundred metres taller than the 1,000-metre-plus tower under construction in Jeddah.
Contractors that have priced megatall towers in the region say a 2km-tall structure could cost about $5bn to construct, depending on the final design.
The 2km tower and the surrounding CBD – known as Project Rise – sit within a larger masterplanned development to the north of Riyadh called the North Pole.
MEED’s October 2026 report on Saudi Arabia includes:
> COMMENT: Saudi projects hold steady
> GOVERNMENT: Riyadh looks to reset its regional defence outlook
> ECONOMY: Conflict bolsters case for Saudi economic diversification
> BANKING: Saudi lenders readjust to lower lending and deposit climate
> UPSTREAM: Aramco upstream spending gathers pace
> DOWNSTREAM: Sabic steps up Saudi petchems investment
> POWER: Saudi Arabia’s power award activity slows
> WATER: Saudi water sector hits sharp slowdown
> CONSTRUCTION: Saudi construction defies the headwinds
> TRANSPORT: Saudi infrastructure pushes forward amid conflict
> DATABANK: Saudi data indicates project spending shiftTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/20156496/main.jpg -
Aldar and Arada to pursue Abu Dhabi projects1 October 2026
UAE-based developers Aldar Properties and Arada have signed a partnership agreement targeting about AED15bn ($4bn) in development opportunities on Yas Island and in Abu Dhabi’s Seih Sdeirah.
The deal includes a masterplan joint venture to develop a mixed-use community at Seih Sdeirah, on the Abu Dhabi-Dubai border, and Arada’s purchase of three residential plots on Yas Island from Aldar.
The Seih Sdeirah project will cover up to 1.5 million square metres (sq m) and will include villas, townhouses, and retail and leisure facilities.
Arada will lead development and construction management, while both firms will jointly brand and market the community.
On Yas Island, Arada has bought two canal-facing plots totalling more than 27,500 sq m, with nearly 130,000 sq m of gross floor area, as well as a third residential plot.
Aldar said the companies will explore further collaboration across sectors and locations in the UAE.
https://image.digitalinsightresearch.in/uploads/NewsArticle/20156829/main.jpg