Meed | PIF hydrogen move changes game

PIF hydrogen move changes game

12 July 2024

Commentary
Jennifer Aguinaldo
Energy & technology editor

Saudi Arabia's Public Investment Fund (PIF) has created Energy Solutions Company (ESC), focused on co-investing in low-carbon hydrogen projects in Saudi Arabia.

The Saudi sovereign wealth vehicle has yet to officially launch ESC, which is envisaged to become a national champion and world leader in low-carbon hydrogen production, storage, transportation and marketing services and solutions.

It will own and operate green hydrogen projects in the kingdom, low-carbon hydrogen current and planned infrastructure, as well as the global marketing of its products.

In addition to driving the development of the green hydrogen market in the kingdom, ESC will also co-invest with Saudi Aramco in the state energy giant's blue hydrogen developments.

PIF's move supports the kingdom's clean hydrogen strategy, which includes a clean hydrogen production target of 2.9 million tonnes a year (t/y) by 2030 and 4 million t/y by 2035.

PIF's entry into the nascent global hydrogen landscape could be a game changer, according to an industry expert.

It could either fuel the green hydrogen hype or make a tangible difference in terms of moving Saudi Arabia's planned hydrogen projects forward to the execution phase.

It is worth mentioning that the world's largest integrated green hydrogen and ammonia production facility, worth $8.4bn, is under construction at Saudi Arabia's $500bn Neom gigaproject. Neom, a PIF company, owns a third of the project company implementing that project, which aims to produce over 200,000 t/y of green hydrogen to be converted into ammonia.

There are also at least three green hydrogen projects in the conceptual design or study stage in Saudi Arabia, proposed by teams separately led by France's Engie, Japan's Marubeni and South Korea's Posco.

PIF's move could also pose a risk and potentially make other green hydrogen projects being planned in other GCC states and Egypt less competitive, notes the expert.

Oman, for instance, aims to achieve a green hydrogen production of at least 1 million t/y by 2030, while the UAE eyes 1.4 million t/y of clean hydrogen production by 2031, consisting of 1 million t/y of green hydrogen and 0.4 million t/y of blue hydrogen.

While multiple green hydrogen megaprojects are planned in both jurisdictions, none have reached financial investment decisions so far, pending the approval of specific regulations and investment framework and signed offtake agreements.

The expected green hydrogen demand trajectory from Europe and Asia courtesy of stringent net-zero policies could imply – subject to multiple factors such as standards and production, storage and transport costs – that the region's clean hydrogen projects can find a way to co-exist despite PIF's obvious financial advantage.

Equally important, Saudi Arabia's clear hydrogen plan appears to tie in with the Energy Ministry's new target to procure 20GW of renewable energy capacity annually, leading to the near tripling of its original 2030 renewable energy installed capacity target of 58.7GW.

A scenario in which green hydrogen accounts for half of the kingdom's clean hydrogen target by 2030 implies that it will require over 24GW of renewable energy to power the electrolysers producing that much green hydrogen.

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Jennifer Aguinaldo

Exclusive from Meed

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20 July 2026
Abu Dhabi launches E20 highway expansion project
20 July 2026
Firms given more time for Mid Island Parkway prequalifications
20 July 2026
Aramco executive becomes Samref chairman
17 July 2026

Chinese firm wins Dubai drainage contract
20 July 2026

China State Construction Engineering Corporation (CSCEC) has announced it has won a contract to deliver a stormwater drainage pipeline package under Dubai Municipality’s Tasreef programme.

The contract is for the TF-15-C2 stormwater drainage network project located along Umm Suqeim Road in the Al-Barsha and Al-Quoz areas of Dubai.

MEED exclusively revealed in May that the contractor had been selected for the engineering, procurement and construction (EPC) contract. The project is estimated to cost $162m.

The scope of work includes the construction of about 20 kilometres of new stormwater pipelines, together with associated inspection and intake manholes. The project is located west of the Dubai Canal and will connect the Al-Quoz 3 and Al-Quoz 4 industrial areas with Al-Quoz 1.

It is being delivered as part of Dubai’s Tasreef strategic plan, which supports the Dubai 2040 Urban Master Plan. Once completed, the new drainage infrastructure is expected to improve the emirate’s stormwater network, increase flood protection and enhance the resilience of Dubai’s infrastructure.

In February, the municipality confirmed it had awarded contracts for five new projects under phase two of the programme to expand and strengthen Dubai’s stormwater drainage network.

These include a separate contract awarded to CSCEC for the TF-11-C1 stormwater drainage project in the Dubailand area.

Also in February, Dubai Municipality invited consultants to qualify for a contract to supervise construction on the TF-15-C2 stormwater drainage projects along with two other projects (TF-13-C1 and TF-16-C1) under the Tasreef programme.

According to a source, a consultant has yet to be appointed.

TF-16-C1 involves upgrading and rehabilitating the stormwater system east of the Dubai Canal, while TF-13-C1 involves building a water pipeline stormwater drainage system at Al-Marmoum, Al-Qudra and Al-Yalayis 2 & 3.

Bids are currently under evaluation for the EPC contracts for both projects.

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Mark Dowdall
Dubai receives eight bids for Hassyan SWRO pipeline contract
20 July 2026
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Eight contractors have made offers for a contract to supply, install, test and commission glass-reinforced epoxy (GRE) water transmission pipelines and associated works for the Hassyan seawater reverse osmosis (SWRO) phase two network in Dubai.

The contract relates to project one of the Hassyan pipeline network expansion being undertaken by state utility Dubai Electricity & Water Authority (Dewa).

Local firm Binladin Contracting Group submitted the lowest offer of AED335.92m ($91.5m), according to results published by the utility.

The other bids were:
- Green Oasis General Contracting (UAE) – AED345.00m ($93.9m)
- Al-Nasr Contracting (UAE) – AED391.54m ($106.6m)
- Wade Adams Contracting (UAE) – AED393.80m ($107.2m)
- RMB Contracting (UAE) – AED437.96m ($119.3m)
- Tristar Engineering & Construction (UAE) – AED441.55m ($120.2m)
- Shapoorji Pallonji Mideast (UAE/India) – AED451.47m ($122.9m)
- Gulf Petrochemical Services Trading (UAE) – AED495.20m ($134.8m)
RMB also submitted a conditional discounted offer of AED427.02m ($116.3m). Three companies submitted regret notices, while one offer was rejected after no valid commercial offer was received.

In January, Dewa announced that construction of the 180-million-imperial-gallon-a-day phase one of the Hassyan SWRO independent water project was 90% complete.

Dewa has two other contracts out for tender for GRE water transmission pipeline work related to the Hassyan SWRO phase two network.

Project two was tendered on 22 January and has a bid submission deadline of 21 July. Project three was tendered on 26 January and has a bid submission deadline of 29 July.
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Mark Dowdall
Abu Dhabi launches E20 highway expansion project
20 July 2026

Abu Dhabi’s Department of Municipalities and Transport (DMT) has announced the E20 highway expansion project.

The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.

Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.

The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.

The E20 expansion is one of the major infrastructure schemes being overseen by DMT in Abu Dhabi.

Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.

The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.

Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.

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Yasir Iqbal
Firms given more time for Mid Island Parkway prequalifications
20 July 2026

Abu Dhabi’s Modon Infrastructure has extended the deadline to 31 July for firms to submit expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership (PPP).

The previous deadline was 15 July. MEED understands the prequalification notice was issued in June, following Modon Infrastructure’s invitation in May for firms to register their interest.

Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.

Phase two of the MIPP involves the construction of about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.

The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover (open) tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.

Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.

Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.

It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.

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Yasir Iqbal

Aramco executive becomes Samref chairman

17 July 2026

Saudi Aramco Mobil Refinery Company (Samref) has announced the appointment of Abdullah Bin Saleh Al-Suwailem as the chairman of its board of directors.

Al-Suwailem serves as senior vice president of Western Region manufacturing at Saudi Aramco.

Prior to being appointed chairman, Al-Suwailem had been a member of the Samref board since .

Samref is the downstream joint venture of Aramco and US oil and gas producer ExxonMobil. The entity owns a crude refining facility located in Yanbu on Saudi Arabia’s west coast, which entered operations in November 1984.

The Samref refinery has a capacity of 400,000 barrels a day (b/d) and mainly produces propane and several grades of automotive diesel oil, two grades of marine heavy fuel oil and sulphur.

In a , Samref said that Al-Suwailem “brings more than 30 years of leadership across the refining and petrochemicals sectors, having led some of the kingdom's most significant industrial joint ventures”.

“We expect his deep expertise in governance and large-scale operations to be invaluable as Samref continues its journey of growth and operational excellence. We look forward to his leadership in steering the board's strategic direction,” Samref added.

Aramco and ExxonMobil signed a memorandum of understanding (MoU) in May 2025 to evaluate a significant upgrade of the Samref complex and expand the oil refining facility into a world-class integrated petrochemicals complex.

The MoU between Aramco and ExxonMobil to upgrade the Yanbu refinery and convert the facility into an integrated refining and petrochemicals complex was signed at the Saudi-US Investment Forum held in Riyadh on 13-14 May 2025, during US President Donald Trump’s state visit to Saudi Arabia.

MEED understands that the Samref petrochemicals expansion project is one of the schemes that comprise Aramco’s $100bn liquids-to-chemicals programme.

Aramco has divided its liquids-to-chemicals programme into four main projects and has taken steps forward this year by signing joint-venture investment agreements with foreign partners for these schemes:

Conversion of the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery. Front-end engineering and design (feed) on the project is under way and is being performed by Samsung E&A, although progress has been slow.
Conversion of the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. China’s Sinopec is a joint-venture partner in the project.
Conversion of the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. US oil and gas producer ExxonMobil, Aramco and Samref signed a venture framework agreement in December to begin preliminary feed work on the project.
Building a crude oil-to-chemicals complex in Ras Al-Khair in the Eastern Province. Progress on this project remains slow.

The central aim of the strategic programme is to derive greater economic value from every barrel of crude produced in Saudi Arabia by converting 4 million b/d of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

Aramco and its subsidiary Saudi Basic Industries Corporation (Sabic) were tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which included greenfield developments and expansions of existing facilities, were to be built both in Saudi Arabia and in overseas markets.

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