meed-logo

line1 line2 line3
SIGN IN / REGISTER

Process technology adoption is poised for growth

27 March 2024

 

Process technologies have played a pivotal role in the oil, gas and petrochemicals industries for decades. Now, the global energy industry, and the oil and gas sector in Middle East and North Africa (Mena) in particular, is at a turning point and needs to rely on the adoption of licensed technologies to be able to transition effectively.

The energy transition is gathering pace in the region. Oil and gas producers are increasingly investing in environmental sustainability projects and exploring new frontiers such as carbon capture, utilisation and storage (CCUS) and hydrogen, while the petrochemicals industry is making sweeping changes to its operations in light of its growing importance in the modern economy.

As a result, the stage is set for swift and comprehensive adoption of process technologies in the Mena region's oil, gas and petrochemicals industries. 

Germany-headquartered Linde Engineering is eager and prepared to meet the evolving and complex needs of its customers, according to John van der Velden, the company's senior vice president of engineering, sales and technology.

“Hydrogen and efficient carbon dioxide (CO2) capture are the future of the energy transition, and our goal is to ensure that the GCC has the technology it needs to shape this opportunity to decarbonise the petrochemicals industry,” he tells MEED.

“We also recognise effective ammonia cracking technology is the missing link in the hydrogen value chain. We are working with Saudi Aramco to develop a new process to convert ammonia back to hydrogen efficiently and at scale.

“The technology will be based on Linde Engineering’s steam reformer technology and will incorporate developments from both companies. As part of this collaboration, we will build a demonstration plant in Germany."

The plant will “support market development in Europe for blue and green ammonia”, Van der Velden says, adding: “We have established ourselves a partner for the entire hydrogen value chain, and we are interested in investing in projects in the Mena region.”

Linde Engineering has opened a research and development centre in Saudi Arabia’s Dhahran Techno Valley in collaboration with US oil field services provider SLB. The facility “focuses on aspects of CO2 capture, transportation and storage”, Van der Velden says.

He is also optimistic about opportunities in the blue hydrogen domain. “We are at the beginning of the growth curve and see many opportunities currently being developed in this area. The availability of natural gas at a competitive price, and pore space to safely store CO2 for the long term, make the region an interesting location to establish blue hydrogen projects on very competitive terms.

"Technologies in this area are available and mature, and the market holds promise, as confirmed by the number of projects now under development.”

Regional project involvement

Linde Engineering has a track record of oil and gas project execution in the region, and has participated in several key projects, such as the world's largest CO2 liquefaction plant for Saudi Basic Industries Corporation (Sabic), and the construction and operation of ammonia, hydrogen and CO2 plants for the Sadara petrochemicals complex in Saudi Arabia. The company also provided air separation units to the Pearl gas-to-liquids project in Qatar.

“The first hydrogen refueling station in the region for [Abu Dhabi National Oil Company] Adnoc went into operation a few months ago," adds Van der Velden.

Looking ahead, Linde is one of the partners that Aramco has brought on board for a project to develop a carbon capture and storage (CCS) infrastructure in Saudi Arabia that will tap CO2 discharge from its gas processing plants. The objective of the Accelerated Carbon Capture & Sequestration (ACCS) project is to capture a total of 44 million tonnes a year (t/y) of CO2 from Aramco’s northern gas plants of Wasit, Fadhili and Khursaniyah, as well as from the operations of its subsidiary Sabic and Saudi industrial gases provider Air Products Qudra.

The ACCS project will be developed in phases over several years, with Linde and SLB partnering with Aramco for the first phase, which will have a CCS capacity of 9 million t/y.

“Under the project, the CO2 captured from natural gas processing plants, as well as from hydrogen and ammonia production, will be collected, dried, compressed and sent via pipeline to sequestration sites,” explains Van der Velden. “The project thereby accelerates decarbonisation solutions across the industrial and energy sectors in Saudi Arabia.

“The collaboration [with Aramco] combines decades of experience in CO2 capture and sequestration; innovative technology portfolios; project development and execution expertise; and engineering, procurement and construction (EPC) capabilities,” he adds.

Our goal is to ensure that the GCC has the technology it needs to … decarbonise the petrochemicals industry
John van der Velden, Linde Engineering

Future project investments

Ongoing investment in projects by Mena oil, gas and petrochemicals players leaves the door open for Linde Engineering to showcase its licensed technologies and EPC potential.

“We see increasing investment flowing into upstream projects in the region, many of which provide feedstock for new petrochemicals production and blue ammonia plants,” says Van der Velden. “In most of these new upstream developments – as well as in existing plants – CCUS facilities will be installed to reduce their carbon footprint.”

In the petrochemicals sector, operators plan to build large-scale olefin plants or cracking complexes, “particularly in Saudi Arabia, where the conversion of crude to chemicals will play a key role,” he continues.

“The highest efficiency and lowest emissions possible are now of utmost importance to customers, in line with their carbon emission reduction commitments. In fact, these considerations determine which technology is selected. 

“Linde Engineering is well positioned in this market as a technology-to-EPC provider for net-zero crackers,” Van der Velden notes. “Aside from low-emission crackers, we have established design and execution capabilities for further opportunities and continue to work on innovations for carbon capture technologies.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/11608072/main21453223.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait tenders two Al-Mutlaa City construction packages

    2 September 2026

    Register for MEED’s 14-day trial access 

    Kuwait’s Public Authority for Housing Welfare (PAHW) has tendered two contracts covering the construction of public buildings across five districts at its Al-Mutlaa City residential project.

    The first tender covers construction in the N5 and N6 districts, while the second covers N1, N3 and N4.

    The tenders were issued on 30 August, with a bid submission deadline of 30 September.

    The project is a housing scheme located 38.3 kilometres northwest of the Kuwait metropolitan area.

    It covers approximately 104 square kilometres and is expected to house up to 400,000 people.

    The mixed-use development will include residential, social, commercial and light industrial areas.

    In March 2023, MEED reported that PAHW had appointed France-based Egis as a project management consultant for the Al-Mutlaa City development.

    Under the agreement, Egis is providing programme-level service management, construction logistics and interface management services.

    The scope of work also includes cost management, a digital programme management system and a project management information system for the scheme.

    Al-Mutlaa City is one of the largest housing infrastructure projects being developed by the government as part of Kuwait’s Vision 2035.

    UK analytics firm GlobalData expects Kuwait’s construction industry to grow at an average annual rate of 7.1% in 2025-28, supported by investment in renewable energy, transport and oil and gas projects, as well as spending under the New Kuwait 2035 National Development Plan.

    Under this strategy, the government plans to invest KD350m ($1.1bn) to develop several sports projects in the country.

    The residential construction sector is expected to register average annual growth of 3.8% in 2025-28, supported by the government’s plan to build 65,500 housing units by 2029 through five projects.

    MEED’s September 2026 report on Kuwait includes:

    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19245517/main.png
    Yasir Iqbal
  • Preferred bidders emerge for Zatca residential PPP

    2 September 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Zakat, Tax and Customs Authority (Zatca), through the National Centre for Privatisation and PPP (NCP), has selected preferred bidders to develop residential buildings at various land ports across the kingdom.

    The project covers developments across nine land ports, separated into two packages.

    Local firm Saudi Arabian Trading & Construction Company has been selected as the preferred bidder for the first package, which includes the Al-Batha, Salwa, Al-Raqi, Jadidat Arar, Al-Wadiah and Empty Quarter sites.

    Bahrain-headquartered Lamar Holding is the preferred bidder for the second package, which includes land ports at Al-Hadithah, Halat Ammar and Al-Durrah.

    The project will be implemented as a public-private partnership (PPP) on a design, build, finance, operate, maintain and transfer basis, with a contract duration of 23 years, including the construction period.

    The contract covers the construction and management of new residential buildings and associated facilities at the land ports, as well as the rehabilitation of existing facilities.

    The project is the latest scheme in the kingdom’s PPP pipeline. In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

    Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

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

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19244076/main.jpg
    Yasir Iqbal
  • NWC confirms $347m Saudi sewage treatment plant deal

    2 September 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has signed a contract worth more than SR1.3bn ($347m) with a Saudi-Chinese consortium to rehabilitate, operate and maintain nine sewage treatment plants (STPs).

    The 15-year contract covers plants located across the Hail, Qassim, Al-Jouf and Northern Borders provinces. The plants have a combined treatment design capacity of more than 337,000 cubic metres a day (cm/d).

    MEED exclusively reported in January that the consortium comprising China’s Jiangsu United Water Technology and Saudi-based Armada Holding had won the contract for the project.

    The contract is for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10) and includes an initial three-year period for rehabilitation and upgrade works, followed by long-term operation and maintenance.

    As MEED understands, United Water will be responsible for design, financing, operation and part of the construction works. Saudi Arabia’s Armada Holding will handle construction, equipment import customs clearance and local business communications. UAE-registered Prosus Holding will act as the financial investor.

    LTOM packages

    The same consortium is also expected to sign a contract for Package 11 of the LTOM programme in the coming months.

    In April, MEED exclusively reported that the consortium won the contract for this project, which will have a combined capacity of about 440,000 cm/d.

    Bids for North Western B Cluster (LTOM12) remain under evaluation. The contract covers the construction and upgrade of seven STPs with a combined capacity of about 162,000 cm/d.

    NWC also tendered the Eastern A Cluster (LTOM14) package in April, covering the upgrade of six existing STPs with a capacity expansion of 30,000 cm/d at the Al-Jarodia STP.

    This will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m.

    The bid submission deadline is 30 September.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19242964/main.jpg
    Mark Dowdall
  • Egypt signs PPA for 1GW Ras Shokeir wind farm

    2 September 2026

    Register for MEED’s 14-day trial access 

    A joint venture of the local Hassan Allam Utilities Energy and Infinity Power has signed a power purchase agreement (PPA) with Egyptian Electricity Transmission Company (EETC) for the development of the 1GW Ras Shokeir wind project in Egypt.

    The project is located in Egypt’s Red Sea Governorate, within the Gulf of Suez wind corridor. It will cover approximately 143 square kilometres.

    The PPA has a 25-year term. The project will supply electricity to Egypt’s national grid.

    Ras Shokeir is expected to generate enough electricity to power more than 1.2 million Egyptian homes. It is also expected to avoid more than 1.36 million tonnes of CO2 emissions annually.

    The PPA was signed by EETC chairperson Mona Rizk and Infinity Power co-founder and CEO Nayer Fouad, representing the Infinity Power-Hassan Allam consortium.

    The signing brings the project closer to development as Egypt seeks to expand its renewable energy capacity. Egypt has set a target for renewable energy to make up 42% of the electricity mix by 2030 and 65% by 2040.

    This includes the 500MW Amunet 2 wind project, which is being developed by UAE-headquartered Amea Power following the commissioning of the first Amunet wind project in June 2025.

    Hassan Allam Utilities Energy and Infinity Power are also developing Egypt’s $560m West Minya solar plant, which will combine 1,000MWac of solar photovoltaic capacity with a 600MWh battery energy storage system.

    In June, MEED reported that a joint venture of Hassan Allam Construction and India’s Sterling & Wilson Renewable Energy had won the engineering, procurement and construction contract for the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19242701/main1603.jpg
    Mark Dowdall
  • Iraq looks to accelerate oil pipeline projects

    2 September 2026

    Iraq’s Ministry of Oil has held talks with a delegation from Qatari company UCC on accelerating the progress of two major pipeline projects, according to a statement from Iraq’s Office of Media and Government Communication.

    The first proposed pipeline route extends from Basra, in southern Iraq, to Haditha, located about 200 kilometres northwest of Baghdad, then on to Faysh Khabur, which lies on the border with Syria and near the border with Turkiye.

    The second pipeline extends from Haditha to Syria’s coastal city of Baniyas.

    Discussions covered the contract type, implementation timeline and “other technical matters”, according to the statement released by the Iraqi government.

    During the meeting, Iraq’s Minister of Oil, Basem Mohammed Khudair Al-Abadi, emphasised the need to expedite the tendering process for the project contracts.

    He said all obstacles to progress on the projects needed to be eliminated.

    He also said weekly meetings will be held between relevant parties to reach agreements on the economic models for the pipelines and their routes.

    The Ministry of Oil said UCC is leading a consortium of companies developing the projects.

    It added that the consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.

    In July, Iraq’s cabinet approved Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the consortium to explore possible future oil pipeline projects.

    Under the terms of the agreement, the consortium will prepare technical and financial feasibility studies for strategic export pipeline projects.

    Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.

    In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19241649/main.jpg
    Wil Crisp