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
  • Shell approves Egypt offshore gas project

    31 August 2026

    BG Delta, a Shell subsidiary, has reached the final investment decision for phase 12a of the West Delta Deep Marine (WDDM) development project.

    The project will be implemented in partnership with Malaysia’s Petronas and state-owned Egyptian General Petroleum Corporation (EGPC).

    Shell, Petronas and EGPC formed a joint venture called Burullus Gas Company to operate the WDDM concession.

    Phase 12a includes drilling and completing three deepwater gas wells, with production expected to begin in 2028, according to a statement from the London-headquartered company.

    The wells will be tied into existing subsea infrastructure, helping accelerate development, improve capital efficiency and limit the need for additional facilities.

    Dalia El-Gabry, the vice-president and chairperson of Shell Egypt, said: “This investment demonstrates our commitment to maximising the remaining potential in WDDM where the right technical and commercial conditions exist.

    “By leveraging existing infrastructure and our proven development experience, we can accelerate delivery while reinforcing our partnership with the Egyptian government and joint venture partners to help meet Egypt’s energy needs.”

    The new development builds on phases 10 and 11, which brought six wells online during 2024 and 2025.

    Its scope also covers facility installation, tie-in operations, commissioning and connection to existing offshore infrastructure.

    Egypt’s Ministry of Petroleum & Mineral Resources said in May that about $350m had been allocated to phase 12a.

    In April, Egypt’s Petroleum Marine Services (PMS) was awarded a contract for offshore works for phase 12 of the WDDM field development project.

    The contract awarded to PMS uses the engineering, procurement, installation and construction contract model.

    Under the scope of the contract, PMS will install the required electrical, hydraulic and mechanical connections in deep waters to tie three new gas wells into production as part of phase 12.

    The scope also includes the installation of three final triple tie-in spool bases to complete the connection between the wells.

    During phases 10 and 11 of the WDDM project, PMS laid two offshore electrical cables at water depths reaching 660 metres, in addition to carrying out well tie-in and production connection works at depths of up to 880 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19078753/main.jpg
    Wil Crisp
  • Contractors appointed for Group 1 battery storage projects

    27 August 2026

     

    Register for MEED’s 14-day trial access 

    Two contractors have been appointed for engineering, procurement and construction (EPC) works on Saudi Arabia’s four Group 1 battery energy storage system (bess) projects with a combined capacity of 2,000MW, a source has confirmed to MEED.

    Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), recently signed four storage service agreements for the bess projects, which will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve a total investment of more than SR4.35bn ($1.16bn).

    Three projects were awarded to a consortium comprising Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company.

    According to the source, India’s Larsen & Toubro will carry out EPC works for these three projects, comprising the Al-Muwyah and Haden bess independent storage providers (ISPs) in the Mecca region, and the Al-Kahafa bess ISP in the Hail region.

    Each has a capacity of 500MW for four hours. The three projects have a combined capacity of 1,500MW and 6,000MWh.

    L&T recently announced that it had secured “a major order” for bess projects in the Middle East but did not disclose the specific projects involved.

    The fourth project, the Al-Khushaybi bess ISP in the Qassim region, was awarded to a consortium of France’s Engie and local firm Haji Abdullah Alireza & Co. This also has a capacity of 500MW for four hours. 

    China’s Sepco 3 has been appointed as the EPC contractor for this project, a source said.

    The agreements cover the first group of ISP bess projects being procured by SPPC under a build, own and operate model. The projects are supervised by the Energy Ministry.

    The projects form part of Saudi Arabia’s efforts to achieve an electricity generation mix comprising approximately 50% renewable energy by 2030.

    As previously reported, the Group 2 programme comprises six ISP projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration.

    Developers recently submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19052381/main.jpg
    Mark Dowdall
  • Accor and Al-Qimmah plan 4,000 Saudi rooms

    27 August 2026

    France’s hotel operator Accor has expanded its partnership with local firm Al-Qimmah Hospitality, a subsidiary of Saudi Arabia’s BinDawood Investment Company, to develop more than 4,000 hotel rooms in the kingdom.

    The plan focuses on building a portfolio in Mecca and Medina.

    The expanded agreement was announced in Paris during the French-Saudi Investment Roundtable. It follows a master development agreement signed in 2025. The partnership now covers five hotels in Jeddah, Mecca and Medina across the premium, midscale and economy segments.

    One planned development is an 850-room Novotel in Mecca, due to open in 2030. The agreement also covers the Mercure Makkah Shesha, ibis Styles Makkah Mesfalah, Movenpick Madinah and Swissotel Jeddah properties.

    The partnership will also support job creation and Saudi workforce development through Tamayyaz by Accor, the group’s national talent programme run with the Saudi Ministry of Tourism. The programme aims to develop and hire more than 3,000 Saudi nationals by 2030.

    Accor has operated in Saudi Arabia for more than three decades and runs 48 hotels with more than 21,600 rooms nationwide. Its pipeline includes a further 47 properties comprising more than 11,400 rooms.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19051854/main.jpg
    Colin Foreman
  • Jeddah tenders stormwater drainage contracts

    27 August 2026

    Jeddah Municipality has invited contractors to bid for a contract covering the construction of a rainwater drainage network for the Prince Fawaz neighbourhood.

    The project aims to collect and convey rainwater away from residential streets and low-lying areas. It is valued at $60m and intended to reduce flooding risks during heavy rainfall.

    The scope includes manholes, stormwater catch basins and connections to existing manholes as well as the restoration of road surfaces.

    The bid submission deadline is 12 October.

    The municipality is also progressing with a second stormwater drainage project for the first package of Zone (BC), Old Zahraa in Jeddah Governorate, with bids due on 2 September. The project is valued at about $30m.

    The two projects are part of the municipality’s wider drainage programme, which includes the flagship King Abdullah Road-Falasteen Road tunnel project.

    MEED previously reported that Saudi contractor Thrustboring Construction Company had been selected for phases one and two of the project, each valued at about $175m, covering the construction of large-diameter stormwater drainage tunnels.

    It is understood that an official agreement has yet to be signed.

    In June, MEED reported that local contractor Alkhorayef Water & Power Technologies (AWPT) had signed two contracts with Jeddah Municipality to operate and maintain stormwater and surface water drainage networks across the city.

    The contracts have a combined value of SR202.06m ($53.9m), and each will run for five years.

    The first contract, valued at SR108.46m ($28.9m), covers the operation and cleaning of stormwater and surface water networks in the South and Al-Malisa sub-municipalities.

    The second contract, worth SR93.59m ($25m), covers similar services for the Airport Sub-Municipality.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19039514/main.jpg
    Mark Dowdall
  • OQ seeks revised prices for NGL project from preferred contractors

    26 August 2026

     

    Omani state energy conglomerate OQ Group has sought revised commercial proposals from a set of preferred bidders for its planned project to build a major natural gas liquids (NGL) facility in the sultanate.

    The planned NGL facility at Saih Nihayda in central Oman will extract condensates and transport them to Duqm on the sultanate’s Arabian Sea coast for fractionation and export, OQ Group said.

    OQ Group intends to deliver the project using a front-end engineering and design (feed)-to-engineering, procurement and construction (EPC) competition model. Under this model, the project operator selects contractors to carry out the feed work. The operator then awards the EPC contract to the contractor with the most competitive feed proposal, while compensating the other participants for their work.

    MEED reported in June that OQ Group was seeking revised prices from contractors it had selected earlier this year to participate in the feed-to-EPC competition. Contractors submitted their revised bids by 6 July.

    According to sources, OQ Group entered into negotiations with bidders in the weeks after receiving the revised commercial bids. The client is then said to have approached only the following three contractors for their final commercial offers on the NGL project:

    • Saipem (Italy)
    • Tecnicas Reunidas (Spain)
    • Tecnimont (Italy)

    MEED previously reported that the contractors who had submitted their original proposals to OQ for the feed-to-EPC competition on 20 May were:

    • Hyundai Engineering & Construction (South Korea) / KBR (US)
    • JGC Corporation (Japan)
    • Petrofac (UK)
    • Saipem (Italy)
    • Technip Energies (France)
    • Tecnicas Reunidas (Spain)
    • Tecnimont (Italy)

    OQ issued the main tender for the feed-to-EPC competition in March, setting an initial deadline of 8 April for contractors to submit proposals, which it later extended to 6 May and then again to 20 May.

    MEED previously reported that the state enterprise had started the prequalification process for the feed-to-EPC contest for the planned NGL project in November last year, with contractors submitting responses by 15 December.

    In addition to the contractors understood to have submitted proposals for the feed-to-EPC competition, OQ also invited the following firms to participate, although they are understood to have pulled out of the contest later:

    • Chiyoda (Japan) / CTCI (Taiwan)
    • GS Engineering & Construction (South Korea)
    • Kent (UAE)
    • Samsung E&A (South Korea) / Larsen & Toubro Energy Hydrocarbon (India) / Wood (UAE).
    Project scope of work

    The scope of work on the project covers the development, verification and integration of feed deliverables for the following facilities and systems:

    NGL extraction facility – Saih Nihayda:

    • Verification and updating of the existing feed to enable dual-mode operation (ethane recovery and ethane rejection)
    • Identification and implementation of required process, equipment, utilities and control system modifications
       

    NGL pipeline – Saih Nihayda to Duqm:

    • Feed for a new NGL transmission pipeline stretching approximately 230 kilometres, including routing, hydraulics, stations, pigging facilities, metering, corrosion protection, leak detection and safety systems
       

    Fractionation unit at Duqm:

    • Feed for a new fractionation facility to process ethane and propane plus NGL and recover propane, butane, condensate, and the provision for future ethane recovery
    • Design accommodating licensed or open-art technology and future tie-in to a planned petrochemicals project in Duqm
       

    Product pipelines, storage and export facilities at Duqm jetty:

    • Feed for product pipelines, cryogenic and atmospheric storage tanks, vapour recovery systems, marine loading arms and export facilities
    • Integration with existing port and refinery infrastructure, where feasible
       

    Supporting systems and studies:

    • Utilities, offsites, flare systems, safety and environmental studies, cost estimates (class 2+10%), project schedules, constructability assessments and EPC tender documentation
    Gulf NGL projects

    Gulf national oil companies have been allocating significant capital expenditure to the construction or expansion of NGL production facilities.

    In September last year, QatarEnergy awarded the main EPC contract for its project to add a fifth NGL train at its fractionation complex in Qatar’s Mesaieed Industrial City. The aim of the project, which is estimated to be worth $2.5bn, is to build a fifth NGL train (NGL-5) with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

    The main EPC contract for the QatarEnergy NGL-5 project was won by a consortium of India’s Larsen & Toubro Energy Hydrocarbons Onshore and Greece-headquartered Consolidated Contractors Group.

    Separately, MEED reported in March that the gas processing business of Abu Dhabi National Oil Company (Adnoc Gas) had selected the main contractor for a project to install a fifth NGL fractionation train at its Ruwais gas processing facility in Abu Dhabi.

    The fifth NGL fractionation train will have an output capacity of 22,000 tonnes a day, or about 8 million tonnes a year. The Ruwais NGL Train 5 project represents the second phase of Adnoc Gas’ Rich Gas Development programme, and its budget is estimated to be about $4bn, Peter Van Driel, Adnoc Gas’ chief financial officer, confirmed in February.

    ALSO READ: PDO floats tender for major flare gas monetisation scheme
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19011913/main.jpg
    Indrajit Sen