Qatar chemical projects take a step forward
20 January 2025

Qatar has invested tens of billions of dollars this decade in its giant North Field liquefied natural gas (LNG) expansion programme, as well as projects to increase gas production from the massive North Field offshore reserve.
Along with raising gas and LNG production capacity, state enterprise QatarEnergy has also sought to derive greater economic value from its natural gas output by allocating significant capital expenditure (capex) to ethane-based petrochemical projects.
Engineering, procurement and construction (EPC) works are progressing on the Ras Laffan petrochemicals project, which will consist of an ethane cracker with an output capacity of 2.1 million tonnes a year (t/y) of ethylene, making it the largest ethane cracker in the Middle East and one of the largest in the world. When the facility is commissioned in 2026, it will raise Qatar’s ethylene production potential by nearly 70%.
QatarEnergy and US-based Chevron Phillips Chemical (CPChem) have allocated a capex budget of $6bn to the Ras Laffan petrochemicals project, making it one of the largest chemical investments in Qatar.
Ras Laffan Petrochemicals, a 70:30 joint venture of QatarEnergy and CPChem, is the operator of the Ras Laffan project. Chevron and Phillips 66 are each 50% stakeholders in CPChem.
Ras Laffan project EPC works
QatarEnergy and CPChem signed the final investment decision agreement and awarded the two main contracts for EPC works for the Ras Laffan petrochemicals complex in January 2023.
A consortium of South Korea’s Samsung E&A and Taiwan-based CTCI Corporation won the EPC contract for the main ethylene plant. Samsung E&A is in charge of the major ethylene production facilities. Its scope of work includes furnaces, ethane (C2) hydrogenation, the hydrogen purification unit and three main compressors. CTCI is responsible for the utility infrastructure, including steam/condensate collecting and boiler feed water.
The EPC contract for the polyethylene plant was awarded to Italian contractor Maire Tecnimont, which announced the value of its contract to be $1.3bn.
Maire Tecnimont is required to execute the EPC of the main polyethylene plant, which includes two polyethylene units with a capacity of 1 million t/y and 680,000 t/y, respectively, together with the associated utilities and offsite facilities. The Italian contractor’s scope of work also covers engineering services, equipment and material supply, and construction activities up to mechanical completion.
US-headquartered industrial digitalisation services provider Emerson was awarded the main automation contract for the Ras Laffan petrochemicals project.
In November last year, the Samsung E&A and CTCI consortium secured another contract from Ras Laffan Petrochemical, worth $418m, to build the main ethylene storage plant for the upcoming facility.
Qapco petrochemicals project
Meanwhile, front-end engineering and design works continue on Qatar Petrochemical Company’s (Qapco) project to build a large-scale integrated petrochemicals production complex in Ras Laffan Industrial City (RLIC). The complex will feature propane dehydrogenation (PDH) and polypropylene (PP) production plants.
Qapco’s planned petrochemicals facility is estimated to have a production capacity of 1 million t/y of propylene, which will be converted into 1.08 million t/y of polypropylene grades, including co-polymer products. The propylene to polypropylene conversion will be done by two 540,000 t/y-capacity processing trains and achieved by adding an ethylene comonomer.
Propane and butane, sourced from units within RLIC, will be the main feedstock for the PDH and PP plants.
Qapco is expected to start the main EPC tendering process for the integrated petrochemicals production complex in the first quarter of this year.
Industrial salt project
Separately, QatarEnergy signed a tripartite memorandum of understanding in September last year between its subsidiary Mesaieed Petrochemical Holding Company (MPHC), Qatar Industrial Manufacturing Company (QIMC) and Turkiye’s Atlas Yatirim Planlama to create a new entity called Qatar Salt Products Company (QSalt).
QSalt will build a salt production plant in the Um Al-Houl area of Qatar at an estimated cost of $275m. MPHC will be the largest shareholder in QSalt with a 40% stake, while QIMC and Atlas Yatirim Planlama will hold a 30% stake each. QatarEnergy subsidiary Qapco and MPHC subsidiary Qatar Vinyl Company (QVC) will operate the facility.
Qapco is an 80:20 joint venture of Industries Qatar and France’s TotalEnergies. QatarEnergy, in turn, owns the majority 51% stake in Industries Qatar.
MPHC, in which QatarEnergy holds the majority 57.85% stake, owns a 55.2% stake in QVC.
The new plant in Um Al-Houl will produce industrial salts essential for the petrochemicals industry, along with bromine, potassium chlorides and demineralised water, which will be produced at a later stage, “contributing to product diversification and economic growth”, QatarEnergy said.
The plant will have a production capacity of 1 million t/y, and will “significantly reduce Qatar’s reliance on imported raw materials, addressing the current import of approximately 850,000 tonnes [a year] of table and industrial salts annually”.
This facility will utilise wastewater from reverse osmosis desalination units, transforming waste from desalination processes into a valuable resource.
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Adnoc funnels billions into boosting gas processing15 October 2026

Abu Dhabi National Oil Company (Adnoc Group) is accelerating investment in gas processing and associated downstream infrastructure as demand in the UAE rises and the government prioritises lower-carbon energy growth.
Rising gas consumption in the UAE is being driven by rapid population growth, greater household electrification, expanding industrial bases and demand from gas-intensive downstream segments such as petrochemicals, fertilisers and metals.
Power generation and water desalination are also key sources of demand, while new industrial zones – as well as data centres supporting the expansion of artificial intelligence (AI) use in the country – add further baseload requirements.
Adnoc Gas, Adnoc Group’s gas processing subsidiary, is leading the UAE’s push to expand gas processing capacity and is executing a major capital expenditure (capex) programme worth $28bn over 2026-30.
As part of that capex plan, Adnoc Gas achieved final investment decision (FID) on the second and third phases of its Rich Gas Development (RGD) programme earlier this year.
Adnoc Gas awarded $8.2bn of engineering, procurement and construction (EPC) contracts for the second and third phases of the RGD programme. These relate to the construction of a new gas processing train at the Habshan complex and a natural gas liquids fractionation train at the Ruwais gas processing facility, respectively.
Adnoc Gas officially announced the awards, saying it selected China-based Wison Engineering for RGD phase 2 under a $3.9bn contract, while Italy’s Tecnimont was awarded the $4.3bn phase 3 contract.
Adnoc Gas has also reiterated its $5bn capex for the first phase of the RGD scheme, which is under construction. The company awarded $5bn of engineering, procurement and construction management contracts in three tranches for phase 1 of the RGD programme in June last year, marking the company’s largest-ever capital investment.
Across all three phases, Adnoc Gas has committed a total of $13.2bn to the RGD programme.
Bab Gas Cap development
Looking ahead, Adnoc Gas is advancing towards FID on the estimated $8bn Bab gas cap development. The project will process up to 1.85 billion cubic feet a day (cf/d) of raw feed gas once Adnoc Group begins extracting reserves from four underdeveloped onshore reservoirs at the Bab field: Thammama A, B and H (projected to yield a combined 1.45 billion cf/d) and Thammama F (projected at 396 million cf/d).
Because existing trains at the Habshan complex cannot accommodate these supplementary volumes, the project entails building a processing plant approximately 170 kilometres from Abu Dhabi city, alongside pipeline networks and ancillary units.
Adnoc Gas has split the EPC scope into four packages, with technical bids due on 16 November:
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- Package 3: Pipeline network
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Four contractor consortiums prequalified to bid for the main contracts:
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Gas pipeline investments
Adnoc Group continues to invest in projects to enhance its gas transmission networks across the UAE, following its $3.5bn-plus capex on the Estidama programme earlier this decade to expand its sales-gas network in the country.
Adnoc Gas recently awarded the main contract for a project to build a new pipeline that will supply gas from the Habshan scraper launcher station at its Habshan gas compression complex in Abu Dhabi to the Al-Nouf customer receiving station, for delivery to Emirates Water & Electricity Company (Ewec).
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Adnoc Gas awarded the EPC contract for the project to India-based Kalpataru Projects International.
Separately, Adnoc is moving ahead with plans to build an oil pipeline network that will transport crude from its main offshore oil processing islands in the Gulf to its onshore crude export terminal at Jebel Dhanna, Abu Dhabi.
The planned network will source crude from Zirku Island and Das Island, where Adnoc gathers and treats oil produced at Abu Dhabi’s offshore fields, among other processing hubs, and transport it about 300km inland to the Jebel Dhanna terminal.
The proposed pipelines will eventually connect to the West-East crude pipeline network currently being built from Jebel Dhanna to the emirate of Fujairah, which is expected to be commissioned in 2027.
Boosting chemicals output
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Morocco extends deadline for El-Menzel pumped-storage plant15 October 2026
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The new deadline is 25 November. Bids were previously due on 28 October.
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Three consortiums were subsequently prequalified to bid for the main contract. These include:
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- Sinohydro (China) / Andritz Hydro (Austria)
- Webuild (Italy) / Dongfang Electric International Corporation (China)
The project aims to support Morocco’s renewable energy programme and help the country reach its target of sourcing 52% of its energy mix from renewables by 2030. It is being financed by the African Development Bank and Germany’s KfW Development Bank.
One already operates the 464MW Afourer and 350MW Abdelmoumen pumped-storage stations, while the 300MW Ifahsa project is under development.
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Contractors given extension on Riyadh airport aviation complex15 October 2026

Contractors have been given an extension until 19 November to submit proposals for an estimated SR3bn ($817m) contract to build an aviation complex within the King Salman International airport master development in Riyadh.
Government-owned aviation organisation Saudi Royal Aviation (SRA) tendered the contract in August, with an initial bid submission deadline of 8 October.
Phase one of the programme comprised the concept design stage, which the design consultant has completed.
SRA is now seeking to deliver the second phase, which covers design development, detailed design, procurement, construction, testing, commissioning and close-out of the works.
The scope covers 30 landside buildings, including 16 screening areas and gates, plus 15 airside buildings, including four gates.
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Project scale
The King Salman International airport project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
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Saudi Arabia plans to invest significantly in its aviation sector. The Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
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KBR wins Aramco offshore engineering services contract15 October 2026
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Saudi Aramco has awarded US-headquartered KBR a contract to provide engineering services to support facility upgrades across the Marjan offshore field in Gulf waters.
Under the contract, awarded under Aramco’s existing general engineering services-plus (GES+) agreement with KBR, the US firm will provide engineering and project execution services to support key offshore processing, gas compression and power infrastructure facilities within the Marjan field.
The project is expected to help maintain the Marjan field’s production capacity in line with recent field developments, KBR said in a statement.
It is also expected to advance associated gas processing capabilities and strengthen the long-term performance of critical offshore assets through the integration of digital technologies, automation and power system enhancements, the Houston-based company added.
KBR’s engineering services will specifically target upgrades to gas-oil separation plants (GOSPs) 2 and 3 at the Marjan offshore oil field development, a source told MEED.
KBR is expected to execute the engineering work primarily from its offices in Houston and Al-Khobar.
The Marjan offshore oil field, on Saudi Arabia’s eastern coast, was discovered in 1967 and began production in 1973.
In 2019, Aramco committed an estimated $15bn in capital expenditure for a major infrastructure upgrade at the field under the Marjan increment programme. The project aims to increase the field’s oil production capacity by 300,000 barrels a day (b/d) of Arabian Medium crude oil to 800,000 b/d, process 2.5 billion cubic feet a day of gas, and produce an additional 360,000 b/d of ethane and natural gas liquids.
The Marjan increment programme consists of about 20 engineering, procurement and construction (EPC) packages. The scope of work mainly involves a new GOSP and 24 offshore oil, gas and water-injection platforms.
Since launching the Marjan increment programme, the Saudi energy giant has continued investing billions to maintain and upgrade infrastructure at the Marjan field.
Aramco also plans to maintain steady capex in the future to sustain oil and gas production at the Marjan field development over the long term.
ALSO READ: Consortium wins Safaniya field onshore facilities project
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/20621733/main.jpg