meed-logo

line1 line2 line3
SIGN IN / REGISTER

QatarEnergy tenders urea facility expansion

14 August 2025

QatarEnergy has issued the main tender for engineering, procurement and construction (EPC) works on a planned project to expand its low-carbon ammonia and urea potential by building a new production complex in Qatar’s Mesaieed Industrial City.

The planned blue ammonia and urea production facility will have a total output capacity of 6.4 million tonnes a year (t/y) and is understood to be the eighth expansion phase of its fertiliser production complex located in Mesaieed, MEED reported in April.

QatarEnergy issued the tender for EPC works on the blue ammonia and urea production facility expansion project in late July, according to sources.

The state energy giant has set a deadline of 15 January 2026 for the submission of technical bids for the project, sources said. It has not yet set a commercial bid submission deadline.

The Qatari state enterprise held a meeting with contractors in March to lay out plans for the project, MEED previously reported. At the time, the company was expected to issue the project’s main EPC tender in June.

The following contractors, among others, are understood to have been invited by QatarEnergy to bid for the blue ammonia and urea production facility expansion project:

  • Tecnimont (Italy) / Larsen & Toubro Energy Hydrocarbon (India)
  • Hyundai Engineering & Construction Company (South Korea) / CTCI (Taiwan) / Toyo (Japan)
  • Samsung E&A (South Korea) / Thyssenkrupp Industrial Solutions (Germany) / Consolidated Contractors Company (Greece/Lebanon)
  • Saipem (Italy)

The role of licensed technologies is important to the operations of the facility, so QatarEnergy has stipulated that contractors bring on board technology providers as part of the bidding process.

QatarEnergy expects to take a final investment decision on the project in the second quarter of 2026 and award the EPC contract in the third quarter of next year, sources told MEED.

The basic scope of EPC works on the blue ammonia and urea production facility expansion project is understood to include the following:

  • Urea and ammonia plants to produce 6.4 million t/y of urea
  • Urea formaldehyde plants
  • Nitrogen production units
  • Power unit for supply of 400MW
  • Units for the supply of 415 million cubic feet a day of sweet gas
  • Extension and additional bulk halls storage for urea
  • Export conveyors to Jetty 2
  • Three new urea berths on Jetty 2
  • New ammonia tank with storage capacity of 30,000 metric tonnes
  • Relocation of ammonia loading facilities
  • Desalination plant
  • Seawater supply and return
  • Logistics and office buildings

Last September, QatarEnergy announced its aim to build four new urea production lines at Mesaieed Industrial City, which will increase Qatar’s urea output capacity by 106%.

The production lines will raise Qatar’s production of urea – a key ingredient in fertilisers – from 6 million t/y to more than 12.4 million t/y.

Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs and president and CEO of QatarEnergy, said the first production line will enter operations before 2030.

ALSO READ: Contractors submit revised prices for QatarEnergy NGL train project

“When we looked at the market for urea in the future, with the growth of humanity today, with 1.5-2 billion people that will be joining us in the next 20-30 years, the urea requirement for food production will be exponentially increasing,” Al-Kaabi said at the time.

“Developing this project in Mesaieed Industrial City will ensure the optimum utilisation of the excellent existing infrastructure for the petrochemicals and fertiliser industries, including the city’s export port, which is one of the largest fertiliser and petrochemicals export facilities in the [Middle East and North Africa] region.

“It will also establish Mesaieed as the urea production capital of the world,” he added.

The planned expansion of its blue ammonia and urea production capability comes as QatarEnergy is making progress with its estimated $1.2bn Ammonia-7 project.

The under-construction facility in Mesaieed will have a capacity of 1.2 million t/y of blue ammonia, making it the world’s largest blue ammonia facility.

The complex will also have an additional unit for carbon dioxide injection and storage, with a capacity of 1.5 million t/y. QatarEnergy will provide the new plant with more than 35MW of electricity from the solar power plant that is also being built in Mesaieed Industrial City.

QatarEnergy began work on the blue ammonia production project in September 2022, when its subsidiaries Qatar Fertiliser Company (Qafco) and QatarEnergy Renewable Solutions signed an agreement to develop the complex.

In addition to signing the agreement for the development of the facility, the operators also formally awarded the project’s EPC contract to a consortium of Germany’s Thyssenkrupp Uhde and Greece/Lebanon-headquartered Consolidated Contractors Company.

The value of the EPC contract is $1bn, .

The facility is due to start operations in the first quarter of 2026 and will be operated by Qafco as part of its integrated facilities.

ALSO READ: QatarEnergy selects contractors for Bul Hanine oil field project

READ THE AUGUST 2025 MEED BUSINESS REVIEW – click here to view PDF

Gulf heads into a new era of aviation; Maghreb’s resilience rises despite global pressures; GCC banks expand issuance amid demand

Distributed to senior decision-makers in the region and around the world, the August 2025 edition of MEED Business Review includes:

> MAGHREB MARKET FOCUS: Maghreb pushes for stability
To see previous issues of MEED Business Review, please click here
https://image.digitalinsightresearch.in/uploads/NewsArticle/14463053/main1857.jpg
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Regional rail industry emerges

    8 December 2025

    Commentary
    Colin Foreman
    Editor

    Read the December issue of MEED Business Review

    The GCC is experiencing a fundamental shift in its approach to rail infrastructure, as it moves from standalone projects to a self-sustaining regional industry. The transition is evident as local, national and regional projects advance across the region.

    The first wave of metro systems, in Dubai, Doha, and most recently, Riyadh, have reported stronger-than-expected ridership and demonstrated the viability of mass transit in the Gulf.

    Extensions to those networks are planned or under way, including Dubai’s Blue and Gold lines and Riyadh’s Line 2, alongside planned metros elsewhere such as Muscat and Bahrain.

    Projects are also planned and already being delivered at the national level. The UAE’s Etihad Rail and Saudi Arabian Railways are leading most of these efforts. The region’s first cross-border project is also progressing with the Hafeet Rail scheme linking the UAE and Oman.

    Other cross-border schemes are planned, including high speed links connecting Riyadh with Doha and Kuwait City, and rail links for Bahrain across causeways to Saudi Arabia and Qatar. The ultimate ambition is a GCC Rail network – a project that was reinvigorated by the Al-Ula accords in 2021.

    Sustained, simultaneous activity across the GCC is fostering the development of an indigenous regional rail industry. Rather than being executed as isolated endeavours, projects are creating ongoing demand for expertise, personnel and resources within the region.

    Project delivery capability will be complemented by the establishment of crucial ancillary services, including fabrication and servicing facilities.

    These operations will shift the GCC from a lucrative market for international contractors to a regional hub for the rail industry, capable of servicing and sustaining its growing network.

    READ THE DECEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Prospects widen as Middle East rail projects are delivered; India’s L&T storms up MEED’s EPC contractor ranking; Manama balances growth with fiscal challenges

    Distributed to senior decision-makers in the region and around the world, the December 2025 edition of MEED Business Review includes:

    > BAHRAIN MARKET FOCUS: Manama pursues reform amid strain
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15213797/main.gif
    Colin Foreman
  • Visa agrees to support digital payments in Syria

    5 December 2025

    Visa and the Central Bank of Syria have agreed on a strategic roadmap that will allow the US-based card and digital payments company to begin operations in Syria and support the development of a modern digital payments system.

    Under the agreement, Visa will work with licensed Syrian financial institutions under a phased plan to establish a secure foundation for digital payments.

    The early stages will involve Visa supporting the central bank in issuing Europay, Mastercard and Visa (EMV)-compliant payment cards and enabling tokenised digital wallets – bringing the country in line with internationally interoperable standards.

    Visa will also provide access to its platforms, including near-field communication (NFC) and QR-based payments, invest in local capacity building and support local entrepreneurs seeking to develop solutions leveraging Visa’s global platform.

    “A reliable and transparent payment system is the bedrock of economic recovery and a catalyst that builds the confidence required for broader investment to flow into the country,” noted Visa’s senior VP for the Levant, Leila Serhan. “This partnership is about choosing a path where Syria can leapfrog decades of legacy infrastructure development and immediately adopt the secure, open platforms that power modern commerce.”

    The move marks one of the most significant steps yet in Syria’s slow and uneven return to the formal global financial system and carries implications that reach beyond just payments technology.

    It lays the groundwork for overturning more than a decade of financial isolation in which Syria has operated largely outside global banking and settlement networks.

    Visa’s entry will not erase all existing barriers – as many restrictions remain in force and will continue to shape what is practically possible – but its support signals a reopening of channels that could smooth Syria’s reintegration into financial networks.

    The involvement of the US-based payments provider is also a further tacit sign of the US government’s enthusiastic bear hug of the new post-Assad Syrian government under President Ahmed Al-Sharaa.

    For investors assessing long-term opportunities, the presence of a globally recognised payments operator will provide reassurance that Syria’s financial system is returning to international norms, and the security and transparency that comes with it.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15207198/main3225.gif
    MEED Editorial
  • Meraas announces next phase of Nad Al-Sheba Gardens

    5 December 2025

    Dubai-based real estate developer Meraas Holding, which is part of Dubai Holding, has announced the eleventh and final phase of its Nad Al-Sheba Gardens residential community in Dubai.

    It includes the development of 210 new villas and townhouses and a school, which will be located at the northwest corner of the development.

    The latest announcement follows Meraas awarding a AED690m ($188m) contract for the construction of the fourth phase of the Nad Al-Sheba Gardens community in May, as MEED reported.

    The contract was awarded to local firm Bhatia General Contracting.

    The scope of the contract covers the construction of 92 townhouses, 96 villas and two pool houses.

    The contract award came after Dubai-based investment company Shamal Holding awarded an estimated AED80m ($21m) contract to UK-based McLaren Construction last year for the Nad Al-Sheba Gardens mall.

    The project covers the construction and interior fit-out of a two-storey mall, covering an area of approximately 12,600 square metres.

    The UAE’s heightened real estate activity is in line with UK analytics firm GlobalData’s forecast that the construction industry in the country will register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects. 

    The residential construction sector is expected to record an annual average growth rate of 2.7% in 2025-28, supported by private investments in the residential housing sector, along with government initiatives to meet rising housing demand.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206904/main.jpg
    Yasir Iqbal
  • Frontrunner emerges for Riyadh-Qassim IWTP

    5 December 2025

     

    Saudi Arabia’s Vision Invest has emerged as frontrunner for the contract to develop the Riyadh-Qassim independent water transmission pipeline (IWTP) project, according to sources.

    State water offtaker Saudi Water Partnership Company (SWPC) is preparing to award the contract for the IWTP "in the coming weeks", the sources told MEED.

    The project, valued at about $2bn, will have a transmission capacity of 685,000 cubic metres a day. It will include a pipeline length of 859 kilometres (km) and a total storage capacity of 1.59 million cubic metres.

    In September, MEED reported that bids had been submitted by two consortiums and one individual company.

    The first consortium comprises Saudi firms Al-Jomaih Energy & Water, Al-Khorayef Water & Power Technologies, AlBawani Capital and Buhur for Investment Company.

    The second consortium comprises Bahrain/Saudi Arabia-based Lamar Holding, the UAE's Etihad Water & Electricity (Ewec) and China’s Shaanxi Construction Installation Group.

    The third bid was submitted by Saudi Arabia's Vision Invest.

    It is understood that financial and technical bids have now been opened and Vision Invest is likely to be awarded the deal.

    The Riyadh-based investment and development company made a "very aggressive" offer, one source told MEED.

    In November, the firm announced it had sold a 10% stake in Saudi Arabia-based Miahona as part of a strategy to reallocate capital "towards new and diversified investments".

    The company did not disclose which projects the capital might be reallocated towards.

    As MEED recently reported, Vision Invest is also bidding for two major packages under Dubai's $22bn tunnels programme in a consortium with France's Suez Water Company.

    The Riyadh-Qassim transmission project is the third IWTP contract to be tendered by SWPC since 2022.   

    The first two are the 150km Rayis-Rabigh IWTP, which is under construction, and the 603km Jubail-Buraydah IWTP, the contract for which was awarded to a team of Riyadh-based companies comprising Al-Jomaih Energy & Water, Nesma Group and Buhur for Investment Company.

    Like the first two IWTPs, the Riyadh-Qassim IWTP project will be developed using a 35-year build-own-operate-transfer contracting model.

    Commercial operations are expected to commence in the first quarter of 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206609/main.jpg
    Mark Dowdall
  • Adnoc creates new company to operate Ghasha concession

    5 December 2025

    Register for MEED’s 14-day trial access 

    The board of directors of Abu Dhabi National Oil Company (Adnoc Group) has approved the establishment of a new company to operate the Ghasha offshore sour gas concession in Abu Dhabi waters.

    The decision to create the new entity, to be called Adnoc Ghasha, was taken during a recent meeting of Adnoc Group’s board in Abu Dhabi, which was chaired by Sheikh Mohamed Bin Zayed Al-Nahyan, UAE President and Ruler of Abu Dhabi.

    Adnoc Group owns and operates the Ghasha concession, holding the majority 55% stake. The other stakeholders in the asset are Italian energy major Eni with a 25% stake, Thailand’s PTTEP Holding, which holds a 10% interest, and Russia’s Lukoil, owning the remaining 10% stake.

    The Ghasha concession consists of the Hail and Ghasha fields, along with the Hair Dalma, Satah al-Razboot (Sarb), Bu Haseer, Nasr, Shuwaihat and Mubarraz fields.

    Adnoc expects total gas production from the concession to ramp up to more than 1.8 billion cubic feet a day (cf/d) before the end of the decade, along with 150,000 barrels a day of oil and condensates. This target will mainly be achieved through the Hail and Ghasha sour gas development project.

    In October 2023, Adnoc and its partners awarded $16.94bn of engineering, procurement and construction (EPC) contracts for its Hail and Ghasha project – the biggest capital expenditure made by the Abu Dhabi energy company on a single project in its history.

    Adnoc awarded the onshore EPC package to Italian contractor Tecnimont, while the offshore EPC package was awarded to a consortium of Abu Dhabi’s NMDC Energy and Italian contractor Saipem.

    The $8.2bn contract relates to EPC work on offshore facilities, including facilities on artificial islands and subsea pipelines.

    The Hail and Ghasha development will also feature a plant that will capture and purify carbon dioxide (CO2) emissions for sequestration (CCS), in line with Adnoc’s committed investment for a carbon capture capacity of almost 4 million tonnes a year (t/y). The CO2 recovery plant will have a total capacity to capture and store 1.5 million t/y of emissions from the Hail and Ghasha scheme.

    Prior to reaching the final investment decision on the Hail and Ghasha project in 2023, the Ghasha concession partners, led by Adnoc, awarded two EPC contracts worth $1.46bn in November 2021 to execute offshore and onshore EPC works on the Dalma gas development project. The project will enable the Dalma field to produce about 340 million cf/d of natural gas.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15206382/main2754.jpg
    Indrajit Sen