meed-logo

line1 line2 line3
SIGN IN / REGISTER

Region advances LNG projects with pace

30 August 2024

 

Global liquefied natural gas (LNG) liquefaction capacity is expected to more than double by 2028, potentially increasing from 473 million tonnes a year (t/y) in 2023 to 968 million t/y in 2028 through new build and expansion projects, according to a recent report by GlobalData.

North America dominates globally among the regions, in terms of new build and expansion liquefaction capacity growth, contributing around 54% of the total global capacity additions or 268 million t/y by 2028, GlobalData says in the report. 

The Middle East comes in at second position, followed by the Former Soviet Union, with capacity additions of 78 million t/y and 71 million t/y, respectively. 

Since the start of this decade, there has been a sharp increase in investments in the Middle East and North Africa (Mena), and particularly in the Gulf region, in projects to expand LNG production. Capital expenditure close to $45bn has been made by Mena hydrocarbon producers in the past 10 years on various LNG projects, mainly for output capacity building, MEED Projects data shows. Almost three-fourths of that spending took place in the past four years, and predominantly in the GCC.

A desire to cater to the steady growth expected in global LNG demand and dominate the global supply market is fuelling the wave of investments into large-scale production capacity expansions and terminal construction by Gulf players.

Qatar guns for top spot

Qatar has been jostling with the US and Australia for the status of being the largest LNG provider to the world for many years now. The three countries have all clinched the top spot, only to be unseated by another the very next month.

However, when its mammoth North Field LNG expansion programme begins to come online later this decade, Qatar will be able to consolidate its position as the world’s largest producer and exporter of LNG in the long term.

State enterprise QatarEnergy is understood to have spent almost $30bn on the two phases of the North Field LNG expansion programme, North Field East and North Field South, which will increase its LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028. Engineering, procurement and construction (EPC) works on the two projects are making steady progress.

QatarEnergy awarded the main EPC contracts in 2021 for the North Field East project, which is projected to increase LNG output to 110 million t/y by 2025. The main $13bn EPC package, which covers the engineering, procurement, construction and installation of four LNG trains with capacities of 8 million t/y, was awarded to a consortium of Japan’s Chiyoda Corporation and France’s Technip Energies in February 2021.

QatarEnergy awarded the $10bn main EPC contract for the North Field South LNG project, covering two large LNG processing trains, to a consortium of Technip Energies and Lebanon-based Consolidated Contractors Company (CCC) in May last year.

When fully commissioned, the first two phases of the North Field LNG expansion programme will contribute a total supply capacity of 48 million t/y to the global LNG market.

Qatar is, however, not stopping at that. QatarEnergy, in February, announced a third phase of its North Field LNG expansion programme. To be called North Field West, the project will further increase QatarEnergy’s LNG production capacity to 142 million t/y when it is commissioned by 2030.

The North Field West project will have an LNG production capacity of 16 million t/y, which is expected to be achieved through two 8 million t/y LNG processing trains, based on the two earlier phases of QatarEnergy’s LNG expansion programme. The new project derives its name from the western zone of Qatar’s North Field offshore gas reserve, from where it will draw feedstock for LNG production.

Oman moves up the ladder

Oman has been supplying LNG to customers, mainly in Asia, for many years now. Majority state-owned Oman LNG operates three gas liquefaction trains at its site in Qalhat, with a nameplate capacity of 10.4 million t/y. Due to debottlenecking, the company’s complex now has a production capacity of about 11.4 million t/y.

As recently as late July, the Omani government announced that Oman LNG will build a new train at its Qalhat LNG production complex in Sur, located in the sultanate’s South Al-Sharqiyah governorate. Oman LNG will perform the preliminary engineering study for the planned LNG train.

The LNG train will have an output capacity of 3.8 million t/y. When commissioned in 2029, it will increase Oman LNG’s total production capacity to 15.2 million t/y.

Aside from Oman LNG, France’s TotalEnergies has now committed itself to becoming a major LNG supplier in the sultanate. In partnership with state energy holding conglomerate OQ, TotalEnergies achieved final investment decision earlier this year for a major LNG bunkering and export terminal in Oman’s northern city of Sohar.

TotalEnergies leads a joint venture named Marsa LNG, which is the Sohar LNG terminal project developer. Marsa LNG was formed in December 2021 through an agreement between TotalEnergies and the sultanate’s state energy holding company OQ. The partners own 80% and 20% stakes, respectively.

Marsa LNG intends to develop an integrated facility consisting of upstream units that will draw natural gas feedstock from TotalEnergies’ hydrocarbon concessions in the sultanate, particularly from Blocks 10 and 11; an LNG bunkering terminal and storage units located in Sohar port; and a solar photovoltaic plant to power the LNG terminal.

The Marsa LNG terminal will have a single train with the capacity to process about 1 million t/y of natural gas into LNG. The bunkering terminal will mainly supply LNG as a marine fuel to vessels. Marsa LNG has picked France-based Technip Energies to perform EPC works on the estimated $1bn LNG terminal project.

Adnoc gives shape to ambitions

Abu Dhabi National Oil Company (Adnoc) has been a relatively smaller LNG producer in comparison to its GCC peers. Adnoc Group subsidiary, Adnoc Gas, operates three large gas processing trains on Das Island. At its Das Island terminal, Adnoc Gas has an LNG liquefaction and export capacity of about 6 million t/y. The first and second trains were commissioned in the 1970s and have a combined output capacity of 2.9 million t/y. The third train came into operation in the mid-1990s, with a capacity of 3.2 million t/y.

Adnoc Gas’ LNG production and export capability, however, will receive a major fillip when a new greenfield terminal it has committed to developing in Ruwais, Abu Dhabi, comes online before the end of this decade. The planned LNG export terminal in Ruwais will have the capacity to produce about 9.6 million t/y of LNG from two processing trains, each with a capacity of 4.8 million t/y.

Adnoc awarded the full EPC contract and achieved the final investment decision for the LNG terminal complex in June. A consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy was awarded the EPC contract, worth $5.5bn.

Jordan takes a step forward

Jordan imports more than 90% of its oil, gas and refined product needs and therefore has a strong economic case for developing projects to boost its domestic hydrocarbon infrastructure, particularly for gas.

The country recently took a key step forward when Aqaba Development Corporation awarded the main EPC contract in August for a project to develop the Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah LNG onshore regasification facility at the port of Aqaba.

The contract was won by a consortium of Singapore-based AG&P and South Korea’s Gas Entec, along with their local partner, Jordan’s Issa Haddadin.

In a statement, Gas Entec said that the facility will have the capacity to process 720 million cubic feet a day of natural gas. 

“Jordan relies heavily on natural gas for its power and industrial needs, but faces challenges with supply reliability,” Gas Entec said.

“The new LNG terminal will provide Jordan with the flexibility to access LNG from various global suppliers, ensuring a stable and secure energy source.”

Global LNG demand set for steady growth

https://image.digitalinsightresearch.in/uploads/NewsArticle/12432924/main.gif
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai seeks contractors for Metro Gold Line

    20 May 2026

     

    Register for MEED’s 14-day trial access 

    Dubai's Roads & Transport Authority (RTA) has invited contractors to express interest in a contract to build the new Gold Line, as part of its expansion of the Dubai Metro network.

    The notice was issued in mid-May with a submission deadline of 13 June.

    Dubai officially announced the launch of the new Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project will cost about AED34bn ($9.2bn).

    The Gold Line will increase the total length of the Dubai Metro network by 35%.

    The project is scheduled for completion in September 2032.

    The Gold Line will be a fully underground network covering more than 42 kilometres, with 18 stations.

    It will pass through 15 areas in Dubai, benefiting 1.5 million residents.

    The project is expected to provide connectivity to over 55 under-construction real estate development projects.

    The Gold Line will start at Al-Ghubaiba in Bur Dubai and end at Jumeirah Golf Estates.

    It will be connected to Dubai Metro’s existing Red and Green lines and will integrate with the Etihad Rail passenger line.

    The contractor will be responsible for the design and build of all civil works, electromechanical equipment, rolling stock and rail systems.

    The selected contractor will also be required to assist in the systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design, stage two covers preliminary design, stage three covers the preparation of tender documents, stage four encompasses construction supervision and stage five covers the defects and liability period.

    MEED’s May 2026 report on the UAE includes:

    > COMMENT: Conflict tests UAE diversification
    > GVT &: ECONOMY: UAE economy absorbs multi-sector shock
    > BANKING: UAE banks ready to weather the storm
    > ATTACKS: UAE counts energy infrastructure costs
    > UPSTREAM: Adnoc builds long-term oil and gas production potential
    > DOWNSTREAM: Adnoc Gas to rally UAE downstream project spending
    > POWER: Large-scale IPPs drive UAE power market
    > WATER: UAE water investment broadens beyond desalination
    > CONSTRUCTION: War casts shadow over UAE construction boom
    > TRANSPORT: UAE rail momentum grows as trade routes face strain

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16919605/main.png
    Yasir Iqbal
  • Iraq oil exports drop by 89% in April

    20 May 2026

    Register for MEED’s 14-day trial access 

    Iraq exported 10 million barrels of crude in April, an 89% drop compared to the 93 million barrels that were exported the month before the Iran conflict, according to the country’s new Oil Minister, Basim Mohammed Khudair.

    Oil exports generated just over $1bn in April, down from $6bn in February, according to a separate statement from the ministry.

    The decline in export volumes and revenues is due to the disruption to shipping through the Strait of Hormuz in the wake of the US and Israel’s war with Iran, which started on 28 February.

    The country is exporting crude by sea through the Strait of Hormuz, as well as from Kirkuk through the Iraq-Turkiye Pipeline (ITP).

    Iraq has plans to increase flows through the ITP to 500,000 barrels a day (b/d), according to Khudair.

    The minister said an increase in crude output from the north of the country depends on the return of global oil companies to the Kurdistan region.

    “The government is treating the energy file in the Kurdistan region as a priority,” he said.

    Many international companies in the Iraqi Kurdistan region suspended their operations in the wake of the US and Isreal attacking Iran on 28 February.

    Khudair said Iraq is currently producing a total of 1.4 million b/d of crude.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16913742/main.jpg
    Wil Crisp
  • Iraq risks defaulting on payments for $10bn oil project

    20 May 2026

     

    Register for MEED’s 14-day trial access 

    Iraq’s state-owned upstream operator Basra Oil Company (BOC) risks defaulting on payments for the $27bn Gas Growth Integrated Project (GGIP) due to fallout from the US and Israel’s war with Iran.

    Phase one of the GGIP is expected to be worth about $10bn and BOC holds a 30% stake in the project, while its partners France’s TotalEnergies and QatarEnergy hold 45% and 25%, respectively.

    The consortium formalised the investment agreement with the Iraqi government in September 2021.

    As part of the investment agreement, BOC was expected to make payments to fund the development of the project and the money from these payments was expected to come from oil revenues.

    Due to disruption to the shipping of oil via the Strait of Hormuz in the wake of the US and Israel’s war on Iran, which started on 28 February, BOC’s revenues from oil have declined significantly, impacting the company’s ability to provide funds for the project.

    BOC could default on payments for the project within four to six months if disruption to shipping through the Strait of Hormuz continues, according to industry sources.

    BOC has already informed TotalEnergies and QatarEnergy that it is going though liquidity problems because it is unable to export normal volumes of oil, sources said.

    When contacted about the project’s financial issues, TotalEnergies referred MEED to comments made by the company’s chief executive Patrick Pouyanne on 29 April.

    He said: “We have maintained a team in Iraq, in Basra, of 20 TotalEnergies’ staff, who are supervising the progress of the GGIP projects on the ground, with around 5,000 workers there.”

    He added: “This conflict immediately has some impact on TotalEnergies' operations. And we have been, by the way, very transparent, since day one, to disclose all the impacts on our activities.”

    TotalEnergies declined to answer questions about potential changes to the schedule for the GGIP and whether there are alternative plans in place that provide for a situation where BOC could not deliver agreed funds.

    GGIP masterplan

    The GGIP programme is focused on developing four major projects in Iraq.

    These are:

    • The Common Seawater Supply Project (CSSP)
    • The Ratawi gas processing complex
    • A 1GW solar power project for Iraq’s electricity ministry
    • A field development project at Ratawi, known as the Associated Gas Upstream Project (AGUP)

    The CSSP is designed to support oil production in Iraq’s southern oil and gas fields – mainly Zubair, Rumaila, Majnoon, West Qurna and Ratawi – by delivering treated seawater for injection, a method used to boost crude recovery rates and improve long-term reservoir performance.

    China Petroleum Engineering & Construction Corporation (CPECC) won a $1.61bn contract in May to execute engineering, procurement and construction (EPC) work for the gas processing complex at the Ratawi field development.

    CPECC’s project team based in its Dubai office is performing detailed engineering work on the project.

    In August last year, TotalEnergies awarded China Energy Engineering International Group the EPC contract for the 1GW solar project at the Ratawi field. A month later, QatarEnergy signed an agreement with TotalEnergies to acquire a 50% interest in the project.

    The 1GW Ratawi solar scheme will be developed in phases, with each phase coming online between 2025 and 2027. It will have the capacity to provide electricity to about 350,000 homes in Iraq’s Basra region.

    The project, consisting of 2 million bifacial solar panels mounted on single-axis trackers, will include the design, procurement, construction and commissioning of the photovoltaic power station site and 132kV booster station.

    Separately, in June, TotalEnergies awarded China Petroleum Pipeline Engineering an EPC contract worth $294m to build a pipeline as part of a package known as the Ratawi Gas Midstream Pipeline.

    Also, TotalEnergies awarded UK-based consultant Wood Group a pair of engineering framework agreements in April 2025, worth a combined $11m, under the GGIP scheme.

    The agreements have a three-year term under which Wood will support TotalEnergies in advancing the AGUP.

    One of the aims of the AGUP is to debottleneck and upgrade existing facilities to increase production capacity to 120,000 barrels a day of oil on completion of the first phase, according to a statement by Wood.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16913732/main.jpg
    Wil Crisp
  • Contractors submit best offers for major Adnoc Onshore project

    20 May 2026

     

    Register for MEED’s 14-day trial access 

    Contractors have submitted revised commercial offers to Adnoc Onshore, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), for a project involving the tie-in of several wells in the Bab and North East Bab oil field developments in Abu Dhabi.

    Located 84 kilometres southwest of the city of Abu Dhabi, the Bab field has been in production since 1960 and is the emirate’s first oil-producing asset. The North East Bab cluster comprises the Al-Nouf, Rumaitha and Shanayel fields. 

    The One Tie-In project at the Bab and North East Bab field developments is integral to Adnoc Onshore’s contribution to its parent company Adnoc Group’s objective of achieving an oil production capacity of 5 million barrels a day (b/d) by 2027 – a campaign known as Accelerated Integrated Programme 5. The Abu Dhabi energy giant currently has a spare capacity of 4.85 million b/d.

    According to sources, the following contractors are understood to be among those bidding for the project:

    • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
    • Jereh (China)
    • Kalpataru Projects International (India)
    • Matrix Construction (UAE)
    • Robt Stone Middle East (UAE)
    • Target Engineering Construction Company (UAE)

    Adnoc Onshore is understood to have started the tendering process for the Bab and North East Bab One Tie-In project last year, with contractors submitting technical and commercial bids this year.

    Following the evaluation of bids, Adnoc Onshore sought best commercial offers from the bidders, which contractors submitted earlier in May, sources told MEED.

    Adnoc Onshore’s budget for the project is estimated to be $1.2bn, according to sources.

    The broad scope of work on the project covers residual engineering, procurement of any material not part of free issued material, construction, site survey, installation, inspection and testing, pre-commissioning and commissioning support, to include new wellsite facilities, including a new mini-pad, well bay and cluster at the Bab and North East Bab field developments.

    Adnoc Onshore has divided the scope of work on the Bab and North East Bab One Tie-In project into 18 packages, which are as follows:

    Bab asset

    Package 1:

    Off-pad – Demolition and construction of existing oil producing wells as per high hydrogen sulphide (H2S) standard package.

    Package 2:

    Off-pad – Construction of new oil producing wells as per high H2S standard package.

    Package 3:

    On-pad – Demolition and construction of existing oil producing wells as per high H2S standard package.

    Package 4:

    On-pad – Construction of new oil producing wells as per high H2S standard package.

    Package 5:

    On-pad – Construction of facilities at mini-pad, pad or well bay for tie-in new oil producing wells as per high H2S standard package.

    Package 6:

    Off-pad – Construction of new oil producing wells (low H2S) as per standard package.

    Package 7:

    • Construction of water supply, disposal and injection wells as per standard package;
    • Construction of off-pad water injection wells;
    • Construction of on-pad water injection wells and water injection manifold.

    Package 8:

    Off-Pad – Digitalisation of existing wells.

    Package 17:

    • Well bay: On-pad wells, flowline, common facilities (PSS, CI skid, WHCP), overhead line;
    • Mini-pad: On-pad wells, transfer line, blow down header, common facilities (PSS, manifold-OIL, MPFM, CI SKID, WHCP, drain oil network, pig launcher, receiver, potable water system), overhead line;
    • Off-pad: Gas lift oil producer well;
    • On-pad: Gas lift oil producer;
    • Electrical submersible pump (ESP) well: on-pad;
    • ESP well: off-pad.
    North East Bab asset

    Package 9:

    Cluster-based – Construction of new oil producing wells at Al-Nouf.

    Package 10:

    Cluster-based – Construction of new water alternating gas (WAG) injection wells at Al-Nouf.

    Package 11:

    Remote – Construction of oil producing wells.

    Package 12:

    Remote – Construction of WAG wells.

    Package 13:

    Cluster-based – Construction of oil producing wells at Rumaitha and Shanayel.

    Package 14:

    Cluster-based – Construction of WAG wells at Rumaitha and Shanayel.

    Package 15:

    Cluster-based – Construction and/or modifications of oil production/test manifold, gas injection/gas test manifold, let down gas manifold well head control panel, gas supply connection for injection, gas supply connection for gas lift. Chemical injection skid, water injection manifold, maintenance flare package. Installation of new pig traps, installation of hot tap and extension of cluster plot.

    Package 18:

    • Al-Nouf cluster: Common facilities (ETR, ITR, vent stack, overhead line, oil manifold, test manifold, gas lift manifold, drain oil tank, common pipe rack, etc.), gas lift oil producer wells, WAG injection wells;
    • Rumaitha cluster: Common facilities (ETR, ITR, vent stack, overhead line, oil manifold, test manifold, gas lift manifold, drain oil tank, common pipe rack, etc.), gas lift oil producer wells, WAG injection wells.
    Bu Hasa asset

    Package 16:

    Off-pad – Digitalisation of existing wells.

    Adnoc Onshore is Adnoc Group’s largest oil-producing subsidiary, accounting for 2 million b/d and about 7 billion cubic feet a day of associated gas production from four main onshore hydrocarbons field developments in Abu Dhabi – namely Bab, Bu Hasa, North East Bab and South East.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16911726/main.jpg
    Indrajit Sen
  • Majid Al-Futtaim to develop $17bn Dubai South community

    19 May 2026

    Register for MEED’s 14-day trial access 

    Dubai-based developer Majid Al-Futtaim has signed an agreement with Dubai South to develop a AED62bn ($17bn) mixed-use community in the Dubai South area of the city.

    The 22-million-square-foot development will include residential and retail components, anchored by a shopping mall.

    Further project details and a construction timeline have yet to be disclosed.

    In October last year, Majid Al-Futtaim announced new investments in Saudi Arabia and the UAE.

    It signed an agreement with Saudi gigaproject developer Diriyah Company to introduce a Vox Cinemas multiplex and seven retail brands to Diriyah Square, part of the Diriyah project in Riyadh.

    The retail outlets will cover approximately 5,534 square metres (sq m), while Vox Cinemas will occupy about 7,632 sq m.

    The developer will bring international brands to Diriyah, including Shiseido, Lululemon, Crate & Barrel, Abercrombie & Fitch, AllSaints, CB2 and Hollister.

    In Dubai, Majid Al-Futtaim also announced plans to launch Ghaf Woods Mall within its Ghaf Woods residential community in Dubailand. 

    According to an official statement, once completed, Ghaf Woods Mall will be the 30th mall in the developer’s portfolio and its 19th in the UAE.

    In April last year, Majid Al-Futtaim revealed plans to develop a mixed-use project in Riyadh at an estimated cost of about SR17.5bn ($4.6bn).

    According to media reports, the development will cover an area of 850,000 sq m and will include residential, commercial, office and entertainment components.

    In the same month, the firm said that it will invest AED5bn ($1.4bn) to upgrade Dubai’s Mall of the Emirates with new retail, dining, wellness and entertainment facilities.

    According to an official statement, the 20,000 sq m expansion will add 100 new stores.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16909504/main5915.jpg
    Yasir Iqbal