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
  • Firms submit King Salman airport project prequalifications

    8 July 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s King Salman International Airport Development Company (KSIADC) received prequalification statements on 1 July from contractors for two new packages at King Salman International airport (KSIA) in Riyadh.

    These include the construction of a permanent East-West corridor and landside access roads serving the North and South terminals.

    The scope covers the construction of roads, bridges and tunnels.

    The client is expected to float the tenders soon.

    The latest development follows KSIADC's selection of three groups to deliver the Terminal 6 apron, taxiways and other airfield infrastructure at KSIA.

    KSIADC, which is backed by Saudi sovereign wealth vehicle the Public Investment Fund, will initially deliver the project on an early contractor involvement basis.

    In March, MEED exclusively reported that KSIADC had selected three groups for the construction of Terminal 6.

    In November last year, MEED reported that KSIADC was targeting mid-2026 to award the contract for the construction of Terminal 6.

    MEED reported in May 2025 that US firm Bechtel Corporation had been appointed as the delivery partner for the terminals at KSIA.

    According to local media reports, KSIADC’s acting CEO, Marco Mejia, said the project developer has completed the project’s masterplan.

    The reports added that Terminal 6 will boost the airport’s capacity by 40 million passengers.

    The project is expected to be delivered before the start of Expo 2030 Riyadh.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17588533/main.jpg
    Yasir Iqbal
  • WEBINAR: Saudi Giga Projects: Market Update for Q3 2026

    8 July 2026

    Webinar: Saudi Giga Projects: Market Update for Q3 2026 
    Tuesday 21 July 2026 | 11:00 AM GST  |  Register now

    Agenda:

    • Saudi projects market outlook and giga projects update
    • 2026 contract awards, project activity and market performance
    • Giga project reprioritisation, funding allocation and delivery progress
    • Key project announcements, milestones and market developments to watch
    • Major contracts awarded across construction, infrastructure and utilities
    • Upcoming tenders and contract award opportunities over the next 6–12 months
    • Geopolitical risks and their impact on project execution and investment
    • Progress across NEOM, The Red Sea, Diriyah, Qiddiya and New Murabba
    • Major non-giga project opportunities and growth sectors across Saudi Arabia
    • Short-, medium- and long-term outlook for the Saudi projects market
    • Audience Q&A

    Hosted by: Yasir Iqbal, MEED's construction editor

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17588750/main.jpg
    Yasir Iqbal
  • Genel Energy buys Egypt-focused oil company for $360m

    8 July 2026

    Register for MEED’s 14-day trial access 

    UK-listed Genel Energy has agreed to acquire Egypt-focused Capricorn Energy in a $360m all-cash deal.

    Genel said the acquisition will combine its Kurdistan production base with Capricorn’s portfolio of Egyptian oil and gas assets.

    The company also said the deal will allow it to obtain production in a country with a “well-established regulatory regime, stable contracts and attractive fiscal terms”.

    Several approvals are still required before the acquisition can be finalised.

    In a statement, Genel said: “Genel’s strategy is to build a business with resilient diversified cash flows that deliver sustainable value to shareholders.

    “The Genel board and Genel management are resolute in their belief that this can best be achieved through strategic acquisitions, which add substantial high-quality producing assets to its existing portfolio.”

    Genel’s existing oil and gas assets include its 25% non-operated working interest in the Tawke PSC in the Kurdistan Region of Iraq.

    The company said this asset generated working interest production averaging 17,520 barrels a day (b/d) of oil in 2025 and had operating costs of around $4 a barrel.

    The combined group is expected to hold reserves of 117 million barrels of oil equivalent and production of 41,003 b/d.

    Capricorn is headquartered in Edinburgh and has been listed on the London Stock Exchange for more than 30 years.

    Its core operations are in Egypt’s Western Desert region, where it holds onshore development and production assets.

    In May 2025, Capricorn agreed with Egyptian General Petroleum Corporation to consolidate eight of its 50:50 jointly owned concessions into a single integrated licence with enhanced commercial terms. Capricorn announced in March 2026 that it had received formal parliamentary ratification of the agreement.

    The deal has been announced at a time when Genel is seeing frequent disruption to operations at its assets in Iraqi Kurdistan.

    Production was temporarily suspended at the Tawke field in February after the US and Israel attacked Iran, increasing security concerns in the wider region.

    While the security situation is understood to have improved in the Iraqi Kurdistan region and many oil companies have resumed operations, there are now concerns that the Iraq-Turkiye Pipeline could be shut due to an agreement between the two countries expiring later this month.

    If the pipeline does stop operations, it will negatively impact Genel as it is the main route through which the company’s Iraqi oil is exported.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17587599/main.jpg
    Wil Crisp
  • Axens signs Egypt refining deal

    8 July 2026

    Register for MEED’s 14-day trial access 

    France’s Axens has signed a long-term agreement with the Egyptian Refining Company (ERC) that covers product supply, digital transformation and refinery performance optimisation.

    ERC operates Egypt’s $4.4bn Mostorod refinery, which was inaugurated in September 2020.

    In a statement about the deal, Axens said that it will “leverage its comprehensive and integrated portfolio of technologies, equipment, catalysts and services to support ERC’s operational, economic and sustainability objectives”.

    It added: “With its end-to-end expertise across the entire refining value chain, Axens is uniquely positioned to support ERC from early-stage project studies through engineering, unit start-up, operational optimisation and long-term technical follow-up.

    “This fully integrated approach will help ensure reliability, operational excellence and environmental performance across the refinery’s life cycle.”

    Quentin Debuisschert, the chief executive and chairman of Axens, said: “This long-term agreement marks an important milestone in the relationship between Axens and ERC.

    “It reflects our ability to support customers beyond technology licensing by delivering a fully integrated offering that combines all process and catalyst technologies a modern refinery needs, services, digital solutions, operational expertise and training.

    “We are committed to supporting ERC’s ambitions in operational excellence, digital transformation and sustainability while helping maximise the long-term value and competitiveness of its assets.

    “We are proud and motivated to continue supporting ERC in ensuring the economic and operational success of its refinery."

    Mohamed Saad, the president of ERC, said: “ERC values its strong partnership with Axens and the confidence this agreement brings for the future.

    "This collaboration will help us continue enhancing refinery performance, maximising operational efficiency and delivering high-quality products to support Egypt’s energy needs.”

    The Mostorod refinery is located 10 kilometres north of Cairo and has the capacity to produce about 4.7 million tonnes of petroleum products annually.

    It sells all of its output directly to the national oil company Egyptian General Petroleum Corporation under a 25-year agreement.

    When the refinery was brought online and reached full capacity, it boosted Egypt’s capacity to produce diesel by 30% and increased gasoline production by 15%.

    Operations started at the refinery in November 2019.

    Qatar Petroleum is a stakeholder in the project. It owns 38.1% of the Arabian Refinery Company, which in turn owns 66.6% of ERC.

    The Mostorod refinery mainly produces Euro 5 refined products, including diesel and jet fuel, which are intended for consumption primarily in Cairo and surrounding areas.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17587498/main.jpg
    Wil Crisp
  • Gulftainer commits to $2bn expansion plan

    8 July 2026

    Gulftainer has unveiled a $2bn strategy to transform from a ports and terminals operator into an integrated global trade infrastructure company, a long-horizon commitment made at a port that was struck three months ago and in a region where the shipping lanes it depends on are under renewed attack.

    The strategy restructures the company around four platforms: container terminals and maritime gateways, inland logistics and multimodal transport, logistics parks and industrial ecosystems, and regional maritime services connecting strategic trade corridors.

    At the centre of the strategy is Khorfakkan Port, the UAE's deepwater gateway on the Gulf of Oman. Expansion works will raise annual handling capacity from 3.5 million twenty-foot equivalent units (TEUs) to 5 million TEUs, a 43% uplift, with a long-term master plan targeting more than 10 million TEUs. Planned integration with Etihad Rail will turn the port into a fully multimodal gateway linking sea, road and rail.

    The commitment comes despite the port's recent exposure to the conflict in the region. On 5 April, a fire broke out at Khorfakkan after debris fell on the facility following the interception of an unidentified object. In a post on X, the Sharjah media office said the incident injured four people, one Nepalese national seriously and three Pakistani nationals with minor to moderate injuries. The strait through which Khorfakkan-bound traffic passes has come under further attack in recent days, with merchant vessels struck near the Strait of Hormuz.

    Inland, Al-Dhaid Logistics Park and Sajaa Logistics Park will together provide 2.3 million TEUs of annual inland capacity, extending Gulftainer's reach.

    The company positions itself as a key enabler of the India-Middle East-Europe Economic Corridor and the UAE's role in China's Belt and Road Initiative, linking ports, shipping services, inland logistics networks and digital platforms across major global trade routes. The transformation follows nearly five decades of operation and is being implemented under the New Gulftainer strategy.

    Gulftainer's partnership with the Sharjah Ports, Customs & Free Zones Authority underpins the Khorfakkan expansion. The port sits within an integrated maritime network spanning both the Arabian Gulf and the Gulf of Oman, offering shippers several routing options across the two waterways.

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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17588407/main.jpg
    Colin Foreman