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
  • Riyadh shifts bid deadline for King Salman Stadium works

    11 November 2026

     

    Saudi Arabia’s Sports Ministry has set a deadline of 1 December for a contract covering early works at the King Salman International Stadium in Riyadh.

    The tender scope encompasses enabling works, site preparation and initial construction activities. The tender was issued on 11 October, carrying an initial submission deadline of 19 November. Contractors previously submitted prequalification statements for the main design-and-build contract in February.

    Designed by US-based architectural firm Populous, the stadium will cover approximately 660,000 square metres (sq m), seat 92,000 spectators and stand adjacent to King Abdulaziz Park. Facilities will feature a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The broader masterplan encompasses more than 360,000 sq m of ancillary facilities, featuring two training fields, fan zones, a closed sports hall, an Olympic-sized swimming pool, an athletics track, and outdoor courts for volleyball, basketball and padel.

    Scheduled for completion by 2029, the venue will serve as the home base for the Saudi national football team and host the opening match and final of the 2034 Fifa World Cup.

    Saudi stadium plans

    In August 2024, MEED reported that Saudi Arabia plans to build 11 new stadiums and refurbish four existing venues for the 2034 tournament. Eight venues will be located in Riyadh, four in Jeddah, and one each in Al-Khobar, Abha and Neom.

    An additional 10 cities will host team base camps: Al-Baha, Jazan, Taif, Medina, AlUla, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah. Across the kingdom, organisers plan to deploy 134 training sites, comprising 61 existing facilities and 73 new builds.

    Saudi Arabia was officially selected to host the 2034 Fifa World Cup during an online convention of member associations at the Fifa Congress on 11 December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21325461/main.jpg
    Yasir Iqbal
  • Hormuz crisis sparks regional pipeline project boom

    11 November 2026

    Analysis
    Wil Crisp
    Oil & gas reporter

    Register for MEED’s 14-day trial access 

    The ongoing disruption to shipping through the Strait of Hormuz and the Bab Al-Mandab Strait has sparked a regional pipeline project boom, as countries seek to diversify export routes for oil and gas.

    Since the US and Israel attacked Iran on 28 February, several major pipeline projects have been announced, while others are being revived or accelerated.

    Countries that are participating in this regional pipeline boom include Iraq, Syria and Egypt.

    While the regional conflict has changed the dynamics within the oil and gas sectors of each of these countries in different ways, all of them see major pipeline projects as a key part of their strategic response to the conflict.

    Iraqi expansion

    Iraq is one of the region’s oil exporters that has been hit the hardest by the disruption to shipping through the Strait of Hormuz.

    Prior to the start of the regional conflict, the country was routing 94% of its total exports through the strait, with about 3.4 million barrels a day (b/d) being exported through its southern ports at the start of the year.

    At the same time, about 200,000 b/d was being exported via the Iraq-Turkiye Pipeline (ITP) in the north of the country.

    In the wake of the disruption to shipping through the Strait of Hormuz, Iraq has increased the volumes being exported via the ITP and has boosted its crude exports by truck through Syria.

    Earlier this month, domestic news outlets reported that Iraq’s State Oil Marketing Organisation is exporting 500,000 b/d through the ITP.

    The daily exports consist of 125,000 barrels of Kirkuk crude, 175,000-200,000 barrels of Kurdistan Region crude and about 200,000 barrels of Basra crude, according to the reports.

    The Basra oil reaches collection stations at Sarallu and Khurmala by truck and from there is pumped north to Ceyhan in Turkiye.

    The volume of crude exported from Iraq by truck to the Syrian port of Baniyas has risen significantly in recent months.

    In October, Youssef Qablawi, the chief executive of the state-owned Syrian Petroleum Company, said that about 1,000 trucks were transporting fuel oil to Syria each day, with each truck carrying about 220 barrels.

    This represents exports of 220,000 b/d, which is a significant volume for Iraq, but transporting crude by truck is much more expensive than using a pipeline.

    Because of this, Iraq sees pipeline projects as a long-term solution to its reliance on the Strait of Hormuz and is rapidly pushing ahead with projects that are designed to replace exports currently transported by road, as well as increasing the volumes that can be exported via both Syria and Turkiye.

    Earlier this month, MEED reported that the governments of Iraq and Syria, state-owned oil companies and a consortium led by Qatar’s UCC are currently discussing the terms of a deal for four interconnected pipeline packages that are expected to have a total value of about $5bn.

    Stakeholders expect a contract to be signed before the end of the year that will make the UCC-led coalition the selected developer responsible for tendering engineering, procurement and construction (EPC) contracts for the project.

    The consortium includes US-based Chevron, investment company TI Capital and France’s TotalEnergies.

    The four pipeline routes that are being discussed are:

    • Basra to Najaf
    • Najaf to Haditha
    • Haditha to Fish Khapour
    • Haditha to Banias Port in Syria

    The proposed plan will use a fast-track framework to bring the pipelines online as quickly as possible.

    Red Sea route

    Iraq and Saudi Arabia are also considering reviving an old pipeline route between the Zubair oil field in Basra and the Red Sea port of Yanbu.

    Operations of this 1,568-kilometre (km) pipeline were halted in August 1990 following Iraq's invasion of Kuwait and the onset of the Gulf War.

    At the end of October, Saudi Arabia granted preliminary approval to revive the joint oil export pipeline project, according to a report published by Saudi Arabia’s Shafaq News, which cited anonymous sources.

    If the pipeline is reinstated, it could allow Iraq to export oil via the Red Sea, reducing its reliance on the Strait of Hormuz.

    The pipeline was originally built at a cost of more than $2.6bn and featured a large network of storage tanks and offshore loading terminals.

    Syrian strategy

    In addition to its involvement in Iraq’s strategic export pipeline project, Qatar’s UCC is developing a pipeline project in Syria that will increase the country’s ability to deal with future supply disruptions.

    On 30 September, UCC announced that it has , which will extend 186km between Homs and Aleppo.

    The 36-inch pipeline will have a transmission capacity of up to 11 million cubic metres a day (cm/d) of gas and will connect gas networks in Jordan to those in Turkiye via Syria.

    In its announcement, UCC said that the project is scheduled for completion within 22 months and will contribute to strengthening Syria’s gas infrastructure; enhancing the capacity of its gas transmission network; and supporting regional connectivity with Jordan, Turkiye and Lebanon.

    Hisham Al-Saleh, Syrian Petroleum Company’s deputy chief executive for the gas sector, has said that the project includes the installation of three compressors in Furqlus, which will allow gas to be transported in both directions between Turkiye and Jordan.

    Speaking to the state-owned Syrian Arab News Agency, he said that the project will add an estimated 8 million cubic metres of storage capacity to the Syrian gas network, providing greater flexibility in managing gas production and use.

    Egyptian ambitions

    Egypt is also ramping up pipeline project activity in order to increase the number of oil and gas links that it has with neighbouring countries.

    The North African nation has long had ambitions to try and become a major regional energy hub.

    These plans have been given a boost by the ongoing disruption to shipping through the Strait of Hormuz and the Bab Al-Mandab Strait, which has reduced exports from nations like Qatar, Kuwait, Iraq, the UAE and Saudi Arabia.

    Concerns about the reliability of exports from Iraq and the GCC have led to increased investment in oil and gas infrastructure in countries that are not reliant on these waterways to transport hydrocarbons.

    In recent months, significant progress has been made on an integrated project that was launched in order to export offshore gas reserves in Cyprus via Egyptian energy infrastructure.

    In October, Italian oil and gas company Eni signed the main EPC and drilling contracts for the project, which will develop the Cronos field.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards include a $170m contract that has been won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help to transport gas to Egypt’s Damietta liquefied natural gas (LNG) facility.

    Separately, US-based Baker Hughes signed a contract for the design, procurement and construction of subsea production systems, including associated equipment and control systems.

    In September, it was announced that US-headquartered McDermott will carry out offshore work for the project, including the transportation, installation and connection of subsea pipelines and equipment.

    The Cronos development project will significantly increase the volume of gas being imported into Egypt, where it can be exported as LNG as well as helping to meet domestic demand.

    On top of the major pipeline project allowing the importation of gas from Cyprus, Cairo is also looking at other regional pipeline projects, including gas links to Libya.

    In a statement released earlier this month, Egyptian Foreign Minister Badr Abdelatty said that a Libyan team will ​visit ⁠Cairo soon to continue technical talks about the gas pipelines, as well as other energy projects, with Egypt’s petroleum and electricity ministers.

    Pipeline problems

    While the planned oil pipeline projects in Iraq are seen as a possible solution to the disruption to shipping through the Strait of Hormuz, they are also likely to face problems relating to the importation of necessary equipment that would normally be shipped through the waterway.

    The Common Seawater Supply Project, designed to bring water from the sea to inject into oil fields, is currently behind schedule, largely because of problems importing the pipeline segments through the strait.

    This issue could plague other planned pipeline projects in Iraq if the disruption to shipping continues, forcing contractors to use other, more costly, import routes.

    Challenging conditions

    Even when Iraq’s major export pipeline projects are completed, they may fail to resolve the country’s oil export problems to the extent many are expecting.

    While the export pipelines will go some way towards diversifying away from reliance on exports through waterways where oil and gas tankers are vulnerable to militant attacks, many industry insiders say Iraq could just be replacing one vulnerable export route with another.

    Oil pipelines in the Middle East and North Africa region have a long history of suffering attacks and often stretch long distances through remote regions where they are difficult to defend.

    Ultimately, it is likely that finding a diplomatic solution to the regional conflict will be the only way that Iraq can reliably increase its oil exports in the long term.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21305172/main.jpg
    Wil Crisp
  • Saudi Arabia approves revival of Iraq oil pipeline

    11 November 2026

    Register for MEED’s 14-day trial access 

    Iraq and Saudi Arabia are considering reviving an old pipeline route between the Zubair oil field in Basra and Saudi Arabia’s Red Sea port of Yanbu.

    Operations of this 1,568-kilometre (km) pipeline were halted in August 1990 following Iraq’s invasion of Kuwait and the onset of the Gulf War.

    At the end of last month, Saudi Arabia granted preliminary approval to revive the joint oil export pipeline, according to a report published by Saudi Arabia’s Shafaq News that cited anonymous sources.

    If the pipeline is reinstated, it could allow Iraq to export oil via the Red Sea, reducing its reliance on the Strait of Hormuz.

    The pipeline was originally built at a cost of more than $2.6bn and featured a large network of storage tanks and offshore loading terminals.

    Under current discussions, Iraq will be required to fund the restoration of its own section of the pipeline.

    The Middle East and North Africa region is currently experiencing a boom in pipeline project activity due to disruption to shipping as a result of the war that started when the US and Israel attacked Iran on 28 February 2026.

    As a result of the conflict, the shipping of gas, chemicals, oil and refined products has been disrupted in both the Strait of Hormuz and the Bab Al-Mandab Strait.

    Many countries, including Saudi Arabia and Iraq, see pipelines as a key way of diversifying export routes so that they are less reliant on shipping through these two waterways.

    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 shift

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/21304885/main.jpg
    Wil Crisp
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Register for MEED’s 14-day trial access 

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Bahrain tenders 100MW Bilaj Al-Jazayer solar project

    10 November 2026

     

    Register for MEED’s 14-day trial access 

    Bahrain’s Electricity and Water Authority (EWA) has issued a tender for the Bilaj Al-Jazayer independent power project (BAJ solar IPP), a utility-scale solar scheme with a planned capacity of at least 100MW.

    The project will be procured on a public-private partnership basis using a build-own-operate (BOO) model.

    The selected developer will develop, finance, design, construct, operate, maintain, decommission and restore the project site over a 25-year contract period.

    EWA has set a target commercial operation date of 31 December 2028.

    The scope includes photovoltaic generation facilities, utility-scale inverters, access roads and internal roads. The plant will use proven photovoltaic modules and inverters designed for Bahrain’s local operating conditions.

    The tender was published on 8 November. Companies have until 20 December to submit bids, with bid opening scheduled for 21 December.

    The tender requires an initial bond of BD300,000 ($796,000).

    The project will be awarded through a single-stage request-for-proposals process.

    Bidders will first be assessed against minimum eligibility requirements covering financial strength, project-financing capability and experience in large-scale solar developments before their technical and financial proposals are evaluated.

    A single bidder must demonstrate tangible net worth of at least $50m.

    In a consortium, each member must demonstrate net worth equivalent to its proposed shareholding in the $50m threshold, while the managing member must have a tangible net worth of at least $20m.

    The managing member must also have secured at least $150m of limited-recourse financing across three or more infrastructure projects during the past 10 years. It must hold at least a 15% equity stake in each reference project.

    Bidders or their engineering, procurement and construction contractors must demonstrate experience delivering either three grid-connected ground-mounted solar projects of at least 100MWac each globally, or two projects of at least 70MWac each in the GCC. The reference projects must be connected to the grid at 66kV or above.

    The BAJ solar IPP supports Bahrain’s target of sourcing 20% of its energy from renewable sources by 2035.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21291585/main.jpg
    Yasir Iqbal