meed-logo

line1 line2 line3
SIGN IN / REGISTER

Region boosts LNG spending

29 April 2024

 

This package also includes: Gulf players secure future of LNG projects 

There has been a sharp rise in investment in projects aimed at expanding the production of liquefied natural gas (LNG) in the Gulf region since the start of this decade.

A capital expenditure of close to $38bn has been made by Middle East and North Africa hydrocarbons producers in the past 10 years, mainly on projects to increase LNG output capacity, according to data from regional projects tracker MEED Projects.

Almost three quarters of that spending has taken place in the past four years, and predominantly in the GCC.

The rise in the importance of natural gas, and therefore LNG, as an energy transition fuel has led to strong growth in its demand worldwide. Global trade in LNG reached 404 million tonnes in 2023, up from 397 million tonnes in 2022, with tight supplies of LNG constraining growth, energy major Shell said in a recent report.

Global LNG demand is expected to rise by more than 50% by 2040, as industrial coal-to-gas switching gathers pace in China and countries in south and southeast Asia use more LNG to support their economic growth.

Gulf players are keen to cater to this growing demand and dominate the global supply market, fuelling a wave of investment in large-scale production-boosting projects and terminal construction schemes. 

The total LNG production capacity of the GCC is expected to reach an estimated 200 million tonnes a year (t/y) by 2030, cementing the region’s position as the world’s largest LNG supplier.

Taking the lead

Qatar has been jostling with the US and Australia for the title of world’s largest LNG provider for many years. Each of these three producers have clinched the top spot at different points, only to be unseated by one of the others again.

However, when its North Field LNG expansion starts to come online later in 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 t/y to 126 million t/y by 2028. Engineering, procurement and construction (EPC) works on the two projects are making 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 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 in May 2023.

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.

And Doha is not stopping there. QatarEnergy announced a third phase of its North Field LNG expansion programme in February. 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 will draw feedstock for LNG production from the western zone of Qatar’s North Field offshore gas reserve.

Muscat moves up

Oman has been supplying LNG to customers, mainly in Asia, for many years. 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.

France’s TotalEnergies has also committed to becoming a major LNG supplier in the sultanate. In partnership with state energy holding conglomerate OQ, TotalEnergies has achieved final investment decision on a major LNG bunkering and export terminal in Oman’s northern city of Sohar.

TotalEnergies is leading the Marsa LNG joint venture, which is developing the Sohar LNG terminal project. Marsa LNG was formed in December 2021 by TotalEnergies and OQ, with the partners owning 80% and 20% stakes, respectively.

Marsa LNG plans to develop an integrated facility consisting of upstream units that will draw natural gas feedstock from TotalEnergies’ hydrocarbons concessions in Oman, particularly from the sultanate’s Blocks 10 and 11. 

The joint venture is also planning 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 selected France’s Technip Energies to perform EPC works on the estimated $1bn project.

Adnoc’s ambitions

Abu Dhabi National Oil Company (Adnoc) has historically been one of the GCC’s smaller LNG producers. 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 facility’s first and second trains were commissioned in the 1970s and have a total combined output capacity of 2.9 million t/y. The third train came into operation in the mid-1990s and has a capacity of 3.2 million t/y.

The LNG production and export capability of Adnoc Gas will receive a major boost when a new greenfield terminal that 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. The facility will ship LNG mainly to key Asian markets, such as Pakistan, India, China, South Korea and Japan.

In March, Adnoc Group announced that it had issued a limited notice to proceed to a consortium of contractors for early EPC works on the Ruwais LNG terminal project. 

The limited notice to proceed was given to a consortium led by Technip Energies, consisting of Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy.

The overall value of the export terminal project is estimated to be more than $5bn. Adnoc is expected to issue the full EPC contract award for the Ruwais project in June this year.

 Gulf players secure future of LNG projects 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11717834/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 tenders Warsan waste-to-energy consultancy contract

    16 February 2026

    Dubai Municipality has issued a tender for consultancy services on the second phase of the Warsan waste-to-energy (WTE) plant.

    The tender covers feasibility, procurement and construction supervision services for the project.

    The bid submission deadline is 25 February.

    The project relates to the planned expansion of the Warsan WTE plant in Dubai. The scheme has an estimated budget of $500m.

    The facility will be located in Warsan 2, next to the Al-Aweer sewage treatment plant.  As MEED understands, it will use treated wastewater from that facility.

    The project scope includes construction of treatment lines, a boiler hall, waste bunkers, a flue gas treatment system, a main electrical station and associated infrastructure.

    The contract duration is six years

    Expansion strategy

    The original Warsan WTE plant, Dubai’s first major WTE public-private partnership (PPP) project, reached full commercial operations in 2024.

    Located in the Warsan area, the AED4bn ($1.1bn) facility treats 1.9 million tonnes of municipal solid waste annually, generating up to 220MW of thermal energy that is fed into the local grid.

    In February 2023, state utility Dubai Electricity & Water Authority (Dewa) and Dubai Waste Management Company signed the power-purchase agreement (PPA) for the project.

    Dubai Waste Management Company, the special-purpose vehicle implementing the scheme, reached financial close in June 2021 for the project.

    The main contractor was a consortium of Belgium’s Besix Group and Hitachi Zosen Inova of Switzerland.

    The expansion aligns with Dubai’s long-term waste strategy. In February 2022, the emirate approved a AED74.5bn budget covering waste management initiatives from 2021 to 2041.

    The strategy promotes innovation in waste management, recycling and energy conservation. It anticipates private sector contributions of AED70.5bn, equivalent to about 95% of the total planned investment.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15660272/main.jpg
    Mark Dowdall
  • Saudi Arabia wastewater plant reaches financial close

    16 February 2026

     

    The planned $500m industrial wastewater treatment plant (IWWTP) in Jubail in Saudi Arabia’s Eastern Province has reached financial close, sources have confirmed to MEED.

    Located in Jubail Second Industrial City, the facility will treat and recycle wastewater from Satorp’s under-construction Amiral chemical derivatives complex, also in Jubail.

    The project reached financial close after hedging arrangements were completed on 12 February, sources said.

    A consortium of Saudi utilities provider Marafiq, the regional business of France’s Veolia and Bahrain/Saudi Arabia-based Lamar Holding is developing the project under a 30-year concession agreement.

    Saudi Aramco Total Refining & Petrochemical Company (Satorp), a joint venture of Saudi Aramco and France’s TotalEnergies, awarded the contract last September.

    As MEED exclusively reported, Egypt’s Orascom Construction is the engineering, procurement and construction (EPC) contractor for the project, which is expected to be commissioned in 2028.

    Marafiq, formally Power & Water Utility Company for Jubail and Yanbu, will own a 40% stake in the dedicated project company. Veolia Middle East will hold a 35% stake, and Lamar Holding’s Lamar Arabia for Energy will hold the other 25%.

    The planned IWWTP, which will primarily serve the $11bn sprawling Amiral chemicals zone, will implement advanced water treatment and recovery technologies to process complex industrial effluents, including spent caustic streams. Treated water will be reintegrated into the industrial processes, supporting closed-loop reuse and energy efficiency.

    As of February, more than 50% of construction on Satorp’s Amiral facility has been completed. Commissioning is targeted for the end of 2027.

    Construction is also ongoing on a separate industrial wastewater treatment plant (IWTP8) in Jubail. Saudi Services for Electro Mechanic Works is the contractor for the development’s fourth expansion phase.

    The Marafiq-owned project is scheduled to be completed by the end of the quarter.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15660112/main.jpg
    Mark Dowdall
  • Riyadh tenders Expo 2030 site offices contract

    16 February 2026

     

    Saudi Arabia’s Expo 2030 Riyadh Company (ERC), tasked with delivering the Expo 2030 Riyadh venue, has tendered a contract that includes the construction of site offices required for the initial construction works.

    MEED understands that the package was retendered in early February, with a bid submission deadline of 26 February.

    The contract was first tendered in May last year, with bids submitted in July, as MEED reported.

    The tendering activity follows the Royal Commission for Riyadh City (RCRC) issuing a design-and-build tender for the construction of a new metro station serving the Expo 2030 site.

    The new metro station will be located on Line 4 (Yellow Line) of the Riyadh Metro network.

    MEED understands that the tender was floated in early February, with a bid submission deadline of 3 May.

    Construction work on the Expo 2030 Riyadh site is progressing at an accelerated pace. In January, ERC awarded an estimated SR1bn ($267m) contract to deliver the initial infrastructure works at the site.

    The contract was awarded to the local firm Nesma & Partners.

    The scope of work covers about 50 kilometres (km) of integrated infrastructure networks, including internal roads and essential utilities such as water, sewage, electrical and communication systems, and electric vehicle charging stations.

    Contractors are also bidding for infrastructure lots two and three. In December, MEED reported that ERC had floated another tender for the project’s initial infrastructure works.

    The masterplan encompasses an area of 6 square kilometres, making it one of the largest sites designated for a World Expo event. Situated to the north of the Saudi capital, the site will be located near the future King Salman International airport, providing direct access to various landmarks within Riyadh.

    Countries participating in Expo 2030 Riyadh will have the option to construct permanent pavilions. This initiative is expected to create opportunities for business and investment growth in the region.

    The expo is forecast to attract more than 40 million visitors.

    In a statement, the Public Investment Fund said: “During its construction phases, Expo 2030 Riyadh and its legacy are projected to contribute around $64bn to Saudi GDP and generate approximately 171,000 direct and indirect jobs. Once operational, it is expected to contribute approximately $5.6bn to GDP.”

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15659580/main.jpg
    Yasir Iqbal
  • Acwa refinances $2.45bn Hassyan IPP debt

    16 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Acwa has announced it has refinanced the existing debt facilities of the Hassyan independent power project (IPP) in Dubai.

    In a post on social media platform LinkedIn, the developer said the transaction is the largest refinancing it has completed, valued at $2.45bn.

    It added that the deal is backed by a new group of lenders. These lenders have yet to be disclosed.

    The Hassyan IPP has a generation capacity of 2,400MW and reached full commercial operations in 2023.

    The project was originally developed as a coal-fired IPP. It was later converted to operate on natural gas instead, reflecting changes in Dubai’s power generation strategy.

    A consortium comprising Acwa – formerly Acwa Power – and China’s Harbin Electric won the contract to develop the project in 2016.

    Acwa and Harbin Electric hold 26.95% and 14.7% stakes, respectively, in the project company Hassyan Energy Company. Dubai Electricity & Water Authority (Dewa) holds 51%, while Silk Road Fund owns 7.35%.

    The Hassyan plant forms part of Dewa’s wider generation portfolio. Other major assets include the Jebel Ali and Al-Aweer power complexes, Mohammed Bin Rashid Al-Maktoum (MBR) Solar Park and the Hatta hydroelectric project.

    MBR Solar Park is the largest single-site solar park in the world, with a planned capacity target of 7,260MW by 2030.

    Dewa recently extended the bid deadline for its seventh phase, which will add 2,000MW from photovoltaic solar panels and includes a 1,400MW battery energy storage system with a six-hour capacity.

    The new bid submission deadline is 1 May.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15659537/main.jpg
    Mark Dowdall
  • SWPC rebrands as Sharakat to reinforce PPP focus

    13 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Water Partnership Company (SWPC) has unveiled a new corporate identity as part of a strategy to reinforce the role of public-private partnerships (PPPs).

    At a ceremony in Riyadh, the company said it will operate under the name Sharakat, reflecting its “evolution and expanding mandate in the kingdom’s water sector”.

    The new identity comes as Saudi Arabia expands the use of PPPs to deliver infrastructure projects.

    In January, the government launched a National Privatisation Strategy targeting more than 220 PPP contracts by 2030, including projects in the water sector.

    The government is targeting over $64bn (SR240bn) in private capital investments in this period, which it said would be “a new phase focused on execution and accelerating delivery”.

    Previously, the 2018 privatisation programme had focused on the ‘foundational phase’.

    SWPC has served as the principal offtaker of all water in Saudi Arabia since 2017. Its mandate covers desalinated water, transmission and treatment projects. It also includes small-scale plants, collection networks and strategic water reservoirs.

    The total investment value of its current projects exceeds SR56bn ($14.9bn), the offtaker said.

    According to MEED Projects, SWPC has over $11bn-worth of PPP projects in the pipeline, with two projects ($2.10bn) currently under bid evaluation.

    In December, local firm Vision Invest was named as the preferred bidder to develop and operate the 859-kilometre Riyadh-Qassim independent water transmission pipeline project. 

    The consortium of Miahona (Saudi Arabia), Marafiq Company and Buhur for Investment was also named as the preferred bidder for the Arana independent sewage treatment plant (ISTP).

    Financial close for both projects is expected in 2026.

    Meanwhile, SWPC has issued a request for proposals for the $150m Riyadh East ISTP, which will have a treatment capacity of 200,000 cubic metres a day (cm/d), expandable to 400,000 cm/day in the second phase.

    The bid submission deadline is 2 April. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15647732/main.jpg
    Mark Dowdall