Regional downstream sector prepares for consolidation
30 December 2024

The Middle East and North Africa (Mena) region’s midstream and downstream oil, gas and petrochemicals sectors together had one of their best years on record in 2024, with state-owned companies and private players collectively spending close to $38bn on projects.
Saudi Arabia emerged as the biggest regional spender on midstream and downstream projects. To address incremental volumes of gas entering the grid as Saudi Aramco increases its conventional and unconventional gas production, the state enterprise has spent more than $17bn on gas processing and transportation projects this year.
In April 2024, Aramco awarded $7.7bn in engineering, procurement and construction (EPC) contracts for a project to expand the Fadhili gas plant in the Eastern Province of Saudi Arabia. The project is expected to increase the plant’s processing capacity from 2.5 billion cubic feet a day (cf/d) to up to 4 billion cf/d.
On 30 June, Aramco awarded 15 lump-sum turnkey contracts for the third expansion phase of the Master Gas System (MGS-3), worth $8.8bn. Then, in August, the company awarded contracts for the remaining two packages of the MGS-3 project, which were worth $1bn.
Saudi Aramco divided EPC works on the MGS-3 project into 17 packages. The first two packages involve upgrading existing gas compression systems and installing new gas compressors. The 15 other packages relate to laying gas transport pipelines at various locations in the kingdom.
The Master Gas System expansion will increase the size of the network and raise its total capacity by an additional 3.15 billion cf/d by 2028 with the installation of about 4,000 kilometres
of pipelines and 17 new gas compression trains.
Abu Dhabi capex
The UAE has been the second-largest spender on midstream, downstream and chemicals projects in 2024, led by investments from Abu Dhabi National Oil Company (Adnoc) and Taziz – its 60:40 joint venture with industrial holding entity ADQ.
Adnoc’s biggest capital expenditure (capex) was in the form of a $5.5bn EPC contract that it awarded to a consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy to develop a greenfield liquefied natural gas (LNG) terminal complex in Ruwais.
The upcoming Ruwais LNG export terminal will have the capacity to produce about 9.6 million tonnes a year (t/y) of LNG from two processing trains, each of which has a capacity of 4.8 million t/y. When the project is commissioned, Adnoc’s LNG production capacity will more than double to about 15 million t/y.
Adnoc Group subsidiary Adnoc Gas has also advanced a project to expand its sales gas pipeline network across the UAE, which is known as Estidama. The Abu Dhabi-listed company has awarded two EPC packages of the project this year, which together were worth more than $500m.
Adnoc Gas is expected to award the contract for another Estidama package before the end of 2024 that covers the construction of a pipeline that will provide feedstock from its Habshan gas processing plant to the upcoming Ruwais LNG complex.
Taziz, meanwhile, awarded three EPC contracts totalling $2bn for infrastructure works at the industrial chemicals zone that it is developing in Ruwais Industrial City.
Spending to plateau
Having reached a peak in spending, and with EPC contracts awarded for strategic midstream, downstream and chemicals projects in 2024, the Mena region is set to enter a period of more pragmatic project spending in 2025. However, this does not imply that a slump in project capex is likely, and the region could once again equal the level of contract awards made in 2024.
One of the largest projects that may be awarded in 2025 is the main contract for the North Field West LNG project – the third phase of QatarEnergy’s LNG expansion programme.
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.
Taziz is also on course to make progress with the second expansion phase of its derivatives complex, which will more than double the number of chemicals produced at the industrial hub. The expansion’s centrepiece will be a large-scale steam cracker that will supply feedstocks to the several new chemical plants earmarked for third-party investments.
In Saudi Arabia, there has been speculation that Aramco may be revisiting its investment strategy and execution approach for its strategic liquids-to-chemicals programme.
The aim of the programme is to derive greater economic value from every barrel of crude produced in the kingdom by converting 4 million barrels a day (b/d) of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.
Aramco has divided its liquids-to-chemicals programme into four main projects. It took a major step forward
in September 2023 by selecting US firm KBR, France’s Technip Energies, UK-based Wood Group and Australia- headquartered Worley to provide project management consultancy services for the four different segments of the scheme.
Progress on a programme as big as the liquids-to-chemicals scheme is expected to be measured and laboured.
While day-to-day the advancement might appear sluggish, Amin Nasser, Aramco’s president and CEO, said earlier in 2024 that the Saudi energy giant is on track to achieve its crude oil-to-chemicals conversion goal by 2030.
“We are on track to achieve our target of 4 million b/d liquids-to-chemicals [conversion capacity] by 2030,” he said.
Meanwhile, Kuwait is in a similar situation with its planned Al-Zour integrated complex upgrade programme (Zicup), which has suffered significant delays in recent years. However, state-owned Kuwait Integrated Petroleum Industries Company (Kipic), the project’s operator, recently appointed a team to look into the logistics of developing a benzine pipeline as part of the estimated $10bn Zicup scheme.
Although this may be a small step, it does indicate that Kuwait remains determined to achieve its ambition of developing a large-scale petrochemicals facility, which, when integrated with its $16bn Al-Zour refinery, could become one of the biggest integrated refining and petrochemicals complexes in the Mena region.

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Three Libya oil and gas projects see developments9 November 2026
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Planning for growth
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- A gas recovery system
- A unit to produce nitrogen and oxygen
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Three Libya oil and gas projects see developments9 November 2026

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The contract scopes include seismic work, subsea pipeline development and drilling services.
An invitation to prequalify has been issued for a project to provide two-dimensional (2D) and three-dimensional (3D) offshore seismic surveying services.
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Deadline extended
Libya’s Mellitah Oil & Gas Company (MOG) has extended the deadline for companies to submit prequalification documents for a major offshore package as part of its Mellitah complex expansion and CO2 management integrated development project, which is estimated to be worth about $8bn.
The previous deadline of 5 November 2026 has been extended to 3 December 2026.
MOG, a joint venture of NOC and Eni, is the project client.
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The turnkey contract will use the engineering, procurement, installation and commissioning (EPIC) model.
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Structure A is also known as wellhead production fixed platform A (WHPA) and Structure E is also known as production platform E (PPE).
Structure A is in the central-western part of the area, about 80 kilometres (km) from the Libyan coast, with a water depth of 95-105 metres.
Structure E is located in the central-eastern part of the area, about 130km from the Libyan coast, in a water depth of 205-235 metres.
The scope of the wider project includes:
- A new production platform installed in about 220 metres of water depth as part of the development of Structure E (Package WP1)
- A new wellhead platform installed in 96 metres of water as part of the development of Structure A (Package WP2)
- Modification of the existing Sabratha platform (Package WP3)
- Sealines and subsea systems extending from the Sabratha platform to Structure A (Package WP4A1)
- Sealines and subsea systems for Structure E and the CO2 system (Package WP4B1)
- Supply of seamless carbon steel pipes for CO2 injection from the Mellitah complex to Sabratha platform (Package WP4B2)
- Subsea Production Systems (SPS) for Structure E and CO2 (Package WP4B3)
- Upgrading the existing onshore Mellitah complex (WP5)
The package known as WP4B1 has been broken down into two phases.
The first phase focuses on the installation of the project’s subsea CO2 pipeline and its related system network.
The second phase of WP4B1 is focused on the pipeline to structure E and its related subsea system network.
Monitoring drilling
MOG has also issued a separate invitation for prequalification relating to a contract to provide hydrogen sulphide monitoring services for offshore drilling.
The contract focuses on providing H2S monitoring services for 18 offshore development wells as part of the “Structures A&E” project.
Four of the wells will be subsea wet wells and a further 14 will be dry tree wells.
The deadline for submitting prequalification documents is 3 December 2026.
The work will be carried out in the zone known as Area D, Block NC41.
H2S monitoring in the oil and gas industry involves tracking H2S gas concentrations in the air using electronic sensors and detectors to protect workers, prevent fatal exposures and avoid equipment damage.
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