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  Rabigh 2 IPP expansion secures $2.58bn financing

  5 October 2026

  Saudi Arabia's Rabigh 2 combined-cycle gas-turbine (CCGT) independent power project (IPP) expansion has reached financial close.

  In a disclosure to the Saudi Exchange, Acwa said it had secured SR9.69bn ($2.58bn) in long-term financing for the project, which has a generation capacity of 2,313.5MW.

  In April, MEED reported that  Acwa and Saudi Energy (formerly Saudi Electricity Company) had signed a 31-year power purchase agreement (PPA) with Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), for the project.

  The project involves the development of a combined-cycle gas turbine (CCGT) plant in the Mecca region. It is being developed by Al-Morjan Two Electricity Company, with Acwa and Saudi Energy each owning a 40% stake in the project.

  The contract is valued at SR11.5bn ($3.07bn), the companies said in separate stock exchange filings at the time. The carbon-capture-ready power plant will be implemented under a build, own and operate contract.

  The financing has a tenor of about 34 years and was provided by a consortium of local, regional and international lenders.

  The lenders are:

  • Abu Dhabi Commercial Bank
  • Alinma Bank
  • Boubyan Bank
  • China Minsheng Banking Corporation, Hong Kong Branch
  • Commercial Bank of Dubai
  • HSBC Bank Middle East
  • Industrial and Commercial Bank of China
  • Industrial Bank, Beijing Branch
  • National Bank of Greece, Cyprus
  • Riyad Bank
  • Saudi Awwal Bank
  • Saudi National Bank
  • Standard Chartered Bank, Taiwan
  • Sumitomo Mitsui Trust Bank, London Branch

  The project scope also includes financing and expansion of a 380kV electrical substation.

  According to regional project tracker MEED Projects, construction works have commenced on the project and a joint venture of Egypt's Elsewedy Electric and China's Sinohydro has been working as the main contractor.

  Rabigh 1 extension

  In January, Saudi Energy announced a spearate energy conversion agreement with SPPC for the purchase of electricity from the Rabigh 1 power plant expansion.

  The contract is valued at SR5.33bn ($1.42bn).

  It covers the development, financing, construction, ownership and operation of the gas-fired power plant, which will have a generation capacity of 1,179MW.

  A joint venture of Elsewedy Electric and Germany’s Siemens Energy is undertaking the engineering, procurement and construction work for the project, which is expected to be completed by the end of 2026.

  US/India-based Synergy Consulting is the financial advisory consultant to Saudi Energy on this project.

  Acwa also recently started initial commercial operations at the Taiba 1 and Qassim 1 combined-cycle gas turbine (CCGT) power plants, as reported by MEED.

  The plants have a combined generation capacity of about 3.8GW and are two of four projects procured under the first round of Saudi Arabia’s gas-fired independent power producer (IPP) programme by Saudi Power Procurement Company.

  A team of Saudi Energy, formerly Saudi Electricity Company, and Acwa won the contract to develop and operate the projects in 2023.

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  Mark Dowdall
• 
  Contractors submit bids for Libya refinery

  5 October 2026

  

   

  Bids have been submitted for the main contract for Libya’s planned South Refinery project and are currently under technical evaluation, according to industry sources.

  The project, located in Ubari in southern Libya, has gained momentum over the past year, and the main contract is anticipated to be worth more than $600m.

  The main contract is expected to use the engineering, procurement and construction (EPC) model.

  The EPC work is expected to take 50 months, and the facility will be designed to process 30,000 barrels a day (b/d) of crude oil.

  In March, US-based engineering company KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the project.

  Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the project’s EPC phases.

  The refinery is expected to produce:

  • Propane and butane for domestic and industrial uses
  • Gasoline
  • Kerosene
  • Diesel
  • Fuel oil

  In March, KBR said that the project was aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.

  Libya currently operates five main refineries with a combined nameplate capacity of 380,000 b/d, but actual throughput is closer to 180,000 b/d due to poor maintenance and damage from military clashes.

  In addition to the South Refinery project, Libya also plans to upgrade the Zawiya refinery and carry out projects at the Serir, Brega, Tobruk and Ras Lanuf refineries.

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

  Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

  Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

  > AGENDA: Oxagon takes centre stage at Neom > MARKET FOCUS: Saudi projects hold steady > INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking > POWER: AI is creating a grid capacity problem > LEGAL: What IFAD’s wind-down means for Gulf commodity markets > OIL: Oil companies focus on North Africa amid Hormuz crisis  > LEADERSHIP: The future city does not need to hang above the ground

  To see previous issues of MEED Business Review, please click here

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  Wil Crisp
• 
  Dubai tenders sewage and stormwater projects

  5 October 2026

  Register for MEED’s 14-day trial access 

  Dubai Municipality has issued tenders for a 3,000-cubic-metre-a-day sewage treatment plant (STP) and a strategic stormwater drainage system.

  The first tender is for the design and construction of the Al-Lissaily STP.

  The project, identified as DS311/1, covers the design, supply, installation, construction and commissioning of the plant in the Al-Lissaily area.

  Dubai Municipality’s Sewerage and Recycled Water Projects Department is issuing the tender. The bid submission deadline is 29 October.

  The facility is located near residential communities and farming areas. The project will therefore include measures for odour control, treated effluent quality, noise mitigation and environmental performance.

  The municipality said the plant will incorporate landscaping and architectural features designed to reflect Dubai’s heritage character and the surrounding farming environment.

  The second tender is for project TF-07-C1, a strategic stormwater drainage system covering more than 100 million square metres.

  The project area extends from Sheikh Mohammed Bin Zayed Road (E311) to the north to Emirates Road (E611) to the south, and from Expo Road in the west to Dubailand in the east.

  The project will provide stormwater infrastructure and service connections for more than 20 private developers, as well as the Al-Yalayis 5 community.

  It will also support major roads in the Jebel Ali area, including Sheikh Mohammed Bin Zayed Road, Emirates Road, Sheikh Zayed Road, Sheikh Zayed Bin Hamdan Al-Nahyan Road, Hessa Street, Al-Yalayis Road and Al-Fay Road.

  The scope includes a major stormwater gravity drainage system, with pipeline diameters of up to 3,000mm.

  Dubai Municipality said the project is intended to increase drainage capacity, improve relief for existing and new stormwater systems, and strengthen protection against extreme rainfall events.

  The bid submission deadline is 22 October.

  The municipality also recently invited contractors to bid for a contract to upgrade and rehabilitate the stormwater system in Abu Hail.

  The project comprises a stormwater pumping station with a total discharge capacity of 26 cubic metres a second. It is estimated to cost up to $163m.

  Bid submissions are due by 15 October.

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

  Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

  Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

  > AGENDA: Oxagon takes centre stage at Neom > MARKET FOCUS: Saudi projects hold steady > INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking > POWER: AI is creating a grid capacity problem > LEGAL: What IFAD’s wind-down means for Gulf commodity markets > OIL: Oil companies focus on North Africa amid Hormuz crisis  > LEADERSHIP: The future city does not need to hang above the ground

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/20266881/main.jpg

  Mark Dowdall
• 
  Arabian Drilling wins $533m contract for Neutral Zone rigs

  2 October 2026

  Saudi Arabia-based Arabian Drilling has announced that it has won a four-year contract from Al-Khafji Joint Operations (KJO) to provide four high-specification offshore jack-up drilling rigs to support KJO’s offshore drilling operations in its concession area in the Saudi-Kuwait Neutral Zone.

  The contract is valued at approximately SR2bn ($533.33m) and “will contribute to the company’s revenues and financial results commencing at the end of the fourth quarter of 2026”, Arabian Drilling said in a statement.

  Following the award, Arabian Drilling’s total backlog will increase to approximately SR18bn ($4.8bn), “providing enhanced revenue visibility and supporting the company’s long-term growth strategy”, the Saudi Exchange (Tadawul)-listed company said.

  KJO is jointly owned by Saudi Aramco subsidiary Aramco Gulf Operations Company and Kuwait Petroleum Corporation subsidiary Kuwait Gulf Oil Company.

  Saudi Arabia and Kuwait have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and the offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, they have been working to exploit the Dorra offshore field, understood to be the Neutral Zone’s only gas field.

  Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil. The two countries have been pressing ahead with their plan to jointly produce 1 billion cubic feet a day of gas from the Dorra gas field through multibillion-dollar projects.

  KJO divided the engineering, procurement and construction (EPC) scope of work for the Dorra field gas production project into four packages – three offshore and one onshore. It awarded contracts for all the EPC packages, worth approximately $6.5bn in total, in August.

  ALSO READ: ADES completes acquisition of Saipem’s Saudi drilling business

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  Indrajit Sen
• 
  QatarEnergy gives North Field West topside bidders more time

  2 October 2026

  

   

  QatarEnergy has granted contractors more time to prepare bids for a tender covering the engineering, procurement, construction and installation (EPCI) of large platforms for the North Field gas field in Qatari waters.

  Contractors now have until 12 October to submit technical bids for the project, according to sources. Commercial bids are currently due on 10 November.

  The following contractors, among others, are understood to be bidding for the North Field West (NFW) production deck modules (PDMs) tender:

  • China Offshore Oil Engineering Company (China)
  • Larsen & Toubro Energy Hydrocarbon (India)
  • McDermott (US)
  • Saipem (Italy)

  The core scope comprises the EPCI of four PDMs and associated structures. The PDMs will increase gas production from North Field reservoirs and provide additional gas feedstock for the NFW liquefied natural gas (LNG) development.

  The tender, issued earlier this year, forms part of the wider NFW project, the third and final phase of the state enterprise’s North Field LNG expansion programme.

  The previous deadlines for technical bids were 30 August, 15 September and 28 September, while commercial bids were previously due on 25 October, as MEED reported.

  Before issuing the PDMs tender, QatarEnergy awarded US firm McDermott a contract for the EPCI of four offshore jackets that will also support gas feedstock supply for the NFW LNG project. The contract is estimated to be worth about $200m, MEED reported in January.

  North Field LNG expansion

  QatarEnergy is advancing the three phases of its estimated $40bn North Field LNG expansion project. EPC works on all three projects are progressing.

  QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028.

  QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.

  In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.

  Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.

  QatarEnergy took the final investment decision on NFW earlier this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting in February.

  Chiyoda carried out the front-end engineering and design work for the NFW LNG project.

  The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.

  In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and liquefied petroleum gas.

  With all three phases under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers in the long term.

  ---

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

  Industry and logistics drive development at Neom; Saudi Arabia’s investment priorities realign amid conflict; MEED’s 2026 power developer ranking.

  Distributed to senior decision-makers in the region and around the world, the October 2026 edition of MEED Business Review includes:

  > AGENDA: Oxagon takes centre stage at Neom > MARKET FOCUS: Saudi projects hold steady > INDUSTRY REPORT: MEED’s 2026 GCC power developer ranking > POWER: AI is creating a grid capacity problem > LEGAL: What IFAD’s wind-down means for Gulf commodity markets > OIL: Oil companies focus on North Africa amid Hormuz crisis  > LEADERSHIP: The future city does not need to hang above the ground

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/20208200/main.jpg

  Indrajit Sen