meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saipem wins $4bn Qatar offshore gas project contract

16 September 2024

Register for MEED's 14-day trial access 

QatarEnergy LNG, a subsidiary of state enterprise QatarEnergy, has awarded Italian contractor Saipem an estimated $4bn engineering, procurement, construction and installation (EPCI) contract as part of the second phase of its North Field Production Sustainability (NFPS) project.

Saipem has won combined packages COMP3A and COMP3B of the NFPS project’s second phase, it said in a statement on 16 September.

The scope of work on the combined packages encompasses EPCI of a total of six platforms, approximately 100 kilometres (km) of corrosion resistance alloy rigid subsea pipelines of 28-inches and 24-inches diameter, 100km of subsea composite cables, 150km of fibre optic cables and several other subsea units.

The aim of the second phase of the NFPS project is to support QatarEnergy’s North Field liquefied natural gas (LNG) expansion programme.

The second NFPS phase will mainly involve building gas compression facilities to sustain and gradually increase gas production from Qatar’s offshore North Field gas reserve over the long term.

This is the second contract win for Saipem in the NFPS project’s second phase, which consists of four main EPCI packages.

Prior to winning combined packages COMP3A and COMP3B, QatarEnergy LNG awarded Saipem a $4.5bn order in October 2022 to build and install gas compression facilities.

The main scope of work on the package, which is known as EPCI 2, covers two large gas compression complexes that will comprise decks, jackets, topsides, interconnecting bridges, flare platforms, living quarters and interface modules.

The gas compression complexes – CP65 and CP75 – will weigh 62,000 tonnes and 63,000 tonnes, respectively, and will be the largest fixed steel jacket compression platforms ever built.

NFPS first phase

Saipem is executing the main EPCI works on the entire first phase of the NFPS project, which consists of two packages.

Through the first phase of the NFPS scheme, QatarEnergy LNG aims to increase the early gas field production capacity of the North Field offshore development to 110 million tonnes a year.

QatarEnergy LNG, formerly Qatargas, awarded Saipem the contract for the EPCI package in February 2021. The package is the larger of the two NFPS phase one packages and has a value of $1.7bn.

Saipem’s scope of work on the EPCI package encompasses building several offshore facilities for extracting and transporting natural gas, including platforms, supporting and connecting structures, subsea cables and anti-corrosion internally clad pipelines.

The scope of work also includes decommissioning a pipeline and other significant modifications to existing offshore facilities.

In addition, in April 2021, QatarEnergy LNG awarded Saipem two options for additional work within the EPCI package, worth about $350m.

QatarEnergy LNG awarded Saipem the second package of the NFPS phase one project, estimated to be worth $1bn, in March 2021.

Saipem’s scope of work on the package, known as EPCL, mainly covers installing three offshore export trunklines running almost 300km from their respective offshore platforms to the QatarEnergy LNG north and south plants located in Ras Laffan Industrial City.

Saipem has performed the front-end engineering and design work on the main production package of the first phase of the NFPS as part of a $20m contract that it was awarded in January 2019. This provided a competitive advantage to the Italian contractor in its bid to win the package.

Saipem expects to complete work on both packages of the first phase of the NFPS project by the end of 2024.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12543882/main5022.jpeg
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aramco Stadium races towards completion

    12 November 2025

     

    The Aramco Stadium in Khobar is moving forward at an impressive pace as the fast-track project races towards completion in 2026

    The 47,000-seat stadium will be the new home for the Aramco-owned Al-Qadsiah Club and a key venue for the 2027 AFC Asian Cup and the 2034 Fifa World Cup. 

    The project’s progress stems from detailed planning and an accelerated delivery strategy. The project was conceived in May 2023, with the design process, managed by Aramco, commencing shortly thereafter. 

    “We completed the design within six months,” said Mohammed Subhi, the Aramco Stadium’s project manager.


    The project advanced quickly due to thorough planning and a fast-track delivery approach. Initiated in May 2023, the design phase—overseen by Aramco—was completed within six months

    An early engagement approach with the main contractor – a joint venture of Besix and Al-Bawani – was instrumental in maintaining momentum. This partnership began early in 2024, allowing for collaborative input on critical construction elements. 

    This upfront collaboration minimised pre-construction time, ensuring a rapid transition to site work.

    Engineering challenges

    The stadium’s architectural design, inspired by the natural whirlpools of the Gulf and featuring interwoven transparent sails, presents significant engineering challenges, particularly in the structural steel and façade work. For spectator comfort, the stadium is equipped with full cooling systems and designed to the highest international standards.

    Logistics management is another crucial facet of the project, which is located in central Khobar. With thousands of workers on site, the movement of materials is tightly controlled to minimise community disruption. 

    “We control how many trucks can enter the site and at what time. For example, we cannot cast concrete during the day. It has to be after 6pm, up until the early morning,” said Subhi.

    A key priority on site is health and safety, an area where the organisation’s legacy from its oil and gas operations is clearly visible. Subhi explains that the principle of health and safety is part of the company’s DNA and is embodied in the deployment of advanced technology and rigorous standards, which have collectively resulted in over 10 million safe working hours to date.

    The project employs a sophisticated Smart Safety Command Centre (SCC), which utilises artificial intelligence-based monitoring and 24/7 surveillance. One key feature of the centre is the crane collision prevention system – a key technological advancement in heavy machinery coordination and a first for the region. 

    “We have tower cranes and crawler cranes talking to each other. The anti-collision system means cranes talk to each other without human interference, and they automatically shut down when they are too close to each other,” said Subhi.


    A key technological advancement is the crane collision prevention system, which means the cranes talk to each other and shut down if they become too close

    In addition to ground operations, the project is leveraging aerial technology to mitigate risk in high-altitude work.

    “We have used drones for the inspection of the cranes and inspection of the steel structure itself to minimise the risk of working at height,” said Subhi.


    Drones have been adopted on-site to mitigate the risk of working at height

    Worker welfare

    The project’s commitment extends beyond mere regulatory compliance to comprehensive worker welfare, establishing a high standard for construction sites in the region. 

    With current staffing reaching approximately 11,000 direct and indirect workers, welfare provisions are a core priority, linking directly back to Aramco’s corporate standards.

    In a region where extreme heat is a constant challenge, the project has implemented advanced heat stress management protocols. This includes the installation of heat sensors with alarm systems, mandatory work stoppage during peak heat hours and regular briefings on heat exhaustion symptoms. Fully air-conditioned rest areas are provided for breaks and meals.

    Aramco is also committed to developing national talent. A significant proportion of the staff are young, and about 20% of the team are women.

    The relationship with the joint-venture contractor is defined by collaboration rather than traditional client-contractor hierarchy. “We are one team, working together,” said Subhi. This approach has fostered a cooperative environment that is accelerating the on-site progress towards the 2026 completion goal. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073939/main.gif
    Colin Foreman
  • Oman signs PPA for 125MW Dhofar 2 wind project

    12 November 2025

    Singapore's Sembcorp Utilities and local firm OQ Alternative Energy (OQAE) have won a contract to develop the 125MW Dhofar 2 wind independent power project in Oman.

    The contract was awarded by state offtaker Nama Power & Water Procurement Company (Nama PWP) under a 20-year power purchase agreement (PPA).

    Under the PPA, Sembcorp and OQAE will form a joint venture to build, own and operate the wind farm, which will supply power to Nama PWP once operational.

    The equity split will give Sembcorp 75% and OQAE 25%, a source close to the project told MEED.

    Nama PWP said that it will allocate a portion of contracted works for the Dhofar 2 project to Omani small and medium-sized enterprises under its in-country value programme.

    The project is expected to begin commercial operations in the third quarter of 2027.

    The facility, valued at about OR43m ($112m), will be located on a 12-square-kilometre site in Dhofar Governorate.

    The project comprises 20 Windey WD200 turbines, each with a 6.25MW capacity. Each turbine stands 215 metres tall and will be connected to the national grid via a 400kV substation.

    The development will provide clean electricity to more than 18,000 homes and will cut carbon dioxide emissions by about 158,000 tonnes a year.

    It is also expected to generate about 396,754 megawatt-hours and free up around 76 million cubic metres of natural gas annually.

    Sembcorp has over 1.1GW of energy assets in Oman. In September, the firm signed a new 10-year power and water purchase agreement with Nama PWP for its Salalah independent water and power plant.

    According to Nama PWP, the offtaker has contracted 26 water and desalination plants, exceeding $11bn in investment, over the past 15 years.

    Chief energy transition officer at Nama PWP, Abdullah Bin Rashid Al-Sawafi, said the company "plans to attract a further $5bn over the next five years, mainly in renewable energy and storage technologies".

    This includes an extra 9GW of renewable energy capacity by 2030, representing 60% of total contracted capacity.

    Oman aims to have 30% of its electricity generation from renewable sources by the same year.

    READ THE NOVEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF

    Mena players up the ante in global LNG production race; Investment takes UAE non-oil economy from strength to strength; Project finance activity draws international lenders back to market

    Distributed to senior decision-makers in the region and around the world, the November 2025 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073043/main.jpg
    Mark Dowdall
  • Hitachi wins Alexandria Raml tram systems deal

    12 November 2025

    Register for MEED’s 14-day trial access 

    Hitachi Rail has announced that it has won a contract related to the modernisation and upgrade of the Alexandria Raml tram network in Egypt.

    Hitachi Rail said it will deliver advanced signalling and communications systems, an operational control centre and supervisory control and data acquisition, security systems with CCTV cameras and access control, passenger information and on-board equipment.

    The contract was awarded by a joint venture of Hassan Allam and Arab Contractors.

    The project scope includes rehabilitating a 13.2-kilometre tram line, constructing a maintenance depot, developing elevated viaducts and upgrading 24 stations.

    The project will reduce journey times from 60 to 35 minutes by increasing the operational speed on the line from 11 kilometres an hour (km/h) to 21km/h. The project will also increase the hourly capacity from 4,700 to 13,800 passengers in each direction. 

    UK analytics firm GlobalData expects the Egyptian construction industry to grow by 6.5% in real terms in 2025, supported by investments in oil and gas, industrial and housing construction projects. According to the Central Bank of Egypt, the country’s average construction production index grew by 5.8% year-on-year in the first 10 months of 2024.

    GlobalData says the construction industry's output is expected to register an annual average growth rate of 8% in 2026-29, supported by investments in commercial, renewable energy and transport infrastructure projects, coupled with the government’s target of developing 10GW of renewable energy projects by 2028 under the Nexus of Water, Food and Energy Programme.

    The infrastructure construction sector is expected to expand by 4.4% in real terms in 2025 and record an annual average growth rate of 7% in 2026-29, supported by government plans to continue its spending on transport infrastructure, ports and terminals.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15073050/main.jpg
    Yasir Iqbal
  • Contract award nears for Al-Ula tram works

    12 November 2025

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Royal Commission for Al-Ula (RCU) is preparing to award the contract to build infrastructure for the tramway at the Al-Ula development.

    MEED understands that bid evaluation has reached advanced stages and the contract award is imminent.

    Contractors submitted revised bids for the scheme in August, as MEED reported.

    It is understood that consortiums were asked to propose self-funded financing arrangements for the project.

    The first phase of the tram scheme is a 22.4-kilometre-long line with 17 stations, operated by 20 trams. It will link Al-Ula International airport to five of the area’s historical regions.

    The scope of work includes the design and construction of a tram depot, tram tracks, technical buildings, station buildings and other associated infrastructure.

    In June, MEED exclusively reported that the RCU had asked firms to submit their final offers for a contract to build tramway infrastructure at the Al-Ula development.

    The RCU issued a request for proposals in June last year and received commercial bids for the project on 10 November.

    France’s Systra is the consultant.

    In October 2023, the RCU announced that France’s Alstom will supply rolling stock and systems for the Al-Ula tram scheme.

    The RCU unveiled an investment plan worth SR57bn ($15bn) to regenerate Al-Ula in April 2021. About $3.2bn has been allocated for infrastructure development, including the tram and renewable power generation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072614/main.jpg
    Yasir Iqbal
  • Contractors submit bids for $1.4bn Kuwait oil pipeline

    12 November 2025

    Register for MEED’s 14-day trial access 

    A low bid of KD419m ($1.4bn) has been submitted on an oil pipeline project in Kuwait, according to figures published by the country’s Central Agency for Public Tenders (Capt).

    The bid was submitted by local contractor Alghanim International General Trading & Contracting.

    The contract was tendered by state-owned upstream operator Kuwait Oil Company (KOC) and covers the construction of crude oil pipelines and associated works.

    The full list of bidders and prices is:

    • Alghanim International General Trading & Contracting – KD419m ($1.4bn)
    • Mechanical Engineering & Construction Company – KD422.5m
    • Al-Dar Engineering & Construction Company – KD425.7m
    • Combined Group Contracting Company – KD502m
    • Heisco – KD506.1m
    • Sayed Hameed Behbehani & Sons – KD674m

    Kuwait is trying to boost project activity in its upstream sector.

    The country’s national oil company, Kuwait Petroleum Corporation, is aiming to increase oil production capacity to 4 million barrels a day (b/d) by 2035.

    In August, Kuwait announced that it was producing 3.2 million b/d.

    Earlier this month, KOC said it was planning to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15072150/main.jpg
    Wil Crisp