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  BP advances Egypt offshore gas plans

  1 April 2026

  London-headquartered BP is making progress on its campaign to drill five wells in Egypt’s portion of the Mediterranean, according to a statement from the North African country’s oil and gas ministry.

  The Fayoum 4 well is scheduled to start production in July, with an estimated output of around 100 million cubic feet of gas a day, according to the ministry.

  It said it expected the well to bolster domestic supply during the summer, helping meet demand from power stations and reducing Egypt’s import bill.

  BP is planning to invest about $1.5bn in exploration and field development in Egypt during the 2026/27 fiscal year.

  Karim Badawi, minister of petroleum and mineral resources, said that intensifying drilling for new wells is a top priority for the ministry, both to unlock fresh exploration opportunities and to increase output from existing fields.

  Egypt is currently a net importer of natural gas, and due to this, its economy is expected to be severely impacted by the recent spike in global gas prices as a result of the US and Israel’s war with Iran.

  ---

  MEED’s March 2026 report on Egypt includes:

  > COMMENT: Egypt’s crisis mode gives way to cautious revival
  > GOVERNMENT: Egypt adapts its foreign policy approach
  > ECONOMY & BANKING: Egypt nears return to economic stability
  > OIL & GAS: Egypt’s oil and gas sector shows bright spots
  > POWER & WATER: Egypt utility contracts hit $5bn decade peak
  > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

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

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16212519/main.jpg

  Wil Crisp
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  Algerian chemicals project faces delays

  1 April 2026

  

   

  The $1.1bn project to develop a linear alkyl benzene (LAB) plant in Algeria’s Skikda region is facing delays, according to industry sources.

  Under the terms of the original contract, it was expected to be completed over 44 months, with project execution starting in March 2024.

  One source said: “There have been some issues with the project and it is not currently progressing in line with the original schedule that was set out.”

  If the project had kept to the original schedule, it would have been completed in November 2027.

  The project client is Algeria’s national oil and gas company Sonatrach.

  When asked to comment on the delay, a spokesperson for Sonatrach said: “Please be informed that we do not confirm, deny or comment on rumours, speculation or any non-public information regarding project schedules, progress or commercial matters.”

  The main contract for the LAB project was awarded to Tecnimont, a subsidiary of Italy’s Maire, in March 2024.

  The contract it won uses the engineering, procurement, construction and commissioning (EPCC) contract model.

  It was originally tendered by Sonatrach with a technical bid submission deadline of 3 March 2023, which was then extended several times.

  The scope of the project entails the implementation of a new LAB plant with an annual production capacity of 100,000 tonnes, and the associated utilities, offsites and interconnections with the existing facilities.

  In December, China’s Jilin Chemical Construction (JCC) won a contract worth more than $100m to work on the project.

  Its contract is expected to be completed over 17 months after activation in March this year.

  JCC has said that its project scope includes engineering work “involving all disciplines”.

  JCC is wholly owned by China Huanqiu Contracting & Engineering and is affiliated to China National Petroleum Corporation (CNPC).

  Linear alkyl benzene

  LABs are a family of organic compounds mainly produced as intermediaries in the production of surfactants. Since the 1960s, LAB has emerged as the dominant precursor of biodegradable detergents.

  Hydrotreated kerosene is a typical feedstock for high-purity linear paraffins, which are subsequently dehydrogenated to linear olefins.

  Alternatively, ethylene can be oligomerised to produce linear alkenes. The resulting linear mono-olefins react with benzene in the presence of a catalyst to produce the LABs.

  Sonatrach has been planning to develop a large LAB project for at least a decade.

  In 2016, the energy major said it was planning a LAB project with a capacity of 100,000 tonnes a year (t/y) and that it would be developed in either Skikda or Arzew.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16212518/main.png

  Wil Crisp
• 
  Dubai approves $272m stimulus package

  31 March 2026

  Register for MEED’s 14-day trial access 

  Dubai has launched a AED1bn ($272m) economic support package for businesses operating in the emirate. Approved by Crown Prince of Dubai Sheikh Hamdan Bin Mohammed Bin Rashid Al-Maktoum, the measures roll out from 1 April 2026.

  The stimulus targets immediate liquidity through a broad deferral of government fees over the next three to six months. In the hospitality sector, hotels can now postpone 100% of sales and tourism fees for 90 days. This financial breathing room is designed to enhance cash flow and maintain the sector’s post-2025 momentum.

  Trade and logistics are also set for a boost via extended customs grace periods. Dubai Customs will move its data grace period from 30 to 90 days for compliant firms. Simultaneously, the government is streamlining residency permit processes. The goal is to lower the barrier for global talent entering the emirate’s labour market.

  Further structural reforms include the Virtual Warehouses Initiative to digitise the movement of temporary imports. The Council also approved the Dubai Empowerment Strategy to raise living standards for Emirati families. This is paired with a new Health and Safety Strategy for Workers’ Accommodations to improve conditions across the industrial and construction workforce.

  In a statement, Sheikh Hamdan emphasised that the package aims to turn global challenges into local opportunities. He added that the Executive Council remains focused on providing stability to families and businesses.

  Dubai’s economic support package is the latest to be announced in the UAE during the Iran War. Earlier in March, the Central Bank of the UAE (CBUAE) approved a comprehensive Financial Institution Resilience Package designed to reinforce the stability of the banking sector as the UAE economy deals with extraordinary market conditions resulting from the conflict.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16198544/main.jpg

  Colin Foreman
• 
  Egypt approves $1.7bn capital spending in 2026-27

  31 March 2026

  Egypt’s cabinet has approved E£90bn ($1.7bn) in capital spending as part of the draft 2026-27 budget announced this week.

  Total spending under the new budget is projected to be about 13% higher than this year’s, aimed at supporting economic growth and reducing debt.

  Expenditure is estimated at E£5.1tn ($98bn), while revenue is projected at about E£4tn ($77bn), up 27.6% compared with the previous budget.

  According to remarks posted on the cabinet’s website, Finance Minister Ahmed Kouchouk said the draft budget – still subject to parliamentary approval – sets aside E£90bn for projects and other economic activities and seeks to lower the overall deficit by 2.1 percentage points to 4.9%.

  The budget will take effect on 1 July 2026 and aims to bring public debt down to around 78% by the end of the fiscal year, from nearly 78% the year before.

  ---

  MEED’s March 2026 report on Egypt includes:

  > COMMENT: Egypt’s crisis mode gives way to cautious revival
  > GOVERNMENT: Egypt adapts its foreign policy approach
  > ECONOMY & BANKING: Egypt nears return to economic stability
  > OIL & GAS: Egypt’s oil and gas sector shows bright spots
  > POWER & WATER: Egypt utility contracts hit $5bn decade peak
  > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

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

   

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16186238/main.jpg

  Yasir Iqbal
• 
  Abu Dhabi receives four bids for Al-Nouf IPP

  30 March 2026

  State utility Emirates Water & Electricity Company (Ewec) has announced it has received four bids for the development of the 3.3GW Al-Nouf independent power producer (IPP) project in Abu Dhabi.

  Located within the newly established Al-Nouf complex, the facility will be the largest single-site, carbon-capture-ready, combined-cycle gas turbine plant in the UAE. 

  Ewec issued a request for proposals for the project last August. It received statements of qualifications for the contract in April 2025.

  Earlier this month, MEED exclusively revealed that Aljomaih Energy & Water (Saudi Arabia) and Sumitomo (Japan) were among the bidders for the project.

  The groups that submitted bids include the following three consortiums and one individual company:

  • Aljomaih Energy & Water (Saudi Arabia) / Sembcorp Industries (Singapore) / EDF Power Solutions (France)
  • Engie (France) / Korea Overseas Infrastructure & Urban Development Corporation (Kind) / Korea Western Power Company (Kowepo)
  • Korea Electric Power Corporation (Kepco) / Etihad Water & Electricity (EtihadWE)
  • Sumitomo (Japan) 

  As MEED previously reported, the project will follow the model of Abu Dhabi’s IPP programme, in which developers enter into a long-term agreement with Ewec as the sole procurer. 

  This involves the development, financing, construction, operation, maintenance and ownership of the plant, with the successful developer or developer consortium owning up to 40% of the entity. The remaining equity will be held indirectly by the Abu Dhabi government.

  The project site was selected for its ability to accommodate both seawater-cooled power generation and reverse osmosis desalination technologies.

  The plant will have the capacity to support several utility-scale energy and desalination projects in the future.

  The facility is scheduled to begin commercial operations in the third quarter of 2029.

  Taweelah C IPP

  Last year, the Taweelah C IPP became the first gas-fired power plant project to be procured by Abu Dhabi since 2020, when Ewec awarded Japan’s Marubeni Corporation the contract to develop the Fujairah 3 IPP.

  Ewec is procuring the 2,500MW gas-fired IPP, which will be located in the Al-Taweelah power and desalination complex, approximately 50 kilometres to the northeast of Abu Dhabi.

  It is understood that three groups have submitted bids for the developer contract. These are:

  • Sumitomo (Japan) / Korean Midland Power / Korea Overseas Infrastructure & Urban Development Corporation 
  • Aljomaih Energy & Water (Saudi Arabia)  / Sembcorp (Singapore)
  • Etihad Water & Electricity (UAE) / Korea Western Power (Kowepo) / Kyuden (Japan)

  A team of UK-based Alderbrook Finance and US-based Sargent & Lundy is providing financial and technical advisory services to Ewec for the Taweelah C IPP.

  The power purchase agreement for the project was previously expected to be signed by the end of 2025, with the project scheduled to begin commercial operations in the fourth quarter of 2028.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16185238/main.jpg

  Mark Dowdall