meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi chemical ambitions define Mena downstream sector

28 December 2023

 

Saudi Arabia is moving ahead with its ambition to become one of the world’s largest petrochemicals producers by the end of this decade.

Its global liquids-to-chemicals programme involves expanding its portfolio of petrochemical assets both at home and abroad.

State enterprise Saudi Aramco and its petrochemicals-producing subsidiary Saudi Basic Industries Corporation (Sabic) have been tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemical crackers, which include greenfield developments and expansions of existing facilities, will be built in both Saudi Arabia and overseas markets.

Aramco’s global liquids-to-chemicals programme aims to convert 4 million barrels a day (b/d) of its oil production into high-value petrochemicals and chemical feedstocks by 2030.

With a total capital expenditure by Aramco and Sabic of up to $100bn, it is the Middle East and North Africa’s largest petrochemical capital expenditure programme ever, and will generate a robust volume of work for consultants and contractors in the run-up to 2030.

Aramco has divided its liquids-to- chemicals programme in Saudi Arabia into four main projects. It took a major step forward in September by appointing project management consultants (PMC) for the different segments
of this massive petrochemicals investment scheme.

Aramco has selected the US’ KBR, France’s Technip Energies, UK-based Wood Group and Australia-headquartered Worley to provide PMC services for the four projects, which include: 

  • Project East (PMC 1) – involves converting the Saudi Aramco Jubail Refinery Company (Sasref) complex in Jubail into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker. The project also involves building an ethane cracker that will draw feedstock from the Sasref refinery.
  • Project West (PMC 2) – involves converting the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex through the addition of a mixed-feed cracker. Aramco and state-owned China Petroleum & Chemical Corporation (Sinopec) signed a memorandum of understanding (MoU) in October for joint investment in the project, known as the Yanbu Refinery+ project.
  • Project X (PMC 3) – involves converting the Saudi Aramco Mobil Refinery Company (Samref) complex in Yanbu into an integrated refinery and petrochemicals complex by building a mixed-feed cracker. 
  • Project RTC (PMC 4) – involves establishing a crude oil-to-chemicals (COTC) complex in Ras al-Khair in the Eastern Province. Sabic is a partner in the Ras al-Khair COTC project.

The Saudi energy giant is expected to start a separate tendering exercise for the provision of front-end engineering and design (feed) services on the projects in the future. Feed contracts are scheduled to be awarded in 2024, while the main EPC contracts are due for award in 2025.

Nigeria-Morocco gas pipeline

Progress on a cross-country pipeline spanning 13 states is bound to be slow. But the geopolitical importance and economic benefits of the Nigeria-Morocco gas pipeline project have ensured that the parties involved continue to make things tick.

The project’s total cost is estimated at a mammoth $25bn. Nigerian National Petroleum Corporation (NNPC) was reported in April to be preparing to invest $12.5bn to secure a 50 per cent equity stake in the project.

The project will extend for 5,600 kilometres, originating in Nigeria and passing through Benin, Togo, Ghana, Ivory Coast, Liberia, Sierra Leone, Guinea, Guinea Bissau, Gambia, Senegal and Mauritania before terminating in Morocco.

It will connect to the Maghreb-Europe gas pipeline and the European gas network. The landlocked states of Niger, Burkina Faso and Mali will also come under the purview of the pipeline.

The countries signed an MoU with Morocco’s National Office of Hydrocarbons and Mines in December 2022. Morocco will host 1,672km of the pipeline. 

The first phase of the feed work has been completed, and the second phase of the feed is under way.

Kuwait petrochemicals

There has been little movement, meanwhile, on Kuwait’s Al-Zour petrochemicals complex, although state-owned Kuwait Integrated Petroleum Industries Company (Kipic) is continuing with feasibility studies on the estimated $10bn project.

The operator has not made a final investment decision (FID) on the project and has not revealed a schedule for when it will be approved and tendered.

The fact that Kipic is conducting more feasibility studies on the products the facility should produce is likely to exacerbate concerns that an overhaul of its scope is being considered. This would lead to a long delay before the main contracts are tendered. 

The Al-Zour petrochemicals project was first announced in 2006. The planned complex will be integrated with the Al-Zour refinery, which has a nameplate capacity of 615,000 b/d, and was commissioned recently.

Abu Dhabi LNG project

Abu Dhabi National Oil Company (Adnoc Group) is advancing towards an FID on its planned liquefied natural gas (LNG) export terminal in Ruwais Industrial City in Abu Dhabi’s Al-Dhafrah region.

The 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 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. 

The overall value of the planned project is estimated to be more than $4.5bn, based on capital expenditure by operators on similar schemes worldwide.

Consortiums of contractors submitted technical bids for the Ruwais LNG terminal project by the deadline of 31 May.

Commercial bids for the project are due to be submitted by the end of 2023, with the award of the engineering, procurement and construction contract expected within the first quarter of 2024.

Upstream sector sees record year

https://image.digitalinsightresearch.in/uploads/NewsArticle/11343472/main.gif
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Oil tankers attacked in Iraqi waters

    12 March 2026

    Register for MEED’s 14-day trial access 

    Two tankers carrying Iraqi oil products were set on fire after being attacked in Iraq’s territorial waters near the country’s southern export terminals, increasing concerns about global energy supplies.

    After the attack, the country’s Oil Ministry said that it saw the attacks as “a worrying indicator of escalating tensions in a vital area of the global economy and energy supply”.

    It added that “the safety and safety of navigation in international sea corridors and energy supply routes should be kept away from regional conflicts”.

    The Oil Ministry said the attacks had a direct impact on the stability of the global economy and energy markets, as well as putting the lives of civilians and workers in the maritime transport sector at risk.

    Farhan Al-Fartousi, from Iraq’s General Company for Ports, told state television that one crew member had been killed in the attack and that 38 crew members had been rescued.

    Iraq’s state-owned oil marketing company Somo said that the Maltese-flagged oil tanker Zefyros was attacked as it was preparing to enter the port of Khor Al-Zoubair, where it would have taken on board an additional 30,000 tonnes of liquid naphtha.

    The second targeted vessel, Safesea Vishnu, was sailing under the Marshall Islands flag and was chartered by an Iraqi company, according to Somo.

    Iraq’s oil production has fallen steeply since the conflict began, from 3.3 million barrels a day (b/d) to less than 1 million b/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15951323/main.png
    Wil Crisp
  • Chevron yet to agree terms for Iraq oil field takeover

    12 March 2026

     

    US-based oil company Chevron is yet to agree terms with Iraqi state-owned Basra Oil Company (BOC) for its potential takeover of Iraq’s West Qurna-2 oil field, according to industry sources.

    Last month, Chevron signed a preliminary agreement with BOC to explore taking control of the West Qurna-2 oil field.

    Until recently, West Qurna-2 was operated by Russia’s Lukoil, which faces a 28 February deadline to divest its assets in Iraq under sanctions.

    One industry source said: “Chevron is yet to agree terms, and it has made it clear that it wants different terms to the contract that Lukoil had.”

    In January, Iraq’s cabinet approved temporarily nationalising petroleum operations at the West Qurna-2 oil field until a new operator was found.

    Lukoil declared force majeure at the West Qurna-2 oil field in November, after sanctions by the UK, EU and US were announced in October.

    The Russian company had a 75% stake in the asset.      

    Prior to Russia’s Lukoil declaring force majeure, Iraq’s state oil authorities froze all cash and crude payments to Lukoil in compliance with the sanctions.

    In a statement released on 1 December 2025, Iraq’s Oil Ministry said that it had extended “direct and exclusive invitations to a number of major American oil companies”.

    Awarded to Lukoil in 2009, West Qurna-2 lies about 65 kilometres northwest of Basra in southern Iraq and produces about 480,000 barrels a day (b/d) of oil, accounting for roughly 10% of the country’s total oil output.

    At the same meeting on 23 February, Chevron also signed a deal relating to the development of the Nasiriyah field, four exploration sites in the province of Dhi Qar and a field in the province of Salahaddin.

    Chevron signed an agreement in principle with Iraq in August 2025 to develop the Nasiriyah oil project in the province of Dhi Qar.

    At the time, Iraq said it expected the Nasiriyah project to reach a production capacity of 600,000 b/d within seven years.

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

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15944830/main.png
    Wil Crisp
  • Egyptian/Saudi firms to invest $1.4bn in Cairo project

    12 March 2026

    Saudi Arabia’s Sumou Investment, through its subsidiary Adeer International, and Egyptian developer Paragon Developments have signed an agreement to jointly develop a mixed-use project in Mostakbal City, East Cairo.

    According to local media reports, the project will cover about 500,000 square metres and will be developed with a total investment of about $1.4bn.

    The project will be developed by Paragon-Adeer, a joint venture of Paragon Developments and Adeer International.

    The announcement follows a $1.4bn deal signed in July last year between Adeer International and another Egyptian developer, Midar, to jointly develop a mixed-use project in Mostakbal City.

    Midar, Sumou Investment and Hassan Allam Properties are partnering to develop $2bn in hospitality and leisure projects across several locations in Cairo within Midar-owned land parcels. 

    According to GlobalData, Egypt’s residential construction sector is expected to grow by 8.3% from 2026 to 2029, supported by investments in the housing sector and the government’s focus on addressing the country’s growing housing deficit amid a rising population.

    The commercial construction sector is expected to register real-term growth of 6.6% during 2026-29, supported by a rebound in tourism and hospitality markets and an improvement in investment in office buildings and wholesale and retail trade activities.

    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/15939746/main.jpg
    Yasir Iqbal
  • Qiddiya gives high-speed rail prequalifying firms more time

    12 March 2026

     

    Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company (QIC) and the National Centre for Privatisation & PPP, has set a new deadline of 16 April for firms to submit prequalification statements for the development of the Qiddiya high-speed rail project in Riyadh

    The prequalification notice was issued on 19 January, with an initial submission deadline of 17 March.

    The clients are considering delivering the project using either a public-private partnership (PPP) model or an engineering, procurement, construction and financing (EPCF) basis.

    Firms have been asked to prequalify for one of the two models.

    Last month, the clients invited interested firms to a project briefing session on 23 February at Qiddiya Entertainment City.

    The Qiddiya high-speed rail project will connect King Salman International airport and the King Abdullah Financial District (KAFD) in Riyadh with Qiddiya City.

    Also known as Q-Express, the railway line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.

    The line is expected to be developed in two phases. The first phase will connect Qiddiya with KAFD and King Khalid International airport.

    The second phase will start from a development known as the North Pole and travel to the New Murabba development, King Salman Park, central Riyadh and Industrial City in the south of Riyadh. 

    In November last year, MEED reported that more than 145 local and international companies had expressed interest in developing the project.

    These included 68 contracting companies, 23 design and project management consultants, 16 investment firms, 12 rail operators, 10 rolling stock providers and 16 other services firms.

    In November 2023, MEED reported that French consultant Egis had been appointed as the technical adviser for the project.

    UK-based consultancy Ernst & Young is acting as the transaction adviser on the project. Ashurst is the legal adviser.

    Qiddiya is one of Saudi Arabia’s five official gigaprojects and covers a total area of 376 square kilometres (sq km), with 223 sq km of developed land. 

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

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15939059/main.gif
    Yasir Iqbal
  • Wynn resumes construction on Ras Al-Khaimah project

    12 March 2026

    Register for MEED’s 14-day trial access 

    US-based Wynn Resorts said on 11 March that site activity on its resort project on Ras Al-Khaimah’s Al-Marjan Island has restarted after work was temporarily halted. New measures are in place to ensure the safety and security of the workforce. 

    “Wynn employees have been offered the opportunity to work from abroad, if their home embassy recommends they do so,” the company added.

    The $5.1bn project involves the construction of an integrated resort with 1,500 rooms, high-end shopping, MICE venues and the UAE’s first confirmed gaming area. It is scheduled to open in spring 2027.

    The 70-floor 283-metre-tall main structure was topped out in December 2025.

    Financially, Wynn Resorts holds a 40% equity stake in the joint-venture development company alongside local partners Marjan and RAK Hospitality Holding. Wynn reported in late 2025 that about two-thirds of the project’s budget had already been spent or contractually committed, which provides a degree of protection against fluctuating material costs.

    In 2025, Wynn Resorts said it had secured a $2.4bn construction facility to finance the development of the project. In a statement at the time, Wynn said the financing is the largest hospitality financing transaction in UAE history. The loan, available to Wynn Al-Marjan Island FZ-LLC – a subsidiary of the 40%-owned joint venture – is denominated in both AED and US dollars.

    Structured as a delayed draw facility, the seven-year term loan offers competitive market interest rates and substantial financial flexibility for the joint-venture partners.

    The syndicate includes prominent regional and international banks, with Abu Dhabi Commercial Bank and Deutsche Bank serving as joint coordinators. The joint coordinators, along with First Abu Dhabi Bank, Emirates NBD Capital and the National Bank of Ras Al-Khaimah, acted as mandated lead arrangers, bookrunners and underwriters, and Sumitomo Mitsui Banking Corporation acted as lead arranger. First Abu Dhabi Bank is also the agent and security agent for the lenders.

    Dubai-based Alec was appointed as the project’s main contractor in 2023. Earlier in March, Alec said it had resumed on-site and in-office operations across its UAE projects from 4 March.

    In a statement, the company said that it is working closely with clients to ensure a prompt and safe return to full-scale activity.

    The move follows a temporary work-from-home policy introduced across the company’s UAE operations in response to ongoing events, as Alec Holdings reaffirmed its commitment to protecting its workforce while continuing to deliver in clients’ best interests.

    During the same period, the company said its operations in Saudi Arabia remained fully operational.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15952339/main.jpg
    Colin Foreman