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
  • Mace confirms Muscat cultural complex appointment

    3 September 2026

    UK-headquartered engineering firm Mace Consult has confirmed its appointment to manage the construction of the Sayyid Tarik Bin Taimur Cultural Complex in the Al-Seeb area of Muscat.

    The firm will provide project leadership, programme management, commercial oversight and delivery assurance services.

    The complex will be developed on a 400,000-square-metre (sq m) site. Centred on an urban plaza, it will bring together a range of cultural and institutional facilities.

    These include a 23,000 sq m national library, a 15,500 sq m national archives, four facilities buildings with a combined area of 14,000 sq m, and a 5,000 sq m energy and data centre.

    At the heart of the development is the national theatre, which will include a 1,000-seat auditorium and a 250-seat auditorium. The facilities will sit within landscaped gardens and water features, alongside a signature canopy structure.

    In October 2023, the Ministry of Culture, Sports & Youth awarded a design-and-build contract for the complex to a joint venture of local firm Saif Salim Issa Al-Harrasi and Turkiye’s Sembol Construction, MEED reported.

    In January 2026, UAE-based steel structure manufacturer Emirates Building Systems, a wholly owned subsidiary of Dubai Investments, won a contract to deliver the project’s structural steel package.

    Last month, Kuwait-based engineering and architecture consultancy SSH was appointed as the project’s construction supervision consultant.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19314737/main.jpg
    Yasir Iqbal
  • Read the September 2026 MEED Business Review

    3 September 2026

    Download / Subscribe / 14-day trial access

    Nuclear energy is becoming an increasingly important part of the GCC’s long-term power strategy, as governments seek to strengthen energy security, diversify generation and meet decarbonisation goals.

    Saudi Arabia’s civil nuclear cooperation deal with the US marks a major step forward for its plans to develop its first commercial nuclear power plant, while rising electricity demand across the region is creating further momentum.

    With the UAE already operating the Middle East’s first commercial nuclear power station, Saudi Arabia targeting up to 17GW by 2040 and Bahrain exploring small modular reactor technologies, our latest Agenda feature examines the growing role of nuclear energy in the GCC’s future power projects pipeline.

    September’s Market Focus turns to Kuwait, where the country’s oil-dependent economy has weathered unprecedented disruption, yet major investment and infrastructure deals point to resilience.

    This edition also includes a downstream industry report, exploring the accelerating investment in gas processing and associated infrastructure across Mena, the major projects driving spending, and the growing focus on NGL recovery, efficiency and higher-value gas products.

    In the latest issue, we speak to Emsteel chief commercial officer Michael Rion about the Abu Dhabi steelmaker’s plans to strengthen its position in domestic and international markets, including the launch of its ES600 steel rebar and the expansion of its long-standing partnership with Adnoc Group.

    We also examine the GCC’s accelerating tunnelling boom, as major metro, sewerage and road projects increasingly move underground. The feature explores the scale of investment, the contractors and technology driving the market, and the challenges facing the region as demand for tunnelling expertise and equipment grows.

    We hope our valued subscribers enjoy the September 2026 issue of MEED Business Review. 

     

    Must-read sections in the September 2026 issue of MEED Business Review include:

    > AGENDA: Gulf nuclear revival takes shape

    INDUSTRY REPORT:
    Downstream
    > Gas processing takes centre stage in Mena region

    > INTERVIEW: Emsteel persists with business productivity and efficiency

    > TUNNELS: The Gulf’s next construction boom is happening underground

    > KUWAIT MARKET FOCUS: 
    > COMMENT: Kuwait keeps dealmaking alive under fire
    > GOVERNMENT: Kuwait shows tentative signs of economic development
    > BANKING: Necessity is the mother of invention for Kuwaiti lenders
    > OIL & GAS: Regional war to have lasting impact on Kuwaiti oil sector
    > POWER & WATER: Kuwait utilities investment shifts towards water
    > CONSTRUCTION: Kuwait construction holds up despite regional strife
    > MARKET TALK: Kuwait stands resilient amid regional tensions
    > DATABANK: Kuwait’s economic gains are dented by conflict in 2026

    > MEED COMMENTS: 
    >     Cash is king for Dubai construction
    > Aramco moves apace with Jafurah unconventional gas campaign
    > Neom’s next phase is crucial to green hydrogen pipeline
    > Oman opens door to direct power sales

    > GULF PROJECTS INDEX: Qatar leads gains as Gulf total holds

    > JUNE 2026 CONTRACTS: Middle East contract awards

    > ECONOMIC DATA: Data drives regional projects

    > OPINION: The history of false dawns

    > BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19308287/main.gif
    MEED Editorial
  • Contractors submit bids for Dukhan field facilities upgrade

    3 September 2026

     

    Contractors have submitted bids to QatarEnergy for a key tender to upgrade facilities at the Dukhan oil field in Qatar, about 80 kilometres west of Doha.

    Dukhan, Qatar’s first and only onshore oil field, was discovered in 1938, with oil production starting in 1939-40. The country currently produces about 1.8 million barrels a day (b/d) of crude, with the Dukhan field accounting for about 350,000 b/d of output.

    QatarEnergy issued the tender for the Dukhan production facilities upgrade (DPFU) Phase 1B (Part 2) project on 8 June, and initially set a bid submission deadline of 26 July for contractors, which it later extended to 9 August.

    The following local contractors, among others, are understood to have submitted bids for the DPFU Phase 1B (Part 2) tender, according to information obtained by MEED Projects:

    • Doha Petroleum Construction Company (Dopet)
    • Galfar Al-Misnad Engineering & Contracting
    • Qatar Engineering & Construction Company (Q-con)

    QatarEnergy originally stipulated a bond validity of 150 days (until 23 December) and a bid validity of 120 days (until 23 November) for the project.

    The engineering, procurement, installation and commissioning (EPIC) scope covers upgrades to 56 oil manifolds, 108 gas-lift manifold slots, chemical injection systems and key pumping facilities, along with associated piping, instrumentation, control, electrical and civil works.

    The scope includes demolition of obsolete equipment, degassing station enhancements, and full testing and handover. It also encompasses additional capacity enhancement works under Part 3, mainly the installation of new oil export and produced-water transfer pumps, along with supporting facility modifications.

    The project involves complex interfaces and shutdown-critical activities requiring expertise in live-plant integration.

    The Dukhan oil field extends over an area of about 80km by 8km and consists of four reservoirs: Khatiyah, Fahahil, Jaleha and Diyab. The first three are oil reservoirs. The more recently developed Diyab reservoir contains non-associated gas and is estimated to hold around 2 billion barrels of crude oil reserves. Diyab lies on the southern flank of Dukhan.

    ALSO READ: Frontrunners emerge for Qatar offshore oil field expansion
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19312615/main.jpeg
    Indrajit Sen
  • Oman tenders advisory for 3GW solar IPPs

    3 September 2026

    Nama Power & Water Procurement Company (Nama PWP) has invited bids for legal consultancy services for the development of three 1GW solar independent power projects (IPPs).

    The projects will connect to Oman’s main interconnected system (MIS) and are targeted to reach commercial operation by the second quarter of 2030.

    The bid submission deadline is 10 October.

    The state offtaker has now tendered three separate consultancy contracts for the solar IPPs, including two issued in July.

    The bid submission deadline for the financial and commercial consultancy services tender is 10 September.

    Earlier, on 15 July, a technical advisory tender was issued for the three projects as part of a 4GW programme.

    As MEED reported, the financial advisory tender covers four 1GW solar projects connected to the MIS, also targeting commercial operation by the second quarter of 2030.

    It is understood that bids were submitted for this contract on 26 August.

    Oman Electricity Transmission Company (OETC) had earlier outlined the planned grid connection for four 1GW solar IPPs as part of the sultanate’s renewable energy expansion through 2030.

    The projects are included in OETC’s Five-Year Annual Transmission Capability Statement for 2026-30.

    The first, the 1GW Adam solar IPP, is scheduled for grid integration in 2028 and is further ahead in the procurement process, with Nama PWP issuing a request for qualification for the project in June.

    OETC said it expects the 1GW Al-Kamil 2 solar project to be integrated in 2030 through the planned Sadaf 400kV grid station. The 1GW Dhofar solar IPP and 1GW Mahadha solar IPP are also scheduled for integration in 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19311796/main.jpg
    Mark Dowdall
  • US firm wins work on QatarEnergy NGL train project

    3 September 2026

    Register for MEED’s 14-day trial access 

    US-based Nessco has  that it has won a subcontract to provide telecommunications, radio and security systems for QatarEnergy’s project to add a fifth natural gas liquids (NGL) train at its fractionation complex in Qatar’s Mesaieed Industrial City.

    The subcontract was awarded to Houston-headquartered Nessco by India’s Larsen & Toubro Energy Hydrocarbon (LTEH), in its capacity as the main contractor performing engineering, procurement and construction (EPC) works on the NGL-5 project.

    MEED reported last September that QatarEnergy had selected a consortium of LTEH and Greece-headquartered Consolidated Contractors Group (CCC) to execute EPC works on the NGL-5 project.

    The aim of the project, estimated to be worth $2.5bn, is to build a fifth NGL train with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

    In a statement confirming its contract award in October last year, LTEH said the scope of work on its contract “encompasses engineering, procurement, construction, installation and commissioning of a natural gas liquids plant and allied facilities for processing rich associated gas (RAG). This also involves all associated utilities and offsites and integration with existing facilities.

    “The RAG sourced from offshore and onshore oil fields will be treated at the plant to remove impurities like H2S, CO2 and H2O, producing value-added products such as lean sales gas, ethane, propane, butane and hydrocarbon condensate,” Bombay Stock Exchange-listed L&T said. 

    Under the consortium arrangement, LTEH, as the lead partner, will be responsible for engineering and procurement, while CCC will handle construction activities.

    Project scope of work

    Associated gas from the PS1, PS2 and PS3 offshore fields, as well as the Dukhan onshore field, is processed at existing facilities at the NGL complex in Mesaieed – specifically, the Fahahil stripping plant, NGL-1 and Qapco ethane recovery units.

    The planned NGL-5 facility will replace these three units at the Mesaieed complex and process gas from the PS1, PS2 and Dukhan fields.

    The scope of work on the project involves EPC of units for the following functions:

    • Feed gas compression
    • Slug handling
    • Gas sweetening
    • Dehydration
    • Mercury removal
    • NGL fractionation
    • NGL recovery
    • Product treatment
    • Propane refrigeration
    • Acid gas enrichment
    • Sulphur recovery
    • Anti-flaring
    • Utilities
    • Boil-off gas recovery
    • Drains and collection networks
    • Effluent water treatment plant
    • Carbon dioxide treatment and sequestration/export
    • Brownfield modifications
    • Product rundown pipelines

    QatarEnergy intends to start operations at the NGL-5 facility by the second quarter of 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19310738/main5414.jpeg
    Indrajit Sen