meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi downstream programmes gain traction

13 September 2024

Progress on a programme as mammoth as Saudi Aramco’s liquids-to-chemicals scheme is expected to be measured and laboured. The programme’s central ambition is to derive greater economic value from every barrel of crude produced in the kingdom by converting 4 million barrels a day (b/d) of Aramco’s oil production into high-value petrochemicals and chemicals feedstocks by 2030.

Aramco and its subsidiary, Saudi Basic Industries Corporation (Sabic) – the two primary stakeholders of the liquids-to-chemicals programme – are still in the initial phase and are giving shape to various projects and components.

Considering that the operators are “still working out” how best to attain the liquids-to-chemicals conversion goal from across their global portfolio, achieving “cohesion and synergies” with the consultants they have appointed during the conceptualisation phase is proving to be a “sticking point”, several sources told MEED.

While day-to-day progress might appear sluggish, Amin Nasser, Aramco’s president and CEO, assured earlier in the year that the Saudi energy giant is on track to achieve its crude oil-to-chemicals (COTC) conversion goal by 2030.

“We are on track to achieve our target of 4 million b/d liquids-to-chemicals [conversion capacity] by 2030,” Nasser said during an online press conference held on 30 May to discuss Aramco’s secondary shares offering.

“We’re slightly above 2 million b/d liquids-to-chemicals [output], so progressing very well in our programme,” he said in response to a question by MEED during the media briefing.

Liquids-to-chemicals programme

When completed, the liquids-to-chemicals programme will make Saudi Arabia one of the world’s largest petrochemicals producers. Aramco, along with Sabic, have been tasked with establishing 10-11 large mixed-feed crackers by 2030. These petrochemicals crackers, which include greenfield developments and expansions of existing facilities, will be built both in Saudi Arabia and in overseas markets.

The Saudi energy giant is said to have been allocated a total capital expenditure budget of up to $100bn for projects as part of this campaign, MEED has previously reported.

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

Aramco selected US firm 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. China’s Rongsheng Petrochemical Company recently signed a preliminary agreement with Aramco to potentially become a 50% investor in this project.
  • Project West (PMC 2) – involves converting the Yanbu Aramco Sinopec Refining Company (Yasref) complex in Yanbu into an integrated refinery and petrochemicals complex by adding a mixed-feed cracker. Aramco and state-owned China Petroleum & Chemical Corporation (Sinopec) signed a memorandum of understanding 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 COTC complex in Ras Al-Khair in the Eastern Province. Sabic is a partner in the Ras Al-Khair COTC project.

Aramco has initiated a separate tendering exercise to provide 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.

Ramping up gas processing capacity

To process incremental volumes of gas entering the grid due to Aramco spiking its conventional and unconventional gas production, the state enterprise has already spent $16.5bn on gas processing and transportation projects this year.

In April, Aramco awarded $7.7bn in EPC contracts for a project to expand the Fadhili gas plant in the Eastern Province of Saudi Arabia. The project is expected to increase the plant’s processing capacity from 2.5 billion cubic feet a day (cf/d) to up to 4 billion cf/d.

On 30 June, Aramco awarded 15 lump-sum turnkey contracts for the third expansion phase of the Master Gas System (MGS-3), worth $8.8bn. Aramco has divided EPC works on the MGS-3 project into 17 packages. The first two packages involve upgrading existing gas compression systems and installing new gas compressors. The 15 other packages relate to laying gas transport pipelines at various locations in the kingdom.

The expansion will increase the size of the network and raise its total capacity by an additional 3.15 billion cf/d by 2028 through installing about 4,000 kilometres of pipelines and 17 new gas compression trains.

Going forward, Aramco is expected to pursue other projects this year to boost the gas processing potential of its key plants, such as Haradh, Shedgum and Uthmaniya.

Aramco has already received interest from contractors for the main tender for a project to expand the Haradh Gas Oil Separation Plant 3 (GOSP 3). The state enterprise is in the feed stage of a separate project to expand the Shedgum and Uthmaniya plants, with the main EPC tender expected to be issued by the end of the year.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12521278/main.gif
Indrajit Sen

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

Click here to register
Exclusive from Meed
Related Articles
  • Contractor groups prequalify for Dubai Metro Gold Line

    13 October 2026

     

    Six contracting groups submitted prequalification statements on 9 October for the contract to build Dubai Metro’s new Gold Line.

    The Roads & Transport Authority (RTA) issued the request for qualification notice for the project in June, as MEED exclusively reported.

    The consortiums formed to bid for the main contract are:

    • Alstom / China Railway Engineering Corporation / National Projects Construction / Dogus Construction (France/China/local/Turkiye)
    • CRRC / Limak / Mapa Group (China/Turkiye/Turkiye)
    • Hitachi / China Harbour Engineering Company / China State Construction Engineering Corporation (Japan/China/China)
    • Siemens / Petrojet / Concord Engineering & Contracting / Rowad Modern Engineering (Germany/Egypt/Egypt/Egypt)
    • Hassan Allam / IC Ictas / Siemens (Egypt/Turkiye/Germany)
    • Larsen & Toubro / Powerchina / Wade Adams (India/China/local)

    Dubai officially announced the Gold Line in April.

    In a post on social media site X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, said the project would cost about AED34bn ($9.2bn).

    The Gold Line will increase the Dubai Metro network’s total length by 35%. The project is scheduled to be completed in September 2032.

    The fully underground line will extend for more than 42 kilometres and include 18 stations. It will pass through 15 areas of Dubai and serve 1.5 million residents.

    The project is expected to connect more than 55 under-construction real estate developments.

    The Gold Line will begin at Al-Ghubaiba in Bur Dubai and terminate at Jumeirah Golf Estates. It will connect with the existing Red and Green lines and integrate with the Etihad Rail passenger network.

    The contractor will be responsible for the design and construction of all civil works, electromechanical equipment, rolling stock and rail systems. The selected contractor will also be required to support systems maintenance and operations during an initial three-year period.

    In October last year, MEED exclusively reported that the RTA had selected US-based engineering firm Aecom to provide consultancy services for the Dubai Metro Gold Line project.

    Stage one covers concept design; stage two, preliminary design; stage three, tender-document preparation; stage four, construction supervision; and stage five, the defects-liability period.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20531469/main.png
    Yasir Iqbal
  • Egypt discusses technology cooperation with SLB

    13 October 2026

    Egypt is in talks with US-based oilfield services company SLB to expand technical cooperation in the country’s oil and gas sector, according to a statement from the Ministry of Petroleum & Mineral Resources.

    Egyptian Minister of Petroleum and Mineral Resources Karim Badawi met SLB chief executive Olivier Le Peuch in Riyadh, the ministry said.

    During the meeting, they discussed ways to strengthen their strategic partnership and expand cooperation in technology and digital transformation.

    They also discussed how SLB could support exploration and production activities, with the aim of increasing output and attracting further investment in Egypt’s oil and gas sector.

    Badawi emphasised the importance of extending the existing partnership with SLB, including its role in technology transfer and the development of technical capabilities in Egypt’s oil sector, according to the statement.

    He said Egypt should build on existing areas of cooperation and deploy advanced technological solutions to reduce exploration risk, increase recovery and production rates from existing fields, and improve operational efficiency.

    Badawi and Le Peuch also discussed progress on a seismic survey project being undertaken by SLB in partnership with France-based Viridien.

    The project includes an ocean-bottom node seismic survey covering about 95,000 square kilometres of Egypt’s eastern Mediterranean waters.

    The discussion focused on the data processing and analysis schedule, the steps required to prepare and release preliminary results, and the drilling schedule.

    Badawi and Le Peuch also discussed expanding the use of horizontal drilling technologies in Egypt. This would involve identifying suitable locations and developing a commercial and contractual model for their deployment.

    The Ministry of Petroleum & Mineral Resources and SLB are also exploring opportunities to expand the use of artificial intelligence in reservoir management and production optimisation.

    This work is being explored in partnership with the Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20517735/main.jpg
    Wil Crisp
  • Kuwait tenders gas export pipeline

    13 October 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to develop a gas export pipeline.

    The 24-inch-diameter pipeline will extend from Booster Station 171 (BS-171) to the Intermediate Slug Catcher (ISC) facility in southeastern Kuwait, passing through the tie-in point known as TP-1.

    The bid deadline is 5 January 2027. A preliminary online meeting to discuss the project is scheduled for mid-November.

    BS-171 was inaugurated in February 2018. It serves as a central gas-treatment facility for gas and condensate from several gathering centres in West Kuwait and other areas.

    The feeder gathering centres include GC-17, GC-27, GC-28 and GC-16.

    BS-171 was Kuwait’s first facility designed specifically to handle acid gas.

    The ISC facility is located about 80 kilometres from BS-171.

    KOC announced plans to tender the project last year. At the time, it said that the scope would include the installation of bidirectional pig traps above the new pipeline.

    A pig trap is a section of piping that enables a pipeline pig – a device used to clean, inspect or maintain a pipeline – to be launched or received.

    The chosen contractor will need to provide:

    • Valves
    • Piping
    • Fittings
    • Civil services
    • Structural services
    • Electrical and instrumentation services
    • Tie-ins
    • Testing services
    • Pre-commissioning services
    • Commissioning services

    The ISC facility is a major gas-handling facility in Kuwait’s Burgan area. It receives sour gas from West Kuwait oil fields before the gas is transported onwards to the Mina Al-Ahmadi gas-processing facilities.

    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:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20517716/main.jpg
    Wil Crisp
  • Developers prepare bids for 1GW Oman bess scheme

    12 October 2026

     

    Developers are preparing to submit bids for almost 1GW of standalone battery energy storage (bess) projects in Oman, a source close to the project has confirmed to MEED.

    The independent power producer (IPP) scheme includes the installation of five bess facilities with a combined power capacity of 950MW and storage capacity of 3,800MWh. Nama Power & Water Procurement Company (PWP) is procuring it.

    According to sources close to the project, a developer’s tender was floated in the summer. An initial bid submission deadline has since been extended, with bids expected to be submitted in the coming weeks.

    The largest project is a 500MW facility in Sohar, Al-Batinah North governorate, with a storage capacity of 2,000MWh. The Sohar facility is expected to connect to the grid at 220kV. The site covers approximately 149,535 square metres.

    Four further installations are planned at Al-Mabellah in Muscat governorate, Ayjah in South Al-Sharqiyah, the Jalan Bani Bu Ali wind farm site in South Al-Sharqiyah, and Sadah in Dhofar.

    The Al-Mabellah and Ayjah facilities are each planned to have a capacity of 100MW and storage capacity of 400MWh. Both are expected to connect to the grid at 132kV.

    The Jalan Bani Bu Ali installation is planned to have a capacity of 150MW and storage capacity of 600MWh. It is expected to connect to the Sadah wind farm and Jalan Bani Bu Ali wind farm substations.

    The Sadah installation is planned to have a capacity of 100MW and storage capacity of 400MWh. It is expected to connect to the Sadah wind farm substations at 132kV.

    US/India-based Synergy Consulting is the financial adviser for the procurement; Germany’s Fichtner is the technical adviser; and Germany-headquartered CMS is the legal adviser.

    Utility-scale storage

    In May, Oman’s Authority for Public Services Regulation (APSR) opened technical bids for a consultancy contract supporting a planned 1,000MW/four-hour bess project.

    As previously reported, APSR issued the request for proposals in April as part of wider plans to increase the share of renewable energy in the sultanate. 

    The sultanate’s first utility-scale solar photovoltaic (PV) plant integrated with battery energy storage (Ibri 3) entered construction at the beginning of the year, comprising a 500MW solar PV plant and a 100MWh bess system.

    Also in May, state offtaker Nama Power & Water Procurement Company signed a power purchase agreement with local firm O-Green for Oman’s first round-the-clock renewable energy project.

    Renewable energy is expected to increase from 4% of the generation mix in 2024 to 30% by 2030, driving the push for more utility-scale storage projects.

    Over roughly the same period, demand is forecast to double, reaching 10 terawatt-hours by 2031.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20511976/main.jpg
    Mark Dowdall
  • Frontrunner emerges for Saudi Arabia’s GCC rail link design

    12 October 2026

     

    French engineering firm Systra has emerged as the frontrunner to provide design consultancy services for the Saudi Arabian section of the GCC railway network, which is intended to link all six member states.

    The tender covers the concept, preliminary and issued-for-construction design stages. Saudi Arabia Railways (SAR) requires the selected consultant to review, update and complete the existing preliminary design.

    Consultants submitted proposals on 14 July, as MEED reported.

    The consultants who submitted bids included: 

    • AtkinsRealis with Khatib & Alami
    • Deutsche Bahn with ARX
    • Egis with Sener
    • Idom with Dar Al-Handasah
    • Systra

    Saudi Arabia’s section of the railway will start at Al-Khafji in the Eastern Province, near the border with Kuwait, and end at Al-Batha, on Saudi Arabia’s border with the UAE. 

    Tendering is also ongoing for a separate contract involving design management and review to oversee engineering works on the GCC railway network.

    The tender was issued on 9 September, with a submission deadline of 18 October, as MEED exclusively reported.

    The tender seeks a consultant to manage, audit and verify deliverables produced by SAR’s separately appointed design services consultant, rather than carry out the design itself.

    Construction will be tendered separately through competitive bidding once designs are approved.

    The GCC railway will run for about 672km inside Saudi Arabia, linking the kingdom’s existing network to Kuwait, Qatar, the UAE and Bahrain, with four sections of about 141km, 200km, 151km and 21km, respectively.

    The line is planned as a single-track, non-electrified corridor for mixed freight and passenger traffic, with a maximum axle load of 32.4 tonnes and passing loops for bidirectional working.

    GCC railway line

    Under the overall plan, the railway will run from Kuwait, pass through Dammam in Saudi Arabia, reach Bahrain via a planned causeway, and continue from Dammam to Qatar, the UAE and, ultimately, Muscat via Sohar in Oman. The railway is reported to cover about 2,186km in total.

    The route length within each member state is as follows:

    • UAE – 684km
    • Saudi Arabia – 672km
    • Oman – 306km
    • Qatar – 283km
    • Kuwait – 145km
    • Bahrain – 36km

    The railway is designed for passenger trains travelling at 220 kilometres an hour (km/h) and freight trains operating at 80km/h–120km/h.

    With high levels of project activity, governments in spending mode and renewed cooperation under the Al-Ula Declaration, the latest efforts to restart the GCC railway project may make more progress than previous attempts. If completed, the railway could prove transformational for a region that is globally connected but still divided by national borders.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/20510318/main.gif
    Yasir Iqbal