meed-logo

line1 line2 line3
SIGN IN / REGISTER

Saudi power sector enters busiest year

10 March 2025

 

Contracts worth more than $90bn are under execution in Saudi Arabia’s power sector, making 2025 the busiest year ever for generation and transmission capacity buildout in the kingdom.

The construction of conventional and renewable power generation plants accounts for two-thirds, or 66%, of the contracts under execution, while transmission and distribution projects account for the rest, based on the latest available data from regional project tracker MEED Projects.

In addition to gas-fired and renewable energy generation plant projects, the kingdom has awarded several contracts in the past two years to modernise and expand its domestic grids in light of the solar photovoltaic (PV) and wind power plants, and industrial complexes, which are being built in remote areas – as well as Riyadh's plan to trade electricity beyond the kingdom's GCC partners and with countries such as Egypt.

In the past 12 months, the kingdom also awarded the first contracts to build on-grid battery energy storage system (bess) facilities, in line with fostering greater grid flexibility and countering the intermittency of renewable power.

“It has been a very, very busy year, despite some projects – particularly those catering to Neom – being re-scoped,” notes a Dubai-based senior executive with a transaction advisory firm.

The $500bn Neom gigaproject in southwestern Saudi Arabia aims to be powered 100% by renewable energy, which it initially expected to generate independently.

However, ongoing discussions are understood to include an option to meet future demand through renewable power sourced from the grid.

Overall, combined-cycle gas turbine (CCGT) projects – procured on either an independent power project (IPP) or engineering, procurement and construction (EPC) model – account for 56% of the total power generation contracts under execution in Saudi Arabia, with solar and wind accounting for the remaining 44%.

The principal buyer, Saudi Power Procurement Company (SPPC), awarded contracts for two pairs of CCGT plants – projects one and two of the Rumah and Nairiyah schemes – last year.

SPPC also signed the offtake agreements for four solar PV IPPs, which were tendered under the fifth round of the National Renewable Energy Programme (NREP). These were contracts for the 2GW Al-Sadawi, 1.25GW Al-Masaa, 500MW Al-Henakiyah 2 and 300MW Rabigh 2 solar IPPs.

An EPC contract for a high-voltage, direct current transmission network connecting the kingdom’s central and southern electricity grids was also one of the largest deals signed last year in the kingdom.

In the second half of 2024, the developer arm of Saudi Electricity Company (SEC) selected the preferred bidders for several greenfield CCGT expansion plants: Ghazlan 1 and 2, Riyadh PP12 and Marjan.

SEC subsidiary National Grid also awarded the second phase of its bess projects that are being procured on an EPC basis to local firm AlGihaz Holding last year. The three battery energy storage facilities, each with a capacity of 800MW, or about 2,600 megawatt-hours, are to be located in Najran, Khamis Mushait and Madaya.

The extent of work on hand is exerting pressure on contractor capacity, according to some experts.

"I think the Chinese EPC contractors are already at capacity, so SEC has started tapping Egyptian and Spanish EPC contractors," an industry source told MEED, referring to Tecnicas Reunidas, Orascom and Elsewedy, which are understood to have been selected last year to undertake the EPC contracts for several CCGT plants that SEC is developing.

South Korean EPC contractors are also executing several cogeneration and generation power plants in the kingdom.

Outlook

The need to expand, connect and stabilise the kingdom’s electricity grid will be a primary preoccupation for Saudi utility stakeholders in the short to medium term.

This is crucial given the large capacity of renewable energy power generation plants that are scheduled to come on stream, and as the kingdom deploys new gas-fired plants in line with its need to displace liquid fuel in some of its ageing fleet.

Oil fuel still accounted for 36% of Saudi Arabia's total electricity generation in 2023, at 422.9 terawatt-hours, according to the Energy Institute.

Data from MEED Projects suggests that at least $68bn-worth of power generation and transmission contracts are in the pre-execution phase as of March 2025.

Clean energy fuel-powered plants, using solar, wind, hydro and nuclear, dominate the $47bn-worth of planned power generation units, with thermal plants accounting for just 13% of the total.

This signals a shift to clean energy, despite the overall figure excluding a significant volume of renewable energy projects that are still in the concept stage. This is in line with a plan by the Energy Ministry to procure up to 20GW of renewable energy capacity annually until 2030, subject to demand growth.

Planned transmission and distribution projects, including several independent battery energy storage projects, together account for about $21bn of contracts that have yet to be awarded.

Local developers

Local companies are increasingly visible in the procurement proceedings for new power generation and transmission plants in the kingdom.

The decisions made by several European and Japanese developers to retreat from thermal power plant tenders that do not offer a clear carbon capture, utilisation and storage (CCUS) path – which would be necessary for them to meet their 2045 or 2050 net-zero targets – has contributed to this trend.

The exclusion of dominant utility developer Acwa Power in the prequalification process for the NREP’s fifth and sixth procurement rounds has also opened up opportunities for other international and local developers that are keen to win more contracts in Saudi Arabia.

Aljomaih Energy & Water, Ajlan & Brothers, Alfanar, Algihaz and SEC’s developer arm have been pursuing new contracts, usually in cooperation with an international developer.

Battery energy storage

Large-scale solar PV projects and limited wind capacity in the kingdom create a major market for battery energy storage going forwards.

Independent battery energy storage projects, in particular, offer neutral opportunities for both international and local developers, and are expected to attract more bidders compared to conventional thermal or standalone solar PV projects.

“We are definitely interested,” says a senior executive with a European utility developer, referring to the first phase of the kingdom’s independent storage provider (ISP) programme.

In addition to its net-zero merits, the ISPs will follow the same model as an IPP project, where the successful bidders will hold 100% equity in the special purpose vehicles set up to develop and operate the project.

While such strong interest is expected to benefit the principal buyer, which can expect to receive competitive prices from bidders, an over-competitive or crowded landscape could also be off-putting to developers and investors that are keen to maintain their internal rate of return, or which are shifting their global focus to other geographies.

“We prefer to wait and see,” one source tells MEED, indicating that their company does not intend to participate in upcoming battery tenders, not only in Saudi Arabia but also in other GCC states.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13466191/main.gif
Jennifer Aguinaldo

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai tenders stormwater drainage projects

    14 August 2026

    Dubai Municipality has issued three tenders for stormwater and sewerage infrastructure projects serving Hind City, Dubailand and surrounding areas.

    The projects cover drainage networks for Hind 4, connections to the stormwater network in Dubailand and a stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman.

    The three tenders were issued through the municipality’s Sewerage and Recycled Water Projects Department.

    All three have bid submission deadlines of 10 September.

    Hind 3 and Hind 4 are two of four zones within Hind City. The Dubai government renamed the Al-Minhad area and surrounding areas as Hind City in 2023. The 83.9-square-kilometre area is served by Emirates Road, Dubai–Al-Ain Road and Jebel Ali–Lehbab Road.

    The DS-316-C1 project covers the construction of sewer and stormwater networks in Hind 4. The stormwater network will include gravity drainage pipelines with diameters of up to 1,600 millimetres (mm), while the sewer network will include pipelines of up to 800mm.

    The TF-24-C1 project will connect developers’ areas in Dubailand to the stormwater network. It includes 18 kilometres (km) of stormwater drainage pipelines with diameters of up to 1,800mm and 3.5km of gravity sewer pipelines with diameters of up to 1,000mm.

    The TF-25-C1 project involves the construction of a 9.2km stormwater trunk line serving Hind 3, Hind 4 and Umm Al-Daman. The trunk line will include gravity drainage pipelines with diameters of up to 2,800mm. It will also serve main roads along its alignment, including sections of Dubai–Al-Ain Road, and is designed to accommodate stormwater flows from part of Emirates Road.

    The projects are intended to strengthen flood resilience and improve the reliability of Dubai’s drainage infrastructure.

    Latest awards

    Dubai has continued to accelerate investment in stormwater infrastructure under the Tasreef programme in recent months.

    In July, MEED exclusively reported that Dubai Municipality had awarded the estimated $100m engineering, procurement and construction contract for the TF-15-C1 package of its Tasreef rainwater drainage network programme to local firm DeTech Contracting.

    The municipality has also recently awarded the TF-15-C2 and DS-204-C1 packages to China State Construction Engineering Corporation and Nael Construction & Contracting, respectively.

    The overall masterplan aims to expand Dubai’s rainwater drainage capacity by 700% by 2033 and serve the emirate for the next century.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18585485/main.jpg
    Mark Dowdall
  • Construction completed on $8.5bn Neom hydrogen project

    14 August 2026

    Construction work on the $8.5bn Neom Green Hydrogen project at Oxagon in Saudi Arabia has been completed, with the facility entering the commissioning stage ahead of commercial operations targeted for 2027.

    The project is being developed by Neom Green Hydrogen Company (NGHC), a joint venture of Saudi-listed Acwa, US-headquartered industrial gases group Air Products and Neom.

    Acwa's chief financial officer, Abdulhameed Al-Muhaidib, said during the company’s recent H1 2026 earnings call that construction has been completed and commissioning activities are now under way.

    "It’s really more now into commissioning and the target to go into commercial operation next year," he told investors.

    The project is designed to produce up to 600 tonnes a day of green hydrogen, which will be converted into green ammonia for export. It is supported by about 4GW of solar and wind power generation capacity, with the renewable power that is generated being used to produce hydrogen through electrolysis.

    As previously reported by MEED, Air Products is also the exclusive offtaker for green ammonia produced at the facility under a 30-year agreement.

    NGHC said in March that its renewable power generation assets, including the wind and solar farms, and transmission grid, had reached approximately 95% completion.

    India’s Larsen & Toubro (L&T) is the engineering, procurement and construction (EPC) contractor for the project’s renewable energy and transmission and distribution package.

    L&T’s EPC scope includes a 2,200MW solar plant, a 1,370MW wind farm, a 400MW battery energy storage system and a transmission network extending 190 kilometres.

    The project reached financial close in 2023. Once operational, the facility is expected to produce up to 1.2 million tonnes a year of green ammonia for export.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18567177/main.jpg
    Mark Dowdall
  • Lamprell announces Abu Dhabi offshore project contract

    14 August 2026

     

    Saudi Arabia/UAE-based Lamprell has announced it has won an engineering, procurement, construction and installation (EPCI) contract for a project in Abu Dhabi, for which it will “support the delivery of subsea pipeline infrastructure that will help strengthen offshore energy production and processing capabilities”.

    The project includes the engineering, procurement and fabrication of approximately 50 kilometres (km) of subsea pipeline systems, along with associated flowlines, subsea connections and testing, Lamprell said in a statement.

    With the engineering, procurement and construction (EPC) activities having been completed, preparations are under way for the offshore installation phase, Lamprell added, without revealing further details about the project, its client or value of the contract.

    “Working alongside our sister company Algihaz Marine Contractors, the project demonstrates the value of combining complementary engineering, fabrication and offshore installation capabilities to deliver complex subsea infrastructure safely, efficiently and to a high standard,” the company said in a .

    MEED understands the contract award relates to the first package of the Umm Shaif Gas Cap development project in Abu Dhabi, for which Abu Dhabi National Oil Company (Adnoc Group) and its foreign partners announced achieving a $6.2bn final investment decision (FID) in July.

    MEED previously reported that Adnoc had awarded the EPCI contract for the package related to EPCI and fabrication of a 30,000-tonne gas compression system and associated subsea pipelines, flowlines and other structures, to a consortium of India’s Larsen & Toubro Energy Hydrocarbon (L&TEH) and Lamprell.

    Larsen & Toubro (L&T) confirmed its contract award from Adnoc Group subsidiary Adnoc Offshore earlier in August, describing the order as “ultra-mega”, a term the company uses for contracts valued at more than Rs150bn ($1.57bn).

    Mumbai-headquartered L&T added that the contract will be executed through a consortium, with its subsidiary L&TEH Offshore serving as the lead partner, without mentioning Lamprell.

    The Umm Shaif Gas Cap reserve is located within the offshore Umm Shaif and Nasr hydrocarbons concession, which is operated by Adnoc as the majority stakeholder. The other stakeholders in the concession are Italy’s Eni, France’s TotalEnergies and China National Petroleum Corporation (CNPC).

    Through this project, Adnoc and its concession partners intend to produce up to 600 million cubic feet a day (cf/d) of natural gas by unlocking the Umm Shaif Gas Cap in Abu Dhabi’s Gulf waters.

    Adnoc, in its 21 July statement, said the FID includes three EPC packages totalling $5.1bn for large-scale offshore infrastructure, awarded to consortiums comprising UAE and international contractors. The company did not disclose the contractors or the scope of work.

    MEED reported in May that the following contractors had emerged as frontrunners for the two offshore packages and one onshore package of the Umm Shaif Gas Cap and surface pressure boosting project:

    • First offshore package – fabrication of a 30,000-tonne gas compression system: L&TEH (India) / Lamprell (Saudi Arabia/UAE)
    • Second offshore package – fabrication of another 30,000-tonne gas compression system: McDermott (US)
    • Onshore package – EPC of gas inlet and processing systems on Das Island: China Petroleum Engineering & Construction Company

    Adnoc added that, as part of the FID, it has also awarded a $365m contract to its subsidiary Adnoc Drilling for a 14-well drilling and integrated drilling services scope, to be delivered over 18 months using three existing rigs.

    Umm Shaif Gas Cap project

    Adnoc Offshore, the offshore oil and gas business of Adnoc Group, is the operator of the Umm Shaif Gas Cap and surface pressure boosting project.

    The primary objective is to increase gas production by 550 million cf/d and raise associated condensate output by 50,000 barrels a day (b/d).

    Adnoc Offshore intends to feed about 520 million cf/d of the additional produced gas into Adnoc Group’s sales gas grid.

    Adnoc Offshore is understood to have issued the main EPC tender for the Umm Shaif Gas Cap and surface pressure boosting project in the first quarter of 2025.

    Contractors submitted technical bids for the three EPC packages by 30 October last year, while commercial bids were submitted by the 2 February deadline.

    The following contractors are among those understood to be bidding for the three EPC packages, according to sources:

    Offshore package 1:

    • Saipem (Italy) / Seatrium (Singapore)
    • L&TEH (India) / Lamprell (Saudi Arabia/UAE)
    • NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)

    Offshore package 2:

    • China Offshore Oil Engineering Company (China)
    • McDermott (US)
    • L&TEH (India) / Lamprell (Saudi Arabia/UAE)
    • NMDC Energy (UAE) / Hyundai Heavy Industries (South Korea)

    Onshore package:

    • Archirodon (Greece)
    • China Petroleum Engineering & Construction Company (China)
    • Engineering for the Petroleum & Process Industries (Egypt)
    • Galfar Emirates (UAE branch of Oman’s Galfar Engineering & Construction)
    • Target Engineering Construction Company (UAE)

    Australian firm Worley has performed front-end engineering and design (feed) work on the project.

    Umm Shaif gas production

    Adnoc Offshore operates the Umm Shaif hydrocarbons development, which is located 150km northwest of the city of Abu Dhabi. The field is located in Abu Dhabi’s offshore Umm Shaif and Nasr hydrocarbons concession, previously operated by former Adnoc Group companies Adma-Opco and Zadco.

    In March and April 2018, Abu Dhabi’s Supreme Council for Financial and Economic Affairs awarded a 10% stake in the Umm Shaif and Nasr offshore block to Eni, 20% to TotalEnergies and 10% to CNPC. Adnoc Group retained the majority 60% interest. The operators produce a total of about 460,000 b/d of oil from the Umm Shaif and Nasr block.

    Gas is produced from the Umm Shaif Khuff and Uweinat reservoirs, as well as from the Arab C and Arab D Early Production Scheme 2. The Umm Shaif Khuff reservoir is a formation that consists of dry gas volumetric reservoirs located in the Umm Shaif field.

    Khuff reservoirs have been in production in Abu Dhabi since August 1989. Umm Shaif Khuff gas is currently produced from 28 active wells within the Umm Shaif field. A majority of these wells supply gas to Adnoc Group subsidiaries Adnoc LNG and Adnoc Gas Processing, with the rest supporting oil reservoirs at the Umm Shaif field through gas injection.

    The Umm Shaif Super Complex (USSC) processes and transports oil, condensates and natural gas in separate pipelines to Das Island for further processing and export. The condensates collected from the USSC are transported to Das Island through an 18-inch pipeline stretching 34.4km, or are spiked into the 36-inch Adnoc main oil line.

    The gas collected from the USSC is transported to Das Island through two 46-inch pipelines, which also run 34.4km.

    Pressure at the Umm Shaif Khuff gas reservoirs will start to decline by the end of 2028. The flowing wellhead pressures at some of the Khuff gas wellhead towers are likely to reduce, so boosting well deliverability and increasing the flowrates is necessary.

    Therefore, new Khuff surface pressure boosting facilities are required to maintain the plateau – with a goal of achieving a 90% gas recovery factor – and increase production beyond the end of the plateau by lowering pressure at the Khuff reservoirs.

    Project tendering exercise

    Adnoc Offshore has been working to advance the Umm Shaif Gas Cap project since at least 2019 and has experimented with several project execution models.

    According to the original schedule, the project was due to be commissioned in 2023, but progress slowed down, primarily due to the Covid-19 pandemic.

    Adnoc Offshore launched a feed-to-EPCI competition for the project in May 2019 and selected the following three entities based on their feed submissions:

    • McDermott (US)
    • National Petroleum Construction Company (UAE; now NMDC Energy) / TechnipFMC (France)
    • Saipem (Italy) / Petrofac (UK)

    Technical bids for the EPCI works on the estimated $1.5bn project were submitted in January 2020 and commercial bids were submitted by August of that year.

    The Saipem/Petrofac consortium emerged as the lowest bidder for the project in September 2020, MEED reported.

    Petrofac is understood to have ultimately withdrawn from the consortium and was replaced by state-owned China Petroleum Engineering & Construction Company (CPECC).

    In 2022, the Saipem/CPECC consortium was understood to be the sole remaining bidder for the Umm Shaif Gas Cap project. Adnoc Offshore engaged the consortium for a revised feed exercise and subsequently received commercial offers on a single-source basis.

    In 2023, Adnoc Offshore cancelled the tendering process for the project and later decided to proceed with a conventional EPC-based project execution model.

    The operator then appointed Worley to undertake feed works on the renewed Umm Shaif Gas Cap project in 2024. Worley has a legacy of involvement in the Umm Shaif hydrocarbons development.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18556614/main1931.jpg
    Indrajit Sen
  • Hitachi Energy signs Erbil substations deal

    14 August 2026

    Switzerland-headquartered Hitachi Energy has annnounced it has signed an agreement to supply high-voltage equipment for three 132/33kV substations being developed in Erbil in northern Iraq.

    The substations are being built by Iraqi electrical contractor Hero Company under a ID100bn ($76.3m) contract signed with the Kurdistan Region's Electricity Ministry in May. 

    In a statement, Hitachi said it will act as the main technology provider for the project, which has a combined capacity of 753 megavolt-amperes.

    According to local media reports, the substations will be located in Shamamak, Hasarok and Timar. The ministry said the projects are to be completed within two years.

    Hitachi Energy says it has supplied more than 120 mobile substations and delivered more than 30 transmission substations in Iraq over the past 15 years. It also says it has upgraded assets including Iraq's National Control Centre.

    Iraq’s power and water sector is currently undergoing one of its largest expansion programmes in decades amid chronic electricity and water shortages.

    In 2025, it recorded its largest year of investment on record, with more than $17bn in combined contract awards.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18548939/main3553.jpg
    Mark Dowdall
  • Contracts signed for Algerian phosphate project

    14 August 2026

    Algeria’s national oil and gas company Sonatrach and the Algerian Chinese Fertilisers Company (ACFC) has signed two engineering, procurement and construction (EPC) contracts for the country’s planned phosphate integrated project in Tebessa Province.

    ACFC was created in March 2022 by Algerian companies Asmidal and Manadjim El-Djazair (Manal), which own 56% of the company, and Chinese groups Wuhuan and Tianan, which own the remaining 44% stake.

    Manal and Asmidal are both subsidiaries of Sonatrach.

    The new contracts are part of the Bled El-Hadba phosphate development project, which is expected to be worth $7bn.

    The contracts were signed by Italy’s Saipem and China Harbour Engineering Company (CHEC) as part of the first phase of the integrated phosphate project.

    Saipem’s contract is worth approximately €500m ($577m), according to a statement released by the Italian company.

    Saipem was previously awarded a front-end engineering and design (feed) contract for the same project in June 2025.

    The signing ceremony for the latest two EPC contracts took place at the headquarters of Sonatrach's general directorate, in the presence of members of the government, Sonatrach CEO Nour Eddine Daoudi, the ambassadors of Italy and China in Algeria, as well as officials from Saipem and CHEC.

    The first phase of the project involves the construction of industrial and port infrastructure, including a phosphate extraction and enrichment complex in Bled El-Hadba with an extraction capacity of 5.5 million tons a year (t/y) and an overall production capacity of concentrated phosphate estimated at 3.2 million t/y.

    Phase one also includes the construction of an integrated industrial complex in Oued Kebrit with the capacity to produce 2.4 million t/y of phosphate fertiliser and 570,000 t/y of nitrogen fertiliser.

    The facility in Oued Kebrit will also produce quantities of other intermediate products.

    Port infrastructure will be constructed in Annaba with the aim of enabling the establishment of an integrated industrial and logistics ecosystem.

    During the signing ceremony, Minister of State and Hydrocarbons Minister Mohamed Arkab said that the project benefits from special attention from Algerian President Abdelmadjid Tebboune, within the framework of his vision to exploit natural resources, strengthen national industrialisation, create added value, diversify the national economy and promote the country’s non-hydrocarbons exports.

    He said that the project will be carried out according to an “accelerated EPC fast-track method”, in order to reduce completion times and bring production online faster.

    This is expected to allow the first quantities of enriched phosphate to be produced in the first quarter of 2027 and fertiliser production is expected to start during the fourth quarter of the same year.

    When the project is fully operational, it is expected to produce approximately 6 million t/y of enriched phosphate and 4 million t/y of different types of phosphate and nitrogen fertilisers.

    It will also produce industrial materials such as sulfuric acid, phosphoric acid and ammonia, according to Arkab.

    He said that Algeria's ambition is not limited to the production of phosphate and fertilisers and also includes the establishment of an integrated industrial chain capable of creating added value, developing skills, supporting the national economy and opening new horizons for Algerian products on international markets.

    Daoudi, the chairman and chief executive of Sonatrach, said that the signing of the two contracts marked the effective transition to the implementation phase of this project, which "undoubtedly constitutes a key milestone in the industrial development process in Algeria".

    The scope of the EPC contract signed by Saipem covers the construction of project facilities at the Bled El-Hadba site and the Oued Kebrit site.

    Saipem’s chief executive Alessandro Puliti said that his company will try to deliver the project on time and will work with three local companies on the project.

    The three companies are pipeline specialist Cosider Canalisations; Algerian Industrial Projects Realisation Company, which is a subsidiary of Sonatrach; and state-owned National Civil Engineering & Building Company.

    The scope of the EPC contract signed by CHEC is focused on developing the Annaba port infrastructure project.

    Speaking at the signing ceremony, CHEC's deputy general manager Chen Zhong said his company is committed to completing the first and second phases of the Annaba port project within the allotted timeframe.

    The wider integrated phosphates project has four main focus areas.

    These are:

    • The Bled El-Hadba phosphate mine
    • Phosphate enrichment units
    • The Oued Kebrit chemicals processing complex
    • Logistics facilities, including the extension of the port of Annaba and a railway network dedicated to the transport of raw materials and finished products

    In its statement, Saipem described the document that it signed with Sonatrach as a limited notice to proceed (LNTP) for the execution of phase one of the integrated phosphate project in Algeria.

    It said: “The full EPC contract will be based on a contractual framework which will allow both parties to share risks and rewards during the execution, including the LNTP period which will enable Saipem to start the preliminary activities that are preparatory and critical for achieving the first project milestones.

    “These include but are not limited to feed completion and detailed engineering, procurement of long lead items, as well as preliminary project mobilisation and organisation activities, pending the negotiation and finalisation of the EPC contract.”

    Saipem has been present in Algeria since 1968 and has developed infrastructure for hydrocarbons treatment and transportation, power generation plants and oil well drilling.

    The Bled El-Hadba phosphate mine has over 1.2 billion tonnes of estimated total reserves, including 800 million tonnes of estimated exploitable reserves, making it one of the biggest mines of its kind in the world.

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

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18499932/main.jpg
    Wil Crisp