Scatec hydrogen project overcomes key hurdles
12 July 2024
Norwegian renewable energy developer and investor Scatec has signed a 20-year offtake agreement with Abu Dhabi's Fertiglobe for the green hydrogen-derived ammonia produced at the fertliser company's existing plant in Sokhna, Egypt.
The signing of the offtake agreement between the two partners, which are co-developing the 100MW Egypt Green Hydrogen project, follows Fertiglobe winning a tender and signing an offtake agreement with Germany's Hydrogen Intermediary Network Company (Hintco).
Hintco is an affiliate of the Germany-based non-profit H2 Global, which is facilitating auctions for green hydrogen imports to Europe.
The intercontinental deals provide the proverbial light at the end of the tunnel for the project, which was first announced in 2021.
The project is now expected to reach financial close in the first half of 2025, with key development banks in Europe and the US providing finance.
It is a major victory for all companies involved, especially for Scatec, which owns a 52% stake in Egypt Green Hydrogen, along with Fertiglobe and Egypt's Orascom Construction.
MEED reported in May last year that Scatec withdrew from two planned solar projects in Iraq and a planned green hydrogen project in Oman to focus its resources in Egypt.
In addition to the green ammonia project with Fertiglobe, Scatec along with partners has been exploring the development of green methanol plants, wind power projects and a long-distance interconnector in Egypt that will require investments of at least $13bn in the coming years.
The signing of the offtake deals is also a significant milestone for Egypt, which has courted many investors to develop similar projects in the country despite ongoing currency concerns.
The green ammonia plant in Sokhna is relatively small compared with the projects being planned in Egypt and elsewhere in the region. It will feature a 100MW electrolyser facility powered by an estimated 270MW of solar and wind capacity to produce approximately 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually, which is just a fraction of the capacity of the $8.4bn Neom green hydrogen project in Saudi Arabia.
However, the offtake and project financing negotiations are not less complex compared to those involved in much larger projects due to the newness of the supply chain, the risks that need to be mitigated, and the uncertainty of demand.
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The discovery was made by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation (EGPC) and US-headquartered Apache Corporation.
The field is expected to be brought online this week, according to the ministry.
The reserves were discovered after drilling the exploratory well ‘Gomana-1’, the ministry said.
It added that sensors confirmed the presence of gas reserves, and tests indicated that the well is expected to have a production rate of around 36 million standard cubic feet of gas a day.
Further tests are ongoing, and the initial evaluation of the well’s reserves is currently being finalised.
The ministry said that the discovery followed the introduction of new incentives designed to encourage additional gas investment within Khalda’s areas of operation.
Earlier this month, Egypt started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid.
The country is currently pushing to increase domestic gas production in order to meet domestic demand and reduce its import bill.
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Bapco refinery ramps up volumes from new units19 November 2025

Bahrain’s state-owned Bapco Energies is in the final stages of ramping up volumes processed by new units that were installed as part of the Bapco Modernisation Programme (BMP), according to industry sources.
The project at the Sitra refinery in Bahrain is estimated to have been worth $7bn and was inaugurated by Bahrain’s King Hamad Bin Isa Al-Khalifa in December last year.
One source said: “The new units still aren’t operating at their nameplate capacities – but it’s getting close.”
The companies involved in the engineering, procurement and construction (EPC) contract for the project are still working on the site to assist with efforts to increase volumes, according to sources.
“The companies involved in the EPC work have to meet certain targets before their work is done,” said one source.
“They have to get the process volumes to a certain level and then maintain that for a certain time period before they can say that they have fully met their contractual obligations.”
The inauguration ceremony for the BMP took place on 18 December last year. Along with King Hamad, the ceremony was attended by Salman Bin Hamad Al-Khalifa, Bahrain’s crown prince and prime minister, Sheikh Nasser Bin Hamad Al-Khalifa, chairman of the board of directors of Bapco Energies, the leadership team at Bapco Energies, and other senior executives from the oil and gas industry.
The BMP is central to Bahrain’s Vision 2030 economic development strategy, and Bapco has said that it is crucial to boosting the country’s long-term downstream potential.
Bapco Energies awarded the main $4.2bn contract to perform EPC works on the BMP to a consortium led by France’s Technip Energies in February 2018.
The consortium also included Spain’s Tecnicas Reunidas and South Korea’s Samsung E&A.
Technip Energies also performed the project’s front-end engineering and design work. US oil and gas producer Chevron acted as a consultant on the BMP, while Australia-based Worley was the project management consultant.
In March 2024, after a series of setbacks and delays, France’s Total Energies was brought in to support Bapco in “optimising” the project.
The BMP was originally expected to reach mechanical completion in 2023, with operations set to begin in 2024.
The core objective of the BMP was to upgrade the Sitra refinery – Bahrain’s only oil refining asset – which is 90 years old.
One of the key units to be built as part of the BMP was a residual hydrocracking unit (RHCU) powered by technology licensed from US-based Chevron Lummus Global. The BMP team has built a two-train RHCU with a capacity of 65,000 barrels a day.
The Sitra refinery includes seven crude distillation units (CDUs) and vacuum distillation units (VDUs) as part of the BMP.
The new 225,000 b/d integrated crude and vacuum unit replaced CDUs 1, 2 and 3 and VDUs 1 and 3, which had served Bapco Energies for over 80 years.
Key units installed at the Sitra refinery under the BMP include:
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In May this year, Bapco Energies announced the death of three workers in an accident at the Sitra refinery.
The accident, involving the failure of process safety equipment, took place on 2 May, immediately killing two workers who were on an on-site inspection. A third worker, who was admitted to hospital, later died due to his injuries.
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Egypt seeks consultant for major inland waterway study18 November 2025
Egypt’s Transport Ministry has issued an expressions of interest (EOI) request, through the River Transport Authority, to appoint a consultancy firm for a study on a proposed inland waterway linking Lake Victoria to the Mediterranean.
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The consultancy is expected to run for about 15 months, starting in February or March 2026.
Firms must submit EOIs by 6 December.
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The first phase, completed in July 2019 with $650,000 in AfDB funding, developed the project’s legal and institutional framework and launched two regional inland water transport programmes.
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Kuwait to make decision on four oil pipeline packages18 November 2025

Kuwait is evaluating bids on four packages for a major pipeline project after prices were submitted earlier this month, according to industry sources.
The four separate packages cover pipeline work in the north, south, east and west regions of the country, sources said.
Although the total of all bids submitted by Kuwait-based Alghanim International General Trading & Contracting is the lowest at KD419m ($1.4bn), the company submitted the lowest individual bid on only one package, located in northern Kuwait.
Its bid for the north Kuwait package was KD149.8m ($488.3m).
Mechanical Engineering & Construction Company submitted the lowest bids for pipeline work on two packages located in the south and east of the country.
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Al-Dar Engineering & Construction Company is the low bidder on the fourth package, for pipe work in western Kuwait, submitting a bid of KD64,825,398 ($211.3m).
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Kuwait is trying to boost project activity in its upstream sector.
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Indian firm wins Oman chemicals project EPC contract17 November 2025
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Indian contractor Nuberg EPC has won a contract to perform engineering, procurement and construction (EPC) works on a project to build chlor alkali and calcium chloride plants in Oman for privately-owned Al-Ghaith Chemical Industries.
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Nuberg EPC said the contract is being executed on a lump sum turnkey basis, with its scope covering design, front-end engineering and design (feed), detailed engineering, procurement, fabrication, construction, commissioning and handover.
Project execution is already under way, with completion targeted within 19 months, Nuberg EPC said.
The project marks the second phase of Al-Ghaith’s integrated chemicals complex in Sur and represents a first-of-its-kind large-scale chlor alkali expansion in Oman.
Nuberg EPC also performed EPC works on the original chlor alkali plant, which has a capacity of 70 t/d.
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