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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According to a statement published by the Emirates News Agency (Wam), the projects slated for contract awards include “the substructure works for the Western Passenger Terminal, the fourth aircraft concourse building, the automated people mover (APM) system and the baggage handling system, in addition to the superstructure works for the Western Passenger Terminal and the first, second and third aircraft concourses”.
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In May last year, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.
The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based Tristar E&C.
Construction on the project’s first phase is expected to be completed by 2032.
Construction on substructure works began in November last year, when DAEP formally selected a contractor to deliver the package.
The government approved the updated designs and timelines for its largest construction project in April 2024.
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According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000-square-metre facility with an annual capacity of 45 million passengers.
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Eleven contractors bid for Yanbu seawater cooling project16 June 2026

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The bidders include:
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Kuwait awards oil services contract16 June 2026
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US-based HKN Energy is starting operations on the ground at Syria’s Rmeilan fields in Al-Hasakah Governorate, according to industry sources.
The development comes as Syria is trying to fast-track the conversion of memorandums of understanding (MoUs) signed with oil companies to concrete contracts.
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The Syrian government took control of the Rmeilan oil fields earlier this year after a military operation.
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Output later fell by nearly 85% after hundreds of wells went offline, either due to war damage or lack of maintenance.
Prior to the military operation by Syria’s army earlier this year, the field was held and administered by the Kurdish-led Syrian Democratic Forces (SDF).
Foreign interest in Syria’s oil and gas sector is growing as the government moves to revive the industry and elevated global energy prices improve the economics of new developments.
A series of agreements signed in recent months has attracted some of the world’s largest energy companies, raising expectations that investment and production could accelerate.
New deals
Speaking at the conference in Washington earlier this month, Qablawi said he was planning to sign a contract with ConocoPhillips today, 16 June.
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The chief executive said that previously unexplored blocks in the country held “huge” reserves that could be developed.
Chevron is interested in making investments in onshore production in the country, according to Qablawi.
Downstream projects
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Contractors have been given until 25 June to submit offers to design, build and commission an upgraded facility, estimated to cost $300m.
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UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.
Phase 3 PPP
The second and larger of the two projects involves the Jebel Ali STP expansion – phase 3.
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Dubai Municipality issued a request for qualifications in May, with an initial deadline of June 18. That deadline has been extended to 16 July, a source said.
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UK-headquartered Deloitte is acting as financial adviser, Aecom as technical adviser and CMS as legal adviser.
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