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Kuwait awards oil contract to Baker Hughes Administrator18 August 2026
Kuwait’s state-owned upstream operator Kuwait Oil Company (KOC) has awarded a multi-year contract to the Houston-based oil services company Baker Hughes, according to a statement from the US company.
The contract is focused on accelerating technology innovation in the country’s upstream energy sector, the statement said.
Baker Hughes did not disclose the contract value.
It said that the deal positioned Baker Hughes as a key technology collaborator in the Ahmadi Innovation Valley (AIV), KOC’s flagship initiative aimed at establishing an in-country research and innovation hub to address its strategic oil and gas development priorities.
Under the terms of the agreement, Baker Hughes and KOC will focus on developing and deploying technology solutions that optimise production as well as addressing other issues.
Baker Hughes said it is planning to use its portfolio of digital and artificial intelligence (AI) automation solutions as part of the deal.
These solutions are designed to help operators increase recovery from existing wells, lower operating costs, reduce water production and minimise power consumption, it said.
Baker Hughes chairman and CEO Lorenzo Simonelli said: “Baker Hughes is committed to deeply understanding KOC’s development aspirations and providing the solutions needed to help achieve them.
“Working together, we aim to deliver tailored technology solutions at scale that improve production performance and efficiency, supporting KOC’s goals to maximise value from their assets.”
As part of the agreement, Baker Hughes will build a dedicated research and technology development centre in the AIV to deliver technology solutions and build local expertise.
Kuwait’s oil and gas sector is currently in crisis due to the regional war that started after the US and Israel attacked Iran on 28 February.
The war has severely disrupted exports through the Strait of Hormuz, which Kuwait relies on in order to ship crude exports.
Shaikh Nawaf Saud Al-Sabah, deputy chairman and CEO of Kuwait Petroleum Corporation (KPC), the country’s state energy conglomerate, has described the current crisis as the biggest oil crisis the country has faced since Iraq’s 1990 invasion.
Kuwait relies on the oil and gas sector for more than 90% of government revenues.
Despite the dramatic reduction in crude exports, Kuwait’s state-owned oil companies continue to tender some projects.
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Firms submit Mid Island Parkway prequalifications Administrator18 August 2026

Abu Dhabi’s Modon Infrastructure has received expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership.
Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.
Phase two of the MIPP involves constructing about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.
The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.
The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.
Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.
Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.
Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.
It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18830452/main.png -
Adnoc selects contractors for new LNG project in the UAE Administrator18 August 2026

Abu Dhabi National Oil Company (Adnoc) has selected contractors for a design competition it is overseeing for a major project to build a new liquefied natural gas (LNG) export facility along the UAE’s eastern coast.
The proposed onshore LNG liquefaction facility – whose precise location Adnoc has yet to reveal – will have a nameplate output capacity of 4 million tonnes a year (t/y) and will mainly serve export purposes, MEED reported in June. The facility will receive sales-gas-quality feedstock via pipelines from Adnoc’s gas processing facilities in Abu Dhabi and will export LNG via a loading jetty.
MEED previously reported on Adnoc’s intention to execute work on the project through a design competition or front-end engineering and design (feed)-to-engineering, procurement and construction (EPC) contest.
Under this model, the project operator selects contractors to carry out feed work. The operator then awards the EPC contract to the contractor with the most competitive feed proposal, while compensating the other contestants for their work.
The Abu Dhabi energy giant has selected the following three entities to undertake feed work on the planned onshore LNG liquefaction facility, according to sources:
- Saipem (Italy) / Larsen & Toubro Energy Hydrocarbon (India)
- Technip Energies (France) / JGC Corporation (Japan)
- Tecnimont (Italy)
Adnoc issued draft letters of award to the selected contractors between 11 and 12 August, the sources added.
In addition to the contractors picked by Adnoc, MEED previously reported that the following contractors were shortlisted for the feed-to-EPC contest:
- McDermott (US)
- Samsung E&A (South Korea)
- Wison (China)
MEED reported that Adnoc issued the expression of interest (EoI) document for the planned LNG facility project on 2 June, with contractors submitting responses by 5 June.
Given the strategic importance of the project, Adnoc is understood to be fast-tracking the tendering exercise, issuing the main tender for the feed-to-EPC contest within days of the EoI submission. The company sought proposals from participating contractors by 1 July, sources said.
In its EoI document, Adnoc said it intends to award the main EPC contract in the third quarter of this year.
Adnoc has yet to specify where it plans to build the LNG complex, stating only in the EoI document that it will be located at a coastal site in the UAE.
MEED understands Adnoc may be considering a site near one of the UAE’s eastern port facilities in the emirate of Fujairah. The blockade of the Strait of Hormuz in recent months has increased interest in prioritising exports and maritime trade through ports on the Gulf of Oman.
The scope of work on the planned LNG facility covers the following units:
LNG facilities:
- An onshore LNG liquefaction facility in a coastal location, with a nominal output capacity of 4 million t/y;
- Process units necessary to bring sales feed to a liquefaction-quality feed gas (i.e. carbon dioxide removal, dehydration, mercury removal and total sulphur reduction);
- Common facilities including inlet receiving facilities, refrigerant storage and flares;
- Utilities to support the facility, allowing it to be self-sufficient, including but not limited to local power generation and any necessary tie-ins;
- LNG export facilities, including a jetty and berth;
- Structures including control buildings, amenities, a laboratory, a warehouse, workshops and administration buildings, to fully support the plant operation.
LNG storage facilities:
- LNG storage tanks, handling of boil-off gases (BOG) and potentially a BOG reliquefaction unit to facilitate major shutdown operations for bidders opting to compete with a single liquefaction train option.
Feed gas supply:
- Supplying and installing an additional identical gas compressor to be located at an existing compression station near Adnoc Gas’ Habshan complex in Abu Dhabi, to provide additional capacity in an existing gas pipeline system;
- A new feed gas pipeline, approximately 160 kilometres long, to route sales gas quality feed gas from an existing pipeline network to the LNG facility.
Modifications to upstream facilities (alternative scope):
- Installation of sulphur removal beds in Habshan to bring feed gas to required LNG quality at the upstream gas conditioning facility, rather than at the LNG facility. This may be selected by bidders to avoid additional investment for processing the regeneration gas.
Construction facilities:
- Temporary construction facilities, laydown area and material offloading facility, to support EPC execution requirements;
- Construction labour accommodation camp.
Adnoc LNG output capacity
Adnoc has an LNG liquefaction capacity of 6 million t/y, which is set to more than double to 15 million t/y when its under-construction LNG terminal complex in Abu Dhabi’s Ruwais enters operations in 2028.
The upcoming LNG export terminal in Ruwais will have the capacity to produce about 9.6 million t/y of LNG from two processing trains, each with a capacity of 4.8 million t/y.
Adnoc awarded the full EPC contract and reached the final investment decision for the Ruwais LNG terminal project in June 2024. A consortium of France’s Technip Energies, Japan-based JGC Corporation and Abu Dhabi-owned NMDC Energy – a subsidiary of NMDC Group – was awarded the $5.5bn EPC contract. In March of that year, Adnoc issued a limited notice to proceed to the consortium of contractors led by Technip Energies for early EPC works on the Ruwais LNG terminal project.
The complex will feature process units, storage tanks and an export jetty for loading cargoes and LNG bunkering, as well as utilities, flare handling systems and associated buildings.
The planned LNG facility will run on electric-powered rotary equipment and compressors instead of gas-fired units. Adnoc awarded a $400m contract in October 2023 to US-based Baker Hughes for the supply of all-electric compression systems for the project. The LNG trains will run on energy-efficient Baker Hughes technology, including compressors driven by 75MW electric motors.
Adnoc has also signed agreements with international energy companies to divest a total stake of 40% in the Ruwais LNG project. UK energy producer BP, Mitsui & Co, Shell and French energy producer TotalEnergies will each hold 10% stakes in the Ruwais LNG terminal project, with Adnoc retaining the majority 60% stake in the facility.
Adnoc Group subsidiary Adnoc Gas will acquire its parent company’s 60% stake in the Ruwais LNG facility at cost in the second half of 2028, when first production from the complex is due.
To date, Adnoc has secured offtake agreements totalling 8 million t/y, representing approximately 90% of the Ruwais LNG project’s output capacity.
Photo for illustration only
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Saudi Arabia extends bid deadline for Round 7 solar projects Administrator18 August 2026

Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), has extended the deadline for developers bidding for four solar projects under the seventh round of the National Renewable Energy Programme (NREP).
Round seven of the NREP comprises solar photovoltaic (PV) and wind independent power producer (IPP) projects with a combined capacity of 5,300MW. The renewables programme is being led and supervised by the Ministry of Energy.
The four solar PV projects comprise:
- 1,400MW Tabjal 2 solar PV IPP (Tabrijal, Al-Jouf province)
- 600MW Mawqqaq solar PV IPP (Mawqqaq, Hail province)
- 600MW Tathleeth solar PV IPP (Tathleeth, Aseer province)
- 500MW South Al-Ula solar PV IPP (Al-Ula, Medina province)
The projects were tendered in January, with submissions previously expected by 30 August. The new deadline is 13 September.
The programme also includes the 1,300MW Bilgah and 900MW Shagra wind IPPs. The bid submission deadline for these projects is 14 September.
As previously reported by MEED, procurement for the seventh round of the NREP opened in August 2025 when SPPC issued a request for qualification.
In January, MEED reported that 16 developers qualified to bid as both managing and technical members for the four solar PV projects. A further six companies qualified to bid as a managing member only.
For the wind IPPs, SPPC qualified 13 developers in the managing and technical members category, and a further six companies in the managing member category only. The request for proposals for both wind and solar IPPs was issued that same month.
The renewable energy programme aims to supply 50% of the kingdom’s electricity from renewable energy by 2030.
Earlier rounds under the NREP have already put in place large capacities. Last October, SPPC awarded contracts to develop and operate five renewable energy projects under round six of the NREP.
These comprise four solar PV IPP projects and one wind IPP project with a total combined capacity of 4,500MW.
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Construction begins on phase two of Cairo Metro Line 4 Administrator18 August 2026
Egypt’s National Authority for Tunnels (NAT) has begun implementing the second phase of Cairo Metro’s Line 4, spanning about 27 kilometres.
The main construction works contract was awarded to a joint venture of local firms, including Arab Contractors, Hassan Allam, Petrojet and Concord Engineering & Contracting.
Cairo Metro Line 4 will stretch from Fustat station to Zahraa Nasr City station in New Cairo. The line will comprise 21 stations, 15 underground and six elevated.
According to data from regional projects tracker MEED Projects, the scope also covers:
- Construction of a tunnel route starting from Al-Fustat station, following Salah Salem Road, and intersecting with the sixth metro line at Sayeda Aisha station
- An extension along Hafez Ibrahim Street, intersecting the Shinzo Abe Axis and linking Ahmed Al-Zomor and Al-Mithaq streets
- A section running via Nasr Road and Nasr City to Anwar Al-Mufti Street, with an interchange with the East Nile Monorail at Aviation station
- Construction of a depot at the Omra El-Gasima site
- Integration of interchange stations with existing lines, including Line 1 and Line 2
- Construction of structures over and under major roadways, including the Ring Road and Cairo-Suez Road
- Earthworks and site preparation, including elevated foundations and underground excavations
- Construction of all other associated infrastructure
Local media reports said construction work on the first phase of Line 4 is expected to be completed in 2028.
The joint venture of Arab Contractors, Hassan Allam, Petrojet and Concord Engineering & Contracting is also undertaking the main works on the first phase.
The Japan International Cooperation Agency (Jica) provided half of the $4bn funding required for Line 4’s first phase.
The media reports added that NAT is currently studying the third and fourth phases of Line 4.
The third phase aims to connect the Ashgar Gardens and Al-Hosary areas via a rail line spanning more than 16km.
The fourth phase will be more than 38km long and will connect the Al-Rehab area with the capital’s international airport east of Cairo.
Once completed across all phases, Line 4 will link 6th of October City with southern and eastern Cairo, the New Administrative Capital and Capital International airport, making it one of the longest transport networks in the country.
In April last year, MEED reported on Egypt’s future rail project plans, which include eight key projects spanning metro, high-speed rail and light rail transit.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18825481/main.jpg -
RTA opens bridge connecting DWTC to Al-Mustaqbal Street Administrator18 August 2026
Dubai’s Roads & Transport Authority (RTA) has opened a new 500-metre, two-lane bridge connecting traffic from Dubai World Trade Centre (DWTC) and One Central to Al-Mustaqbal Street.
The bridge will reduce travel time from DWTC to Al-Mustaqbal Street from around 10 minutes to about two minutes during major events.
The bridge is part of the $172m Al-Mustaqbal Street Development Project. The wider scheme includes around 2,000 metres of bridges and tunnels, along with a pedestrian bridge on Al-Sukook Street, and runs from Zaabeel Palace Street to Financial Centre Street.
As part of the project, Al-Mustaqbal Street will be widened from three to four lanes in each direction, increasing overall capacity by 33% to 8,800 vehicles per hour in both directions.
The RTA added that this is expected to cut end-to-end travel time along the corridor from 13 minutes to six minutes.
Three tunnels, totalling 1,500 metres, at the intersection of Al-Mustaqbal Street and Trade Centre Street are scheduled to open in February 2027.
These include a three-lane tunnel towards Deira with a capacity of 4,500 vehicles per hour, a two-lane tunnel for left-turn movements between the two streets, and a one-lane tunnel serving One Central.
The RTA said that the overall project completion rate has reached 85%.
In February last year, MEED exclusively reported that the RTA had selected local firm Wade Adams to undertake improvement works on Al-Mustaqbal Street.
Planning for growth
The Dubai 2040 Urban Master Plan was launched in March 2021. Its launch referenced studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.
In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan.
In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.
The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi 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:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/18822891/main.jpg -
Saudi Arabia approves new procurement law Administrator17 August 2026
Saudi Arabia’s Council of Ministers has approved a new Government Tenders and Procurement Law (GTPL), introducing changes to public procurement procedures and government contracting.
The Ministry of Finance announced the approval on 5 August.
The new law aims to strengthen governance and transparency, improve procurement planning and implementation, and promote fairness and equal opportunities in government contracting.
The changes give government entities greater flexibility in procurement while introducing new provisions that could affect contractors and suppliers, including contract variations, outstanding payments and procurement procedures.
Contract flexibility
According to a Ministry of Finance summary of the key amendments, one of the main changes allows government entities to increase existing contract items by up to 20% of the contract value. Contractor approval is required for increases exceeding 10%, while the total increase from adding new items or increasing existing items cannot exceed 20% of the contract value.
The amendments also introduce measures addressing outstanding payments to contractors. A government entity cannot make a new award when it has outstanding amounts owed to contractors for works or procurement and the required procedures have not been taken, after notification from the Ministry of Finance.
Exceptions apply where non-payment relates to ministry procedures or where the government entity has taken the required action on a claim but does not have sufficient budget allocations.
Single committee
Under the new law, the committees responsible for opening and examining bids will be merged into a single committee.
The maximum value for direct procurement will rise from SR100,000 ($26,700) to SR1m ($267,000) while government entities will be required to explain and document their use of direct procurement.
Direct procurement will also be permitted in cases involving research, development and innovation and certain contracts with professional practitioners.
The amendments reduce the minimum standstill period following a procurement award from five working days to three working days. Government entities will also be able to negotiate where the best bid exceeds the estimated cost plus the permitted contingency.
Localisation
The new framework includes provisions covering industrial localisation and knowledge transfer. The Ministry of Finance said it will issue rules for contracting for these purposes in cooperation with the Local Content and Government Procurement Authority.
A new regulation will also cover research, development and innovation, including tendering and contracting provisions for these activities.
Other changes involve contractors’ exposure to penalties. The maximum delay penalty on contracts, excluding supply contracts, will fall from 20% to 15% of contract value. The maximum penalty for non-performance in continuous-performance contracts will also fall from 20% to 15%.
The value of purchases exempt from providing a final guarantee will rise from SR100,000 ($26,700) to SR300,000 ($80,000). Additional exemptions will apply to contracts with professional practitioners and emergency or urgent cases.
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GCC reviews first phase of water interconnection study Administrator17 August 2026
The GCC General Secretariat has completed the first phase of a study examining the feasibility of developing water interconnection projects between GCC member states.
A two-day workshop reviewing the study’s findings concluded on 12 August at the headquarters of the GCC Interconnection Authority (GCCIA) in Dammam, Saudi Arabia.
The GCC General Secretariat organised the workshop in cooperation with GCCIA, with representatives from relevant authorities and experts in water, infrastructure and water security taking part.
Participants reviewed the first phase findings, including an assessment of existing water supply infrastructure and the actual water needs of GCC member states. They also discussed the technical requirements and data needed to complete the study.
The study is intended to identify practical options and feasible solutions for developing a regional water interconnection network. This includes establishing an implementation roadmap.
The initiative aims to improve the GCC states’ ability to respond to emergencies and crises and support continuity of water supplies.
First meeting
The workshop followed a virtual meeting on 22 July between the GCC General Secretariat and Saudi Arabia’s water authorities as part of the study.
That meeting, which also involved consultancy Artelia, reviewed the study’s methodology and implementation stages. These include assessing existing water systems across GCC states, their resilience and emergency readiness, and developing technical options for bilateral water interconnection projects.
In Saudi Arabia, the study is focused primarily on the Eastern Province and Riyadh. It is assessing water production and desalination facilities, transmission pipelines, strategic reservoirs, pumping stations and existing and planned projects.
The study is also examining potential bilateral connections between Saudi Arabia and Bahrain, Kuwait and Qatar, as well as the possibility of a connection with the UAE.
The 22 July meeting also discussed potential connection points and routes, water flow directions and the possibility of designing interconnection pipelines to operate in both directions.
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KJO allows more time for Dorra gas project PMC bids Administrator17 August 2026

Al-Khafji Joint Operations (KJO) has allowed engineering firms additional time to prepare fresh proposals for a revised tender for project management consultancy (PMC) services on the multibillion-dollar Dorra gas field facilities development project.
MEED has been reporting since last March on KJO’s efforts to advance a project to produce gas from the offshore Dorra field, located in Gulf waters in the Neutral Zone shared by Saudi Arabia and Kuwait.
KJO, which is jointly owned by Aramco subsidiary Aramco Gulf Operations Company and KPC subsidiary Kuwait Gulf Oil Company, divided the engineering, procurement and construction (EPC) scope of work for the Dorra field gas production project into four EPC packages – three offshore and one onshore. It recently awarded contracts for all the EPC packages, worth close to $7bn in total.
The tender’s broad scope involves providing PMC services for the EPC works for the Dorra gas facilities development project.
KJO issued the original tender for PMC services on 29 September last year, and engineering firms submitted bids on 19 January this year, MEED previously reported.
In the months following bid submission, KJO held discussions with bidders on contract terms and pricing, sources said. The client ultimately decided to retender the PMC services contract with a revised scope of work, MEED reported in late July.
“The regional conflict in the first and second quarters, and Iran’s hostilities against Gulf states, made the future of the [Dorra gas] project uncertain,” a source previously told MEED.
“[For KJO], developing a gas field that lies in disputed waters with Iran seemed risky business at the time, and that explains the large part of the delay [in the PMC tendering process],” the source added.
KJO had set an initial bid submission deadline of 17 August for the revised PMC tender for the Dorra gas facilities development project, it was previously reported.
The client has now extended the deadline for submission of proposals by three weeks, to 7 September, sources said.
The following firms, among others, are understood to have been invited by KJO to bid for the revised PMC tender:
- Fluor (US)
- KBR (US)
- Technip Energies (France)
- Wood (UK)
- Worley (Australia)
In addition to these bidders, firms that submitted proposals in the first tender round on 19 January included Saudi Arabia/UAE-based Kent and Spain’s Tecnicas Reunidas.
Saudi Arabia and Kuwait have been pressing ahead with their plan to jointly produce 1 billion cubic feet a day of gas from the Dorra gas field.
The two countries have been producing oil from the Neutral Zone – primarily from the onshore Wafra field and the offshore Khafji field – since at least the 1950s. With a growing need to increase natural gas production, they have been working to exploit the Dorra offshore field, understood to be the only gas field in the Neutral Zone.
Discovered in 1965, the Dorra gas field is estimated to hold 20 trillion cubic metres of gas and 310 million barrels of oil.
The Dorra facilities scheme is one of three multibillion-dollar projects launched by subsidiaries of Aramco and KPC to produce and process gas from the Dorra field that have advanced in the past few months.
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Neom’s next phase is crucial to green hydrogen pipeline Administrator17 August 2026
Commentary
Mark Dowdall
Power & water editorThe completion of construction at Neom Green Hydrogen comes at an important point for Saudi Arabia’s wider hydrogen ambitions.
The project has already shown that a large green hydrogen scheme can secure financing by reaching financial close in 2023 with long-term offtake from Air Products.
With the facility now moving into commissioning ahead of a targeted commercial operations date next year, Neom could soon give lenders and developers real evidence on the performance, costs and risks of a large-scale green hydrogen project.
That could be important for projects still moving through development. Acwa’s Yanbu Green Hydrogen Hub, for example, is targeting commercial operations in 2030.
The project has brought in Germany’s EnBW as a co-developer and minority investor and Japan’s Itochu as a co-developer, investor and offtaker. Acwa is targeting production of 2.5 million tonnes a year of green ammonia from the hub.
Saudi Arabia is also putting more of the framework around the industry in place. In July, the government granted Acwa exclusive rights to export green hydrogen produced in the kingdom along with its derivatives, including green ammonia, methanol and fuels.
However, partnerships and policy support alone will not remove the commercial questions facing projects. Yanbu still needs to progress through development and secure the financing needed to move into construction.
Neom’s financing structure and 30-year offtake may be specific to the project, but its operating performance should give future developers and lenders a clearer reference point for assessing production, reliability and costs.
While Neom will not make the next projects bankable on its own, if it stays on track and performs as expected, it could give lenders a stronger basis for assessing projects that follow. In the long-run, this could be one of its most important contributions.
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