meed-logo

line1 line2 line3
SIGN IN / REGISTER

Top pending projects in 2024

27 December 2023

 

This report on 2024 projects also includes: Upcoming regional projects hit $270bn

$17.6bn
Neom City Development Programme

Project client: Neom

Since its launch in 2017, Saudi Arabia’s Neom has announced numerous masterplans – among them the 170-kilometre-long The Line, the partly offshore industrial city Oxagon and the Trojena mountain resort. These projects make up a large part of the $17.6bn of work currently under bid within the gigaproject.

As the $500bn gigaproject becomes a busy construction site, the construction industry has started to benefit from a sharp increase in contract awards. In 2023, Neom contract awards hit $10bn, making it a major regional market in its own right – one that is only surpassed by Saudi Arabia, the UAE and Qatar.

$3.6bn
The Line

Significant progress has been made on the construction of The Line. Work on The Line’s backbone infrastructure tunnels began in June 2022, when Neom awarded $2.7bn-worth of contracts for lots two and three of the scheme to a joint venture of Shibh al-Jazira Contracting, China State Construction Engineering Corporation and FCC Construction.

Another contract worth about $1.8bn for lots four and five was awarded to a team of Archirodon, Samsung Engineering and Hyundai Engineering.

Neom is prioritising the construction of the railway that forms part of the infrastructure corridor known as the Spine within its phased delivery plan. In August 2023, Neom awarded package A3 for the mountain railway tunnels on The Line to China Construction Third Engineering Bureau. The same month, Neom invited companies to bid for the $500m track works as part of the railway network programme along the spine of The Line. The contract award is expected in the first quarter of 2024.

$4.1bn
Oxagon

The Oxagon industrial city, launched in late 2021, is a 48 square-kilometre development that includes onshore elements as well as floating structures offshore. Its port, Duba Port, is being expanded to act as a key conduit for the delivery of materials into Tabuk Province. Construction at the site is now well under way, with a team of Boskalis, Besix and the local Modern Building Leaders delivering the $800m first phase of the Duba Port expansion project. In October 2023, Belgium’s Deme and Greece’s Archirodon were also awarded the $1bn contract to complete the next phase of the port.

Looking ahead, contractors have submitted bids for packages one and two of the Delta Junction tunnel project as part of the Neom Industrial City Connector at Oxagon. The scheme is likely to be awarded in early 2024 and is split into two packages covering 26.5km of tunnelling.

$3.7bn
Trojena

Neom is steadily advancing its plans to deliver several key components of Trojena, with Saudi Arabia set to host the 2029 Asian Winter Games at the location in 2022. It recently completed the technical evaluation of the proposals for the Trojena dams, and the client and selected contractors are now negotiating the commercial aspects of the project.

In 2023, Neom engaged three contractors on an early contractor involvement basis: a consortium of the local Al-Ayuni with Turkiye-headquartered Limak; Beijing-based PowerChina; and Italy’s WeBuild. In October, Neom awarded a $1.2bn infrastructure development contract at Trojena to a joint venture of the local Al-Ayuni Investment & Contracting and Turkish Limak Holding. In August 2023, the tender was issued for the contract to construct the shell and core components of the Vault at Trojena. 

In 2023, Neom contract awards hit $10bn, making it a major market in its own right – surpassed only by Saudi Arabia, the UAE and Qatar

$7.7bn
National Renewable Energy Programme

Project client: SPPC

In November 2023, Saudi Power Procurement Company (SPPC) kicked off the procurement process for the fifth round of Saudi Arabia’s National Renewable Energy Programme, issuing the request for qualifications for a new batch of four solar power plant projects.

Saudi Arabia has publicly tendered over 6.6GW of renewable energy capacity since 2017, of which about 4.4GW, or 66 per cent of the total tendered capacity, has been for photovoltaic solar schemes. SPPC is set to procure 30 per cent of the kingdom’s target installed renewable energy capacity of 58.7GW by 2030. 

$7bn
UZ1000 Upper Zakum Expansion

Project client: Adnoc Offshore

The UZ1000 Upper Zakum expansion will increase the oil production potential of Abu Dhabi’s largest producing oil asset – the Upper Zakum offshore field – to 1.2 million barrels a day (b/d). The $7bn contract for the development of surface facilities on the project is the largest single project package currently under bid in the region. 

Bids for the work have been submitted by the UK’s Petrofac, the local Target Engineering Construction Company and Spain’s Tecnicas Reunidas.

$6bn
Duwaiheen nuclear power plant

Project client: Duwaiheen Nuclear Energy Company

The $6bn first package of Saudi Arabia’s Duwaiheen nuclear power plant entails the construction of two 2,800MW nuclear reactors on behalf of the special purpose vehicle the Duwaiheen Nuclear Energy Company. In November, the deadline for the tendering process was extended to 31 December, two months later than the previous deadline. Expected bidders include China National Nuclear Corporation, France’s EDF, Korea Electric Power Corporation and Russia’s Rosatom.

$4.8bn
Dubai Metro Blue Line

Project client: Dubai’s Roads & Transport Authority

The Dubai Metro Blue Line is a $4.8bn project that will connect the existing Red and Green lines by means of an additional 30km of track, 15.5km underground and 14.5km above ground, together with 12 additional stations and the expansion of connecting stations. The scope of the contract also includes the supply of 28 driverless trains, the construction of the train depot and all associated works. The project was tendered by the Roads & Transport Authority after the project was greenlit in November 2023. Expressions of interest are being sought from three experienced international consortiums.

$4.5bn
Ruwais LNG Terminal

Project client: Adnoc Gas Processing

Adnoc Gas Processing is evaluating bids for a liquefied natural gas (LNG) terminal at Ruwais, UAE, worth an estimated $4.5bn. This project involves constructing a plant that will add 9.6 million tonnes a year of liquefaction capacity and will be the first electric LNG plant in the Mena region. Bids for the projects have been submitted by South Korea’s Hyundai E&C, Japan’s JGC Corporation, the US’ McDermott, local firm NPCC, Italy’s Saipem and France’s Technip Energies.

$4bn
Al-Zour North IWPP: Phases 2 and 3

Project client: Kapp

The $4bn phases two and three of Kuwait’s Al-Zour North independent water and power project (IWPP) involve constructing a 2,700MW power plant coupled with a desalination facility with a capacity of 165 million gallons a day. The Kuwait Authority for Partnership Projects (Kapp) is currently reviewing the prequalification documents for five potential bidders.

$4bn
North Field Production Sustainability: Phase 2

Project client: QatarEnergy LNG

The $4bn phase two, scope D of the North Field Production Sustainability project in Qatar involves the delivery of two large offshore gas compression complexes that will weigh between 25,000 and 35,000 tonnes as part of a total of 100,000 tonnes of fabrication. Bid submissions are due in December 2023, and the expectation is that both US’ McDermott and Italy’s Saipem will make bids.

 Upcoming regional projects hit $270bn 

https://image.digitalinsightresearch.in/uploads/NewsArticle/11381755/main.gif
John Bambridge

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

Click here to register
Exclusive from Meed
Related Articles
  • Chinese firm wins 2.6GW Saudi inverter deals

    21 November 2024

    The engineering, procurement and construction (EPC) contractors implementing two of Saudi Arabia Public Investment Fund's (PIF) cluster-four solar photovoltaic (PV) projects have awarded contracts for the supply of inverters to China's Sineng Electric.

    The Jiangsu-headquartered company secured an order for 1GW of inverters from China Energy Engineering Group Consortium for the Haden solar PV project and 1GW from Indian contracting firm Larsen & Toubro for the Al-Khushaybi solar PV project.

    Sineng will provide its 8.8MW MV turnkey stations, each comprising 2 units of 4.4MW central inverter, a transformer and a ring main unit (RMU) for the solar projects.

    Designed to "withstand extreme temperatures [of] up to 51ºC… and strong sand-laden winds", the 8.8MW MV turnkey stations are expected to deliver consistent and reliable performance throughout the solar PV plants' operational lifespan.

    The PIF awarded the contracts to develop three cluster-four solar PV projects to a consortium led by Saudi utility developer Acwa Power earlier this year.

    The developer consortium, which includes PIF-backed Water & Electricity Holding Company (Badeel) and Saudi Aramco Power Company (Sapco), reached financial close for the three projects, which have a total combined capacity of  5,500MW, in September.

    The solar PV projects and their capacities are:

    • Haden solar PV (Mecca): 2,000MW
    • Muwayh (Mecca): 2,000MW
    • Al-Khushaybi (Qassim): 1,500MW

    The respective project companies that have been formed for the three projects are Buraiq Renewable Energy Company, Moya Renewable Energy Company and Nabah Renewable Energy Company.

    Acwa Power’s effective shareholding in each of the three projects is 35.1%. Badeel owns 34.9% and Sapco, a subsidiary of state majority-owned oil giant Saudi Aramco, owns the remaining shares.

    The project companies signed financing documents amounting to SR9.7bn ($2.6bn), Acwa Power previously announced. The financing duration is 27.3 years.

    The three projects are being procured under the National Renewable Energy Programme's (NREP) Price Discovery Scheme, which is being implemented by the PIF.

    Under this scheme, the projects are directly negotiated with Acwa Power and its selected partners.

    The three new solar PV facilities have a combined value of SR12.3bn ($3.3bn) and are expected to become operational in the first half of 2027.

    The PIF and its partners are currently developing several solar PV projects with a total capacity of 13.6GW, involving over $9bn in investments. These joint projects – including Sudair, Shuaibah 2, Ar Rass 2, Al-Kahfah and Saad 2 – are intended to enable and support the local private sector through domestic supply-chain participation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12963512/main.jpg
    Jennifer Aguinaldo
  • Marubeni-led team reaches 1.1GW wind financial close

    21 November 2024

    A developer consortium led by Japan's Marubeni Corporation has reached financial close with a team of lenders for the contracts to develop two wind independent power producer (IPP) projects in Saudi Arabia.

    Marubeni and the local Ajlan & Bros won the contracts to develop the first two wind schemes of the kingdom's National Renewable Energy Programme (NREP) round four, the 600MW Al-Ghat and the 500MW Waad Al-Shamal wind IPPs, in May this year.

    According to an industry source, the following lenders will provide financing for the two projects:

    • Japan Bank for International Cooperation (Jbic)
    • Standard Chartered Bank (UK)
    • Sumitomo Mitsui Trust Bank (Japan)
    • Commercial Bank of Dubai (UAE)

    The consortium agreed to develop and operate the 600MW Al-Ghat wind IPP project with a new world-record-low levelised electricity cost (LCOE) from wind power of $cents 1.56558 a kilowatt-hour (kWh), or about 5.87094 halalas/kWh.

    The 500MW Waad Al-Shamal project has also achieved a second world-record-low tariff for wind power of $cents 1.70187/kWh or 6.38201 halalas/kWh, the energy ministry announced in May.

    The tariff achieved for Al-Ghat is almost 22% lower compared to the LCOE agreed for Saudi Arabia's first wind IPP, the 400MW Dumat Al-Jandal scheme, which a team comprising the UAE's Abu Dhabi Future Energy (Masdar) and France's EDF Renewables won in 2019.

    Marubeni will own 51% while Ajlan will maintain a 49% stake in the project company that will implement the projects.

    MEED previously reported that the same team is expected to win the contract to develop and operate the third wind scheme of NREP round four, the 700MW Yanbu wind IPP.

    The contract could be awarded before the year-end, according to a source.

    It is understood that other teams, separately led by local utility developer Acwa Power, France's Engie and EDF Renewables, submitted proposals for the contract to develop the Yanbu wind IPP scheme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12959899/main.jpg
    Jennifer Aguinaldo
  • L&T signs $400m Riyadh-Kudmi transmission contract

    20 November 2024

    India-headquartered contracting firm Larsen & Toubro (L&T) has signed a contract with state utility Saudi Electricity Company (SEC) for the construction of a new 500-kilovolt (kV) high-voltage direct current (HVDC) project in Saudi Arabia.

    The contract is valued at SR1.51bn ($400m).

    The project involves constructing a section of the HVDC transmission lines from the Riyadh Power Plant 14 (PP14) in the capital to the southwest coastal region of Kudmi.

    MEED understands that the contract was awarded on a lump-sum turnkey basis.

    The other two sections of the HVDC transmission project, which has a total length of 1,089-kilometres (km), have been awarded to South Korea's Hyundai Engineering & Construction Company and Saudi Services for Electro Mechanic Works (SSEM).

    Earlier this month,  Hyundai E&C announced winning a KRW1tn ($725m) contract as part of the PP14-Kudmi HVDC network project. Hyundai E&C's portion of the total package extends over 369km, and is expected to be completed by January 2027.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12955076/main.jpg
    Jennifer Aguinaldo
  • Dewa tenders motorised butterfly valves contract

    20 November 2024

    State utility Dubai Electricity & Water Authority (Dewa) has issued a tender for a contract to build the first phase of a project to convert butterfly valves to motorised butterfly valves for its water transmission pipeline.

    The utility set a AED7.1m ($1.9m) bid bond for the contract.

    According to Dewa, the closing date for submitting the completed tender online is 26 December.

    Dewa plans to increase its water desalination capacity from 495 million imperial gallons a day (MIGD) to 735MIGD by 2030, with reverse osmosis capacity accounting for around 303MIGD.

    By 2030, it aims for 100% of desalinated water to be produced using clean energy and waste heat.

    Dewa has also extended the bid deadline for a contract to design, supply, install and commission a 2.5MW alkaline electrolyser turnkey project to 9 December.

    The initial tender closing date was in mid-September. 

    Alkaline electrolysis is one of the most common methods of producing green hydrogen. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12953774/main.jpg
    Jennifer Aguinaldo
  • OQGN gets approval for 193km gas transport pipeline

    20 November 2024

    Register for MEED's 14-day trial access 

    Oman’s OQ Gas Networks (OQGN) has said it has received regulatory approval to build a new 193-kilometre (km) loop line between Fahud and Sohar in the sultanate.

    The Fahud-Sohar loop line project, which will feature a 42-inch gas transport pipeline, “is designed to bolster Oman’s natural gas infrastructure and support regional energy needs”, OQGN said in a filing with the Muscat Stock Exchange (MSX), where its shares started trading in October last year.

    Scheduled for completion in 2027, the new pipeline will have a gas transport capacity of 9 million cubic metres a day.

    OQGN, a subsidiary of Oman’s state-owned energy holding conglomerate OQ, manages a network of 4,045km of gas pipelines, along with three compressor stations at Fahud, Nimr and Buraimi, and 29 gas supply stations. The company delivers gas to 130 consumers, including power plants, desalination facilities and other industrial complexes.

    In August, the company inaugurated a new 208km-long gas pipeline in Dhofar governorate. The project, known as Saib, increases the total size of OQGN’s natural gas transportation network (NGTN) to 4,258km, and raises its transport capacity by 60% from 10 million to 16 million cubic metres a day.

    The new pipeline runs alongside an existing 24-inch pipeline in Dhofar in the southern part of the sultanate.

    ALSO READ: OQ seeks to raise $490m from downstream products unit IPO

    OQGN previously said it plans to increase the pipeline length to 4,222km in 2024, then to 4,287km in 2025, 4,344km in 2026 and 4,472km in 2027.

    The firm expects network capacity to rise from 69.3 billion cubic metres in 2023 to 71.1 billion cubic metres in 2024, 77.1 billion cubic metres in 2025 and 2026, and 79.7 billion cubic metres by 2027.

    Correspondingly, the volume of gas the pipelines transport is projected to increase from 40.5 billion cubic metres in 2023 to 41.7 billion cubic metres in 2024, 43 billion cubic metres in 2025, 44.3 billion cubic metres in 2026, and 45.6 billion cubic metres by 2027.

    Parent entity OQ published details on OQGN’s current and upcoming projects in a prospectus released last October as part of its subsidiary’s initial public offering (IPO) exercise.

    OQGN had been allocated a capex budget of $148m for 2023, while spending in the medium term has been set in the $600m-$750m range, OQ said in the IPO prospectus.

    OQGN has also been tasked with pushing through several projects to expand its NGTN and improve connections with its consumers.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/12952716/main5626.jpg
    Indrajit Sen