Meed | TotalEnergies selects Marsa LNG contractor

TotalEnergies selects Marsa LNG contractor

25 January 2024

French energy major TotalEnergies has selected the main contractor for its planned project to build a major liquefied natural gas (LNG) bunkering and export terminal in Oman’s northern city of Sohar.

France-based Technip Energies has been picked to perform engineering, procurement and construction (EPC) works on the estimated $1bn LNG terminal project, according to sources.

Technip Energies received the letter of intent from TotalEnergies earlier in January, the sources said. The official contract award and the final investment decision meeting are yet to take place, they added.

TotalEnergies and Technip Energies did not respond to MEED’s request for comment on the information.

TotalEnergies is leading a joint venture named Marsa LNG, which is the Sohar LNG terminal project developer. Marsa LNG was formed in December 2021 through an agreement between TotalEnergies and the sultanate’s state energy holding company OQ. The partners own 80% and 20% stakes, respectively.

Marsa LNG intends to develop an integrated facility consisting of upstream units that will draw natural gas feedstock from TotalEnergies’ hydrocarbon concessions in the sultanate, particularly from Blocks 10 and 11; an LNG bunkering terminal and storage units located in Sohar port; and a solar photovoltaic (PV) plant to power the LNG terminal.

The Marsa LNG terminal will have a single train with the capacity to process about 1 million tonnes a year (t/y) of natural gas into LNG. The bunkering terminal will mainly supply LNG as a marine fuel to vessels.

MEED recently reported that TotalEnergies was evaluating proposals received from contractors last year for the Marsa LNG terminal project.

ALSO READ: Contractors submit commercial bids for Ruwais LNG facility

MEED, in July last year, reported that TotalEnergies had asked contractors participating in the Marsa LNG terminal project’s feed-to-EPC competition to submit revised proposals for the front-end engineering and design (feed) based on changes to the scope.

The following three contractors, which were previously selected to participate in the feed-to-EPC competition by TotalEnergies, submitted revised proposals for the feed by the end of August:

JGC Corporation (Japan)
McDermott (US)
Technip Energies (France)

According to sources, the bidders have been compensated by TotalEnergies for their feed submissions.

The validity of the contractors’ fresh proposals is until the end of February, sources previously said.

Feed-to-EPC contest

The feed-to-EPC model involves shortlisted contractors preparing feed proposals for the project. The project owner then evaluates those feed submissions, and awards the firm with the most competitive and efficient feed proposal the contract to perform the project’s EPC works.

TotalEnergies started the feed-to-EPC contest for the Marsa LNG project in May 2019 by shortlisting the three bidders.

The project operator had been on course to reach FID by the end of 2022, MEED previously reported.

TotalEnergies, however, eventually changed the project’s size and scope in 2023. Following modifications to the scope of work, contractors began “updating their feed proposals for Marsa LNG, based on the new requirements of the project”, a source previously told MEED, adding, at the time, that revised feed bids were due to be submitted during the “third quarter”.

According to the project’s revised timeline, EPC works will commence in the first quarter of 2024.

Project scope of work

The scope of work on the Marsa LNG project is broadly categorised into the following four segments:

Process structures – Gas inlet station unit, liquefaction unit and refrigerant storage unit (if applicable)
Utilities: Import power from national grid, fuel gas system, air cooling system, steam system, instrument and plant air systems, nitrogen recovery unit and fire water system
Offsite and common facilities: Flare, vent, relief and blowdown, LNG storage and loading unit, LNG rundown line, LNG bunkering facilities, boil off-gas handling
Support buildings: Control building, main administration building, LNG laboratory, warehouse, workshops, among others

MEED has previously reported that the key changes TotalEnergies has made to the Marsa LNG project include shifting the site at least 1 kilometre closer to the Port of Sohar facility. This will “enable easy and seamless refuelling and export activities”, according to one source.

Another alteration introduced building a solar PV farm to generate clean power to primarily run the LNG bunkering terminal.

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Indrajit Sen

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Saudi Energy, formerly Saudi Electricity Company, has announced revised electricity tariffs, which will take effect on 1 January 2027.

The revised tariff schedule, published on the company’s official website, covers residential, commercial, industrial, agricultural, charitable and government customers.

The largest percentage increase in consumption rates is 16.7%, for residential customers using up to 6,000 kilowatt-hours (kWh) a month. Residential customers will pay 21 halalas/kWh for monthly consumption of up to 6,000kWh, up from 18 halalas. For consumption above 6,000kWh, the rate will rise from 30 to 33 halalas/kWh, a 10% increase.

The industrial tariff will increase by 15%, from 20 to 23 halalas/kWh. Commercial customers, private healthcare facilities and private educational facilities will pay 25 halalas/kWh, up from 22 halalas, for consumption up to 6,000kWh a month, and 35 halalas/kWh above that level, up from 32 halalas.

Tariffs for charities and government customers will also increase. In addition to consumption-based charges, customers will pay a fixed monthly fee based on the capacity of their electricity meter. This replaces the previous separate charge for meter reading, maintenance and billing, with VAT applied to the revised tariffs.

Electricity investment

The new tariffs coincide with changes to water consumption tariffs announced by the National Water Company, also effective from 1 January 2027.

King Salman Bin Abdulaziz Al-Saud directed support measures following a proposal presented by Crown Prince and Prime Minister Mohammed Bin Salman Bin Abdulaziz Al-Saud.

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The tariff changes come as Saudi Arabia plans substantial investment in its electricity infrastructure. In September 2025, Saudi Energy announced plans to invest SR220bn ($58.7bn) in power infrastructure projects between 2025 and 2030.

A June 2025 report by Fitch Ratings forecast negative free cash flow of about SR16bn a year over the period and rising leverage, reflecting the financial demands of the programme.

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Dubai Municipality confirms AED3bn Tasreef drainage awards
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The projects will cover Jumeirah, Umm Suqeim, Al-Quoz, Al-Barsha, Al-Wasl and Al-Marmoom. The works include constructing and extending main stormwater drainage lines with diameters of up to three metres.

The four packages are part of Dubai’s AED30bn Tasreef programme, which aims to increase the emirate’s stormwater drainage capacity by 700% and reduce costs associated with pumping stations, network operations and maintenance by 20%.

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In May, MEED reported that NCC had been awarded a contract to build a sewage and stormwater drainage system, DS-204. However, it is unconfirmed whether this relates to the same project.

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Phase four includes 257 homes across four buildings, with completion targeted for the second quarter of 2029.

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Saudi Arabia’s Sports Ministry has tendered a contract covering early works at King Salman International Stadium in Riyadh.

The scope includes enabling works, site preparation and initial construction activities.

The tender was issued on 11 October, with a submission deadline of 19 November.

The stadium will cover about 660,000 square metres (sq m) and seat 92,000. Facilities will include a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

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Firms submitted prequalification statements for the main design-and-build contract in February.

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In August 2024, MEED reported that Saudi Arabia planned to build 11 new stadiums and refurbish four facilities for the 2034 Fifa World Cup.

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A further 10 cities will host training bases: Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

There are expected to be 134 training sites in the kingdom, including 61 existing facilities and 73 new venues.

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