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  Shell approves Egypt offshore gas project

  31 August 2026

  BG Delta, a Shell subsidiary, has reached the final investment decision for phase 12a of the West Delta Deep Marine (WDDM) development project.

  The project will be implemented in partnership with Malaysia’s Petronas and state-owned Egyptian General Petroleum Corporation (EGPC).

  Shell, Petronas and EGPC formed a joint venture called Burullus Gas Company to operate the WDDM concession.

  Phase 12a includes drilling and completing three deepwater gas wells, with production expected to begin in 2028, according to a statement from the London-headquartered company.

  The wells will be tied into existing subsea infrastructure, helping accelerate development, improve capital efficiency and limit the need for additional facilities.

  Dalia El-Gabry, the vice-president and chairperson of Shell Egypt, said: “This investment demonstrates our commitment to maximising the remaining potential in WDDM where the right technical and commercial conditions exist.

  “By leveraging existing infrastructure and our proven development experience, we can accelerate delivery while reinforcing our partnership with the Egyptian government and joint venture partners to help meet Egypt’s energy needs.”

  The new development builds on phases 10 and 11, which brought six wells online during 2024 and 2025.

  Its scope also covers facility installation, tie-in operations, commissioning and connection to existing offshore infrastructure.

  Egypt’s Ministry of Petroleum & Mineral Resources said in May that about $350m had been allocated to phase 12a.

  In April, Egypt’s Petroleum Marine Services (PMS) was awarded a contract for offshore works for phase 12 of the WDDM field development project.

  The contract awarded to PMS uses the engineering, procurement, installation and construction contract model.

  Under the scope of the contract, PMS will install the required electrical, hydraulic and mechanical connections in deep waters to tie three new gas wells into production as part of phase 12.

  The scope also includes the installation of three final triple tie-in spool bases to complete the connection between the wells.

  During phases 10 and 11 of the WDDM project, PMS laid two offshore electrical cables at water depths reaching 660 metres, in addition to carrying out well tie-in and production connection works at depths of up to 880 metres.

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  Wil Crisp
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  Contractors appointed for Group 1 battery storage projects

  27 August 2026

  

   

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  Two contractors have been appointed for engineering, procurement and construction (EPC) works on Saudi Arabia’s four Group 1 battery energy storage system (bess) projects with a combined capacity of 2,000MW, a source has confirmed to MEED.

  Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), recently signed four storage service agreements for the bess projects, which will provide four hours of storage, equivalent to 8,000 megawatt-hours (MWh), and involve a total investment of more than SR4.35bn ($1.16bn).

  Three projects were awarded to a consortium comprising Saudi Energy, Acwa and Al-Sharif Contracting & Commercial Development Company.

  According to the source, India’s Larsen & Toubro will carry out EPC works for these three projects, comprising the Al-Muwyah and Haden bess independent storage providers (ISPs) in the Mecca region, and the Al-Kahafa bess ISP in the Hail region.

  Each has a capacity of 500MW for four hours. The three projects have a combined capacity of 1,500MW and 6,000MWh.

  L&T recently announced that it had secured “a major order” for bess projects in the Middle East but did not disclose the specific projects involved.

  The fourth project, the Al-Khushaybi bess ISP in the Qassim region, was awarded to a consortium of France’s Engie and local firm Haji Abdullah Alireza & Co. This also has a capacity of 500MW for four hours. 

  China’s Sepco 3 has been appointed as the EPC contractor for this project, a source said.

  The agreements cover the first group of ISP bess projects being procured by SPPC under a build, own and operate model. The projects are supervised by the Energy Ministry.

  The projects form part of Saudi Arabia’s efforts to achieve an electricity generation mix comprising approximately 50% renewable energy by 2030.

  As previously reported, the Group 2 programme comprises six ISP projects with a total capacity of 3GW, equivalent to 12,000MWh based on a four-hour storage duration.

  Developers recently submitted a first round of clarification requests to SPPC as they prepare their bids in advance of an October deadline.

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  Mark Dowdall
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  Accor and Al-Qimmah plan 4,000 Saudi rooms

  27 August 2026

  France’s hotel operator Accor has expanded its partnership with local firm Al-Qimmah Hospitality, a subsidiary of Saudi Arabia’s BinDawood Investment Company, to develop more than 4,000 hotel rooms in the kingdom.

  The plan focuses on building a portfolio in Mecca and Medina.

  The expanded agreement was announced in Paris during the French-Saudi Investment Roundtable. It follows a master development agreement signed in 2025. The partnership now covers five hotels in Jeddah, Mecca and Medina across the premium, midscale and economy segments.

  One planned development is an 850-room Novotel in Mecca, due to open in 2030. The agreement also covers the Mercure Makkah Shesha, ibis Styles Makkah Mesfalah, Movenpick Madinah and Swissotel Jeddah properties.

  The partnership will also support job creation and Saudi workforce development through Tamayyaz by Accor, the group’s national talent programme run with the Saudi Ministry of Tourism. The programme aims to develop and hire more than 3,000 Saudi nationals by 2030.

  Accor has operated in Saudi Arabia for more than three decades and runs 48 hotels with more than 21,600 rooms nationwide. Its pipeline includes a further 47 properties comprising more than 11,400 rooms.

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  Colin Foreman
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  Jeddah tenders stormwater drainage contracts

  27 August 2026

  Jeddah Municipality has invited contractors to bid for a contract covering the construction of a rainwater drainage network for the Prince Fawaz neighbourhood.

  The project aims to collect and convey rainwater away from residential streets and low-lying areas. It is valued at $60m and intended to reduce flooding risks during heavy rainfall.

  The scope includes manholes, stormwater catch basins and connections to existing manholes as well as the restoration of road surfaces.

  The bid submission deadline is 12 October.

  The municipality is also progressing with a second stormwater drainage project for the first package of Zone (BC), Old Zahraa in Jeddah Governorate, with bids due on 2 September. The project is valued at about $30m.

  The two projects are part of the municipality’s wider drainage programme, which includes the flagship King Abdullah Road-Falasteen Road tunnel project.

  MEED previously reported that Saudi contractor Thrustboring Construction Company had been selected for phases one and two of the project, each valued at about $175m, covering the construction of large-diameter stormwater drainage tunnels.

  It is understood that an official agreement has yet to be signed.

  In June, MEED reported that local contractor Alkhorayef Water & Power Technologies (AWPT) had signed two contracts with Jeddah Municipality to operate and maintain stormwater and surface water drainage networks across the city.

  The contracts have a combined value of SR202.06m ($53.9m), and each will run for five years.

  The first contract, valued at SR108.46m ($28.9m), covers the operation and cleaning of stormwater and surface water networks in the South and Al-Malisa sub-municipalities.

  The second contract, worth SR93.59m ($25m), covers similar services for the Airport Sub-Municipality.

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  Mark Dowdall
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  OQ seeks revised prices for NGL project from preferred contractors

  26 August 2026

  

   

  Omani state energy conglomerate OQ Group has sought revised commercial proposals from a set of preferred bidders for its planned project to build a major natural gas liquids (NGL) facility in the sultanate.

  The planned NGL facility at Saih Nihayda in central Oman will extract condensates and transport them to Duqm on the sultanate’s Arabian Sea coast for fractionation and export, OQ Group said.

  OQ Group intends to deliver the project using a front-end engineering and design (feed)-to-engineering, procurement and construction (EPC) competition model. Under this model, the project operator selects contractors to carry out the feed work. The operator then awards the EPC contract to the contractor with the most competitive feed proposal, while compensating the other participants for their work.

  MEED reported in June that OQ Group was seeking revised prices from contractors it had selected earlier this year to participate in the feed-to-EPC competition. Contractors submitted their revised bids by 6 July.

  According to sources, OQ Group entered into negotiations with bidders in the weeks after receiving the revised commercial bids. The client is then said to have approached only the following three contractors for their final commercial offers on the NGL project:

  • Saipem (Italy)
  • Tecnicas Reunidas (Spain)
  • Tecnimont (Italy)

  MEED previously reported that the contractors who had submitted their original proposals to OQ for the feed-to-EPC competition on 20 May were:

  • Hyundai Engineering & Construction (South Korea) / KBR (US)
  • JGC Corporation (Japan)
  • Petrofac (UK)
  • Saipem (Italy)
  • Technip Energies (France)
  • Tecnicas Reunidas (Spain)
  • Tecnimont (Italy)

  OQ issued the main tender for the feed-to-EPC competition in March, setting an initial deadline of 8 April for contractors to submit proposals, which it later extended to 6 May and then again to 20 May.

  MEED previously reported that the state enterprise had started the prequalification process for the feed-to-EPC contest for the planned NGL project in November last year, with contractors submitting responses by 15 December.

  In addition to the contractors understood to have submitted proposals for the feed-to-EPC competition, OQ also invited the following firms to participate, although they are understood to have pulled out of the contest later:

  • Chiyoda (Japan) / CTCI (Taiwan)
  • GS Engineering & Construction (South Korea)
  • Kent (UAE)
  • Samsung E&A (South Korea) / Larsen & Toubro Energy Hydrocarbon (India) / Wood (UAE).

  Project scope of work

  The scope of work on the project covers the development, verification and integration of feed deliverables for the following facilities and systems:

  NGL extraction facility – Saih Nihayda:

  • Verification and updating of the existing feed to enable dual-mode operation (ethane recovery and ethane rejection)
  • Identification and implementation of required process, equipment, utilities and control system modifications
     

  NGL pipeline – Saih Nihayda to Duqm:

  • Feed for a new NGL transmission pipeline stretching approximately 230 kilometres, including routing, hydraulics, stations, pigging facilities, metering, corrosion protection, leak detection and safety systems
     

  Fractionation unit at Duqm:

  • Feed for a new fractionation facility to process ethane and propane plus NGL and recover propane, butane, condensate, and the provision for future ethane recovery
  • Design accommodating licensed or open-art technology and future tie-in to a planned petrochemicals project in Duqm
     

  Product pipelines, storage and export facilities at Duqm jetty:

  • Feed for product pipelines, cryogenic and atmospheric storage tanks, vapour recovery systems, marine loading arms and export facilities
  • Integration with existing port and refinery infrastructure, where feasible
     

  Supporting systems and studies:

  • Utilities, offsites, flare systems, safety and environmental studies, cost estimates (class 2+10%), project schedules, constructability assessments and EPC tender documentation

  Gulf NGL projects

  Gulf national oil companies have been allocating significant capital expenditure to the construction or expansion of NGL production facilities.

  In September last year, QatarEnergy awarded the main EPC contract for its project to add a fifth NGL train at its fractionation complex in Qatar’s Mesaieed Industrial City. The aim of the project, which is estimated to be worth $2.5bn, is to build a fifth NGL train (NGL-5) with the capacity to process up to 350 million cubic feet a day of rich associated gas from QatarEnergy’s offshore and onshore oil fields.

  The main EPC contract for the QatarEnergy NGL-5 project was won by a consortium of India’s Larsen & Toubro Energy Hydrocarbons Onshore and Greece-headquartered Consolidated Contractors Group.

  Separately, MEED reported in March that the gas processing business of Abu Dhabi National Oil Company (Adnoc Gas) had selected the main contractor for a project to install a fifth NGL fractionation train at its Ruwais gas processing facility in Abu Dhabi.

  The fifth NGL fractionation train will have an output capacity of 22,000 tonnes a day, or about 8 million tonnes a year. The Ruwais NGL Train 5 project represents the second phase of Adnoc Gas’ Rich Gas Development programme, and its budget is estimated to be about $4bn, Peter Van Driel, Adnoc Gas’ chief financial officer, confirmed in February.

  ALSO READ: PDO floats tender for major flare gas monetisation scheme

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  Indrajit Sen