Major Oil and Gas Projects in the Middle East
The Middle East has been the leading oil and gas producer for over a decade and retains its stronghold in the field. The current scenario is witnessing massive development in the projects market, and there has been a significant spike in investments. From 2021 through 2025, the Middle East will see 615 oil and gas projects tendered. There are 143 midstream projects, 77 upstream projects, 83 refinery projects and 312 petrochemical projects in various stages of development. Amongst the plethora of projects, the following are some of the Middle East’s major oil and gas projects.
- Jafurah Gas Field – Jafurah gas field is in the Eastern Province and holds an estimated 200 trillion standard cubic feet of gas in place. The basin hosts the largest liquid-rich shale gas in the Middle East, covering 17,000 square kilometres. Natural gas production at Jafurah will ramp up from 200 million standard cubic feet per day (scfd) in 2025. It will reach a sustainable gas rate of two billion SCFD of sales gas by 2030, with 418 million SCFD of ethane and around 630,000 barrels per day of gas liquids and condensates, essential feedstock for the growing petrochemical industry. This project will make Saudi Arabia one of the world’s largest natural gas producers. As of 30th November, Saudi Aramco has awarded a $1.7 billion contract to a joint venture between Hyundai Engineering Co. and Hyundai Engineering & Construction Co. The contract is to construct a facility that will process gas from the Jafurah field and includes a sulfur recovery unit. Hyundai Engineering holds 55% in the JV, while Hyundai E&C holds 45%.
- Al Zour Refinery – The Al-Zour Refinery is in Al Zour, approximately 90 kilometres south of Kuwait City, adjacent to the existing Al-Zour South Power Plant. When completed, the new complex will be one of the largest refineries globally, producing 615,000 barrels per day. The project is worth $16 billion and is estimated to be completed by 2023. The refinery boasts six trains of the world’s largest atmospheric residue or ARDS units.
- Green Hydrogen Ammonia Plant – The Green Hydrogen Ammonia Plant Project undertaken by ACME Group is all set to be constructed at the Special Economic Zone at the port of Duqm in Oman. The estimated cost of the project is $40 billion. In March 2020, the Oman Company for the Development of the Special Economic Zone at Duqm (Tatweer) and ACME Group signed a memorandum of understanding to set up a large-scale facility to produce green hydrogen and green ammonia. The gas processing plant will have the capacity to produce 10 million tons per year of green ammonia and 1.8 million tons per year of green hydrogen. The plant will be an integrated facility using 3GWp of solar and 0.5 GWp of wind energy.
- North Field East Four LNG Trains – Qatar’s North Field East LNG Project is developed by Qatargas to increase the LNG production capacity from 77 million tons per annum to 110 million tons per annum. One of the most significant additions to the North Field East project is the construction of four new LNG mega-trains, estimated at $29 billion. The capacity of each LNG train will be approximately 8 million tons per annum. The project also incorporates all associated facilities for gas treatment, natural gas liquids recovery, helium extraction and refining within the Ras Laffan Industrial City.
- Aramco LTA Program – Saudi Aramco, one of the biggest names in the world in terms of oil and gas development, has awarded eight companies with long-term agreements (LTA) to advance its oil and gas brownfield projects. The LTA program focuses on supporting local businesses and thereby helping to develop a sustainable Engineering Procurement Construction (EPC) market. The base period for these agreements is six years. Aramco has the option to extend the LTA for a further six years. These companies will partner with Aramco and develop oil and gas projects based on modern, sustainable technologies. This program will open employment opportunities and develop the workforce in Saudi Arabia.
These are some of the significant oil and gas projects in the Middle East to keep an eye on. To track Oil and Gas projects in the Middle East and Africa, get in touch with us. ABiQ tracks over $5 Trillion worth of projects in the Middle East and Africa.