Upcoming Mega Projects Middle East

SAUDI ARABIA

Project: Construct Green Hydrogen Plant
Value: USD 5,000,000,000
Client: Acwa Power
Website: www.acwapower.com

The $5bn (€4.3bn) green hydrogen-based ammonia production plant will be built at a site in north-west Saudi Arabia where NEOM is developing a smart city and innovation hub. The plant will supply 650 tonnes of green hydrogen for exporting globally.

The plant will integrate with over 4GW of renewable energy sources, from solar, wind and energy storage and is slated to come onstream in 2025. Electrolysyer technology will be provided by Thyssenkrupp. Air Products’ equipment will be produce nitrogen by air separation, while 1.2 million tonnes, annually, of green ammonia will be manufactured using Haldor Topsoe technology. Air Products will be the exclusive offtaker of the green ammonia and intends to transport it around the world to be dissociated to produce green hydrogen for the transportation market.

OMAN

Project: Establish Low Sulphur Fuel Oil
Value: USD 1,500,000,000
Client: Canada Business Holdings Inc
Website: www.canadaholdings.com

A Canadian investment firm is moving ahead with plans for the establishment of a Low Sulphur Fuel Oil (LSFO) refinery in the Sultanate to cater to the growing needs of ships transitioning to low-emission fuels for maritime transportation. Ottawa-based Canada Business Holdings Inc (CBH), described as a specialist in the delivery of large projects based on the Private-Private-Partnership (PPP) model, announced earlier this week that it will proceed with the phased development of a 300,000 barrels per day (bpd) capacity refinery with an investment of around $1.5bn. It did not specify the exact location of the project, but noted that the plant is proposed to come up within an industrial free zone in the Sultanate overlooking the Arabian Sea. The refining process is based on a unique Canadian technology with proven results in turning poor-quality fuel into cleaner and higher grades. The expected ROI is 22 per cent per annum. The structured investment is based on a global fund based in London, UK and open to interested investors.

UNITED ARAB EMIRATES

Project: Jubail Island Master Development
Value: USD 1,300,000,000
Client: Jubail Island Investment Company (JIIC)

Master planned development known as Jubail Island has been launched in Abu Dhabi. The development will be sandwiched between the Yas Island and Saadiyat Island developments. The 400-acre low-density community is designed to appeal to wellness and nature enthusiasts, and includes residential, retail, hospitality, entertainment, and education offerings, the project’s developer, Jubail Island Investment Company (JIIC). The project has been designated as an Abu Dhabi investment zone and features six investment zone villages - Marafaa Al Jubail, Nad Al Dhabi, Seef Al Jubail, Ain Al Maha, Souk Al Jubail and Bed’a Al Jubail.

The 13km waterfront project would comprise a mix of serviced plots, high-end and midrange properties that would cater to nationals and the rental market, and would house a resident population of 5,000-6,000 people after completion. With infrastructure works starting in early January 2020, works on villa construction will begin by year end, and villa handover is slated for 2023.

SAUDI ARABIA

Project: Unayzah Gas Reservoir Storage Project
Value: USD 500,000,000
Client: Saudi Arabian Oil Company (ARAMCO)
Website: www.aramco.com

The EPC contract is expected to be awarded by second week of December 2019, and the project is slated for completion and commissioning by fourth quarter of 2022. The deadline for technical bid submission was extended to October 7 while commercial submission deadline is October 20. The client had pre-qualified Samsung Engineering, Hyundai Engineering and Construction Co, Technip, JGC Corporation and Daelim Industrial Co for the project but Daelim declined to participate in the tender. Saudi Aramco is planning to construct an underground sales gas storage facility with a storage capacity of 1,500 million standard cubic feet per day (MMSCFD) expandable up to 2,000 MMSCFD. Worley Parsons is the front-end engineering and design (FEED) study consultant for the project.

SAUDI ARABIA

Project: Obhur Waterfront Development Project
Value: USD 61,000,000
Client: Jeddah Municipality
Website: www.jeddah.gov.sa

Jeddah Municipality has announced the launch of a waterfront development project at Obhur at a cost of SR229 million. The proposed 2.8km waterfront project aims to develop over 180,000sqm in the project area. The project is to be completed in 30 months.

It is one of the Kingdom’s Vision 2030 projects and comes within the humanizing cities initiative with the aim of contributing to improving the quality of life in Jeddah governorate and raising the per capita share of green space and recreation areas.

The project involves reconstruction of the road, setting up squares and paths for pedestrians and bicycles, green areas, planting various trees, setting up play areas, fountains, models and various services where smart elements and a sandy beach for swimming and investment areas are available.

SAUDI ARABIA

Project: Qiddiya Entertainment City Road Bridge Project
Value: USD 40,000,000
Client: Qiddiya Investment Company
Website: www.qiddiya.com

The main construction contract is expected to be awarded by early October 2020. The estimated cost of the project is $40m. The project’s completion schedule is December 2023. The bidders list includes El Seif Engineering Contracting, Almabani General Contractors, Shibh Al Jazira Contracting, Nesma & Partners, and Al Rashid Trading & Contracting. Dar Al Handasah Nazih Taleb and Partners has been mandated as design and infrastructure consultant for the project.