State-owned operators in the Middle East, including Oman's OQ, QatarEnergy, and Abu Dhabi National Oil Company (Adnoc), are actively expanding their capabilities for natural gas liquids (NGL) production. NGLs are widely used across industrial and transportation sectors, driving this regional push for increased capacity and infrastructure.

Oman's OQ NGL Project

Oman’s OQ has initiated the front-end engineering and design (FEED) contract process for a new NGL extraction plant. The company is seeking domestic and international contractors for pre-qualification, with bids expected to be submitted soon and a finalized bidder list anticipated within months, potentially by early next year. The project is set to move from FEED directly into the engineering, procurement, and construction (EPC) phase, allowing major EPC players to participate.

The NGL extraction facilities will be located in Saih Nihayd in central Oman. The extracted NGLs will then be transported to Duqm for fractionation, storage, and export. Phase One of the project is expected to include gas separation, storage, and export facilities within the Special Economic Zone at Duqm. OQ aims to prequalify contractors capable of handling the entire project lifecycle, from FEED through to EPC, including commissioning and performance guarantees.

A critical development for the project's viability is a recently signed agreement with Oman's Integrated Gas Company (IGC), the nation's sole natural gas aggregator and supplier. This agreement guarantees the delivery of 48 million cubic metres per day of natural gas for 20 years to the Saih Nihayda NGL extraction project, securing the necessary long-term feedstock.

QatarEnergy's NGL Expansion

Concurrently, QatarEnergy is advancing its own NGL production capabilities. A consortium comprising India’s Larsen & Toubro (L&T) and Greece's Consolidated Contractors Group (CCC) has been awarded a major contract for an NGL plant and allied facilities. The project involves the engineering, procurement, construction, installation, and commissioning of a plant to process Rich Associated Gas (RAG), including all associated utilities and integration with existing facilities.

This contract is for the NGL-5 project, a key megaproject in Mesaieed Industrial City. The expansion aims to boost Qatar's NGL output, replace older units, and enhance overall efficiency in gas processing. The four existing NGL plants in Mesaieed currently produce propane, butane, and condensate primarily for export, and the addition of the NGL-5 facility will further scale up the country's production capacity.