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The Hydrogen Council Board is driven by global CEOs. (Image source: Adobe Stock)

Masdar, Siemens Energy and Yara Clean Ammonia has joined the Hydrogen Council as board members, effective as of 1 January 2025

The Hydrogen Council Board is driven by global CEOs working to advance visionary ideas to leverage hydrogen as the means for the energy transition. The first board member from the Middle East, Masdar will bring valuable insights on the ambition and investment progress in the region, while Siemens Energy and Yara Clean Ammonia bring expertise in electrolysers and ammonia production respectively.

Welcoming the new members, Jaehoon Chang, CEO of Hyundai and Sanjiv Lamba, CEO of Linde, co-chairs of the Hydrogen Council, said, ‘We are pleased to welcome Masdar, Siemens Energy and Yara Clean Ammonia to the Board and work together as we guide the sector through a pivotal time for the energy transition. Hydrogen has made encouraging progress, with record levels of committed capital and projects past Final Investment Decision reported globally in 2024. However, over the next two years, regulatory stability, clear demand signals and global standardisation will be key to maintaining a robust scale-up trajectory and unlocking hydrogen’s full economic and societal benefits. We look forward to collaborating with the entire Board to tackle these challenges and driving the hydrogen industry forward together."

Mohamed Jameel Al Ramahi, CEO of Masdar, said, "The Hydrogen Council is central to advancing hydrogen as a key component in the transformation of the energy system and uniting our sector’s expertise has never been more critical. I am honoured to join the Council’s Board and work with global leaders to drive innovation, shape policies, and accelerate large-scale hydrogen deployment worldwide."

 

SMEs contributed approximately 16% to the oil and gas sector in Q2 2024. (Image source: Adobe Stock)

As part of the National Policy for Local Content that came into effect in 2023, the Ministry of Energy and Minerals (MEM) is focusing on programmes and policies to enhance local content and sustainable development in Oman

According to Ali bin Salim al Rajhi, Director General of Planning at the Ministry of Energy and Minerals, the administration is currently considering fresh perspectives to design local content, with plans to identify a new identity and introduce the Local Content Certificate Project.

While the Omanisation rate in exploration and production companies has surpassed 92% this year, Rajhi noted that the Ministry is working for similar outcomes from contracting companies. With approximately 69% of such companies from Oman, the government is looking to fill 130 positions to boost its localisation rate. 

Overall, small and medium-sized enterprises (SMEs) contributed approximately 16% to the oil and gas sector in the second quarter of 2024. 

Highlighting social responsibility in the oil and gas sector, the Ministry is also developing a general framework, inviting suggestions from several sources to ensure diversity. 

 

 

The Middle East continues to be a good source of business for EPC contractors. (Image source: Adobe Stock)

2024 has proved fruitful for EPC contractors in the Middle East, as the region increases the focus on offshore and subsea developments, gas, and energy transition projects

It has been a good year for Wood, which scooped a record US$920mn in contracts across the Middle East, with decarbonisation being a strong theme. Work in the region includes pre-FEED on Aramco’s Southern and Northern Areas project in the KSA for gas facilities in eastern Saudi Arabia; integrated front-end engineering design (FEED), detailed design, procurement support, and construction and commissioning assistance for TotalEnergies in Iraq for the first phase of the Associated Gas Upstream Project, part of the Gas Growth Integrated Project (GGIP) in Southern Iraq; as well as a flare gas reduction programme which has reduced more than 10 million tonnes of CO2 per year. Wood has also secured a contract worth around US$17mn from a leading petrochemical company in the Middle East to improve efficiency and reduce emissions on a process manufacturing plant.

To support continued growth, Wood has expanded its Middle East workforce by 500 employees in less than a year, with a 25% headcount increase in UAE alone, where it recently opened its third office in Sharjah. The company is also currently recruiting for another 130 roles across the region.

Ken Gilmartin, CEO at Wood, said: “As we underlined in our strategy, we believe the Middle East will be a huge driving force in the world’s energy transition and Wood is helping accelerate the journey to net zero in the region as a trusted partner to companies like Saudi Aramco, ADNOC, Shell and TotalEnergies.”

Another company receiving a steady flow of work in 2024 is Saipem, building on its longstanding ties with the region. The company was awarded an offshore contract in September worth around US$2bn with Saudi Aramco, for the development of the Marjan field in Saudi Arabia. It involves the engineering, procurement, construction and installation of wellhead platforms’ topsides and jackets, flowliness and subsea cables. It followed the award of two offshore contracts in Saudi Arabia together worth approximately US1bn for EPCI of production deck modules, subsea pipelines and power cables for the Marjan field, and jackets, PDMs, subsea pipelines and power cables for the Sulfa and Safaniya oilfields.

In July, Saipem was awarded an offshore EPC contract worth around US$4bn by QatarEnergy LNG for the Combined COMP3A & COMP3B of the North Field Production Sustainability Offshore Compression Program, aimed at sustaining the production of the North Field offshore natural gas reservoir.

Other major contracts this year included Tecnicas Reunidas and Sinopec Engineering Group’s two lumpsum contracts combined worth approximately US$3.3bn from Saudi Aramco for the EPC of the Riyas Natural Gas Liquids (NGL) fractionation facility in Saudi Arabia; Samsung Engineering, GS Engineering & Construction, and Nesma & Partners’ US$7.7bn EPC contract from Saudi Aramco for the Fadhili Gas plant expansion; and Technip Energies /JGC /NMDC Energy’s EPC contract worth around US$5.5bn from ADNOC for the Ruwais LNG project.

Aramco’s gas expansion was a major source of business this year, with contracts worth more than US$25bn awarded in June relating to the development of the Jafurah unconventional gas field and expansion of Aramco’s Master Gas System.

Rystad predicts energy sector volatility in 2025. (Image source: Adobe Stock)

The coming year looks set to bring more volatility, geopolitical tension and policy evolutions in terms of the energy scene, according to new research from Rystad Energy, which has highlighted significant trends that will shape the energy world in 2025

The US-China dynamic, ongoing conflicts in the Middle East and the war in Ukraine will take centre stage, while rising instability across the Global South, and the transformative impact of AI will also shape the global order. A global trade war sparked by US tariffs, and China economic slowdown are potential clouds on the horizon.

In terms of global upstream investments, Rystad forecasts a decline of 2% in 2025, with deepwater developments in Surname, Mexico and Turkiye and offshore shelf investments in Suriname Indonesia, Qatar and Russia offset by a decline in shale/tight oil investments. Despite Donald Trump’s “drill baby drill” rhetoric, US operators are less likely than ever to spend more on drilling in the face of an oversupplied market. A forecast growth in both OPEC+ and non-OPEC+ supply is set to put a downward pressure on oil prices.

“Leading into 2025, the OPEC+ balancing act will make or break oil prices, seeking to manage its market share expectations alongside non-OPEC+ growth and slowing demand,” said Aditya Saraswat, senior vice president, Upstream Research at Rystad.

Rystad also highlights ongoing supply chain issues, with geopolitical tensions and increased protectionism likely to impact the global supply chain supporting the energy transition. Within offshore oil and gas, bottlenecks around floating production, storage and offloading vessels (FPSOs), subsea kits, drilling rigs and other vessels will continue to inflate and delay capital projects. Overall, increased divestments, mergers and acquisitions are likely across the energy supply chain.

Global power demand is entering a period of accelerated growth, fuelled by industrial decarbonisation efforts, the rise of EVs and the rapid expansion of data centres, with global electricity demand from data centres set to more than double by the end of the decade.

Low carbon energy markets are set to grow, boosted by climate plans emerging from the COP29 summit.

“However, However, 2025 could be another reality check for renewables and cleantech, with shifting policies favouring fossil fuels, green energy stocks under pressure, and uncertainty about funding and subsidies,” commented Artem Abramov, head of Clean Tech Research at Rystad Energy.

Nevertheless Solar PV is set to grow by around 600TWh in 2025, and the CCUS market is poised for rapid growth, thanks to policy support, despite infrastructure hurdles.

The hydrogen sector is however facing a reality check with challenges and cancellations on the cards.

“We expect a more pragmatic approach in the clean hydrogen sector, as the cost premium for renewable hydrogen and derivatives remains largely unchanged. Additionally, 2025 will see continued progress from China and India, as they advance their clean hydrogen and derivatives agendas,” said Minh Khoi Le, head of Hydrogen Research at Rystad.

“We’re moving from a time of energy scarcity to a time of energy abundance,” says Rystad Energy CEO and founder Jarand Rystad. “Capacity additions in both fossil fuels and renewables will outpace increases in demand next year. Similarly, in the face of an oversupplied oil market, OPEC+ may need to extend its production cuts far into 2025 to protect oil prices. The era of China driving oil consumption growth is over, with the country’s peak diesel in the rearview mirror, gasoline demand plateauing and coal consumption levelling off, as it is globally.

“This is echoed in the electricity market, with 90% of the power consumption growth in 2025 coming from renewables, while nuclear and gas share the remaining 10%. The intermittency of renewable power capacity has triggered record periods of negative prices, intensifying the need for reliable energy storage. As such, 2025 could be a breakout year for energy storage systems. Of the expected 1,350 terawatt hours (TWh) of growth in global power demand, consumption by data centres – primarily fuelled by AI – is likely to grow by 13% in 2025. This equals about 3% of total electricity consumption growth, similar to the growth from the 20 million new electric vehicles (EVs) expected.

“The new Trump administration will impact domestic and global energy priorities, including pulling any levers available to increase domestic crude production, even though the industry is unlikely to respond to this stimulus.

"However, President Trump might have more success in accelerating liquefied natural gas (LNG) infrastructure investments, the results of which will not be felt for several years. These dynamics underscore the importance of careful navigation as the sector balances short-term challenges with long-term opportunities.”

The service centre will provide 24-hour engineering services for pumps and rotating equipment. (Image source: Sulzer)

Sulzer has opened a new service centre in Kuwait, to provide 24-hour engineering services for all brands of pumps and rotating equipment

The service centre at Al Ahmadi supports over 1,500 Sulzer pumps already installed in local plants across Kuwait, as well as servicing pumps from other brands. It is the first time an original equipment manufacturer (OEM) offers such comprehensive services in the region, according to the company, with customers set to benefit from fast turnaround times and higher operational productivity.

Sulzer leverages the strategic location and resources of Khuff General Trading & Contracting Company’s Al Ahmadi Service Center to ensure round-the-clock service availability for customers in the region and comprehensive support across their entire equipment range. Services at the new facility include standard part and component repairs, reverse engineering, strip-down and inspection services, advanced diagnostics and cutting-edge technologies for multiple pump brands, as well as services for rotating equipment such as gas and steam turbines, compressors and motors.

Sulzer’s services division president Ravin Pillay-Ramsamy said, “This service expansion demonstrates our ongoing commitment to customers and partners in the region. With innovative solutions and expert support tailored to their unique challenges, we optimise their operations holistically and create added value by resolving issues across their entire equipment portfolio. We're proud to offer broad technical capabilities at our Kuwait Service Center.”

David Martin, head of sales at Sulzer Middle East, added, “Our new facility ensures closer collaboration, faster repairs and retrofits, and fewer unplanned downtimes for operators. Keeping downtime to a minimum will help ensure reduced operational costs, allowing our customers to stay ahead of the competition.”

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