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LNG investment is expected to more than double in 2026 compared with 2025. (image source: Adobe Stock)

 

Oil investment is set to decline for a third consecutive year, while natural gas investment is projected to rise to the highest level in a decade, according to the 2026 edition of the IEA’s annual World Energy Investment report

Despite higher oil prices, oil investment is expected to fall below US$500bn, as uncertainty over the duration of the price spike, long project lead times, supply chain constraints and tighter offshore rig markets limit spending outside the Middle East.

Global upstream investment is expected to rise marginally in 2026, with declines in the Middle East and North America offset by increases mainly in Central and South America and Africa, but new refinery investment is expected to fall to decade-level lows.

At the same time, natural gas investment is projected to rise to US$330bn, supported by a wave of new LNG export projects, particularly in the USA and Qatar. LNG investment is expected to more than double in 2026 compared with 2025 as more than 230 bcm of projects advance toward peak construction.

The report highlights that the impact of the conflict in the Middle East and the effective closure of the Strait of Hormuz is prompting countries and companies to reshape energy investment strategies with a focus on security and diversification, particularly in Asia and the Middle East.

The report projects that total global energy investment will reach US$3.4 trillion in 2026, a slight increase year-on-year. Around US$2.2 trillion is expected to go to grids, storage, low-emissions fuels, nuclear, renewables, efficiency and electrification in 2026, while around US$1.2 trillion is set to be invested in oil, natural gas and coal.

Electricity and diversification drive spending

Electricity and diversification are driving growth in energy spending with countries seeking to respond to the second energy crisis in five years with new routes and domestically available resources. There is a growing focus among fuel-importing countries on domestic energy sources including renewables, nuclear power and, in some cases, coal. Investment in renewable power projects is expected to total around US$665bn in 2026, with US$365bn going toward solar alone. Nuclear investment is continuing its resurgence, exceeding US$80bn annually, with close to 80 gigawatts of new nuclear capacity under construction across 15 countries.

Coal investment, meanwhile, is also set to rise to US$180bn in 2026, the highest level since 2012, with China accounting for almost 70% of global coal supply spending. The report notes that some Asian countries may seek to keep existing coal-fired power plants operating for longer to bolster energy security.

Electricity-related investment remains a dominant theme. Investment in electricity supply and infrastructure is expected to reach nearly US$1.6 trillion in 2026 with spending on electricity grids projected to approach US$550bn, up nearly 20% year-on-year, while battery storage investment is set to exceed US$100bn.

The electricity demands of the rapid expansion of data centres and artificial intelligence are also becoming a major influence on energy investment trends in some markets, particularly in the USA. Orders for new gas-fired power plants reached a 25-year high in 2025, with data centre needs playing a significant role.

The report highlights an increased focus on energy efficiency as a result of the crisis, although there are plenty of gaps that need to be filled.

The report notes that the Middle East conflict is impacting the availability of finance for future energy projects, triggering volatility within financial markets, slowing investment decisions in the short term and pushing up long-term financing costs. This could disproportionately affect capital-intensive energy technologies, the report warns, particularly in emerging and developing economies where financing costs are already significantly higher than in advanced economies.

“We are in the midst of the largest energy security crisis the world has ever faced – and I believe this will reshape investment strategies globally, with parallels to the major changes the energy world witnessed after the oil shocks of the 1970s,” said IEA executive director Fatih Birol. “We are already seeing intensified efforts by both producer and consumer countries to diversify trade routes and energy sources – such as advancing new pipelines and other supply infrastructure, on the one hand, and turning more to domestically available resources, on the other. These range from renewables and nuclear to coal, oil and gas, in some cases – as well as broader measures to strengthen electricity systems, expand electrification and accelerate energy efficiency.”

TCP is a strong, non-corrosive, spoolable, lightweight technology which is delivered in long lengths. (Image source: Strohm)

Leading thermoplastic composite pipe (TCP) manufacturer Strohm has won a contract to supply a 2,000m flowline for one of the West Delta Deep Marine (WDDM) projects offshore Egypt

The project is operated by Burullus Gas Company, a joint venture between EGAS, Shell and Petronas.

It represents Strohm’s first contract in Egypt as well as being the first use of this type of TCP solution in the region, according to the company.

The carbon fibre and PA12 polymer TCP flowline has a design pressure of 5,000psi and is qualified to DNV-ST-F119 standard. It will be installed by Oceaneering International at water depths of almost 600m, replacing an existing steel flowline. It will be installed using the highly flexible and cost effective horizontal lay method, enabling the use of a multi-purpose vessel and avoiding the need for specialised installation vessels

TCP is a strong, non-corrosive, spoolable, lightweight technology which is delivered in long lengths, resulting in a significant reduction of transportation and installation costs. it is installed using small vessels or subsea pallets, significantly reducing CO2 emissions, and is also 100% recyclable.

Norman Lentsch, Strohm’s business development manager for Africa, said, “This contract marks an important milestone for us as we enter the Egyptian market for the first time. We are proud to work with Oceaneering International and Burullus Gas Company as we support the region’s growing energy infrastructure needs with our high-quality flowline solutions.”

“Our entry into the local market underscores the confidence operators have in our TCP products, our extensive track record and our ability to deliver consistent quality and performance. We look forward to demonstrating Strohm’s commitment to safety and excellence.”

Chris Dyer, senior vice president at Oceaneering’s Offshore Project Group, added, “At Oceaneering, we have extensive experience installing flexible products, including TCP. By leveraging our umbilical product installation capabilities to support TCP installations, we can maximise our assets globally and streamline project execution, providing tangible benefits to the end user in overall project cost and schedule."

Wood will optimise the complex pipeline network. (Image source: Wood)

Consulting, engineering and operations provider, Wood, has been contracted by China Offshore Oil Engineering Company (COOEC) for QatarEnergy’s Bul Hanine EPIC2 project offshore Qatar

The contract secures scope for delivery of a detailed design for QatarEnergy’s Bul Hanine EPIC2 project offshore Qatar. 

The field is characterised by a complex pipeline network to which Wood will find an optimised approach for boosted production capacity and extended asset lifetime, drawing on extensive subsea engineering and flow assurance expertise.

Wood will undertake the design of 25 pipelines, including ensuring safe interaction where pipelines cross existing infrastructure and managing thermal expansion to protect long-term integrity, alongside crossing analysis for 15 umbilicals and two power cables.

Gerry Traynor, regional president - Middle East, Africa & Caspian, at Wood, said, “Wood has a strong track record in delivering offshore detailed design and in optimising installation solutions for complex subsea systems. By working collaboratively with COOEC, we are bringing together complementary strengths that will help accelerate QatarEnergy’s ambition to extend the field’s life, increase capacity and boost production from these critical, ageing assets.”

Wu Zhixing, Deputy Director of COOEC Engineering Company, said, “COOEC is glad to be QatarEnergy's trusted partner for the Bul Hanine EPIC2 Project. This is an important milestone which will build on our continual strong track record in the industry, strengthens our presence and commitment to support the energy landscape in the Middle East, and a testament of COOEC's capability in delivering a trusted EPIC solution for mega offshore projects.”


The robot is now carrying out routine inspections on site. (Image source: ADNOC)

ADNOC has successfully deployed Taurob’s heavy-duty inspector robot at its Taweelah Gas Compression Plant, where it will conduct autonomous inspections in hazardous environments without putting people at risk.

The robot acts as a first layer of surveillance to detect potential gas leaks, temperature anomalies and other operational hazards. Equipped with advanced sensing systems, including 3D LiDAR and 360-degree thermal imaging, it is built to operate in extreme conditions while reducing the need for human exposure to dangerous areas.

By integrating robotics into daily operations, ADNOC aims to strengthen early hazard detection and enhance decision-making for its engineering teams. The system supports continuous monitoring and provides real-time data to improve plant safety and reliability.

In parallel, ADNOC announced plans to advance its robotics programme through the development of a heavy-duty “operator” robot capable of not only visual inspection but also physical interaction with industrial equipment. The next-generation system, being developed under the ARGOS Joint Industry Project with partners including Equinor, TotalEnergies, and others, is expected to handle tasks such as valve operation and equipment manipulation in hazardous zones. It is designed for deployment in temperatures ranging from –20°C to 60°C and is targeted for operation by the end of 2026.

Dena Almansoori, ADNOC’s group chief technology and innovation officer, said robotics and artificial intelligence were central to the company’s long-term operational strategy.

She said, “Artificial and physical intelligence are transforming how we operate across our value chain. At Taweelah, autonomous robots are already active in live environments, supporting safer and more efficient operations. This innovation is enhancing safety, reducing emissions and strengthening performance in line with national AI and robotics strategies.”

The initiative forms part of ADNOC’s wider integration of AI, robotics and digital monitoring systems across its operations to reduce risk exposure and improve industrial safety performance.

ADNOC’s tools such as HSE Cockpit.ai, which has reduced safety incidents by 30%, provide real‑time visibility to help prevent incidents before they occur, while robots and drones carry out hazardous inspections, emissions monitoring and incident response across land, sea and air, including use cases such as red‑zone and confined‑space operations. Together, these capabilities embed safety into day‑to‑day execution and continue to expand the value ADNOC is delivering through advanced robotics and AI at scale.

The two companies will collaborate on solutions that convert flared and stranded gas into power. Image source: Aggreko

Aggreko (Middle East) Limited and Czech energy technology company InoWatti a.s., signed an agreement at the Oman Petroleum & Energy Show (OPES) 2026 to collaborate on solutions that convert flared and stranded gas into power for high-density computing and other industrial uses.

The agreement outlines a joint framework for deploying modular gas‑to‑power systems at flare‑gas sites across Oman. Under the MoU, Aggreko will provide gas‑to‑power generation and engineered energy solutions, while InoWatti will manage commercial development, including site identification, operator engagement, and integration of mobile high‑density computing infrastructure.

Together, the partners will focus on flare‑gas environments where permanent infrastructure is not economically viable, including early‑stage production sites, remote fields, and locations with intermittent or low‑volume gas streams.

“This agreement strengthens our commitment to helping operators reduce flaring through practical, scalable energy solutions. By pairing Aggreko’s gas‑to‑power capabilities with InoWatti’s commercial and flexible computing infrastructure, we see a clear opportunity to turn previously wasted gas into productive power that supports operational performance and emissions reduction,” commented James Smith, business development manager, Projects & Gas, at Aggreko Middle East.

The partnership supports national objectives under Oman Vision 2040, which prioritises emissions reduction, improved resource efficiency, and the adoption of technologies that enhance operational sustainability in the oil and gas sector.

“InoWatti's expertise in flare gas monetisation, combined with Aggreko's world-class power generation expertise, creates a compelling proposition for oil and gas operators looking to eliminate flaring and unlock new revenue streams,” added Jakub Hlavenka, CEO at InoWatti a.s.

Gas flaring wastes natural gas that could be used for productive purposes, such as power generation, as well as contributing to climate change through the emission of CO2; at current levels, global flaring is estimated to result in about 400 million tons of CO2e emissions annually, according to the World Bank. The World Bank’s latest Global Gas Flaring Tracker reveals that global gas flaring volumes rose to 151 bcm in 2024 from 148 bcm in 2023, the highest level since 2007.

InoWatti’s mission is to eliminate routine gas flaring by converting wasted associated gas into a productive energy source, turning an environmental liability into a profitable asset for oil and gas operators. By deploying modular gas-to-power units directly at the flare site, InoWatti enables operators to generate new revenue streams, improve ESG performance, achieve regulatory compliance, and power co-located data centre operations.

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