Doha, Qatar: Gulf Cooperation Council (GCC) project awards surged 86 percent during the second quarter (Q2) of 2023 to reach $49.7bn as compared to $26.7bn in awards during Q2, 2022 underlining the determination of the GCC countries to execute and reach their diversification targets, according to a report by Kamco Invest.

Citing the data gathered by MEED Projects, the report noted that the total value of contracts awarded in Qatar jumped 8.3 times year on year (y-o-y) to reach $10.4bn as compared to $1.1bn in second quarter of 2022.

The growth in contract awards was mainly due to the performance of the country’s gas sector which represented nearly 97 percent of total value of projects awarded during the quarter. Total values of gas sector projects awarded jumped nearly 16 times to reach $10bn during Q2, 2023 up from $600m in Q2, 2022, it added.

Moreover, the steep growth of total value of projects awarded in the country was mainly due to one megaproject awarded by QatarEnergy. The state-owned energy company has awarded a $10bn EPC (engineering, procurement and construction) contract for the North Field South (NFS) megaproject to a joint venture of Technip Energies and Consolidated Contractors Company (CCC).

Qatar’s North Field South (NFS) project is the second phase expansion of Qatar’s North Field project which remains the world’s largest single non-associated gas field and comprises of two LNG mega trains with a combined capacity of 16 million tonnes per annum.

The EPC contract’s scope is extensive and includes the construction of two LNG trains with estimated capacity of 8 million each. The project also includes the construction of carbon capture and sequestration facilities.

The report further stated that the strong rise in the total value of project awards in the GCC is also a significant indicator of the health of the economies in the GCC region.

The was the highest quarterly project awards value for over five years. Saudi Arabia alone accounted over 49.1 percent of the contracts awarded in the GCC region during Q2, 2023 while Saudi Arabia, UAE and Qatar combined represented 94.4 percent of the overall projects in the GCC.

In terms of sector classification it added, the gas sector witnessed the biggest increase in the value of projects awarded during the year recording $10.3bn y-o-y increase in new contract awards to reach a total of $11.9bn during Q2, 2023.

According to MEED Projects, total GCC contracts that are in tender or most likely to be awarded this year are expected to surpass $110bn in 2023 led by Saudi Arabia, Qatar and UAE project markets which are poised to witness significant growth each this year. Moreover, Kuwait and Oman are also expected to witness sharper increases in value of contract awards during 2023.

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