Adnoc has shortlisted Saipem and MAIRE for work on a new LNG export terminal in Fujairah, a project that could top $5 billion and give the UAE a way to ship gas without passing through the Strait of Hormuz.
Adnoc Shortlists Saipem, MAIRE for Fujairah LNG
The selection matters because East Coast LNG would add a major new liquefaction hub in the Gulf at a time when energy companies are trying to harden export routes against geopolitical risk. The planned 4 million-tonne-a-year facility would sit on the Gulf of Oman, outside the chokepoint that has become a central concern for Gulf energy flows.
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According to industry sources cited by Upstream, Adnoc has picked three contenders for the engineering tender: Saipem with Larsen & Toubro, Technip Energies with JGC, and Tecnimont, the MAIRE unit, bidding alone. The process is expected to move later to an EPC phase covering engineering, procurement and construction, which is where the bigger revenue opportunity lies for contractors.
For Saipem and MAIRE, winning a place in the early round reinforces their positioning in large Middle East gas projects and could translate into follow-on EPC awards. The project would also include a pipeline from Habshan in Abu Dhabi to Fujairah and a new compressor at Habshan, linking a production hub deep inside the UAE to an export terminal on the east coast.
The timing is notable. LNG markets remain sensitive to disruptions in the region, with QatarEnergy extending force majeure on some deliveries and buyers in Asia and Europe still adjusting to shifting supply routes. Any new Gulf export capacity that avoids Hormuz has strategic value for Adnoc, potential security value for buyers and a clear earnings catalyst for engineering and construction groups.
Saipem’s Milan-listed shares were recently trading just below 4.40 euros, while MAIRE was near 12.60 euros. Both stocks have already outperformed over recent months, and the Fujairah award process now gives investors another project pipeline to watch as the tender advances toward EPC awards.
| Entity | Gains | Losses |
|---|---|---|
| Saipem | ▲Potential EPC work | ▼Unsuccessful bidders |
| MAIRE / Tecnimont | ▲Engineering-to-EPC pipeline | ▼Marginalized rivals |
| Adnoc | ▲Export route outside Hormuz | ▼Dependence on chokepoint shipping |
| LNG contractors | ▲Higher project backlog | ▼Limited near-term award access |
