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Mitsubishi Power secures Saudi project; Air Liquide to invest $200mn in US expansion
20/7/2026
News
Two heavy industry petrochemical deals will see increasing use of natural gas in Saudi Arabia and bring CO2 recycling to a US chemicals firm.
First, Mitsubishi Power has been awarded a contract to supply boiler components for a fuel conversion project at two thermal power plants in Saudi Arabia.
The agreement, signed with Dar Al Balad Contracting and Operations (DAB), covers the conversion of existing heavy oil-fired boilers into dual-fuel systems capable of operating on natural gas and heavy oil, including co-firing.
The project involves the Jeddah South and Shuqaiq power plants on Saudi Arabia’s west coast. Each plant has an installed capacity of about 2.9GW and consists of four generating units that began operating in 2017.
Mitsubishi Power previously supplied boiler components for both facilities and will use existing infrastructure as part of the conversion work.
The project is part of Saudi Arabia’s efforts to increase the share of natural gas in power generation and reduce reliance on heavy oil. The country has set a target for natural gas to account for more than 50% of its power mix.
Electricity demand remains high on the west coast, where heavy oil has historically been a primary fuel source. Converting existing plants is intended to support supply while aligning with emissions reduction goals.
Mitsubishi Power will provide equipment and technical services under its agreement with DAB. The end customer is Saudi Energy, which is overseeing fuel transition initiatives in the power sector.
Air Liquide to invest $200mn in US POX unit
Air Liquide has announced plans to invest more than $200mn to expand production at Oxea’s site in Bay City, Texas, US.
The project includes construction of a partial oxidation (POX) unit, expected to start operations in early 2029. The facility will produce syngas and hydrogen for use in Oxea’s chemical manufacturing processes.
According to Air Liquide, the unit will include a CO2 recycling system designed to reuse emissions within the production process. The project will partially replace existing units and is expected to reduce net CO2 emissions by approximately 64,000 t/y.
The investment expands Air Liquide’s industrial gas infrastructure on the US Gulf Coast, where it operates a pipeline network supplying regional customers.
