17 June 2025
Navigating the Surge: Rising Opportunities and Evolving Risks in the Middle East and North Africa’s Oil & Gas Developments
The Middle East and North Africa (MENA) regions are experiencing continued growth in both conventional oil and natural gas/Liquefied Natural Gas (LNG) development projects across the value chain — from upstream exploration to midstream processing and distribution. This rapid growth is generating economic opportunities for both contractors and operators (construction and well services), field operators, as well as midstream operators managing critical storage and transportation infrastructure.
This uptick in projects creates a new layer of operational and financial considerations, requiring bespoke and scalable insurance solutions to ensure resilience, continuity and competitive advantage for even the most complex projects.
Regional growth trajectory
The increasing interest in the natural gas industry in MENA is largely driven by national oil companies pursuing ambitious and sustainability strategies:
- In January 2025, ADNOC Gas announced a USD2.1 billion investment in critical LNG infrastructure — including pre-conditioning facilities, compression systems and transmission pipelines — demonstrating the company's strategic commitment to expanding its Ruwais LNG capabilities and strengthening its position in the global gas market.
- Qatar's Energy Minister and QatarEnergy CEO Saad al-Kaabi announced plans in February 2025 to increase the nation's LNG production capacity by an additional 16 million tonnes per annum (mtpa) by 2029-2030, elevating total output to 142 mtpa and further reinforcing Qatar's dominant position in the global LNG market.
- Under Kuwait Petroleum Corporation's (KPC) revised strategy, its subsidiary Kuwait Oil Company (KOC) is set to expand its gas production capacity significantly. The ambitious plan targets a daily output of 1.5 trillion cubic feet by 2040.
- Saudi Arabia has significantly expanded its energy portfolio with the confirmation of an additional 15 trillion standard cubic feet of gas reserves at Aramco's Jafurah field in February this year, bringing total reserves to 229 trillion cubic feet of gas and 75 billion barrels of condensate.
As MENA accelerates natural gas developments, both upstream and downstream operators are facing increasingly complex risk environments.
Rising complexities
The increasing global demand for natural gas is driving operators to pursue larger, more ambitious projects. This appetite for higher output pushes operational boundaries into more difficult areas and more complex methods of resource extraction. This comes with an increase in potential exposures, from surveying challenging landscapes to the complexities of drilling new wells and to the logistical and technical hurdles of transporting materials using specialised pipelines and vehicles.
Crucially, the contractor and midstream segments typically operate in the private sector, reducing regulatory barriers and allowing for more agile, commercially focused risk placement strategies.
This regulatory flexibility is in clear contrast to the growing technical and operational demands of large offshore LNG projects, which are often handled by state-owned oil and gas companies.
As MENA accelerates natural gas developments, both upstream and downstream operators are facing increasingly complex risk environments, from the offshore construction and drilling phases through to the storage and international distribution of the products, therefore making tailored insurance solutions not just beneficial, but essential.
Contractor landscape: New horizons, new hazards
New developments can significantly elevate contractors’ risk profiles, particularly in the initial project phase. As installations mature, routine servicing and maintenance will be required, which comes with its unique risk considerations. However, this ongoing need for construction, servicing and maintenance of state-of-the-art installations can represent good opportunities for contractors, but only when contractors are backed by comprehensive and robust insurance coverages.
Midstream momentum: Supply, demand and infrastructure
Midstream developments are prolific. New storage terminals are appearing across the region, while ambitious pipeline networks are under development to transport products efficiently to the market. This development is further supported by regional governments actively promoting private investment in infrastructure, creating a regulatory environment conducive to growth. Across the Gulf Cooperation Council (GCC) from 2019 to 2023, strategic engagement with the private sector facilitated an estimated USD1.6 trillion investment in infrastructure development. For instance, Kuwait enacted Law 116 (2014) and established the Kuwait Authority for Partnership Projects (2014). Saudi Arabia followed suit with its 2021 Private Sector Participation Law, managed by the National Center for Privatization and PPP, focusing on infrastructure and public services. However, this influx of private capital brings increased investor scrutiny and requires transparent risk management frameworks.
The need for effective risk identification and management
The complex nature of natural gas and LNG operations demands insurance solutions that truly understand the sector's unique challenges and comprehensively respond to any arising loss scenarios.
As MENA's natural gas sector continues its strong growth throughout 2025 and into 2026, the demand for tailored risk management solutions will increase, particularly for contractors and midstream operators.
Gallagher specialist risk engineers in the MENA region act as key intermediaries between clients and underwriters. The team conducts detailed surveys, prepares comprehensive health and safety reports, and reviews operational procedures to support appropriate coverage and pricing. This consultative approach ensures that underwriters receive the insight they need, helping to simplify the insurance process while improving protection.
For contractors facing operational risks, Gallagher exclusive energy contractor facility provides robust property damage coverage with available extensions to cover third-party liabilities and loss of hire/loss of profits.
Similarly, midstream operators across the MENA region benefit from Gallagher's exclusive midstream facility, which is one of the largest of its kind in the reinsurance market. This product will enable clients to achieve an ultra-competitive rating and broad coverage as a result of the economies of scale driven by the existing client base within the facility. Gallagher utilises the facility on a global basis, which means that clients in MENA will be pooled with clients from America, Europe and Asia to achieve the best possible programme.
Both facilities are based in the London market, offering unparalleled follow capacity and exclusive access through Gallagher, positioning us strongly in the region, able to deliver these tailored solutions at scale.
Gallagher combines global expertise, strong market access and comprehensive protection to help navigate this evolving energy landscape with confidence. Our in-depth understanding of MENA's regulatory environment and business practices ensures that our insurance solutions align with regional requirements.
Speak with a Gallagher specialist to learn more about our exclusive products for contractors and midstream operators.
Let's talk
The Walbrook Building
25 Walbrook
London, EC4N 8AW
Arthur J. Gallagher (UK) Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AW. Registered in England and Wales. Company Number: 119013.