Shell reduces Scope 3 emissions target
18 March 2024
UK-based oil major Shell is now targeting a 15-20% reduction by 2030 in the net carbon intensity of the energy products it sells, compared with 2016, against its previous target of 20%.
The company also plans to grow its liquefied natural gas (LNG) business in line with LNG being viewed as a critical fuel in the energy transition.
Related read: BP and Shell’s spending on renewables flatlines in 2023
“We are cutting emissions from oil and gas production while keeping oil production stable, and growing sales of low-carbon energy solutions while gradually reducing sales of oil products such as petrol, diesel and jet fuel,” the company’s Energy Transition Strategy 2024 report stated.
The firm aims to achieve net-zero emissions by 2050 across all its operations and energy products and said this target is transforming its business.
Progress
The company reported making progress against its climate targets. It said as of 2023, it achieved more than 60% of its target to halve emissions from its operations by 2030, compared with 2016.
The same year, Shell said it achieved 0.05% methane emissions intensity, which is significantly below its target of 0.2%, and in line with a target to achieve near-zero methane emissions by the end of the decade.
Shell also cited that it contributed to the World Bank’s Global Flaring and Methane Reduction Fund last year, which indicates its support for an industry-wide action to drive down methane emissions and flaring.
The company noted having hit – for the third consecutive year – its target to reduce the net carbon intensity of the energy products it sells, with a 6.3% reduction compared with 2016.
To help drive the decarbonisation of the transport sector, Shell has also set a new target to reduce customer emissions from the use of its oil products by 15-20% by 2030 compared with 2021.
Power shift
The company said that its focus on where it can add the most value has led to a strategic shift in its integrated power business.
“We plan to build our power business, including renewable power, in places including Australia, Europe, India and the USA, and have withdrawn from the supply of energy directly to homes in Europe.
“In line with this shift to prioritising value over volume in power, we will focus on select markets and segments,” the firm said, indicating an intention to sell more power to commercial customers, and less to retail customers.
“Given this focus on value, we expect lower total growth of power sales to 2030, which has led to an update to our net carbon intensity target.
“We are now targeting a 15-20% reduction by 2030 in the net carbon intensity of the energy products we sell, compared with 2016, against our previous target of 20%.”
Investments
Shell plans to invest between $10bn and $15bn between 2023 and the end of 2025 in low-carbon energy solutions.
It also cited investing $5.6bn on low-carbon solutions in 2023, more than 23% of its total capital spending.
These investments include electric vehicle charging, biofuels, renewable power, hydrogen and carbon capture and storage.
Related read: Shell abandons Iraq chemicals project
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Amazon data centre hit highlights sector vulnerabilities
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Amid ongoing Iranian missile and drone attacks on GCC states, US cloud provider Amazon Web Services (AWS) has reported service outages following separate incidents at two of its UAE data centres.
“At around 4.30AM PST [16.30 UAE time on 1 March], one of our Availability Zones (mec1-az2) was impacted by objects that struck the data centre, creating sparks and fire,” AWS said in an operational update on 1 March.
At 10.46 UAE time on 2 March, the company announced a further update, saying that another of its three UAE Availability Zones had gone down.
“We can confirm that a localised power issue has affected another Availability Zone in the ME-CENTRAL-1 Region (mec1-az3),” it said in the latest update. “Customers are also experiencing increased EC2 APIs and instance launch errors for the remaining zone (mec1-az1). At this point, it is not possible to launch new instances in the region, although existing instances should not be affected in mec1-az1.
“Other AWS services, such as DynamoDB and S3, are also experiencing significant error rates and latencies. We are actively working to restore power and connectivity, at which time we will begin to work to recover affected resources. As of this time, we expect recovery is multiple hours away.”
Regional footprint
The company, part of the US’ giant Amazon group, is one of the world’s largest data centre and cloud operators. It operates three data centres in the UAE – one in Dubai and two in Abu Dhabi – and provides critical IT services to government and private sector operations and systems.
Its Availability Zones consist of infrastructure in separate geographic locations, spaced far enough apart to significantly reduce the risk of a single event affecting customers’ business continuity, yet near enough to provide low latency for high-availability applications that use multiple zones.
The targeting of the two data centres – and potentially others if the conflict continues – highlights the strategic importance of these types of facilities. The AWS attacks are believed to be the first time a data centre has been targeted in a conflict and are likely to drive a reconfiguration of future campus designs to account for similar risks.
Such changes could include increased redundancies – particularly in power provision – enhanced structural resilience, and potentially a reconsideration of the location and clustering of data centre facilities.
WATCH: Ed James explores the rapidly evolving GCC data centres market
Historically, data centres in the region were largely smaller enterprise facilities dedicated to storage services for organisations such as banks. Their locations were often confidential and in areas that were difficult to target, making them harder to disrupt.
However, the emergence of large in-region hyperscale data centres – with IT loads of 200MW or more and larger physical footprints – may necessitate a rethink of how such infrastructure is delivered, not just in the GCC but worldwide.
According to MEED Projects data, there are believed to be about 185 data centres in the region, each with an estimated capex investment value of more than $10m, of which about 99 are either planned or under construction.
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Contractor wins Oman water network contract
2 March 2026
Egypt’s Hassan Allam Construction has won an engineering, procurement and construction (EPC) contract for a water transmission network project from Al-Jardaa to Mihlaih (Sawt) in Oman’s North Al-Sharqiyah Governorate.
The contract was awarded by Oman Water & Wastewater Services Company (OWWSC).
The scope includes 76 kilometres of transmission lines and nearly 600km of distribution networks.
The project also covers seven high-capacity reservoirs, two pumping stations and seven solar-powered systems.
Hassan Allam Construction won a separate contract with OWWSC in August 2025 to build and supervise the construction of a large-scale water supply and wastewater system in Al-Amerat, Muscat.
The Al-Amerat Catchment 10 water supply, sewer system and treated effluent networks project covers the construction of a 64km gravity sewer network.
Last month, MEED exclusively revealed that China’s Hunan Installation Overseas Engineering had won an EPC contract to build water supply and sewage networks in Muscat.
The contract was awarded by state utility Nama Water Services (NWS).
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RTA opens bridge as part of Trade Centre road project
2 March 2026
Dubai’s Roads & Transport Authority (RTA) has opened a key bridge as part of the World Trade Centre roundabout project.
Extending 1 kilometre (km) from Sheikh Zayed Road to Sheikh Khalifa Bin Zayed Street towards Deira, the bridge has a capacity of 3,000 vehicles an hour.
It comprises two lanes, reducing journey time from six minutes to one minute.
In a statement, the RTA said overall project construction progress has reached 60%.
The project’s main construction works are being undertaken by the local firm Wade Adams, which was awarded a AED696m ($189m) contract to upgrade the Trade Centre roundabout in October 2024.
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The project’s scope covers the construction of five bridges spanning a total length of 5km.
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The fourth and fifth two-lane bridges will span 2km from Al-Majles Street to 2nd December Street and will connect Al-Mustaqbal Street with 2nd December Street, with a capacity of 6,000 vehicles an hour.
The scope also covers converting the existing roundabout into a surface intersection to improve the flow of traffic inbound from Sheikh Zayed Road to 2nd December Street and of southbound traffic from Al-Mustaqbal Street to Sheikh Zayed Road.
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Riyadh selects three teams for King Salman airport ECI
2 March 2026
Saudi Arabia’s King Salman International Airport Development Company (KSIADC) has selected three groups for the construction of Terminal 6 at King Salman International airport (KSIA) in Riyadh.
KSIADC, which is backed by Saudi sovereign wealth vehicle, the Public Investment Fund, will deliver the project on an early contractor involvement (ECI) basis.
The selected groups include:
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- PowerChina / MBL (China/local)
MEED understands that the ECI timeframe will be around six months.
The ECI process requires selected contractors to submit methodologies for the project and a design proposal. One team will then be selected for the construction.
In November last year, MEED exclusively reported that KSIADC was targeting mid-2026 to award the contract for the construction of Terminal 6 at KSIA in Riyadh.
In July last year, MEED exclusively reported that several contractor consortiums had submitted proposals for a contract to develop the first phase of Terminal 6 and the Iconic Terminal at KSIA.
MEED reported in May last year that US firm Bechtel Corporation had been appointed as the delivery partner for the terminals at KSIA.
According to local media reports, KSIADC’s acting CEO, Marco Mejia, said the project developer had completed the project’s masterplan.
The reports added that Terminal 6 will boost the airport’s capacity by 40 million passengers.
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Project scale
The project covers an area of about 57 square kilometres (sq km), allowing for six parallel runways, and will include the existing terminals at King Khalid International airport. It will also include 12 sq km of airport support facilities, residential and recreational facilities, retail outlets and other logistics real estate.
If the project is completed on time in 2030, it will become the world’s largest operating airport in terms of passenger capacity, according to UK analytics firm GlobalData.
The airport aims to accommodate up to 120 million passengers by 2030 and 185 million by 2050. The goal for cargo is to process 3.5 million tonnes a year by 2050.
Saudi Arabia plans to invest $100bn in its aviation sector. Riyadh’s Saudi Aviation Strategy, announced by the General Authority of Civil Aviation, aims to triple Saudi Arabia’s annual passenger traffic to 330 million travellers by 2030.
It also aims to increase air cargo traffic to 4.5 million tonnes and raise the country’s total air connections to more than 250 destinations.
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Petrofac cuts staff in Libya and puts oil project on hold
2 March 2026
The financially troubled engineering company Petrofac has cut its staff in Libya and stopped work on a key oil project in the country, according to industry sources.
Between 15 and 20 Libyan members of staff have been released by the company, and work on a project to develop the Erawin oil field has been paused, sources said.
Petrofac secured a contract with Zallaf Libya Oil & Gas Exploration & Production Company to deliver its Erawin field development project phase 1 early production facilities (EPF) in September 2021.
The project’s scope of work encompassed surface equipment, including well pads and flowlines, at the Erawin oil field.
It also included a pipeline to transport crude oil approximately 100 kilometres (km) to the El-Sharara oil field, along with a control room, substation and telecom system located there.
In a statement to MEED, Petrofac said:
“Petrofac has not exited Libya. Our Tripoli office remains operational and we continue to maintain an active presence in the country.
“Regarding the Erawin project, the pipeline infrastructure was completed and has been in operation for more than a year.
“A small number of remaining activities were paused while we continue discussions with the client on the project’s final scope and close‑out arrangements.
“Petrofac has not abandoned the project, nor have we shut down our operations in Libya.”
Commenting on the cut to employee numbers in Libya, the company said:
“Recent workforce adjustments reflect the normal lifecycle of a project.”
The company added: “Libya remains an important market for Petrofac, and we remain committed to supporting the development of the country’s energy sector.
“As discussions with the client are ongoing, we are not in a position to comment further at this time.”
Zallaf Libya Oil & Gas Exploration & Production Company was established in Libya in 2013 and is wholly owned by Libya’s National Oil Corporation.
It awarded the Erawin EPF contract to Petrofac using the engineering, procurement, construction and commissioning (EPCC) contract model.
In a statement in 2021, Petrofac said the contract was valued at over $100m, but did not give a precise figure.
The regional project-tracking service MEED Projects has estimated that the contract was worth $440m.
Petrofac problems
On 27 October last year, Petrofac announced that it had applied to appoint administrators, a move that potentially put thousands of jobs at risk and increased uncertainty for projects worth billions of dollars in the Middle East and North Africa (Mena) region.
At the time, the total value of projects awarded to Petrofac and under construction in the region was $5.83bn, according to information recorded by MEED Projects.
Petrofac also had bids under evaluation for 15 projects in the region worth a total of $19.28bn.
Since then, key parts of the business have been sold off, and many of the company’s staff have been made redundant.
The redundancies included around 180 employees who were issued termination notices in October last year.
In December, the US-based company CB&I announced it had entered into a deal to buy Petrofac’s asset solutions business in the first quarter of 2026.
In January this year, the proposed company voluntary arrangement (CVA) related to the sale of its Asset Solutions business was approved.
Erawin exports
Libya shipped its first cargo of crude from the Erawin oil field in November 2023.
The shipment departed from Libya’s Zawiyah port and consisted of 600,000 barrels of crude.
Australia-based Worley Parsons was appointed as the front-end engineering and design (feed) contractor for the EPF project in 2019.
The Erawin field development project is located about 800km south of Tripoli and 100km southwest of the El-Sharara field.
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