meed-logo

line1 line2 line3
SIGN IN / REGISTER

The way forward for the region’s energy transition

12 December 2022

Published in partnership with

Whichever way one looks at it, the world faces a climate emergency. In its most recent multi-agency report published in September, the World Meteorological Organisation (WMO) warns that there is an almost one in two chance that the annual mean temperature in at least one of the next five years will be 1.5°C higher than the 1850-1900 pre-industrial average. 

This figure is important because it would breach the maximum temperature rise set by countries under the terms of the 2015 Paris Agreement and underlines the lack of progress in reducing harmful emissions. 

“Floods, droughts, heatwaves, extreme storms and wildfires are going from bad to worse, breaking records with alarming frequency,” said UN secretary-general Antonio Guterres in the report.

“Heatwaves in Europe. Colossal floods in Pakistan. Prolonged and severe droughts in China, the Horn of Africa and the United States. There is nothing natural about the new scale of these disasters. They are the price of humanity’s fossil fuel addiction.”

There are multiple ways to reduce global greenhouse gas emissions, with a common thread among them being using technology as a solution. 

Whether by making gas turbines more efficient, producing new low-carbon or carbon-free fuels such as hydrogen, increasing renewable energy output, or ensuring homes, towns and cities are ‘smarter’ in their use of electricity, technological innovation presents a means for countries to lower their carbon outputs. 

All [the reports] stressed we are not on track to keep climate change below 2 degrees, or even keep the 1.5 degree target within reach. More work needs to be done

Mohamed Nasr, Egypt's lead negotiator at Cop27

Scale of the problem

In the series of six articles MEED has published in association with Siemens Energy, we have explored the chief challenges the Middle East and Africa regions are facing in the fight against global warming and some of the opportunities and potential solutions to overcome them.

The first hurdle is recognising the scale of the climate challenge. The Siemens Energy Middle East & Africa Energy Week in June highlighted the disconnect between the perception of progress and reality, even among industry professionals. 

When asked to quantify CO2 reductions in their country today and what they will be in 2030 compared to 2005, Energy Week participants estimated that total emissions had fallen by 23 per cent on average over the past 17 years. Only one-third correctly answered that emissions had not only failed to fall, but had actually risen by 50 per cent over the same period. 

“All [of the reports] stressed that we are not on track to keep climate change below 2 degrees, or even keep the 1.5 degrees target within reach. More work needs to be done,” emphasised Mohamed Nasr, director of the Environment & Sustainable Development Department at Egypt’s Foreign Affairs Ministry and lead negotiator for Egypt at Cop27 during the event.

The harsh reality of the situation has underscored the pressing need for more rapid action among countries in the region. For the wealthier oil-exporting nations of the Middle East, much of the emphasis over the past 18 months has been placed on developing a green hydrogen industry to produce cleaner fuels. This is reflected by the more than 50 new green hydrogen projects announced in the GCC and North Africa over the past 18 months, which have an estimated investment value of more than $150bn. 

On the other hand, the priority for many countries in sub-Saharan Africa is very different as they battle the energy trilemma of extending affordable and reliable electricity provision to their populations. Spending billions of dollars on greenfield hydrogen developments and their associated infrastructure is not an option for many. Instead, the focus has generally been on smaller, off-grid renewable energy capacity to resolve the trilemma.

Working in tandem

Regardless of the approach adopted, the private sector recognises that companies need to work more collaboratively in the drive toward net zero. A case in point is the newly formed Alliance for Industry Decarbonization.

Announced in early September by the International Renewable Energy Agency (IRENA) and Siemens Energy, the alliance has already grown nearly threefold from the original 13 international energy and industrial members. 

The new industry grouping aims to achieve country-specific net-zero goals faster by encouraging action to decarbonise industrial value chains and enhance the understanding of renewables-based solutions and their adoption by industry. 

The alliance met for the first time at Cop27, where its members played a prominent role in discussions and thought leadership. Ultimately governments recognise that without corporates worldwide investing in clean energy projects and technology, there is little hope that targets will be achieved.

The intergovernmental summit ended on 20 November with a historic accord on setting up a fund to help compensate poorer nations for the economic and social destruction caused by climate change. 

But while the agreement, a culmination of some 30 years of negotiations between developed economies and developing nations, was a major step in the right direction, there remains a lot more that needs to be done to avoid an environmental catastrophe, such as setting legally-binding emission reduction targets, for example. 

The good news is that technologies and know-how are increasingly available to solve many of these challenges.

What is now needed is the political will and collaboration among nations and companies to work together to overcome our greatest threat. 

In the words of Siemens Energy president and CEO Christian Bruch: “The energy transition is the biggest investment programme since the dawn of industrialisation. If governments, business and society work together, energy transition is a massive opportunity. There is no excuse for waiting any longer.” 

Related reads:

Click here to visit Siemens Energy 
https://image.digitalinsightresearch.in/uploads/NewsArticle/10426502/main.gif
MEED Editorial

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Firms prepare bids for NWC sewage treatment package 14

    4 September 2026

     

    At least three contractors are preparing to make offers for package 14 of Saudi Arabia’s long-term operations and maintenance (LTOM) sewage treatment programme, according to sources.

    Known as Eastern A Cluster (LTOM14), the package was tendered by the state-owned National Water Company (NWC) in April, with a bid submission deadline of 30 September.

    The contract covers the upgrade of six existing sewage treatment plants (STPs), with a capacity expansion of 30,000 cubic metres a day (cm/d) at the Al-Jarodia STP.

    This will increase total treatment capacity from about 263,000 cm/d to approximately 293,000 cm/d, with an estimated cost of $180m.

    According to sources, the firms preparing to submit bids include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)

    The latest phase follows the formal signing of a $347m contract between NWC and a Saudi-Chinese consortium for Northern Cluster Sewage Treatment Plants Package 10 (LTOM10) on 2 September.

    The same consortium led by United Water (China) is not planning to bid for LTOM14 and is expected to formally sign a contract for LTOM11 in the coming months, a source said.

    In April, MEED exclusively reported that the group had won the contract for package 11, which will have a combined capacity of about 440,000 cm/d.

    It is also understood that Beijing Enterprises, a bidder for North Western B Cluster (LTOM12), is not preparing to bid for package 14.

    In the meantime, the contract for LTOM12 is moving towards award, with bids currently under evaluation.

    The contract covers the construction and upgrade of seven STPs with a combined capacity of about 162,000 cm/d. As previously reported, NWC opened financial bids for the project in April.

    Future phases

    In total, the LTOM programme comprises 19 packages split into two phases. In May 2024, NWC announced it had awarded $2.5bn-worth of contracts in the first phase. Phase two of the programme includes 10 packages covering 117 treatment plants.

    In April, MEED exclusively reported that NWC had held several discussions regarding changes in scope details and potential expansions to upcoming projects. This involved “grouping some upcoming projects”.

    The request for proposals for LTOM13 was subsequently put on hold and it is now understood that this tender has likely been merged with other packages in the programme.

    According to a source, Eastern B Cluster (LTOM15) has also been cancelled and has likely been merged. LTOM15 had comprised two STPs with a total capacity of 152,000 cm/d.

    The next contract to be tendered will be Central Cluster (LTOM16), potentially in November, a source added.

    Under the original scope, LTOM16 covers the construction of 14 STPs with a total capacity of 153,000 cm/d.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19358188/main.jpg
    Mark Dowdall
  • Egyptian contractor wins Abu Dhabi Ramhan Island deal

    4 September 2026

    Egypt-headquartered contractor Rowad Modern Engineering has been awarded the main works contract for the Marina Apartments project on Ramhan Island, Abu Dhabi.

    The contract was awarded by the local firm Eagle Hills, which is led by Mohamed Alabbar, the founder and chairman of Emaar Properties.

    Rowad’s scope includes structural and architectural works, finishing, and mechanical, electrical and plumbing systems.

    The company will also deliver infrastructure works, including utility connections to external networks, testing and commissioning.

    The development comprises two residential towers offering 187 residential units.

    The works will be carried out under the consultancy supervision of local engineering firm Mirage Leisure & Development.

    The latest contract award follows Eagle Hills awarding the local firm Arabian Construction Company (ACC) an estimated AED2.5bn ($680m) construction contract to build about 500 villas at the Ramhan Island development, as reported by MEED previously.

    Located off the coast of Abu Dhabi, the Ramhan Island development spans an area of over 4 million square metres.

    The overall development includes the construction of 1,800 villas, 900 residences, a hotel and retail facilities.

    Mohamed Alabbar launched the Ramhan Island development in May 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19355437/main.jpg
    Yasir Iqbal
  • Dubai sets deadline for Jebel Ali waste-to-energy PPP

    4 September 2026

     

    Register for MEED’s 14-day trial access 

    Dubai Municipality has set a 27 September deadline for developers to submit expressions of interest (EOIs) for its planned Jebel Ali waste-to-energy (WTE) public-private partnership (PPP), according to a source.

    The greenfield facility is planned to treat up to 6,000 tonnes of municipal solid waste a day.

    The municipality is seeking international and local developers to develop, finance and operate the facility. It is planning to prequalify developers later this year before issuing a request for proposals (RFP) in the first quarter of next year, a source said.

    The Jebel Ali facility is intended to support Dubai’s waste-management strategy and its target of reducing reliance on landfill.

    Dubai Municipality is being advised by a team led by Abu Dhabi’s Tribe Infrastructure Group, with UK-headquartered Ashurst and Germany’s Fichtner also involved.

    It was confirmed to MEED that the project is separate from the planned second phase of the Warsan WTE facility, for which Dubai Municipality issued a consultancy tender in February.

    That facility will be located in Warsan 2, next to the Al-Aweer sewage treatment plant. The expansion is expected to increase waste-conversion capacity at the existing Warsan site with an estimated budget of $500m. The consultancy contract has a duration of six years.

    The original Warsan WTE plant, Dubai’s first major WTE public-private partnership (PPP) project, reached full commercial operations in 2024.

    Located in the Warsan area, the AED4bn ($1.1bn) facility treats 1.9 million tonnes of municipal solid waste annually, generating up to 220MW of thermal energy that is fed into the local grid.

    In February 2023, state utility Dubai Electricity & Water Authority (Dewa) and Dubai Waste Management Company signed the power-purchase agreement (PPA) for the project.

    Dubai Waste Management Company, the special-purpose vehicle implementing the scheme, reached financial close in June 2021 for the project.

    The Warsan project was developed under a 35-year PPP concession by a consortium comprising Dubai Holding, Dubai Aluminium, Tech Group and Itochu Corporation. 

    The main contractor was a joint venture of Belgium’s Besix Group and Hitachi Zosen Inova of Switzerland.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19354502/main.jpg
    Mark Dowdall
  • Egypt to invest $4.5bn in refinery upgrades

    4 September 2026

    Egypt is planning to invest $4.5bn in refinery upgrades, according to the country’s Minister of Petroleum and Mineral Resources, Karim Badawi.

    Egyptian refineries are operating at 80% of capacity compared with 66% two years ago, according to Badawi, who wants further increases in utilisation of existing facilities.

    “We aim to invest around $4.5bn to develop existing refineries and build new units to reduce imports and achieve self-sufficiency in refined products,” he said in a statement.

    In May, Egypt said that it had increased its fuel import budget by almost 40% for the 2026-27 fiscal year amid higher global prices driven by the Iran war, which started when the US and Israel launched an attack on Iran on 28 February.

    Brent crude prices are up about a third since the conflict started, trading at more than $90 a barrel for most of this month so far.

    Badawi said a decline in Egypt’s oil and gas production between 2021 and 2024 occurred because foreign companies were reluctant to invest in the country’s energy sector due to unpaid government debts.

    He said: “We have settled all the debt, which reached $6.1bn in June 2024. As a result, hydrocarbon exploration and production activity grew by nearly 20% this year.

    “We are now moving in the right direction to increase oil and gas output gradually.”

    Despite the ongoing push to develop projects in the country’s oil and gas sector, several key projects have seen significant delays in recent years.

    These include a $2bn hydrocracking complex package that forms part of the wider Assiut oil refinery upgrade project.

    Earlier this month, MEED revealed that mechanical completion of the hydrocracking package is now unlikely to be reached until early next year due to complications in the final stages of construction.

    The hydrocracking complex package has experienced extensive delays over several years.

    In April this year, Badawi called for work to accelerate on the Assiut oil refinery upgrade project, saying it is important for reducing the country’s spending on imported refined products.

    At the time, the oil ministry said the project was 88% complete, with trial operations planned by the end of the year.

    Assiut Oil Refining Company (ASORC), a subsidiary of state-owned Egyptian General Petroleum Corporation, is the project operator.

    France’s Technip Energies is the main contractor, performing engineering, procurement and construction work on the Assiut hydrocracking complex under a $2bn contract awarded by ASORC in February 2020.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19353521/main.jpg
    Wil Crisp
  • North Field West platform bidders get extra time

    4 September 2026

     

    QatarEnergy has granted contractors additional time to prepare bids for a key tender for the engineering, procurement, construction and installation (EPCI) of large platforms for the giant North Field gas field in Qatari waters.

    The tender, issued earlier this year, forms part of the wider North Field West (NFW) project, the third and last phase of the state enterprise’s North Field liquefied natural gas (LNG) expansion programme.

    The core scope comprises the EPCI of four production deck modules (PDMs) and associated structures. The new PDMs will increase gas production from North Field reservoirs and provide additional gas feedstock for the NFW LNG development.

    QatarEnergy has set 15 September as the deadline for technical bid submissions, while commercial bids are due on 10 November, according to sources.

    The previous deadlines for submission of technical and commercial bids were 30 August and 25 October, respectively, MEED previously reported.

    The following contractors, among others, are understood to be bidding:

    • China Offshore Oil Engineering Company (China)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • McDermott (US)
    • Saipem (Italy)

    Before issuing the PDM tender, QatarEnergy awarded McDermott a contract for the EPCI of four offshore jackets that will also support gas feedstock supply for the NFW LNG project. The contract is estimated to be worth about $200m, MEED reported in January.

    North Field LNG expansion

    QatarEnergy is advancing the three phases of its estimated $40bn North Field LNG expansion project. EPC works on all three giant projects are progressing.

    QatarEnergy is understood to have committed nearly $30bn to the first two phases – North Field East (NFE) and North Field South (NFS) – which will lift Qatar’s LNG production capacity from 77.5 million tonnes a year (t/y) to 126 million t/y by 2028.

    QatarEnergy awarded the main EPC contracts for NFE in 2021. The project was intended to raise LNG output to 110 million t/y by 2025. The $13bn EPC package – covering the EPCI of four LNG trains, each with a capacity of 8 million t/y – was awarded in February 2021 to a consortium of Japan’s Chiyoda and France’s Technip Energies.

    In May 2023, QatarEnergy awarded the $10bn main EPC contract for NFS to a consortium of Technip Energies and Consolidated Contractors Company (CCC). The contract includes two LNG trains, each with a capacity of 7.8 million t/y.

    Once fully operational, the first two phases are expected to add 48 million t/y of LNG supply to the global market.

    QatarEnergy took the final investment decision on NFW this year, awarding an EPC contract estimated at $8bn to a joint venture comprising Technip Energies, CCC and Gulf Asia Contracting (GAC) in February.

    Chiyoda carried out the front-end engineering and design (feed) work for the NFW LNG project.

    The NFW scope covers the EPC of two LNG trains with a combined capacity of 16 million t/y, as well as associated facilities for gas treatment, natural gas liquids recovery and helium extraction.

    In addition to LNG, NFW is expected to produce about 175,000 barrels of oil equivalent a day of condensate, ethane and LPG.

    With all three phases now under EPC execution – and NFE scheduled for commissioning later this year – QatarEnergy is positioning itself to remain one of the world’s largest LNG suppliers over the long term.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19352006/main.jpg
    Indrajit Sen