GIF Energy Tracker
2023August 24, 2023Saudi Energy Ministry grants first license for LPG cylinder vending machines
Saudi Arabia is making significant strides toward realizing its objectives in the distribution system for dry gas and liquefied petroleum gas for residential and commercial applications, propelled by the Ministry of Energy. The ministry granted the inaugural license within the Kingdom for the vending machine-based sale of LPG cylinders, reported the Saudi Press Agency. This development underscores Saudi Arabia’s commitment to innovation and convenience in its energy distribution efforts.
August 24, 2023Iraq To Import Natural Gas From Turkmenistan
Iraq will begin natural gas imports from Turkmenistan in the near future after the two countries signed a preliminary agreement for gas supplies to help meet the power generation needs of OPEC’s second-largest producer after Saudi Arabia. Iraq imports gas and electricity from Iran but has had trouble paying for those because of the U.S. sanctions on Iran’s energy sector. The U.S., while endorsing the Iraq-Iran energy deals to keep Iraq supplied with power and gas, has been pushing Baghdad to reduce its reliance on Iranian energy imports.
August 23, 2023Saudi Arabia will likely roll over 1 mln bpd cut into October, analysts say
Saudi Arabia will likely roll over a voluntary oil cut of 1 million barrels per day for a third consecutive month into October, five analysts said, amid uncertainty about supplies and as the kingdom targets drawing down global inventories further. OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, agreed on a broad deal in early June to curtail supplies until the end of 2024. Saudi Arabia at the time announced the additional voluntary cut which brought its oil production to a multi-year low of 9 million bpd.
August 23, 2023Masdar to build 500MW of solar capacity in Ethiopia
State-owned UAE renewable energy company Masdar has signed an agreement with Ethiopia to build 500MW of new solar capacity in the country. The agreement was signed by Sheikh Mohammed bin Zayed Al Nahyan, president of the UAE, Sheikh Mansour bin Zayed Al Nahyan, vice-president of the UAE, and Abiy Ahmed Ethiopian prime minister, as part of the UAE leadership’s visit to Ethiopia. The involvement of foreign companies, such as Masdar, could be crucial to this end. A UN report noted that Ethiopia would require US$5.7 billion of investment to reach its 2030 energy goals, so overseas investment could be necessary to meet these targets.
August 22, 2023Saudi Aramco Looks To Expand Downstream Business In China
Saudi Aramco looks to further bolster its downstream presence in the world’s top crude oil importer, China, the oil giant’s Downstream President, Mohammed Al Qahtani, has said. “China is strategically important to our business growth in Asia and worldwide, and we will remain a reliable source of long-term oil supply,” Al Qahtani was quoted as saying by China Daily. Oil product demand in China has seen a robust recovery, the Saudi executive said, reiterating Aramco’s view that China will drive global oil demand growth and is of strategic importance to the world’s largest crude oil exporter, Saudi Arabia.
August 22, 2023Oman’s Nama Power To Launch 1000 MW Solar PV Project By 2029
Nama Power & Water Procurement Company (Nama PWP), the exclusive purchaser of power and water output in Oman, has unveiled plans for a substantial new solar PV-based Independent Power Project (IPP) named ‘Solar PV IPPs 2029’. Scheduled for launch in 2029, this ambitious venture will encompass a combined capacity of 1000 MW, consisting of two IPPs with individual capacities of 500 MW each. The procurement strategy for this project follows a similar approach to recent awards, including the Manah I & II Solar PV IPPs, which secured a total of 500 MW capacity for simultaneous development at a site in the Wilayat of Manah.
August 21, 2023UAE banks financed $51.8bn worth of green projects
Six Emirati banks have supported the green energy initiatives in the UAE by funding projects worth 190 billion dirhams ($51.8 billion) in 2022, according to the UAE Banks Federation. The significant increase in green financing by UBF members aligns with the Central Bank of the UAE’s Sustainable Finance Working Group guidelines and overarching sustainability goals.
August 21, 2023ADNOC Gas awards $3.6bln contract to expand certain infrastructure
ADNOC Gas has awarded a contract worth $3.60 billion, equivalent to AED 13.10 billion, to the joint venture (JV) between National Petroleum Construction Company (NPCC) and Tecnicas Reunidas S.A. to increase the listed firm’s gas processing infrastructure nationwide, according to a press release. The contract, which was announced on 9 August 2023, covers the commissioning of additional gas processing facilities to help with enabling utilized supply to the Ruwais Industrial Complex. More than 70% of the award contract value will benefit the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, which backs domestic economic growth and diversification.
August 21, 2023Oman’s MTCIT unveils massive $350 million Bitcoin mining facility in Salalah Free Zone
The Ministry of Transport, Communications, and Information Technology (MTCIT) in Oman has unveiled a state-of-the-art Bitcoin mining and data hosting facility within the Salalah Free Zone. Valued at approximately $350 million (RO 135 million), the newly established facility marks a significant stride toward positioning Oman as a global data hosting and mining epicenter. This recent development is not the first of its kind. Oman’s dedication to this burgeoning industry becomes even more evident as the government opens a second cryptocurrency mining facility, estimated at $390 million. The combined investment of around $740 million from both the government and private sector could pave the way for Oman to become a thriving hub for data hosting and mining on a global scale.
August 20, 2023Japan announces setting up 7 new projects in Iraq
The Japanese Ambassador to Iraq, Futoshi Matsumoto, announced on Sunday that the Japanese government is setting up seven new projects in Iraq. He indicated that two projects are scheduled to be carried out in 2023, clarifying that the first is the Basra Refinery Upgrading Project and the second is a water desalination project in Muthanna governorate. Matsumoto elaborated that the cost of the project in Muthanna is $300 million, noting that it is a very important project to develop the infrastructure in Iraq.
August 20, 2023Two major Saudi solar projects reach financial close with investment of $2.4bn
Two major solar photovoltaic power projects in Saudi Arabia have achieved financial close with a total investment of $2.37 billion. The projects are being developed by energy company Acwa Power, the Water and Electricity Holding Company, or Badeel – which is owned by the Public Investment Fund – and the Saudi Aramco Power Company. The Al Shuaibah PV 1 and Al Shuaibah PV 2 plants in Makkah province will have a capacity of 600 megawatts and 2.031 gigawatts respectively, and are capable of powering about 450,000 households, the Saudi Press Agency reported on Sunday. The kingdom’s NREP is led and supervised by the Ministry of Energy, and the PIF aims to develop 70 percent of the program’s target capacity by 2030.
August 20, 2023Kuwait’s Shipbuilding Co., KNPC sign $298.8mln contract
Kuwait-based Heavy Engineering Industries & Shipbuilding Company (HEISCO) said Sunday it has signed a contract worth KD 91.7 million (around USD 279.6 million) for a mechanical maintenance service at the Mina Abdullah Refinery (MAB) project with a duration of 63 months. The project’s revenue will be shown in annual financial statements from 2023 to 2028, the company said in a disclosure on the website of the Kuwaiti stock exchange, known as Boursa Kuwait.
August 18, 2023Hungary will receive LNG from Qatar starting in 2027
Hungary can begin to receive shipments of liquefied natural gas (LNG) gas from Qatar in 2027, Hungarian Foreign Minister Peter Szijjarto told a news conference on Friday. Demand for LNG has skyrocketed following Russia’s invasion of Ukraine, giving Qatar and the United States significantly larger roles in supplying gas to Europe, and forcing landlocked countries, such as Hungary, to seek to diversify their energy sources. Qatar, the world’s biggest LNG exporter, has no spare export capacity until 2027, the foreign minister added.
August 17, 2023Iran To Bring 67 New Oil And Gas Projects Online By March
67 new oil and gas projects worth some $15 billion should be operational in Iran by next March, the country’s first vice president, Mohammad Mokhber, has said. Last year, Iran completed $12 billion worth of started but unfinished projects in the oil and gas field, Iran Front News reported. Iran is currently producing some 3.18 million barrels of oil daily but wants to boost this to 3.3 million bpd by the end of the month. By the end of September, oil output could reach 3.5 million bpd, according to the head of the National Iranian Oil Company.
August 17, 2023Qatar Energy raises Oct al-Shaheen oil term price to 4-month high
Qatar Energy raised the price for term cargoes of al-Shaheen crude oil loading in October to a four-month high as demand for Middle Eastern oil increased after Saudi Arabia prolonged its voluntary supply cut. The October price was set at $2.10 a barrel above Dubai quotes, up 42 cents from September’s $1.68 a barrel and reaching the highest since June.
August 16, 2023Hydrogen Market Poised to Reach $410.6 billion by 2030 Globally, at a CAGR of 7.8%
Hydrogen Market size is expected to reach USD 410.6 billion by 2030, at a CAGR of 7.8% during the forecasted period, as per the recent study by MarketsandMarkets™ A.global push to reduce carbon emissions and combat climate change has led to an increased focus on clean and sustainable energy sources and drive the demand for Hydrogen Market. This report segments the Hydrogen Market based on application into three segments: energy, mobility, and chemical & refinery. The mobility segment is expected to be the fastest growing during the forecast period.
August 16, 2023Abu Dhabi’s ADNOC Gas signs 5-yr LNG supply deal with Japex
Abu Dhabi’s ADNOC Gas said on Thursday it has signed a five-year deal to supply liquefied natural gas (LNG) to Japan Petroleum Exploration Co (Japex). The deal is valued at between $450 million to $550 million, ADNOC Gas said, without providing LNG volumes or timing for the shipments to start. The deal follows Japanese Prime Minister Fumio Kishida’s visit to the UAE and other Gulf states in July, which focused on securing energy supplies for Japan, which remains highly dependent on oil and gas imports.
August 16, 2023Iraq receives 5th batch of $1.4 billion loan from Japan to upgrade Basra Refinery
The Japanese Ambassador to Iraq, Futoshi Matsumoto, and the Iraqi Minister of Finance, Taif Sami, together with the Japan International Cooperation Agency (JICA), signed and exchanged notes concerning the provision of the fifth batch of the Official Development Assistance (ODA) loan worth $1.4 billion for the Basra Refinery Upgrading Project, the biggest Japanese project in Iraq. The project will also contribute to modernizing Iraq’s energy industry and paving a way to attract the private sector to Iraq’s energy sector, in addition to reducing air pollution by reducing sulfur content in oil products, according to the statement.
August 15, 2023Saudi-based Energy Capital Group announces first close of $150 mln fund
Saudi Arabia-based investment company Energy Capital Group (ECG) has announced the first close of its $150 million fund that targets the creation of national leaders in energy and energy-related technologies. The Fund was anchored by the Jada Fund of Funds. The successful fundraising effort is a validation of ECG’s strategy that aims to create and develop industrial services and technology-oriented National Champions across the energy sector in line with Saudi Arabia’s Vision 2030 and Aramco’s IKTVA program.
August 15, 2023Bahrain signs deals to set up 72-megawatt solar park as part of net zero push
Bahrain has signed agreements to set up a solar park project with a capacity of 72 megawatts as the kingdom looks to achieve net-zero emissions by 2060. The project is part of Bahrain’s renewable energy plan, which aims to increase the share of clean energy in the country’s electricity mix to 5 percent by 2025, and 20 percent by 2035, the Bahrain News Agency reported on Tuesday. Investment in clean energy is set to reach $1.7 trillion this year, outpacing spending on fossil fuels, as countries look to address potential energy shortages, according to the International Energy Agency.
August 14, 2023Iran Inaugurates 10MW Solar Power Plant In Semnan Province
Iran launched a new solar power plant in Semnan Province on August 11, 2023. The plant, which is located in the city of Damghan, has a capacity of 10 megawatts and is expected to generate enough electricity to power around 10,000 homes. The new solar power plant is the latest in a series of renewable energy projects that Iran has launched in recent years. In 2022, Iran inaugurated a 100-megawatt wind farm in the Khuzestan Province. In 2021, Iran signed a deal with France to build a 1 gigawatt solar power plant in the Kerman Province. Iran’s efforts to increase its reliance on renewable energy are part of a broader effort to reduce its carbon emissions.
August 13, 2023World’s first liquefied hydrogen carrier to arrive in Oman on August 14
The world’s first liquefied hydrogen carrier, Suiso Frontier, will moor at the Sultan Qaboos Port in Muscat on August 14. The ship’s main mission is to introduce Japanese technology that will pave the way for nations to use hydrogen (clean energy), seek cooperation to transport large quantities of hydrogen, and establish global supply chains on a large-scale, fully commercial using it as a preferred carrier. The major milestone in the US$355 million Hydrogen Energy Supply Chain (HESC) project is the first in the world to extract, liquefy, and transport LH2 by sea to an international market.
August 11, 2023UN completes removal of oil from decaying tanker off Yemen
The United Nations has successfully removed over 1 million barrels of oil from the decaying Safer supertanker off Yemen’s Red Sea coast, preventing a potential environmental catastrophe. The tanker, inactive due to the Yemen conflict since 2015, posed a threat of oil spillage four times worse than the Exxon Valdez disaster. The UN raised over $120 million for the operation, employing a second tanker, standby aircraft with chemicals, and involving multiple insurers.
August 11, 2023CNPC’s Daqing unit awarded $194mln drilling contract in Iraq
China National Petroleum Corp’s drilling subsidiary, CNPC Daqing Drilling Engineering Co, has secured a $194 million contract to drill wells with two rigs in Iraq’s Rumaila oilfield. It’s the largest overseas contract for the subsidiary in five years. The move is in line with Iraq’s plan to boost oil production capacity to 7 million barrels per day by 2027.
August 11, 2023Green Hydrogen Market to Surpass USD 385 Billion by 2030
The global Green Hydrogen Market reached $156 billion in 2022 and is predicted to grow to $385 billion by 2030, with a projected CAGR of 11.98% from 2023 to 2030. Green hydrogen, produced through renewable-powered electrolysis, is gaining prominence in the clean energy transition due to its sustainability and potential to mitigate climate change.
August 10, 2023Saudi Arabia to power green hydrogen project with 2.2 GW of solar
China’s Sungrow will supply inverter technology for a 2.2 GW solar plant in Oxagon, which will be the Middle East’s largest PV array. The solar plant will power a green hydrogen facility and employ a modular inverter solution with energy storage and high protection capability. The project is backed by NGHC, a joint venture between ACWA Power, Air Products, and Neom. The green hydrogen plant aims to produce up to 600 tonnes of carbon-free hydrogen daily using renewable energy sources by the end of 2026.
August 9, 2023Iran Plans To Boost Oil Output To 3.5 Million Bpd Before October
Iran’s National Iranian Oil Company (NIOC) plans to increase oil production by 250,000 barrels per day (bpd), aiming for a total output of 3.5 million bpd by the end of next month. Since President Ebrahim Raisi’s inauguration in August 2021, Iranian oil production has risen from 2.2 million bpd to 3.1 million bpd in July 2023, marking the highest level in nearly five years. This growth follows a history of fluctuation due to factors like sanctions, with the last time Iran produced 3.5 million bpd estimated to be in October 2018.
August 9, 2023Saudi Arabia’s SFD Supports Belize’s Solar Energy Plant Project With $77 Million Loan
The Saudi Fund for Development (SFD) CEO, H.E. Sultan Al-Marshad, signed a $77 million loan agreement with Belize’s Prime Minister, Hon. John Briceño, to fund a 60 MW solar energy plant project. The project aims to reduce emissions, create jobs, enhance energy reliability, and contribute to Belize’s sustainable development. The initiative aligns with UN Sustainable Development Goals and underscores SFD’s commitment to environmental projects and international cooperation while strengthening SFD’s presence in the Caribbean and Central America.
August 8, 2023Plans for Durra gas field going ahead
Aramco’s CEO, Amin Nasser, recently confirmed that the Durra gas field joint project with Kuwait is progressing as planned, emphasizing no issues in engineering and development. This comes after Iran expressed willingness for technical and legal dialogue to resolve the Durra field matter, located in the neutral zone shared by Saudi Arabia, Kuwait, and Iran. Both Saudi Arabia and Kuwait assert joint ownership of the field and call on Iran to negotiate the eastern border of the submerged area, adhering to international law and good neighborliness.
August 7, 2023UAE to establish blockchain-powered national carbon credit system
The UAE has entered an initial agreement with blockchain company Venom Foundation and the UAE-based Industrial Innovation Group (IIG) to establish a national carbon credit system using blockchain technology. The partnership aligns with the UAE’s ambitious carbon emission reduction goals as blockchain technology ensures secure and transparent carbon credit transactions, allowing the UAE’s Ministry of Climate Change and Environment to issue and trade credits with businesses to offset emissions.
August 7, 2023UAE Ministry of Climate Change signs pact to develop national system for carbon credits
The UAE’s Ministry of Climate Change and Environment has partnered with the UAE-based Industrial Innovation Group (IIG) and Venom Foundation to establish a national carbon credits system using blockchain. This agreement, aligned with the UAE’s stricter emission reduction goals and climate neutrality target, focuses on transparently managing carbon credits via blockchain, particularly in the gas sector. The partnership aims to enhance sustainability and biodiversity, with the potential to boost the UAE’s carbon market. The move aligns with a growing trend in the region, emphasizing green economy and emissions reduction initiatives.
August 7, 2023Saudi Arabia to ramp up oil investments in China as it competes with Russia
Despite a 38% drop in Q2 profit due to lower oil prices and production cuts, Saudi Aramco will continue investing in China, its primary oil customer. The company plans to expand its presence in China, focusing on both crude and chemical growth. Saudi Arabia has heavily invested in Chinese refineries, recently acquiring a 10% stake in Rongsheng Petrochemical. Aramco’s commitment to China comes as it faces competition from Russia for Asian market share, as Russian oil sales to China have surged, challenging Saudi Arabia’s position.
August 6, 2023Qatar reports $10.4 billion contract awards amid massive gas expansion
In Q2 2023, Qatar’s contract awards surged to $10.4 billion, 8.3 times higher than the same period in 2022. The gas sector dominated, accounting for 97% of awards, with a remarkable 16-fold increase to $10 billion in which QatarEnergy awarded a $10 billion EPC contract for the North Field South megaproject. The GCC region’s project awards hit $49.7 billion, a five-year high, led by Saudi Arabia, UAE, and Qatar. MEED Projects predicts 2023 GCC contracts to exceed $110 billion, with substantial growth in Saudi Arabia, Qatar, and the UAE.
August 5, 2023Pakistan shelves multi-billion dollar gas pipeline project with Iran under pressure from US Report
Pakistan has reportedly put its multi-billion dollar gas pipeline project with Iran on hold due to pressure from the US sanctions on Iran’s nuclear program. Originally conceived as an India-Pakistan-Iran pipeline, India left the project, making it bilateral between Pakistan and Iran. The project, aimed at importing cheap energy, is now suspended under “Force Majeure and Excusing Event” terms due to external factors outside Pakistan’s control. This pause comes as Pakistan seeks financial stability from the IMF.
August 4, 2023OPEC+ panel keeps policy unchanged against backdrop of stronger oil market
OPEC+’s ministerial panel kept the group’s current oil output policy unchanged after a Saudi decision to extend its voluntary production cut into September boosted oil prices. The committee highlighted its intent to closely assess market conditions and urged members to maintain full compliance with output cut pledges. Oil prices surged more than 14% in July due to tighter supply and growing demand. Saudi Arabia extended its voluntary 1 million barrels per day output cut into September, which was matched by Russia cutting oil exports by 300,000 bpd.
August 4, 2023US considers deploying troops to commercial vessels in Gulf amid Iran tensions
The US is contemplating deploying troops to commercial vessels in the Persian Gulf as a response to Iran’s seizure of tankers in the area. This move is being considered amid stalled talks to revive the 2015 nuclear deal. The potential deployment of an additional 2,500 marines follows an increased US military presence in the Gulf, including F-35 fighter jets and a marine expeditionary force. The plan, not yet finalized, would need consultation with Gulf allies and vessel owners. Iran’s recent tanker seizures have prompted concerns, with the US facing pressure to enhance security in the region.
August 3, 2023ADNOC to acquire 30% equity stake in Absheron gas field
Abu Dhabi National Oil Company (ADNOC), State Oil Company of Azerbaijan (SOCAR), and TotalEnergies announced ADNOC’s acquisition of a 30% stake in the Absheron gas field. ADNOC’s move into the Caspian region enhances its international gas presence and UAE-Azerbaijan energy partnership. ADNOC will hold 30%, while SOCAR and TotalEnergies keep 35% each. This partnership facilitates ADNOC’s entry into European and Central Asian gas markets and supports lower-carbon energy goals.
August 2, 2023Saudi Arabia, Kuwait reaffirm rights to natural resources in Durra gas field
Saudi Arabia and Kuwait have reiterated their joint ownership of natural resource rights in the Gulf’s Durra gas field. Both countries are also urging Iran to engage in negotiations regarding the demarcation of the eastern border of the Gulf’s maritime “Divided Area.”
July 31, 2023Iran Boosts Oil Output To 3.1 Million Bpd
Iran’s oil production has reached its highest level in nearly five years at 3.1 million barrels per day (bpd), a significant increase from the 2.2 million bpd when President Ebrahim Raisi assumed office in August 2021. This surge in output has been primarily driven by stronger exports to China, Venezuela, and Syria. Despite U.S. sanctions, Iran has continued to export oil, with private Chinese refiners increasing their purchases of Iranian crude due to competition for Russian oil. Iran’s second-quarter crude and condensate exports averaged 1.35 million bpd, the highest since the 2018 sanctions.
July 31, 2023UAE state energy company brings forward net zero target to 2045
The UAE’s Adnoc has advanced its emissions reduction goal to achieve net zero emissions from its operations by 2045, ahead of the COP28 climate talks in which its CEO will play a key role. Adnoc’s ambitious target also includes eliminating methane emissions by 2030. However, the commitment only addresses Scope 1 and 2 emissions, not the more significant Scope 3 emissions from fuel combustion. Adnoc plans to achieve its goals by using renewable energy and carbon capture, pledging $15 billion for decarbonization initiatives between 2023 and 2027.
July 30, 2023Kuwait Petroleum Corporation posts net profit of $8.5 billion in last fiscal year
Kuwait Petroleum Corporation (KPC) and its subsidiaries reported a net profit exceeding 2.6 billion Kuwaiti dinars ($8.48 billion) for the last fiscal year, the highest in a decade. KPC’s CEO, Nawaf Saud al-Sabah, announced the achievement, revealing that the company had also increased its oil production capacity by 200,000 barrels per day (bpd) to reach 2.8 million bpd in the same period.
July 29, 2023Saudi Arabia’s sovereign wealth fund eyes investments worth $5bln in Oman
Saudi Arabia’s Public Investment Fund (PIF) has signed a Memorandum of Understanding (MoU) with the Oman Investment Authority (OIA) for investments totaling $5 billion in Oman. The MoU aims to enhance cooperation and investment between the entities, focusing on Oman’s growing economy. The agreement includes the establishment of the Saudi Omani Investment Company (SOIC), a PIF-wholly owned company, to invest up to $5 billion in various promising sectors in Oman. The partnership aligns with both nations’ economic visions and aims to enhance economic integration and development in the region.
July 29, 2023NPCC lands $219mln Adnoc Offshore EPC project contract
The National Petroleum Construction Company (NPCC) has secured a contract worth AED 805 million ($219 million) from Adnoc Offshore. NPCC will provide engineering, procurement, and construction (EPC) services for Adnoc’s pipeline replacement project, expected to be completed in 32 months. The scope involves replacing 125 km of the 20′ main oil line from Umm Lulu to Zirku Island as part of Adnoc’s efforts to enhance its oil and gas pipeline infrastructure in Abu Dhabi.
July 28, 2023Saudi Arabia expected to extend voluntary oil cut for September
Saudi Arabia is likely to extend its voluntary 1 million barrels per day oil output cut for another month, through September, to support the oil market. OPEC+ agreed to limit oil supply through 2024, with Saudi Arabia implementing additional cuts. Analysts suggest a phased reduction of the cut over several months. Oil prices, around $84 per barrel, have been supported by supply tightening and China’s economic stimulus. The Saudi Energy Ministry did not comment. OPEC+ has been restraining supply since late 2022.
July 28, 2023Saudi Arabia invests USD 10 billion to build Pakistan’s largest oil refinery
Four Pakistani state-owned petroleum companies – OGDCL, PSO, PPL, and GHPL – have signed a MoU with Saudi Arabia to construct Pakistan’s largest oil refinery, investing $10 billion in Gwadar Port. The refinery will have a 300,000 barrels per day capacity. The move aims to facilitate Saudi investment in Pakistan, with the state-owned enterprises participating through equity.
July 28, 2023Qatar Ordering Over $9B of LNG Carriers from Three South Korean Companies
South Korean shipbuilders, including Hyundai Heavy Industries, Hanwha Ocean Company, and Samsung Heavy Industries, are finalizing a $9.4 billion contract to construct 40 liquid natural gas (LNG) carriers for Qatar. The deal, to be signed between September and October, allocates 16 orders to Samsung, 14 to Hanwha, and 10 to HD Hyundai. Each vessel is estimated at $250 million, and negotiations are underway for construction details. This marks the second LNG carrier agreement between South Korean firms and Qatar, with a previous deal in 2021 encompassing 54 orders.
July 25, 2023Iraq reveals details of $27 billion deal with TotalEnergies
Iraq signed a $27 billion deal with TotalEnergies in an effort to enhance its crude oil production. Part of the deal signed includes investing in a seawater desalination facility to produce 5 million bpd. TotalEnergies will also construct a solar power plant that has the capacity to produce 1,000 MW.
July 25, 2023Saudi Oil Revenue Drops to Lowest Since 2021 as Prices Falter
Oil revenue in Saudi Arabia in May 2023 hit its lowest point since September 2021. The amount of revenue dropped at a rate of roughly 37.7% each year. This sharp decline in oil revenue is due to production cuts led by OPEC+.
July 25, 2023Kuwait’s KNPC posts record-breaking $3.3 billion profit
Kuwait National Petroleum Co (KNPC) has hit a record-high profit valued at $3.31 billion for 2022-23. The company’s profit for this year was 198% higher than the previous cycle. This sharp increase in profit is largely linked to the rise in oil prices and the construction of the refineries in Mina Al Abdullah and Mina Al Ahmadi ports.
July 24, 2023Heisco lands $300mln Kuwait refinery maintenance deal
Heisco signed a $300 million contract with KNPC to provide maintenance services at the Mina Abdullah Refinery for a 5-year period. These include oil and gas, petrochemicals, power, pressure equipment manufacturing, shipbuilding and repair, dredging and marine construction, civil construction and maintenance as well as other industrial services including Heavy Industry projects.
July 23, 2023UAE says current OPEC+ actions sufficient for now
UAE Energy Minister, Suhail al-Mazrouei, stated to Reuters that, “what we are doing is sufficient as we say today,” referring to the recent oil production cuts implemented by OPEC+. The next OPEC+ meeting is scheduled for November 2023.
July 22, 2023COP28 and IEA convene first high-level dialogue on building a 1.5°C-aligned energy transition
A series of high-level dialogues took place on the sidelines of the 14th Clean Energy Ministerial between the COP28 UAE Presidency and the International Energy Agency (IEA) regarding creating a 1.5°C-aligned energy transition. The United Nations Framework Convention on Climate Change (UNFCCC) backed the initiative.
July 22, 2023Saudi Arabia intends to continue to be a leader in producing, exporting clean hydrogen: Energy minister
Saudi Energy Minister, Prince Abdul Aziz bin Salman, stated the Kingdom is committed to becoming a world-leading producer and exporter of clean hydrogen. Riyadh is scheduled to host the Middle East and North Africa Climate Week (MENACW) 2023.
July 21, 2023Russia, Saudi oppose G20 proposal to triple green energy capacity
Saudi Arabia, Russia, and China rejected a proposal to triple G20 nations’ green energy production by 2030. The proposal was put forward by the G7 countries.
July 21, 2023Saudi Aramco Buys $3.4 Billion Stake In Chinese Petrochemical Firm
Saudi ARAMCO invested a 10% stake in Rongsheng Petrochemical Co Ltd, a Chinese petrochemical firm, for a value of $3.4 billion.
July 20, 2023Oman fund invests in Italian lithium-free energy storage
Oman’s sovereign wealth fund announced its investment in Energy Dome, an Italian renewable energy storage firm. The firm’s estimated total funds is valued at roughly $78.65 million. It signed an MoU with the Omani sovereign wealth fund to look into investment opportunities in the Sultanate.
July 20, 2023Oman Electricity Transmission Company Inaugurates Saih Al-Khairat Station In Dhofar Governorate
The Oman Electricity Transmission Company (OETC) announced the completion of the Saih Al-Khairat Station in Dhofar Governorate. The completed project falls under Oman’s vision to reach carbon neutrality by 2050 as the station is projected to cut carbon emissions by roughly 114,000 tons annually.
July 19, 2023Iran Initiates 1,000 MW Solar Park In Qazvin
Mahmoud Kamani, Deputy Minister of Energy and head of Iran’s Renewable Energy and Energy Efficiency Organisation (SATBA) has stated that Iran is set to construct a new 1,000-MW solar array in Qazvin as its first “Solar Park.” The initiative aims to double renewable energy production once fully operational. The country aims to be part of the global “green transition” and is investing in solar energy and electric vehicles. Plans for constructing solar power plants in other cities, generating electricity for SATBA, green industrial electricity exchange, or cryptocurrency mining were also unveiled.
July 18, 2023UAE and Japan sign 23 new MoUs
The UAE-Japan Business Forum concluded with the two sides signing 23 MoUs to enhance economic ties and investments across various sectors, including investment, trade, artificial intelligence, energy, renewables, and advanced technology. The UAE is Japan’s second-largest trading partner in the region when it comes to imports and exports. There are currently 10,000 Japanese companies operating in the UAE with an estimated investment value of $14 billion.
July 18, 2023Abu Dhabi’s Masdar set to raise $750 mln with green bonds
Masdar, an Abu Dhabi renewable energy company, is planning to raise $750 million from its first green bond issuance, receiving over $4.2 billion in demand. The bonds were launched at a spread of 115 basis points over U.S. Treasuries, lower than the initial guidance of 150 bps. Gulf issuers are increasingly turning to green bonds and sustainability-linked debt to enhance their environmental credentials.
July 18, 2023Qatar energy minister says natural gas needed for ‘realistic’ energy transition
Qatar’s energy minister stated that natural gas is critical for global efforts to transition toward clean energy sources. He included that Qatar Energy will provide 40% of the world’s LNG by 2029. Qatar also aims to cut greenhouse gas emissions by roughly 30%.
July 18, 2023Oman Oil Marketing Company to add 14 new stations in Saudi Arabia
Oman Oil Marketing Company plans to add 14 stations in Saudi Arabia, making its total number of stations in the Kingdom reach 26. The plan was announced after Oman Oil Marketing Company signed a memorandum of cooperation with Excellence Fuel Company, a Saudi real estate investment and development firm.
July 17, 2023Saudi Arabia’s Crude Oil Exports Slumped Below 7 Million Bpd In May
Saudi Arabia’s crude oil production witnessed a sharp drop of 7 million bpd during the month of May. This decline is part of OPEC+ efforts to cut oil production.
July 17, 2023Indian Oil signs long term LNG import deals with ADNOC LNG, TotalEnergies
Indian Oil Corp signed LNG import deals with ADNOC LNG and TotalEnergies. The deals were announced during Indian Prime Minister Modi’s most recent visits to the UAE and France. Under the deal, ADNOC LNG will supply Indian Oil Corp with 1.2 million metric tonnes per year (tpy) of LNG for 14 years. TotalEnergies to supply the Indian company with 0.8 million metric tonnes per year (tpy) of LNG for 10 years.
July 17, 2023Iraq sets up new unit to oversee $17bln EU road, rail project
Iraq announced the creation of a designated unit to oversee the development of the ‘Route of Development’ project that aims to connect Europe with the Gulf states. The project is estimated to cost $17 billion. The project will be 1,200 km long, extending from the country’s northern borders with Turkey to the Gulf region.
July 15, 2023ACWA Power consortium commits $2.2bn for Al-Shuaibah solar projects
Saudi Arabia to build the world’s largest solar project with ACWA Power at an estimated cost of $2.2 billion. The project is part of the Kingdom’s 2030 Vision to rely on more sustainable energy sources. Saudi Arabia aims to make renewable energy accountable for 50% of the nation’s power-generating capacity by 2030.
July 15, 2023Iran to soon start power exchange with Russia: energy minister
Iran’s Energy Minister, Ali-Akbar Mehrabian, announced that the country will soon commence electricity exchange with Russia through Azerbaijan. Iran has been considering two routes, one via Azerbaijan and the other through Armenia and Georgia, for this exchange, and negotiations for the projects’ initiation are in their final stages.
July 14, 2023Iraq-Iran gas-for-oil barter would likely violate US sanctions
U.S. officials stated the Iranian and Iraqi government’s intention to implement an Iranian gas for Iraqi oil barter is most likely to violate U.S. imposed sanctions on Iran. The U.S., however, could issue a waiver to allow the barter to take place.
July 13, 2023UAE targets 50% electric vehicles on roads by 2050
The UAE minister of energy and infrastructure, Suhail bin Mohammed Al Mazrouei, announced that his country aims to have 50% of all vehicles on the road be electric by 2050. Al Mazrouei included that this serves the UAE’s initiative of reducing energy consumption by 40% by 2050.
July 13, 2023Dubai-based AMEA Power secures $75mln from Japan’s SoftBank
Japanese entity SoftBank will become the first external investor in AMEA Power, which was previously funded by AlNowais Investments. AMEA Power, established in 2016, has already completed projects in Africa, the Middle East, and emerging markets, with a generating capacity of 1.45 GW. The UAE firm plans to expand into new markets in the Middle East, CIS, and Southeast Asia. The investment will help accelerate their strategic ambitions and develop projects in the power, water, and green hydrogen sectors.
July 12, 2023Saudi Arabia imports record Russian fuel oil in June as trade grows
Amid the European Union’s ban on Russian products, Saudi Arabia has increased fuel oil imports from Russia. The kingdom’s imports reached 2.86 million metric tons in the first half of 2023, surpassing the total imports of 1.63 million metric tons for the entire 2022. The majority of the high-sulfur fuel oil cargoes end up in Saudi oil-fired power plants. The move comes as Saudi Arabia extends its output cut by an extra 1 million barrels per day in August, aligning with the OPEC+ agreement. The country is expected to boost fuel oil exports in July to capitalize on higher margins.
July 12, 2023OPEC oil export revenues surpass $870 billion, highest in decade
In 2022, the OPEC countries experienced a significant increase in crude export revenues, reaching the highest level in almost a decade, with $873.57 billion, attributed to the Russia-Ukraine war and production boosts by key alliance members. Despite a surge in oil prices post-conflict, prices stabilized and remained relatively low due to an uncertain economic outlook and slow post-pandemic recovery, leading to reduced demand. OPEC believes the industry requires $12.1 trillion in investments until 2045, while the International Energy Agency predicts declining fossil fuel demand after 2026 due to the rise of electric vehicles and biofuels.
First LNG-powered container ship reaches Saudi East Coast
July 12, 202340% of all new LNG will come from Qatar by 2029, energy minister says
Qatar’s energy minister stated that his country will supply 40% of all new LNG production by 2029. The country’s LNG expansion efforts will increase production by 64% by 2027. QatarEnergy aims to reduce greenhouse gas emissions by 25% by 2030.
July 11, 2023Oman’s oil exports reach 128mln barrels by May end
Oman’s oil exports totaled 128,070,300 barrels by the end of May. China was the biggest importer of Omani oil, at 117,120,500 barrels, followed by Japan (4,783,500 barrels) and India (2,716,200). Gas production has also witnessed a noticeable increase, with a total of 21,833.1mn until the end of May, a 3.9% increase from the previous year.
July 11, 2023Iraq and TotalEnergies sign deal for $27bn worth of energy projects
TotalEnergies and Iraq signed a $27 billion contract for the purpose of enhancing oil production. Iraq will own 30% of the project, Total Energies will own 45%, while QatarEnergy will have 25% ownership. There is an initial $10 billion dollar investment that will be dedicated to the Gas Growth Integrated Project and the creation of a seawater treatment plant.
July 10, 2023Iran launching $1.43bn petrochemical plant in Gachsaran
Iran is set to inaugurate a major petrochemical plant, Gachsaran Petrochemicals, which relies on over 80% domestically produced equipment. The project, costing €1.3 billion, will increase Iran’s ethylene production by 1 million metric tons per year. The plant will be supplied with 1.25 million metric tons per day of ethane gas through a pipeline from Bidboland Gas Refinery. The launch of the plant will create 1,000 direct jobs and 3,000 jobs in the supply chain. Despite US sanctions, Iran has focused on utilizing domestic resources to expand its oil and gas sector.
July 10, 2023Kuwait, Saudi to expedite ‘neutral zone’ oil projects
Kuwait and Saudi Arabia reached an agreement to speed up the process of finishing up their joint oil projects in the ‘neutral zone’. The Kuwaiti-Suadi join permanent committee is set to monitor the progress on this agreement. The neutral zone includes the onshore Wafra and the offshore Khafji oil fields.
July 10, 2023Qatar to supply UAE’s ENOC with 120 mil barrels of condensate over 10 years starting in July
QatarEnergy signed a contract to provide ENOC with 120 million barrels of condensate over a 10-year period. When the North Field East and the North Field South LNG expansion project are complete, QatarEnergy will increase its condensate supply to ENOC. Qatar will become the top LNG exporter once the project is complete.
July 9, 2023Toyota Tsusho JV to build $100mln solar plant in Saudi Arabia
Toyota Tsusho Corporation, in a joint venture with TotalEnergies Renewables and Zahid Group, has secured a contract for a 119MW solar power plant in Saudi Arabia. The $100 million project will be implemented by Noor Alwadi Renewable Energy Company. The plant, located in Wadi Ad Dawasir, is the first renewable project for Toyota Tsusho in Saudi Arabia. Construction has already started, and the plant is expected to be operational by March 2025. The project has been selected for Japan’s Financing Programme for Joint Crediting Mechanism (JCM) Model Projects, aiming to reduce GHG emissions and promote renewable energy.
July 7, 2023World’s largest waste-to-energy plant comes into service in UAE
The first phase of Dubai’s Waste-to-Energy Centre, the world’s largest and most efficient facility, comes into service on Tuesday. The center includes an investment of AED 4 billion (around $1.09 billion), covering an area of 400,000 square meters. With the opening of its second phase in 2024, the facility’s output is set to expand to 220 MWh annually.
July 7, 2023Saudi Arabia and Kuwait urge Iran to engage in talks to de-escalate the Al-Durra gas field row
The Saudi Ministry of Foreign Affairs and Kuwait’s Oil Minister has emphasized their prospective countries’ exclusive joint ownership of the Al-Durra gas field. The two sides condemned Iran’s planned drilling activities in the field and urged it to demarcate the eastern border of the submerged area that is shared between Saudi Arabia and Kuwait.
July 6, 2023Saudi Arabia hikes most August oil prices to Asia after supply cuts
Saudi Arabia raised the prices for most of its crude oil to Asian customers in August for a second month after its announcement of prolonging an extra output cut on top of a broader OPEC+ deal. Saudi Aramco hiked the official selling prices (OSP) for August-loading Arab Light to Asia by 20 cents a barrel from July to $3.20 a barrel, the state oil giant said in a statement. Saudi Arabia on Monday announced it would draw out its 1 million barrels-per-day voluntary cut to oil production to August and left the door open to extending the trim further. The more expensive Saudi oil could lead Asian refiners to seek alternatives from other suppliers, impacting refining margins in the region.
July 6, 2023OPEC on hunt for new members, secretary-general says
OPEC Secretary General expressed the organization’s desire to increase the number of its members. The Secretary-General did give out any information regarding what countries will potentially join OPEC.
July 6, 2023UAE Energy Minister announces no further voluntary OPEC+ oil production cuts
The UAE has announced that it won’t implement additional voluntary oil production cuts under the OPEC+ agreement, stating that its current efforts are enough. The country’s Energy Minister highlighted the significant gap between its current oil output and full production capacity and expressed the belief that recent cuts by Saudi Arabia and Russia will stabilize the global oil market. The impact of the UAE’s decision on OPEC+ efforts and the stance of other member countries will be closely watched.
July 6, 2023Kuwait to invest more than $300 billion in energy sector by 2040, oil minister says
Kuwait will invest more than $300 billion in the energy sector by 2040, Kuwait’s oil minister Saad Al Barrak told UAE’s state news agency (WAM) on Thursday.
July 5, 2023China’s Trina Solar provides 800MW of solar modules for Al Dhafra solar power project in Abu Dhabi
Trina Solar stated that it had delivered 800 megawatts (MW) of 210mm Vertex modules to China Machinery Engineering Corporation (CMEC) for the Al Dhafra PV power plant project in Abu Dhabi. The plant, which includes almost 3.5 million solar panels, is set to become one of the largest single-site solar power plants worldwide. The plant was connected to the grid in April 2023.
July 5, 2023UAE’s Masdar tipped for big stake in $1.5bn offshore wind farm that will help power Amazon
UAE renewables group Masdar is set to take a major 49% stake in Iberdrola’s Baltic Eagle offshore wind project in German waters. The 476MW project, valued at about $1.5bn, is expected to be a critical project for the Abu Dhabi-based Masdar, as they set their sights on becoming one of the world’s most ambitious renewables players with a target to amass a 100GW gross portfolio by 2030. If confirmed, Masdar would become the latest partner for Iberdrola as the Spanish group pursues its massive global green power expansion plans.
July 5, 2023Aramco And TotalEnergies Award Contracts For $11M Amiral Project
Saudi Aramco and TotalEnergies have awarded Engineering, Procurement, and Construction (EPC) contracts for the $11 billion “Amiral” complex, a petrochemical facility expansion at the SATORP refinery in Saudi Arabia. The project will include a large mixed-load steam cracker and is expected to attract additional investments in various sectors, creating around 7,000 jobs. The signing ceremony was attended by officials from Saudi Arabia, France, and South Korea, as well as company executives. The project signifies the continued strong partnership between Aramco and TotalEnergies in the Kingdom of Saudi Arabia.
July 4, 2023Sheikh Hamdan launches Dh4 billion renewable energy plant in Dubai
Sheikh Hamdan bin Mohammed, the Crown Prince of Dubai, has launched a Dh4 billion ($1.09 billion) renewable energy plant in Dubai, which is set to be the world’s largest and most efficient waste-to-energy center. The plant in Warsan has the capacity to generate 220 megawatt-hours of renewable energy, powering 135,000 homes while also processing 2 million tonnes of waste annually without causing harm to the environment. The project aims to reinforce Dubai’s position as a global leader in sustainable infrastructure and is scheduled for completion next year.
July 4, 2023Adnoc Closes In on 4.5 Million b/d Output Capacity
ADNOC hit the 4.5 million b/d benchmark of oil production, more than half of which is attributable to offshore fields. This is part of the UAE’s effort to reach 5 million b/d capacity by 2027. The increased capacity cements the United Arab Emirates (UAE) position as the third largest Opec producer after Saudi Arabia and Iraq and will give it increased influence in future quota discussions within the Opec-plus alliance.
July 3, 2023ADNOC Gas awards natural gas pipeline contracts worth $1.34bn
ADNOC Gas has awarded contracts worth $1.34 billion to Petrofac Emirates and a consortium led by the National Petroleum Construction Company and C.A.T International for the expansion of its natural gas pipeline network in the UAE. The pipeline extension will enable the transportation of higher volumes of natural gas to customers in the Northern Emirates. ADNOC Gas aims to achieve gas self-sufficiency, increase its market share, and provide sustainable and cleaner gas to more locations in the UAE. Over 70% of the contracts’ value is expected to contribute to the UAE economy through ADNOC Group’s In-Country Value (ICV) program.
July 3, 2023UAE Cabinet approves national energy and hydrogen strategies
The UAE revealed the country’s National Energy Strategy for the purpose of tripling renewable energy usage within the next 7 years. The country also announced its National Hydrogen Strategy for the purpose of enhancing the production and exports of low-emission hydrogen in the next 8 years.
July 2, 2023Oman’s Galfar bags $75mln contract from OQ
OQ Exploration & Production Company has awarded Galfar Engineering and Contracting Company an engineering, procurement, and construction (EPC) contract worth roughly USD 75 million. Galfar estimates the value of this call-off contract to be approximately USD 727 mn for an execution period of seven years. The contract also includes an additional three-year extension option worth USD 311 mn. After securing several contracts in the oil and gas sectors earlier this year, Galfar continued to maintain a significant project pipeline of USD 1.25 billion, supported by new project awards worth USD 24 mn in the first quarter of 2023.
June 30, 2023Saudi ACWA Power unveils $100mln RCF agreement from UAE-based Chinese bank
ACWA Power has signed a $100 million revolving credit facility (RCF) agreement with China Construction Bank (DIFC Branch). The three-year financing will support ACWA Power’s plans to enhance its power and water generation portfolio across the Middle East and Belt & Road Initiative countries. The deal strengthens the collaboration between ACWA Power and Chinese entities while diversifying the Saudi firm’s financing sources. It also aligns with the Belt and Road initiative’s focus on promoting renewable energy projects. ACWA Power has been working with China Construction Bank since 2016 on various projects.
June 30, 2023ACWA Power and Huawei to Enhance Renewable Energy Projects in Saudi Arabia
ACWA Power and Huawei signed a joint initiative for the purpose of cutting down the cost of renewable energy projects. ACWA is also partnering with Huawei Digital and SEPCOIII to build a battery-based energy storage system that will have a capacity of 1,300MWH for the Red Sea Project. The initiative, part of China’s $40 bln investment in renewable energy abroad, will help Saudi in its 2030 vision goals.
June 30, 2023UAE set to add 571MW biomass capacity in waste-to-energy push, says BMI
The UAE is expected to develop its waste-to-energy (WtE) sector, driven by the government’s goal to reduce landfill waste. The country currently has six out of eight WtE projects in the region, with a total capacity of 571 MW. The Sharjah Waste to Energy plant, for example, has successfully generated electricity and reduced landfill emissions. Research firm BMI has increased its forecast for biomass capacity in the Middle East and North Africa (MENA) region, with the UAE leading the expansion with large WtE projects.
June 28, 2023Iraq launches projects to boost efficiency of gas-powered energy generation units
Iraqi Prime Minister Mohammed Al-Sudani and Iraqi Minister of Electricity Ziyad Ali Fadel revealed the state’s plan to enhance gas-powered electricity generation. The establishment of the 8 power plants in the first phase of the project required 40 cooling units to be installed across Iraq. These cooling systems generated an additional 364 megawatts of electricity for the national electricity grid. Phase 2 of the project will add 7 more power plants and 32 systems.
June 27, 2023Kuwait’s Q8, MAIRE Launches Hydrogen Refueling Station in Rome
Q8, MAIRE opened Hydrogen Refueling Station in Rome. The project is being carried out by the Sustainable Technology Solutions business unit. The project will reduce carbon emissions by over 75 percent compared to the use of diesel.
June 27, 2023Galfar wins $75mln EPC contract for Oman oilfield project
Oman’s Gelfar secured a $75 million contract from OQ for the Bisat oilfield project. Gelfar will provide construction and engineering services for the Bisat project. Oman’s global integrated energy firm OQ said the Bisat field, which is located at Abu Tubul, utilizes cutting-edge technologies and digital solutions to enhance the long-term sustainability of the resources and operations and maximize the revenues and return on investment.
June 26, 2023OQ, Belgian Group Seal Green Hydrogen Production Contract
OQ and Belgian signed a green hydrogen contract with Hydrom. Phase 1 of this deal is aimed to produce 330,000 tonnes of green ammonia, and phase 2 to produce roughly 650,000 tonnes in total. This deal is part of Oman’s Vision 2040.
June 26, 2023Iran’s crude output up by 350k barrels per day in 2023
Iran’s oil output increased to 350 barrels per day since the start of this year. This is despite US-led sanctions. IEA reported that Iran’s crude oil has the potential of reaching 900 barrels per day if sanctions were to be lifted.
June 25, 2023South Korea trumpets Hyundai E&C $5 billion contract with Aramco
Hyundai Engineering & Construction signed a $5 billion contract with Saudi Aramco for the purpose of establishing a petrochemicals complex. South Korea’s Land Minister stated that such deal will strengthen energy cooperation between the two nations.
June 25, 2023Electrical transmission line connecting Afar in Saudi Arabia to Yusufiya in Iraq inaugurated
An electrical interconnection project, linking the GCC states with Iraq, will be built. The project will help supply Iraq with its increasing electricity demands by having an initial capacity of 1,000 megawatts. It aims to start providing Iraq with electricity by the end of 2024.
June 25, 2023ACWA Power secures $100m credit facility from Chinese bank to scale up operations
Saudi ACWA secured a $100 million credit facility from China Construction Bank to increase its operations. The three-year agreement will boost power generation and water distillation in the Middle East, Uzbekistan, and Kazakhstan
June 25, 2023Aramco, TotalEnergies sign $11 billion contract to build petrochemicals complex in Saudi Arabia
Aramco and TotalEnergies have signed an $11 billion contract to start building a new petrochemicals complex in Saudi Arabia, the two companies said in a joint statement on Saturday. “Aramco and TotalEnergies today awarded Engineering, Procurement, and Construction (EPC) contracts for the $11 billion “Amiral” complex, a future world-scale petrochemicals facility expansion at the SATORP refinery in the Kingdom of Saudi Arabia,” the statement read.
June 23, 2023Qatar Awards China 4mn t/y LNG Contract & NFE Stake
QatarEnergy has signed a series of deals with Chinese state energy giant CNPC affording it a slice of its giant North Field expansion development and a long-term supply deal. This is the second such deal QatarEnergy has reached with a Chinese state major, following April’s deal with Sinopec for an identical 5% NFE train stake
June 23, 2023Oman Signs Two More Green Hydrogen Projects
State-owned company, Hydrom, signed two additional green hydrogen projects. This comes weeks after signing 500,000 t/y worth of green hydrogen projects. Oman’s Minister of Energy and Minerals, Salim Al-Aufi, pointed out that, “The fast-paced efforts behind the announcements of these new projects reflect Oman’s commitment to reinforce its leading position in the global green hydrogen sector in line with its energy transformation”.
June 23, 2023Saudi Arabia: Shell signs deal to operate gas stations in the Kingdom
Saudi Energy Ministry announced that Shell International will open its first gas station in the Kingdom in the fourth quarter of this year. The deal is part of the Kingdom’s large effort to attract international companies to the country.
June 22, 2023Shell signs deal to operate gas stations in Saudi Arabia
Shell International and Saudi Arabia’s Asyad Holding Group have signed an agreement to construct the kingdom’s first Shell-branded fuel station. This development aligns with the objectives of Saudi Arabia’s Vision 2030 and the efforts of the executive committee of service centers and gas stations to enhance facilities by partnering with leading global companies. The agreement also supports supply security in the sector, maximizes added value, and addresses economic challenges.
June 21, 2023Brazil And UAE Sign MoU For Cooperation In Renewable Energy
Minister Alexandre Silveira signed a memorandum of understanding for cooperation in the field of renewable energy between the Ministry of Mines and Energy and the Ministry of Energy and Infrastructure of the United Arab Emirates. The main focus of the meeting was on promoting renewable energy generation, exploring new investments in Brazil, and addressing climate change. Silveira highlighted the Decarbonization of the Amazon project and expressed interest in UAE’s involvement, including at the upcoming United Nations Climate Change Conference in 2023. The memorandum signed between the two countries affirms their commitment to collaborating in renewable energy, hydrogen, energy conversion, decarbonization technologies, and biofuels, and sharing regulatory information and experiences.
June 20, 2023QatarEnergy, China’s National Petroleum Corp to sign 27-year LNG deal
According to Reuters, QatarEnergy will sign a 27-year deal to supply China’s National Petroleum Corp with 4 million tons of liquefied natural gas (LNG) per year. CNPC will also take a 5% equity stake in one LNG train of QatarEnergy’s north field gas expansion, sources reported to Reuters.
June 20, 2023ACWA Power signs deal with Chinese firm for Uzbekistan solar project
ACWA Power, based in Saudi Arabia, has partnered with Energy China Group Corp. to develop a solar power project in Uzbekistan. The companies signed an engineering, procurement, and construction contract. Additionally, ACWA Power signed a hydrogen purchase deal with Uzkimyosanoat, a state-owned chemical company, to promote green hydrogen projects in Uzbekistan. The collaboration strengthens ACWA Power’s ties with Chinese companies, which were established through memorandums of understanding signed during a summit and the state visit of Chinese President Xi Jinping to Saudi Arabia in 2022.
June 20, 2023China, Saudi Arabia Team on Wind Projects in Uzbekistan
Envision Energy, China’s second-largest wind turbine manufacturer, has announced that it will supply 1 GW of generation capacity for wind projects developed by ACWA Power in Uzbekistan. This deal follows Envision’s recent wind turbine agreements in Egypt, India, and Saudi Arabia. Uzbekistan aims to install 5 GW of onshore wind by 2030, and ACWA Power has a $10 billion investment cooperation agreement with Uzbekistan’s Ministry of Energy for renewable energy, green hydrogen, and gas-to-power projects over the next five years.
June 20, 2023Abu Dhabi’s ADNOC in almost $11 billion approach for Covestro
Abu Dhabi National Oil Company (ADNOC) has reportedly approached German plastics and chemicals manufacturer Covestro AG with a takeover offer worth over 10 billion euros ($10.9 billion). The move comes ADNOC Chief Executive Sultan al-Jaber leads the company’s push into new energy, low carbon fuels, such as ammonia and hydrogen, as well as liquefied natural gas and chemicals, in line with Abu Dhabi’s diversification plans. ADNOC has been actively expanding its presence in Europe, including its recent acquisition of a stake in Austrian oil and gas group OMV.
June 20, 2023Kuwait awards multi-million contract for gas plant
Kuwait Oil Tanker Co (KOTC) has awarded a solar energy contract worth $6.35 million to Kuwait’s Life Energy Co. The contract is for the design, construction, operation, and maintenance of an electric power generation station using renewable energy (6.8MWp) in the Um AlAish and Shuaiba gas factories. The project aims to utilize solar energy in liquefied gas-filling plants. The duration of the contract is approximately six years.
June 19, 2023Kuwait Oil Company to invest $43 billion on new oil projects, CEO says
Kuwait Oil Co (KOC) plans to invest approximately $43 billion in new oil projects over the next five years, according to CEO Ahmed Jaber al-Aydan. The investment aims to expand production by nearly 200,000 barrels per day (bpd). Currently, Kuwait’s crude oil production capacity is around 2.8 million bpd and is expected to reach 3 million bpd after 2025. Al-Aydan stated that the capacity could further increase to about 4 million bpd by 2035, and KOC intends to maintain that level until 2040. The strategy includes drilling new wells, increasing their output, and developing oilfield facilities with a budget of approximately KWD 13 billion.
June 19, 2023Petrobangla to sign 10-year LNG supply deal with Oman Trading International
Bangladesh’s state-owned company Petrobangla is preparing to sign a long-term supply agreement with Oman Trading International for additional liquefied natural gas (LNG) stocks. Starting from January 2026, Bangladesh will receive an extra 0.5 to 1.5 million metric tons per year of LNG, with the possibility of 0.25 million tons in late 2025. This marks Petrobangla’s second contract with Oman Trading International, with the existing 10-year contract for 1 million metric tons per year. Bangladesh heavily relies on imported LNG for power generation due to limited domestic gas reserves and coal-fired capacity.
June 19, 2023Saudi crude exports hit five-month low in April
In April, Saudi Arabia’s crude oil exports reached a five-month low, dropping to 7.316 million barrels per day (bpd) compared to 7. 523 million bpd in March. The country’s crude output remained steady at 10.46 million bpd, while inventories increased by 1.98 million barrels to 149.4 million barrels. Domestic refineries processed slightly less crude, but exports of refined products rose. In an effort to further limit supply, Saudi Arabia plans to make a deep cut to its output in July and raise the prices of its Arab Light crude to Asian buyers. Some observers suggest that higher oil prices are necessary due to increasing inflation.
June 17, 2023Oil demand to peak by 2028 as energy transition gathers pace
The International Energy Agency (IEA) predicts that global oil demand growth will slow down in the coming years, with a peak in demand expected this decade. The IEA’s medium-term market report forecasts a 6% increase in global oil demand between 2022 and 2028, reaching 105.7 million barrels per day. However, annual demand growth is projected to shrink from 2.4 million barrels per day in 2023 to just 0.4 million barrels per day in 2028. The shift towards clean energy, including electric vehicles and energy efficiency, is driving this trend. The report highlights the need for oil producers to adapt their investment decisions for an orderly transition. The use of oil for transport fuels is expected to decline after 2026 due to the expansion of electric vehicles and improved fuel economy.
June 17, 2023Russian oil refined in India sold to Pakistan through UAE
The first shipment of Russian oil arrived in Karachi after being refined in an Indian refinery. The oil was transported through the UAE to address concerns in Pakistan. Russia’s approach aims to safeguard India’s relationship and strengthen its negotiating position with the IMF by offering discounted oil to Pakistan. The discounted oil enables Pakistan to negotiate with the IMF from a stronger standpoint and retain subsidies on pump prices, avoiding potential cost increases. Russia also seeks to maintain positive relations with India and leverage the oil deal in IMF negotiations.
June 17, 2023Iraq invites foreign bids for 11 gas blocks in new areas
Iraq has announced its plans to invite foreign companies to bid for contracts to explore and develop natural gas reserves in 11 new blocks. The country aims to produce more natural gas for its power stations and reduce its reliance on imports from Iran, which have been a burden on its budget and a strain on Baghdad’s relationship with Washington. Eight blocks are located in Anbar province, one in Mosul, and two along province borders. The bidding round is the sixth of its kind, although the specific date for the bidding process has not been set yet. Iraq, the second-largest producer in OPEC, currently flares much of its own gas due to a lack of processing facilities.
June 17, 2023Kuwait’s oil production capacity to reach 3 mln bpd in 2025 – official
Kuwait’s oil production capacity is above 2.8 million barrels per day (bpd) now and will reach 3 million in 2025, the CEO of Kuwait oil company Ahmed Jaber al-Aydan said on Sunday. Kuwait is committed to the cuts decided by OPEC and OPEC +, al-Aydan added.
June 15, 2023Kuwait Oil Company awards $60 million contract to HEISCO
Kuwait Oil Company (KOC) has awarded a $59.8 million contract to Heavy Engineering Industries & Shipbuilding Co. (HEISCO), the latter announced in a statement. The scope of work is related to water facilities upgradation at KOC’s project locations, HEISCO noted. This year, Kuwaiti EPC contractor HEISCO has secured several multi-million contracts in the Middle East region, including a contract from ARAMCO for the Juaymah NGL Fractionation Plant (JNGLF,) and a five-year contract from KOC for the construction of flowlines and associated works in West Kuwait Area.
June 15, 2023Oil futures up 3% on strong China refinery data, weaker US dollar
On Thursday, oil prices gained about 3% to a one-week high on a weaker U.S. dollar, and a jump in refinery runs in top crude importer China. Brent crude futures rose $2.47, or 3.4%, to settle at $75.67 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.35, or 3.4%, to settle at $70.62. Those were the highest closes for Brent and WTI since June 8. Data on Thursday also showed China’s oil refinery throughput rose 15.4% in May from a year earlier, hitting its second-highest total on record. Chinese oil demand is expected to keep climbing at an assured rate during the second half of the year, said Kuwait Petroleum Corp’s chief executive.
June 15, 2023The IEA Believes Oman Could Become A World Leader In Hydrogen
Oman could become one of the world’s biggest hydrogen suppliers, the International Energy Agency has forecast in a recent report. The Gulf sultanate currently generates some 60% of its export earnings from oil and gas but has set itself ambitious net-zero targets that would involve leveraging its low-carbon energy potential, which the IEA notes is significant. Oman plans to be producing 1 million tons of so-called green hydrogen by 2030, further expanding that to 3.75 million tons annually five years later and to 8.5 million tons annually by 2050.
June 14, 2023Oman’s first hydrogen blocks awarded to consortium
EnerTech Holding Company, one of the founding partners of the Green Energy Oman (GEO) international consortium, has been awarded one of Oman’s first hydrogen blocks by Hydrom. The GEO consortium, consisting of EnerTech, Oman’s integrated Energy Company OQ, Shell Oman, InterContinental Energy (ICE), and Golden Wellspring Wealth for Trading (GWWT), secured Block Z1-04, located in the Dhofar Governorate. The block is set to produce 150,000 metric tonnes per annum of green hydrogen by leveraging 4 gigawatts of renewable energy. This deal is one of three signed agreements granting the first green hydrogen blocks in the Sultanate of Oman, with a combined investment value exceeding $20 billion. The projects are expected to deliver over 750,000 tonnes of green hydrogen per year, further propelling Oman’s ambitious target of achieving one million tonnes per year of green hydrogen production by 2030.
June 13, 2023Oman on track to become the largest green hydrogen exporter in the Middle East – IEA
Oman will be the largest hydrogen exporter in the Middle East and the sixth largest globally by 2030, per a new report released by the International Energy Agency (IEA). Oman aims to produce at least 1 million tonnes of renewable hydrogen a year by 2030, up to 3.75 million tonnes by 2040 – and up to 8.5 million tonnes by 2050, which would be greater than the total hydrogen demand in Europe today. The 2040 hydrogen target would represent 80 percent of Oman’s current LNG exports in energy-equivalent terms while achieving the 2050 target would almost double them. According to the report, scaling up renewable hydrogen production in Oman to 1 million tonnes by 2030 would require a cumulative investment of around $33 billion and an additional $4 billion to bring renewables’ share of the national electricity mix to 20 percent.
June 12, 2023Saudi Arabia signs $5.6b deal with Chinese EV firm Human Horizons
Saudi Arabia announced on Sunday billions of dollars in investment deals between China and the Arab world on the first day of the China-Arab business conference in Riyadh. The meeting came amid growing commercial and diplomatic ties between Beijing and Middle Eastern countries, including a recent landmark Chinese-brokered rapprochement between powerhouses Iran and Saudi Arabia that has shifted regional relations. This figure includes a $5.6bn memorandum of understanding between the Saudi investment ministry and Human Horizons, a Chinese maker of electric and self-driving cars.
June 12, 2023Aramco’s Namaat program to launch companies worth $25bn
A cloud storage company, an iron sheet manufacturer, and a logistics management center are among the firms being established by Saudi Arabian Oil Co.’s Industrial Investments Program, Namaat. The initiative, launched by the oil giant in 2021, is helping to launch 31 local and international companies with an estimated total value of SR92 billion ($24.53 billion), it has been announced. The latest developments come a year on from Namaat, revealing it had reached 55 investments, and in 2021 it announced it had signed 22 memorandums of understanding to drive forward the initiative.
June 12, 2023Iraq needs 10,000 MW to tackle power gap
Iraq needs to execute new projects that will generate nearly 10,000 megawatts (MW) of electricity to tackle a power shortage that worsened because of internal hostilities, an Iraqi official reported on Monday. OPEC’s second-largest oil producer currently generates around 20,000 MW of electricity from existing power plants. In comparison, actual domestic demand stands at nearly 30,000 MW, said Mudhar Saleh, financial and economic adviser to the Prime Minister. Madhar said he believes Iraq could become self-sufficient in electricity generation through new conventional and renewable energy projects as well as by supplies from common power grids with neighboring Iran and the six-nation GCC.
June 12, 2023UAE’s Masdar signs roadmap for up to 1GW Wind Power Project in Kazakhstan
Masdar has signed a roadmap for developing up to 1 gigawatt (GW) wind power plant in Kazakhstan to support the country’s goal of achieving half its energy mix from renewables by 2050. The Central Asian nation is a key strategic market for Masdar, the UAE’s flagship renewable energy company, which has been steadily investing in the region in recent years. The roadmap for developing the up to 1 GW wind project with a battery energy storage system (BEES) was signed by four partners on the sidelines of the Astana International Forum. Kazakhstan aims to become carbon neutral by 2060 and targets renewable electricity generation of 50 percent by 2050. The up to 1 GW wind farm, with BESS, is Masdar’s first project in the country.
June 11, 2023Saudi Arabia keen to work with China in gas, crude-to-chemicals, mining
Saudi Arabia is eager to collaborate with China in developing natural gas, crude-to-chemicals, and mining projects, within and outside the kingdom, because the world’s second-biggest economy is taking the lead in various sectors, energy minister Prince Abdulaziz bin Salman said June 11. In April, Saudi Arabia was the top oil supplier to China, delivering 2.07 million b/d (8.46 million mt) of crude, down 5.3% year on year and down 1.8% from March on a barrels-per-day basis, data from China’s General Administration of Customs showed May 20. Aramco previously signed several agreements, including potential crude supply and chemical offtake agreements, with Chinese entities in December during the visit of President Xi Jinping to Riyadh.
June 11, 2023US expected to begin unloading oil from seized Iranian tanker
The US is expected to begin unloading oil from a seized Iranian vessel, currently anchored off the coast of Texas, threatening to escalate a shadow tanker war with Tehran. The US Department of Justice seized the Suez Rajan under a court order with cooperation from at least one company involved with the vessel. The case of the Suez Rajan is one of several recent maritime incidents involving the US and Iran and threatens to increase tensions between the countries as Washington and its European allies have renewed discussions on how to engage Iran in its nuclear activity.
June 9, 2023GCCIA and Iraq embark on a major 500 MW grid interconnection project
The Gulf Cooperation Council Interconnection Authority (GCCIA) has embarked on the implementation of a new super grid project, connecting the GCC with the southern region of Iraq, according to a press statement. The interconnection project, slated for completion by late 2024, marks the first-ever expansion beyond the electrical grid system of the GCC countries. The project will satisfy a significant portion of the electric power demand in southern Iraq, supplying 500 megawatts (MW). Boasting a transmission capacity of 1,800 megawatts (MW) and spanning an impressive length of 295 kilometers, this transmission line is set to redefine the region’s power infrastructure.
June 9, 2023Saudi foreign minister: wants U.S. to bid in domestic nuclear program
On Thursday, Saudi Arabia’s foreign minister said that the kingdom would prefer to have the U.S. as one of the bidders for its civilian nuclear program. Prince Faisal bin Farhan commented in a joint press conference with U.S. Secretary of State Antony Blinken
June 9, 2023UAE Clean Energy Firm Masdar Plans First Green Bond Sale in June
The United Arab Emirates’ clean energy producer Masdar aims to sell its first-ever green bonds within weeks to help fund an effort to boost renewable energy generation capacity five-fold by the decade’s end. Securities linked to clean energy are attracting more capital as companies and nations look to cut emissions to fight global warming by diversifying supplies away from hydrocarbons. The UAE was the first Persian Gulf oil state to declare a net zero target for carbon emissions by 2030, even though OPEC’s third-biggest producer still invests billions to boost oil and natural gas output.
June 8, 2023Iran builds two new reactors at Bushehr nuclear plant
According to the provincial governor, Anadolu Agency reports that Iran is building two new reactors at the Bushehr nuclear power plant on the country’s southwestern coast. Bushehr Governor, Ahmad Mohammadizadeh, said the new reactors would each have a capacity of 1,800 megawatts and are being built by young Iranian engineers without foreign assistance or expertise. Bushehr nuclear power plant, the only functional reactor in Iran with a capacity of 1,000 megawatts, was built by Russian engineers and handed over to Iran’s atomic energy agency in September 2013. These developments come amid a standoff over the 2015 nuclear deal, with indirect talks between Tehran and Washington aimed at the revival of the accord stalled since last August.
June 8, 2023Egypt, UAE firm sign 10-bln-USD deal to build wind power plant
An agreement to build a wind power plant in Upper Egypt’s Sohag province was signed on Tuesday between Egypt’s Ministry of Electricity and Masdar, a renewable energy developer based in the United Arab Emirates (UAE). Egypt’s $10-billion wind energy project announced last year moved one step closer to its execution after the consortium responsible for the renewable project signed a deal on June 6 to secure the required land. The agreement will help Egypt achieve its annual goal of slashing carbon emissions by 9 percent in conjunction with onshore wind farms, producing 47,790 GWh of clean energy annually while displacing 23.8 million tons of carbon dioxide.
June 8, 2023EnerTech, GEO Consortium award Oman’s first hydrogen blocks
EnerTech, a Kuwaiti state-owned company specializing in clean energy investment and development, has been awarded one of Oman’s first hydrogen blocks by Hydrom. The block is set to produce 150,000 metric tons per annum of green hydrogen by leveraging 4 gigawatts of renewable energy. This deal is one of three signed agreements granting the first green hydrogen blocks in the Sultanate of Oman, with a combined investment value exceeding $20 billion. The projects are expected to deliver over 750,000 tonnes of green hydrogen per year, further propelling Oman’s ambitious target of achieving 1 million annual tons of green hydrogen production by 2030.
June 8, 2023Kremlin: Russia’s Putin, Saudi crown prince praise OPEC+ cooperation
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman praised, during a telephone discussion on Wednesday, their cooperation within the context of the OPEC+ oil producers’ group, the Kremlin said on Wednesday. The statement noted the importance of agreements reached at the group’s meeting this week, under which Saudi Arabia will make a deep cut to its output in July on top of a broader OPEC+ deal to limit supply into 2024.
June 8, 2023EU, COP28 host UAE pledge to rally support for renewable goals
The European Commission and the United Arab Emirates pledged on Wednesday to seek support for global goals to expand renewable energy, which they said would help countries shift from unabated fossil fuels. The EU and COP28 host UAE will also work together on establishing a fund to address the irreparable damage climate change is causing in vulnerable countries, they said. Countries agreed last year to launch that fund but have yet to negotiate how it will work and where the money will come from.
June 7, 2023Kuwait’s HEISCO wins $133.33mln contract in Saudi Arabia for Aramco
Saudi Arabia – Heavy Engineering Industries and Shipbuilding Company (HEISCO), listed on Boursa Kuwait, announced that its branch in Saudi Arabia received a letter of award from the main contractor of a project in Ras Tanura City in the Kingdom. According to a bourse disclosure, HEISCO’s branch will execute the main civil and mechanical construction works for 28 months in favor of the Saudi Arabian Oil Company (Aramco). The contract value stands at SAR 500 million which is equivalent to approximately KWD 41 million, while the project is installing C3/C4 Refrigeration units and storage tanks.
June 7, 2023GE Gas Power announces major boost to Iraq’s power generation capacity
GE Gas Power has announced a significant boost to Iraq’s power generation capacity achieved in partnership with the country’s Ministry of Electricity. The company has successfully serviced and upgraded 1400 megawatts (MW) of gas turbine capacity across the country in the first half of this year. The strategic move aims to enhance power generation capabilities and optimize the efficiency and performance of the units just in time for the peak summer demand. Two gas turbines, with a combined capacity of 200 MW, underwent comprehensive maintenance work, including major overhauls, at the Khor Al-Zubair power plant.
June 6, 2023Total set to launch 1,000 MW power project in Iraq
France’s TotalEnergies is pushing ahead with plans to build a 1,000-megawatt solar power project in Iraq after the project was endorsed by Baghdad last week, according to a statement by the Iraqi Electricity Ministry. Electricity Minister Ziad Fadil gave the green light for the project in the Southern port of Basra during talks with a TotalEnergies delegation in Baghdad on Monday, it said. The solar park project is part of a $27 billion framework agreement signed by Iraq and France in Sept 2021.
June 6, 2023Qatar Offers Looser LNG Contract Terms to Entice Asian Buyers
Qatar is offering shorter and cheaper liquefied natural gas contracts as it attempts to secure customers for supply from expansion projects amid rising competition with the US. A deal agreed last week between the world’s top LNG exporter and Bangladesh included more lenient payment deadlines than typically offered, according to people with knowledge of the matter. The supplier aims to be more accommodating of customers’ needs, particularly emerging nations in Asia that struggle with high energy costs or are unable to commit to long-term agreements.
June 5, 2023UAE to cut 144,000 bpd throughout 2024
The United Arab Emirates will extend its voluntary cut of 144 thousand barrels per day until the end of December 2024, as a precautionary measure, in coordination with the countries participating in the OPEC+ agreement, which had previously announced voluntary cuts in April. This voluntary cut will be from the required production level, as agreed upon at the thirty-fifth ministerial meeting of OPEC+ on June 4, 2023.
June 4, 2023Saudi Arabia cuts oil output by 1 million barrels per day to boost sagging prices
Saudi Arabia said Sunday that it would reduce how much oil it sends to the global economy, taking a unilateral step to support the sagging cost of crude after two earlier production cuts by members of the OPEC+ alliance of major oil-producing countries failed to push prices higher. The announcement of the Saudi cuts of 1 million barrels per day, which will start in July, followed a meeting of the alliance at OPEC headquarters in Vienna. The rest of the OPEC+ producers agreed to extend earlier cuts in supply through the end of 2024. The International Monetary Fund estimates the kingdom needs $80.90 per barrel to meet its envisioned spending commitments, which include a planned $500 billion futuristic desert city project called Neom.
June 3, 2023Kuwait Oil Company set to award $250 million wind energy project
According to media reports, Kuwait Oil Company (KOC) is set to finalise the main construction contract for a pilot wind farm to generate electricity for the oil sector by Q3 2023. A source quoted by Zawya said that the bid submission is ongoing, and the Engineering, Procurement, and Construction (EPC) contract is expected to be awarded in early September 2023. Through this initiative, KOC aims to explore the use case for wind energy to power oilfield operations in the Ratqa oilfield. The pilot project will feature wind turbines up to a height of over 50 meters with a generation capacity of 3.4-3.6 MW.
June 2, 2023Saudi Arabia To Expand Its Lithium Processing Industry
Saudi Arabia is planning a second lithium processing plant as it seeks to capture a piece of the energy transition pie. The plant will be a joint venture between Saudi industrial major Obeikan Investment Group and Australian startup European Lithium, the Financial Times has reported, with initial production expected in 2026. The lithium produced at the new facility will be supplied to Germany’s BMW under an existing agreement. Earlier this year, Saudi Arabia signed a deal with Australian EV Metals—a battery tech developer partly owned by Riyadh—to construct a lithium hydroxide plant. Saudi Arabia is also the biggest investor in Lucid Motors—a luxury EV maker—and has planned for local EV production in the near future.
June 2, 2023Aramco taps Turkish firms for $50 billion building spree
Saudi Aramco met with an army of Turkish contractors this week to discuss $50 billion of potential projects in the Gulf kingdom, underlining improving trade ties between the two countries after they buried a diplomatic spat over the killing of Jamal Khashoggi. Representatives of the state-controlled oil firm met executives from about 80 building companies in workshops in the Turkish capital Ankara on Tuesday and Wednesday and are seeking to pre-qualify them for projects planned through 2025, Erdal Eren, head of the Turkish Contractors Association, said in a phone interview.
June 1, 2023India snaps up record amount Russian oil while flows from Saudi Arabia plunge to 28-month low
Russia, which surpassed Saudi Arabia as India’s top oil supplier in October last year, sold 1.96 million barrels of crude daily to India during May, according to Vortexa data cited by Bloomberg. That’s around 15% higher than the 1.67 million barrels a day sold to India in April. Saudi Arabian oil shipments, meanwhile, fell to their lowest level since February 2021, marking a 28-month low. That’s primarily due to ever-steeper discounts on Russian crude, which has fueled Russian oil purchases by allies like China and India. According to data from India’s Ministry of Commerce, the average cost of Russian crude shipments was $68.21 a barrel in April, marking the lowest price tag on Russia’s crude since the nation first invaded Ukraine.
June 1, 2023Oman’s Hydrom signs 3 deals to develop green hydrogen projects with investments of over $20 billion
Oman’s Hydrom has signed three deals to develop green hydrogen projects involving investments of over $20 billion, Oman’s state news agency reported on Thursday. The projects are a collaboration with BP Oman, Amnah Consortium, and Oman Green Energy Alliances. The International Energy Agency (IEA) said earlier this month that Oman, a country whose economy has traditionally depended on hydrocarbons, has a net zero target by 2050 as it looks to significantly increase its domestic hydrogen production from renewable electricity.
May 31, 2023Adnoc signs new agreements with more than 60 companies
Adnoc announced on Wednesday, at the Make it in the Emirates Forum in Abu Dhabi, new agreements with more than 60 UAE-based and international companies to locally manufacture critical non-oil products in its supply chain. The new agreements bring Adnoc closer to its target to locally manufacture Dhs70 billion ($19 billion) worth of products in its procurement pipeline. They are estimated to contribute 10 percent of the Dhs172 billion ($46.9 billion) target in the Abu Dhabi Industrial Strategy, which will double the size of Abu Dhabi’s manufacturing sector.
May 31, 2023U.N. Launches Operation to Remove Oil from Decaying Tanker Off Yemen’s Coast
In Yemen, the United Nations has begun an operation to salvage over 1 million barrels of oil from a decaying tanker anchored in the Red Sea. It comes after years of delay and mounting warnings of a potentially catastrophic oil spill off the Yemeni coastline after maintenance on the Safer tanker was suspended in 2015 due to the U.S.-backed, Saudi-led war in Yemen.
May 31, 2023Iraq allocates $417 million for new marine pipeline
The Basra Oil Company (BOC) announced on Monday that strategic projects for infrastructure, production, and export will be carried out. In a step to boost oil exports, the Iraqi government allocated about $417 million to build a third offshore oil export pipeline. The state-owned BOC signed a contract with Royal Boskalis, a Dutch dredging company providing services related to the construction and maintenance of maritime infrastructure internationally, to build a pipeline with a capacity of two million barrels per day.
May 31, 2023Bahrain launches operations at $1bln Al Dur 2 utility plant
His Royal Highness Prince Salman bin Hamad Al Khalifa, Bahrain’s Crown Prince and Prime Minister, inaugurated the Al Dur 2 Phase Two Independent Water and Power Project (IWPP), which has been built at a total investment of $1 billion. The facility is the first production station in the kingdom connected to the high-voltage electricity transmission network of 400 KV. Established by Bahrain’s Electricity and Water Authority (EWA) in partnership with Acwa Power and Japanese companies, the IWPP generates 1,500 MW of electricity and processes 50 million gallons of desalinated water daily. The station brings the kingdom’s production capacity to 5,044 MW of electricity and 204 million gallons of desalinated water daily.
May 30, 2023China’s Baoshan Oil and Steel co. invests $4bn in Ras al-Khair economic zone
China’s Baoshan Iron and Steel Co. has announced plans to invest $4 billion in a project in Saudi Arabia’s Ras Al-Khair’s new economic zone, aiming to boost the country’s manufacturing capacity. The investment is part of Saudi Arabia’s industrial outreach initiative to attract businesses to its special economic zones, offering preferential tax rates, customs duty exemptions, and allowing full foreign ownership. The Saudi SEZs have received significant investments, totalling $12.6 billion to date. Other companies, such as McDermott Arabia and Makeen Energy, have also pledged investments in the SEZs. In addition, Saudi Arabia plans to offer extra incentives to foreign investors in the SEZs to hire local workers.
May 30, 2023Saudi First Mills’ $266.4m IPO attracts bids worth $18bn
First Mills’ IPO generated $266 million. Big investors placed orders that are roughly 69 times more than what was initially available. First Mills’ IPO is set to be the second largest in Saudi Arabia this year after Jamjoom Pharmaceuticals Factory’s IPO last month. Projections show that the IPO market in the region will remain extremely strong for the rest of the year given that a variety of Saudi companies are anticipated to go public in the upcoming months.
May 30, 2023PetroBangla to sign 15-year LNG deal with Qatar on Thursday
Bangladesh’s state-owned gas company, Petro Bangla, is set to sign a 15-year agreement with QatarEnergy to purchase 2 million tonnes of liquefied natural gas (LNG) annually. The deal will commence in January 2026, providing Bangladesh with a long-term supply of LNG. This agreement aligns with QatarEnergy’s plans to sign a significant LNG supply deal with an Asian entity, as previously reported by Reuters.
May 29, 2023OPEC offers its full support to the UAE COP28 Presidency
On May 29th, OPEC issued a statement endorsing the UAE’s COP28 Presidency. “The UAE”, it read, “is recognized as a global leader in addressing energy challenges, climate change, and sustainable development through significant investments in renewables and emission-reducing technologies. Dr. Al Jaber, Chairman of Masdar and Group CEO of ADNOC, is esteemed as a global energy leader.” The statement also underlined how Al Jaber’s expertise and leadership in both organizations position the UAE well for productive and inclusive discussions at COP28, emphasizing the importance of a just energy transition. OPEC’s endorsement of the UAE’s leadership comes amid slagging oil prices necessitating the need for cohesion among the group’s members.
May 29, 2023APM Terminals Bahrain aims to become region’s 1st fully solar energy-powered port
APM Terminals Bahrain, a subsidiary of A.P. Moller-Maersk, is implementing a solar power project at Khalifa Bin Salman Port in Bahrain. The $10 million project aims to power port operations with clean and sustainable energy, reducing carbon emissions by 65%. This initiative aligns with APM Terminals’ global decarbonization plans and Bahrain’s commitment to reducing emissions and achieving net zero by 2060. By becoming the region’s first seaport fully powered by renewable energy, the project sets an example for the maritime industry but also allows Bahrain to lead the way both regionally and globally.
May 25, 2023Aramco to develop gas field in Iraq
During the Iraqi-Saudi Coordination Council meeting, Iraq’s Minister of Oil, Hayan Abdul-Ghani, announced that Aramco, the Saudi oil company, will develop the Akkas gas field in Iraq, with a production capacity of over 400 million cubic feet per day. Abdul-Ghani invited Saudi companies to invest in Iraq’s Nibras petrochemical project and encouraged Saudi specialized companies to participate in developing oil and gas fields on the Iraq-Saudi border. The meeting also witnessed the establishment of the Saudi Iraqi Investment Company, with a $3 billion investment plan for Iraq, fully owned by the Saudi Public Investment Fund.
May 24, 2023Welspun’s associate firm signs contract with Saudi Aramco worth SAR 1.8 bn
East Pipes Integrated Company for Industry (EPIC) signed a contract worth 1.8 billion (SAR) to supply Aramco with large-diameter steel pipes. This is one of the largest deals that EPIC has signed with Aramco. The deal is part of Aramco’s larger effort to expand its Master Gas System (MGS) to include the Western Province. This will help Saudi Arabia achieve its net-zero emission goal.
May 24, 2023Iraqi Kurdistan’s first solar plant helps with power outages, boosts agriculture
KRG’s Prime Minister Mansour Barzani announced a solar power project to combat electricity shortage and boost the agriculture sector. The project will cost $100 million and aims to produce 25 megawatts of electricity per hour. KRG pointed out last year that about 20 percent of Kurdistan’s electricity is reliant on solar power. The three main reasons behind Kurdistan and Iraq’s overall electricity shortage are linked to the destruction of Iraq’s national grid amid the 1991 Gulf War, looting incidents during the US invasion of Iraq in 2003, and government corruption.
May 24, 2023Kaabi warns Europe of gas shortages in switch to renewables
Saad bin Sherida Al Kaabi, Qatari Minister of State for Energy Affairs and QatarEnergy CEO, warned that Europe will face severe oil and gas shortages without a proper energy plan. He emphasized the limitations of renewables and the need for a balanced energy mix. Kaabi expressed concern about natural gas scarcity due to aggressive energy transition policies. He also discussed Qatar’s gas production plans and the importance of studying energy supplies for economic stability.
May 22, 2023L&T unit wins two major power projects in Saudi Arabia
Indian engineering and construction firm Larsen & Toubro (L&T) has secured two large orders in Saudi Arabia for the construction of 380kV overhead power transmission lines along the Red Sea coast. The orders, valued between $302 million and $603.6 million, will strengthen the power infrastructure in key cities and support the growing demand in industrial and tourism hubs. Additionally, L&T has obtained an order for the design, supply, and construction of a 380kV substation in Saudi Arabia to support the country’s renewable energy goals. L&T has been successful in securing significant contracts in the Middle East and India recently. The contracts come as Saudi Arabia hopes to transform its Red Sea coast into a tourism and development project.
May 22, 2023ACWA to Invest $120 Million in Uzbekistan Renewables Afresh
Saudi’s ACWA signed two sets of agreements to help Uzbekistan reach its goal of decarbonizing 35 percent of the energy sector by 2030. The first set of agreements will aim to decarbonize Uzkimyosanoat of Uzbekistan by implementing green hydrogen projects. The second set of agreements will consist of funding the Nukus Wind Project. ACWA’s initiative to help Uzbekistan decarbonize its energy sector is projected to reduce carbon emissions by more than 6 million tonnes by 2030.
May 22, 2023Saudi Arabia’s $8.4bn Neom green energy mega-project hits financial close
Neom Green Hydrogen Company (NGHC) is launching a renewable power project that aims to generate 600 tonnes of green ammonia per day. The project will involve 23 local, regional, and international financial institutions that will cover $6.1 billion of non-recourse finance. The project aims to begin generating green energy by the end of 2026.
May 22, 2023Houthis Sign Deal With China For Oil Exploration In Yemen
The Houthi-led government in Yemen has signed a memorandum of understanding with China’s Anton Oilfield Services Group (AntonOil) and Chinese officials for investment in Yemen’s upstream sector. Yemen’s Oil and Minerals Minister had invited foreign companies to explore investment opportunities in the country’s oil exploration sector. The Houthi-led government warned foreign companies against dealing with the Saudi-backed Presidential Leadership Council, the internationally-recognized government of Yemen. The recent Beijing-brokered truce between Riyadh and Tehran has positioned China to benefit from potential peace agreements, facilitating its capacity to make economic inroads in Yemen.
May 19, 2023S. Korean power supplier to establish $451 mln solar power generation facility in Oman
Korea Western Power will construct a $451 million solar power generation facility in Oman to produce 500-megawatt hours of electricity. Following an agreement with the Oman Power and Water Procurement Company (OPWP), Korea Western Power will begin construction in Oman’s Manah region, where it will be in charge of the operation and management of the facility. OPWP has guaranteed the purchase of the electricity for 20 years once construction has been completed, expected by March 2025. As a key supplier of oil to South Korea, Oman is actively leveraging its partnerships to diversify its energy sources and expand the scope of its energy relationships.
May 18, 2023Qualifying 106 companies to implement solar energy projects in homes and facilities in Saudi Arabia
As part of the Saudi government’s attempt to become a global center for solar energy, it recently provided 106 companies with permits to implement small solar PVs for homes. The capacity of these solar PV systems should not exceed 2 megawatts for the purpose of self-consumption. Saudi Arabia has pledged to be carbon neutral by 2060 as well as produce 50% of its energy needs from renewable sources by 2030.
May 18, 2023Iran and Russia sign 10 oil cooperation agreements
Iran and Russia signed ten agreements for cooperation in the oil industry, including six MoUs, two contracts, one agreement, and a roadmap pertaining to bilateral cooperation in the industries of technology transfer and oil recovery enhancement. The agreements aim to enhance economic cooperation, particularly in technology transfer and oil recovery. Both countries expressed support for each other within OPEC and discussed the integration of banking systems and currency utilization in bilateral trade. Implementation of the agreements is expected soon, with optimism for increased trade volume in the future.
May 18, 2023Qatar signs $10bn project to develop gas field shared with Iran
QatarEnergy and Technip Energies have signed a $10 billion deal to develop the South Pars natural gas field shared between Qatar and Iran. The project includes two LNG production lines, increasing Qatar’s total production by 60% to reach 126 million tons by 2027. Sanctions against Iran have delayed the completion of its part of the field, which requires significant investment to maintain production levels. The global demand for Qatar’s gas has risen due to the Russian-Ukrainian conflict and sanctions on Russia, signaling a movement towards increased global investment in Gulf oil and LNG industries.
May 18, 2023UAE to generate 6% of its power from nuclear energy
The UAE aims to transition 6% of its energy consumption to nuclear power as part of its net-zero emissions goal by 2050. The country has made progress with the Barakah Nuclear Energy Plant, which is expected to supply 25% of electricity once completed. The UAE has signed agreements with Chinese nuclear energy companies to strengthen its nuclear industry. This move towards nuclear energy is significant in the Middle East, where several countries have nuclear ambitions. China’s involvement is expected to support the UAE’s diversification efforts and forge a stronger energy partnership between the two nations. The development of a domestic nuclear industry enables the UAE to enhance its technological capabilities and establish itself as a regional leader in nuclear energy.
May 18, 2023Qatar Energy cuts July al-Shaheen oil price to 27 month low
Qatar Energy has set the July term price for al-Shaheen oil at the lowest level since April 2021. The price, a premium of about $1.03 per barrel above Dubai quotes, reflects sluggish refining margins and ample crude supplies. Trading sources suggest that companies like Total, Shell, ExxonMobil, and Vitol have likely won the cargoes. Thin refining margins and planned refinery operations reductions have contributed to weakened spot premiums for Middle Eastern crude. Despite recent reconciliation with its GCC neighbors, the move highlights Qatar’s continued desire to conduct energy policy independent of its Gulf counterparts.
May 18, 2023Oman to issue RfQs for three wind power projects this year
Oman Power and Water Procurement Company (OPWP) announced that RfQ and RfP would be issued this year for three wind-based Independent Power Projects (IPPs). This is part of the Omani government’s larger effort to enhance renewable energy production and consumption. OPWP has also been looking into creating a Concentrated Solar Power (CSP) plant in Oman.
May 16, 2023Adnocs unit’s $607 million Abu Dhabi IPO sells out in minutes
Adnoc successfully completed the initial public offering (IPO) of its maritime logistics unit, Adnoc Logistics & Services, in the Middle East. The IPO received overwhelming demand, with orders covering all shares within minutes. Adnoc plans to sell approximately 1.11 billion shares, valuing the company at up to $4.05 billion. The deal attracted cornerstone investors, including Al Seer Marine Supplies & Equipment, National Marine Dredging, Alpha Oryx, and Abu Dhabi Pension Fund, committing around $180 million combined. This IPO marks Adnoc’s second listing this year and is set to be the region’s second-largest IPO. Despite a decline in IPO proceeds in the Middle East, the region outperforms Europe in terms of IPO activity. Adnoc has been divesting stakes in its units since 2017 to diversify its economy and reduce reliance on fossil fuels.
May 16, 2023China’s first yuan-settled LNG trade unloaded from UAE
According to China National Offshore Oil Corporation, 05/16/2023 marked the first cross-border LNG trade using the Chinese yuan. This cross-border trade consisted of transporting roughly 65,000 tons of LNG from the United Arab Emirates. The use of yuan in cross-border trades has been on the rise amid China’s large volume of crude oil and LNG imports.
May 16, 2023QatarEnergy awards $10bn gas contract to Tech Energies, CCC
QatarEnergy awarded a $10 billion contract to a joint venture of Technip Energies and Consolidated Contractors Company for the purpose of engineering and constructing the North Field South (NFS) project. Once the project is complete, it is projected to increase Qatar’s LNG production by roughly 60 percent in 2027. The country’s energy minister described this trade deal as, “another significant milestone in the world’s largest LNG project”. He also pointed out that the project will minimize its footprint by having one of the largest CO2 capture facilities.
May 16, 2023$5 billion undersea UAE-Gujarat gas pipeline proposed
South Asia Gas Enterprise (SAGE) is asking for the support of the government to construct a $5 billion undersea gas pipeline, connecting the GCC and India. The proposed pipeline will be 2,000km long and is projected to yield an annual saving of roughly 7,000 crores. This same project was originally planned between Iran and India, but Western sanctions have prevented the project from taking place.
May 15, 2023Iraq set to launch giant petrochemicals project
Iraq is set to launch the ‘Nibras’ project, a joint venture with Royal Dutch Shell, to construct the largest petrochemical plant in the region. The project, with an estimated cost of $8.5 billion, aims for a production capacity of 1.8 million tonnes per year. Based in the Southern oil hub of Basra, the plant will utilize Iraq’s gas resources to position the country as a global petrochemical producer. The project is expected to be completed in 5-6 years and generate revenues of approximately $90 billion over its 35-year operational period.
May 15, 2023Global oil industry requires $12.1trln in investments up to 2045: OPEC
Haitham Al Ghais, Secretary General of OPEC, stressed the importance of collaboration and inclusive action in achieving a just and sustainable energy transition. He highlighted the challenges faced by the energy, climate, and sustainable development sectors and stated that no one-size-fits-all solution exists for a sustainable energy future and that every voice should be included in the discussions. He also mentioned the rising global energy demand and the need for increased investment and collaboration to meet this demand while reducing emissions. OPEC member countries are committed to playing a role in providing energy and reducing emissions through investments in cleaner technologies and renewable energy. Al Ghais concluded by emphasizing the importance of a multilateral approach and collaboration in tackling energy challenges and achieving a sustainable energy future.
May 14, 2023Saudi Arabia eyes reducing liquid fuel consumption by 95% for agriculture sector
Saudi Arabia aims to achieve a 95% reduction in liquid fuel consumption in its agriculture sector by 2030. The Ministry of Environment, Water, and Agriculture’s Liquid Fuel Displacement Program will replace liquid fuels with electricity from the grid, benefiting more than 10 government entities and 20 private companies. The program will enhance operational capacity, improve sustainability, and provide support for necessary modifications in the agricultural sector. The rollout will initially target major agricultural companies, followed by large and smaller farms. The ministry is focused on increasing self-sufficiency in fruit and vegetable production and improving quality and safety standards.
May 14, 2023Adnoc Gas IPO was world’s largest in Q1, EY report shows
The Middle East and North Africa (MENA) region experienced 10 IPOs in Q1 2023, raising a total of $3.4 billion, according to an EY report. Although there was a decrease in both the number of listings and their value compared to the previous year, the MENA IPO market remained strong amid global uncertainties. Saudi Arabia led in listing activity, followed by the UAE, whose Adnoc Gas PLC raised $2.5 billion, the largest IPO of the quarter globally. and Despite geopolitical challenges, investor confidence in the region remains robust, and there is a promising IPO pipeline for the rest of the year, supported by various initiatives.
May 13, 2023Iraq’s crude oil reserves increase by 10 bln barrels: oil minister
Iraqi Oil Minister Hayan Abdul Ghani announced that Iraq’s oil reserves increased by 10 billion barrels and natural gas reserves increased by eight trillion cubic feet. The increase was discovered through a seismic survey near Basra, raising Iraq’s proven crude oil reserves to around 155 billion barrels and proven natural gas reserves to about 140 trillion cubic feet. These figures are not yet officially recognized by OPEC, of which Iraq is a member.
May 13, 2023Masdar in deal to triple renewable energy capacity by 2030
Abu Dhabi Future Energy Company (Masdar) has partnered with the International Renewable Energy Agency (IRENA) to launch a project aimed at tripling global renewable energy capacity by 2030. The collaboration will establish a global baseline for renewable energy, focusing on solar, wind, hydropower, geothermal, and battery storage technologies. Masdar, committed to growing its capacity to 100GW by the end of the decade, will work with IRENA to emphasize the role of renewable energy in combating climate change at the upcoming COP28. The project will also address regional challenges and provide recommendations for action.
May 12, 2023Exclusive: Iraq does not expect OPEC+ to make further cuts at June meeting
Iraq does not expect OPEC+ to make further cuts to oil output at its next meeting in June, its oil minister Hayan Abdel-Ghani said, in the first indication from an OPEC minister about a potential decision as oil prices slide. OPEC+ agreed to cut production in late 2022 to support the market as the economic outlook worsened, hitting prices. The announcement helped push oil prices sharply higher, but those gains have since been erased as fears of a global economic slowdown took hold.
May 12, 2023Iraq expects Total to begin $27 bln energy project in second half of 2023
Iraq expects TotalEnergies to begin operations on a long-delayed $27 billion oil, gas, and renewables project in the second half of 2023 after finalizing side contracts with a state oil company, an Iraqi deputy oil minister said on Friday. The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years, but it was delayed amid disputes between Iraqi politicians over terms. Iraq said last month it had agreed to a smaller 30% stake in the project, reviving the deal that Baghdad hopes could lure foreign investment back into a country enjoying relative stability after years of conflict and tensions.
May 11, 2023Iraq invites bids for 13 oil sites
Iraq has invited international companies to bid for projects to develop oil and gas sites within a new licensing round. According to a Ministry statement carried by Aliqtisad News network, the sites are located in the Southern Basra province, Baghdad, Nineveh in the North, the Southeastern Maysan Governorate, Wasit in the East, and Saladin in Central Iraq.
May 11, 2023Saudi Aramco to postpone mega IPO of energy trading unit
Saudi Aramco is pushing back a planned Riyadh initial public offering of its energy-trading business, a deal that would have ranked as one of the world’s largest share sales this year, sources confirmed. Aramco had been planning to list the business in late 2022 or early this year and was considering seeking a valuation of more than $30 billion, Bloomberg News reported previously. It now feels it could be difficult to list such a large business on the Riyadh bourse at the moment.
May 11, 2023ADNOC Drilling eyes major drilling growth in Abu Dhabi
In an exclusive interview with Oil & Gas Middle East, CEO of ADNOC Drilling Abdulrahman Abdulla Al Seiari, discusses the company’s fleet expansion, first-quarter results, and increased decarbonization focus. Since its initial public offering in October 2021, ADNOC has secured more than $12 billion in contract backlog. In April they were awarded a $412 million IDS contract which will be the first of a number of significant awards anticipated this year.
May 11, 2023Qatar: 54% of waste recycled and converted to energy, fertiliser, says minister
The Ministry of Municipality recycles approximately 54% of the waste generated from households as well as commercial and industrial establishments in the country and converts it into energy or fertilizer, and aspires to reach a 95% recycling rate by the end of 2030, Minister of Municipality Dr. Abdullah bin Abdulaziz bin Turki al-Subaie has said. This is a good indicator, and there is an eagerness to improve this percentage through raising public awareness, while the rate of recycling and re-conversion into energy and other uses has also been studied.
May 10, 2023US House committee to consider bill on pressuring OPEC oil group
The House Judiciary Committee was set to consider a bill on Wednesday to pressure the OPEC oil production group to stop making output cuts that can result in higher fuel prices for U.S. drivers. The committee was expected to vote on the so-called No Oil Producing and Exporting Cartels, or NOPEC, bill, which would change U.S. antitrust law to revoke the sovereign immunity that has protected OPEC+ members and their national oil companies from lawsuits over price collusion. OPEC+’s members include Saudi Arabia and Russia.
May 10, 2023Saudi Aramco to begin bitumen exports from Yanbu
Saudi Aramco will begin bitumen cargo exports in June from Yanbu on the Red Sea coast, home to the 400,000 b/d Yasref refinery. The move would add to global supply at a time when concerns over bitumen production and availability in many parts of Europe have been heightened by the EU and UK ban on imports of Russian crude, refinery feedstocks, and bitumen.
May 9, 2023China’s April crude oil imports fall to lowest since January
China’s crude oil imports fell in April to the lowest level since January, customs data showed on Tuesday, as the country’s post-COVID economic rebound slowed amid a weaker global macroeconomic backdrop. Imports in March had surged 22.5% on last year to 12.3 million bpd – the highest level since June 2020 – as refinery throughput set a new monthly record of 14.9 million bpd. Slower economic activity has put the brakes on refined fuel demand, particularly for diesel.
May 9, 2023Oman LNG eyes expansion of Qalhat plant capacity to 12mln tonnes per year
Buoyed by a slew of recent commitments to offtake its LNG output, Oman LNG plans to expand its gas liquefaction capacity through the Qalhat complex — a move that also bodes well for its efforts to secure an extension of its concession to operate beyond its current mandate expiring in 2024. The uptick will further strengthen the majority government-owned company’s positioning in a global energy market still roiled by the effects of a gas supply crisis triggered by the Russian-Ukrainian conflict, according to Oman LNG CEO Hamad al Numani. Next in its sights is a capacity ramp-up to 12 million tpy of production — a goal Oman LNG seeks to achieve within a “year or two”, alongside its efforts to secure a government mandate to operate well into the foreseeable future.
May 9, 2023QatarEnergy enters Suriname offshore exploration
QatarEnergy has entered into two Production Sharing Contracts for Blocks 6 and 8 offshore the Republic of Suriname, following successful bids in these blocks, as previously announced in June 2021. Commenting on the signing of the agreements, HE Minister of State for Energy Affairs, the President and CEO of QatarEnergy Eng. Saad bin Sherida Al Kaabi said: “We are pleased to have concluded our entry into Blocks 6 and 8 along with our partners, TotalEnergies and Staatsolie, and look forward to commencing exploration in this promising basin.”
May 9, 2023Oman, Belgium sign pact for green hydrogen certificate pilot
Oman’s Ministry of Energy and Minerals, and Belgium’s Ministry of Energy have signed an agreement for a Green Energy Certificate pilot project for the ‘Hyport Duqm’ project, the state-owned Oman News Agency (ONA) reported. The report said the agreement aims to evaluate the adherence of green hydrogen projects in Oman to the European Union’s criteria to pave the way for exporting green hydrogen to European markets in the future.
May 8, 2023Iraq unveils plan for 300,000-bpd oil refinery
Iraq is planning to build an oil refinery in the Southern Faw Peninsula with a production capacity of 300,000 barrels per day (bpd), the official news agency said on Monday. Iraq, OPEC’s second-largest oil producer, is planning to build several oil refineries in a post-war drive to develop its hydrocarbon sector and other facilities.
May 8, 2023Bahrain aims to double renewable energy targets as Gulf countries step up production
Bahrain aims to double renewable energy targets to achieve 20% of the total energy mix by 2035, according to the kingdom’s Minister of Electricity and Water Affairs. Bahrain is among the GCC countries seeking to boost renewable energy production to reduce emissions and become net zero in the coming decades.
May 8, 2023Senior EU Official, Oman’s Energy Minister Discuss Bloc’s Gas Purchasing Platform
European Commission Vice-President Maros Sefcovic held a meeting with Oman’s Minister of Energy and Minerals Salim Al Aufi to discuss the EU’s joint gas purchasing platform and green transition. According to Sefcovic, the two discussed Oman’s potential involvement in AggregateEU, the EU’s mechanism to aggregate gas demand and make joint purchases at better prices. This program is part of the EU’s effort to pivot from Russian gas by switching to more reliable alternatives.
May 7, 2023PDO to diversify into carbon capture, blue hydrogen in Oman
Petroleum Development Oman (PDO) has announced a landmark foray into Carbon Capture, Utilisation and Storage (CCUS). At the same time, the majority state-owned energy company also plans to diversify into the production of blue hydrogen, a commercially valuable low-carbon commodity closely associated with the deployment of CCUS technologies. The announcement is set to further buoy a nascent bid, led largely by a handful of climate-tech startups, to kindle the growth of a CCUS industry in Oman.
May 7, 2023Sineng signs with L&T for Saudi’s 700mw solar project
Sineng Electric has signed a contract with Larden & Toubro (L&T) to supply the former’s Turnkey Stations to power the Rass solar PV Independent Power Plant (IPP), one of Saudi Arabia’s National Renewable Energy Program (NREP) large projects. The project aims to maximize renewable energy share, diversify energy sources, and decarbonize the local economy. A consortium led by ACWA Power is behind the development of the $450mn project, a power purchase agreement signed for 25 years with the Saudi Power Procurement Company (SPPC). The plant will contribute to Saudi Vision 2030 by powering approximately 132,000 households in central Saudi Arabia with clean energy.
May 7, 2023UAE signs nuclear energy cooperation agreements with China bodies
Emirates Nuclear Energy Corporation (ENEC) has signed three agreements with Chinese nuclear energy organizations as it looks to boost low-carbon nuclear power. The three Memorandums of Understanding (MoU) cover cooperation in nuclear energy operations, in high-temperature gas-cooled reactors, and in nuclear fuel supply and investment, according to ENEC. When completed, Barakah will have four reactors with 5,600 megawatts (MW) of total capacity – equivalent to around 25 percent of the UAE’s peak demand.
May 6, 2023Achieving reduction in oil and gas emissions will require a $600 billion expenditure, says IEA
Around $600 billion in spending is required this decade to achieve the cut in oil and gas emissions, according to a new IEA report. The report identifies five key levers to achieve this reduction, including: tackling methane emissions; eliminating all non-emergency flaring; electrifying upstream facilities with low-emissions electricity; equipping oil and gas processes with carbon capture, utilization, and storage; and expanding the use of low-emissions hydrogen in refineries. Tackling methane emissions is the most important measure to limit emissions from the industry’s operations. It is also one of the most cost-effective and impactful measures to cut emissions across the economy and limit near-term global warming.
May 5, 2023Oil prices jump but post third straight weekly fall on economic woes
Oil prices rose on Friday, but fell for the third straight week after a sharp fall earlier this week ahead of benchmark interest rate rises and amid concern that the U.S. banking crisis will slow the economy and sap fuel demand. The Brent benchmark finished the week with a decline of about 5.3%, while WTI plunged 7.1%, even after the rebound on Friday. Both benchmarks were down for three weeks in a row for the first time since November. However, expectations of potential supply cuts at the next meeting of the OPEC+ producer group in June have provided some price support, said Kelvin Wong, a senior market analyst at OANDA in Singapore.
May 5, 2023Oman’s OETC expects to hook up 2.25GW of renewable energy by 2026
Oman Electricity Transmission Company (OETC) expects to connect up to 2.25 gigawatts (GW) of renewable energy to its transmission grid by 2026, according to the company’s latest five-year capability statement. OETC also noted that Oman Power and Water Procurement Company’s (OPWP) seven-year statement indicates that two renewable energy plants, the Ras Madrakah wind farm and MIS Solar IPP, would be energized by the second quarter of 2027. Oman’s fuel diversification policy targets 30 percent of generation output from Renewable Energy Sources (RES) by 2030 and 39 percent by 2040
May 4, 2023TotalEnergies’ $27 billion Iraq project to begin in two weeks
Iraq and TotalEnergies expect to begin work on a long-delayed $27 billion project within the next two weeks. Five side agreements related to the deal are to be signed in the next two weeks, paving the way for implementation to commence. The initial agreement was signed in 2021 for TotalEnergies to build four oil, gas, and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years, but political infighting has delayed the process. Iraq eventually agreed to a smaller 30% stake.
May 4, 2023Abu Dhabi receives bids from two consortia for Waste-to-Energy IPP
EWEC (Emirates Water and Electricity Company), the main procurer for water and electricity in Abu Dhabi, and Abu Dhabi Waste Management Company (Tadweer) announced on Thursday that they have received proposals from two consortia for the development of the greenfield Abu Dhabi Waste-to-Energy (WtE) Independent Power Project (IPP). The project will have an expected annual processing capacity of 900,000 tonnes of waste, enabling an expected carbon emissions reduction of 1.1 million tonnes per year. It is expected to generate enough electricity to power up to 52,500 households. The WtE project aims to commercially operate by the fourth quarter of 2026.
May 3, 2023Oil falls 4%, extending losses after Fed rate hike
Oil prices fell 4% after the Fed raised interest rates by a quarter of a percentage point, pressuring oil prices as traders worried that slower economic growth could hit energy demand. Brent was down 4% to close at $72,33 per barrel (lowest since December 2021), and WTI fell 4.3% to $68.80. Yet, the Fed also signaled it may pause further increases, which should support oil prices.
May 3, 2023IMF: Saudi Arabia Needs Oil Prices At $80.90 To Balance Budget
According to the International Monetary Fund (IMF), Saudi Arabia needs oil prices at $80.90 per barrel to balance its budget this year and finance its megaprojects such as NEOM. This is lower than the $83.60 and $85.80 a barrel levels of 2021 and 2022, but comes amid an expected economic slowdown for Riyadh from 8.7% growth last year to 3.1% this year and next.
May 3, 2023U.S. says Iranian forces seize second oil tanker within a week
Iran’s Revolutionary Guard seized a Panama-flagged oil tanker in the Strait of Hormuz, the second-such capture by Tehran in recent days according to the U.S. Navy. While Iran did not acknowledge the seizure, tanker captures have been a part of its shadow war with the West since 2019, when the Trump administration withdrew from the Joint Comprehensive Plan of Action.
May 2, 2023TotalEnergies, Sinopec pitched for role in Saudi gas project
Saudi Arabian oil giant Aramco is receiving pitches from Sinopec Corp and TotalEnergies for a slice of the Jafurah shale gas development project worth about $10 billion. With reserves estimated at 200 trillion cubic feet of raw gas and the expectation to produce 2 billion cubic feet of gas per day by 2030, it is the largest shale gas development outside the U.S. The project was initially aimed at satisfying domestic demand, but amid growing competition in shale oil production from the U.S., Aramco has signaled that Jafurah might become a gas export hub.
May 2, 2023UAE’s ADNOC swaps Fujairah for Ruwais as location for LNG export project
ADNOC announced that its planned liquefied natural gas (LNG) project would move forward in the Al Ruwais Industrial City in Abu Dhabi instead of the emirate of Fujairah. ADNOC’s current operations, its future growth projects as well as its local supplier base motivated the decision. ADNOC plans to more than double its LNG production capacity to meet rising global demand, especially in Europe.
May 1, 2023Aramco, PIF and China’s Baosteel agree to set up steel complex in Saudi Arabia
Saudi oil giant Aramco, Chinese conglomerate Baoshan Iron & Steel Co., Ltd. (Baosteel) and the Public Investment Fund have agreed to set up an integrated steel plate manufacturing complex in Ras al-Khair, one of the four new Special Economic Zones in the kingdom. The project aims to enhance the domestic manufacturing sector and export heavy steel plates to the GCC and MENA. It is expected to produce 1.5 million tonnes of steel plates per year.
May 1, 2023ADNOC Gas signs LNG supply deal with TotalEnergies unit for $1.2bln
ADNOC Gas plc announced a three-year supply agreement valued at $1.2 billion with the French company TotalEnergies Gas and Power Limited for the export of liquefied natural gas (LNG). TotalEnergies LNG wil then export the LNG around the world, with a particular focus on the growing Asian market.
May 1, 2023ADNOC scraps multibillion-dollar contracts for Hail and Ghasha Project
ADNOC has recently terminated two pre-construction services agreements for onshore and offshore operations on its Hail and Ghasha sour gas development project. Among the largest oil and gas ventures in the UAE, it plays a vital role in Abu Dhabi’s plans to boost its gas production capacity as the project would produce 1.5 billion cubic feet of gas per day.
April 29, 2023Total of 96.6% of Japan’s March Imports of Oil Came from Arab Countries, Led by Saudi Crude
In March, Japan imported 96.6% of its crude oil from Arab countries, with Saudi Arabia and the UAE accounting for over 80% of the total. The five Arab Gulf Cooperation Council countries and the neutral zone between Saudi Arabia and Kuwait were the main sources as Japan has boycotted Iranian oil due to US sanctions.
April 29, 2023US Confiscates Iran Oil Cargo on Tanker Amid Tehran Tensions
The U.S. confiscated Iranian oil from a tanker at sea as part of a sanctions enforcement operation. In response, Iran seized another U.S. oil-laden tanker. The tensions between the two countries have escalated over Iran’s nuclear program with the U.S. Navy confirming Iran’s seizure of a Marshall Islands-flagged tanker in the Gulf of Oman. U.S. senators have urged President Biden to remove policy hurdles preventing the seizure of Iranian oil shipments while the UN Secretary-General expresses his support for international maritime law.
April 29, 2023Thousands of Iran Energy Workers to be Sacked, Replaced
After taking to the streets in protest of pay and working conditions, thousands in Iran’s petrochemical sector will be sacked and replaced, according to the CEO of the Pars Special Economic Energy Zone. The decision comes after employees in the Bushehr province, the site of Iran’s South Pars gas field, demanded salary increases and improved benefits. Previous labor protests in Iran have also highlighted dissatisfaction with low wages and high living costs, made worse by the sanctions.
April 28, 2023Iran Navy Seizes Tanker Near Oman that was on Route to Houston
Iran’s navy has seized a Marshall Islands-flagged oil tanker, the Advantage Sweet, in the Gulf of Oman as it was heading to the U.S. The seizure comes amid tensions over Iran’s nuclear program. The U.S. Navy’s 5th Fleet has called for the immediate release of the tanker, stating that Iran’s actions are contrary to international law. Iran claims the seizure was in response to a collision with an unidentified ship in the Persian Gulf.
April 28, 2023Seera’s Unit Pens $128.33mln Deal with Saudi Aramco
Lumi Rental Company, a subsidiary of Seera Group Holding, has signed a contract worth SAR 471.18 million with Aramco. The agreement entails leasing 3,003 vehicles to Aramco for a period of three to five years, as Lumi seeks to expand its operating assets through long-term leasing contracts.
April 27, 2023Saudi Arabia and Iraq Discuss Electrical Interconnection Project
Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, met with Iraq’s Minister of Electricity, Ziyad Ali Fadel, in Riyadh to discuss the progress of the electrical interconnection project between the two countries. The project aims to enhance energy exchange, support reliable electrical networks, and promote renewable energy cooperation. The ministers also explored opportunities for Saudi companies to contribute to smart meter infrastructure development in Iraq and discussed exchanging experiences in financial and regulatory reforms within the electricity sector.
April 27, 2023Saudi net reserves fall to $410 billion, lowest since 2010
Saudi Arabia’s foreign reserves have fallen to the lowest level in over 13 years. The country’s net foreign assets declined for the fifth consecutive month to $410 billion in April and are down more than 44% since peaking in August 2014. The decrease in reserves follows a change in Saudi Arabia’s approach to managing its oil wealth, with officials deciding to hold onto the money before determining its allocation. The government aims to maintain a specific level of reserves as a safeguard against potential economic shocks. The country’s fiscal outlook is also becoming less favorable, with the IMF projecting a budget deficit of 1.1% of GDP in contrast to the government’s expectation of a surplus. To address its financial needs, Saudi Arabia recently issued $6 billion worth of Islamic bonds.
April 26, 2023Saudi Arabia’s Rabigh Solar Project Begins Operations
The photovoltaic power station project in Rabigh, Saudi Arabia has successfully connected to the grid and entered the operational phase. It is a significant component of the Saudi government’s ‘Vision 2030’ plan for diversifying energy sources and promoting energy transformation. The project will supply green and clean power to approximately 45,300 households, with an annual power generation of 894 million kWh and an estimated reduction of 779,900 tons of carbon dioxide emissions.
April 26, 2023ACWA Power Receives Financing for 200MW Egyptian Solar Project
Saudi Arabia’s Acwa Power has secured a funding package of $123 million for the development of the 200MW Kom Ombo solar project in Egypt. The package was provided by international financial institutions including the EBRD, OPEC Fund, AfDB, GCF, Arab Bank, and SEFA. The project, while previously delayed due to global supply chain disruptions caused by the pandemic, is expected to generate enough clean energy to power 130,000 Egyptian households and offset 280,000 tons of carbon emissions annually, contributing to Egypt’s renewable energy targets.
April 26, 2023Malaysian Contractor Lands $50 million Contract for Qatar Gas Field
Ranhill Utilities, in a joint venture with Worley, has secured a $50 million engineering contract for Qatar’s North Field Production Sustainability (NFPS) project. The contract, awarded by the Saipem subsidiary, involves engineering design work for offshore compression facilities. The project aims to sustain natural gas production at Qatar’s North Field and is expected to be completed by the third quarter of 2024.
April 26, 2023Iraq to Achieve Gas Self-Sufficiency Within 3-5 Years
Iraqi Prime Minister Mohammed Shia’ al-Sudani announced that gas projects and a partnership with French energy giant TotalEnergies will enable Iraq to achieve self-sufficiency and become a gas exporter within 3-5 years. The agreement with TotalEnergies involves the construction of oil, gas, and renewables projects in southern Iraq, in exchange for a 40% stake in The Gas Growth Integrated Project.
April 25, 2023Oman to Sign Multibillion-Dollar Hydrogen Deals
Oman’s Hydrom is set to sign official contracts with developers for multiple green hydrogen projects in the country. The agreements include a 47-year period of development and production and aim to support Oman’s goal of producing 1 million tonnes of green hydrogen annually by 2030. Developers will bid in consortiums and partner with a government-owned entity after the award.
April 25, 2023ACWA Power Gets $174m Loan for 2 Uzbekistan Wind Power Projects
Saudi Arabia’s ACWA Power will develop two wind power plants in Uzbekistan with $174 million in loans from the Asian Development Bank (ADB). The projects, located in Bash and Dzhankeldy, will form the largest utility-scale wind power facility in Central West Asia and will also support the construction of a transmission line.
April 25, 2023Iraq to Begin Construction of Three Refineries
Iraq’s Ministry of Oil has launched a tender process for the construction of three refineries as public-private partnership projects. The refineries include Al-Samawah, Al-Kut Investment, and Al-Nasiriyah, with capacities ranging from 70,000 to 150,000 barrels per day. The closing date for offers and required documents is 28 May 2023, with crude oil supply prices based on international prices with an 8% discount.
April 24, 2023Oil Workers Strike Spreads Across Iran
Strikes by Iranian oil industry workers over inadequate wage growth are spreading rapidly across the country. This is part of broader protest and strike movements in recent weeks, which include teachers and retirees. Iran’s Gasoline supply issues have been exacerbated by this work slowdown.
April 24, 2023Oman’s First Green Ammonia Plant By ACME To Launch By Mid-2025
Indian energy developer ACME will launch Oman’s first green ammonia plant in Duqm’s Special Economic Zone by mid-2025. The plant will be capable of producing 1.2 million tonnes of green ammonia per year. The total investment of $6 billion also covers the creation of a desalination facility, a hydrogen storage plant, and storage facilities for green ammonia.
April 23, 2023Iran Hits Bottom Of Barrel On Gasoline Supply
Nationwide strikes in Iran’s energy industry have led to warnings of gasoline supply problems. Growing consumption is attributed to heavily subsidized low prices but the fear of triggering protests and concerns over inflation have prevented fuel price increases. Iran also faces shortages due to refining capacity limitations and fuel smuggling.
April 22, 2023Iran to Begin Production from Sepehr, Jufair Oil Fields
Iran will officially start production from seven wells at Sepehr and Jufair oil fields in the Khuzestan Province, as of April 22nd. Iran’s Pasargad Energy Development Company is responsible for the plants” development and production, which is rising to 21,000 bpd. At full capacity, the Sepehr and Jufair fields would be capable of producing 450 million and 390 million bdp, respectively.
April 21, 2023Putin Calls MBS to Discuss OPEC+ deal
Russian President Vladimir Putin called the Crown Prince of Saudi Arabia, Mohammed bin Salman, to discuss the OPEC+ deal to cap oil production. Earlier this month, OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day in a surprise move.
April 20, 2023OPEC+ Move to Extend Oil Cuts to Stir LPG Output Loss
OPEC+’s April decision to extend production cuts is projected to trigger a 1.6 million mt/year loss in LPG output should the reduction be fully achieved, according to a report by S&P Global Commodity Insights. This production cut adds to the 2 million b/d from November 2022 to December 2023, leading to a total cut of 3.16 million b/d. Non-OPEC+ countries such as the US, Canada, and Qatar are likely to offset these cuts.
April 20, 2023Saudi’s Aramco Offers More Vacuum Gasoil Supplies for May
Saudi Aramco offered more vacuum gasoil (VGO) supplies – three cargoes of 525,000 barrels of VGO each – to be exported from its Jizan refinery in May, according to traders and shipping data. This signals that Aramco’s newest facility is yet to ramp up to full output as it had been expected to increase output for 10-ppm gasoil and cut VGO.
April 19, 2023Iraq To Restart Kurdistan Oil Exports
Iraqi Prime Minister, Mohamed Shia al-Sudani, stated that exports of crude oil from the Kurdistan region to Turkey will resume by the end of the week. Kurdish crude oil exports were halted in late March after the ICC ruled that Turkey requires Iraqi approval to accept Kurdish oil exports. Part of the compromise between Erbil and Baghdad is that exports will go through the Iraqi state-owned oil company SOMO rather than the Kurdish authorities.
April 18, 2023UAE Launches Global Competition for Sustainability Tech Startups
The UAE will host 24 high-potential technology startups from around the world to participate in its ‘Make it in the Emirates Startup Competition’. The competition consists of companies with sustainability-related innovations that can transform existing industries and plant the seed for green industries of the future. Here, the startups will have the opportunity to meet investors, policymakers, and industry partners to showcase their ideas as well as to develop and potentially deploy their technologies in the UAE.
April 18, 2023Oil Prices Dip As Recession Fears Resurface
Oil prices dipped on April 19th, as the market assessed the latest hints from the Fed that one more rate hike could be coming in early May. Fed officials suggested that the new rate hike could be needed to offset bullish economic data from China, which recorded a higher-than-expected GDP growth in the first quarter of 2023. The potential move fuels concerns about a material economic slowdown that could further weigh on oil demand.
April 17, 2023ACWA Power to develop 1,000 MW solar plant in Iraq
ACWA Power will build a 1,000 megawatt solar power plant in Iraq, the first clean energy project in the country. The joint venture project will be developed in Central Iraq’s Najaf city, around 160 km south of the capital, Baghdad.
April 16, 2023Oil holds above $80/bbl on OPEC+ cuts and traders eye China recovery
Oil prices edged up, supported by OPEC+’s plans to cut more output, while investors eyed Chinese economic data for signs of a demand recovery by the world’s No. 2 oil consumer. The IEA warned that OPEC+ producers risk exacerbating an oil supply deficit expected in the second half of the year and could hurt consumers and a global economic recovery.
April 15, 2023Qatar ‘reclaims’ position as world’s largest LNG exporter in 2022
Qatar “reclaimed” its position as the largest liquefied natural gas (LNG) exporter in the world with 80mn tonnes of LNG exports in 2022. In 2022, global LNG exports increased by 5% (18 mn tonnes) y-o-y to 399 mn tonnes, which represents a slowdown in the pace of growth in LNG exports.
April 14, 2023Iraq’s Oil Exports Still Seeing 450,000 bpd offline
Turkey still hasn’t resumed the flow of crude oil from Iraq, with 450,000 bpd in Iraqi oil exports still offline, and is holding out for in-person negotiations to take place. After the International Chamber of Commerce ruled that Turkey must pay Iraq damages for receiving oil from the Kurdistan region of Iraq without Baghdad’s permission, Turkey responded by halting the flow of crude oil overseen by the Kurdistan Regional Government.
April 14, 2023PTT to make $7 billion green hydrogen investment with ACWA Power
PTT Group, Thailand’s state-owned oil and gas conglomerate, is set to make a $7 billion green hydrogen investment with ACWA Power with the intention of powering clean vehicles in ASEAN (Association of Southeast Asian Nations). The objective of the clean energy project is to build a plant in Thailand that will be capable of producing 225,000 tons of green hydrogen annually.
April 12, 2023China’s Sinopec to take 5% share in Qatar’s North Field East
China’s Sinopec will take a 5% stake in Qatar’s North Field East expansion, part of the world’s largest liquefied natural gas project. QatarEnergy has said it plans to retain a 75% stake overall in the North Field expansion which will cost at least $30 billion, including construction of liquefaction export facilities.
April 12, 2023Masdar acquires 50% of U.S. solar project from EDF Renewables
Masdar closed the acquisition of a 50% stake in a combined solar and battery storage project from EDF Renewables North America. Masdar and EDF Renewables North America agreed in 2020 to jointly partner on the 1.6 GW portfolio, which includes three utility-scale wind projects in Nebraska and Texas totalling 815 MW, and five solar projects in California totalling 689 MW, two of which include battery energy storage systems representing 75 MW. The operational projects are displacing over 3 million tons of emissions per year.
April 11, 2023Saudi and Iraqi officials discuss linking of power grids
Saudi Minister of Energy Prince Abdulaziz bin Salman and Iraqi Minister of Electricity Eng. Ziyad Ali Fadel discussed the progress of the project for linking power grids between the two countries. The Saudi-Iraqi interconnection project will support the reliability of the electrical networks in the two countries, enhance savings, ensure optimal energy exchange for electricity production, and attract optimal investments in electricity generation projects in Saudi Arabia and Iraq.
April 11, 2023OPEC’s share of oil production growth to shrink this year
The U.S. Energy Information Administration has predicted that non-OPEC countries will account for a higher percentage of oil production gains in 2023 and 2024. According to the EIA, the total non-OPEC liquid fuels production is expected to grow by 1.9 million barrels per day (bpd) in 2023 and by 1 million bpd in 2024, while OPEC output will fall by 500,000 bpd in 2023, then rise by 1 million bpd in 2024.
April 10, 2023Kuwait Oil Company awards $76 million oil flow lines contract
Combined Group Contracting, headquartered in Kuwait, has announced that it has secured a five-year contract worth $76.5 million for oil flow lines project issued from Kuwait Oil Company. The flow line projects will be in Umm Niqa And South Ratqa in Kuwait.
April 9, 2023Saudi maintains crude supply to Asian refiners despite OPEC+ cuts
Aramco will supply full crude contract volumes loading to several North Asian buyers. This comes after OPEC+ surprised markets by announcing an extra output cut of 1.16 million barrels per day from May for the rest of the year.
April 8, 2023White House Hails Erbil-Baghdad Oil Accord and Iraq-Total Agreement on $27 Billion Energy Project
White House National Security Advisor Jake Sullivan issued a statement welcoming the “significant progress in Iraq this week with respect to energy deals.” Sullivan hailed the agreement between Erbil and Baghdad on procedures that facilitate the resumption of oil exports from the Kurdistan Region through a pipeline to the Turkish port of Ceyhan as well as an energy project agreement between Baghdad and TotalEnergies.
April 7, 2023Qatar to build two more solar power plants with a combined capacity of 880 MW
Qatar will have two more solar power plants with combined capacity of 880 megawatts within the next two years. The power plants in Mesaieed and Ras Laffan will have a capacity of 410 and 470 MW respectively. Building the power plants comes as part of implementing QatarEnergy’s updated Sustainability Strategy, which re-emphasises its commitment, as a major energy producer, to responsible production of clean and affordable energy to facilitate the energy transition.
April 5, 2023Abu Dhabi’s Adnoc Seeks About $1 Billion in Logistics Unit IPO
Abu Dhabi National Oil Co. (ADNOC) is seeking to raise about $1 billion from the initial public offering of its shipping and logistics unit. ADNOC, which listed its gas business in March 2023, has added banks EFG Hermes, Credit Agricole SA, Societe Generale SA, Arqaam Capital Ltd., Abu Dhabi Commercial Bank PJSC and International Securities as joint bookrunners on the potential IPO of Adnoc Logistics & Services. Adnoc has been selling stakes in several of its units in recent years as the United Arab Emirates and Saudi Arabia lead a regional drive to fund the diversification of their energy-reliant economies and open up their markets to international investors.
April 5, 2023QatarEnergy to acquire 25% stake in major Iraqi gas project
QatarEnergy has agreed to buy a 25% stake in Iraq’s Gas Growth Integrated Project, which was launched by TotalEnergies in 2021. The project aims to treat seawater for injection into oil reservoirs to boost production and to develop facilities to recover natural gas from flares in several oil fields in southern Iraq. The World Bank estimates that Iraq flares nearly 18 billion cubic meters of gas a year, a volume that, if recaptured, could be worth more than $2 billion.
April 4, 2023Iraq agrees to 30% stake in TotalEnergies $27 bln energy project
Iraq has agreed to a smaller 30% stake in TotalEnergies’ long-delayed $27 billion project. The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years, but it has experienced several setbacks amid disputes between Iraqi politicians over terms. A revival of the project is considered key to Baghdad’s efforts to reverse the exit of major oil companies from the country.
April 3, 2023Oil prices soar after OPEC+ announces production cuts
Oil prices soared nearly 6% after Saudi Arabia and other major oil producers said that they will cut production by 1.15 million barrels per day from May until the end of 2023. The cuts in oil output by OPEC+ countries immediately pushed crude costs higher and are expected to boost gas prices in the U.S. and other countries. Higher oil prices will also complicate the efforts by central banks to rein in inflation.
April 3, 2023Oman’s refinery products output jumps by 44%
According to preliminary statistics issued by the National Centre for Statistics and Information (NCSI), total refinery products in the Sultanate of Oman grew by 44% at the end of February, 2023. The NCSI statistics also showed that liquefied petroleum gas production rose by 62.9%, to reach 1,285,700 barrels, compared to 789,100 barrels during the same period last year.
April 2, 2023Iraq and KRG reach deal to resume oil exports
Iraq’s federal government and the Kurdistan Regional Government (KRG) have reached an initial agreement to resume northern oil exports. The agreement will remain in effect until the oil and gas law bill is approved by the Iraqi Parliament. However, the resumption of pipeline flows from the KRG will still need approval from Turkey.
April 2, 2023Iraq’s oil exports at 3.25mln bpd in March
Iraqi oil exports averaged 3.255 million barrels per day in March, 2023. The country’s March revenue was $7.4 billion with an average price per barrel of $73.37.
April 2, 2023OPEC+ oil alliance announces surprise production cuts from May
Saudi Arabia and other OPEC+ oil producers have announced voluntary cuts, starting in May, to their production, amounting to about 1.15 million barrels per day (bpd) and calling it a “precautionary measure” aimed at market stability. These voluntary cuts come in addition to the 2 million bpd output cuts agreed upon by OPEC+ in October, 2022.
April 1, 2023Saudi Aramco and Chinese partners join forces to build a major refinery
Aramco has announced an agreement with North Huajin Chemical and Panjin Xincheng to begin construction of a petrochemical and refinery complex in China’s Liaoning province. The complex will have a crude oil processing capacity of 400,000 barrels per day and a petrochemicals production capacity of 1.5 million tonnes per year. The construction will mark the first time Aramco has directly operated a refining plant outside of Saudi Arabia and is part of the company’s long-term goal of becoming an integral source of energy and chemicals for China.
March 31, 2023US urges Iraq and Turkey to end disruptive oil export stoppage
The United States has urged Baghdad and Ankara to end the stop to the flow of Kurdistan Region’s oil through the Iraq-Turkey pipeline. The stoppage occurred as a response to the ruling from a Paris arbitration court that Turkey had violated an agreement with Iraq by allowing the Kurdistan Region to begin independent oil exports in 2014. Prior to the court ruling, the Kurdistan Region was exporting about 450,000 barrels per day, and the stoppage has contributed to a rise in oil prices.
March 31, 2023Kazakhstan and UAE in Talks to Increase Tanker Fleet for Oil Exports via Caspian & Black Sea Regions
The Abu Dhabi Ports Group, a major logistics company, and KazMunayGas, Kazakhstan’s state-owned oil company, met to discuss expanding the Caspian Integrated Maritime Solutions tanker fleet with the aim to transport oil across the Caspian and Black Sea regions. The two sides plan to add tankers with a deadweight capacity ranging from 8,000 to 12,000 tonnes to the fleet.
March 30, 2023According to delegates, OPEC+ unlikely to tweak oil policy
After oil prices recovered following a drop to 15-month lows, OPEC+ is likely to stick to its existing deal to cut oil output according to OPEC+ delegates. In November, 2022, OPEC+ reduced its output target by 2 million barrels per day and plans to maintain the reduction for the rest of 2023.
March 29, 2023Qatar takes stakes in two Exxon oil and gas projects offshore Canada
QatarEnergy signed a deal for stakes in two of ExxonMobil’s offshore explorations in Canada. The agreement gives QatarEnergy a 28% interest in license EL 1167 as well as 40% in license EL 1162. QatarEnergy has in recent years expanded internationally, gaining stakes in oil and gas projects around the world by signing deals with major energy companies.
March 28, 2023Qatar’s first Green Guarantee issued for a solar project
Standard Chartered Bank and Siemens Energy have issued Qatar’s first Green Guarantee for a solar power project. The project is projected to play a significant role in the country’s national climate change action strategy and Qatar’s goal of reducing its carbon footprint while enhancing its energy independence.
March 28, 2023Saudi Aramco invests billions in China refinery deals
Saudi Arabia’s Aramco will invest billions of dollars in China’s downstream petrochemicals industry, including the construction of a new refinery. Aramco will acquire a 10% interest in China’s Rongsheng Petrochemical Co. Ltd., a purchase valued at $3.6 billion, and the company also plans to construct a new refinery and petrochemical complex in northeastern China through a joint venture.
March 27, 2023BP and ADNOC offer to buy 50% of Israel’s NewMed Energy
BP and ADNOC have offered to jointly acquire 50% of NewMed Energy, an Israeli offshore natural gas producer, for around $2 billion. ADNOC and BP said they intend to form a new joint venture as part of the deal that will be “focused on gas development in international areas of mutual interest including the East Mediterranean.” The offer is also a sign of the strengthening economic links between Israel and the United Arab Emirates since the two countries agreed to normalize ties in 2020.
March 27, 2023Oman’s OQ seeks bookrunners for gas pipelines IPO
Oman’s OQ Gas Network, the pipelines business of the oil giant OQ, has invited banks to pitch for bookrunner roles in its planned initial public offering. OQ Gas Network is preparing for a public share sale that could take place as early as June, and OQ could raise more than $500 million from the deal.
March 26, 2023Oman Offers 3 Oil and Gas Concession Areas for Local and International Companies
According to a statement by the Ministry of Energy and Minerals, Oman is offering three oil and gas concession areas for local and international local companies between March 26 and June 25, 2023.
March 25, 2023Iraq halts northern crude exports after winning arbitration case against Turkey
Iraq halted crude exports from the semi-autonomous Kurdistan region and northern Kirkuk fields after the country won a longstanding arbitration case against Turkey. The decision to stop shipments of 450,000 barrels per day of crude relates to a case from 2014, when Baghdad claimed that Turkey violated a joint agreement by allowing the Kurdistan Regional Government to export oil through a pipeline to the Turkish port of Ceyhan. A ceasing of exports through the pipeline would trigger an economic collapse for the Kurdistan Region of Iraq, and Turkey would need to source more crude from Iran and Russia to make up for the loss of northern Iraqi oil.
March 24, 2023Saudi Aramco signs MoU with Samsung on localizing 5G tech
Aramco signed a Memorandum of Understanding with Samsung to localize 5G technology in Saudi Arabia. The collaboration aims to contribute to the digital transformation of various industrial sectors, such as energy, petrochemical, and manufacturing. The agreement with Samsung comes after the launch of Aramco Digital Company, which is also seeking to accelerate digital transformation in Saudi Arabia and the wider MENA region.
March 23, 2023ENOC Group unveils five-pillar growth strategy to fuel its long-term sustainable vision
ENOC Group unveiled a five-pillar long-term growth strategy to fulfill the growing demands for reliable, secure, and sustainable energy locally and internationally. This new strategy comes after ENOC Group recorded its best performance in three decades in 2022.
March 22, 2023Iran Seeks To Expand Nuclear and Renewable Energy Partnership With Russia
Iran’s Economy Minister Ehsan Khandouzi has stated that the country is looking to expand its partnership with Russia in the energy sector, including projects involving nuclear power and renewables. Both Russia and Iran are seeking to expand their economic and trade ties in order to offset Western sanctions.
March 21, 2023Trina Solar and Al-Raebi signed 500MW solar energy deal for Yemen Market
Trina Solar and Al-Raebi for Trading signed a 5-year partnership agreement to supply 500MW of module shipments for the Yemeni market. Trina Solar will supply Al-Raebi with 100MW of its n-type i-TOPCon cell technology modules in 2023. The 5-year agreement will cater to Yemen’s increasing energy needs.
March 20, 2023Iraq and TotalEnergies to finalize $27 billion deal soon
French oil major TotalEnergies and Iraq will soon finalize a long-delayed $27 billion energy deal and talks “have reached advanced stages.” The proposed deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years. Baghdad hopes the deal will revive foreign investment in the country.
March 20, 2023Saudi ACWA Power signs deals to invest $2.5bln in green projects in Uzbekistan
Saudi Arabian utility developer ACWA Power has signed three power purchase agreements and investment agreements with Uzbekistan to develop solar and battery storage projects with a combined value of $2.5 billion. The project will potentially offset 16 million tonnes of carbon dioxide emissions a year in the Central Asian republic. Uzbekistan has set targets to generate 35%, or 15,000 MW, of its electricity from renewable sources by 2030, with 10,000 MW coming from solar and 5,000 MW from wind power.
March 19, 2023Russia overtakes Saudi Arabia as China’s top oil supplier
Russia overtook Saudi Arabia to be China’s top oil supplier in the first two months of 2023. Western sanctions and a price cap on seaborne Russian crude following Russia’s invasion of Ukraine have limited the buyer pool for Russian supply, leading the country to trade at deep discounts to international benchmarks.
March 19, 2023Oil prices recorded weekly loss of 12%, lowest since Dec 2021
Crude oil futures recorded losses of 12% in trading as a result of banking turmoil from the US Silicon Valley Bank’s bankruptcy, which has caused fears of a new global financial crisis and growing expectations regarding the US policy to raise interest rates. Al-Salem, chairman of the Kuwaiti Business Council, expects that bankruptcy and the diminishing ability to borrow will curb economic growth in the upcoming period, which will weaken demand for energy derivatives and reduce corporate profits.
March 19, 2023Iraqi Foreign Minister announces that Baghdad expects to supply gas and oil to Europe
Fuad Hussein, head of the Iraqi Foreign Ministry, said that the country intends to invest in the development of oil and gas fields, and then arrange supplies to European countries. Hussein also stated that “Iraq, which is already an oil-producing country, will also become a gas-producing country.”
March 17, 2023Saudi Arabia and Russia confirm oil production cuts until end of 2023
Saudi Arabia and Russia reaffirmed their commitment to the OPEC+ decision to cut production until the end of 2023 during a high-level meeting held in Riyadh. Saudi Energy Minister Prince Abdulaziz bin Salman, who is also the head of the Saudi side in the Joint Saudi-Russian Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation, met in Riyadh with Alexander Novak, Deputy Prime Minister of the Russian Federation and head of the Russian side in the joint committee, who had visited the Kingdom.
March 16, 2023OPEC+ views oil price drop as financially driven
OPEC+ considers the drop in oil prices to be driven by financial fears, not any imbalance between demand and supply, and expects the market to stabilize. Oil sank to a 15-month low on March 15th on concerns about contagion from a banking crisis, and then stabilized on March 16th after Credit Suisse was thrown a financial lifeline by Swiss regulators. The comments will dampen speculation that OPEC+ is concerned about weakening prices and might consider further steps to support the market.
March 16, 2023Iran’s Oil Exports Reach Five-Year High
Iran’s oil exports surged last year to their highest level since 2018. The country has exported 83 million more barrels of oil since the start of the Iranian year on March 21, 2022, than in the same period of the previous year. This was the highest level since the US reimposed sanctions on Iran 5 years ago.
March 15, 2023OPEC+ to stick to production cut
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has said that the OPEC+ alliance will stick to the agreed production cuts until the end of the year.
March 15, 2023Iran’s South pars gas company reports 42% increase in LPG production
Ahmad Bahoush, the managing director of South Pars Gas Company (SPGC), has announced that the production of liquefied petroleum gas (LPG) at the complex has increased by 42% during the 2023 Iranian calendar year, which ends on March 20th. The rise of LPG production at SPGC comes as Iran seeks to increase its non-oil exports to boost its economy, which has been struggling under the weight of international sanctions.
March 14, 2023Oman Hydrogen signs $20 billion green hydrogen agreements
Oman Hydrogen has signed 6 agreements for green hydrogen production in Oman worth more than $20 billion. Oman aims to increase green hydrogen production from 32,500 to 3.75 million tonnes per year by 2040 and from 3.5 to 8.5 million tonnes per year by 2050. The country estimates that it will need a cumulative investment of $140 billion over this period to reach its production target by 2050.
March 14, 2023OPEC predicts “modest” oil surplus amidst demand lull for Q2 2023
According to OPEC, global oil markets appear on track for a modest surplus next quarter amid a seasonal lull in demand. OPEC is pumping about 28.92 MMbpd, or about 300,000 barrels a day, more than it expects will be needed in the second quarter. The surplus could be even larger if Russian oil production continues to prove resilient to international sanctions, since OPEC’s outlook assumes a sharp drop in the country’s output next quarter.
March 14, 2023Saudi Aramco eyes additional 3 million bpd export capacity by 2030
Saudi Aramco has said it is aiming for 3 million barrels per day of additional oil export capacity by the end of this decade. This increase would be led by incremental oil and gas projects in the country and by replacing liquid fuels.
March 14, 2023Saudi energy minister: Kingdom will not sell oil to any country that imposes a price cap
Saudi Energy Minister Prince Abdulaziz bin Salman has said that the Kingdom will not sell oil to any country that attempts to impose a price cap on its supplies. According to Prince Abdulaziz, placing a ceiling on oil prices would inevitably lead to market instability, and Saudi Arabia would reduce its oil production.
March 13, 2023Oman awards 500MW Manah Solar II IPP to Sembcorp Utilities-Jinko Power JV
Singapore-based energy company Sembcorp Industries has announced that it has received an award from Oman Power and Water Procurement Company (OPWP) to build, own and operate the Manah Solar II Independent Power Project in Manah, Oman. The 500 MW solar power plant is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP.
March 12, 2023UAE’s ADNOC Gas shares surge 19% in $2.5bn IPO
Shares in the United Arab Emirates’ ADNOC Gas rose 19% on their first day of trading in a $2.5 billion initial public offering. At more than 50 times oversubscribed, it was the biggest demand ever seen for an initial public offering in the Middle East and North Africa.
March 12, 2023Iran reports highest oil exports yet since US applied sanctions over nuclear deal
Iran has said that its oil exports had risen over the past year, reaching their highest level since the US imposed fresh sanctions in 2018. Oil Minister Javad Owji has stated that 83 million more barrels of oil were sold since the start of the Iranian year on March 21, 2022, than in the same period over 2021-2022.
March 11, 2023Saudi Aramco makes a historic $161B profit in 2022
Saudi Aramco reported earning $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company. Profits rose 46.5% thanks to the rising energy prices after sanctions were placed on Russia for invading Ukraine.
March 11, 2023Oman: Oil production increases by 3.6% in 2023
Oil production in the Sultanate of Oman increased by 3.6%. Crude oil production reached 25,978,600 barrels and condensate oil production reached about 7,45,200 barrels with the average price of oil in 2022 being $94/bbl.
March 9, 2023Saudi Arabia And China Sign Clean Hydrogen Energy Agreement
The Saudi Ministry of Energy and the National Energy Administration of China have signed an agreement regarding clean hydrogen energy. The signing occurred after the Shura Council, one of the two main branches of Qatar’s legislative body, approved the draft agreement.
March 9, 2023Saudi Aramco signs $6bn deal with Korea Eximbank
Korea Eximbank, also known as the Export-Import Bank of Korea, has signed a framework deal with Saudi Aramco. Korea Eximbank can lend as much as $6bn, with $1bn is set aside for the hydrogen and renewable energy deals, to Aramco, which in turn pays South Korean companies involved in projects whose orders were placed by the state-owned oil major.
March 8, 2023Abu Dhabi’s EWEC aims to boost solar power generation capacity by 600%
Emirates Water and Electricity Company is targeting 7.3 GW, a 606% rise, in its solar power generation capacity by 2030 as the UAE pursues its target of achieving net zero by 2050. This requires an additional 3 gigawatts of solar power capacity by 2029 on top of the 1.5 gigawatts procured from the Al Ajban Solar PV Project once it becomes operational in 2026. The Emirates plans to invest $160 billion in clean and renewable energy sources over the next three decades.
March 7, 2023Siemens Energy signs contracts for power plant maintenance in Iraq
Siemens Energy has signed contracts with Iraq’s Ministry of Electricity to maintain three power plants of around 1 GW for five years as well as train local employees in the field. Siemens Energy had already signed a memorandum of understanding for the expansion of electricity infrastructure with Iraq’s Minister of Electricity, Siad Ali Fadhil, in Berlin. Several projects, which together are expected to run into the billions, are intended to reduce the Iraq’s frequent power outages and cut CO2 emissions.
March 7, 2023Oman’s OQ drilling unit raises $244m in IPO
Abraj Energy Services of OQ raised about 94 million Omani rials ($244 million) from its initial public offering. The IPO, the country’s biggest since 2010, sold more than 377 million shares and was “heavily oversubscribed,” generating more than 790 million Omani rials ($2 billion) in bids.
March 6, 2023Adnoc Drilling recommends dividend of $341m for second half of 2022
Adnoc Drilling has recommended a dividend of $341.25 million for the second half of 2022. This represents a 5% annual increase and comes after the company posted a sharp rise in net profit for the year.
March 6, 2023Iran says it’s discovered what could be the world’s second-largest lithium deposit
Iran says it has discovered a massive deposit of lithium in one of its western provinces. The ministry believes the deposit holds 8.5 million tons of lithium, which, if true, would make the deposit the second-largest known lithium reserve in the world after Chile. After several years of international sanctions, Iran’s economy would greatly benefit from the export of this valuable resource.
March 6, 2023Oman set to award over $700 million contracts for solar energy projects
Oman Power and Water Procurement Company is awarding solar energy projects worth $777 million to international investors after securing approvals from the Authority for Public Services Regulation. The Manah 1 and 2 projects, which will jointly produce a total of 1,000MW, is set to come up on a 15 million sq m area within the Governorate of A’Dakhiliyah. About 2 million solar panels will be installed in these two stations, which will be the largest solar panel project for Oman.
March 6, 2023Houston summit brings OPEC officials and heads of US oil companies together to discuss energy issues
Executives from major U.S. oil companies and top OPEC officials held private meetings on the sidelines of a Houston conference to discuss energy issues, continuing a tradition that began nearly five years ago when the two sides were at odds. Both parties are enjoying strong global demand for oil and gas and have posted record profits over the past year.
March 6, 2023Russian crude oil heads to UAE as sanctions divert flows
The United Arab Emirates has been taking more cargoes of Russian crude oil, an example of how Western sanctions on Russia have adjusted traditional energy trade flows. Russia has been selling both crude and refined products at discounted prices after international sanctions over its invasion of Ukraine. The development also highlights growing cooperation between Russia and top Gulf oil producers, such as Saudi Arabia and the UAE.
March 5, 2023Japan’s JBIC to provide $103mln green loan for Saudi-Egypt interconnection project
The Japan Bank for International Cooperation will provide a “green” loan of $103 million to the Saudi Electricity Company for an electricity interconnection project that will link Saudi Arabia and Egypt. The interconnection project comprises a 3,000 MW high-voltage direct current system with 1,350 km of overhead power lines and 22 km of submarine cables to connect northwestern Saudi Arabia and Egypt.
March 5, 2023ADNOC Raises $2.5 Billion in Gas IPO
Abu Dhabi National Oil Co (ADNOC) has netted $2.5 billion from the initial public offering of its subsidiary ADNOC Gas. This biggest-ever issue in Abu Dhabi was oversubscribed more than 50 times as investors placed offers worth $124 billion for a 5% stake in the United Arab Emirates-based firm.
March 5, 2023QatarEnergy strikes oil again in Namibia
QatarEnergy announced a light oil discovery in the Jonker-1X deep-water exploration well, which marks the company’s third recent discovery offshore Namibia. QatarEnergy announced two similar discoveries in February 2022 in the Graff-1 well and in the Venus-1X prospect, both located in the Orange Basin offshore Namibia.
March 4, 2023Saudi Arabia’s ACWA Power to build two solar plants in Uzbekistan
According to Uzbekistan’s Energy Ministry, Saudi Arabia’s ACWA Power will build two solar plants in Uzbekistan with a total capacity of 1.4 gigawatts and three power storage systems with a combined capacity of 1.2 gigawatts. The two parties have signed investment agreements on the project worth $2.5 billion and deals under which Uzbekistan will buy power from the facilities. Uzbekistan plans to produce more than a third of its energy from renewable sources by 2030.
March 4, 2023Eni agrees on energy deal with UAE’s ADNOC as Italy rebuilds relationship
Italian oil and gas group Eni has said it will cooperate with Abu Dhabi National Oil Co (ADNOC) on energy transition projects. State-controlled Eni said that together with ADNOC it will explore opportunities in renewable energy, blue and green hydrogen and carbon dioxide capture and storage. They will also work on reducing greenhouse gas and methane gas emissions, as well as routine gas flaring. The two countries are working to rebuild ties after tensions from 2021.
March 4, 2023Iran Says Questions About Suspected Highly Enriched Uranium Are Resolved
The head of Iran’s Atomic Energy Organization, Mohammad Eslami, has claimed that “ambiguities have been resolved” over the presence of the particles at its Fordow enrichment plant. However, the International Atomic Energy Agency’s director has also stated that more work needs to be done. The International Atomic Energy Agency reported a week before that inspectors detected uranium particles enriched to 84% purity, near weapons-grade level, in Iran.
March 3, 2023Adnoc Gas Draws $124 Billion of Orders for $2.5 Billion IPO
Abu Dhabi’s Adnoc Gas raised $2.5 billion from its initial public offering. Investors placed $124 billion of orders for a 5% stake in Adnoc Gas, an oversubscription level of more than 50 times.
March 2, 2023TotalEnergies expands its upstream portfolio in UAE with several offshore fields
TotalEnergies has inked a deal with CEPSA to acquire its upstream assets in the United Arab Emirates, which will enable the major oil company to add multiple offshore fields to its asset portfolio. The company will acquire a 20% participating interest in the Satah Al Razboot, Umm Lulu, Bin Nasher, and Al Bateel offshore concession.
March 2, 2023SABIC announces strategic project to manufacture catalysts
SABIC announced a strategic project to manufacture catalysts with the aim of transforming Saudi Arabia into a manufacturing hub for specialized materials. The project will contribute to industrial advancements as envisioned in Saudi Vision 2030, including improving competitiveness of the energy sector, developing industries associated with oil and gas, and raising the level of local content in the area.
March 1, 2023$8.5 Billion Financing Agreement for Green Hydrogen Project in Saudi’s Neom
Acwa Power has closed a financing agreement worth $8.5 billion for a sizable green hydrogen project that will be built at Saudi Arabia’s futuristic city Neom. The project’s funding will come from a combination of long-term debt and equity.
March 1, 2023ACWA Power signs MoU with Pupuk Indonesia for large-scale green hydrogen project
ACWA Power and Indonesia’s state-owned fertilizer producer Pupuk Indonesia have signed a Memorandum of Understanding to develop a large-scale green hydrogen project. Pupuk Indonesia PT is the largest fertilizer manufacturer in Southeast Asia with a total production capacity of 12.71 million tons per year.
February 28, 2023Arab Crude Oil Reaches 94.4% Of Japan’s Imports In January
The total crude oil Japan imported in January amounted to 84.423 million barrels with 94.4% of that amount coming from the five GCC countries of Saudi Arabia, UAE, Kuwait, Qatar and Oman, according to data from the Agency for Natural Resources and Energy of the Japanese Ministry of Economy, Trade and Industry.
February 28, 2023IAEA report pressing Iran on uranium enrichment to near bomb-grade
The International Atomic Energy Agency is in discussions with Iran on the origin of uranium particles enriched up to 83.7% purity, very close to weapons grade, at its Fordow enrichment plant. Iran has denied ever having sought nuclear weapons and states that it only wants to master nuclear technology for civil uses.
February 27, 2023IPO final session highlights detailed offerings of Abraj Energy’s shares
As part of its IPO introductory sessions tour, Abraj Energy, a subsidiary of OQ, organized its last introductory meeting, in cooperation with the branch of the Oman Chamber of Commerce and Industry in Dhofar Governorate. Eng. Saif Al Hamhami, Chief Executive Officer of Abraj Energy Services said that by listing its shares for the public offering, the company aims to build a strategic partnership with local, regional, and international investors.
February 27, 2023Madayn Signs Agreement With Solar Wadi For 100-MW Solar PV Plant In Suhar Industrial City, Oman
The Public Establishment for Industrial Estates (Madayn) signed an agreement with an Oman renewable energy company, Solar Wadi, for the allocation of land in Suhar Industrial City for the construction of a 100-MW solar PV plant. The total investment in Suhar Industrial City is RO 2.3 billion. There are more than 360 industrial projects on an area of 29 million square metres.
February 27, 2023Saudi Arabia Moves Forward With Bids For Nuclear Plant
Saudi Arabia is progressing with its plans to build its first nuclear power plant and has received a number of bids. The Saudi Ministry of Finance’s 2023 budget statement published on February 15 notes that bids to build the plant were received last December. Saudi Arabia has been interested in nuclear energy for decades and recently, it has been considering developing nuclear energy for peaceful purposes. This is also in line with the kingdom’s strategy to diversify its energy mix and in doing so, reduce its dependence on oil.
February 26, 2023Oman’s Abraj Energy Forms Strategic Partnership To Explore Oil In Kuwait
Oman’s oil and gas drilling services firm, Abraj Energy, is set to explore oil in Kuwait. It has signed an agreement with the Kuwaiti national oil company, Kuwait Gulf Oil Co., and the Saudi Arabian-based chemical plant, Saudi Chevron Co. Abraj Energy will explore ways to extract oil in Kuwait. The agreement aims to strengthen and expand Abraj Energy’s operations in the Middle East and North Africa region.
February 25, 2023Baynouna Solar Energy Station Opens
The Baynouna Solar Park, the largest clean energy project in Jordan, was inaugurated in a ceremony. The 200-megawatt station was carried out by Baynouna Solar Energy Company, a joint venture between the UAE’s energy company, Masdar, and Finnish investment and asset management group Taaleri. This project is said to have strengthened the strategic relationship between the UAE and Jordan and support Jordan’s goal of receiving 50% of its electricity from renewable sources by 2030.
February 24, 2023Iraq’s January Output Hits 10-Month Low
Iraq’s crude output fell by around 100,000 barrels per day in January to 4.29 million b/d, according to Energy Intelligence estimates, its lowest in 10 months and 140,000 b/d below its Opec production target, due to weather-related loading disruptions at Basrah and refinery turnarounds. The weather disruptions caused a build in Basrah crude stocks which forced the oil ministry to cut production.
February 23, 2023Adnoc Gas $2 billion IPO covered in hours
Within hours after the initial public offering kicked off, Adnoc Gas’ initial public offering order book was fully covered. Abu Dhabi National Oil Co. sold a 4% stake in Adnoc Gas, offering 3 billion shares between Dh2.25 and Dh2.43. The company will be valued at $50.8 billion, making it one of the world’s largest listed gas firms.
February 23, 2023Japanese corporation to explore role in Oman green ammonia project
Japanese heavy engineering manufacturer IHI Corporation and Indian green energy developer ACME Group have signed a Memorandum of Understanding. Backed by India, Japan could potentially be participating in a green ammonia project currently under development in Oman. The cooperation between Japan and Oman would build on a broader pledge by the two countries to cooperate across the green energy value chain.
February 22, 2023Iraq Partners With UAE And Chinese Firms To Develop Six Oil And Gas Fields
Iraq has signed deals with two Chinese companies and UAE-based Crescent Petroleum for the development of six oil and gas fields. This is an effort by the country to cut gas imports by improving domestic production of oil and gas. Under the 20-year contract, Crescent will develop the Gilabat-Qumar and Khashim fields in Diyala. The fields are expected to initially produce 250 million standard cubic feet per day of natural gas. Crescent Petroleum exploration and production executive director Abdulla Al Qadi said, “Gas and oil supplies from these operations will help improve services and local economic development for the people of Iraq.” This comes in light of Iraq signing two other contracts with China’s Geo-Jade for the exploration and development rights to the Huwaiza oilfield in the south, and the Naft Khana, northeast of Baghdad.
February 22, 2023Iran Ready To Build Oil Refineries For Turkmenistan: Deputy Minister
Iran’s Deputy Minister of Oil for Engineering, Research and Technology Vahidreza Zeydifard has said that Tehran is ready to build oil refineries in the Central Asian country. Over 70% of the equipment used to build the refineries is to come from Iran itself and will be exported to Turkmenistan. There have been positive dynamics in the growth of trade between the two countries. In June 2022, the Iranian and Turkmen presidents signed a series of nine Memorandums of Understanding ranging from finance to energy.
February 22, 2023Saudi Arabia’s Oil Revenues Reach $326bn IIn 2022, Highest In 10 Years
According to local reports released on 21 February, Saudi Arabia achieved its highest oil revenues in 2022 in the past 10 years, amounting to $326 billion. However, even though it reached its highest revenue, Bloomberg reported that the kingdom’s monthly oil revenues decreased in the second half of the year. Saudi Arabia’s oil exports amount to 70% of its total exports that year.
February 21, 2023TotalEnergies becomes QatarEnergy’s first partner on the North Field South LNG project
TotalEnergies, already involved in the North Field East liquefied natural gas (LNG) project, has been chosen as the first international partner for the North Field South LNG project. Under the new agreement with QatarEnergy, TotalEnergies will gain a 9.375% stake in the North Field South project. TotalEnergies has taken stake with what is claimed to be the world’s largest LNG project in terms of capacity.
February 21, 2023UAE’s Crescent Petroleum signs agreements to develop Iraqi oil and gas fields
Sharjah energy company Crescent Petroleum has signed three 20-year agreements to develop oil and gas fields in Iraq, as the country seeks international collaboration to boost its energy supply. The company will produce gas in two oil and gas blocks in the northern Diyala province and explore a third block in Basra. These operations are expected to increase local economic development within Iraq.
February 20, 2023Saudi energy minister says OPEC+ is flexible enough to change decisions whenever required
At a media forum in Riyadh, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman stated that the OPEC+ alliance is flexible enough to change decisions whenever it is required.
February 20, 2023Energy Giant Saudi Aramco Signs Agreement With droppGroup to Build Web3 Tech
Saudi Arabian Oil Group (Saudi Aramco) has signed a memorandum of understanding with droppGroup to explore co-developing a range of Web3 technologies. The Web3, the third generation of the internet driven by blockchain technology, applications will be aimed at helping Aramco’s employees, including potential on-boarding, training ecosystems, as well as a tokenized network and rewards program.
February 20, 2023Omani oil and gas sector to witness growth over next 5 years
According to a report, Oman’s oil and gas sector will witness growth with a compound annual growth rate of more than 5 percent during the period from 2023 to 2028. Factors such as supportive government policies and efforts to develop the sector along with future projects are expected to drive the growth of the market.
February 19, 2023Executive Director of IEA warns of energy supply shortage next winter
Executive Director of the International Energy Agency (IEA) Fatih Birol has warned of possible energy shortages next winter. Birol has said an additional 23 billion cubic metres of LNG is expected this year and that China would likely swallow 80 percent of the extra gas. He has also stated that European households and firms need to continue efforts to reduce gas usage, renewable energy outputs need to expand faster, and countries should reconsider their plans to phase out nuclear energy.
February 18, 2023US and Canada ready to work with Iraq to tackle gas flare
According to the US and Canada ambassadors, the two countries are willing to help Iraq by investing in gas capture technology in order to boost power production and reduce the adverse health implications of the emissions. Iraq is the second-highest emitter of gas flares in the world, flaring around 16 billion cubic meters of gas on a daily basis. If captured, the gas could potentially power around 3 million homes.
February 18, 2023Iraqi Premier and European Commission address European investments in Iraq
Iraqi Prime Minister, Muhammed Shia Al-Sudani, met with European Commission President, Ursula von der Leyen, on the sidelines of the 59th Munich Security Conference. The President of the European Commission expressed the EU’s cooperation and determination to forge productive partnerships in energy, particularly in the renewable energy sector.
February 17, 2023ExxonMobil Sells Iraq Stake To Pertamina
American giant ExxonMobil has confirmed that “ExxonMobil Iraq Limited reached an agreement with Pertamina to sell 10% of EMIL’s interest in West Qurna I.” Exxon has been seeking to quit the field and Iraq entirely since January 2021, but Baghdad blocked its planned sale to Chinese firms, prompting Exxon to file for arbitration.
February 16, 2023Iraqi Ministry of Electricity and GE sign Principles of Cooperation
GE has signed Principles of Cooperation in Energy with the Ministry of Electricity, Republic of Iraq. The initiative aims to explore opportunities to increase Iraq’s output through a variety of different methods, such as establishing new power plants, expanding capacity at existing facilities, and driving the decarbonization of the country’s energy sector. The overall goal is to help “address the current electricity shortfall across Iraq and meet the growing power needs of the people to accelerate the nation’s sustainable economic development.”
February 16, 2023Saudi Energy Minister says OPEC+ deal will continue until end of year
Saudi Energy Minister Prince Abdulaziz bin Salman has stated that the current OPEC+ deal on oil output would be locked in until the end of the year, adding that he has remained cautious about Chinese demand forecasts. OPEC+ agreed in October 2022 to cut oil production targets by 2 million barrels per day until the end of 2023.
February 15, 2023Kuwait invites bids to power oil and gas facilities with renewable energy
According to a report, the Kuwait National Petroleum Co and the Kuwait Integrated Petroleum Industries Co have invited consultancy bids from five Western firms to study the use of renewable energy. The two companies want to follow a trend by most operators in the oil sector to switch to clean fuel, mainly solar and wind energy.
February 15, 2023RWE receives first LNG cargo at Brunsbuettel port
Utility RWE’s RWEG.DE trading arm received the first cargo of liquefied natural gas under a deal with Abu Dhabi National Oil Company as part of German efforts to ensure supply after cuts to Russian gas exports. ADNOC and RWE agreed to a deal last year for several years of LNG supplies to Germany starting from 2023.
February 14, 2023Vale acquires Oman’s OQ 30% stake in Vale Oman
Brazilian mining company Vale has bought back a 30% stake in Vale Oman from Oman’s state energy company OQ. Vale Oman has become a 100% foreign company after the acquisition.
February 13, 2023China’s CNPC set to seal Qatari LNG deal
China National Petroleum Corp is close to finalizing a deal to buy liquefied natural gas from QatarEnergy’s North Field expansion project for over 30 years. If sealed, this would be the second such deal between major LNG exporter Qatar and China, the world’s second-highest LNG buyer, as Beijing looks to beef up gas supply and diversify its sources in a drive to replace coal and cut carbon emissions.
February 12, 2023OPEC Secretary General shares expectation that oil demand to reach pre-pandemic levels this year
OPEC Secretary General Haitham Al Ghais has stated that the group expects oil demand to exceed pre-pandemic levels this year, reaching almost 102 million barrels a day. He also stated that demand is projected to further rise to 110 million barrels per day by 2025.
February 12, 2023Abu Dhabi’s ADNOC Drilling net profit rises 33% in 2022
Abu Dhabi’s ADNOC Drilling reported a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses. The company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs. The company also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion, representing year-on-year growth of up to 20%, and is expecting record net profit in 2023 of $850 million to $1 billion in the same period.
February 11, 2023Oman Oil-Drilling IPO Draws PIF as Anchor Investor
Oman’s OQ SAOC plans to raise as much as $244 million from the initial public offering of its oil-drilling unit and has brought in Saudi Arabia’s wealth fund as an anchor investor. Three subsidiaries of state-owned energy firm OQ are selling 49% of Abraj Energy Services SAOC — or just over 377 million shares. Oman is joining the Gulf’s listing boom, which has mainly been confined to Saudi Arabia and the United Arab Emirates.
February 10, 2023Germany in advanced talks with Oman for natural gas supplies
Germany has been in talks with Oman to sign a long-term agreement that would last at least 10 years. Two sources with direct knowledge of the matter said the deal with Oman would be for between 0.5-1 million tonnes per annum (mtpa), with one specifying around 0.8 mtpa over 10 years. This comes in light of Berlin searching for an alternative to Russian fuel supplies. As a result of the war in Ukraine, Europe has been trying to replace all Russian energy imports by mid-2024.
February 9, 2023Adnoc Natural Gas, LNG IPO Seen as ‘Highly Feasible’ Amid Broader Expansion Plans
Abu Dhabi National Oil Co. (Adnoc) is advancing plans to launch an initial public offering (IPO) that would combine the United Arab Emirates’ (UAE) largest natural gas companies as part of a broader plan aimed at attracting more foreign investors and funding for long-term projects. The new company would bring Adnoc’s liquefied natural gas and gas processing units together to form Adnoc Gas. The newly formed company would have a production capacity of 10 Bcf/d across eight onshore and offshore sites and a pipeline network of more than 2,020 miles, making it one of the largest gas processing and marketing companies in the Middle East.
February 8, 2023Dana Gas reports 53% rise in adjusted net profit for 2022
Middle East’s private natural gas company, Dana Gas, reported an adjusted net profit of Dhs718m ($196m) for the full year of 2022, on the back of high energy prices, and the group’s adjusted net profit last year grew 53% from Dhs469m ($128m) earned in 2021. The CEO stated that the results are a testament to Dana Gas’ ability to control costs and maintain production levels amid a prolonged environment of high energy prices.
February 8, 2023Iraq awards 6 oil concessions to UAE and Chinese firms
As part of the fifth licensing round for Iraq, Sharjah-based Crescent Petroleum, the Middle East’s largest private upstream oil and gas company, was awarded three concessions covering the production and development of oil and gas fields, and three concessions were awarded to the Chinese Geo-Jade Petroleum Company. Three of the fields are located in Basra in South Iraq, while the other three are in the Northeastern Diyala Governorate.
February 7, 2023Saudi Wealth Fund Raises $5.5 Billion From Green Bond Sale
Saudi Arabia’s sovereign wealth fund raised $5.5 billion from a three-part green bond sale, the second debt offering by the Public Investment Fund within four months. The PIF secured more than $32 billion of orders for the bonds that have maturities of 7, 12 and 30 years. The PIF plans to use the proceeds for general corporate purposes and to finance, refinance and invest in green projects.
February 7, 2023SABIC plans $1.3bn investments in second stage of energy transition
Saudi Basic Industries Corp. is set to invest $1.3 billion in the second phase of its energy transition. Speaking during a panel discussion at the 44th International Association of Energy Economics Conference, a SABIC official revealed that in the first phase of its transition worth $1 billion, the company recorded a 10 percent drop in carbon emissions.
February 7, 2023Oman LNG inks 4-year deal to supply China’s Unipec with 1 mln tonnes of LNG a year
Oman LNG has agreed to supply China’s Unipec with around 1 million metric tonnes of liquefied natural gas per year for four years starting in 2025. This is the first contract that Oman LNG has signed with a Chinese firm, with the contract being a step that “promotes the company’s efforts to reach new markets.”
February 6, 2023Turkey’s Ceyhan Oil terminal and Iraq KRG Pipeline halted after quake
A major earthquake that struck Turkey and Syria has halted operations at Turkey’s oil terminal in Ceyhan and flows via Iraq’s northern oil export pipeline from Kirkuk. Iraq’s Kurdistan Regional Government, which halted flows through the pipeline which runs from Iraq’s northern Kirkuk fields to Ceyhan, had been pumping 400,000 barrels per day (bpd) and Iraq’s federal government was pumping 75,000 bpd through the pipeline.
February 6, 2023Iran Begins Exploitation of ‘Biggest’ Uranium Mine
Iran has started the exploitation phase in the central province of Yazd for what is believed to be the biggest uranium mine. After extraction, the uranium from this mine will apparently be sent to Isfahan for purification and for making nuclear fuel. According to Mohammed Eslami, head of the Atomic Energy Organisation of Iran (AEOI), “expanding nuclear power production and application of radiation are among the major goals pursued by the AEOI as part of the comprehensive strategic plan for the nuclear industry”.
February 6, 2023Alfanar sign $1.5bn deal with Daewoo E&C during iktva 2023
During Saudi Aramco’s iktva 2023 Forum and Exhibition, Amer Al-Ajmi, executive vice president of Alfanar, and Sungmin Yang, senior vice president of Daewoo, signed a $1.5 billion agreement aimed towards joint cooperation in future projects for the oil, gas and petrochemicals sectors. Through this agreement, Alfanar will work on transferring and localizing expertise in the engineering construction field, and exchanging the expertise of advanced technologies used in design, procurement and project execution for the oil, gas and petrochemicals sectors.
February 5, 2023GE, Samsung C&T, EDF in race for 7.2GW Saudi power projects
Saudi Power Procurement Company has announced that 21 major developer/developer consortiums, including global energy leader GE, French utility major EDF, Samsung and India’s energy conglomerate NTPC, have prequalified for the development of four combined-cycle electrical power generation projects with provision for Carbon Capture and Sequestration readiness. Each of the projects boast a capacity of 1,800 MW, and will be located in either Taiba or Qassim City within the Kingdom.
February 5, 2023Total refinery products in Oman rises by 4%
According to the latest data issued by the National Centre for Statistics and Information, the total refinery products in the Sultanate of Oman increased by 4% until the end of December 2022 compared to the same period in 2021. While Oman’s production of diesel and benzene decreased, the production of petrol, standard grade petrol, and polypropylene increased.
February 4, 2023Iran signs $900 milllion deal with local firm to develop Kish offshore gas field
Iran signed a $900 million contract with Iranian Offshore Engineering and Construction Co (IOEC) to develop the first phase of its Kish offshore gas field in the Gulf. Under the contract, IOEC will launch production of 28 million cubic meters per day of gas in 14 months, which will be sent to installations in Asalouyeh on Iran’s Gulf coast via a 210 km undersea pipeline.
February 4, 2023Saudi energy minister warns sanctions could result in energy shortages
During an industry conference in Riyadh, Saudi Energy Minister Prince Abdulaziz bin Salman warned that sanctions and underinvestment in the energy sector could result in a shortage of energy supplies. This was stated during a time when the European Union has imposed a series of sanctions against Russia, reducing Russian energy exports, and other Western powers have also imposed measures as they seek to further limit Moscow’s ability to fund its war in Ukraine.
February 3, 2023Aramco Sets Out Project Plans for the Next Three Years
Saudi Aramco expects to award contracts for some 90 projects over the next three years as it presses ahead with major expansions of its upstream oil and gas capacity. Aramco is apparently ramping up investment again after a slow period during the Covid-19 pandemic and the accompanying economic slowdown.
February 3, 2023Saudi Arabia Plans Trillion Riyal worth of Clean Power Investments
Saudi Arabia plans to invest more than SR1 trillion ($270bn) into its power sector by 2030 in order to boost clean energy generation capacity and expand and modernize its transmission and distribution networks. The kingdom intends for the powergen mix to be split 50:50 between gas and renewables by 2030, entailing the development of 58.7GW of renewable capacity. This will displace more than 1mn b/d of oil from the power and water sector, freeing volumes up to be exported to global markets.
February 1, 2023Basra Oil Company head expects Qatar to take 20-25% stake in TotalEnergies’ Iraq project
The head of Iraq’s Basra Oil Company (BOC) expects Qatar to acquire a 20-25% stake in TotalEnergies’ $27 billion cluster of energy projects in the country, with the Baghdad government aiming to hold around 40%. Although talks are still ongoing, the major investment from a Gulf State is considered to be a step towards countering Iranian influence within Iraq.
February 1, 2023Gas to Reach Sea of Oman Coasts
The third largest gas project in the Sistan-Baluchestan Province of Oman will become operational soon with the completion of the 290 km Iranshahr-Chabahar-Konarak gas pipeline. The project will supply gas to the southern regions of the province and the coasts alongside the Sea of Oman. It is considered that this project, in addition to providing the energy needed by petrochemical units and power plants in the region, will help with the sustainable development in the southeast of Iran, and improve economic, industrial and tourism activities in the underprivileged province.
January 31, 2023Saudi energy minister invites oil companies to move their headquarters to Dhahran
Saudi Arabia’s Energy Minister Prince Abdulaziz Bin Salman has called on the global oil companies to move their headquarters to Dhahran in the Eastern Province of Saudi Arabia and home to Saudi Aramco. Prince Abdulaziz made these remarks during his speech at the seventh edition Aramco’s iktva exhibition 2023.
January 30, 2023OPEC+ seen sticking with oil output policy at February 1st meeting
An OPEC+ panel is likely to recommend keeping the oil producer group’s current output policy unchanged when it meets this week. OPEC+ agreed in October to cut its production target by 2 million barrels per day, about 2% of world demand, from November until the end of 2023.
January 30, 2023Turkey and Oman sign deal to purchase 1.4B cubic meters of gas per year
The Turkish energy minister has announced that Turkey is signing a new gas deal with Oman, a move to diversify Ankara’s gas supplies. Turkey also entered similar deals with Bulgaria, North Macedonia, Romania and Moldova. Turkey is looking to become a gas trade center at a time when Europe suffers from gas supply problems.
January 30, 2023Saudi Arabia will invest $266 billion in clean energy
According to Energy Minister Prince Abdulaziz bin Salman, Saudi Arabia will invest one trillion riyals to generate “cleaner energy” and add transport lines and distribution networks. The eventual goal is to export energy to the world and produce clean hydrogen. He also stated that Saudi Arabia is determined to become the leading exporter of hydrogen.
January 30, 2023Saudi Crown Prince and Putin discuss OPEC+ cooperation for oil market stability
Saudi Arabia’s Crown Prince Mohammed bin Salman discussed in a phone call with Russian President Vladimir Putin cooperation within the OPEC+ group countries to maintain the stability of the oil market. The Crown Prince and Putin also discussed further development of bilateral cooperation in the political, trade, economic and energy fields. Although the current oil prices in the market are stable, there remains a factor of uncertainty when it comes to how supply will be impacted with the recent Western sanctions on Russia’s oil industry imposed over Moscow’s war on Ukraine, as well as the price caps introduced on Russian products in December.
January 30, 2023Iranian gas supplies to Iraq stop
The Iraqi Minister of Electricity, Ziyad Ali Fadel, announced that Iraq’s imports of Iranian gas completely stopped due to maintenance works in the gas pipeline inside Iran. The current rate of electric power production in Iraq is only 15,000 megawatts out of 24,000 megawatts, due to Iran’s halt in gas supplies to Iraqi power plants. The Iraqi government is currently working to tackle the problem of gas imports from Iran, which are 40 million cubic meters per day, in cooperation with international companies to invest in Iraqi gas.
January 29, 2023Iraq Militia states that Basrah-Aqaba oil pipeline ‘will never be’
Iraqi aspirations to move ahead with a long-planned crude pipeline from Basrah to Aqaba in Jordan have been dealt a major blow after Ali al-Asadi, head of Iraq’s Harakat Hezbollah al-Nujaba (HaN), said the project will “never” happen. Al-Asadi issued the statement after Iraqi lawmaker Mustafa Jabbar Sanad revealed that Jordanian officials had met with senior Iraqi Shia, Sunni, and Kurdish officials and agreed on the pipeline’s implementation.
January 28, 2023Tanzania and UAE firm sign petroleum facility deal
The Tanzania government signed a Memorandum of Understanding with a United Arab Emirates firm for the construction of petroleum receiving and storage infrastructures. The deal was signed by the Ministry of Energy and representatives of the UAE-based Emirates National Oil Company Group. The decision aims at making Tanzania a petroleum hub in East and Central Africa as well as sustaining the country’s fuel demands for up to six months.
January 27, 2023Aramco invests $14 million into drone business
Wa’ed Ventures, the venture capital arm of Aramco, has invested $14 million into Japanese drone provider Terra Drone Corporation. The financing involves the establishment of a new subsidiary in the Kingdom of Saudi Arabia, Terra Drone Arabia, to conduct drone survey, inspection and unmanned traffic management across various projects. This support is in line with the Saudi government’s “Vision 2030” reform plan, which seeks to stimulate economic transformation in the country by reducing its dependence on hydrocarbons.
January 26, 2023Qatar’s energy giant joins Lebanon gas exploration group
Qatar’s state-owned oil and gas company will participate in oil and gas exploration of two offshore blocks off the coast of Lebanon, joining France’s TotalEnergies and Italy’s Eni. Lebanon told TotalEnergies and Eni to start gas exploration after an agreement with Israel regarding the maritime territory. QatarEnergy’s participation in the consortium also demonstrates Qatar’s continued interest in helping Lebanon to secure its own gas supply and alleviate Lebanon’s current economic crisis.
January 26, 2023Qatar in talks to join TotalEnergies’ $27 billion Iraqi energy project
Qatar is in talks to acquire a stake from French company TotalEnergies’ $27 billion cluster of energy projects in Iraq as Baghdad hopes to stem efforts by Western energy companies to exit the country. QatarEnergy is looking to acquire a stake of around 30% in the project. A major investment by a Gulf state would mark an important win for Iraqi Prime Minister Mohammed al-Sudani, who took office last October following more than a year of political turmoil, and would also be considered a step towards countering Iranian influence.
January 25, 2023Oman allocates 250 km2 for solar and wind farms in Duqm SEZ
Duqm is expected to become the biggest contributor to Oman’s sustainability goals, allocating 250sq km for solar and wind farms that will then produce green hydrogen and green ammonia for local use and for export. Two licenses have already been granted; one of which is at the stage of implementing a 300 MW plant while the other is at the stage of detailed studies for a much larger capacity.
January 24, 2023Oman’s OQ will inaugurate Bisat oil field on January 26
The Bisat oil field in Oman’s Block 60 concession area – which is operated by the sultanate’s global integrated energy company OQ – will be inaugurated. The Bisat oil field, located at Abu Tubul, is one of the most important projects of OQ Group in the upstream sector.
January 23, 2023Iran raised to 4th place among top OPEC producers in December by the IEA
The International Energy Agency (IEA) in its latest “Oil Market Report” put Iran’s oil production in December at 2.72 million barrels per day, indicating that the country has risen to the fourth place among OPEC’s top oil producers. Iran’s oil exports have reached new highs in the last two months of 2022 and are making a strong start to 2023 despite U.S. sanctions. Iran has been ramping up its oil production and exports over the past year as the country has been implementing new strategies to overcome U.S. sanctions.
January 23, 2023UAE plans to reach 14GW of renewable energy by 2030
The UAE plans to reach 14 gigawatts (GW) of clean energy by 2030, while continuing to supply oil and gas. Climate Minister Mariam Almheiri also claims that by 2050, 50% of the UAE’s energy supply will come from clean and renewable energy sources.
January 23, 2023TotalEnergies starts production from Oman onshore gas field
French firm TotalEnergies and its partners have started gas production from the Mabrouk North-East field in onshore Block 10 in Oman. TotalEnergies also signed a long-term LNG purchase contract with Oman LNG, whereby the French firm will purchase 0.8 million metric tonnes of LNG per year. TotalEnergies has said that the contract, which has a term of ten years starting from 2025, would contribute to its LNG integrated portfolio and help in addressing the European and Asian markets.
January 22, 2023Oman energy firm OQ to sell 49% stake in oil-drilling unit IPO
Oman energy firm, OQ SAOC, plans to sell up to 49% of its oil drilling unit, Abraj Energy Services SAOC, in an initial public offering, kick-starting the sultanate’s push to join a listings boom sweeping through the Middle East. The Oman Investment Authority has said that it plans to raise more than $1.3 billion by exiting its investments in eight sectors this year. Oman is joining its energy-rich Gulf neighbors in selling assets to fund the diversification of their economies and open up their stock markets to more international investors.
January 22, 2023Iran Oil Exports To China Surge
The Persian Gulf country’s oil exports climbed to about 1.3 million barrels a day in November, and last month held near the highest in four years. Much of it appears to be going to China, and the surge is offering solace to both Tehran and a global market fretting over the prospect of sanctions squeezing Russian supply.
January 21, 2023Qatar Development Bank launches ‘green financing’ for environment-friendly projects
Qatar Development Bank launched the Clean Energy and Eco-Friendly Financing programme, also known as Green Financing for Qatar-based Small and Medium Enterprises. The Green Financing programme will finance 85% of the cost for businesses adding technological solutions or environment-friendly operations and 80% of the cost for companies producing green products with a positive and sustainable environmental impact. The program is considered to be part of the bank’s strategy to support environmentally friendly projects in line with the country’s national vision for building a sustainable knowledge-based economy.
January 20, 2023ACWA Power plans to develop Uzkebistan’s first hydrogen project
ACWA Power has signed extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic of Uzbekistan with the country’s Ministry of Energy and Uzkimyosanoat, a state-owned chemical company. Aside from these green hydrogen and green ammonia projects, ACWA Power also has five existing projects in Uzbekistan, and Uzbekistan is the second largest in terms of value for the company after its home market of Saudi Arabia.
January 20, 2023Saudi Arabia will continue talks with Russia to stabilize oil prices
According to the kingdom’s foreign minister, Saudi Arabia is set to continue talks with Russia over determining avenues to stabilize prices for crude oil. Due to western sanctions placed on Russia over its military operation in Ukraine, Liquified Natural Gas prices have vastly increased as the EU has deviated from Moscow as a primary oil supplier in search of new ones.
January 19, 2023IEA chief expects tighter energy markets in 2023
International Energy Agency (IEA) head Fatih Birol states that energy markets could be tighter in 2023, adding that he hopes prices would not rise further in order to ease the pressure on energy-importing developing countries. Birol elaborates that even though currently there was no tightness in the market, there were uncertainties to watch out for, namely Chinese demand and Russian supply. Two Gulf OPEC+ producers, UAE energy minister Suhail al-Mazrouei and Saudi Aramco chief Amin Nasser have said that they see oil markets as balanced.
January 18, 2023Saudi Aramco increases access to North America’s largest oil refinery as it launches new US subsidiary
Saudi Aramco’s global trading arm has bought US firm Motiva Trading and has also launched a Texas-based subsidiary – Aramco Trading Americas. The new entity will be the sole supplier and ‘offtaker’ of Motiva Enterprises, the owner of North America’s largest oil refinery with a crude capacity of 630,000 barrels a day of consumer and commercial grade fuels and base oils.
January 18, 2023Germany Holds Talks with Iraq for Potential Gas Imports to Help Wean Off Russian Energy
According to German Chancellor Olaf Scholz, Germany is engaging in bilateral talks with Iraq over potential gas imports to help Berlin diversify its energy sources. The latest meeting between the German chancellor and the Iraqi government is among the recent bilateral talks between Berlin and other countries, including the US, UAE, and Qatar, to secure alternative gas supplies following Moscow’s invasion of Ukraine.
January 18, 2023Oman LNG signs deals with TotalEnergies and Thailand’s PTT
Oman LNG has agreed to supply up to 1.6 million metric tonnes of liquefied natural gas to France’s TotalEnergies and Thai state-owned firm PTT Pcl. TotalEnergies and PTT will each receive 800,000 tonnes of LNG per year, with the French firm commencing a 10-year deal in 2025 and the Thai company taking supply for nine years beginning in 2026.
January 18, 2023Masdar partners with SOCAR to develop 4 GW renewable energy projects
Masdar has signed joint development agreements with the State Oil Company of the Republic of Azerbaijan (SOCAR) for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects, with a total combined capacity of 4 GW. The agreements were signed on the sidelines of Abu Dhabi Sustainability Week, the global platform for accelerating sustainable development hosted by Masdar. Azerbaijan is pursuing a national target of producing 30% of its domestic power needs from renewable energy sources by 2030, as the nation looks to diversify its economy and reduce greenhouse gas emissions.
January 18, 2023Zambia to develop solar projects worth $2 billion with UAE as country faces rolling blackouts
Zambia’s state-owned power company Zesco signed an agreement with the United Arab Emirates’ renewable energy company Masdar to develop solar projects worth $2 billion. Once completed, the projects will result in an additional 2,000 megawatts of electricity in the country within the next few years. The project will increase the country’s generation base by more than half.
January 17, 2023India eyes UAE’s cooperation in developing green hydrogen industry
India’s Power, New & Renewable Energy Minister R.K. Singh visited the UAE and signed a memorandum on green hydrogen development and investment with his Emirati counterpart, Energy and Infrastructure Minister Suhail Al-Mazrouei. The agreement with the UAE is seen as a step forward in implementing India’s plan to reduce India’s dependence on fossil fuels and cut import costs by 1 trillion rupees.
January 17, 2023Oil Industry Workers Stage New Round Of Strikes In Iran
Amid natural gas shortage in Iran due to the government inability to invest in production, a new wave of strikes by oil and gas industry workers has kicked off in the country with gatherings in Ahvaz, Asaluyeh, Dehloran, Shiraz, Ilam, Bandar Lengeh and Aghajari in the south and southwest of Iran. These strikes are at a time when people are also protesting the incompetence of the government to supply natural gas to households in some regions.
January 16, 2023Qatar expects natural gas markets will remain volatile for years
According to the energy minister of Qatar, natural gas markets could whipsaw for the next several years because there’s still too little supply to meet rising demand. Qatar, which vies with the US as the world’s top exporter of LNG, is investing around $45 billion to increase its production by almost 60%, but the project will not finish until 2027.
January 16, 2023Oman’s Asyad Shipping inks pact for two new LNG carriers
Asyad Shipping, a subsidiary of Asyad Group, signed an agreement with Hyundai Samho Heavy Industries to build two modern LNG carriers dedicated to meeting the growing demand for energy logistics services in anticipation of an uptick in the global demand for gas transportation. These advanced tankers will join the Asyad fleet, which includes various types of tankers and ships, including oil and gas VLCCs, bulk carriers and container ships.
January 15, 2023Iranian Oil Exports End 2022 At a High, Despite No Nuclear Deal
Despite U.S. sanctions, Iranian oil exports hit new highs in the last two months of 2022 and are making a strong start to 2023 on higher shipments to China and Venezuela. To evade sanctions, most of Iran’s crude exports to China, their biggest customer, are rebranded as crude from other countries.
January 15, 2023Kuwaiti Oil Exports Record 25% Rise To Independent Chinese Refineries
Standard & Poor’s Global Commodity Agency reported that the imports of independent Chinese refineries from Kuwait increased by 25.2% in 2022 compared to 2021, noting that Kuwait exported more than 5.5 million tons/meter in the previous year, compared to more than 4.4 million tons/meter in 2021. Kuwait’s exports to independent Chinese refineries last year ranked seventh, after Malaysia, Russia, Saudi Arabia, the UAE, Iraq and Oman.
January 15, 2023U.S., UAE Say $20 Billion Investment To Fund 15 GW In New Clean Energy
The United States and United Arab Emirates announced that the first $20 billion of their $100 billion clean energy partnership would be allocated to fund 15 new gigawatts of renewable energy projects before 2035. The investments would be led by UAE’s Masdar and a consortium of US private investors, and financed through $7 billion in private sector cash equity and $13 billion in US debt financing and other instruments.
January 15, 2023UAE Launched 11 Environmentally Friendly Energy Projects Worth $43.2 bln In 2022
The United Arab Emirates launched 11 environmentally friendly energy projects worth AED 159 billion ($43.2 billion) in 2022. The energy minister has also highlighted the launch of the UAE Energy Strategy 2050 – the country’s first unified energy strategy – which aims to integrate the renewable and clean energy mix to achieve a balance between economic needs and climate goals, in addition to reducing dependency on other fuel sources over the next three decades.
January 15, 2023UAE’s Dana Gas Says Explosive Device Was Detonated In Iraqi Khor Mor Gas Field
UAE-based Dana Gas said that an explosive device was dropped and detonated within its Khor Mor Block in the Kurdistan Region of Iraq last week. The energy firm said the detonations on Friday morning caused no injuries to people or damage to facilities, and production operations continue at the Khor Mor Gas plant as normal without interruption.
January 14, 2023Iraq Parliament Speaker: Basra-Aqaba Oil Pipeline To Be Executed Soon
Iraq’s parliament Speaker Mohammad Al-Halbousi has said that the Iraqi government will start implementing the Basra-Aqaba oil pipeline project soon. He indicated that high financial cost was the most important obstacle the Iraqi government dealt with by preparing a new low-cost study, and that all costs will be paid by Iraq because it is an Iraqi project aiming to increase its oil exports and financial revenues.
January 14, 2023UAE Energy Minister: OPEC+ Faces Oil Market Volatility In Both Supply And Demand
UAE energy minister Suhail al-Mazrouei told Asharq TV that OPEC+ is facing “volatile prospects” in oil markets both in supply and demand. He said this was due to European sanctions on Russian crude taking effect in addition to China lifting its “zero-COVID” policy, and that the UAE is taking preemptive steps to compensate for the reduced oil production capacity in some countries by bringing forward its five million barrel per day oil production capacity expansion to 2027 from a previous target of 2030.
January 13, 2023UAE And UK Sign Agreement To Enhance Clean Energy Co-operation
The UAE and UK have signed an agreement that will enable sharing of technical knowledge in clean energy, including low-carbon hydrogen and nuclear energy. The agreement was signed by Sharif Al Olama, undersecretary of the Ministry of Energy and Infrastructure for Energy and Petroleum Affairs, and UK Business Secretary Grant Shapps. The agreement will enhance strategic and technical co-operation between the nations in the energy sector and develop renewable energy technology, including regulatory frameworks and incentives.
January 13, 2023Qatar Takes FID On Huge Petrochemicals Complex
QatarEnergy announced that it has taken a final investment decision on its $6bn Ras Laffan Petrochemicals Project alongside partner Chevron Phillips (30%). The facility is being developed at the Ras Laffan industrial city in northern Qatar and is due to begin production in late 2026. The complex is centered on a 2.08mn t/y ethane cracker, which, once operational, will be the largest such facility in the Middle East.
January 13, 2023Masdar Signs Agreement to Explore Exporting Green Hydrogen from Abu Dhabi to Europe
Masdar, Port of Amsterdam, SkyNRG, Evos Amsterdam and Zenith Energy have signed a memorandum of understanding to explore the development of a green hydrogen supply chain between Abu Dhabi and Amsterdam to support Dutch and European markets.The exported green hydrogen will be delivered to key European sectors – sustainable aviation fuel, steelmaking, and bunkering for shipping – and will also be supplied to new, emerging European offtakers, via pipeline, truck and barge.
January 13, 2023Saudi Arabia’s Petromin Revives $1 Billion IPO Plan
Saudi Arabian automotive services firm Petromin is reviving plans for its initial public offering in the kingdom that could raise as much as $1 billion. The company, which is also the Middle East’s oldest lubricants firm, is working with Saudi National Bank and Moelis & Co. on the planned offering.
January 12, 2023Gulf Markets Subdued Ahead Of U.S. Inflation Data; SNB Lifts Saudi
Most major Gulf stock markets were subdued on Thursday as sentiment across markets remained frail ahead of upcoming inflation data from the United States. Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, exposing them to direct impacts from any Fed monetary tightening.
January 12, 2023Bahrain’s Alba Awards Over 6MW Solar Farm Project To Saudi Firm
Aluminium Bahrain (Alba), one of the world’s largest aluminum smelters, has awarded its solar farm project to Advanced United Systems, to install solar photovoltaic panels over 37,000 sq m with a capacity of more than 6 megawatts. Advanced United Systems is a Saudi company and part of the Taj Holding Group that specializes in smart grid solutions, energy, and renewable energy services. The project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
January 12, 2023UAE Names Oil Company Chief To Lead UN’s COP 28 Climate Talks
Emirati authorities on Thursday nominated Sultan al-Jaber, a confidant of UAE President Sheikh Mohammed bin Zayed Al Nahyan and also serves as CEO of the Abu Dhabi National Oil Co., to preside over the upcoming United Nations climate negotiations in Dubai. Al-Jaber’s firm pumps some 4 million barrels of crude a day and hopes to expand to 5 million daily, but the Emirates’ state-run WAM news agency has noted al-Jaber’s years also serving as a climate envoy.
January 11, 2023Alba To Start Installing Solar PV Panels Over 37,000 m2
Aluminium Bahrain B.S.C. (Alba), one of the world’s largest Aluminum smelters, announced that it has awarded its Solar Farm Project towards Advanced United Systems to install Solar Photovoltaic Panels over 37,000 m2 with a capacity of more than 6 Megawatts. The Solar Farm Project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
January 11, 2023Shell Oman Signs Agreements For Syngas And LNG Offtake; Takes Stake In Green Hydrogen Project
Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore the deployment of Liquified Synthetic Gas in Oman. In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman, the consortium that is developing the country’s largest renewable green hydrogen project. In a third agreement, Shell Oman has signed a term sheet with Oman LNG for the purchase of 0.8 million metric tonnes per year of liquefied natural gas for a period of 10 years, starting from 2025.
January 11, 2023Russia’s Putin and Iran’s Raisi Discuss Energy And Transport In Telephone Call
Russian President Vladimir Putin discussed energy and transport projects with Iran’s President Ebrahim Raisi in a telephone call. The Kremlin has said that “The presidents spoke in favor of the consistent implementation of mutually beneficial projects in the energy, transport and logistics sectors.” Moscow and Tehran have moved to forge closer relations after Russia sent tens of thousands of troops into Ukraine last February, prompting sweeping Western sanctions. Russia and Iran, which are also under Western sanctions, are among the world’s largest oil exporters.
January 10, 2023Gulf Markets Slightly Weaker As Oil Prices Slip
Gulf stock markets opened slightly in the red on Tuesday as oil prices fell. Oil prices, a key catalyst for the Gulf’s financial markets, edged lower on expectations that further interest rate hikes in the United States, the world’s biggest oil consumer, will slow economic growth and limit fuel demand.
January 10, 2023UAE’s Masdar To Develop Renewable Energy Projects In Kyrgyzstan
Abu Dhabi renewable energy firm Masdar has signed an agreement with Kyrgyzstan’s energy ministry to develop clean energy projects with a capacity to generate 1 gigawatt. The pipeline of projects will start with a 200 megawatt solar photovoltaic plant scheduled to begin operations by 2026. Kyrgyzstan is looking to reduce its greenhouse gas emissions by 44% by 2030 and achieve carbon neutrality by 2050.
January 10, 2023Qatar Moves Ahead With $6 billion Ras Laffan Petrochemicals Project
QatarEnergy announced the final investment decision with Chevron Phillips Chemical Co. to build the 2.1 million mt/year ethylene project in Ras Laffan for $6 billion, marking the company’s largest investment in petrochemicals in Qatar. Both sides agreed to establish a joint venture for the Ras Laffan petrochemicals project that will be 70% owned by QatarEnergy and 30% by Chevron Phillips. The go-ahead is the latest in a raft of projects planned by state-owned oil and natural gas companies in petrochemicals in the region as they seek to broaden the scope of their business.
January 10, 2023Kahramaa To Set Up 150 Electric Charging Stations In 2023
While continuing its sustainability practices and efforts to reduce carbon emission, the Qatar General Electricity and Water Corporation (Kahramaa), represented by the National Programme for Conservation and Energy Efficiency (Tarsheed), will set up 150 electric vehicle (EV) charging stations across the country in 2023. Engineer Mohamed Khalid al-Sharshani, head of the technical section at Tarsheed, has said that they are “looking to expand the network to 600 to 1,000 fast charging stations by 2025.”
January 10, 2023Kuwait Expected To Award Substations Contract In Q1 2023
Kuwait’s Ministry of Electricity, Water and Renewable Energy (MEW) is expected to award the engineering, procurement and construction (EPC) contract for four main substations – Rumaithiya C, Salmiya X, Egaila Entertainment Projects G and Salwa E – by the first quarter of 2023. The estimated total project value is at $70 million.
January 9, 2023Kuwait To Export Five Times As Much Diesel To Europe In 2023
Kuwait will send to Europe five times its usual shipments of diesel, around 2.5 million tonnes, this year as an anticipated ban of oil products from Russia takes effect. The EU is expected to ban Russian imports on February 5 as part of ongoing sanctions on Russia for its invasion of neighboring Ukraine.
January 8, 2023Iran’s LPG Exports Increase 86%
The value of Iran’s liquefied petroleum gas (LPG) export rose 86 percent from the beginning of the current Iranian calendar year (March 21, 2022) up to December 31, as compared to the same period of time in the past year. Iran exported $6.783 billion worth of LPG in the mentioned period to register a new record in the country’s gas exports.
January 8, 2023Iraq Approves $3bln Power Plant
OPEC member Iraq has approved the construction of a new power plant at a cost of around $3 billion. The project will be in the Southern Dhi Qar Governorate with a generation capacity of 3,000 megawatts. The project will boost Dhi Qar’s electricity output from 850 MW to 3,950 MW and will “provide a final solution to the Governorate’s power crisis.”
January 6, 2023JERA Signs Agreement With Oman LNG Project
JERA Co., Inc. has signed a key term sheet for the sale and purchase of LNG with Oman Liquefied Natural Gas LLC (Oman LNG). JERA will purchase up to 12 cargoes (approximately 0.8 million t) per year of LNG produced from the Oman LNG project from 2025 for 10 years. LNG procurement competition has been intensifying, and stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is thus needed to secure a stable supply of energy in Japan.
January 5, 2023ADNOC Allocates $15 Billion To Low-Carbon Projects
ADNOC announced today an investment of $15 billion in projects by 2030 that will help the state-owned energy company accelerate its low-carbon growth strategy. These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new measures to build on ADNOC’s long-standing policy of zero routine gas flaring. Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.
January 5, 2023Saudi Arabia Cuts Oil Prices For Main Market As Demand Slows
Saudi Arabia cut oil prices for Asia, signaling that demand in its main market remains sluggish, as economies slow and coronavirus cases in China surge. Saudi Arabia sells most of its oil under long-term contracts to Asia, pricing for which is reviewed each month, with China, Japan, South Korea and India being the biggest buyers.
January 4, 2023OPEC Oil Output Rises Despite Production Target Cuts
OPEC oil output rose in December despite an agreement by the wider OPEC+ alliance to cut production targets to support the market. The rise was led by recovering output in Nigeria, which has been battling with crude theft and insecurity in its oil-producing region. This output has weakened compliance with the 2 million bpd cut to OPEC+ output target announced in November 2022.
January 3, 2023Abu Dhabi Sustainability Week Hosts First Green Hydrogen Summit in Year of Climate Action for UAE
Abu Dhabi Sustainability Week (ADSW) will hold its first annual Green Hydrogen Summit on January 18th, 2023, highlighting green hydrogen’s growing importance in the global drive toward net zero. The inaugural Green Hydrogen Summit at ADSW will cover topics including, developments in hydrogen production, conversion, transport, storage, and use. It will also include high-level discussions focused on the development of the UAE hydrogen economy, the role of government and regulation, and panel sessions on a broad range of topics including innovation, sustainable finance, green energy in Africa, and hydrogen’s value chain.
January 3, 2023Iraq Oil Revenues In 2022 Exceed $115 Billion
Iraq’s oil revenues in 2022 exceeded $115 billion- a four-year high following a collapse in prices during the coronavirus pandemic. The country exported more than 1.2 billion barrels in 2022, averaging 3.3 million barrels per day.
January 3, 2023Oman’s Production Of Crude Oil, Condensates Surges 10%
Oman’s production of crude oil and condensates recorded a rise by 10% till the end of November 2022, standing at 355.473 million barrels, an increase from the previous year’s 323.174 million barrels. The average price of Oman’s crude oil surged by 52.7% till the end of November 2022 at USD 95.8 per barrel compared to $62.77 per barrel by the end of November 2021.
January 1, 2023Clean Energy Reaches 14% Of Dubai’s Total Power Production Capacity
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has announced that the production capacity of clean energy in Dubai has reached 2,027 megawatts (MW) using photovoltaic solar power (PV) and concentrated solar power (CSP). This is about 14 percent of Dubai’s total power production capacity of 14,517 MW. He made the announcement during his visit to the Mohammed bin Rashid Al Maktoum Solar Park, which DEWA is implementing. This is the largest single-site solar park in the world using the Independent Power Producer (IPP) model and will have a production capacity of 5,000 MW by 2030, using photovoltaic solar panels and CSP technologies.
2022December 30, 2022Iran’s First Coal-Fired Power Station Plan on Track
The construction of the first phase of Iran’s first coal-fired power plant in Tabas, South Khorasan Province, is 35% complete. The Tabas power station is expected to not contribute to air pollution as it will be equipped with advanced pollution-reduction systems. The Energy Ministry plans to build coal-fired power stations capable of producing 5,000 megawatts of power over the next two decades as Iran moves forward in its plan to diversify its sources of energy.
December 29, 2022New Law In Saudi To Enhance Energy Efficiency, Promote Low-Carbon Circular Economy
Approved by the Saudi Council of Ministers, the new Energy Supplies Law aims to privatize the energy sector, including electricity supply, oil refineries, petrochemicals, water desalination, mining, agriculture, construction and related sectors. The law stipulates the formation of a committee, with representatives of 15 bodies, to study executive regulations and approve privatization criteria. The law is also expected to have several advantages that contribute to improving the efficiency of energy supply and promote a low-carbon circular economy.
December 29, 2022Oman To Set Up Integrated Company To Manage Natural Gas Assets
Oman plans to establish an integrated gas company to manage all natural gas assets, including exports and imports of the commodity and its derivative products. The new company by Oman’s Finance Ministry is aimed at improving the country’s economic indicators by excluding gas purchase and transport costs from the general state budget. The move will “upgrade” the efficiency of the sector by recognising the net revenue from gas sales.
December 28, 2022Kuwait’s Oil Corporate Investment Put At $2.43bln
Kuwait’s state oil operator and its subsidiaries control stake in 13 local and foreign companies with a total value of around 738.5 million Kuwaiti dinars ($2.43 billion). The Kuwait Petroleum Corporation (KPC), which manages the OPEC producer’s massive hydrocarbon industry, and its affiliates own shares in two major South Korean groups and a number of firms in Kuwait, Asia and Europe.
December 28, 2022558,340 kwh Of Clean Energy Produced From Waste Generated During World Cup
As much as 558,340 kwh of clean energy was produced from the waste generated throughout the FIFA World Cup Qatar 2022. While 72% of the waste from the event was recycled, the rest was used to produce clean energy in cooperation with the Supreme Committee of Delivery and Legacy (SC) and the private sector.
December 27, 2022Oman, Japan Sign MoUs In Energy Field
Oman and Japan signed a memorandum of understanding (MoU) in the field of hydrogen, fuel ammonia and carbon recycling. The two countries also signed a third extension for a MoU in the field of crude oil, natural gas and clean energy. The first MoU aims to accelerate the Oman-Japan energy and resources cooperation and acknowledge the continued role and contribution of Oman to Japan’s energy security. The second MoU was first signed on January 9, 2014 in confirmation of the two sides’ mutual intention and desire to promote and develop cooperation in the field of crude oil, natural gas and clean energy development on the basis of reciprocal benefits.
December 26, 2022The GCC’s First Hydroelectric Power Plant Reaches 58% Completion
Dubai Electricity and Water Authority (DEWA)’s pumped-storage hydroelectric power plant site in Hatta is 58.5% complete. The station is the first of its kind in the GCC, has investments up to AED 1.42 billion, and is expected to be completed in 2024. The power plant is part of DEWA’s efforts to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050.
December 26, 2022Saudi Arabia’s ACWA Power Signs $2.4bn Wind Energy PPA With Uzbekistan
Saudi Arabia’s ACWA Power has signed a power purchase agreement with the National Electric Grid of Uzbekistan to build three wind power plants in the north-western Karakalpakstan region of Uzbekistan. The agreement is valued at $2.4 billion and is expected to offset 2.4 million tons of carbon emissions per year and power 1.65 million homes.
December 26, 2022Saudi Arabia and Japan Sign Investment Agreements In The Petrochemicals And Automotive Sectors Among Others During Bilateral Forum
Saudi Arabia and Japan on Monday signed 15 strategic investment agreements spread across various industries during the Saudi Japan Investment Forum held in Riyadh. During the forum Saudi Minister of Investment Khalid Al-Falih said the two countries have bolstered their relationship as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030. The Kingdom aims to become the world’s leading energy nation as the two countries intend to cooperate for a smoother energy transition.
December 25, 2022Saudi Arabia, Japan Sign Agreements On Circular Carbon Economy, Clean Hydrogen, Fuel Ammonia
Saudi Arabia and Japan signed a memorandum of cooperation (MoC) on Sunday in the fields of the circular carbon economy, carbon recycling, clean hydrogen and fuel ammonia. Under the two memoranda of cooperation, the two countries will accelerate the use of hydrogen in transport, promote research and development of hydrogen and fuel ammonia technologies and their use at the local, bilateral, regional and international levels.
December 23, 2022Yemen And Masdar Signs Agreement To Build 120 MW Solar Power Plant In Aden
Yemen’s Ministry of Electricity and Energy signed an agreement with Abu Dhabi Future Energy Company, Masdar, to provide the interim capital, Aden, with a solar power plant with a total capacity of 120 megawatts.
December 22, 2022Germany’s Uniper And Masdar To Build Green Hydrogen Plant In UAE
Masdar’s executive director for clean energy, Mohammad Abdelqadar El Ramahi, said in an interview that Germany’s Uniper SE is teaming up with Masdar, one of the Middle East’s biggest renewable-energy firms, to make green hydrogen in the United Arab Emirates. The two companies will build a plant that will run on almost 1.3 gigawatts of solar power and is expected to produce hydrogen from 2026. Uniper’s shareholders agreed to a €33 billion ($35 billion) rescue this week that will lead to the utility’s nationalization and avoid its collapse following a surge in natural-gas prices in the wake of Russia’s invasion of Ukraine. The German government expects Uniper to strengthen its climate targets in the coming years.
December 22, 2022QatarEnergy Signs Agreement With QPD To Continue Al-Karkara And A-Structures Offshore Fields Development, production
QatarEnergy and Japan’s Qatar Petroleum Development Company (QPD) signed a new agreement for the continued development and production of the Al-Karkara and A-Structures oil fields, located in the territorial waters of Qatar. The new five-year agreement, which commences on December 23 succeeds the development and production sharing agreement signed in December 1997. Under the new agreement, QPD will continue to act as the operator of the oil fields. The fields started production in March 2006, and since then have produced a total of 33.5mn barrels of crude oil.
December 21, 2022Opec+ To Remain ‘Proactive’ Amid Oil Market Uncertainty, Saudi Energy Minister Says
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in an interview with official news agency SPA that OPEC+ will remain “proactive” as global oil markets face uncertainty, “In face of a wide range of uncertainties, OPEC+ has no choice but to remain proactive and preemptive, and this is not an easy task, especially that the market has the tendency to overreact to news in both directions.”
December 21, 2022TotalEnergies Raises The Bar With Its Renewable Ambition In Saudi Arabia
On December 19, Frence’s TotalEnergies announced the commencement of Saudi Total Petroleum Products Co.’s solar project of installing a rooftop system on its lubricants blending plant, located at King Abdullah Economic City’s Industrial Valley. The solar system will be implemented by a joint venture named Saudi French for Energy Efficiency and Renewables, established in 2021 by the Jeddah-headquartered Zahid Group and French energy company TotalEnergies. In line with the renewable energy goals of Vision 2030, TotalEnergies is aiming to be a world-class player in the energy transition by becoming a multi-energy company.
December 20, 2022OPEC Fund Approves Over $500m In New Global Development Support
On December 20, OPEC Fund for International Development (OFID) has approved more than $500m in new financing at the most recent meeting of its governing board and in the final quarter of 2022. The 15 new projects approved reflect OPEC Fund’s launch of a $1bn food security action plan and the adoption of its first dedicated climate action plan. The OPEC Fund Governing Board approved projects in the following countries: Niger, Bangladesh, Uzbekistan, Tanzania, Benin, Liberia, Cote d’Ivoire, Kyrgyzstan, Madagascar, Mauritania, Botswana.
December 18, 2022SABIC, Aramco, Sinopec To Assess Viability Of Developing Petrochemical Complex
Saudi Basic Industries Corp. has signed a memorandum of understanding with energy giant Saudi Aramco and China Petroleum & Chemical Corp., known as Sinopec, to assess the economic and technical feasibility of developing an integrated petrochemical complex with an existing refinery in Yanbu. Apart from the deal with SABIC, Sinopec, in December, also signed a framework agreement with Saudi Aramco to build a Phase II 16 million-ton-a-year refining project and 1.5 million-ton-year ethylene units in Gulei, Fujian. Aramco said the announcements support its role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.
December 17, 2022Iran Says Enriched Uranium Capacity Hits Record
Iran said Saturday its uranium enrichment capacity has increased to record levels, a day before United Nations nuclear monitors are set to visit the country. Mohammad Eslami, head of the Atomic Energy Organization of Iran said, “Currently, the enrichment capacity of the country has reached more than twice the entire history of this industry,” The International Atomic Energy Agency will send a technical team to try to resolve a deadlock over the detection of traces of radioactive material at sites not declared as having hosted nuclear activities. The issue has hindered efforts to revive a 2015 nuclear deal between Iran and major powers.
December 16, 2022Aramco, TotalEnergies Invest $11 Billion In New Oil Complex In Saudi Arabia
Aramco and TotalEnergies are joining forces and investing $11 billion to build a new petrochemicals complex in Saudi Arabia. Aramco is funding 62.5% of the project whilst TotalEnergies is funding the other 37.5%. The complex will be operated by both companies and will be integrated into the Saudi Arabia Total Refining and Petrochemicals (SATORP) and will be located in Jubail. This venture will open up 7,000 new jobs in Saudi Arabia and comes in light of the Russia-Ukraine war which has provided Saudi Arabia with the opportunity to “strengthen its position in the oil sector”. The kingdom has also been investing in other places, such as South Korea.
December 14, 2022Aramco Partners With US Software Company For Carbon Capture Tech
Aramco has partnered with US-based Aspen Technology to introduce practical and economic solutions for carbon capture and utilization (CCU). The technology was developed as a part of a collaboration between Aramco and Korea Advanced Institute of Science & Technology (KAIST). By considering economics, process design and operations constraints and CO2 reduction, the technology aims to address the identification of the best CCU paths.
December 14, 2022Hungary To Start Talks With Qatar About Buying LNG -Foreign Minister
Hungary and Qatar agreed that Hungary’s energy group, MVM, and Qatar’s QatarEnergy will begin talks about the latter supplying Hungary with liquefied natural gas (LNG) within the next three years. Qatar is currently one of the world’s top LNG exporters and several European states have already been in talks with Qatar in an effort to reduce their reliance on Russian energy supplies. This agreement would also require the European Union to expand the capacity of the continent’s Southern LNG terminals.
December 13, 2022Saudi’s PIF Acquires Up To 9.5% Stake In Skyborn Renewables
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has announced the acquisition of up to 9.5% of Skyborn Renewables, alongside Global Infrastructure Partners. Skyborn is an offshore wind developer and operator that has projects in Germany, France, and Taiwan. Through this acquisition, PIF is involved in the acceleration of energy transition and clean energy at an international scale. PIF has also been investing in the low carbon sector in an effort to develop 70% of the kingdom’s renewable energy by 2030. It comes in light of the fund investing in other renewable energy companies such as ACWA and Sudair and Al Shuaibah Solar Energy Projects.
December 13, 2022UAE To Open Facility That Converts Waste To Green Hydrogen
Sharjah-based sustainability group, BEEAH, signed an agreement to build the United Arab Emirates’ first waste-to-hydrogen power plant. The memorandum of understanding was signed between BEEAH, Air Water (a Japanese gas conglomerate), and Chinook Sciences (a British waste-to-fuel technology firm). The goal is to create a facility that will convert waste wood and plastic to hydrogen which will then be used for fuel. This agreement is reflective of UAE’s policy of moving towards green technology, away from oil and gas.
December 13, 2022Saudi Arabia Will Host The Middle East’s Largest Solar Facility
Saudi Arabia’s Water and Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and ACWA Power have signed power purchase agreements to develop the largest solar energy plant in the Middle East. The 2,060 MW plant is to be built in Al Shuaibah and is expected to be operational by 2025. The electricity generated from this solar energy plant will be sold to the Saudi Power Procurement Company and is expected to power 350,000 homes. Yazeed A. Al-Humied, head of MENA Investments at PIF, said in a statement, “This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030.”
December 12, 2022Aramco ‘In Talks’ With Investors On $110bn Jafurah Gas Project
Aramco has begun talks with investors for the new Jufarah gas development project to fund the midstream and downstream projects there. The Jufarah gas project is an ambitious attempt by Saudi Arabia to diversify their energy exports. Aramco has reached out to large funds and private equity firms that would be able to offer stakes in projects such as carbon capture and storage. The company will use the gas produced in the Jufarah gas field to create blue hydrogen that will be exported as a clean energy source. The war in Ukraine has led to European countries looking to the Gulf for oil and gas supplies, causing the Gulf states to embark on ambitious projects to expand their oil and gas output, such as this one.
December 12, 2022Aramco, Shandong Energy to collaborate on projects in China; cooperation across H2, renewables and carbon capture technologies
Aramco and Shandong Energy signed a Memorandum of Understanding (MoU) regarding petrochemical and refining opportunities in China. The memorandum consisted of a potential crude oil supply and chemicals product offtake agreement. Their collaboration also extends to future cooperation in the sectors of hydrogen, renewable energy, and carbon capture technologies. The MoU comes in the context of the summit of Gulf Arab leaders in Riyadh where Chinese President Xi Jinping said that China would buy oil and gas in yuan, which is seen as an attempt to weaken the hold of the US dollar on world trade. This agreement is also in the context of various other energy-related deals signed between the two countries.
December 11, 2022Aramco Gulf Operations, Kuwait’s KGOC Agree To Develop Durra Gas Field, Saudi News Agency Reports
It was reported that Saudi Aramco Gulf Operations Company signed a Memorandum of Understanding on Sunday with Kuwait Gulf Oil Company (KGOC) to develop the joint Durra gas field. Its result is supposed to be producing 1 billion cubic feet of gas and 84,000 barrels of liquefied gas per day.
December 9, 2022Saudi ACWA Power Signs Deals With 9 Chinese Entities On Clean Energy, Renewables
Saudi Arabia’s ACWA Power signed agreements with 9 Chinese entities on matters related to clean energy and renewables. These agreements will lay the foundation for the “financing, investment and construction” of ACWA Power’s clean and renewable energy projects. The memorandums of understanding were signed during the 1st China Arab Summit and it comes in light of Saudi Arabia and China signing deals in several sectors including green energy and information technology amongst others. The Chairman of ACWA Power said, “we are in a unique position to support both the energy transition and economic transformation envisioned by Saudi Arabia’s forward-looking and iconic Vision 2030, as well as China’s Belt and Road initiative.”
December 9, 2022Gulf Producers Lead On OPEC+ Cuts, Saudi Crude Output At 6-month Low: Platts Survey
The OPEC+ oil producer alliance decreased their output by 700,000 barrels per day in November; this was a move conducted by 14 out of the 22 countries in the coalition and was the steepest decrease since April of this year. Additionally, the Saudi Energy Minister argued that the major oil producers were dedicated to maintaining the current quotas. Whilst countries like Iraq and the UAE cut their oil output, there was an increase in oil production in places like Kazakhstan, Nigeria and Russia. The goal for 2023 is therefore to make sure that the OPEC+ Alliance keeps the quotas steady.
December 9, 2022Oman Minister Says Oil Producers Are Uneasy Over Russia Price Cap
Oman’s energy minister has said that there is a great amount of unease amongst oil-reliant economies over the cap that the Group of Seven put on the price of Russian barrels. There has been a price ceiling placed on Moscow’s oil exports. This is significant because the restrictions will lead to overall less investment in global oil production. OPEC+ have also agreed to keep production steady at 2 million barrels a day.
December 8, 2022Saudi and Chinese Companies Sign 34 Investment Agreements
Saudi and Chinese companies signed 34 investment agreements that covered several sectors in the field of energy, including “green energy, green hydrogen, photovoltaic energy, information technology, cloud services, transportation, logistics, medical industries, housing and construction factories.” These agreements were signed during China’s President Xi Jinping’s visit to Saudi Arabia. The Saudi Minister of Khalid bin Abdulaziz Al-Falih said that this agreement is a reflection of the two countries’ “keenness” to develop and strengthen existing relations in all fields. This investment agreement also comes in light of Saudi’s Vision 2030 which aims to offer investment opportunities in many different sectors including those of energy.
December 8, 2022Oil Prices Fall To Lowest Since January Despite Saudi-backed Production Cut
Oil prices have fallen to a yearly low despite Saudi Arabia’s efforts to cut oil production. The OPEC+ alliance met on December 4th and agreed to keep oil production to 2 million barrels per day. Despite the decrease in oil production, which should in theory lead to increased oil prices, there was a fall in oil prices. Simon Henderson of the Washington Institute for Near East Policy said that this was “related to the global economy” and that it could reflect “market anxieties about the prospect of a recession.” However analysts argue that it is not going to cause a collapse in oil prices as it did in 2020 when there was a price war between Russia and Saudi Arabia which led to massive oil price drops.
December 8, 2022Abu Dhabi’s ADNOC, TAQA And Mubadala Complete Deal To Acquire Masdar Stakes
Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) have completed a deal with Masdar where they will become shareholders in the Abu Dhabi-based clean energy company. This will result in Masdar’s growth as it will expand and cover “renewable power, green hydrogen and other enabling clean energy technologies, a statement said.” It is an effort to help the UAE reach its Net Zero by 2050 strategic initiative and to meet the world’s demand for clean energy. With this partnership, Masdar’s target for renewable energy capacity is 100GW and it aims to increase production of green energy to one million tons by 2030.
December 7, 2022Saudi Arabia Expects Narrower 2023 Surplus as Uncertainty Clouds Oil Outlook
Saudi Arabia is expected to have a budget surplus in 2023 but it is 84% lower than that of this year due to “uncertain global economic outlook and lower crude prices.” The budget of 2023 will be 1.114 trillion-riyals ($296 million) with a surplus of 0.4%. The surplus is to be used “to boost government reserves, support state funds, like PIF, and strengthen the kingdom’s financial position,” as was said by Crown Prince Mohammed bin Salman. Furthermore, Monica Malik, chief economist of the ADCB claims that the economic impact of this reduction in surplus is to be “limited”. The country has exhibited restraint fiscally following the COVID-19 pandemic where oil prices “collapsed”. However, due to rising oil prices, Saudi Arabia was able to have its first budget surplus this year since 2013.
December 6, 2022Adnoc to set up new vertical in decarbonisation push
Adnoc is hastening its decarbonisation strategy by setting up a new low carbon solutions and international growth vertical. The new vertical will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas (LNG) and chemicals. Adnoc has set a new methane emissions target for its upstream unit as part of its efforts to reduce its overall greenhouse gas emissions. The state-owned oil company is aiming for the “Middle East’s lowest” methane intensity target of 0.15 per cent by 2025.
December 6, 2022Global renewable capacity to double over next 5 years as energy crisis deepens: IEA
Global renewable power capacity is expected to double over the next five years primarily driven by energy security concerns caused by Russia’s invasion of Ukraine, according to the International Energy Agency. In its annual report on the outlook of renewables, the organization noted that the capacity of renewables globally is expected to grow by 2,400 gigawatts over the 2022-2027 period, an amount equal to the entire power capacity of China today. According to the report, Europe is leading the energy transition from the front as EU nations are looking to rapidly replace Russian gas with alternatives post the conflict in Ukraine. The report added that countries like China, US and India are implementing policies and introducing regulatory and market reforms to combat a possible energy crisis.
December 5, 2022Saudi Arabia sets Jan Arab Light prices to Asia at 10-mth low
Saudi Arabia cut the January official selling price (OSP) for its flagship Arab Light crude for Asian buyers to a 10-month low, on concerns over faltering demand and a potential increase in Russian competition. The OSP for January-loading Arab Light to Asia was trimmed by $2.20 a barrel from December to $3.25 a barrel over Oman/Dubai quotes. The new OSP is just above the previous low of $2.80 per barrel, set for March 2022. Although the market remains cautious on lifting Russian crude as the price cap is just set, it is unlikely that more cargoes will flow to Asia and compete with the Middle Eastern crude.
December 5, 2022Saudi Arabia explores opportunities with Netherlands on energy, circular economy in key meeting
Senior officials and business leaders from Saudi Arabia and the Netherlands have met to discuss potential collaborations regarding the energy and circular economy fields. The meeting also shed light on potential opportunities in the Kingdom, specifically in addition to discussions on the development in the labor market and women’s participation in the workforce.
December 4, 2022OPEC+ maintains status quo on output amid fresh price cap on Russian oil
OPEC+ has agreed to roll over its existing output policy, just a day after the Group of Seven nations decided to put a price cap on Russian energy supplies. The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022. OPEC+’s key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.
December 3, 2022Iran Increases Gas Exports to Iraq After Payment Settlement
Iraq has settled all payments related to purchases from the National Iranian Gas Company according to the Iranian oil minister. Last year they received about €1 billion [$1.05 billion] and this year €1.6 billion [$1.685 billion] from Iraq regarding its gas debts to Iran. The volume of gas exports to Iraq since the beginning of the current Iranian year [started March 21] has increased by 1.5 billion cubic meters compared with the same period of last year. Iraq has secured special waivers from the US sanctions on Iran to be able to import natural gas and electricity from its eastern neighbor.
December 2, 20227.3 Billion Tons of Potential Phosphate Reserves in Saudi Arabia
The world will need to increase the production of some types of minerals by 500% to meet the future demand for clean energy, according to Saudi Vice Minister of Industry and Mineral Resources for Mining Affairs Khalid Saleh Al-Mudaifer, during the Mines and Money conference in London. Saudi Arabia has become one of the most prominent countries in the field of producing phosphate fertilizers, with potential reserves of phosphate amounting to 7.3 billion tons. The World Bank estimated that there is a need for more than 3 billion tons of minerals and metals.
November 29, 2022Germany to get new Qatari LNG flows through QatarEnergy, ConocoPhillips deal
Germany is set to receive new flows of Qatari liquefied natural gas from 2026 after QatarEnergy and ConocoPhillips signed two sales and purchase agreements for its export covering at least a 15-year period. This comes as a result of sanctions placed on Russian LNG, on which European countries were heavily reliant. This new venture will help ease the potential energy crisis that Germany is facing and strengthens ties with Qatar.
November 28, 2022Kuwait’s $6.3 bln clean energy projects under implementation
Kuwait has clean energy projects worth $6.3 billion under implementation, while it has only 0.5% of the installed clean energy capacity. A report also indicates that Kuwait has multiple projects which are still in the “study phase” which bodes well for future clean energy endeavors. Amid global economic decline, however, it is understood that their spending on these projects may not be as aggressive as they look to take the most economically suitable approach.
November 24, 2022SABIC and Aramco plan to start crude-to-petrochemicals project in Ras Al-Khair
SABIC is planning to start a joint project with Saudi Aramco to convert crude into petrochemicals. As oil receives strong demand, the Saudi energy minister confirmed that this venture will accelerate growth by 60% until 2040. This strategy is currently in its final stages and it includes building an important chain from basic petrochemicals to specialized petrochemicals. The system aims to convert about 4 million barrels of crude and liquids into petrochemicals for local projects. Aramco has been working to commercialize crude to chemicals technologies as part of the strategy to position itself as a preeminent player in the global petrochemicals industry.
November 23, 2022Saudi listed firms’ net profit soars 32% as energy, banking sectors shine
Energy firms and banks helped fuel a 32 percent year-on-year rise in aggregate profits for listed companies in Saudi Arabia in the third quarter of 2022. Companies operating in the Kingdom’s energy sector witnessed the maximum profit during the third quarter at $41.2 billion, driven by crude oil prices and volumes sold. UAE-listed companies were the only others in the region to record higher profits for the quarter. GCC companies net profits continued to show growth in the third quarter of 2022 and were up by almost a quarter to reach $70.7 billion as compared to $57.2 billion during the same period in the previous year. These reports further establish the strength of GCC states economically and especially in the energy sector.
November 23, 2022Masdar agrees to build 100MW solar PV plant in Turkmenistan
Masdar has signed a joint development agreement (JDA) with Turkmenistan’s state-owned power company Turkmenenergo to build a 100MWac solar photovoltaic (PV) plant. The two companies agreed to explore development and investment opportunities in solar and wind power projects on a public-private partnership basis. This development aims to reduce Turkmenistan’s dependence on hydrocarbons and strengthen their energy infrastructure.
November 22, 2022Oil rises 1% as OPEC+ focus on supply cuts outweighs recession concerns
Oil prices rose about 1% on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market. However, prices pared gains late in the session after Bloomberg reported that the European Union watered down its latest sanctions proposal for a price cap on Russia’s oil exports by delaying its full implementation and softening key shipping provisions. In focus later will be the latest weekly snapshots of supply in the United States, which are expected to show crude inventories fell by 2.2 million barrels.
November 22, 2022Iran to enrich Uranium to 60 percent purity at Fordow nuclear site
Iran has begun enriching uranium to 60 percent purity at its underground Fordow nuclear site. This is one of many sites where Iran has pursued nuclear development, directly defying the IAEA. Iran are currently being urged to comply with western demands, as they claim that their current ventures violate the agreements signed at the 2015 nuclear pact. Iran responded with claims that these investigations are politically motivated, and that they are not violating any treaties.
November 21, 2022Saudi energy minister denies output increase discussion
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has denied recent reports stating that the Kingdom is currently discussing an increase in production by 500,000 barrels per day with other OPEC+ producers. He affirmed that it is clear OPEC does not discuss any decisions before its meetings. The UAE energy minister affirmed that his country is “engaging in any discussion with other OPEC+ members to change the last agreement which is valid until the end of 2023.” OPEC remains committed to maintaining balance in the oil markets and global economy.
November 20, 2022Saudi Arabia’s Crown Prince visit Thailand to ink landmark deal on energy
The kingdom’s crown prince visited Thailand to encourage hopes of a productive and permanent relationship between the two countries. After 30 years of no diplomatic relations, ties were regained when Thai Premier Prayuth Chan-ocha trip to Riyadh at the beginning of the year. This meeting presented several deals on energy, tourism as well as normalizing diplomatic ties, Thais who give info to Arab News stated that it was vital to them on a personal level as well.
November 18, 2022Oil slides on China demand concerns, easing supply worries
Oil fell around 2 percent on Friday and was on track for a second weekly decline, pressured by concern about weakening demand in China and further interest rate rises by the US Federal Reserve. China, which sources say is looking to slow crude imports from some exporters, has seen a rise in COVID-19 cases, while hopes for the moderation of aggressive US rate hikes have been dented by remarks from some Fed officials this week. Brent crude was down $1.80, or 2 percent, at $87.98 a barrel by 1325 GMT, having touched $87.86 earlier, the lowest since Oct. 3. US West Texas Intermediate (WTI) crude was down $1.52 or 1.9 percent at $80.12. OPEC+, which began a new round of supply cuts in November, holds a policy meeting on Dec. 4.
November 17, 2022S. Korea, Saudi Arabia agree to boost energy and defense ties
The leaders of South Korea and Saudi Arabia agreed Thursday to boost ties in key sectors such as energy and defense, with the oil-rich kingdom signing a slew of deals including a $6.7 billion petrochemical agreement. During the visit, the two governments and companies from both countries — including some of Seoul’s top conglomerates — signed about 20 deals in areas from agriculture to railways. Among the agreements was Saudi investment for South Korean refiner, S-OIL’s Shaheen project, which would build petrochemical production facilities in South Korea worth $6.7 billion.
November 16, 2022OPEC Sec Gen says organization is ready to intervene for the benefit of oil markets
OPEC Secretary General Haitham al-Ghais said on Wednesday that the organization is ready to intervene for the benefit of oil markets, Saudi-owned Al-Arabiya TV reported. Ghais also said that Organization of the Petroleum Exporting Countries (OPEC) is aware, cautious and monitoring economic developments worldwide.
November 13, 2022Saudi Arabia has ‘green vision’ at COP27, critics unmoved
“We have hugely ambitious goals and targets,” Saudi climate envoy Adel al-Jubeir said at the two-day Saudi Green Initiative Forum on COP27′s sidelines. “We want to be an example to the world in terms of what can be done.” The effort is part of a large push by Saudi Arabia to make the case that the nation should be part of the transition to renewable energies while holding on to its role as the top global crude oil exporter. Saudi Aramco plans to build the world’s biggest carbon capture and storage hub, which will store up to 9 million tons of carbon dioxide when its up and running in 2027.
November 11, 2022Kuwait Reshuffles Oil & Gas Sector Leadership
Kuwait Petroleum Corporation (KPC) CEO Sheikh Nawaf Saud Al Sabah has reshuffled the leadership of the state umbrella firm’s subsidiaries. The move comes six months after his appointment to the role and just weeks after a new oil minister was appointed. Back in February 2021, some of the subsidiaries were given the same CEOs in order to facilitate their subsequent merging, but now those plans have been ditched. Kuwait’s two domestic upstream firms, KOC and KGOC once again have separate CEOs, as do Kuwait’s two domestic downstream firms, KNPC and Kipic.
November 11, 2022Saudi Aramco partners with energy ministry to establish carbon capture and storage hub
Saudi Arabian Oil Co., one of the biggest oil producers in the world, has joined hands with the Kingdom’s energy ministry to establish a carbon capture and storage hub as Saudi Arabia steadily progresses to achieve its net-zero ambition by 2060. During the speech, Saudi Aramco CEO Amin Nasser said that the new CCS hub would be located on the east coast of Saudi Arabia in Jubail. According to Nasser, the hub will have a storage capacity of up to 9 million tons of carbon dioxide a year by 2027.
November 11, 2022Saudi Arabia announces 13 new renewables projects in latest move towards net-zero
Thirteen new renewables projects are currently under development, the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman announced as the country pushes towards its goal of achieving net-zero by 2060. The projects have the capacity of 11.3 Gigawatts and the ability to reduce approximately 20 million tons of carbon emissions per year. The past year alone, Saudi Arabia has managed to reduce emissions by about one million tons.
November 10, 2022Saudi Aramco, Energy ministry sign agreement to establish a carbon capture and storage hub
Saudi Aramco signed a joint development agreement in partnership with Saudi Arabia’s Energy ministry to establish a carbon capture and storage hub which will potentially be able to safely store up to 9 million tonnes of carbon dioxide a year by 2027. This is a major step in the development of safer fuel alternatives.
November 9, 2022UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
November 8, 2022Bahrain announces two new natural gas discoveries
Bahrain has announced two natural gas discoveries in the Al-Joubah and Al-Jawf reservoirs. However, officials have not disclosed the potential of these reserves to the public. It is likely that this discovery will benefit the nation as they deliberate a new plan within the next six months.
November 8, 2022COP27: UAE and Egypt agree to build one of world’s biggest wind farms
An agreement between the Presidents of the UAE and Egypt will see the development of one of the world’s largest wind farms. This is a venture initiated by UAE energy company Masdar, and is projected to produce 47,790 GWh of clean energy annually and offset 23.8 million tonnes of carbon dioxide emissions, equivalent to around 9% of Egypt’s current CO2 emissions. The project further cements the UAE as a leader in reducing carbon emissions, and progresses Egypt’s goal of net-zero carbon emissions.
November 8, 2022Saudi Arabia Signs Energy MoUs with Egypt, Oman
Saudi Arabia has signed two MoUs with Egypt and Oman in an effort to expand operations involving renewable energy, transport of clean hydrogen transport, and electrical interconnection. The agreement with Egypt also encourages digital transformation, innovation, cyber-security, and artificial intelligence. The Saudi minister of Energy and his Omani counterpart, Minister of Energy and Minerals Salem bin Nasser Al-Awfi, signed an MoU for energy cooperation, which includes strengthening cooperation in renewable energy, electricity, energy efficiency and hydrogen, applying the circular carbon economy approach to reduce the effects of climate change, and developing standards to support the use of sustainable materials.
November 8, 2022UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
November 7, 2022Kuwait says to become carbon neutral in oil and gas by 2050
Kuwait is committed to becoming carbon neutral in the oil and gas sector by 2050 and in the whole country a decade after that. This is an important step following announcements made by UAE, Saudi Arabia, and other GCC states who have adopted a net-zero carbon production plan for the future. This announcement came as a result of the COP27 climate summit in Egypt which experts hope will create a trend of carbon-conscious operations.
November 6, 2022Kuwait appoints new CEOs for state oil companies
Ahmed Jaber al-Aydan was appointed as CEO of Kuwait Oil Company, and Wadha al-Khateeb as CEO of Kuwait National Petroleum Company. New leaders were also chosen for Kuwait Integrated Petroleum Industries Company (KIPIC) and other state companies in the sector.
November 6, 2022Saudi energy ministry approves feedstock allocation for Alujain’s $2bln petrochemical project
Saudi industrial group Alujain Corporation announced on Sunday that it has received the Ministry of Energy’s nod on feedstock allocation for establishing a new petrochemicals project in Yanbu Industrial City at a total cost of 7.5 billion Saudi riyals ($2 billion). The project, upon completion, will produce more than 600,000 tonnes/year of polypropylene, polypropylene compounds, and specialized construction materials from polypropylene derivatives, in addition to about 25,000 tonnes/year of saleable hydrogen.
November 4, 2022ADNOC, Baker Hughes Sign Agreement To Explore New Technology for a Clean Energy Future
Baker Hughes, an energy technology company, and the Abu Dhabi National Oil Company (ADNOC) signed a strategic technology collaboration agreement during ADIPEC 2022 to explore collaboration opportunities around research and development (R&D) for technologies that can help drive a sustainable energy future in the UAE. “ADNOC is accelerating the development and deployment of advanced technologies to provide smarter, lower carbon, energy to the world. Together with Baker Hughes, we will focus on finding innovations that help the UAE achieve its Net-Zero by 2050 strategic initiative, while also generating In-County Value,” said Sophie Hildebrand, ADNOC Group Chief Technology Officer.
November 3, 2022Moody’s upgrades Qatar outlook on higher energy prices
Ratings agency Moody’s has upgraded Qatar’s credit outlook to positive from stable, citing higher energy prices expected to bring significant budget surpluses that will help the Gulf state to manage its medium-term debt profile. “The change of outlook to positive reflects the prospect that the improvement in Qatar’s debt metrics, observed in 2021-22 as a result of elevated energy prices, can be sustained in the medium term even if oil and natural gas prices moderate over the next few years,” Moody’s said. High energy prices have so far translated into a budget surplus of almost 50 billion Qatari riyals ($13.7 billion), the Emir Sheikh Tamim bin Hamad al-Thani.
November 3, 2022Kuwait’s Kufpec offers LNG cargo from Australia’s Wheatstone plant
Kuwait Foreign Petroleum Exploration Co (KUFPEC) has issued a tender offering a liquefied natural gas (LNG) cargo for loading in Australia in December. The cargo is offered on a free-on-board (FOB) basis from the Wheatstone plant in Australia for Dec. 19 to 24 loading. KUFPEC, the foreign energy exploration arm of Kuwait, is a stakeholder in the Chevron-operated Wheatstone LNG project.
November 2, 2022Iran To Sign $40 Billion Deal With Russian Gas Giant
A senior Iranian diplomat was quoted saying that Iran expects to sign an energy agreement with Russian gas giant Gazprom worth around $40 billion. “We have concluded an agreement worth about $6.5 billion with Gazprom. We hope that the remaining agreements totalling to $40 billion will be signed (in December). The negotiations are currently ongoing,” said Mahdi Safari, Iranian Deputy Foreign Minister for Economic Diplomacy. Iran’s Petroleum Minister Javad Owji said at the bilateral forum that the public and private sectors in both countries are looking to “neutralize the sanctions.”
GIF Energy Tracker
Saudi Energy Ministry grants first license for LPG cylinder vending machines
Saudi Arabia is making significant strides toward realizing its objectives in the distribution system for dry gas and liquefied petroleum gas for residential and commercial applications, propelled by the Ministry of Energy. The ministry granted the inaugural license within the Kingdom for the vending machine-based sale of LPG cylinders, reported the Saudi Press Agency. This development underscores Saudi Arabia’s commitment to innovation and convenience in its energy distribution efforts.
Iraq To Import Natural Gas From Turkmenistan
Iraq will begin natural gas imports from Turkmenistan in the near future after the two countries signed a preliminary agreement for gas supplies to help meet the power generation needs of OPEC’s second-largest producer after Saudi Arabia. Iraq imports gas and electricity from Iran but has had trouble paying for those because of the U.S. sanctions on Iran’s energy sector. The U.S., while endorsing the Iraq-Iran energy deals to keep Iraq supplied with power and gas, has been pushing Baghdad to reduce its reliance on Iranian energy imports.
Saudi Arabia will likely roll over 1 mln bpd cut into October, analysts say
Saudi Arabia will likely roll over a voluntary oil cut of 1 million barrels per day for a third consecutive month into October, five analysts said, amid uncertainty about supplies and as the kingdom targets drawing down global inventories further. OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, agreed on a broad deal in early June to curtail supplies until the end of 2024. Saudi Arabia at the time announced the additional voluntary cut which brought its oil production to a multi-year low of 9 million bpd.
Masdar to build 500MW of solar capacity in Ethiopia
State-owned UAE renewable energy company Masdar has signed an agreement with Ethiopia to build 500MW of new solar capacity in the country. The agreement was signed by Sheikh Mohammed bin Zayed Al Nahyan, president of the UAE, Sheikh Mansour bin Zayed Al Nahyan, vice-president of the UAE, and Abiy Ahmed Ethiopian prime minister, as part of the UAE leadership’s visit to Ethiopia. The involvement of foreign companies, such as Masdar, could be crucial to this end. A UN report noted that Ethiopia would require US$5.7 billion of investment to reach its 2030 energy goals, so overseas investment could be necessary to meet these targets.
Saudi Aramco Looks To Expand Downstream Business In China
Saudi Aramco looks to further bolster its downstream presence in the world’s top crude oil importer, China, the oil giant’s Downstream President, Mohammed Al Qahtani, has said. “China is strategically important to our business growth in Asia and worldwide, and we will remain a reliable source of long-term oil supply,” Al Qahtani was quoted as saying by China Daily. Oil product demand in China has seen a robust recovery, the Saudi executive said, reiterating Aramco’s view that China will drive global oil demand growth and is of strategic importance to the world’s largest crude oil exporter, Saudi Arabia.
Oman’s Nama Power To Launch 1000 MW Solar PV Project By 2029
Nama Power & Water Procurement Company (Nama PWP), the exclusive purchaser of power and water output in Oman, has unveiled plans for a substantial new solar PV-based Independent Power Project (IPP) named ‘Solar PV IPPs 2029’. Scheduled for launch in 2029, this ambitious venture will encompass a combined capacity of 1000 MW, consisting of two IPPs with individual capacities of 500 MW each. The procurement strategy for this project follows a similar approach to recent awards, including the Manah I & II Solar PV IPPs, which secured a total of 500 MW capacity for simultaneous development at a site in the Wilayat of Manah.
UAE banks financed $51.8bn worth of green projects
Six Emirati banks have supported the green energy initiatives in the UAE by funding projects worth 190 billion dirhams ($51.8 billion) in 2022, according to the UAE Banks Federation. The significant increase in green financing by UBF members aligns with the Central Bank of the UAE’s Sustainable Finance Working Group guidelines and overarching sustainability goals.
ADNOC Gas awards $3.6bln contract to expand certain infrastructure
ADNOC Gas has awarded a contract worth $3.60 billion, equivalent to AED 13.10 billion, to the joint venture (JV) between National Petroleum Construction Company (NPCC) and Tecnicas Reunidas S.A. to increase the listed firm’s gas processing infrastructure nationwide, according to a press release. The contract, which was announced on 9 August 2023, covers the commissioning of additional gas processing facilities to help with enabling utilized supply to the Ruwais Industrial Complex. More than 70% of the award contract value will benefit the UAE’s economy under ADNOC’s successful In-Country Value (ICV) program, which backs domestic economic growth and diversification.
Oman’s MTCIT unveils massive $350 million Bitcoin mining facility in Salalah Free Zone
The Ministry of Transport, Communications, and Information Technology (MTCIT) in Oman has unveiled a state-of-the-art Bitcoin mining and data hosting facility within the Salalah Free Zone. Valued at approximately $350 million (RO 135 million), the newly established facility marks a significant stride toward positioning Oman as a global data hosting and mining epicenter. This recent development is not the first of its kind. Oman’s dedication to this burgeoning industry becomes even more evident as the government opens a second cryptocurrency mining facility, estimated at $390 million. The combined investment of around $740 million from both the government and private sector could pave the way for Oman to become a thriving hub for data hosting and mining on a global scale.
Japan announces setting up 7 new projects in Iraq
The Japanese Ambassador to Iraq, Futoshi Matsumoto, announced on Sunday that the Japanese government is setting up seven new projects in Iraq. He indicated that two projects are scheduled to be carried out in 2023, clarifying that the first is the Basra Refinery Upgrading Project and the second is a water desalination project in Muthanna governorate. Matsumoto elaborated that the cost of the project in Muthanna is $300 million, noting that it is a very important project to develop the infrastructure in Iraq.
Two major Saudi solar projects reach financial close with investment of $2.4bn
Two major solar photovoltaic power projects in Saudi Arabia have achieved financial close with a total investment of $2.37 billion. The projects are being developed by energy company Acwa Power, the Water and Electricity Holding Company, or Badeel – which is owned by the Public Investment Fund – and the Saudi Aramco Power Company. The Al Shuaibah PV 1 and Al Shuaibah PV 2 plants in Makkah province will have a capacity of 600 megawatts and 2.031 gigawatts respectively, and are capable of powering about 450,000 households, the Saudi Press Agency reported on Sunday. The kingdom’s NREP is led and supervised by the Ministry of Energy, and the PIF aims to develop 70 percent of the program’s target capacity by 2030.
Kuwait’s Shipbuilding Co., KNPC sign $298.8mln contract
Kuwait-based Heavy Engineering Industries & Shipbuilding Company (HEISCO) said Sunday it has signed a contract worth KD 91.7 million (around USD 279.6 million) for a mechanical maintenance service at the Mina Abdullah Refinery (MAB) project with a duration of 63 months. The project’s revenue will be shown in annual financial statements from 2023 to 2028, the company said in a disclosure on the website of the Kuwaiti stock exchange, known as Boursa Kuwait.
Hungary will receive LNG from Qatar starting in 2027
Hungary can begin to receive shipments of liquefied natural gas (LNG) gas from Qatar in 2027, Hungarian Foreign Minister Peter Szijjarto told a news conference on Friday. Demand for LNG has skyrocketed following Russia’s invasion of Ukraine, giving Qatar and the United States significantly larger roles in supplying gas to Europe, and forcing landlocked countries, such as Hungary, to seek to diversify their energy sources. Qatar, the world’s biggest LNG exporter, has no spare export capacity until 2027, the foreign minister added.
Iran To Bring 67 New Oil And Gas Projects Online By March
67 new oil and gas projects worth some $15 billion should be operational in Iran by next March, the country’s first vice president, Mohammad Mokhber, has said. Last year, Iran completed $12 billion worth of started but unfinished projects in the oil and gas field, Iran Front News reported. Iran is currently producing some 3.18 million barrels of oil daily but wants to boost this to 3.3 million bpd by the end of the month. By the end of September, oil output could reach 3.5 million bpd, according to the head of the National Iranian Oil Company.
Qatar Energy raises Oct al-Shaheen oil term price to 4-month high
Qatar Energy raised the price for term cargoes of al-Shaheen crude oil loading in October to a four-month high as demand for Middle Eastern oil increased after Saudi Arabia prolonged its voluntary supply cut. The October price was set at $2.10 a barrel above Dubai quotes, up 42 cents from September’s $1.68 a barrel and reaching the highest since June.
Hydrogen Market Poised to Reach $410.6 billion by 2030 Globally, at a CAGR of 7.8%
Hydrogen Market size is expected to reach USD 410.6 billion by 2030, at a CAGR of 7.8% during the forecasted period, as per the recent study by MarketsandMarkets™ A.global push to reduce carbon emissions and combat climate change has led to an increased focus on clean and sustainable energy sources and drive the demand for Hydrogen Market. This report segments the Hydrogen Market based on application into three segments: energy, mobility, and chemical & refinery. The mobility segment is expected to be the fastest growing during the forecast period.
Abu Dhabi’s ADNOC Gas signs 5-yr LNG supply deal with Japex
Abu Dhabi’s ADNOC Gas said on Thursday it has signed a five-year deal to supply liquefied natural gas (LNG) to Japan Petroleum Exploration Co (Japex). The deal is valued at between $450 million to $550 million, ADNOC Gas said, without providing LNG volumes or timing for the shipments to start. The deal follows Japanese Prime Minister Fumio Kishida’s visit to the UAE and other Gulf states in July, which focused on securing energy supplies for Japan, which remains highly dependent on oil and gas imports.
Iraq receives 5th batch of $1.4 billion loan from Japan to upgrade Basra Refinery
The Japanese Ambassador to Iraq, Futoshi Matsumoto, and the Iraqi Minister of Finance, Taif Sami, together with the Japan International Cooperation Agency (JICA), signed and exchanged notes concerning the provision of the fifth batch of the Official Development Assistance (ODA) loan worth $1.4 billion for the Basra Refinery Upgrading Project, the biggest Japanese project in Iraq. The project will also contribute to modernizing Iraq’s energy industry and paving a way to attract the private sector to Iraq’s energy sector, in addition to reducing air pollution by reducing sulfur content in oil products, according to the statement.
Saudi-based Energy Capital Group announces first close of $150 mln fund
Saudi Arabia-based investment company Energy Capital Group (ECG) has announced the first close of its $150 million fund that targets the creation of national leaders in energy and energy-related technologies. The Fund was anchored by the Jada Fund of Funds. The successful fundraising effort is a validation of ECG’s strategy that aims to create and develop industrial services and technology-oriented National Champions across the energy sector in line with Saudi Arabia’s Vision 2030 and Aramco’s IKTVA program.
Bahrain signs deals to set up 72-megawatt solar park as part of net zero push
Bahrain has signed agreements to set up a solar park project with a capacity of 72 megawatts as the kingdom looks to achieve net-zero emissions by 2060. The project is part of Bahrain’s renewable energy plan, which aims to increase the share of clean energy in the country’s electricity mix to 5 percent by 2025, and 20 percent by 2035, the Bahrain News Agency reported on Tuesday. Investment in clean energy is set to reach $1.7 trillion this year, outpacing spending on fossil fuels, as countries look to address potential energy shortages, according to the International Energy Agency.
Iran Inaugurates 10MW Solar Power Plant In Semnan Province
Iran launched a new solar power plant in Semnan Province on August 11, 2023. The plant, which is located in the city of Damghan, has a capacity of 10 megawatts and is expected to generate enough electricity to power around 10,000 homes. The new solar power plant is the latest in a series of renewable energy projects that Iran has launched in recent years. In 2022, Iran inaugurated a 100-megawatt wind farm in the Khuzestan Province. In 2021, Iran signed a deal with France to build a 1 gigawatt solar power plant in the Kerman Province. Iran’s efforts to increase its reliance on renewable energy are part of a broader effort to reduce its carbon emissions.
World’s first liquefied hydrogen carrier to arrive in Oman on August 14
The world’s first liquefied hydrogen carrier, Suiso Frontier, will moor at the Sultan Qaboos Port in Muscat on August 14. The ship’s main mission is to introduce Japanese technology that will pave the way for nations to use hydrogen (clean energy), seek cooperation to transport large quantities of hydrogen, and establish global supply chains on a large-scale, fully commercial using it as a preferred carrier. The major milestone in the US$355 million Hydrogen Energy Supply Chain (HESC) project is the first in the world to extract, liquefy, and transport LH2 by sea to an international market.
UN completes removal of oil from decaying tanker off Yemen
The United Nations has successfully removed over 1 million barrels of oil from the decaying Safer supertanker off Yemen’s Red Sea coast, preventing a potential environmental catastrophe. The tanker, inactive due to the Yemen conflict since 2015, posed a threat of oil spillage four times worse than the Exxon Valdez disaster. The UN raised over $120 million for the operation, employing a second tanker, standby aircraft with chemicals, and involving multiple insurers.
CNPC’s Daqing unit awarded $194mln drilling contract in Iraq
China National Petroleum Corp’s drilling subsidiary, CNPC Daqing Drilling Engineering Co, has secured a $194 million contract to drill wells with two rigs in Iraq’s Rumaila oilfield. It’s the largest overseas contract for the subsidiary in five years. The move is in line with Iraq’s plan to boost oil production capacity to 7 million barrels per day by 2027.
Green Hydrogen Market to Surpass USD 385 Billion by 2030
The global Green Hydrogen Market reached $156 billion in 2022 and is predicted to grow to $385 billion by 2030, with a projected CAGR of 11.98% from 2023 to 2030. Green hydrogen, produced through renewable-powered electrolysis, is gaining prominence in the clean energy transition due to its sustainability and potential to mitigate climate change.
Saudi Arabia to power green hydrogen project with 2.2 GW of solar
China’s Sungrow will supply inverter technology for a 2.2 GW solar plant in Oxagon, which will be the Middle East’s largest PV array. The solar plant will power a green hydrogen facility and employ a modular inverter solution with energy storage and high protection capability. The project is backed by NGHC, a joint venture between ACWA Power, Air Products, and Neom. The green hydrogen plant aims to produce up to 600 tonnes of carbon-free hydrogen daily using renewable energy sources by the end of 2026.
Iran Plans To Boost Oil Output To 3.5 Million Bpd Before October
Iran’s National Iranian Oil Company (NIOC) plans to increase oil production by 250,000 barrels per day (bpd), aiming for a total output of 3.5 million bpd by the end of next month. Since President Ebrahim Raisi’s inauguration in August 2021, Iranian oil production has risen from 2.2 million bpd to 3.1 million bpd in July 2023, marking the highest level in nearly five years. This growth follows a history of fluctuation due to factors like sanctions, with the last time Iran produced 3.5 million bpd estimated to be in October 2018.
Saudi Arabia’s SFD Supports Belize’s Solar Energy Plant Project With $77 Million Loan
The Saudi Fund for Development (SFD) CEO, H.E. Sultan Al-Marshad, signed a $77 million loan agreement with Belize’s Prime Minister, Hon. John Briceño, to fund a 60 MW solar energy plant project. The project aims to reduce emissions, create jobs, enhance energy reliability, and contribute to Belize’s sustainable development. The initiative aligns with UN Sustainable Development Goals and underscores SFD’s commitment to environmental projects and international cooperation while strengthening SFD’s presence in the Caribbean and Central America.
Plans for Durra gas field going ahead
Aramco’s CEO, Amin Nasser, recently confirmed that the Durra gas field joint project with Kuwait is progressing as planned, emphasizing no issues in engineering and development. This comes after Iran expressed willingness for technical and legal dialogue to resolve the Durra field matter, located in the neutral zone shared by Saudi Arabia, Kuwait, and Iran. Both Saudi Arabia and Kuwait assert joint ownership of the field and call on Iran to negotiate the eastern border of the submerged area, adhering to international law and good neighborliness.
UAE to establish blockchain-powered national carbon credit system
The UAE has entered an initial agreement with blockchain company Venom Foundation and the UAE-based Industrial Innovation Group (IIG) to establish a national carbon credit system using blockchain technology. The partnership aligns with the UAE’s ambitious carbon emission reduction goals as blockchain technology ensures secure and transparent carbon credit transactions, allowing the UAE’s Ministry of Climate Change and Environment to issue and trade credits with businesses to offset emissions.
UAE Ministry of Climate Change signs pact to develop national system for carbon credits
The UAE’s Ministry of Climate Change and Environment has partnered with the UAE-based Industrial Innovation Group (IIG) and Venom Foundation to establish a national carbon credits system using blockchain. This agreement, aligned with the UAE’s stricter emission reduction goals and climate neutrality target, focuses on transparently managing carbon credits via blockchain, particularly in the gas sector. The partnership aims to enhance sustainability and biodiversity, with the potential to boost the UAE’s carbon market. The move aligns with a growing trend in the region, emphasizing green economy and emissions reduction initiatives.
Saudi Arabia to ramp up oil investments in China as it competes with Russia
Despite a 38% drop in Q2 profit due to lower oil prices and production cuts, Saudi Aramco will continue investing in China, its primary oil customer. The company plans to expand its presence in China, focusing on both crude and chemical growth. Saudi Arabia has heavily invested in Chinese refineries, recently acquiring a 10% stake in Rongsheng Petrochemical. Aramco’s commitment to China comes as it faces competition from Russia for Asian market share, as Russian oil sales to China have surged, challenging Saudi Arabia’s position.
Qatar reports $10.4 billion contract awards amid massive gas expansion
In Q2 2023, Qatar’s contract awards surged to $10.4 billion, 8.3 times higher than the same period in 2022. The gas sector dominated, accounting for 97% of awards, with a remarkable 16-fold increase to $10 billion in which QatarEnergy awarded a $10 billion EPC contract for the North Field South megaproject. The GCC region’s project awards hit $49.7 billion, a five-year high, led by Saudi Arabia, UAE, and Qatar. MEED Projects predicts 2023 GCC contracts to exceed $110 billion, with substantial growth in Saudi Arabia, Qatar, and the UAE.
Pakistan shelves multi-billion dollar gas pipeline project with Iran under pressure from US Report
Pakistan has reportedly put its multi-billion dollar gas pipeline project with Iran on hold due to pressure from the US sanctions on Iran’s nuclear program. Originally conceived as an India-Pakistan-Iran pipeline, India left the project, making it bilateral between Pakistan and Iran. The project, aimed at importing cheap energy, is now suspended under “Force Majeure and Excusing Event” terms due to external factors outside Pakistan’s control. This pause comes as Pakistan seeks financial stability from the IMF.
OPEC+ panel keeps policy unchanged against backdrop of stronger oil market
OPEC+’s ministerial panel kept the group’s current oil output policy unchanged after a Saudi decision to extend its voluntary production cut into September boosted oil prices. The committee highlighted its intent to closely assess market conditions and urged members to maintain full compliance with output cut pledges. Oil prices surged more than 14% in July due to tighter supply and growing demand. Saudi Arabia extended its voluntary 1 million barrels per day output cut into September, which was matched by Russia cutting oil exports by 300,000 bpd.
US considers deploying troops to commercial vessels in Gulf amid Iran tensions
The US is contemplating deploying troops to commercial vessels in the Persian Gulf as a response to Iran’s seizure of tankers in the area. This move is being considered amid stalled talks to revive the 2015 nuclear deal. The potential deployment of an additional 2,500 marines follows an increased US military presence in the Gulf, including F-35 fighter jets and a marine expeditionary force. The plan, not yet finalized, would need consultation with Gulf allies and vessel owners. Iran’s recent tanker seizures have prompted concerns, with the US facing pressure to enhance security in the region.
ADNOC to acquire 30% equity stake in Absheron gas field
Abu Dhabi National Oil Company (ADNOC), State Oil Company of Azerbaijan (SOCAR), and TotalEnergies announced ADNOC’s acquisition of a 30% stake in the Absheron gas field. ADNOC’s move into the Caspian region enhances its international gas presence and UAE-Azerbaijan energy partnership. ADNOC will hold 30%, while SOCAR and TotalEnergies keep 35% each. This partnership facilitates ADNOC’s entry into European and Central Asian gas markets and supports lower-carbon energy goals.
Saudi Arabia, Kuwait reaffirm rights to natural resources in Durra gas field
Saudi Arabia and Kuwait have reiterated their joint ownership of natural resource rights in the Gulf’s Durra gas field. Both countries are also urging Iran to engage in negotiations regarding the demarcation of the eastern border of the Gulf’s maritime “Divided Area.”
Iran Boosts Oil Output To 3.1 Million Bpd
Iran’s oil production has reached its highest level in nearly five years at 3.1 million barrels per day (bpd), a significant increase from the 2.2 million bpd when President Ebrahim Raisi assumed office in August 2021. This surge in output has been primarily driven by stronger exports to China, Venezuela, and Syria. Despite U.S. sanctions, Iran has continued to export oil, with private Chinese refiners increasing their purchases of Iranian crude due to competition for Russian oil. Iran’s second-quarter crude and condensate exports averaged 1.35 million bpd, the highest since the 2018 sanctions.
UAE state energy company brings forward net zero target to 2045
The UAE’s Adnoc has advanced its emissions reduction goal to achieve net zero emissions from its operations by 2045, ahead of the COP28 climate talks in which its CEO will play a key role. Adnoc’s ambitious target also includes eliminating methane emissions by 2030. However, the commitment only addresses Scope 1 and 2 emissions, not the more significant Scope 3 emissions from fuel combustion. Adnoc plans to achieve its goals by using renewable energy and carbon capture, pledging $15 billion for decarbonization initiatives between 2023 and 2027.
Kuwait Petroleum Corporation posts net profit of $8.5 billion in last fiscal year
Kuwait Petroleum Corporation (KPC) and its subsidiaries reported a net profit exceeding 2.6 billion Kuwaiti dinars ($8.48 billion) for the last fiscal year, the highest in a decade. KPC’s CEO, Nawaf Saud al-Sabah, announced the achievement, revealing that the company had also increased its oil production capacity by 200,000 barrels per day (bpd) to reach 2.8 million bpd in the same period.
Saudi Arabia’s sovereign wealth fund eyes investments worth $5bln in Oman
Saudi Arabia’s Public Investment Fund (PIF) has signed a Memorandum of Understanding (MoU) with the Oman Investment Authority (OIA) for investments totaling $5 billion in Oman. The MoU aims to enhance cooperation and investment between the entities, focusing on Oman’s growing economy. The agreement includes the establishment of the Saudi Omani Investment Company (SOIC), a PIF-wholly owned company, to invest up to $5 billion in various promising sectors in Oman. The partnership aligns with both nations’ economic visions and aims to enhance economic integration and development in the region.
NPCC lands $219mln Adnoc Offshore EPC project contract
The National Petroleum Construction Company (NPCC) has secured a contract worth AED 805 million ($219 million) from Adnoc Offshore. NPCC will provide engineering, procurement, and construction (EPC) services for Adnoc’s pipeline replacement project, expected to be completed in 32 months. The scope involves replacing 125 km of the 20′ main oil line from Umm Lulu to Zirku Island as part of Adnoc’s efforts to enhance its oil and gas pipeline infrastructure in Abu Dhabi.
Saudi Arabia expected to extend voluntary oil cut for September
Saudi Arabia is likely to extend its voluntary 1 million barrels per day oil output cut for another month, through September, to support the oil market. OPEC+ agreed to limit oil supply through 2024, with Saudi Arabia implementing additional cuts. Analysts suggest a phased reduction of the cut over several months. Oil prices, around $84 per barrel, have been supported by supply tightening and China’s economic stimulus. The Saudi Energy Ministry did not comment. OPEC+ has been restraining supply since late 2022.
Saudi Arabia invests USD 10 billion to build Pakistan’s largest oil refinery
Four Pakistani state-owned petroleum companies – OGDCL, PSO, PPL, and GHPL – have signed a MoU with Saudi Arabia to construct Pakistan’s largest oil refinery, investing $10 billion in Gwadar Port. The refinery will have a 300,000 barrels per day capacity. The move aims to facilitate Saudi investment in Pakistan, with the state-owned enterprises participating through equity.
Qatar Ordering Over $9B of LNG Carriers from Three South Korean Companies
South Korean shipbuilders, including Hyundai Heavy Industries, Hanwha Ocean Company, and Samsung Heavy Industries, are finalizing a $9.4 billion contract to construct 40 liquid natural gas (LNG) carriers for Qatar. The deal, to be signed between September and October, allocates 16 orders to Samsung, 14 to Hanwha, and 10 to HD Hyundai. Each vessel is estimated at $250 million, and negotiations are underway for construction details. This marks the second LNG carrier agreement between South Korean firms and Qatar, with a previous deal in 2021 encompassing 54 orders.
Iraq reveals details of $27 billion deal with TotalEnergies
Iraq signed a $27 billion deal with TotalEnergies in an effort to enhance its crude oil production. Part of the deal signed includes investing in a seawater desalination facility to produce 5 million bpd. TotalEnergies will also construct a solar power plant that has the capacity to produce 1,000 MW.
Saudi Oil Revenue Drops to Lowest Since 2021 as Prices Falter
Oil revenue in Saudi Arabia in May 2023 hit its lowest point since September 2021. The amount of revenue dropped at a rate of roughly 37.7% each year. This sharp decline in oil revenue is due to production cuts led by OPEC+.
Kuwait’s KNPC posts record-breaking $3.3 billion profit
Kuwait National Petroleum Co (KNPC) has hit a record-high profit valued at $3.31 billion for 2022-23. The company’s profit for this year was 198% higher than the previous cycle. This sharp increase in profit is largely linked to the rise in oil prices and the construction of the refineries in Mina Al Abdullah and Mina Al Ahmadi ports.
Heisco lands $300mln Kuwait refinery maintenance deal
Heisco signed a $300 million contract with KNPC to provide maintenance services at the Mina Abdullah Refinery for a 5-year period. These include oil and gas, petrochemicals, power, pressure equipment manufacturing, shipbuilding and repair, dredging and marine construction, civil construction and maintenance as well as other industrial services including Heavy Industry projects.
UAE says current OPEC+ actions sufficient for now
UAE Energy Minister, Suhail al-Mazrouei, stated to Reuters that, “what we are doing is sufficient as we say today,” referring to the recent oil production cuts implemented by OPEC+. The next OPEC+ meeting is scheduled for November 2023.
COP28 and IEA convene first high-level dialogue on building a 1.5°C-aligned energy transition
A series of high-level dialogues took place on the sidelines of the 14th Clean Energy Ministerial between the COP28 UAE Presidency and the International Energy Agency (IEA) regarding creating a 1.5°C-aligned energy transition. The United Nations Framework Convention on Climate Change (UNFCCC) backed the initiative.
Saudi Arabia intends to continue to be a leader in producing, exporting clean hydrogen: Energy minister
Saudi Energy Minister, Prince Abdul Aziz bin Salman, stated the Kingdom is committed to becoming a world-leading producer and exporter of clean hydrogen. Riyadh is scheduled to host the Middle East and North Africa Climate Week (MENACW) 2023.
Russia, Saudi oppose G20 proposal to triple green energy capacity
Saudi Arabia, Russia, and China rejected a proposal to triple G20 nations’ green energy production by 2030. The proposal was put forward by the G7 countries.
Saudi Aramco Buys $3.4 Billion Stake In Chinese Petrochemical Firm
Saudi ARAMCO invested a 10% stake in Rongsheng Petrochemical Co Ltd, a Chinese petrochemical firm, for a value of $3.4 billion.
Oman fund invests in Italian lithium-free energy storage
Oman’s sovereign wealth fund announced its investment in Energy Dome, an Italian renewable energy storage firm. The firm’s estimated total funds is valued at roughly $78.65 million. It signed an MoU with the Omani sovereign wealth fund to look into investment opportunities in the Sultanate.
Oman Electricity Transmission Company Inaugurates Saih Al-Khairat Station In Dhofar Governorate
The Oman Electricity Transmission Company (OETC) announced the completion of the Saih Al-Khairat Station in Dhofar Governorate. The completed project falls under Oman’s vision to reach carbon neutrality by 2050 as the station is projected to cut carbon emissions by roughly 114,000 tons annually.
Iran Initiates 1,000 MW Solar Park In Qazvin
Mahmoud Kamani, Deputy Minister of Energy and head of Iran’s Renewable Energy and Energy Efficiency Organisation (SATBA) has stated that Iran is set to construct a new 1,000-MW solar array in Qazvin as its first “Solar Park.” The initiative aims to double renewable energy production once fully operational. The country aims to be part of the global “green transition” and is investing in solar energy and electric vehicles. Plans for constructing solar power plants in other cities, generating electricity for SATBA, green industrial electricity exchange, or cryptocurrency mining were also unveiled.
UAE and Japan sign 23 new MoUs
The UAE-Japan Business Forum concluded with the two sides signing 23 MoUs to enhance economic ties and investments across various sectors, including investment, trade, artificial intelligence, energy, renewables, and advanced technology. The UAE is Japan’s second-largest trading partner in the region when it comes to imports and exports. There are currently 10,000 Japanese companies operating in the UAE with an estimated investment value of $14 billion.
Abu Dhabi’s Masdar set to raise $750 mln with green bonds
Masdar, an Abu Dhabi renewable energy company, is planning to raise $750 million from its first green bond issuance, receiving over $4.2 billion in demand. The bonds were launched at a spread of 115 basis points over U.S. Treasuries, lower than the initial guidance of 150 bps. Gulf issuers are increasingly turning to green bonds and sustainability-linked debt to enhance their environmental credentials.
Qatar energy minister says natural gas needed for ‘realistic’ energy transition
Qatar’s energy minister stated that natural gas is critical for global efforts to transition toward clean energy sources. He included that Qatar Energy will provide 40% of the world’s LNG by 2029. Qatar also aims to cut greenhouse gas emissions by roughly 30%.
Oman Oil Marketing Company to add 14 new stations in Saudi Arabia
Oman Oil Marketing Company plans to add 14 stations in Saudi Arabia, making its total number of stations in the Kingdom reach 26. The plan was announced after Oman Oil Marketing Company signed a memorandum of cooperation with Excellence Fuel Company, a Saudi real estate investment and development firm.
Saudi Arabia’s Crude Oil Exports Slumped Below 7 Million Bpd In May
Saudi Arabia’s crude oil production witnessed a sharp drop of 7 million bpd during the month of May. This decline is part of OPEC+ efforts to cut oil production.
Indian Oil signs long term LNG import deals with ADNOC LNG, TotalEnergies
Indian Oil Corp signed LNG import deals with ADNOC LNG and TotalEnergies. The deals were announced during Indian Prime Minister Modi’s most recent visits to the UAE and France. Under the deal, ADNOC LNG will supply Indian Oil Corp with 1.2 million metric tonnes per year (tpy) of LNG for 14 years. TotalEnergies to supply the Indian company with 0.8 million metric tonnes per year (tpy) of LNG for 10 years.
Iraq sets up new unit to oversee $17bln EU road, rail project
Iraq announced the creation of a designated unit to oversee the development of the ‘Route of Development’ project that aims to connect Europe with the Gulf states. The project is estimated to cost $17 billion. The project will be 1,200 km long, extending from the country’s northern borders with Turkey to the Gulf region.
ACWA Power consortium commits $2.2bn for Al-Shuaibah solar projects
Saudi Arabia to build the world’s largest solar project with ACWA Power at an estimated cost of $2.2 billion. The project is part of the Kingdom’s 2030 Vision to rely on more sustainable energy sources. Saudi Arabia aims to make renewable energy accountable for 50% of the nation’s power-generating capacity by 2030.
Iran to soon start power exchange with Russia: energy minister
Iran’s Energy Minister, Ali-Akbar Mehrabian, announced that the country will soon commence electricity exchange with Russia through Azerbaijan. Iran has been considering two routes, one via Azerbaijan and the other through Armenia and Georgia, for this exchange, and negotiations for the projects’ initiation are in their final stages.
Iraq-Iran gas-for-oil barter would likely violate US sanctions
U.S. officials stated the Iranian and Iraqi government’s intention to implement an Iranian gas for Iraqi oil barter is most likely to violate U.S. imposed sanctions on Iran. The U.S., however, could issue a waiver to allow the barter to take place.
UAE targets 50% electric vehicles on roads by 2050
The UAE minister of energy and infrastructure, Suhail bin Mohammed Al Mazrouei, announced that his country aims to have 50% of all vehicles on the road be electric by 2050. Al Mazrouei included that this serves the UAE’s initiative of reducing energy consumption by 40% by 2050.
Dubai-based AMEA Power secures $75mln from Japan’s SoftBank
Japanese entity SoftBank will become the first external investor in AMEA Power, which was previously funded by AlNowais Investments. AMEA Power, established in 2016, has already completed projects in Africa, the Middle East, and emerging markets, with a generating capacity of 1.45 GW. The UAE firm plans to expand into new markets in the Middle East, CIS, and Southeast Asia. The investment will help accelerate their strategic ambitions and develop projects in the power, water, and green hydrogen sectors.
Saudi Arabia imports record Russian fuel oil in June as trade grows
Amid the European Union’s ban on Russian products, Saudi Arabia has increased fuel oil imports from Russia. The kingdom’s imports reached 2.86 million metric tons in the first half of 2023, surpassing the total imports of 1.63 million metric tons for the entire 2022. The majority of the high-sulfur fuel oil cargoes end up in Saudi oil-fired power plants. The move comes as Saudi Arabia extends its output cut by an extra 1 million barrels per day in August, aligning with the OPEC+ agreement. The country is expected to boost fuel oil exports in July to capitalize on higher margins.
OPEC oil export revenues surpass $870 billion, highest in decade
In 2022, the OPEC countries experienced a significant increase in crude export revenues, reaching the highest level in almost a decade, with $873.57 billion, attributed to the Russia-Ukraine war and production boosts by key alliance members. Despite a surge in oil prices post-conflict, prices stabilized and remained relatively low due to an uncertain economic outlook and slow post-pandemic recovery, leading to reduced demand. OPEC believes the industry requires $12.1 trillion in investments until 2045, while the International Energy Agency predicts declining fossil fuel demand after 2026 due to the rise of electric vehicles and biofuels.
First LNG-powered container ship reaches Saudi East Coast
40% of all new LNG will come from Qatar by 2029, energy minister says
Qatar’s energy minister stated that his country will supply 40% of all new LNG production by 2029. The country’s LNG expansion efforts will increase production by 64% by 2027. QatarEnergy aims to reduce greenhouse gas emissions by 25% by 2030.
Oman’s oil exports reach 128mln barrels by May end
Oman’s oil exports totaled 128,070,300 barrels by the end of May. China was the biggest importer of Omani oil, at 117,120,500 barrels, followed by Japan (4,783,500 barrels) and India (2,716,200). Gas production has also witnessed a noticeable increase, with a total of 21,833.1mn until the end of May, a 3.9% increase from the previous year.
Iraq and TotalEnergies sign deal for $27bn worth of energy projects
TotalEnergies and Iraq signed a $27 billion contract for the purpose of enhancing oil production. Iraq will own 30% of the project, Total Energies will own 45%, while QatarEnergy will have 25% ownership. There is an initial $10 billion dollar investment that will be dedicated to the Gas Growth Integrated Project and the creation of a seawater treatment plant.
Iran launching $1.43bn petrochemical plant in Gachsaran
Iran is set to inaugurate a major petrochemical plant, Gachsaran Petrochemicals, which relies on over 80% domestically produced equipment. The project, costing €1.3 billion, will increase Iran’s ethylene production by 1 million metric tons per year. The plant will be supplied with 1.25 million metric tons per day of ethane gas through a pipeline from Bidboland Gas Refinery. The launch of the plant will create 1,000 direct jobs and 3,000 jobs in the supply chain. Despite US sanctions, Iran has focused on utilizing domestic resources to expand its oil and gas sector.
Kuwait, Saudi to expedite ‘neutral zone’ oil projects
Kuwait and Saudi Arabia reached an agreement to speed up the process of finishing up their joint oil projects in the ‘neutral zone’. The Kuwaiti-Suadi join permanent committee is set to monitor the progress on this agreement. The neutral zone includes the onshore Wafra and the offshore Khafji oil fields.
Qatar to supply UAE’s ENOC with 120 mil barrels of condensate over 10 years starting in July
QatarEnergy signed a contract to provide ENOC with 120 million barrels of condensate over a 10-year period. When the North Field East and the North Field South LNG expansion project are complete, QatarEnergy will increase its condensate supply to ENOC. Qatar will become the top LNG exporter once the project is complete.
Toyota Tsusho JV to build $100mln solar plant in Saudi Arabia
Toyota Tsusho Corporation, in a joint venture with TotalEnergies Renewables and Zahid Group, has secured a contract for a 119MW solar power plant in Saudi Arabia. The $100 million project will be implemented by Noor Alwadi Renewable Energy Company. The plant, located in Wadi Ad Dawasir, is the first renewable project for Toyota Tsusho in Saudi Arabia. Construction has already started, and the plant is expected to be operational by March 2025. The project has been selected for Japan’s Financing Programme for Joint Crediting Mechanism (JCM) Model Projects, aiming to reduce GHG emissions and promote renewable energy.
World’s largest waste-to-energy plant comes into service in UAE
The first phase of Dubai’s Waste-to-Energy Centre, the world’s largest and most efficient facility, comes into service on Tuesday. The center includes an investment of AED 4 billion (around $1.09 billion), covering an area of 400,000 square meters. With the opening of its second phase in 2024, the facility’s output is set to expand to 220 MWh annually.
Saudi Arabia and Kuwait urge Iran to engage in talks to de-escalate the Al-Durra gas field row
The Saudi Ministry of Foreign Affairs and Kuwait’s Oil Minister has emphasized their prospective countries’ exclusive joint ownership of the Al-Durra gas field. The two sides condemned Iran’s planned drilling activities in the field and urged it to demarcate the eastern border of the submerged area that is shared between Saudi Arabia and Kuwait.
Saudi Arabia hikes most August oil prices to Asia after supply cuts
Saudi Arabia raised the prices for most of its crude oil to Asian customers in August for a second month after its announcement of prolonging an extra output cut on top of a broader OPEC+ deal. Saudi Aramco hiked the official selling prices (OSP) for August-loading Arab Light to Asia by 20 cents a barrel from July to $3.20 a barrel, the state oil giant said in a statement. Saudi Arabia on Monday announced it would draw out its 1 million barrels-per-day voluntary cut to oil production to August and left the door open to extending the trim further. The more expensive Saudi oil could lead Asian refiners to seek alternatives from other suppliers, impacting refining margins in the region.
OPEC on hunt for new members, secretary-general says
OPEC Secretary General expressed the organization’s desire to increase the number of its members. The Secretary-General did give out any information regarding what countries will potentially join OPEC.
UAE Energy Minister announces no further voluntary OPEC+ oil production cuts
The UAE has announced that it won’t implement additional voluntary oil production cuts under the OPEC+ agreement, stating that its current efforts are enough. The country’s Energy Minister highlighted the significant gap between its current oil output and full production capacity and expressed the belief that recent cuts by Saudi Arabia and Russia will stabilize the global oil market. The impact of the UAE’s decision on OPEC+ efforts and the stance of other member countries will be closely watched.
Kuwait to invest more than $300 billion in energy sector by 2040, oil minister says
Kuwait will invest more than $300 billion in the energy sector by 2040, Kuwait’s oil minister Saad Al Barrak told UAE’s state news agency (WAM) on Thursday.
China’s Trina Solar provides 800MW of solar modules for Al Dhafra solar power project in Abu Dhabi
Trina Solar stated that it had delivered 800 megawatts (MW) of 210mm Vertex modules to China Machinery Engineering Corporation (CMEC) for the Al Dhafra PV power plant project in Abu Dhabi. The plant, which includes almost 3.5 million solar panels, is set to become one of the largest single-site solar power plants worldwide. The plant was connected to the grid in April 2023.
UAE’s Masdar tipped for big stake in $1.5bn offshore wind farm that will help power Amazon
UAE renewables group Masdar is set to take a major 49% stake in Iberdrola’s Baltic Eagle offshore wind project in German waters. The 476MW project, valued at about $1.5bn, is expected to be a critical project for the Abu Dhabi-based Masdar, as they set their sights on becoming one of the world’s most ambitious renewables players with a target to amass a 100GW gross portfolio by 2030. If confirmed, Masdar would become the latest partner for Iberdrola as the Spanish group pursues its massive global green power expansion plans.
Aramco And TotalEnergies Award Contracts For $11M Amiral Project
Saudi Aramco and TotalEnergies have awarded Engineering, Procurement, and Construction (EPC) contracts for the $11 billion “Amiral” complex, a petrochemical facility expansion at the SATORP refinery in Saudi Arabia. The project will include a large mixed-load steam cracker and is expected to attract additional investments in various sectors, creating around 7,000 jobs. The signing ceremony was attended by officials from Saudi Arabia, France, and South Korea, as well as company executives. The project signifies the continued strong partnership between Aramco and TotalEnergies in the Kingdom of Saudi Arabia.
Sheikh Hamdan launches Dh4 billion renewable energy plant in Dubai
Sheikh Hamdan bin Mohammed, the Crown Prince of Dubai, has launched a Dh4 billion ($1.09 billion) renewable energy plant in Dubai, which is set to be the world’s largest and most efficient waste-to-energy center. The plant in Warsan has the capacity to generate 220 megawatt-hours of renewable energy, powering 135,000 homes while also processing 2 million tonnes of waste annually without causing harm to the environment. The project aims to reinforce Dubai’s position as a global leader in sustainable infrastructure and is scheduled for completion next year.
Adnoc Closes In on 4.5 Million b/d Output Capacity
ADNOC hit the 4.5 million b/d benchmark of oil production, more than half of which is attributable to offshore fields. This is part of the UAE’s effort to reach 5 million b/d capacity by 2027. The increased capacity cements the United Arab Emirates (UAE) position as the third largest Opec producer after Saudi Arabia and Iraq and will give it increased influence in future quota discussions within the Opec-plus alliance.
ADNOC Gas awards natural gas pipeline contracts worth $1.34bn
ADNOC Gas has awarded contracts worth $1.34 billion to Petrofac Emirates and a consortium led by the National Petroleum Construction Company and C.A.T International for the expansion of its natural gas pipeline network in the UAE. The pipeline extension will enable the transportation of higher volumes of natural gas to customers in the Northern Emirates. ADNOC Gas aims to achieve gas self-sufficiency, increase its market share, and provide sustainable and cleaner gas to more locations in the UAE. Over 70% of the contracts’ value is expected to contribute to the UAE economy through ADNOC Group’s In-Country Value (ICV) program.
UAE Cabinet approves national energy and hydrogen strategies
The UAE revealed the country’s National Energy Strategy for the purpose of tripling renewable energy usage within the next 7 years. The country also announced its National Hydrogen Strategy for the purpose of enhancing the production and exports of low-emission hydrogen in the next 8 years.
Oman’s Galfar bags $75mln contract from OQ
OQ Exploration & Production Company has awarded Galfar Engineering and Contracting Company an engineering, procurement, and construction (EPC) contract worth roughly USD 75 million. Galfar estimates the value of this call-off contract to be approximately USD 727 mn for an execution period of seven years. The contract also includes an additional three-year extension option worth USD 311 mn. After securing several contracts in the oil and gas sectors earlier this year, Galfar continued to maintain a significant project pipeline of USD 1.25 billion, supported by new project awards worth USD 24 mn in the first quarter of 2023.
Saudi ACWA Power unveils $100mln RCF agreement from UAE-based Chinese bank
ACWA Power has signed a $100 million revolving credit facility (RCF) agreement with China Construction Bank (DIFC Branch). The three-year financing will support ACWA Power’s plans to enhance its power and water generation portfolio across the Middle East and Belt & Road Initiative countries. The deal strengthens the collaboration between ACWA Power and Chinese entities while diversifying the Saudi firm’s financing sources. It also aligns with the Belt and Road initiative’s focus on promoting renewable energy projects. ACWA Power has been working with China Construction Bank since 2016 on various projects.
ACWA Power and Huawei to Enhance Renewable Energy Projects in Saudi Arabia
ACWA Power and Huawei signed a joint initiative for the purpose of cutting down the cost of renewable energy projects. ACWA is also partnering with Huawei Digital and SEPCOIII to build a battery-based energy storage system that will have a capacity of 1,300MWH for the Red Sea Project. The initiative, part of China’s $40 bln investment in renewable energy abroad, will help Saudi in its 2030 vision goals.
UAE set to add 571MW biomass capacity in waste-to-energy push, says BMI
The UAE is expected to develop its waste-to-energy (WtE) sector, driven by the government’s goal to reduce landfill waste. The country currently has six out of eight WtE projects in the region, with a total capacity of 571 MW. The Sharjah Waste to Energy plant, for example, has successfully generated electricity and reduced landfill emissions. Research firm BMI has increased its forecast for biomass capacity in the Middle East and North Africa (MENA) region, with the UAE leading the expansion with large WtE projects.
Iraq launches projects to boost efficiency of gas-powered energy generation units
Iraqi Prime Minister Mohammed Al-Sudani and Iraqi Minister of Electricity Ziyad Ali Fadel revealed the state’s plan to enhance gas-powered electricity generation. The establishment of the 8 power plants in the first phase of the project required 40 cooling units to be installed across Iraq. These cooling systems generated an additional 364 megawatts of electricity for the national electricity grid. Phase 2 of the project will add 7 more power plants and 32 systems.
Kuwait’s Q8, MAIRE Launches Hydrogen Refueling Station in Rome
Q8, MAIRE opened Hydrogen Refueling Station in Rome. The project is being carried out by the Sustainable Technology Solutions business unit. The project will reduce carbon emissions by over 75 percent compared to the use of diesel.
Galfar wins $75mln EPC contract for Oman oilfield project
Oman’s Gelfar secured a $75 million contract from OQ for the Bisat oilfield project. Gelfar will provide construction and engineering services for the Bisat project. Oman’s global integrated energy firm OQ said the Bisat field, which is located at Abu Tubul, utilizes cutting-edge technologies and digital solutions to enhance the long-term sustainability of the resources and operations and maximize the revenues and return on investment.
OQ, Belgian Group Seal Green Hydrogen Production Contract
OQ and Belgian signed a green hydrogen contract with Hydrom. Phase 1 of this deal is aimed to produce 330,000 tonnes of green ammonia, and phase 2 to produce roughly 650,000 tonnes in total. This deal is part of Oman’s Vision 2040.
Iran’s crude output up by 350k barrels per day in 2023
Iran’s oil output increased to 350 barrels per day since the start of this year. This is despite US-led sanctions. IEA reported that Iran’s crude oil has the potential of reaching 900 barrels per day if sanctions were to be lifted.
South Korea trumpets Hyundai E&C $5 billion contract with Aramco
Hyundai Engineering & Construction signed a $5 billion contract with Saudi Aramco for the purpose of establishing a petrochemicals complex. South Korea’s Land Minister stated that such deal will strengthen energy cooperation between the two nations.
Electrical transmission line connecting Afar in Saudi Arabia to Yusufiya in Iraq inaugurated
An electrical interconnection project, linking the GCC states with Iraq, will be built. The project will help supply Iraq with its increasing electricity demands by having an initial capacity of 1,000 megawatts. It aims to start providing Iraq with electricity by the end of 2024.
ACWA Power secures $100m credit facility from Chinese bank to scale up operations
Saudi ACWA secured a $100 million credit facility from China Construction Bank to increase its operations. The three-year agreement will boost power generation and water distillation in the Middle East, Uzbekistan, and Kazakhstan
Aramco, TotalEnergies sign $11 billion contract to build petrochemicals complex in Saudi Arabia
Aramco and TotalEnergies have signed an $11 billion contract to start building a new petrochemicals complex in Saudi Arabia, the two companies said in a joint statement on Saturday. “Aramco and TotalEnergies today awarded Engineering, Procurement, and Construction (EPC) contracts for the $11 billion “Amiral” complex, a future world-scale petrochemicals facility expansion at the SATORP refinery in the Kingdom of Saudi Arabia,” the statement read.
Qatar Awards China 4mn t/y LNG Contract & NFE Stake
QatarEnergy has signed a series of deals with Chinese state energy giant CNPC affording it a slice of its giant North Field expansion development and a long-term supply deal. This is the second such deal QatarEnergy has reached with a Chinese state major, following April’s deal with Sinopec for an identical 5% NFE train stake
Oman Signs Two More Green Hydrogen Projects
State-owned company, Hydrom, signed two additional green hydrogen projects. This comes weeks after signing 500,000 t/y worth of green hydrogen projects. Oman’s Minister of Energy and Minerals, Salim Al-Aufi, pointed out that, “The fast-paced efforts behind the announcements of these new projects reflect Oman’s commitment to reinforce its leading position in the global green hydrogen sector in line with its energy transformation”.
Saudi Arabia: Shell signs deal to operate gas stations in the Kingdom
Saudi Energy Ministry announced that Shell International will open its first gas station in the Kingdom in the fourth quarter of this year. The deal is part of the Kingdom’s large effort to attract international companies to the country.
Shell signs deal to operate gas stations in Saudi Arabia
Shell International and Saudi Arabia’s Asyad Holding Group have signed an agreement to construct the kingdom’s first Shell-branded fuel station. This development aligns with the objectives of Saudi Arabia’s Vision 2030 and the efforts of the executive committee of service centers and gas stations to enhance facilities by partnering with leading global companies. The agreement also supports supply security in the sector, maximizes added value, and addresses economic challenges.
Brazil And UAE Sign MoU For Cooperation In Renewable Energy
Minister Alexandre Silveira signed a memorandum of understanding for cooperation in the field of renewable energy between the Ministry of Mines and Energy and the Ministry of Energy and Infrastructure of the United Arab Emirates. The main focus of the meeting was on promoting renewable energy generation, exploring new investments in Brazil, and addressing climate change. Silveira highlighted the Decarbonization of the Amazon project and expressed interest in UAE’s involvement, including at the upcoming United Nations Climate Change Conference in 2023. The memorandum signed between the two countries affirms their commitment to collaborating in renewable energy, hydrogen, energy conversion, decarbonization technologies, and biofuels, and sharing regulatory information and experiences.
QatarEnergy, China’s National Petroleum Corp to sign 27-year LNG deal
According to Reuters, QatarEnergy will sign a 27-year deal to supply China’s National Petroleum Corp with 4 million tons of liquefied natural gas (LNG) per year. CNPC will also take a 5% equity stake in one LNG train of QatarEnergy’s north field gas expansion, sources reported to Reuters.
ACWA Power signs deal with Chinese firm for Uzbekistan solar project
ACWA Power, based in Saudi Arabia, has partnered with Energy China Group Corp. to develop a solar power project in Uzbekistan. The companies signed an engineering, procurement, and construction contract. Additionally, ACWA Power signed a hydrogen purchase deal with Uzkimyosanoat, a state-owned chemical company, to promote green hydrogen projects in Uzbekistan. The collaboration strengthens ACWA Power’s ties with Chinese companies, which were established through memorandums of understanding signed during a summit and the state visit of Chinese President Xi Jinping to Saudi Arabia in 2022.
China, Saudi Arabia Team on Wind Projects in Uzbekistan
Envision Energy, China’s second-largest wind turbine manufacturer, has announced that it will supply 1 GW of generation capacity for wind projects developed by ACWA Power in Uzbekistan. This deal follows Envision’s recent wind turbine agreements in Egypt, India, and Saudi Arabia. Uzbekistan aims to install 5 GW of onshore wind by 2030, and ACWA Power has a $10 billion investment cooperation agreement with Uzbekistan’s Ministry of Energy for renewable energy, green hydrogen, and gas-to-power projects over the next five years.
Abu Dhabi’s ADNOC in almost $11 billion approach for Covestro
Abu Dhabi National Oil Company (ADNOC) has reportedly approached German plastics and chemicals manufacturer Covestro AG with a takeover offer worth over 10 billion euros ($10.9 billion). The move comes ADNOC Chief Executive Sultan al-Jaber leads the company’s push into new energy, low carbon fuels, such as ammonia and hydrogen, as well as liquefied natural gas and chemicals, in line with Abu Dhabi’s diversification plans. ADNOC has been actively expanding its presence in Europe, including its recent acquisition of a stake in Austrian oil and gas group OMV.
Kuwait awards multi-million contract for gas plant
Kuwait Oil Tanker Co (KOTC) has awarded a solar energy contract worth $6.35 million to Kuwait’s Life Energy Co. The contract is for the design, construction, operation, and maintenance of an electric power generation station using renewable energy (6.8MWp) in the Um AlAish and Shuaiba gas factories. The project aims to utilize solar energy in liquefied gas-filling plants. The duration of the contract is approximately six years.
Kuwait Oil Company to invest $43 billion on new oil projects, CEO says
Kuwait Oil Co (KOC) plans to invest approximately $43 billion in new oil projects over the next five years, according to CEO Ahmed Jaber al-Aydan. The investment aims to expand production by nearly 200,000 barrels per day (bpd). Currently, Kuwait’s crude oil production capacity is around 2.8 million bpd and is expected to reach 3 million bpd after 2025. Al-Aydan stated that the capacity could further increase to about 4 million bpd by 2035, and KOC intends to maintain that level until 2040. The strategy includes drilling new wells, increasing their output, and developing oilfield facilities with a budget of approximately KWD 13 billion.
Petrobangla to sign 10-year LNG supply deal with Oman Trading International
Bangladesh’s state-owned company Petrobangla is preparing to sign a long-term supply agreement with Oman Trading International for additional liquefied natural gas (LNG) stocks. Starting from January 2026, Bangladesh will receive an extra 0.5 to 1.5 million metric tons per year of LNG, with the possibility of 0.25 million tons in late 2025. This marks Petrobangla’s second contract with Oman Trading International, with the existing 10-year contract for 1 million metric tons per year. Bangladesh heavily relies on imported LNG for power generation due to limited domestic gas reserves and coal-fired capacity.
Saudi crude exports hit five-month low in April
In April, Saudi Arabia’s crude oil exports reached a five-month low, dropping to 7.316 million barrels per day (bpd) compared to 7. 523 million bpd in March. The country’s crude output remained steady at 10.46 million bpd, while inventories increased by 1.98 million barrels to 149.4 million barrels. Domestic refineries processed slightly less crude, but exports of refined products rose. In an effort to further limit supply, Saudi Arabia plans to make a deep cut to its output in July and raise the prices of its Arab Light crude to Asian buyers. Some observers suggest that higher oil prices are necessary due to increasing inflation.
Oil demand to peak by 2028 as energy transition gathers pace
The International Energy Agency (IEA) predicts that global oil demand growth will slow down in the coming years, with a peak in demand expected this decade. The IEA’s medium-term market report forecasts a 6% increase in global oil demand between 2022 and 2028, reaching 105.7 million barrels per day. However, annual demand growth is projected to shrink from 2.4 million barrels per day in 2023 to just 0.4 million barrels per day in 2028. The shift towards clean energy, including electric vehicles and energy efficiency, is driving this trend. The report highlights the need for oil producers to adapt their investment decisions for an orderly transition. The use of oil for transport fuels is expected to decline after 2026 due to the expansion of electric vehicles and improved fuel economy.
Russian oil refined in India sold to Pakistan through UAE
The first shipment of Russian oil arrived in Karachi after being refined in an Indian refinery. The oil was transported through the UAE to address concerns in Pakistan. Russia’s approach aims to safeguard India’s relationship and strengthen its negotiating position with the IMF by offering discounted oil to Pakistan. The discounted oil enables Pakistan to negotiate with the IMF from a stronger standpoint and retain subsidies on pump prices, avoiding potential cost increases. Russia also seeks to maintain positive relations with India and leverage the oil deal in IMF negotiations.
Iraq invites foreign bids for 11 gas blocks in new areas
Iraq has announced its plans to invite foreign companies to bid for contracts to explore and develop natural gas reserves in 11 new blocks. The country aims to produce more natural gas for its power stations and reduce its reliance on imports from Iran, which have been a burden on its budget and a strain on Baghdad’s relationship with Washington. Eight blocks are located in Anbar province, one in Mosul, and two along province borders. The bidding round is the sixth of its kind, although the specific date for the bidding process has not been set yet. Iraq, the second-largest producer in OPEC, currently flares much of its own gas due to a lack of processing facilities.
Kuwait’s oil production capacity to reach 3 mln bpd in 2025 – official
Kuwait’s oil production capacity is above 2.8 million barrels per day (bpd) now and will reach 3 million in 2025, the CEO of Kuwait oil company Ahmed Jaber al-Aydan said on Sunday. Kuwait is committed to the cuts decided by OPEC and OPEC +, al-Aydan added.
Kuwait Oil Company awards $60 million contract to HEISCO
Kuwait Oil Company (KOC) has awarded a $59.8 million contract to Heavy Engineering Industries & Shipbuilding Co. (HEISCO), the latter announced in a statement. The scope of work is related to water facilities upgradation at KOC’s project locations, HEISCO noted. This year, Kuwaiti EPC contractor HEISCO has secured several multi-million contracts in the Middle East region, including a contract from ARAMCO for the Juaymah NGL Fractionation Plant (JNGLF,) and a five-year contract from KOC for the construction of flowlines and associated works in West Kuwait Area.
Oil futures up 3% on strong China refinery data, weaker US dollar
On Thursday, oil prices gained about 3% to a one-week high on a weaker U.S. dollar, and a jump in refinery runs in top crude importer China. Brent crude futures rose $2.47, or 3.4%, to settle at $75.67 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.35, or 3.4%, to settle at $70.62. Those were the highest closes for Brent and WTI since June 8. Data on Thursday also showed China’s oil refinery throughput rose 15.4% in May from a year earlier, hitting its second-highest total on record. Chinese oil demand is expected to keep climbing at an assured rate during the second half of the year, said Kuwait Petroleum Corp’s chief executive.
The IEA Believes Oman Could Become A World Leader In Hydrogen
Oman could become one of the world’s biggest hydrogen suppliers, the International Energy Agency has forecast in a recent report. The Gulf sultanate currently generates some 60% of its export earnings from oil and gas but has set itself ambitious net-zero targets that would involve leveraging its low-carbon energy potential, which the IEA notes is significant. Oman plans to be producing 1 million tons of so-called green hydrogen by 2030, further expanding that to 3.75 million tons annually five years later and to 8.5 million tons annually by 2050.
Oman’s first hydrogen blocks awarded to consortium
EnerTech Holding Company, one of the founding partners of the Green Energy Oman (GEO) international consortium, has been awarded one of Oman’s first hydrogen blocks by Hydrom. The GEO consortium, consisting of EnerTech, Oman’s integrated Energy Company OQ, Shell Oman, InterContinental Energy (ICE), and Golden Wellspring Wealth for Trading (GWWT), secured Block Z1-04, located in the Dhofar Governorate. The block is set to produce 150,000 metric tonnes per annum of green hydrogen by leveraging 4 gigawatts of renewable energy. This deal is one of three signed agreements granting the first green hydrogen blocks in the Sultanate of Oman, with a combined investment value exceeding $20 billion. The projects are expected to deliver over 750,000 tonnes of green hydrogen per year, further propelling Oman’s ambitious target of achieving one million tonnes per year of green hydrogen production by 2030.
Oman on track to become the largest green hydrogen exporter in the Middle East – IEA
Oman will be the largest hydrogen exporter in the Middle East and the sixth largest globally by 2030, per a new report released by the International Energy Agency (IEA). Oman aims to produce at least 1 million tonnes of renewable hydrogen a year by 2030, up to 3.75 million tonnes by 2040 – and up to 8.5 million tonnes by 2050, which would be greater than the total hydrogen demand in Europe today. The 2040 hydrogen target would represent 80 percent of Oman’s current LNG exports in energy-equivalent terms while achieving the 2050 target would almost double them. According to the report, scaling up renewable hydrogen production in Oman to 1 million tonnes by 2030 would require a cumulative investment of around $33 billion and an additional $4 billion to bring renewables’ share of the national electricity mix to 20 percent.
Saudi Arabia signs $5.6b deal with Chinese EV firm Human Horizons
Saudi Arabia announced on Sunday billions of dollars in investment deals between China and the Arab world on the first day of the China-Arab business conference in Riyadh. The meeting came amid growing commercial and diplomatic ties between Beijing and Middle Eastern countries, including a recent landmark Chinese-brokered rapprochement between powerhouses Iran and Saudi Arabia that has shifted regional relations. This figure includes a $5.6bn memorandum of understanding between the Saudi investment ministry and Human Horizons, a Chinese maker of electric and self-driving cars.
Aramco’s Namaat program to launch companies worth $25bn
A cloud storage company, an iron sheet manufacturer, and a logistics management center are among the firms being established by Saudi Arabian Oil Co.’s Industrial Investments Program, Namaat. The initiative, launched by the oil giant in 2021, is helping to launch 31 local and international companies with an estimated total value of SR92 billion ($24.53 billion), it has been announced. The latest developments come a year on from Namaat, revealing it had reached 55 investments, and in 2021 it announced it had signed 22 memorandums of understanding to drive forward the initiative.
Iraq needs 10,000 MW to tackle power gap
Iraq needs to execute new projects that will generate nearly 10,000 megawatts (MW) of electricity to tackle a power shortage that worsened because of internal hostilities, an Iraqi official reported on Monday. OPEC’s second-largest oil producer currently generates around 20,000 MW of electricity from existing power plants. In comparison, actual domestic demand stands at nearly 30,000 MW, said Mudhar Saleh, financial and economic adviser to the Prime Minister. Madhar said he believes Iraq could become self-sufficient in electricity generation through new conventional and renewable energy projects as well as by supplies from common power grids with neighboring Iran and the six-nation GCC.
UAE’s Masdar signs roadmap for up to 1GW Wind Power Project in Kazakhstan
Masdar has signed a roadmap for developing up to 1 gigawatt (GW) wind power plant in Kazakhstan to support the country’s goal of achieving half its energy mix from renewables by 2050. The Central Asian nation is a key strategic market for Masdar, the UAE’s flagship renewable energy company, which has been steadily investing in the region in recent years. The roadmap for developing the up to 1 GW wind project with a battery energy storage system (BEES) was signed by four partners on the sidelines of the Astana International Forum. Kazakhstan aims to become carbon neutral by 2060 and targets renewable electricity generation of 50 percent by 2050. The up to 1 GW wind farm, with BESS, is Masdar’s first project in the country.
Saudi Arabia keen to work with China in gas, crude-to-chemicals, mining
Saudi Arabia is eager to collaborate with China in developing natural gas, crude-to-chemicals, and mining projects, within and outside the kingdom, because the world’s second-biggest economy is taking the lead in various sectors, energy minister Prince Abdulaziz bin Salman said June 11. In April, Saudi Arabia was the top oil supplier to China, delivering 2.07 million b/d (8.46 million mt) of crude, down 5.3% year on year and down 1.8% from March on a barrels-per-day basis, data from China’s General Administration of Customs showed May 20. Aramco previously signed several agreements, including potential crude supply and chemical offtake agreements, with Chinese entities in December during the visit of President Xi Jinping to Riyadh.
US expected to begin unloading oil from seized Iranian tanker
The US is expected to begin unloading oil from a seized Iranian vessel, currently anchored off the coast of Texas, threatening to escalate a shadow tanker war with Tehran. The US Department of Justice seized the Suez Rajan under a court order with cooperation from at least one company involved with the vessel. The case of the Suez Rajan is one of several recent maritime incidents involving the US and Iran and threatens to increase tensions between the countries as Washington and its European allies have renewed discussions on how to engage Iran in its nuclear activity.
GCCIA and Iraq embark on a major 500 MW grid interconnection project
The Gulf Cooperation Council Interconnection Authority (GCCIA) has embarked on the implementation of a new super grid project, connecting the GCC with the southern region of Iraq, according to a press statement. The interconnection project, slated for completion by late 2024, marks the first-ever expansion beyond the electrical grid system of the GCC countries. The project will satisfy a significant portion of the electric power demand in southern Iraq, supplying 500 megawatts (MW). Boasting a transmission capacity of 1,800 megawatts (MW) and spanning an impressive length of 295 kilometers, this transmission line is set to redefine the region’s power infrastructure.
Saudi foreign minister: wants U.S. to bid in domestic nuclear program
On Thursday, Saudi Arabia’s foreign minister said that the kingdom would prefer to have the U.S. as one of the bidders for its civilian nuclear program. Prince Faisal bin Farhan commented in a joint press conference with U.S. Secretary of State Antony Blinken
UAE Clean Energy Firm Masdar Plans First Green Bond Sale in June
The United Arab Emirates’ clean energy producer Masdar aims to sell its first-ever green bonds within weeks to help fund an effort to boost renewable energy generation capacity five-fold by the decade’s end. Securities linked to clean energy are attracting more capital as companies and nations look to cut emissions to fight global warming by diversifying supplies away from hydrocarbons. The UAE was the first Persian Gulf oil state to declare a net zero target for carbon emissions by 2030, even though OPEC’s third-biggest producer still invests billions to boost oil and natural gas output.
Iran builds two new reactors at Bushehr nuclear plant
According to the provincial governor, Anadolu Agency reports that Iran is building two new reactors at the Bushehr nuclear power plant on the country’s southwestern coast. Bushehr Governor, Ahmad Mohammadizadeh, said the new reactors would each have a capacity of 1,800 megawatts and are being built by young Iranian engineers without foreign assistance or expertise. Bushehr nuclear power plant, the only functional reactor in Iran with a capacity of 1,000 megawatts, was built by Russian engineers and handed over to Iran’s atomic energy agency in September 2013. These developments come amid a standoff over the 2015 nuclear deal, with indirect talks between Tehran and Washington aimed at the revival of the accord stalled since last August.
Egypt, UAE firm sign 10-bln-USD deal to build wind power plant
An agreement to build a wind power plant in Upper Egypt’s Sohag province was signed on Tuesday between Egypt’s Ministry of Electricity and Masdar, a renewable energy developer based in the United Arab Emirates (UAE). Egypt’s $10-billion wind energy project announced last year moved one step closer to its execution after the consortium responsible for the renewable project signed a deal on June 6 to secure the required land. The agreement will help Egypt achieve its annual goal of slashing carbon emissions by 9 percent in conjunction with onshore wind farms, producing 47,790 GWh of clean energy annually while displacing 23.8 million tons of carbon dioxide.
EnerTech, GEO Consortium award Oman’s first hydrogen blocks
EnerTech, a Kuwaiti state-owned company specializing in clean energy investment and development, has been awarded one of Oman’s first hydrogen blocks by Hydrom. The block is set to produce 150,000 metric tons per annum of green hydrogen by leveraging 4 gigawatts of renewable energy. This deal is one of three signed agreements granting the first green hydrogen blocks in the Sultanate of Oman, with a combined investment value exceeding $20 billion. The projects are expected to deliver over 750,000 tonnes of green hydrogen per year, further propelling Oman’s ambitious target of achieving 1 million annual tons of green hydrogen production by 2030.
Kremlin: Russia’s Putin, Saudi crown prince praise OPEC+ cooperation
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman praised, during a telephone discussion on Wednesday, their cooperation within the context of the OPEC+ oil producers’ group, the Kremlin said on Wednesday. The statement noted the importance of agreements reached at the group’s meeting this week, under which Saudi Arabia will make a deep cut to its output in July on top of a broader OPEC+ deal to limit supply into 2024.
EU, COP28 host UAE pledge to rally support for renewable goals
The European Commission and the United Arab Emirates pledged on Wednesday to seek support for global goals to expand renewable energy, which they said would help countries shift from unabated fossil fuels. The EU and COP28 host UAE will also work together on establishing a fund to address the irreparable damage climate change is causing in vulnerable countries, they said. Countries agreed last year to launch that fund but have yet to negotiate how it will work and where the money will come from.
Kuwait’s HEISCO wins $133.33mln contract in Saudi Arabia for Aramco
Saudi Arabia – Heavy Engineering Industries and Shipbuilding Company (HEISCO), listed on Boursa Kuwait, announced that its branch in Saudi Arabia received a letter of award from the main contractor of a project in Ras Tanura City in the Kingdom. According to a bourse disclosure, HEISCO’s branch will execute the main civil and mechanical construction works for 28 months in favor of the Saudi Arabian Oil Company (Aramco). The contract value stands at SAR 500 million which is equivalent to approximately KWD 41 million, while the project is installing C3/C4 Refrigeration units and storage tanks.
GE Gas Power announces major boost to Iraq’s power generation capacity
GE Gas Power has announced a significant boost to Iraq’s power generation capacity achieved in partnership with the country’s Ministry of Electricity. The company has successfully serviced and upgraded 1400 megawatts (MW) of gas turbine capacity across the country in the first half of this year. The strategic move aims to enhance power generation capabilities and optimize the efficiency and performance of the units just in time for the peak summer demand. Two gas turbines, with a combined capacity of 200 MW, underwent comprehensive maintenance work, including major overhauls, at the Khor Al-Zubair power plant.
Total set to launch 1,000 MW power project in Iraq
France’s TotalEnergies is pushing ahead with plans to build a 1,000-megawatt solar power project in Iraq after the project was endorsed by Baghdad last week, according to a statement by the Iraqi Electricity Ministry. Electricity Minister Ziad Fadil gave the green light for the project in the Southern port of Basra during talks with a TotalEnergies delegation in Baghdad on Monday, it said. The solar park project is part of a $27 billion framework agreement signed by Iraq and France in Sept 2021.
Qatar Offers Looser LNG Contract Terms to Entice Asian Buyers
Qatar is offering shorter and cheaper liquefied natural gas contracts as it attempts to secure customers for supply from expansion projects amid rising competition with the US. A deal agreed last week between the world’s top LNG exporter and Bangladesh included more lenient payment deadlines than typically offered, according to people with knowledge of the matter. The supplier aims to be more accommodating of customers’ needs, particularly emerging nations in Asia that struggle with high energy costs or are unable to commit to long-term agreements.
UAE to cut 144,000 bpd throughout 2024
The United Arab Emirates will extend its voluntary cut of 144 thousand barrels per day until the end of December 2024, as a precautionary measure, in coordination with the countries participating in the OPEC+ agreement, which had previously announced voluntary cuts in April. This voluntary cut will be from the required production level, as agreed upon at the thirty-fifth ministerial meeting of OPEC+ on June 4, 2023.
Saudi Arabia cuts oil output by 1 million barrels per day to boost sagging prices
Saudi Arabia said Sunday that it would reduce how much oil it sends to the global economy, taking a unilateral step to support the sagging cost of crude after two earlier production cuts by members of the OPEC+ alliance of major oil-producing countries failed to push prices higher. The announcement of the Saudi cuts of 1 million barrels per day, which will start in July, followed a meeting of the alliance at OPEC headquarters in Vienna. The rest of the OPEC+ producers agreed to extend earlier cuts in supply through the end of 2024. The International Monetary Fund estimates the kingdom needs $80.90 per barrel to meet its envisioned spending commitments, which include a planned $500 billion futuristic desert city project called Neom.
Kuwait Oil Company set to award $250 million wind energy project
According to media reports, Kuwait Oil Company (KOC) is set to finalise the main construction contract for a pilot wind farm to generate electricity for the oil sector by Q3 2023. A source quoted by Zawya said that the bid submission is ongoing, and the Engineering, Procurement, and Construction (EPC) contract is expected to be awarded in early September 2023. Through this initiative, KOC aims to explore the use case for wind energy to power oilfield operations in the Ratqa oilfield. The pilot project will feature wind turbines up to a height of over 50 meters with a generation capacity of 3.4-3.6 MW.
Saudi Arabia To Expand Its Lithium Processing Industry
Saudi Arabia is planning a second lithium processing plant as it seeks to capture a piece of the energy transition pie. The plant will be a joint venture between Saudi industrial major Obeikan Investment Group and Australian startup European Lithium, the Financial Times has reported, with initial production expected in 2026. The lithium produced at the new facility will be supplied to Germany’s BMW under an existing agreement. Earlier this year, Saudi Arabia signed a deal with Australian EV Metals—a battery tech developer partly owned by Riyadh—to construct a lithium hydroxide plant. Saudi Arabia is also the biggest investor in Lucid Motors—a luxury EV maker—and has planned for local EV production in the near future.
Aramco taps Turkish firms for $50 billion building spree
Saudi Aramco met with an army of Turkish contractors this week to discuss $50 billion of potential projects in the Gulf kingdom, underlining improving trade ties between the two countries after they buried a diplomatic spat over the killing of Jamal Khashoggi. Representatives of the state-controlled oil firm met executives from about 80 building companies in workshops in the Turkish capital Ankara on Tuesday and Wednesday and are seeking to pre-qualify them for projects planned through 2025, Erdal Eren, head of the Turkish Contractors Association, said in a phone interview.
India snaps up record amount Russian oil while flows from Saudi Arabia plunge to 28-month low
Russia, which surpassed Saudi Arabia as India’s top oil supplier in October last year, sold 1.96 million barrels of crude daily to India during May, according to Vortexa data cited by Bloomberg. That’s around 15% higher than the 1.67 million barrels a day sold to India in April. Saudi Arabian oil shipments, meanwhile, fell to their lowest level since February 2021, marking a 28-month low. That’s primarily due to ever-steeper discounts on Russian crude, which has fueled Russian oil purchases by allies like China and India. According to data from India’s Ministry of Commerce, the average cost of Russian crude shipments was $68.21 a barrel in April, marking the lowest price tag on Russia’s crude since the nation first invaded Ukraine.
Oman’s Hydrom signs 3 deals to develop green hydrogen projects with investments of over $20 billion
Oman’s Hydrom has signed three deals to develop green hydrogen projects involving investments of over $20 billion, Oman’s state news agency reported on Thursday. The projects are a collaboration with BP Oman, Amnah Consortium, and Oman Green Energy Alliances. The International Energy Agency (IEA) said earlier this month that Oman, a country whose economy has traditionally depended on hydrocarbons, has a net zero target by 2050 as it looks to significantly increase its domestic hydrogen production from renewable electricity.
Adnoc signs new agreements with more than 60 companies
Adnoc announced on Wednesday, at the Make it in the Emirates Forum in Abu Dhabi, new agreements with more than 60 UAE-based and international companies to locally manufacture critical non-oil products in its supply chain. The new agreements bring Adnoc closer to its target to locally manufacture Dhs70 billion ($19 billion) worth of products in its procurement pipeline. They are estimated to contribute 10 percent of the Dhs172 billion ($46.9 billion) target in the Abu Dhabi Industrial Strategy, which will double the size of Abu Dhabi’s manufacturing sector.
U.N. Launches Operation to Remove Oil from Decaying Tanker Off Yemen’s Coast
In Yemen, the United Nations has begun an operation to salvage over 1 million barrels of oil from a decaying tanker anchored in the Red Sea. It comes after years of delay and mounting warnings of a potentially catastrophic oil spill off the Yemeni coastline after maintenance on the Safer tanker was suspended in 2015 due to the U.S.-backed, Saudi-led war in Yemen.
Iraq allocates $417 million for new marine pipeline
The Basra Oil Company (BOC) announced on Monday that strategic projects for infrastructure, production, and export will be carried out. In a step to boost oil exports, the Iraqi government allocated about $417 million to build a third offshore oil export pipeline. The state-owned BOC signed a contract with Royal Boskalis, a Dutch dredging company providing services related to the construction and maintenance of maritime infrastructure internationally, to build a pipeline with a capacity of two million barrels per day.
Bahrain launches operations at $1bln Al Dur 2 utility plant
His Royal Highness Prince Salman bin Hamad Al Khalifa, Bahrain’s Crown Prince and Prime Minister, inaugurated the Al Dur 2 Phase Two Independent Water and Power Project (IWPP), which has been built at a total investment of $1 billion. The facility is the first production station in the kingdom connected to the high-voltage electricity transmission network of 400 KV. Established by Bahrain’s Electricity and Water Authority (EWA) in partnership with Acwa Power and Japanese companies, the IWPP generates 1,500 MW of electricity and processes 50 million gallons of desalinated water daily. The station brings the kingdom’s production capacity to 5,044 MW of electricity and 204 million gallons of desalinated water daily.
China’s Baoshan Oil and Steel co. invests $4bn in Ras al-Khair economic zone
China’s Baoshan Iron and Steel Co. has announced plans to invest $4 billion in a project in Saudi Arabia’s Ras Al-Khair’s new economic zone, aiming to boost the country’s manufacturing capacity. The investment is part of Saudi Arabia’s industrial outreach initiative to attract businesses to its special economic zones, offering preferential tax rates, customs duty exemptions, and allowing full foreign ownership. The Saudi SEZs have received significant investments, totalling $12.6 billion to date. Other companies, such as McDermott Arabia and Makeen Energy, have also pledged investments in the SEZs. In addition, Saudi Arabia plans to offer extra incentives to foreign investors in the SEZs to hire local workers.
Saudi First Mills’ $266.4m IPO attracts bids worth $18bn
First Mills’ IPO generated $266 million. Big investors placed orders that are roughly 69 times more than what was initially available. First Mills’ IPO is set to be the second largest in Saudi Arabia this year after Jamjoom Pharmaceuticals Factory’s IPO last month. Projections show that the IPO market in the region will remain extremely strong for the rest of the year given that a variety of Saudi companies are anticipated to go public in the upcoming months.
PetroBangla to sign 15-year LNG deal with Qatar on Thursday
Bangladesh’s state-owned gas company, Petro Bangla, is set to sign a 15-year agreement with QatarEnergy to purchase 2 million tonnes of liquefied natural gas (LNG) annually. The deal will commence in January 2026, providing Bangladesh with a long-term supply of LNG. This agreement aligns with QatarEnergy’s plans to sign a significant LNG supply deal with an Asian entity, as previously reported by Reuters.
OPEC offers its full support to the UAE COP28 Presidency
On May 29th, OPEC issued a statement endorsing the UAE’s COP28 Presidency. “The UAE”, it read, “is recognized as a global leader in addressing energy challenges, climate change, and sustainable development through significant investments in renewables and emission-reducing technologies. Dr. Al Jaber, Chairman of Masdar and Group CEO of ADNOC, is esteemed as a global energy leader.” The statement also underlined how Al Jaber’s expertise and leadership in both organizations position the UAE well for productive and inclusive discussions at COP28, emphasizing the importance of a just energy transition. OPEC’s endorsement of the UAE’s leadership comes amid slagging oil prices necessitating the need for cohesion among the group’s members.
APM Terminals Bahrain aims to become region’s 1st fully solar energy-powered port
APM Terminals Bahrain, a subsidiary of A.P. Moller-Maersk, is implementing a solar power project at Khalifa Bin Salman Port in Bahrain. The $10 million project aims to power port operations with clean and sustainable energy, reducing carbon emissions by 65%. This initiative aligns with APM Terminals’ global decarbonization plans and Bahrain’s commitment to reducing emissions and achieving net zero by 2060. By becoming the region’s first seaport fully powered by renewable energy, the project sets an example for the maritime industry but also allows Bahrain to lead the way both regionally and globally.
Aramco to develop gas field in Iraq
During the Iraqi-Saudi Coordination Council meeting, Iraq’s Minister of Oil, Hayan Abdul-Ghani, announced that Aramco, the Saudi oil company, will develop the Akkas gas field in Iraq, with a production capacity of over 400 million cubic feet per day. Abdul-Ghani invited Saudi companies to invest in Iraq’s Nibras petrochemical project and encouraged Saudi specialized companies to participate in developing oil and gas fields on the Iraq-Saudi border. The meeting also witnessed the establishment of the Saudi Iraqi Investment Company, with a $3 billion investment plan for Iraq, fully owned by the Saudi Public Investment Fund.
Welspun’s associate firm signs contract with Saudi Aramco worth SAR 1.8 bn
East Pipes Integrated Company for Industry (EPIC) signed a contract worth 1.8 billion (SAR) to supply Aramco with large-diameter steel pipes. This is one of the largest deals that EPIC has signed with Aramco. The deal is part of Aramco’s larger effort to expand its Master Gas System (MGS) to include the Western Province. This will help Saudi Arabia achieve its net-zero emission goal.
Iraqi Kurdistan’s first solar plant helps with power outages, boosts agriculture
KRG’s Prime Minister Mansour Barzani announced a solar power project to combat electricity shortage and boost the agriculture sector. The project will cost $100 million and aims to produce 25 megawatts of electricity per hour. KRG pointed out last year that about 20 percent of Kurdistan’s electricity is reliant on solar power. The three main reasons behind Kurdistan and Iraq’s overall electricity shortage are linked to the destruction of Iraq’s national grid amid the 1991 Gulf War, looting incidents during the US invasion of Iraq in 2003, and government corruption.
Kaabi warns Europe of gas shortages in switch to renewables
Saad bin Sherida Al Kaabi, Qatari Minister of State for Energy Affairs and QatarEnergy CEO, warned that Europe will face severe oil and gas shortages without a proper energy plan. He emphasized the limitations of renewables and the need for a balanced energy mix. Kaabi expressed concern about natural gas scarcity due to aggressive energy transition policies. He also discussed Qatar’s gas production plans and the importance of studying energy supplies for economic stability.
L&T unit wins two major power projects in Saudi Arabia
Indian engineering and construction firm Larsen & Toubro (L&T) has secured two large orders in Saudi Arabia for the construction of 380kV overhead power transmission lines along the Red Sea coast. The orders, valued between $302 million and $603.6 million, will strengthen the power infrastructure in key cities and support the growing demand in industrial and tourism hubs. Additionally, L&T has obtained an order for the design, supply, and construction of a 380kV substation in Saudi Arabia to support the country’s renewable energy goals. L&T has been successful in securing significant contracts in the Middle East and India recently. The contracts come as Saudi Arabia hopes to transform its Red Sea coast into a tourism and development project.
ACWA to Invest $120 Million in Uzbekistan Renewables Afresh
Saudi’s ACWA signed two sets of agreements to help Uzbekistan reach its goal of decarbonizing 35 percent of the energy sector by 2030. The first set of agreements will aim to decarbonize Uzkimyosanoat of Uzbekistan by implementing green hydrogen projects. The second set of agreements will consist of funding the Nukus Wind Project. ACWA’s initiative to help Uzbekistan decarbonize its energy sector is projected to reduce carbon emissions by more than 6 million tonnes by 2030.
Saudi Arabia’s $8.4bn Neom green energy mega-project hits financial close
Neom Green Hydrogen Company (NGHC) is launching a renewable power project that aims to generate 600 tonnes of green ammonia per day. The project will involve 23 local, regional, and international financial institutions that will cover $6.1 billion of non-recourse finance. The project aims to begin generating green energy by the end of 2026.
Houthis Sign Deal With China For Oil Exploration In Yemen
The Houthi-led government in Yemen has signed a memorandum of understanding with China’s Anton Oilfield Services Group (AntonOil) and Chinese officials for investment in Yemen’s upstream sector. Yemen’s Oil and Minerals Minister had invited foreign companies to explore investment opportunities in the country’s oil exploration sector. The Houthi-led government warned foreign companies against dealing with the Saudi-backed Presidential Leadership Council, the internationally-recognized government of Yemen. The recent Beijing-brokered truce between Riyadh and Tehran has positioned China to benefit from potential peace agreements, facilitating its capacity to make economic inroads in Yemen.
S. Korean power supplier to establish $451 mln solar power generation facility in Oman
Korea Western Power will construct a $451 million solar power generation facility in Oman to produce 500-megawatt hours of electricity. Following an agreement with the Oman Power and Water Procurement Company (OPWP), Korea Western Power will begin construction in Oman’s Manah region, where it will be in charge of the operation and management of the facility. OPWP has guaranteed the purchase of the electricity for 20 years once construction has been completed, expected by March 2025. As a key supplier of oil to South Korea, Oman is actively leveraging its partnerships to diversify its energy sources and expand the scope of its energy relationships.
Qualifying 106 companies to implement solar energy projects in homes and facilities in Saudi Arabia
As part of the Saudi government’s attempt to become a global center for solar energy, it recently provided 106 companies with permits to implement small solar PVs for homes. The capacity of these solar PV systems should not exceed 2 megawatts for the purpose of self-consumption. Saudi Arabia has pledged to be carbon neutral by 2060 as well as produce 50% of its energy needs from renewable sources by 2030.
Iran and Russia sign 10 oil cooperation agreements
Iran and Russia signed ten agreements for cooperation in the oil industry, including six MoUs, two contracts, one agreement, and a roadmap pertaining to bilateral cooperation in the industries of technology transfer and oil recovery enhancement. The agreements aim to enhance economic cooperation, particularly in technology transfer and oil recovery. Both countries expressed support for each other within OPEC and discussed the integration of banking systems and currency utilization in bilateral trade. Implementation of the agreements is expected soon, with optimism for increased trade volume in the future.
Qatar signs $10bn project to develop gas field shared with Iran
QatarEnergy and Technip Energies have signed a $10 billion deal to develop the South Pars natural gas field shared between Qatar and Iran. The project includes two LNG production lines, increasing Qatar’s total production by 60% to reach 126 million tons by 2027. Sanctions against Iran have delayed the completion of its part of the field, which requires significant investment to maintain production levels. The global demand for Qatar’s gas has risen due to the Russian-Ukrainian conflict and sanctions on Russia, signaling a movement towards increased global investment in Gulf oil and LNG industries.
UAE to generate 6% of its power from nuclear energy
The UAE aims to transition 6% of its energy consumption to nuclear power as part of its net-zero emissions goal by 2050. The country has made progress with the Barakah Nuclear Energy Plant, which is expected to supply 25% of electricity once completed. The UAE has signed agreements with Chinese nuclear energy companies to strengthen its nuclear industry. This move towards nuclear energy is significant in the Middle East, where several countries have nuclear ambitions. China’s involvement is expected to support the UAE’s diversification efforts and forge a stronger energy partnership between the two nations. The development of a domestic nuclear industry enables the UAE to enhance its technological capabilities and establish itself as a regional leader in nuclear energy.
Qatar Energy cuts July al-Shaheen oil price to 27 month low
Qatar Energy has set the July term price for al-Shaheen oil at the lowest level since April 2021. The price, a premium of about $1.03 per barrel above Dubai quotes, reflects sluggish refining margins and ample crude supplies. Trading sources suggest that companies like Total, Shell, ExxonMobil, and Vitol have likely won the cargoes. Thin refining margins and planned refinery operations reductions have contributed to weakened spot premiums for Middle Eastern crude. Despite recent reconciliation with its GCC neighbors, the move highlights Qatar’s continued desire to conduct energy policy independent of its Gulf counterparts.
Oman to issue RfQs for three wind power projects this year
Oman Power and Water Procurement Company (OPWP) announced that RfQ and RfP would be issued this year for three wind-based Independent Power Projects (IPPs). This is part of the Omani government’s larger effort to enhance renewable energy production and consumption. OPWP has also been looking into creating a Concentrated Solar Power (CSP) plant in Oman.
Adnocs unit’s $607 million Abu Dhabi IPO sells out in minutes
Adnoc successfully completed the initial public offering (IPO) of its maritime logistics unit, Adnoc Logistics & Services, in the Middle East. The IPO received overwhelming demand, with orders covering all shares within minutes. Adnoc plans to sell approximately 1.11 billion shares, valuing the company at up to $4.05 billion. The deal attracted cornerstone investors, including Al Seer Marine Supplies & Equipment, National Marine Dredging, Alpha Oryx, and Abu Dhabi Pension Fund, committing around $180 million combined. This IPO marks Adnoc’s second listing this year and is set to be the region’s second-largest IPO. Despite a decline in IPO proceeds in the Middle East, the region outperforms Europe in terms of IPO activity. Adnoc has been divesting stakes in its units since 2017 to diversify its economy and reduce reliance on fossil fuels.
China’s first yuan-settled LNG trade unloaded from UAE
According to China National Offshore Oil Corporation, 05/16/2023 marked the first cross-border LNG trade using the Chinese yuan. This cross-border trade consisted of transporting roughly 65,000 tons of LNG from the United Arab Emirates. The use of yuan in cross-border trades has been on the rise amid China’s large volume of crude oil and LNG imports.
QatarEnergy awards $10bn gas contract to Tech Energies, CCC
QatarEnergy awarded a $10 billion contract to a joint venture of Technip Energies and Consolidated Contractors Company for the purpose of engineering and constructing the North Field South (NFS) project. Once the project is complete, it is projected to increase Qatar’s LNG production by roughly 60 percent in 2027. The country’s energy minister described this trade deal as, “another significant milestone in the world’s largest LNG project”. He also pointed out that the project will minimize its footprint by having one of the largest CO2 capture facilities.
$5 billion undersea UAE-Gujarat gas pipeline proposed
South Asia Gas Enterprise (SAGE) is asking for the support of the government to construct a $5 billion undersea gas pipeline, connecting the GCC and India. The proposed pipeline will be 2,000km long and is projected to yield an annual saving of roughly 7,000 crores. This same project was originally planned between Iran and India, but Western sanctions have prevented the project from taking place.
Iraq set to launch giant petrochemicals project
Iraq is set to launch the ‘Nibras’ project, a joint venture with Royal Dutch Shell, to construct the largest petrochemical plant in the region. The project, with an estimated cost of $8.5 billion, aims for a production capacity of 1.8 million tonnes per year. Based in the Southern oil hub of Basra, the plant will utilize Iraq’s gas resources to position the country as a global petrochemical producer. The project is expected to be completed in 5-6 years and generate revenues of approximately $90 billion over its 35-year operational period.
Global oil industry requires $12.1trln in investments up to 2045: OPEC
Haitham Al Ghais, Secretary General of OPEC, stressed the importance of collaboration and inclusive action in achieving a just and sustainable energy transition. He highlighted the challenges faced by the energy, climate, and sustainable development sectors and stated that no one-size-fits-all solution exists for a sustainable energy future and that every voice should be included in the discussions. He also mentioned the rising global energy demand and the need for increased investment and collaboration to meet this demand while reducing emissions. OPEC member countries are committed to playing a role in providing energy and reducing emissions through investments in cleaner technologies and renewable energy. Al Ghais concluded by emphasizing the importance of a multilateral approach and collaboration in tackling energy challenges and achieving a sustainable energy future.
Saudi Arabia eyes reducing liquid fuel consumption by 95% for agriculture sector
Saudi Arabia aims to achieve a 95% reduction in liquid fuel consumption in its agriculture sector by 2030. The Ministry of Environment, Water, and Agriculture’s Liquid Fuel Displacement Program will replace liquid fuels with electricity from the grid, benefiting more than 10 government entities and 20 private companies. The program will enhance operational capacity, improve sustainability, and provide support for necessary modifications in the agricultural sector. The rollout will initially target major agricultural companies, followed by large and smaller farms. The ministry is focused on increasing self-sufficiency in fruit and vegetable production and improving quality and safety standards.
Adnoc Gas IPO was world’s largest in Q1, EY report shows
The Middle East and North Africa (MENA) region experienced 10 IPOs in Q1 2023, raising a total of $3.4 billion, according to an EY report. Although there was a decrease in both the number of listings and their value compared to the previous year, the MENA IPO market remained strong amid global uncertainties. Saudi Arabia led in listing activity, followed by the UAE, whose Adnoc Gas PLC raised $2.5 billion, the largest IPO of the quarter globally. and Despite geopolitical challenges, investor confidence in the region remains robust, and there is a promising IPO pipeline for the rest of the year, supported by various initiatives.
Iraq’s crude oil reserves increase by 10 bln barrels: oil minister
Iraqi Oil Minister Hayan Abdul Ghani announced that Iraq’s oil reserves increased by 10 billion barrels and natural gas reserves increased by eight trillion cubic feet. The increase was discovered through a seismic survey near Basra, raising Iraq’s proven crude oil reserves to around 155 billion barrels and proven natural gas reserves to about 140 trillion cubic feet. These figures are not yet officially recognized by OPEC, of which Iraq is a member.
Masdar in deal to triple renewable energy capacity by 2030
Abu Dhabi Future Energy Company (Masdar) has partnered with the International Renewable Energy Agency (IRENA) to launch a project aimed at tripling global renewable energy capacity by 2030. The collaboration will establish a global baseline for renewable energy, focusing on solar, wind, hydropower, geothermal, and battery storage technologies. Masdar, committed to growing its capacity to 100GW by the end of the decade, will work with IRENA to emphasize the role of renewable energy in combating climate change at the upcoming COP28. The project will also address regional challenges and provide recommendations for action.
Exclusive: Iraq does not expect OPEC+ to make further cuts at June meeting
Iraq does not expect OPEC+ to make further cuts to oil output at its next meeting in June, its oil minister Hayan Abdel-Ghani said, in the first indication from an OPEC minister about a potential decision as oil prices slide. OPEC+ agreed to cut production in late 2022 to support the market as the economic outlook worsened, hitting prices. The announcement helped push oil prices sharply higher, but those gains have since been erased as fears of a global economic slowdown took hold.
Iraq expects Total to begin $27 bln energy project in second half of 2023
Iraq expects TotalEnergies to begin operations on a long-delayed $27 billion oil, gas, and renewables project in the second half of 2023 after finalizing side contracts with a state oil company, an Iraqi deputy oil minister said on Friday. The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years, but it was delayed amid disputes between Iraqi politicians over terms. Iraq said last month it had agreed to a smaller 30% stake in the project, reviving the deal that Baghdad hopes could lure foreign investment back into a country enjoying relative stability after years of conflict and tensions.
Iraq invites bids for 13 oil sites
Iraq has invited international companies to bid for projects to develop oil and gas sites within a new licensing round. According to a Ministry statement carried by Aliqtisad News network, the sites are located in the Southern Basra province, Baghdad, Nineveh in the North, the Southeastern Maysan Governorate, Wasit in the East, and Saladin in Central Iraq.
Saudi Aramco to postpone mega IPO of energy trading unit
Saudi Aramco is pushing back a planned Riyadh initial public offering of its energy-trading business, a deal that would have ranked as one of the world’s largest share sales this year, sources confirmed. Aramco had been planning to list the business in late 2022 or early this year and was considering seeking a valuation of more than $30 billion, Bloomberg News reported previously. It now feels it could be difficult to list such a large business on the Riyadh bourse at the moment.
ADNOC Drilling eyes major drilling growth in Abu Dhabi
In an exclusive interview with Oil & Gas Middle East, CEO of ADNOC Drilling Abdulrahman Abdulla Al Seiari, discusses the company’s fleet expansion, first-quarter results, and increased decarbonization focus. Since its initial public offering in October 2021, ADNOC has secured more than $12 billion in contract backlog. In April they were awarded a $412 million IDS contract which will be the first of a number of significant awards anticipated this year.
Qatar: 54% of waste recycled and converted to energy, fertiliser, says minister
The Ministry of Municipality recycles approximately 54% of the waste generated from households as well as commercial and industrial establishments in the country and converts it into energy or fertilizer, and aspires to reach a 95% recycling rate by the end of 2030, Minister of Municipality Dr. Abdullah bin Abdulaziz bin Turki al-Subaie has said. This is a good indicator, and there is an eagerness to improve this percentage through raising public awareness, while the rate of recycling and re-conversion into energy and other uses has also been studied.
US House committee to consider bill on pressuring OPEC oil group
The House Judiciary Committee was set to consider a bill on Wednesday to pressure the OPEC oil production group to stop making output cuts that can result in higher fuel prices for U.S. drivers. The committee was expected to vote on the so-called No Oil Producing and Exporting Cartels, or NOPEC, bill, which would change U.S. antitrust law to revoke the sovereign immunity that has protected OPEC+ members and their national oil companies from lawsuits over price collusion. OPEC+’s members include Saudi Arabia and Russia.
Saudi Aramco to begin bitumen exports from Yanbu
Saudi Aramco will begin bitumen cargo exports in June from Yanbu on the Red Sea coast, home to the 400,000 b/d Yasref refinery. The move would add to global supply at a time when concerns over bitumen production and availability in many parts of Europe have been heightened by the EU and UK ban on imports of Russian crude, refinery feedstocks, and bitumen.
China’s April crude oil imports fall to lowest since January
China’s crude oil imports fell in April to the lowest level since January, customs data showed on Tuesday, as the country’s post-COVID economic rebound slowed amid a weaker global macroeconomic backdrop. Imports in March had surged 22.5% on last year to 12.3 million bpd – the highest level since June 2020 – as refinery throughput set a new monthly record of 14.9 million bpd. Slower economic activity has put the brakes on refined fuel demand, particularly for diesel.
Oman LNG eyes expansion of Qalhat plant capacity to 12mln tonnes per year
Buoyed by a slew of recent commitments to offtake its LNG output, Oman LNG plans to expand its gas liquefaction capacity through the Qalhat complex — a move that also bodes well for its efforts to secure an extension of its concession to operate beyond its current mandate expiring in 2024. The uptick will further strengthen the majority government-owned company’s positioning in a global energy market still roiled by the effects of a gas supply crisis triggered by the Russian-Ukrainian conflict, according to Oman LNG CEO Hamad al Numani. Next in its sights is a capacity ramp-up to 12 million tpy of production — a goal Oman LNG seeks to achieve within a “year or two”, alongside its efforts to secure a government mandate to operate well into the foreseeable future.
QatarEnergy enters Suriname offshore exploration
QatarEnergy has entered into two Production Sharing Contracts for Blocks 6 and 8 offshore the Republic of Suriname, following successful bids in these blocks, as previously announced in June 2021. Commenting on the signing of the agreements, HE Minister of State for Energy Affairs, the President and CEO of QatarEnergy Eng. Saad bin Sherida Al Kaabi said: “We are pleased to have concluded our entry into Blocks 6 and 8 along with our partners, TotalEnergies and Staatsolie, and look forward to commencing exploration in this promising basin.”
Oman, Belgium sign pact for green hydrogen certificate pilot
Oman’s Ministry of Energy and Minerals, and Belgium’s Ministry of Energy have signed an agreement for a Green Energy Certificate pilot project for the ‘Hyport Duqm’ project, the state-owned Oman News Agency (ONA) reported. The report said the agreement aims to evaluate the adherence of green hydrogen projects in Oman to the European Union’s criteria to pave the way for exporting green hydrogen to European markets in the future.
Iraq unveils plan for 300,000-bpd oil refinery
Iraq is planning to build an oil refinery in the Southern Faw Peninsula with a production capacity of 300,000 barrels per day (bpd), the official news agency said on Monday. Iraq, OPEC’s second-largest oil producer, is planning to build several oil refineries in a post-war drive to develop its hydrocarbon sector and other facilities.
Bahrain aims to double renewable energy targets as Gulf countries step up production
Bahrain aims to double renewable energy targets to achieve 20% of the total energy mix by 2035, according to the kingdom’s Minister of Electricity and Water Affairs. Bahrain is among the GCC countries seeking to boost renewable energy production to reduce emissions and become net zero in the coming decades.
Senior EU Official, Oman’s Energy Minister Discuss Bloc’s Gas Purchasing Platform
European Commission Vice-President Maros Sefcovic held a meeting with Oman’s Minister of Energy and Minerals Salim Al Aufi to discuss the EU’s joint gas purchasing platform and green transition. According to Sefcovic, the two discussed Oman’s potential involvement in AggregateEU, the EU’s mechanism to aggregate gas demand and make joint purchases at better prices. This program is part of the EU’s effort to pivot from Russian gas by switching to more reliable alternatives.
PDO to diversify into carbon capture, blue hydrogen in Oman
Petroleum Development Oman (PDO) has announced a landmark foray into Carbon Capture, Utilisation and Storage (CCUS). At the same time, the majority state-owned energy company also plans to diversify into the production of blue hydrogen, a commercially valuable low-carbon commodity closely associated with the deployment of CCUS technologies. The announcement is set to further buoy a nascent bid, led largely by a handful of climate-tech startups, to kindle the growth of a CCUS industry in Oman.
Sineng signs with L&T for Saudi’s 700mw solar project
Sineng Electric has signed a contract with Larden & Toubro (L&T) to supply the former’s Turnkey Stations to power the Rass solar PV Independent Power Plant (IPP), one of Saudi Arabia’s National Renewable Energy Program (NREP) large projects. The project aims to maximize renewable energy share, diversify energy sources, and decarbonize the local economy. A consortium led by ACWA Power is behind the development of the $450mn project, a power purchase agreement signed for 25 years with the Saudi Power Procurement Company (SPPC). The plant will contribute to Saudi Vision 2030 by powering approximately 132,000 households in central Saudi Arabia with clean energy.
UAE signs nuclear energy cooperation agreements with China bodies
Emirates Nuclear Energy Corporation (ENEC) has signed three agreements with Chinese nuclear energy organizations as it looks to boost low-carbon nuclear power. The three Memorandums of Understanding (MoU) cover cooperation in nuclear energy operations, in high-temperature gas-cooled reactors, and in nuclear fuel supply and investment, according to ENEC. When completed, Barakah will have four reactors with 5,600 megawatts (MW) of total capacity – equivalent to around 25 percent of the UAE’s peak demand.
Achieving reduction in oil and gas emissions will require a $600 billion expenditure, says IEA
Around $600 billion in spending is required this decade to achieve the cut in oil and gas emissions, according to a new IEA report. The report identifies five key levers to achieve this reduction, including: tackling methane emissions; eliminating all non-emergency flaring; electrifying upstream facilities with low-emissions electricity; equipping oil and gas processes with carbon capture, utilization, and storage; and expanding the use of low-emissions hydrogen in refineries. Tackling methane emissions is the most important measure to limit emissions from the industry’s operations. It is also one of the most cost-effective and impactful measures to cut emissions across the economy and limit near-term global warming.
Oil prices jump but post third straight weekly fall on economic woes
Oil prices rose on Friday, but fell for the third straight week after a sharp fall earlier this week ahead of benchmark interest rate rises and amid concern that the U.S. banking crisis will slow the economy and sap fuel demand. The Brent benchmark finished the week with a decline of about 5.3%, while WTI plunged 7.1%, even after the rebound on Friday. Both benchmarks were down for three weeks in a row for the first time since November. However, expectations of potential supply cuts at the next meeting of the OPEC+ producer group in June have provided some price support, said Kelvin Wong, a senior market analyst at OANDA in Singapore.
Oman’s OETC expects to hook up 2.25GW of renewable energy by 2026
Oman Electricity Transmission Company (OETC) expects to connect up to 2.25 gigawatts (GW) of renewable energy to its transmission grid by 2026, according to the company’s latest five-year capability statement. OETC also noted that Oman Power and Water Procurement Company’s (OPWP) seven-year statement indicates that two renewable energy plants, the Ras Madrakah wind farm and MIS Solar IPP, would be energized by the second quarter of 2027. Oman’s fuel diversification policy targets 30 percent of generation output from Renewable Energy Sources (RES) by 2030 and 39 percent by 2040
TotalEnergies’ $27 billion Iraq project to begin in two weeks
Iraq and TotalEnergies expect to begin work on a long-delayed $27 billion project within the next two weeks. Five side agreements related to the deal are to be signed in the next two weeks, paving the way for implementation to commence. The initial agreement was signed in 2021 for TotalEnergies to build four oil, gas, and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years, but political infighting has delayed the process. Iraq eventually agreed to a smaller 30% stake.
Abu Dhabi receives bids from two consortia for Waste-to-Energy IPP
EWEC (Emirates Water and Electricity Company), the main procurer for water and electricity in Abu Dhabi, and Abu Dhabi Waste Management Company (Tadweer) announced on Thursday that they have received proposals from two consortia for the development of the greenfield Abu Dhabi Waste-to-Energy (WtE) Independent Power Project (IPP). The project will have an expected annual processing capacity of 900,000 tonnes of waste, enabling an expected carbon emissions reduction of 1.1 million tonnes per year. It is expected to generate enough electricity to power up to 52,500 households. The WtE project aims to commercially operate by the fourth quarter of 2026.
Oil falls 4%, extending losses after Fed rate hike
Oil prices fell 4% after the Fed raised interest rates by a quarter of a percentage point, pressuring oil prices as traders worried that slower economic growth could hit energy demand. Brent was down 4% to close at $72,33 per barrel (lowest since December 2021), and WTI fell 4.3% to $68.80. Yet, the Fed also signaled it may pause further increases, which should support oil prices.
IMF: Saudi Arabia Needs Oil Prices At $80.90 To Balance Budget
According to the International Monetary Fund (IMF), Saudi Arabia needs oil prices at $80.90 per barrel to balance its budget this year and finance its megaprojects such as NEOM. This is lower than the $83.60 and $85.80 a barrel levels of 2021 and 2022, but comes amid an expected economic slowdown for Riyadh from 8.7% growth last year to 3.1% this year and next.
U.S. says Iranian forces seize second oil tanker within a week
Iran’s Revolutionary Guard seized a Panama-flagged oil tanker in the Strait of Hormuz, the second-such capture by Tehran in recent days according to the U.S. Navy. While Iran did not acknowledge the seizure, tanker captures have been a part of its shadow war with the West since 2019, when the Trump administration withdrew from the Joint Comprehensive Plan of Action.
TotalEnergies, Sinopec pitched for role in Saudi gas project
Saudi Arabian oil giant Aramco is receiving pitches from Sinopec Corp and TotalEnergies for a slice of the Jafurah shale gas development project worth about $10 billion. With reserves estimated at 200 trillion cubic feet of raw gas and the expectation to produce 2 billion cubic feet of gas per day by 2030, it is the largest shale gas development outside the U.S. The project was initially aimed at satisfying domestic demand, but amid growing competition in shale oil production from the U.S., Aramco has signaled that Jafurah might become a gas export hub.
UAE’s ADNOC swaps Fujairah for Ruwais as location for LNG export project
ADNOC announced that its planned liquefied natural gas (LNG) project would move forward in the Al Ruwais Industrial City in Abu Dhabi instead of the emirate of Fujairah. ADNOC’s current operations, its future growth projects as well as its local supplier base motivated the decision. ADNOC plans to more than double its LNG production capacity to meet rising global demand, especially in Europe.
Aramco, PIF and China’s Baosteel agree to set up steel complex in Saudi Arabia
Saudi oil giant Aramco, Chinese conglomerate Baoshan Iron & Steel Co., Ltd. (Baosteel) and the Public Investment Fund have agreed to set up an integrated steel plate manufacturing complex in Ras al-Khair, one of the four new Special Economic Zones in the kingdom. The project aims to enhance the domestic manufacturing sector and export heavy steel plates to the GCC and MENA. It is expected to produce 1.5 million tonnes of steel plates per year.
ADNOC Gas signs LNG supply deal with TotalEnergies unit for $1.2bln
ADNOC Gas plc announced a three-year supply agreement valued at $1.2 billion with the French company TotalEnergies Gas and Power Limited for the export of liquefied natural gas (LNG). TotalEnergies LNG wil then export the LNG around the world, with a particular focus on the growing Asian market.
ADNOC scraps multibillion-dollar contracts for Hail and Ghasha Project
ADNOC has recently terminated two pre-construction services agreements for onshore and offshore operations on its Hail and Ghasha sour gas development project. Among the largest oil and gas ventures in the UAE, it plays a vital role in Abu Dhabi’s plans to boost its gas production capacity as the project would produce 1.5 billion cubic feet of gas per day.
Total of 96.6% of Japan’s March Imports of Oil Came from Arab Countries, Led by Saudi Crude
In March, Japan imported 96.6% of its crude oil from Arab countries, with Saudi Arabia and the UAE accounting for over 80% of the total. The five Arab Gulf Cooperation Council countries and the neutral zone between Saudi Arabia and Kuwait were the main sources as Japan has boycotted Iranian oil due to US sanctions.
US Confiscates Iran Oil Cargo on Tanker Amid Tehran Tensions
The U.S. confiscated Iranian oil from a tanker at sea as part of a sanctions enforcement operation. In response, Iran seized another U.S. oil-laden tanker. The tensions between the two countries have escalated over Iran’s nuclear program with the U.S. Navy confirming Iran’s seizure of a Marshall Islands-flagged tanker in the Gulf of Oman. U.S. senators have urged President Biden to remove policy hurdles preventing the seizure of Iranian oil shipments while the UN Secretary-General expresses his support for international maritime law.
Thousands of Iran Energy Workers to be Sacked, Replaced
After taking to the streets in protest of pay and working conditions, thousands in Iran’s petrochemical sector will be sacked and replaced, according to the CEO of the Pars Special Economic Energy Zone. The decision comes after employees in the Bushehr province, the site of Iran’s South Pars gas field, demanded salary increases and improved benefits. Previous labor protests in Iran have also highlighted dissatisfaction with low wages and high living costs, made worse by the sanctions.
Iran Navy Seizes Tanker Near Oman that was on Route to Houston
Iran’s navy has seized a Marshall Islands-flagged oil tanker, the Advantage Sweet, in the Gulf of Oman as it was heading to the U.S. The seizure comes amid tensions over Iran’s nuclear program. The U.S. Navy’s 5th Fleet has called for the immediate release of the tanker, stating that Iran’s actions are contrary to international law. Iran claims the seizure was in response to a collision with an unidentified ship in the Persian Gulf.
Seera’s Unit Pens $128.33mln Deal with Saudi Aramco
Lumi Rental Company, a subsidiary of Seera Group Holding, has signed a contract worth SAR 471.18 million with Aramco. The agreement entails leasing 3,003 vehicles to Aramco for a period of three to five years, as Lumi seeks to expand its operating assets through long-term leasing contracts.
Saudi Arabia and Iraq Discuss Electrical Interconnection Project
Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, met with Iraq’s Minister of Electricity, Ziyad Ali Fadel, in Riyadh to discuss the progress of the electrical interconnection project between the two countries. The project aims to enhance energy exchange, support reliable electrical networks, and promote renewable energy cooperation. The ministers also explored opportunities for Saudi companies to contribute to smart meter infrastructure development in Iraq and discussed exchanging experiences in financial and regulatory reforms within the electricity sector.
Saudi net reserves fall to $410 billion, lowest since 2010
Saudi Arabia’s foreign reserves have fallen to the lowest level in over 13 years. The country’s net foreign assets declined for the fifth consecutive month to $410 billion in April and are down more than 44% since peaking in August 2014. The decrease in reserves follows a change in Saudi Arabia’s approach to managing its oil wealth, with officials deciding to hold onto the money before determining its allocation. The government aims to maintain a specific level of reserves as a safeguard against potential economic shocks. The country’s fiscal outlook is also becoming less favorable, with the IMF projecting a budget deficit of 1.1% of GDP in contrast to the government’s expectation of a surplus. To address its financial needs, Saudi Arabia recently issued $6 billion worth of Islamic bonds.
Saudi Arabia’s Rabigh Solar Project Begins Operations
The photovoltaic power station project in Rabigh, Saudi Arabia has successfully connected to the grid and entered the operational phase. It is a significant component of the Saudi government’s ‘Vision 2030’ plan for diversifying energy sources and promoting energy transformation. The project will supply green and clean power to approximately 45,300 households, with an annual power generation of 894 million kWh and an estimated reduction of 779,900 tons of carbon dioxide emissions.
ACWA Power Receives Financing for 200MW Egyptian Solar Project
Saudi Arabia’s Acwa Power has secured a funding package of $123 million for the development of the 200MW Kom Ombo solar project in Egypt. The package was provided by international financial institutions including the EBRD, OPEC Fund, AfDB, GCF, Arab Bank, and SEFA. The project, while previously delayed due to global supply chain disruptions caused by the pandemic, is expected to generate enough clean energy to power 130,000 Egyptian households and offset 280,000 tons of carbon emissions annually, contributing to Egypt’s renewable energy targets.
Malaysian Contractor Lands $50 million Contract for Qatar Gas Field
Ranhill Utilities, in a joint venture with Worley, has secured a $50 million engineering contract for Qatar’s North Field Production Sustainability (NFPS) project. The contract, awarded by the Saipem subsidiary, involves engineering design work for offshore compression facilities. The project aims to sustain natural gas production at Qatar’s North Field and is expected to be completed by the third quarter of 2024.
Iraq to Achieve Gas Self-Sufficiency Within 3-5 Years
Iraqi Prime Minister Mohammed Shia’ al-Sudani announced that gas projects and a partnership with French energy giant TotalEnergies will enable Iraq to achieve self-sufficiency and become a gas exporter within 3-5 years. The agreement with TotalEnergies involves the construction of oil, gas, and renewables projects in southern Iraq, in exchange for a 40% stake in The Gas Growth Integrated Project.
Oman to Sign Multibillion-Dollar Hydrogen Deals
Oman’s Hydrom is set to sign official contracts with developers for multiple green hydrogen projects in the country. The agreements include a 47-year period of development and production and aim to support Oman’s goal of producing 1 million tonnes of green hydrogen annually by 2030. Developers will bid in consortiums and partner with a government-owned entity after the award.
ACWA Power Gets $174m Loan for 2 Uzbekistan Wind Power Projects
Saudi Arabia’s ACWA Power will develop two wind power plants in Uzbekistan with $174 million in loans from the Asian Development Bank (ADB). The projects, located in Bash and Dzhankeldy, will form the largest utility-scale wind power facility in Central West Asia and will also support the construction of a transmission line.
Iraq to Begin Construction of Three Refineries
Iraq’s Ministry of Oil has launched a tender process for the construction of three refineries as public-private partnership projects. The refineries include Al-Samawah, Al-Kut Investment, and Al-Nasiriyah, with capacities ranging from 70,000 to 150,000 barrels per day. The closing date for offers and required documents is 28 May 2023, with crude oil supply prices based on international prices with an 8% discount.
Oil Workers Strike Spreads Across Iran
Strikes by Iranian oil industry workers over inadequate wage growth are spreading rapidly across the country. This is part of broader protest and strike movements in recent weeks, which include teachers and retirees. Iran’s Gasoline supply issues have been exacerbated by this work slowdown.
Oman’s First Green Ammonia Plant By ACME To Launch By Mid-2025
Indian energy developer ACME will launch Oman’s first green ammonia plant in Duqm’s Special Economic Zone by mid-2025. The plant will be capable of producing 1.2 million tonnes of green ammonia per year. The total investment of $6 billion also covers the creation of a desalination facility, a hydrogen storage plant, and storage facilities for green ammonia.
Iran Hits Bottom Of Barrel On Gasoline Supply
Nationwide strikes in Iran’s energy industry have led to warnings of gasoline supply problems. Growing consumption is attributed to heavily subsidized low prices but the fear of triggering protests and concerns over inflation have prevented fuel price increases. Iran also faces shortages due to refining capacity limitations and fuel smuggling.
Iran to Begin Production from Sepehr, Jufair Oil Fields
Iran will officially start production from seven wells at Sepehr and Jufair oil fields in the Khuzestan Province, as of April 22nd. Iran’s Pasargad Energy Development Company is responsible for the plants” development and production, which is rising to 21,000 bpd. At full capacity, the Sepehr and Jufair fields would be capable of producing 450 million and 390 million bdp, respectively.
Putin Calls MBS to Discuss OPEC+ deal
Russian President Vladimir Putin called the Crown Prince of Saudi Arabia, Mohammed bin Salman, to discuss the OPEC+ deal to cap oil production. Earlier this month, OPEC+ oil producers announced further oil output cuts of around 1.16 million barrels per day in a surprise move.
OPEC+ Move to Extend Oil Cuts to Stir LPG Output Loss
OPEC+’s April decision to extend production cuts is projected to trigger a 1.6 million mt/year loss in LPG output should the reduction be fully achieved, according to a report by S&P Global Commodity Insights. This production cut adds to the 2 million b/d from November 2022 to December 2023, leading to a total cut of 3.16 million b/d. Non-OPEC+ countries such as the US, Canada, and Qatar are likely to offset these cuts.
Saudi’s Aramco Offers More Vacuum Gasoil Supplies for May
Saudi Aramco offered more vacuum gasoil (VGO) supplies – three cargoes of 525,000 barrels of VGO each – to be exported from its Jizan refinery in May, according to traders and shipping data. This signals that Aramco’s newest facility is yet to ramp up to full output as it had been expected to increase output for 10-ppm gasoil and cut VGO.
Iraq To Restart Kurdistan Oil Exports
Iraqi Prime Minister, Mohamed Shia al-Sudani, stated that exports of crude oil from the Kurdistan region to Turkey will resume by the end of the week. Kurdish crude oil exports were halted in late March after the ICC ruled that Turkey requires Iraqi approval to accept Kurdish oil exports. Part of the compromise between Erbil and Baghdad is that exports will go through the Iraqi state-owned oil company SOMO rather than the Kurdish authorities.
UAE Launches Global Competition for Sustainability Tech Startups
The UAE will host 24 high-potential technology startups from around the world to participate in its ‘Make it in the Emirates Startup Competition’. The competition consists of companies with sustainability-related innovations that can transform existing industries and plant the seed for green industries of the future. Here, the startups will have the opportunity to meet investors, policymakers, and industry partners to showcase their ideas as well as to develop and potentially deploy their technologies in the UAE.
Oil Prices Dip As Recession Fears Resurface
Oil prices dipped on April 19th, as the market assessed the latest hints from the Fed that one more rate hike could be coming in early May. Fed officials suggested that the new rate hike could be needed to offset bullish economic data from China, which recorded a higher-than-expected GDP growth in the first quarter of 2023. The potential move fuels concerns about a material economic slowdown that could further weigh on oil demand.
ACWA Power to develop 1,000 MW solar plant in Iraq
ACWA Power will build a 1,000 megawatt solar power plant in Iraq, the first clean energy project in the country. The joint venture project will be developed in Central Iraq’s Najaf city, around 160 km south of the capital, Baghdad.
Oil holds above $80/bbl on OPEC+ cuts and traders eye China recovery
Oil prices edged up, supported by OPEC+’s plans to cut more output, while investors eyed Chinese economic data for signs of a demand recovery by the world’s No. 2 oil consumer. The IEA warned that OPEC+ producers risk exacerbating an oil supply deficit expected in the second half of the year and could hurt consumers and a global economic recovery.
Qatar ‘reclaims’ position as world’s largest LNG exporter in 2022
Qatar “reclaimed” its position as the largest liquefied natural gas (LNG) exporter in the world with 80mn tonnes of LNG exports in 2022. In 2022, global LNG exports increased by 5% (18 mn tonnes) y-o-y to 399 mn tonnes, which represents a slowdown in the pace of growth in LNG exports.
Iraq’s Oil Exports Still Seeing 450,000 bpd offline
Turkey still hasn’t resumed the flow of crude oil from Iraq, with 450,000 bpd in Iraqi oil exports still offline, and is holding out for in-person negotiations to take place. After the International Chamber of Commerce ruled that Turkey must pay Iraq damages for receiving oil from the Kurdistan region of Iraq without Baghdad’s permission, Turkey responded by halting the flow of crude oil overseen by the Kurdistan Regional Government.
PTT to make $7 billion green hydrogen investment with ACWA Power
PTT Group, Thailand’s state-owned oil and gas conglomerate, is set to make a $7 billion green hydrogen investment with ACWA Power with the intention of powering clean vehicles in ASEAN (Association of Southeast Asian Nations). The objective of the clean energy project is to build a plant in Thailand that will be capable of producing 225,000 tons of green hydrogen annually.
China’s Sinopec to take 5% share in Qatar’s North Field East
China’s Sinopec will take a 5% stake in Qatar’s North Field East expansion, part of the world’s largest liquefied natural gas project. QatarEnergy has said it plans to retain a 75% stake overall in the North Field expansion which will cost at least $30 billion, including construction of liquefaction export facilities.
Masdar acquires 50% of U.S. solar project from EDF Renewables
Masdar closed the acquisition of a 50% stake in a combined solar and battery storage project from EDF Renewables North America. Masdar and EDF Renewables North America agreed in 2020 to jointly partner on the 1.6 GW portfolio, which includes three utility-scale wind projects in Nebraska and Texas totalling 815 MW, and five solar projects in California totalling 689 MW, two of which include battery energy storage systems representing 75 MW. The operational projects are displacing over 3 million tons of emissions per year.
Saudi and Iraqi officials discuss linking of power grids
Saudi Minister of Energy Prince Abdulaziz bin Salman and Iraqi Minister of Electricity Eng. Ziyad Ali Fadel discussed the progress of the project for linking power grids between the two countries. The Saudi-Iraqi interconnection project will support the reliability of the electrical networks in the two countries, enhance savings, ensure optimal energy exchange for electricity production, and attract optimal investments in electricity generation projects in Saudi Arabia and Iraq.
OPEC’s share of oil production growth to shrink this year
The U.S. Energy Information Administration has predicted that non-OPEC countries will account for a higher percentage of oil production gains in 2023 and 2024. According to the EIA, the total non-OPEC liquid fuels production is expected to grow by 1.9 million barrels per day (bpd) in 2023 and by 1 million bpd in 2024, while OPEC output will fall by 500,000 bpd in 2023, then rise by 1 million bpd in 2024.
Kuwait Oil Company awards $76 million oil flow lines contract
Combined Group Contracting, headquartered in Kuwait, has announced that it has secured a five-year contract worth $76.5 million for oil flow lines project issued from Kuwait Oil Company. The flow line projects will be in Umm Niqa And South Ratqa in Kuwait.
Saudi maintains crude supply to Asian refiners despite OPEC+ cuts
Aramco will supply full crude contract volumes loading to several North Asian buyers. This comes after OPEC+ surprised markets by announcing an extra output cut of 1.16 million barrels per day from May for the rest of the year.
White House Hails Erbil-Baghdad Oil Accord and Iraq-Total Agreement on $27 Billion Energy Project
White House National Security Advisor Jake Sullivan issued a statement welcoming the “significant progress in Iraq this week with respect to energy deals.” Sullivan hailed the agreement between Erbil and Baghdad on procedures that facilitate the resumption of oil exports from the Kurdistan Region through a pipeline to the Turkish port of Ceyhan as well as an energy project agreement between Baghdad and TotalEnergies.
Qatar to build two more solar power plants with a combined capacity of 880 MW
Qatar will have two more solar power plants with combined capacity of 880 megawatts within the next two years. The power plants in Mesaieed and Ras Laffan will have a capacity of 410 and 470 MW respectively. Building the power plants comes as part of implementing QatarEnergy’s updated Sustainability Strategy, which re-emphasises its commitment, as a major energy producer, to responsible production of clean and affordable energy to facilitate the energy transition.
Abu Dhabi’s Adnoc Seeks About $1 Billion in Logistics Unit IPO
Abu Dhabi National Oil Co. (ADNOC) is seeking to raise about $1 billion from the initial public offering of its shipping and logistics unit. ADNOC, which listed its gas business in March 2023, has added banks EFG Hermes, Credit Agricole SA, Societe Generale SA, Arqaam Capital Ltd., Abu Dhabi Commercial Bank PJSC and International Securities as joint bookrunners on the potential IPO of Adnoc Logistics & Services. Adnoc has been selling stakes in several of its units in recent years as the United Arab Emirates and Saudi Arabia lead a regional drive to fund the diversification of their energy-reliant economies and open up their markets to international investors.
QatarEnergy to acquire 25% stake in major Iraqi gas project
QatarEnergy has agreed to buy a 25% stake in Iraq’s Gas Growth Integrated Project, which was launched by TotalEnergies in 2021. The project aims to treat seawater for injection into oil reservoirs to boost production and to develop facilities to recover natural gas from flares in several oil fields in southern Iraq. The World Bank estimates that Iraq flares nearly 18 billion cubic meters of gas a year, a volume that, if recaptured, could be worth more than $2 billion.
Iraq agrees to 30% stake in TotalEnergies $27 bln energy project
Iraq has agreed to a smaller 30% stake in TotalEnergies’ long-delayed $27 billion project. The deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years, but it has experienced several setbacks amid disputes between Iraqi politicians over terms. A revival of the project is considered key to Baghdad’s efforts to reverse the exit of major oil companies from the country.
Oil prices soar after OPEC+ announces production cuts
Oil prices soared nearly 6% after Saudi Arabia and other major oil producers said that they will cut production by 1.15 million barrels per day from May until the end of 2023. The cuts in oil output by OPEC+ countries immediately pushed crude costs higher and are expected to boost gas prices in the U.S. and other countries. Higher oil prices will also complicate the efforts by central banks to rein in inflation.
Oman’s refinery products output jumps by 44%
According to preliminary statistics issued by the National Centre for Statistics and Information (NCSI), total refinery products in the Sultanate of Oman grew by 44% at the end of February, 2023. The NCSI statistics also showed that liquefied petroleum gas production rose by 62.9%, to reach 1,285,700 barrels, compared to 789,100 barrels during the same period last year.
Iraq and KRG reach deal to resume oil exports
Iraq’s federal government and the Kurdistan Regional Government (KRG) have reached an initial agreement to resume northern oil exports. The agreement will remain in effect until the oil and gas law bill is approved by the Iraqi Parliament. However, the resumption of pipeline flows from the KRG will still need approval from Turkey.
Iraq’s oil exports at 3.25mln bpd in March
Iraqi oil exports averaged 3.255 million barrels per day in March, 2023. The country’s March revenue was $7.4 billion with an average price per barrel of $73.37.
OPEC+ oil alliance announces surprise production cuts from May
Saudi Arabia and other OPEC+ oil producers have announced voluntary cuts, starting in May, to their production, amounting to about 1.15 million barrels per day (bpd) and calling it a “precautionary measure” aimed at market stability. These voluntary cuts come in addition to the 2 million bpd output cuts agreed upon by OPEC+ in October, 2022.
Saudi Aramco and Chinese partners join forces to build a major refinery
Aramco has announced an agreement with North Huajin Chemical and Panjin Xincheng to begin construction of a petrochemical and refinery complex in China’s Liaoning province. The complex will have a crude oil processing capacity of 400,000 barrels per day and a petrochemicals production capacity of 1.5 million tonnes per year. The construction will mark the first time Aramco has directly operated a refining plant outside of Saudi Arabia and is part of the company’s long-term goal of becoming an integral source of energy and chemicals for China.
US urges Iraq and Turkey to end disruptive oil export stoppage
The United States has urged Baghdad and Ankara to end the stop to the flow of Kurdistan Region’s oil through the Iraq-Turkey pipeline. The stoppage occurred as a response to the ruling from a Paris arbitration court that Turkey had violated an agreement with Iraq by allowing the Kurdistan Region to begin independent oil exports in 2014. Prior to the court ruling, the Kurdistan Region was exporting about 450,000 barrels per day, and the stoppage has contributed to a rise in oil prices.
Kazakhstan and UAE in Talks to Increase Tanker Fleet for Oil Exports via Caspian & Black Sea Regions
The Abu Dhabi Ports Group, a major logistics company, and KazMunayGas, Kazakhstan’s state-owned oil company, met to discuss expanding the Caspian Integrated Maritime Solutions tanker fleet with the aim to transport oil across the Caspian and Black Sea regions. The two sides plan to add tankers with a deadweight capacity ranging from 8,000 to 12,000 tonnes to the fleet.
According to delegates, OPEC+ unlikely to tweak oil policy
After oil prices recovered following a drop to 15-month lows, OPEC+ is likely to stick to its existing deal to cut oil output according to OPEC+ delegates. In November, 2022, OPEC+ reduced its output target by 2 million barrels per day and plans to maintain the reduction for the rest of 2023.
Qatar takes stakes in two Exxon oil and gas projects offshore Canada
QatarEnergy signed a deal for stakes in two of ExxonMobil’s offshore explorations in Canada. The agreement gives QatarEnergy a 28% interest in license EL 1167 as well as 40% in license EL 1162. QatarEnergy has in recent years expanded internationally, gaining stakes in oil and gas projects around the world by signing deals with major energy companies.
Qatar’s first Green Guarantee issued for a solar project
Standard Chartered Bank and Siemens Energy have issued Qatar’s first Green Guarantee for a solar power project. The project is projected to play a significant role in the country’s national climate change action strategy and Qatar’s goal of reducing its carbon footprint while enhancing its energy independence.
Saudi Aramco invests billions in China refinery deals
Saudi Arabia’s Aramco will invest billions of dollars in China’s downstream petrochemicals industry, including the construction of a new refinery. Aramco will acquire a 10% interest in China’s Rongsheng Petrochemical Co. Ltd., a purchase valued at $3.6 billion, and the company also plans to construct a new refinery and petrochemical complex in northeastern China through a joint venture.
BP and ADNOC offer to buy 50% of Israel’s NewMed Energy
BP and ADNOC have offered to jointly acquire 50% of NewMed Energy, an Israeli offshore natural gas producer, for around $2 billion. ADNOC and BP said they intend to form a new joint venture as part of the deal that will be “focused on gas development in international areas of mutual interest including the East Mediterranean.” The offer is also a sign of the strengthening economic links between Israel and the United Arab Emirates since the two countries agreed to normalize ties in 2020.
Oman’s OQ seeks bookrunners for gas pipelines IPO
Oman’s OQ Gas Network, the pipelines business of the oil giant OQ, has invited banks to pitch for bookrunner roles in its planned initial public offering. OQ Gas Network is preparing for a public share sale that could take place as early as June, and OQ could raise more than $500 million from the deal.
Oman Offers 3 Oil and Gas Concession Areas for Local and International Companies
According to a statement by the Ministry of Energy and Minerals, Oman is offering three oil and gas concession areas for local and international local companies between March 26 and June 25, 2023.
Iraq halts northern crude exports after winning arbitration case against Turkey
Iraq halted crude exports from the semi-autonomous Kurdistan region and northern Kirkuk fields after the country won a longstanding arbitration case against Turkey. The decision to stop shipments of 450,000 barrels per day of crude relates to a case from 2014, when Baghdad claimed that Turkey violated a joint agreement by allowing the Kurdistan Regional Government to export oil through a pipeline to the Turkish port of Ceyhan. A ceasing of exports through the pipeline would trigger an economic collapse for the Kurdistan Region of Iraq, and Turkey would need to source more crude from Iran and Russia to make up for the loss of northern Iraqi oil.
Saudi Aramco signs MoU with Samsung on localizing 5G tech
Aramco signed a Memorandum of Understanding with Samsung to localize 5G technology in Saudi Arabia. The collaboration aims to contribute to the digital transformation of various industrial sectors, such as energy, petrochemical, and manufacturing. The agreement with Samsung comes after the launch of Aramco Digital Company, which is also seeking to accelerate digital transformation in Saudi Arabia and the wider MENA region.
ENOC Group unveils five-pillar growth strategy to fuel its long-term sustainable vision
ENOC Group unveiled a five-pillar long-term growth strategy to fulfill the growing demands for reliable, secure, and sustainable energy locally and internationally. This new strategy comes after ENOC Group recorded its best performance in three decades in 2022.
Iran Seeks To Expand Nuclear and Renewable Energy Partnership With Russia
Iran’s Economy Minister Ehsan Khandouzi has stated that the country is looking to expand its partnership with Russia in the energy sector, including projects involving nuclear power and renewables. Both Russia and Iran are seeking to expand their economic and trade ties in order to offset Western sanctions.
Trina Solar and Al-Raebi signed 500MW solar energy deal for Yemen Market
Trina Solar and Al-Raebi for Trading signed a 5-year partnership agreement to supply 500MW of module shipments for the Yemeni market. Trina Solar will supply Al-Raebi with 100MW of its n-type i-TOPCon cell technology modules in 2023. The 5-year agreement will cater to Yemen’s increasing energy needs.
Iraq and TotalEnergies to finalize $27 billion deal soon
French oil major TotalEnergies and Iraq will soon finalize a long-delayed $27 billion energy deal and talks “have reached advanced stages.” The proposed deal was signed in 2021 for TotalEnergies to build four oil, gas and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years. Baghdad hopes the deal will revive foreign investment in the country.
Saudi ACWA Power signs deals to invest $2.5bln in green projects in Uzbekistan
Saudi Arabian utility developer ACWA Power has signed three power purchase agreements and investment agreements with Uzbekistan to develop solar and battery storage projects with a combined value of $2.5 billion. The project will potentially offset 16 million tonnes of carbon dioxide emissions a year in the Central Asian republic. Uzbekistan has set targets to generate 35%, or 15,000 MW, of its electricity from renewable sources by 2030, with 10,000 MW coming from solar and 5,000 MW from wind power.
Russia overtakes Saudi Arabia as China’s top oil supplier
Russia overtook Saudi Arabia to be China’s top oil supplier in the first two months of 2023. Western sanctions and a price cap on seaborne Russian crude following Russia’s invasion of Ukraine have limited the buyer pool for Russian supply, leading the country to trade at deep discounts to international benchmarks.
Oil prices recorded weekly loss of 12%, lowest since Dec 2021
Crude oil futures recorded losses of 12% in trading as a result of banking turmoil from the US Silicon Valley Bank’s bankruptcy, which has caused fears of a new global financial crisis and growing expectations regarding the US policy to raise interest rates. Al-Salem, chairman of the Kuwaiti Business Council, expects that bankruptcy and the diminishing ability to borrow will curb economic growth in the upcoming period, which will weaken demand for energy derivatives and reduce corporate profits.
Iraqi Foreign Minister announces that Baghdad expects to supply gas and oil to Europe
Fuad Hussein, head of the Iraqi Foreign Ministry, said that the country intends to invest in the development of oil and gas fields, and then arrange supplies to European countries. Hussein also stated that “Iraq, which is already an oil-producing country, will also become a gas-producing country.”
Saudi Arabia and Russia confirm oil production cuts until end of 2023
Saudi Arabia and Russia reaffirmed their commitment to the OPEC+ decision to cut production until the end of 2023 during a high-level meeting held in Riyadh. Saudi Energy Minister Prince Abdulaziz bin Salman, who is also the head of the Saudi side in the Joint Saudi-Russian Intergovernmental Commission on Trade, Economic, Scientific, and Technical Cooperation, met in Riyadh with Alexander Novak, Deputy Prime Minister of the Russian Federation and head of the Russian side in the joint committee, who had visited the Kingdom.
OPEC+ views oil price drop as financially driven
OPEC+ considers the drop in oil prices to be driven by financial fears, not any imbalance between demand and supply, and expects the market to stabilize. Oil sank to a 15-month low on March 15th on concerns about contagion from a banking crisis, and then stabilized on March 16th after Credit Suisse was thrown a financial lifeline by Swiss regulators. The comments will dampen speculation that OPEC+ is concerned about weakening prices and might consider further steps to support the market.
Iran’s Oil Exports Reach Five-Year High
Iran’s oil exports surged last year to their highest level since 2018. The country has exported 83 million more barrels of oil since the start of the Iranian year on March 21, 2022, than in the same period of the previous year. This was the highest level since the US reimposed sanctions on Iran 5 years ago.
OPEC+ to stick to production cut
Saudi Arabia’s energy minister Prince Abdulaziz bin Salman has said that the OPEC+ alliance will stick to the agreed production cuts until the end of the year.
Iran’s South pars gas company reports 42% increase in LPG production
Ahmad Bahoush, the managing director of South Pars Gas Company (SPGC), has announced that the production of liquefied petroleum gas (LPG) at the complex has increased by 42% during the 2023 Iranian calendar year, which ends on March 20th. The rise of LPG production at SPGC comes as Iran seeks to increase its non-oil exports to boost its economy, which has been struggling under the weight of international sanctions.
Oman Hydrogen signs $20 billion green hydrogen agreements
Oman Hydrogen has signed 6 agreements for green hydrogen production in Oman worth more than $20 billion. Oman aims to increase green hydrogen production from 32,500 to 3.75 million tonnes per year by 2040 and from 3.5 to 8.5 million tonnes per year by 2050. The country estimates that it will need a cumulative investment of $140 billion over this period to reach its production target by 2050.
OPEC predicts “modest” oil surplus amidst demand lull for Q2 2023
According to OPEC, global oil markets appear on track for a modest surplus next quarter amid a seasonal lull in demand. OPEC is pumping about 28.92 MMbpd, or about 300,000 barrels a day, more than it expects will be needed in the second quarter. The surplus could be even larger if Russian oil production continues to prove resilient to international sanctions, since OPEC’s outlook assumes a sharp drop in the country’s output next quarter.
Saudi Aramco eyes additional 3 million bpd export capacity by 2030
Saudi Aramco has said it is aiming for 3 million barrels per day of additional oil export capacity by the end of this decade. This increase would be led by incremental oil and gas projects in the country and by replacing liquid fuels.
Saudi energy minister: Kingdom will not sell oil to any country that imposes a price cap
Saudi Energy Minister Prince Abdulaziz bin Salman has said that the Kingdom will not sell oil to any country that attempts to impose a price cap on its supplies. According to Prince Abdulaziz, placing a ceiling on oil prices would inevitably lead to market instability, and Saudi Arabia would reduce its oil production.
Oman awards 500MW Manah Solar II IPP to Sembcorp Utilities-Jinko Power JV
Singapore-based energy company Sembcorp Industries has announced that it has received an award from Oman Power and Water Procurement Company (OPWP) to build, own and operate the Manah Solar II Independent Power Project in Manah, Oman. The 500 MW solar power plant is expected to be operational by 2025 and will be backed by a 20-year power purchase agreement with OPWP.
UAE’s ADNOC Gas shares surge 19% in $2.5bn IPO
Shares in the United Arab Emirates’ ADNOC Gas rose 19% on their first day of trading in a $2.5 billion initial public offering. At more than 50 times oversubscribed, it was the biggest demand ever seen for an initial public offering in the Middle East and North Africa.
Iran reports highest oil exports yet since US applied sanctions over nuclear deal
Iran has said that its oil exports had risen over the past year, reaching their highest level since the US imposed fresh sanctions in 2018. Oil Minister Javad Owji has stated that 83 million more barrels of oil were sold since the start of the Iranian year on March 21, 2022, than in the same period over 2021-2022.
Saudi Aramco makes a historic $161B profit in 2022
Saudi Aramco reported earning $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company. Profits rose 46.5% thanks to the rising energy prices after sanctions were placed on Russia for invading Ukraine.
Oman: Oil production increases by 3.6% in 2023
Oil production in the Sultanate of Oman increased by 3.6%. Crude oil production reached 25,978,600 barrels and condensate oil production reached about 7,45,200 barrels with the average price of oil in 2022 being $94/bbl.
Saudi Arabia And China Sign Clean Hydrogen Energy Agreement
The Saudi Ministry of Energy and the National Energy Administration of China have signed an agreement regarding clean hydrogen energy. The signing occurred after the Shura Council, one of the two main branches of Qatar’s legislative body, approved the draft agreement.
Saudi Aramco signs $6bn deal with Korea Eximbank
Korea Eximbank, also known as the Export-Import Bank of Korea, has signed a framework deal with Saudi Aramco. Korea Eximbank can lend as much as $6bn, with $1bn is set aside for the hydrogen and renewable energy deals, to Aramco, which in turn pays South Korean companies involved in projects whose orders were placed by the state-owned oil major.
Abu Dhabi’s EWEC aims to boost solar power generation capacity by 600%
Emirates Water and Electricity Company is targeting 7.3 GW, a 606% rise, in its solar power generation capacity by 2030 as the UAE pursues its target of achieving net zero by 2050. This requires an additional 3 gigawatts of solar power capacity by 2029 on top of the 1.5 gigawatts procured from the Al Ajban Solar PV Project once it becomes operational in 2026. The Emirates plans to invest $160 billion in clean and renewable energy sources over the next three decades.
Siemens Energy signs contracts for power plant maintenance in Iraq
Siemens Energy has signed contracts with Iraq’s Ministry of Electricity to maintain three power plants of around 1 GW for five years as well as train local employees in the field. Siemens Energy had already signed a memorandum of understanding for the expansion of electricity infrastructure with Iraq’s Minister of Electricity, Siad Ali Fadhil, in Berlin. Several projects, which together are expected to run into the billions, are intended to reduce the Iraq’s frequent power outages and cut CO2 emissions.
Oman’s OQ drilling unit raises $244m in IPO
Abraj Energy Services of OQ raised about 94 million Omani rials ($244 million) from its initial public offering. The IPO, the country’s biggest since 2010, sold more than 377 million shares and was “heavily oversubscribed,” generating more than 790 million Omani rials ($2 billion) in bids.
Adnoc Drilling recommends dividend of $341m for second half of 2022
Adnoc Drilling has recommended a dividend of $341.25 million for the second half of 2022. This represents a 5% annual increase and comes after the company posted a sharp rise in net profit for the year.
Iran says it’s discovered what could be the world’s second-largest lithium deposit
Iran says it has discovered a massive deposit of lithium in one of its western provinces. The ministry believes the deposit holds 8.5 million tons of lithium, which, if true, would make the deposit the second-largest known lithium reserve in the world after Chile. After several years of international sanctions, Iran’s economy would greatly benefit from the export of this valuable resource.
Oman set to award over $700 million contracts for solar energy projects
Oman Power and Water Procurement Company is awarding solar energy projects worth $777 million to international investors after securing approvals from the Authority for Public Services Regulation. The Manah 1 and 2 projects, which will jointly produce a total of 1,000MW, is set to come up on a 15 million sq m area within the Governorate of A’Dakhiliyah. About 2 million solar panels will be installed in these two stations, which will be the largest solar panel project for Oman.
Houston summit brings OPEC officials and heads of US oil companies together to discuss energy issues
Executives from major U.S. oil companies and top OPEC officials held private meetings on the sidelines of a Houston conference to discuss energy issues, continuing a tradition that began nearly five years ago when the two sides were at odds. Both parties are enjoying strong global demand for oil and gas and have posted record profits over the past year.
Russian crude oil heads to UAE as sanctions divert flows
The United Arab Emirates has been taking more cargoes of Russian crude oil, an example of how Western sanctions on Russia have adjusted traditional energy trade flows. Russia has been selling both crude and refined products at discounted prices after international sanctions over its invasion of Ukraine. The development also highlights growing cooperation between Russia and top Gulf oil producers, such as Saudi Arabia and the UAE.
Japan’s JBIC to provide $103mln green loan for Saudi-Egypt interconnection project
The Japan Bank for International Cooperation will provide a “green” loan of $103 million to the Saudi Electricity Company for an electricity interconnection project that will link Saudi Arabia and Egypt. The interconnection project comprises a 3,000 MW high-voltage direct current system with 1,350 km of overhead power lines and 22 km of submarine cables to connect northwestern Saudi Arabia and Egypt.
ADNOC Raises $2.5 Billion in Gas IPO
Abu Dhabi National Oil Co (ADNOC) has netted $2.5 billion from the initial public offering of its subsidiary ADNOC Gas. This biggest-ever issue in Abu Dhabi was oversubscribed more than 50 times as investors placed offers worth $124 billion for a 5% stake in the United Arab Emirates-based firm.
QatarEnergy strikes oil again in Namibia
QatarEnergy announced a light oil discovery in the Jonker-1X deep-water exploration well, which marks the company’s third recent discovery offshore Namibia. QatarEnergy announced two similar discoveries in February 2022 in the Graff-1 well and in the Venus-1X prospect, both located in the Orange Basin offshore Namibia.
Saudi Arabia’s ACWA Power to build two solar plants in Uzbekistan
According to Uzbekistan’s Energy Ministry, Saudi Arabia’s ACWA Power will build two solar plants in Uzbekistan with a total capacity of 1.4 gigawatts and three power storage systems with a combined capacity of 1.2 gigawatts. The two parties have signed investment agreements on the project worth $2.5 billion and deals under which Uzbekistan will buy power from the facilities. Uzbekistan plans to produce more than a third of its energy from renewable sources by 2030.
Eni agrees on energy deal with UAE’s ADNOC as Italy rebuilds relationship
Italian oil and gas group Eni has said it will cooperate with Abu Dhabi National Oil Co (ADNOC) on energy transition projects. State-controlled Eni said that together with ADNOC it will explore opportunities in renewable energy, blue and green hydrogen and carbon dioxide capture and storage. They will also work on reducing greenhouse gas and methane gas emissions, as well as routine gas flaring. The two countries are working to rebuild ties after tensions from 2021.
Iran Says Questions About Suspected Highly Enriched Uranium Are Resolved
The head of Iran’s Atomic Energy Organization, Mohammad Eslami, has claimed that “ambiguities have been resolved” over the presence of the particles at its Fordow enrichment plant. However, the International Atomic Energy Agency’s director has also stated that more work needs to be done. The International Atomic Energy Agency reported a week before that inspectors detected uranium particles enriched to 84% purity, near weapons-grade level, in Iran.
Adnoc Gas Draws $124 Billion of Orders for $2.5 Billion IPO
Abu Dhabi’s Adnoc Gas raised $2.5 billion from its initial public offering. Investors placed $124 billion of orders for a 5% stake in Adnoc Gas, an oversubscription level of more than 50 times.
TotalEnergies expands its upstream portfolio in UAE with several offshore fields
TotalEnergies has inked a deal with CEPSA to acquire its upstream assets in the United Arab Emirates, which will enable the major oil company to add multiple offshore fields to its asset portfolio. The company will acquire a 20% participating interest in the Satah Al Razboot, Umm Lulu, Bin Nasher, and Al Bateel offshore concession.
SABIC announces strategic project to manufacture catalysts
SABIC announced a strategic project to manufacture catalysts with the aim of transforming Saudi Arabia into a manufacturing hub for specialized materials. The project will contribute to industrial advancements as envisioned in Saudi Vision 2030, including improving competitiveness of the energy sector, developing industries associated with oil and gas, and raising the level of local content in the area.
$8.5 Billion Financing Agreement for Green Hydrogen Project in Saudi’s Neom
Acwa Power has closed a financing agreement worth $8.5 billion for a sizable green hydrogen project that will be built at Saudi Arabia’s futuristic city Neom. The project’s funding will come from a combination of long-term debt and equity.
ACWA Power signs MoU with Pupuk Indonesia for large-scale green hydrogen project
ACWA Power and Indonesia’s state-owned fertilizer producer Pupuk Indonesia have signed a Memorandum of Understanding to develop a large-scale green hydrogen project. Pupuk Indonesia PT is the largest fertilizer manufacturer in Southeast Asia with a total production capacity of 12.71 million tons per year.
Arab Crude Oil Reaches 94.4% Of Japan’s Imports In January
The total crude oil Japan imported in January amounted to 84.423 million barrels with 94.4% of that amount coming from the five GCC countries of Saudi Arabia, UAE, Kuwait, Qatar and Oman, according to data from the Agency for Natural Resources and Energy of the Japanese Ministry of Economy, Trade and Industry.
IAEA report pressing Iran on uranium enrichment to near bomb-grade
The International Atomic Energy Agency is in discussions with Iran on the origin of uranium particles enriched up to 83.7% purity, very close to weapons grade, at its Fordow enrichment plant. Iran has denied ever having sought nuclear weapons and states that it only wants to master nuclear technology for civil uses.
IPO final session highlights detailed offerings of Abraj Energy’s shares
As part of its IPO introductory sessions tour, Abraj Energy, a subsidiary of OQ, organized its last introductory meeting, in cooperation with the branch of the Oman Chamber of Commerce and Industry in Dhofar Governorate. Eng. Saif Al Hamhami, Chief Executive Officer of Abraj Energy Services said that by listing its shares for the public offering, the company aims to build a strategic partnership with local, regional, and international investors.
Madayn Signs Agreement With Solar Wadi For 100-MW Solar PV Plant In Suhar Industrial City, Oman
The Public Establishment for Industrial Estates (Madayn) signed an agreement with an Oman renewable energy company, Solar Wadi, for the allocation of land in Suhar Industrial City for the construction of a 100-MW solar PV plant. The total investment in Suhar Industrial City is RO 2.3 billion. There are more than 360 industrial projects on an area of 29 million square metres.
Saudi Arabia Moves Forward With Bids For Nuclear Plant
Saudi Arabia is progressing with its plans to build its first nuclear power plant and has received a number of bids. The Saudi Ministry of Finance’s 2023 budget statement published on February 15 notes that bids to build the plant were received last December. Saudi Arabia has been interested in nuclear energy for decades and recently, it has been considering developing nuclear energy for peaceful purposes. This is also in line with the kingdom’s strategy to diversify its energy mix and in doing so, reduce its dependence on oil.
Oman’s Abraj Energy Forms Strategic Partnership To Explore Oil In Kuwait
Oman’s oil and gas drilling services firm, Abraj Energy, is set to explore oil in Kuwait. It has signed an agreement with the Kuwaiti national oil company, Kuwait Gulf Oil Co., and the Saudi Arabian-based chemical plant, Saudi Chevron Co. Abraj Energy will explore ways to extract oil in Kuwait. The agreement aims to strengthen and expand Abraj Energy’s operations in the Middle East and North Africa region.
Baynouna Solar Energy Station Opens
The Baynouna Solar Park, the largest clean energy project in Jordan, was inaugurated in a ceremony. The 200-megawatt station was carried out by Baynouna Solar Energy Company, a joint venture between the UAE’s energy company, Masdar, and Finnish investment and asset management group Taaleri. This project is said to have strengthened the strategic relationship between the UAE and Jordan and support Jordan’s goal of receiving 50% of its electricity from renewable sources by 2030.
Iraq’s January Output Hits 10-Month Low
Iraq’s crude output fell by around 100,000 barrels per day in January to 4.29 million b/d, according to Energy Intelligence estimates, its lowest in 10 months and 140,000 b/d below its Opec production target, due to weather-related loading disruptions at Basrah and refinery turnarounds. The weather disruptions caused a build in Basrah crude stocks which forced the oil ministry to cut production.
Adnoc Gas $2 billion IPO covered in hours
Within hours after the initial public offering kicked off, Adnoc Gas’ initial public offering order book was fully covered. Abu Dhabi National Oil Co. sold a 4% stake in Adnoc Gas, offering 3 billion shares between Dh2.25 and Dh2.43. The company will be valued at $50.8 billion, making it one of the world’s largest listed gas firms.
Japanese corporation to explore role in Oman green ammonia project
Japanese heavy engineering manufacturer IHI Corporation and Indian green energy developer ACME Group have signed a Memorandum of Understanding. Backed by India, Japan could potentially be participating in a green ammonia project currently under development in Oman. The cooperation between Japan and Oman would build on a broader pledge by the two countries to cooperate across the green energy value chain.
Iraq Partners With UAE And Chinese Firms To Develop Six Oil And Gas Fields
Iraq has signed deals with two Chinese companies and UAE-based Crescent Petroleum for the development of six oil and gas fields. This is an effort by the country to cut gas imports by improving domestic production of oil and gas. Under the 20-year contract, Crescent will develop the Gilabat-Qumar and Khashim fields in Diyala. The fields are expected to initially produce 250 million standard cubic feet per day of natural gas. Crescent Petroleum exploration and production executive director Abdulla Al Qadi said, “Gas and oil supplies from these operations will help improve services and local economic development for the people of Iraq.” This comes in light of Iraq signing two other contracts with China’s Geo-Jade for the exploration and development rights to the Huwaiza oilfield in the south, and the Naft Khana, northeast of Baghdad.
Iran Ready To Build Oil Refineries For Turkmenistan: Deputy Minister
Iran’s Deputy Minister of Oil for Engineering, Research and Technology Vahidreza Zeydifard has said that Tehran is ready to build oil refineries in the Central Asian country. Over 70% of the equipment used to build the refineries is to come from Iran itself and will be exported to Turkmenistan. There have been positive dynamics in the growth of trade between the two countries. In June 2022, the Iranian and Turkmen presidents signed a series of nine Memorandums of Understanding ranging from finance to energy.
Saudi Arabia’s Oil Revenues Reach $326bn IIn 2022, Highest In 10 Years
According to local reports released on 21 February, Saudi Arabia achieved its highest oil revenues in 2022 in the past 10 years, amounting to $326 billion. However, even though it reached its highest revenue, Bloomberg reported that the kingdom’s monthly oil revenues decreased in the second half of the year. Saudi Arabia’s oil exports amount to 70% of its total exports that year.
TotalEnergies becomes QatarEnergy’s first partner on the North Field South LNG project
TotalEnergies, already involved in the North Field East liquefied natural gas (LNG) project, has been chosen as the first international partner for the North Field South LNG project. Under the new agreement with QatarEnergy, TotalEnergies will gain a 9.375% stake in the North Field South project. TotalEnergies has taken stake with what is claimed to be the world’s largest LNG project in terms of capacity.
UAE’s Crescent Petroleum signs agreements to develop Iraqi oil and gas fields
Sharjah energy company Crescent Petroleum has signed three 20-year agreements to develop oil and gas fields in Iraq, as the country seeks international collaboration to boost its energy supply. The company will produce gas in two oil and gas blocks in the northern Diyala province and explore a third block in Basra. These operations are expected to increase local economic development within Iraq.
Saudi energy minister says OPEC+ is flexible enough to change decisions whenever required
At a media forum in Riyadh, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman stated that the OPEC+ alliance is flexible enough to change decisions whenever it is required.
Energy Giant Saudi Aramco Signs Agreement With droppGroup to Build Web3 Tech
Saudi Arabian Oil Group (Saudi Aramco) has signed a memorandum of understanding with droppGroup to explore co-developing a range of Web3 technologies. The Web3, the third generation of the internet driven by blockchain technology, applications will be aimed at helping Aramco’s employees, including potential on-boarding, training ecosystems, as well as a tokenized network and rewards program.
Omani oil and gas sector to witness growth over next 5 years
According to a report, Oman’s oil and gas sector will witness growth with a compound annual growth rate of more than 5 percent during the period from 2023 to 2028. Factors such as supportive government policies and efforts to develop the sector along with future projects are expected to drive the growth of the market.
Executive Director of IEA warns of energy supply shortage next winter
Executive Director of the International Energy Agency (IEA) Fatih Birol has warned of possible energy shortages next winter. Birol has said an additional 23 billion cubic metres of LNG is expected this year and that China would likely swallow 80 percent of the extra gas. He has also stated that European households and firms need to continue efforts to reduce gas usage, renewable energy outputs need to expand faster, and countries should reconsider their plans to phase out nuclear energy.
US and Canada ready to work with Iraq to tackle gas flare
According to the US and Canada ambassadors, the two countries are willing to help Iraq by investing in gas capture technology in order to boost power production and reduce the adverse health implications of the emissions. Iraq is the second-highest emitter of gas flares in the world, flaring around 16 billion cubic meters of gas on a daily basis. If captured, the gas could potentially power around 3 million homes.
Iraqi Premier and European Commission address European investments in Iraq
Iraqi Prime Minister, Muhammed Shia Al-Sudani, met with European Commission President, Ursula von der Leyen, on the sidelines of the 59th Munich Security Conference. The President of the European Commission expressed the EU’s cooperation and determination to forge productive partnerships in energy, particularly in the renewable energy sector.
ExxonMobil Sells Iraq Stake To Pertamina
American giant ExxonMobil has confirmed that “ExxonMobil Iraq Limited reached an agreement with Pertamina to sell 10% of EMIL’s interest in West Qurna I.” Exxon has been seeking to quit the field and Iraq entirely since January 2021, but Baghdad blocked its planned sale to Chinese firms, prompting Exxon to file for arbitration.
Iraqi Ministry of Electricity and GE sign Principles of Cooperation
GE has signed Principles of Cooperation in Energy with the Ministry of Electricity, Republic of Iraq. The initiative aims to explore opportunities to increase Iraq’s output through a variety of different methods, such as establishing new power plants, expanding capacity at existing facilities, and driving the decarbonization of the country’s energy sector. The overall goal is to help “address the current electricity shortfall across Iraq and meet the growing power needs of the people to accelerate the nation’s sustainable economic development.”
Saudi Energy Minister says OPEC+ deal will continue until end of year
Saudi Energy Minister Prince Abdulaziz bin Salman has stated that the current OPEC+ deal on oil output would be locked in until the end of the year, adding that he has remained cautious about Chinese demand forecasts. OPEC+ agreed in October 2022 to cut oil production targets by 2 million barrels per day until the end of 2023.
Kuwait invites bids to power oil and gas facilities with renewable energy
According to a report, the Kuwait National Petroleum Co and the Kuwait Integrated Petroleum Industries Co have invited consultancy bids from five Western firms to study the use of renewable energy. The two companies want to follow a trend by most operators in the oil sector to switch to clean fuel, mainly solar and wind energy.
RWE receives first LNG cargo at Brunsbuettel port
Utility RWE’s RWEG.DE trading arm received the first cargo of liquefied natural gas under a deal with Abu Dhabi National Oil Company as part of German efforts to ensure supply after cuts to Russian gas exports. ADNOC and RWE agreed to a deal last year for several years of LNG supplies to Germany starting from 2023.
Vale acquires Oman’s OQ 30% stake in Vale Oman
Brazilian mining company Vale has bought back a 30% stake in Vale Oman from Oman’s state energy company OQ. Vale Oman has become a 100% foreign company after the acquisition.
China’s CNPC set to seal Qatari LNG deal
China National Petroleum Corp is close to finalizing a deal to buy liquefied natural gas from QatarEnergy’s North Field expansion project for over 30 years. If sealed, this would be the second such deal between major LNG exporter Qatar and China, the world’s second-highest LNG buyer, as Beijing looks to beef up gas supply and diversify its sources in a drive to replace coal and cut carbon emissions.
OPEC Secretary General shares expectation that oil demand to reach pre-pandemic levels this year
OPEC Secretary General Haitham Al Ghais has stated that the group expects oil demand to exceed pre-pandemic levels this year, reaching almost 102 million barrels a day. He also stated that demand is projected to further rise to 110 million barrels per day by 2025.
Abu Dhabi’s ADNOC Drilling net profit rises 33% in 2022
Abu Dhabi’s ADNOC Drilling reported a rise of 33% in 2022 net profit, with revenue boosted by its onshore and oilfield services businesses. The company said its results were largely driven by new rigs entering its operational fleet, now consisting of 115 rigs. The company also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion, representing year-on-year growth of up to 20%, and is expecting record net profit in 2023 of $850 million to $1 billion in the same period.
Oman Oil-Drilling IPO Draws PIF as Anchor Investor
Oman’s OQ SAOC plans to raise as much as $244 million from the initial public offering of its oil-drilling unit and has brought in Saudi Arabia’s wealth fund as an anchor investor. Three subsidiaries of state-owned energy firm OQ are selling 49% of Abraj Energy Services SAOC — or just over 377 million shares. Oman is joining the Gulf’s listing boom, which has mainly been confined to Saudi Arabia and the United Arab Emirates.
Germany in advanced talks with Oman for natural gas supplies
Germany has been in talks with Oman to sign a long-term agreement that would last at least 10 years. Two sources with direct knowledge of the matter said the deal with Oman would be for between 0.5-1 million tonnes per annum (mtpa), with one specifying around 0.8 mtpa over 10 years. This comes in light of Berlin searching for an alternative to Russian fuel supplies. As a result of the war in Ukraine, Europe has been trying to replace all Russian energy imports by mid-2024.
Adnoc Natural Gas, LNG IPO Seen as ‘Highly Feasible’ Amid Broader Expansion Plans
Abu Dhabi National Oil Co. (Adnoc) is advancing plans to launch an initial public offering (IPO) that would combine the United Arab Emirates’ (UAE) largest natural gas companies as part of a broader plan aimed at attracting more foreign investors and funding for long-term projects. The new company would bring Adnoc’s liquefied natural gas and gas processing units together to form Adnoc Gas. The newly formed company would have a production capacity of 10 Bcf/d across eight onshore and offshore sites and a pipeline network of more than 2,020 miles, making it one of the largest gas processing and marketing companies in the Middle East.
Dana Gas reports 53% rise in adjusted net profit for 2022
Middle East’s private natural gas company, Dana Gas, reported an adjusted net profit of Dhs718m ($196m) for the full year of 2022, on the back of high energy prices, and the group’s adjusted net profit last year grew 53% from Dhs469m ($128m) earned in 2021. The CEO stated that the results are a testament to Dana Gas’ ability to control costs and maintain production levels amid a prolonged environment of high energy prices.
Iraq awards 6 oil concessions to UAE and Chinese firms
As part of the fifth licensing round for Iraq, Sharjah-based Crescent Petroleum, the Middle East’s largest private upstream oil and gas company, was awarded three concessions covering the production and development of oil and gas fields, and three concessions were awarded to the Chinese Geo-Jade Petroleum Company. Three of the fields are located in Basra in South Iraq, while the other three are in the Northeastern Diyala Governorate.
Saudi Wealth Fund Raises $5.5 Billion From Green Bond Sale
Saudi Arabia’s sovereign wealth fund raised $5.5 billion from a three-part green bond sale, the second debt offering by the Public Investment Fund within four months. The PIF secured more than $32 billion of orders for the bonds that have maturities of 7, 12 and 30 years. The PIF plans to use the proceeds for general corporate purposes and to finance, refinance and invest in green projects.
SABIC plans $1.3bn investments in second stage of energy transition
Saudi Basic Industries Corp. is set to invest $1.3 billion in the second phase of its energy transition. Speaking during a panel discussion at the 44th International Association of Energy Economics Conference, a SABIC official revealed that in the first phase of its transition worth $1 billion, the company recorded a 10 percent drop in carbon emissions.
Oman LNG inks 4-year deal to supply China’s Unipec with 1 mln tonnes of LNG a year
Oman LNG has agreed to supply China’s Unipec with around 1 million metric tonnes of liquefied natural gas per year for four years starting in 2025. This is the first contract that Oman LNG has signed with a Chinese firm, with the contract being a step that “promotes the company’s efforts to reach new markets.”
Turkey’s Ceyhan Oil terminal and Iraq KRG Pipeline halted after quake
A major earthquake that struck Turkey and Syria has halted operations at Turkey’s oil terminal in Ceyhan and flows via Iraq’s northern oil export pipeline from Kirkuk. Iraq’s Kurdistan Regional Government, which halted flows through the pipeline which runs from Iraq’s northern Kirkuk fields to Ceyhan, had been pumping 400,000 barrels per day (bpd) and Iraq’s federal government was pumping 75,000 bpd through the pipeline.
Iran Begins Exploitation of ‘Biggest’ Uranium Mine
Iran has started the exploitation phase in the central province of Yazd for what is believed to be the biggest uranium mine. After extraction, the uranium from this mine will apparently be sent to Isfahan for purification and for making nuclear fuel. According to Mohammed Eslami, head of the Atomic Energy Organisation of Iran (AEOI), “expanding nuclear power production and application of radiation are among the major goals pursued by the AEOI as part of the comprehensive strategic plan for the nuclear industry”.
Alfanar sign $1.5bn deal with Daewoo E&C during iktva 2023
During Saudi Aramco’s iktva 2023 Forum and Exhibition, Amer Al-Ajmi, executive vice president of Alfanar, and Sungmin Yang, senior vice president of Daewoo, signed a $1.5 billion agreement aimed towards joint cooperation in future projects for the oil, gas and petrochemicals sectors. Through this agreement, Alfanar will work on transferring and localizing expertise in the engineering construction field, and exchanging the expertise of advanced technologies used in design, procurement and project execution for the oil, gas and petrochemicals sectors.
GE, Samsung C&T, EDF in race for 7.2GW Saudi power projects
Saudi Power Procurement Company has announced that 21 major developer/developer consortiums, including global energy leader GE, French utility major EDF, Samsung and India’s energy conglomerate NTPC, have prequalified for the development of four combined-cycle electrical power generation projects with provision for Carbon Capture and Sequestration readiness. Each of the projects boast a capacity of 1,800 MW, and will be located in either Taiba or Qassim City within the Kingdom.
Total refinery products in Oman rises by 4%
According to the latest data issued by the National Centre for Statistics and Information, the total refinery products in the Sultanate of Oman increased by 4% until the end of December 2022 compared to the same period in 2021. While Oman’s production of diesel and benzene decreased, the production of petrol, standard grade petrol, and polypropylene increased.
Iran signs $900 milllion deal with local firm to develop Kish offshore gas field
Iran signed a $900 million contract with Iranian Offshore Engineering and Construction Co (IOEC) to develop the first phase of its Kish offshore gas field in the Gulf. Under the contract, IOEC will launch production of 28 million cubic meters per day of gas in 14 months, which will be sent to installations in Asalouyeh on Iran’s Gulf coast via a 210 km undersea pipeline.
Saudi energy minister warns sanctions could result in energy shortages
During an industry conference in Riyadh, Saudi Energy Minister Prince Abdulaziz bin Salman warned that sanctions and underinvestment in the energy sector could result in a shortage of energy supplies. This was stated during a time when the European Union has imposed a series of sanctions against Russia, reducing Russian energy exports, and other Western powers have also imposed measures as they seek to further limit Moscow’s ability to fund its war in Ukraine.
Aramco Sets Out Project Plans for the Next Three Years
Saudi Aramco expects to award contracts for some 90 projects over the next three years as it presses ahead with major expansions of its upstream oil and gas capacity. Aramco is apparently ramping up investment again after a slow period during the Covid-19 pandemic and the accompanying economic slowdown.
Saudi Arabia Plans Trillion Riyal worth of Clean Power Investments
Saudi Arabia plans to invest more than SR1 trillion ($270bn) into its power sector by 2030 in order to boost clean energy generation capacity and expand and modernize its transmission and distribution networks. The kingdom intends for the powergen mix to be split 50:50 between gas and renewables by 2030, entailing the development of 58.7GW of renewable capacity. This will displace more than 1mn b/d of oil from the power and water sector, freeing volumes up to be exported to global markets.
Basra Oil Company head expects Qatar to take 20-25% stake in TotalEnergies’ Iraq project
The head of Iraq’s Basra Oil Company (BOC) expects Qatar to acquire a 20-25% stake in TotalEnergies’ $27 billion cluster of energy projects in the country, with the Baghdad government aiming to hold around 40%. Although talks are still ongoing, the major investment from a Gulf State is considered to be a step towards countering Iranian influence within Iraq.
Gas to Reach Sea of Oman Coasts
The third largest gas project in the Sistan-Baluchestan Province of Oman will become operational soon with the completion of the 290 km Iranshahr-Chabahar-Konarak gas pipeline. The project will supply gas to the southern regions of the province and the coasts alongside the Sea of Oman. It is considered that this project, in addition to providing the energy needed by petrochemical units and power plants in the region, will help with the sustainable development in the southeast of Iran, and improve economic, industrial and tourism activities in the underprivileged province.
Saudi energy minister invites oil companies to move their headquarters to Dhahran
Saudi Arabia’s Energy Minister Prince Abdulaziz Bin Salman has called on the global oil companies to move their headquarters to Dhahran in the Eastern Province of Saudi Arabia and home to Saudi Aramco. Prince Abdulaziz made these remarks during his speech at the seventh edition Aramco’s iktva exhibition 2023.
OPEC+ seen sticking with oil output policy at February 1st meeting
An OPEC+ panel is likely to recommend keeping the oil producer group’s current output policy unchanged when it meets this week. OPEC+ agreed in October to cut its production target by 2 million barrels per day, about 2% of world demand, from November until the end of 2023.
Turkey and Oman sign deal to purchase 1.4B cubic meters of gas per year
The Turkish energy minister has announced that Turkey is signing a new gas deal with Oman, a move to diversify Ankara’s gas supplies. Turkey also entered similar deals with Bulgaria, North Macedonia, Romania and Moldova. Turkey is looking to become a gas trade center at a time when Europe suffers from gas supply problems.
Saudi Arabia will invest $266 billion in clean energy
According to Energy Minister Prince Abdulaziz bin Salman, Saudi Arabia will invest one trillion riyals to generate “cleaner energy” and add transport lines and distribution networks. The eventual goal is to export energy to the world and produce clean hydrogen. He also stated that Saudi Arabia is determined to become the leading exporter of hydrogen.
Saudi Crown Prince and Putin discuss OPEC+ cooperation for oil market stability
Saudi Arabia’s Crown Prince Mohammed bin Salman discussed in a phone call with Russian President Vladimir Putin cooperation within the OPEC+ group countries to maintain the stability of the oil market. The Crown Prince and Putin also discussed further development of bilateral cooperation in the political, trade, economic and energy fields. Although the current oil prices in the market are stable, there remains a factor of uncertainty when it comes to how supply will be impacted with the recent Western sanctions on Russia’s oil industry imposed over Moscow’s war on Ukraine, as well as the price caps introduced on Russian products in December.
Iranian gas supplies to Iraq stop
The Iraqi Minister of Electricity, Ziyad Ali Fadel, announced that Iraq’s imports of Iranian gas completely stopped due to maintenance works in the gas pipeline inside Iran. The current rate of electric power production in Iraq is only 15,000 megawatts out of 24,000 megawatts, due to Iran’s halt in gas supplies to Iraqi power plants. The Iraqi government is currently working to tackle the problem of gas imports from Iran, which are 40 million cubic meters per day, in cooperation with international companies to invest in Iraqi gas.
Iraq Militia states that Basrah-Aqaba oil pipeline ‘will never be’
Iraqi aspirations to move ahead with a long-planned crude pipeline from Basrah to Aqaba in Jordan have been dealt a major blow after Ali al-Asadi, head of Iraq’s Harakat Hezbollah al-Nujaba (HaN), said the project will “never” happen. Al-Asadi issued the statement after Iraqi lawmaker Mustafa Jabbar Sanad revealed that Jordanian officials had met with senior Iraqi Shia, Sunni, and Kurdish officials and agreed on the pipeline’s implementation.
Tanzania and UAE firm sign petroleum facility deal
The Tanzania government signed a Memorandum of Understanding with a United Arab Emirates firm for the construction of petroleum receiving and storage infrastructures. The deal was signed by the Ministry of Energy and representatives of the UAE-based Emirates National Oil Company Group. The decision aims at making Tanzania a petroleum hub in East and Central Africa as well as sustaining the country’s fuel demands for up to six months.
Aramco invests $14 million into drone business
Wa’ed Ventures, the venture capital arm of Aramco, has invested $14 million into Japanese drone provider Terra Drone Corporation. The financing involves the establishment of a new subsidiary in the Kingdom of Saudi Arabia, Terra Drone Arabia, to conduct drone survey, inspection and unmanned traffic management across various projects. This support is in line with the Saudi government’s “Vision 2030” reform plan, which seeks to stimulate economic transformation in the country by reducing its dependence on hydrocarbons.
Qatar’s energy giant joins Lebanon gas exploration group
Qatar’s state-owned oil and gas company will participate in oil and gas exploration of two offshore blocks off the coast of Lebanon, joining France’s TotalEnergies and Italy’s Eni. Lebanon told TotalEnergies and Eni to start gas exploration after an agreement with Israel regarding the maritime territory. QatarEnergy’s participation in the consortium also demonstrates Qatar’s continued interest in helping Lebanon to secure its own gas supply and alleviate Lebanon’s current economic crisis.
Qatar in talks to join TotalEnergies’ $27 billion Iraqi energy project
Qatar is in talks to acquire a stake from French company TotalEnergies’ $27 billion cluster of energy projects in Iraq as Baghdad hopes to stem efforts by Western energy companies to exit the country. QatarEnergy is looking to acquire a stake of around 30% in the project. A major investment by a Gulf state would mark an important win for Iraqi Prime Minister Mohammed al-Sudani, who took office last October following more than a year of political turmoil, and would also be considered a step towards countering Iranian influence.
Oman allocates 250 km2 for solar and wind farms in Duqm SEZ
Duqm is expected to become the biggest contributor to Oman’s sustainability goals, allocating 250sq km for solar and wind farms that will then produce green hydrogen and green ammonia for local use and for export. Two licenses have already been granted; one of which is at the stage of implementing a 300 MW plant while the other is at the stage of detailed studies for a much larger capacity.
Oman’s OQ will inaugurate Bisat oil field on January 26
The Bisat oil field in Oman’s Block 60 concession area – which is operated by the sultanate’s global integrated energy company OQ – will be inaugurated. The Bisat oil field, located at Abu Tubul, is one of the most important projects of OQ Group in the upstream sector.
Iran raised to 4th place among top OPEC producers in December by the IEA
The International Energy Agency (IEA) in its latest “Oil Market Report” put Iran’s oil production in December at 2.72 million barrels per day, indicating that the country has risen to the fourth place among OPEC’s top oil producers. Iran’s oil exports have reached new highs in the last two months of 2022 and are making a strong start to 2023 despite U.S. sanctions. Iran has been ramping up its oil production and exports over the past year as the country has been implementing new strategies to overcome U.S. sanctions.
UAE plans to reach 14GW of renewable energy by 2030
The UAE plans to reach 14 gigawatts (GW) of clean energy by 2030, while continuing to supply oil and gas. Climate Minister Mariam Almheiri also claims that by 2050, 50% of the UAE’s energy supply will come from clean and renewable energy sources.
TotalEnergies starts production from Oman onshore gas field
French firm TotalEnergies and its partners have started gas production from the Mabrouk North-East field in onshore Block 10 in Oman. TotalEnergies also signed a long-term LNG purchase contract with Oman LNG, whereby the French firm will purchase 0.8 million metric tonnes of LNG per year. TotalEnergies has said that the contract, which has a term of ten years starting from 2025, would contribute to its LNG integrated portfolio and help in addressing the European and Asian markets.
Oman energy firm OQ to sell 49% stake in oil-drilling unit IPO
Oman energy firm, OQ SAOC, plans to sell up to 49% of its oil drilling unit, Abraj Energy Services SAOC, in an initial public offering, kick-starting the sultanate’s push to join a listings boom sweeping through the Middle East. The Oman Investment Authority has said that it plans to raise more than $1.3 billion by exiting its investments in eight sectors this year. Oman is joining its energy-rich Gulf neighbors in selling assets to fund the diversification of their economies and open up their stock markets to more international investors.
Iran Oil Exports To China Surge
The Persian Gulf country’s oil exports climbed to about 1.3 million barrels a day in November, and last month held near the highest in four years. Much of it appears to be going to China, and the surge is offering solace to both Tehran and a global market fretting over the prospect of sanctions squeezing Russian supply.
Qatar Development Bank launches ‘green financing’ for environment-friendly projects
Qatar Development Bank launched the Clean Energy and Eco-Friendly Financing programme, also known as Green Financing for Qatar-based Small and Medium Enterprises. The Green Financing programme will finance 85% of the cost for businesses adding technological solutions or environment-friendly operations and 80% of the cost for companies producing green products with a positive and sustainable environmental impact. The program is considered to be part of the bank’s strategy to support environmentally friendly projects in line with the country’s national vision for building a sustainable knowledge-based economy.
ACWA Power plans to develop Uzkebistan’s first hydrogen project
ACWA Power has signed extensive heads of terms agreements to develop a green hydrogen facility and a green ammonia pilot project in the Republic of Uzbekistan with the country’s Ministry of Energy and Uzkimyosanoat, a state-owned chemical company. Aside from these green hydrogen and green ammonia projects, ACWA Power also has five existing projects in Uzbekistan, and Uzbekistan is the second largest in terms of value for the company after its home market of Saudi Arabia.
Saudi Arabia will continue talks with Russia to stabilize oil prices
According to the kingdom’s foreign minister, Saudi Arabia is set to continue talks with Russia over determining avenues to stabilize prices for crude oil. Due to western sanctions placed on Russia over its military operation in Ukraine, Liquified Natural Gas prices have vastly increased as the EU has deviated from Moscow as a primary oil supplier in search of new ones.
IEA chief expects tighter energy markets in 2023
International Energy Agency (IEA) head Fatih Birol states that energy markets could be tighter in 2023, adding that he hopes prices would not rise further in order to ease the pressure on energy-importing developing countries. Birol elaborates that even though currently there was no tightness in the market, there were uncertainties to watch out for, namely Chinese demand and Russian supply. Two Gulf OPEC+ producers, UAE energy minister Suhail al-Mazrouei and Saudi Aramco chief Amin Nasser have said that they see oil markets as balanced.
Saudi Aramco increases access to North America’s largest oil refinery as it launches new US subsidiary
Saudi Aramco’s global trading arm has bought US firm Motiva Trading and has also launched a Texas-based subsidiary – Aramco Trading Americas. The new entity will be the sole supplier and ‘offtaker’ of Motiva Enterprises, the owner of North America’s largest oil refinery with a crude capacity of 630,000 barrels a day of consumer and commercial grade fuels and base oils.
Germany Holds Talks with Iraq for Potential Gas Imports to Help Wean Off Russian Energy
According to German Chancellor Olaf Scholz, Germany is engaging in bilateral talks with Iraq over potential gas imports to help Berlin diversify its energy sources. The latest meeting between the German chancellor and the Iraqi government is among the recent bilateral talks between Berlin and other countries, including the US, UAE, and Qatar, to secure alternative gas supplies following Moscow’s invasion of Ukraine.
Oman LNG signs deals with TotalEnergies and Thailand’s PTT
Oman LNG has agreed to supply up to 1.6 million metric tonnes of liquefied natural gas to France’s TotalEnergies and Thai state-owned firm PTT Pcl. TotalEnergies and PTT will each receive 800,000 tonnes of LNG per year, with the French firm commencing a 10-year deal in 2025 and the Thai company taking supply for nine years beginning in 2026.
Masdar partners with SOCAR to develop 4 GW renewable energy projects
Masdar has signed joint development agreements with the State Oil Company of the Republic of Azerbaijan (SOCAR) for onshore wind and solar projects, and integrated offshore wind and green hydrogen projects, with a total combined capacity of 4 GW. The agreements were signed on the sidelines of Abu Dhabi Sustainability Week, the global platform for accelerating sustainable development hosted by Masdar. Azerbaijan is pursuing a national target of producing 30% of its domestic power needs from renewable energy sources by 2030, as the nation looks to diversify its economy and reduce greenhouse gas emissions.
Zambia to develop solar projects worth $2 billion with UAE as country faces rolling blackouts
Zambia’s state-owned power company Zesco signed an agreement with the United Arab Emirates’ renewable energy company Masdar to develop solar projects worth $2 billion. Once completed, the projects will result in an additional 2,000 megawatts of electricity in the country within the next few years. The project will increase the country’s generation base by more than half.
India eyes UAE’s cooperation in developing green hydrogen industry
India’s Power, New & Renewable Energy Minister R.K. Singh visited the UAE and signed a memorandum on green hydrogen development and investment with his Emirati counterpart, Energy and Infrastructure Minister Suhail Al-Mazrouei. The agreement with the UAE is seen as a step forward in implementing India’s plan to reduce India’s dependence on fossil fuels and cut import costs by 1 trillion rupees.
Oil Industry Workers Stage New Round Of Strikes In Iran
Amid natural gas shortage in Iran due to the government inability to invest in production, a new wave of strikes by oil and gas industry workers has kicked off in the country with gatherings in Ahvaz, Asaluyeh, Dehloran, Shiraz, Ilam, Bandar Lengeh and Aghajari in the south and southwest of Iran. These strikes are at a time when people are also protesting the incompetence of the government to supply natural gas to households in some regions.
Qatar expects natural gas markets will remain volatile for years
According to the energy minister of Qatar, natural gas markets could whipsaw for the next several years because there’s still too little supply to meet rising demand. Qatar, which vies with the US as the world’s top exporter of LNG, is investing around $45 billion to increase its production by almost 60%, but the project will not finish until 2027.
Oman’s Asyad Shipping inks pact for two new LNG carriers
Asyad Shipping, a subsidiary of Asyad Group, signed an agreement with Hyundai Samho Heavy Industries to build two modern LNG carriers dedicated to meeting the growing demand for energy logistics services in anticipation of an uptick in the global demand for gas transportation. These advanced tankers will join the Asyad fleet, which includes various types of tankers and ships, including oil and gas VLCCs, bulk carriers and container ships.
Iranian Oil Exports End 2022 At a High, Despite No Nuclear Deal
Despite U.S. sanctions, Iranian oil exports hit new highs in the last two months of 2022 and are making a strong start to 2023 on higher shipments to China and Venezuela. To evade sanctions, most of Iran’s crude exports to China, their biggest customer, are rebranded as crude from other countries.
Kuwaiti Oil Exports Record 25% Rise To Independent Chinese Refineries
Standard & Poor’s Global Commodity Agency reported that the imports of independent Chinese refineries from Kuwait increased by 25.2% in 2022 compared to 2021, noting that Kuwait exported more than 5.5 million tons/meter in the previous year, compared to more than 4.4 million tons/meter in 2021. Kuwait’s exports to independent Chinese refineries last year ranked seventh, after Malaysia, Russia, Saudi Arabia, the UAE, Iraq and Oman.
U.S., UAE Say $20 Billion Investment To Fund 15 GW In New Clean Energy
The United States and United Arab Emirates announced that the first $20 billion of their $100 billion clean energy partnership would be allocated to fund 15 new gigawatts of renewable energy projects before 2035. The investments would be led by UAE’s Masdar and a consortium of US private investors, and financed through $7 billion in private sector cash equity and $13 billion in US debt financing and other instruments.
UAE Launched 11 Environmentally Friendly Energy Projects Worth $43.2 bln In 2022
The United Arab Emirates launched 11 environmentally friendly energy projects worth AED 159 billion ($43.2 billion) in 2022. The energy minister has also highlighted the launch of the UAE Energy Strategy 2050 – the country’s first unified energy strategy – which aims to integrate the renewable and clean energy mix to achieve a balance between economic needs and climate goals, in addition to reducing dependency on other fuel sources over the next three decades.
UAE’s Dana Gas Says Explosive Device Was Detonated In Iraqi Khor Mor Gas Field
UAE-based Dana Gas said that an explosive device was dropped and detonated within its Khor Mor Block in the Kurdistan Region of Iraq last week. The energy firm said the detonations on Friday morning caused no injuries to people or damage to facilities, and production operations continue at the Khor Mor Gas plant as normal without interruption.
Iraq Parliament Speaker: Basra-Aqaba Oil Pipeline To Be Executed Soon
Iraq’s parliament Speaker Mohammad Al-Halbousi has said that the Iraqi government will start implementing the Basra-Aqaba oil pipeline project soon. He indicated that high financial cost was the most important obstacle the Iraqi government dealt with by preparing a new low-cost study, and that all costs will be paid by Iraq because it is an Iraqi project aiming to increase its oil exports and financial revenues.
UAE Energy Minister: OPEC+ Faces Oil Market Volatility In Both Supply And Demand
UAE energy minister Suhail al-Mazrouei told Asharq TV that OPEC+ is facing “volatile prospects” in oil markets both in supply and demand. He said this was due to European sanctions on Russian crude taking effect in addition to China lifting its “zero-COVID” policy, and that the UAE is taking preemptive steps to compensate for the reduced oil production capacity in some countries by bringing forward its five million barrel per day oil production capacity expansion to 2027 from a previous target of 2030.
UAE And UK Sign Agreement To Enhance Clean Energy Co-operation
The UAE and UK have signed an agreement that will enable sharing of technical knowledge in clean energy, including low-carbon hydrogen and nuclear energy. The agreement was signed by Sharif Al Olama, undersecretary of the Ministry of Energy and Infrastructure for Energy and Petroleum Affairs, and UK Business Secretary Grant Shapps. The agreement will enhance strategic and technical co-operation between the nations in the energy sector and develop renewable energy technology, including regulatory frameworks and incentives.
Qatar Takes FID On Huge Petrochemicals Complex
QatarEnergy announced that it has taken a final investment decision on its $6bn Ras Laffan Petrochemicals Project alongside partner Chevron Phillips (30%). The facility is being developed at the Ras Laffan industrial city in northern Qatar and is due to begin production in late 2026. The complex is centered on a 2.08mn t/y ethane cracker, which, once operational, will be the largest such facility in the Middle East.
Masdar Signs Agreement to Explore Exporting Green Hydrogen from Abu Dhabi to Europe
Masdar, Port of Amsterdam, SkyNRG, Evos Amsterdam and Zenith Energy have signed a memorandum of understanding to explore the development of a green hydrogen supply chain between Abu Dhabi and Amsterdam to support Dutch and European markets.The exported green hydrogen will be delivered to key European sectors – sustainable aviation fuel, steelmaking, and bunkering for shipping – and will also be supplied to new, emerging European offtakers, via pipeline, truck and barge.
Saudi Arabia’s Petromin Revives $1 Billion IPO Plan
Saudi Arabian automotive services firm Petromin is reviving plans for its initial public offering in the kingdom that could raise as much as $1 billion. The company, which is also the Middle East’s oldest lubricants firm, is working with Saudi National Bank and Moelis & Co. on the planned offering.
Gulf Markets Subdued Ahead Of U.S. Inflation Data; SNB Lifts Saudi
Most major Gulf stock markets were subdued on Thursday as sentiment across markets remained frail ahead of upcoming inflation data from the United States. Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, exposing them to direct impacts from any Fed monetary tightening.
Bahrain’s Alba Awards Over 6MW Solar Farm Project To Saudi Firm
Aluminium Bahrain (Alba), one of the world’s largest aluminum smelters, has awarded its solar farm project to Advanced United Systems, to install solar photovoltaic panels over 37,000 sq m with a capacity of more than 6 megawatts. Advanced United Systems is a Saudi company and part of the Taj Holding Group that specializes in smart grid solutions, energy, and renewable energy services. The project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
UAE Names Oil Company Chief To Lead UN’s COP 28 Climate Talks
Emirati authorities on Thursday nominated Sultan al-Jaber, a confidant of UAE President Sheikh Mohammed bin Zayed Al Nahyan and also serves as CEO of the Abu Dhabi National Oil Co., to preside over the upcoming United Nations climate negotiations in Dubai. Al-Jaber’s firm pumps some 4 million barrels of crude a day and hopes to expand to 5 million daily, but the Emirates’ state-run WAM news agency has noted al-Jaber’s years also serving as a climate envoy.
Alba To Start Installing Solar PV Panels Over 37,000 m2
Aluminium Bahrain B.S.C. (Alba), one of the world’s largest Aluminum smelters, announced that it has awarded its Solar Farm Project towards Advanced United Systems to install Solar Photovoltaic Panels over 37,000 m2 with a capacity of more than 6 Megawatts. The Solar Farm Project will generate in the range of 10,539 MWHr per year and approximately 7,591,760 kilograms of carbon emissions would be reduced per year – corresponding to a total reduction of 189,794,000 kilograms of carbon emissions over a 25-year span.
Shell Oman Signs Agreements For Syngas And LNG Offtake; Takes Stake In Green Hydrogen Project
Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore the deployment of Liquified Synthetic Gas in Oman. In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman, the consortium that is developing the country’s largest renewable green hydrogen project. In a third agreement, Shell Oman has signed a term sheet with Oman LNG for the purchase of 0.8 million metric tonnes per year of liquefied natural gas for a period of 10 years, starting from 2025.
Russia’s Putin and Iran’s Raisi Discuss Energy And Transport In Telephone Call
Russian President Vladimir Putin discussed energy and transport projects with Iran’s President Ebrahim Raisi in a telephone call. The Kremlin has said that “The presidents spoke in favor of the consistent implementation of mutually beneficial projects in the energy, transport and logistics sectors.” Moscow and Tehran have moved to forge closer relations after Russia sent tens of thousands of troops into Ukraine last February, prompting sweeping Western sanctions. Russia and Iran, which are also under Western sanctions, are among the world’s largest oil exporters.
Gulf Markets Slightly Weaker As Oil Prices Slip
Gulf stock markets opened slightly in the red on Tuesday as oil prices fell. Oil prices, a key catalyst for the Gulf’s financial markets, edged lower on expectations that further interest rate hikes in the United States, the world’s biggest oil consumer, will slow economic growth and limit fuel demand.
UAE’s Masdar To Develop Renewable Energy Projects In Kyrgyzstan
Abu Dhabi renewable energy firm Masdar has signed an agreement with Kyrgyzstan’s energy ministry to develop clean energy projects with a capacity to generate 1 gigawatt. The pipeline of projects will start with a 200 megawatt solar photovoltaic plant scheduled to begin operations by 2026. Kyrgyzstan is looking to reduce its greenhouse gas emissions by 44% by 2030 and achieve carbon neutrality by 2050.
Qatar Moves Ahead With $6 billion Ras Laffan Petrochemicals Project
QatarEnergy announced the final investment decision with Chevron Phillips Chemical Co. to build the 2.1 million mt/year ethylene project in Ras Laffan for $6 billion, marking the company’s largest investment in petrochemicals in Qatar. Both sides agreed to establish a joint venture for the Ras Laffan petrochemicals project that will be 70% owned by QatarEnergy and 30% by Chevron Phillips. The go-ahead is the latest in a raft of projects planned by state-owned oil and natural gas companies in petrochemicals in the region as they seek to broaden the scope of their business.
Kahramaa To Set Up 150 Electric Charging Stations In 2023
While continuing its sustainability practices and efforts to reduce carbon emission, the Qatar General Electricity and Water Corporation (Kahramaa), represented by the National Programme for Conservation and Energy Efficiency (Tarsheed), will set up 150 electric vehicle (EV) charging stations across the country in 2023. Engineer Mohamed Khalid al-Sharshani, head of the technical section at Tarsheed, has said that they are “looking to expand the network to 600 to 1,000 fast charging stations by 2025.”
Kuwait Expected To Award Substations Contract In Q1 2023
Kuwait’s Ministry of Electricity, Water and Renewable Energy (MEW) is expected to award the engineering, procurement and construction (EPC) contract for four main substations – Rumaithiya C, Salmiya X, Egaila Entertainment Projects G and Salwa E – by the first quarter of 2023. The estimated total project value is at $70 million.
Kuwait To Export Five Times As Much Diesel To Europe In 2023
Kuwait will send to Europe five times its usual shipments of diesel, around 2.5 million tonnes, this year as an anticipated ban of oil products from Russia takes effect. The EU is expected to ban Russian imports on February 5 as part of ongoing sanctions on Russia for its invasion of neighboring Ukraine.
Iran’s LPG Exports Increase 86%
The value of Iran’s liquefied petroleum gas (LPG) export rose 86 percent from the beginning of the current Iranian calendar year (March 21, 2022) up to December 31, as compared to the same period of time in the past year. Iran exported $6.783 billion worth of LPG in the mentioned period to register a new record in the country’s gas exports.
Iraq Approves $3bln Power Plant
OPEC member Iraq has approved the construction of a new power plant at a cost of around $3 billion. The project will be in the Southern Dhi Qar Governorate with a generation capacity of 3,000 megawatts. The project will boost Dhi Qar’s electricity output from 850 MW to 3,950 MW and will “provide a final solution to the Governorate’s power crisis.”
JERA Signs Agreement With Oman LNG Project
JERA Co., Inc. has signed a key term sheet for the sale and purchase of LNG with Oman Liquefied Natural Gas LLC (Oman LNG). JERA will purchase up to 12 cargoes (approximately 0.8 million t) per year of LNG produced from the Oman LNG project from 2025 for 10 years. LNG procurement competition has been intensifying, and stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is thus needed to secure a stable supply of energy in Japan.
ADNOC Allocates $15 Billion To Low-Carbon Projects
ADNOC announced today an investment of $15 billion in projects by 2030 that will help the state-owned energy company accelerate its low-carbon growth strategy. These projects will include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new measures to build on ADNOC’s long-standing policy of zero routine gas flaring. Together with the recent formation of the ADNOC’s new Low Carbon Solutions and International Growth Directorate, these represent tangible and concrete action as the company reduces its carbon intensity by 25% by 2030 and moves towards its Net Zero by 2050 ambition.
Saudi Arabia Cuts Oil Prices For Main Market As Demand Slows
Saudi Arabia cut oil prices for Asia, signaling that demand in its main market remains sluggish, as economies slow and coronavirus cases in China surge. Saudi Arabia sells most of its oil under long-term contracts to Asia, pricing for which is reviewed each month, with China, Japan, South Korea and India being the biggest buyers.
OPEC Oil Output Rises Despite Production Target Cuts
OPEC oil output rose in December despite an agreement by the wider OPEC+ alliance to cut production targets to support the market. The rise was led by recovering output in Nigeria, which has been battling with crude theft and insecurity in its oil-producing region. This output has weakened compliance with the 2 million bpd cut to OPEC+ output target announced in November 2022.
Abu Dhabi Sustainability Week Hosts First Green Hydrogen Summit in Year of Climate Action for UAE
Abu Dhabi Sustainability Week (ADSW) will hold its first annual Green Hydrogen Summit on January 18th, 2023, highlighting green hydrogen’s growing importance in the global drive toward net zero. The inaugural Green Hydrogen Summit at ADSW will cover topics including, developments in hydrogen production, conversion, transport, storage, and use. It will also include high-level discussions focused on the development of the UAE hydrogen economy, the role of government and regulation, and panel sessions on a broad range of topics including innovation, sustainable finance, green energy in Africa, and hydrogen’s value chain.
Iraq Oil Revenues In 2022 Exceed $115 Billion
Iraq’s oil revenues in 2022 exceeded $115 billion- a four-year high following a collapse in prices during the coronavirus pandemic. The country exported more than 1.2 billion barrels in 2022, averaging 3.3 million barrels per day.
Oman’s Production Of Crude Oil, Condensates Surges 10%
Oman’s production of crude oil and condensates recorded a rise by 10% till the end of November 2022, standing at 355.473 million barrels, an increase from the previous year’s 323.174 million barrels. The average price of Oman’s crude oil surged by 52.7% till the end of November 2022 at USD 95.8 per barrel compared to $62.77 per barrel by the end of November 2021.
Clean Energy Reaches 14% Of Dubai’s Total Power Production Capacity
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA), has announced that the production capacity of clean energy in Dubai has reached 2,027 megawatts (MW) using photovoltaic solar power (PV) and concentrated solar power (CSP). This is about 14 percent of Dubai’s total power production capacity of 14,517 MW. He made the announcement during his visit to the Mohammed bin Rashid Al Maktoum Solar Park, which DEWA is implementing. This is the largest single-site solar park in the world using the Independent Power Producer (IPP) model and will have a production capacity of 5,000 MW by 2030, using photovoltaic solar panels and CSP technologies.
Iran’s First Coal-Fired Power Station Plan on Track
The construction of the first phase of Iran’s first coal-fired power plant in Tabas, South Khorasan Province, is 35% complete. The Tabas power station is expected to not contribute to air pollution as it will be equipped with advanced pollution-reduction systems. The Energy Ministry plans to build coal-fired power stations capable of producing 5,000 megawatts of power over the next two decades as Iran moves forward in its plan to diversify its sources of energy.
New Law In Saudi To Enhance Energy Efficiency, Promote Low-Carbon Circular Economy
Approved by the Saudi Council of Ministers, the new Energy Supplies Law aims to privatize the energy sector, including electricity supply, oil refineries, petrochemicals, water desalination, mining, agriculture, construction and related sectors. The law stipulates the formation of a committee, with representatives of 15 bodies, to study executive regulations and approve privatization criteria. The law is also expected to have several advantages that contribute to improving the efficiency of energy supply and promote a low-carbon circular economy.
Oman To Set Up Integrated Company To Manage Natural Gas Assets
Oman plans to establish an integrated gas company to manage all natural gas assets, including exports and imports of the commodity and its derivative products. The new company by Oman’s Finance Ministry is aimed at improving the country’s economic indicators by excluding gas purchase and transport costs from the general state budget. The move will “upgrade” the efficiency of the sector by recognising the net revenue from gas sales.
Kuwait’s Oil Corporate Investment Put At $2.43bln
Kuwait’s state oil operator and its subsidiaries control stake in 13 local and foreign companies with a total value of around 738.5 million Kuwaiti dinars ($2.43 billion). The Kuwait Petroleum Corporation (KPC), which manages the OPEC producer’s massive hydrocarbon industry, and its affiliates own shares in two major South Korean groups and a number of firms in Kuwait, Asia and Europe.
558,340 kwh Of Clean Energy Produced From Waste Generated During World Cup
As much as 558,340 kwh of clean energy was produced from the waste generated throughout the FIFA World Cup Qatar 2022. While 72% of the waste from the event was recycled, the rest was used to produce clean energy in cooperation with the Supreme Committee of Delivery and Legacy (SC) and the private sector.
Oman, Japan Sign MoUs In Energy Field
Oman and Japan signed a memorandum of understanding (MoU) in the field of hydrogen, fuel ammonia and carbon recycling. The two countries also signed a third extension for a MoU in the field of crude oil, natural gas and clean energy. The first MoU aims to accelerate the Oman-Japan energy and resources cooperation and acknowledge the continued role and contribution of Oman to Japan’s energy security. The second MoU was first signed on January 9, 2014 in confirmation of the two sides’ mutual intention and desire to promote and develop cooperation in the field of crude oil, natural gas and clean energy development on the basis of reciprocal benefits.
The GCC’s First Hydroelectric Power Plant Reaches 58% Completion
Dubai Electricity and Water Authority (DEWA)’s pumped-storage hydroelectric power plant site in Hatta is 58.5% complete. The station is the first of its kind in the GCC, has investments up to AED 1.42 billion, and is expected to be completed in 2024. The power plant is part of DEWA’s efforts to achieve the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050.
Saudi Arabia’s ACWA Power Signs $2.4bn Wind Energy PPA With Uzbekistan
Saudi Arabia’s ACWA Power has signed a power purchase agreement with the National Electric Grid of Uzbekistan to build three wind power plants in the north-western Karakalpakstan region of Uzbekistan. The agreement is valued at $2.4 billion and is expected to offset 2.4 million tons of carbon emissions per year and power 1.65 million homes.
Saudi Arabia and Japan Sign Investment Agreements In The Petrochemicals And Automotive Sectors Among Others During Bilateral Forum
Saudi Arabia and Japan on Monday signed 15 strategic investment agreements spread across various industries during the Saudi Japan Investment Forum held in Riyadh. During the forum Saudi Minister of Investment Khalid Al-Falih said the two countries have bolstered their relationship as the Kingdom targets $3.3 trillion worth of investments with Japan by 2030. The Kingdom aims to become the world’s leading energy nation as the two countries intend to cooperate for a smoother energy transition.
Saudi Arabia, Japan Sign Agreements On Circular Carbon Economy, Clean Hydrogen, Fuel Ammonia
Saudi Arabia and Japan signed a memorandum of cooperation (MoC) on Sunday in the fields of the circular carbon economy, carbon recycling, clean hydrogen and fuel ammonia. Under the two memoranda of cooperation, the two countries will accelerate the use of hydrogen in transport, promote research and development of hydrogen and fuel ammonia technologies and their use at the local, bilateral, regional and international levels.
Yemen And Masdar Signs Agreement To Build 120 MW Solar Power Plant In Aden
Yemen’s Ministry of Electricity and Energy signed an agreement with Abu Dhabi Future Energy Company, Masdar, to provide the interim capital, Aden, with a solar power plant with a total capacity of 120 megawatts.
Germany’s Uniper And Masdar To Build Green Hydrogen Plant In UAE
Masdar’s executive director for clean energy, Mohammad Abdelqadar El Ramahi, said in an interview that Germany’s Uniper SE is teaming up with Masdar, one of the Middle East’s biggest renewable-energy firms, to make green hydrogen in the United Arab Emirates. The two companies will build a plant that will run on almost 1.3 gigawatts of solar power and is expected to produce hydrogen from 2026. Uniper’s shareholders agreed to a €33 billion ($35 billion) rescue this week that will lead to the utility’s nationalization and avoid its collapse following a surge in natural-gas prices in the wake of Russia’s invasion of Ukraine. The German government expects Uniper to strengthen its climate targets in the coming years.
QatarEnergy Signs Agreement With QPD To Continue Al-Karkara And A-Structures Offshore Fields Development, production
QatarEnergy and Japan’s Qatar Petroleum Development Company (QPD) signed a new agreement for the continued development and production of the Al-Karkara and A-Structures oil fields, located in the territorial waters of Qatar. The new five-year agreement, which commences on December 23 succeeds the development and production sharing agreement signed in December 1997. Under the new agreement, QPD will continue to act as the operator of the oil fields. The fields started production in March 2006, and since then have produced a total of 33.5mn barrels of crude oil.
Opec+ To Remain ‘Proactive’ Amid Oil Market Uncertainty, Saudi Energy Minister Says
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in an interview with official news agency SPA that OPEC+ will remain “proactive” as global oil markets face uncertainty, “In face of a wide range of uncertainties, OPEC+ has no choice but to remain proactive and preemptive, and this is not an easy task, especially that the market has the tendency to overreact to news in both directions.”
TotalEnergies Raises The Bar With Its Renewable Ambition In Saudi Arabia
On December 19, Frence’s TotalEnergies announced the commencement of Saudi Total Petroleum Products Co.’s solar project of installing a rooftop system on its lubricants blending plant, located at King Abdullah Economic City’s Industrial Valley. The solar system will be implemented by a joint venture named Saudi French for Energy Efficiency and Renewables, established in 2021 by the Jeddah-headquartered Zahid Group and French energy company TotalEnergies. In line with the renewable energy goals of Vision 2030, TotalEnergies is aiming to be a world-class player in the energy transition by becoming a multi-energy company.
OPEC Fund Approves Over $500m In New Global Development Support
On December 20, OPEC Fund for International Development (OFID) has approved more than $500m in new financing at the most recent meeting of its governing board and in the final quarter of 2022. The 15 new projects approved reflect OPEC Fund’s launch of a $1bn food security action plan and the adoption of its first dedicated climate action plan. The OPEC Fund Governing Board approved projects in the following countries: Niger, Bangladesh, Uzbekistan, Tanzania, Benin, Liberia, Cote d’Ivoire, Kyrgyzstan, Madagascar, Mauritania, Botswana.
SABIC, Aramco, Sinopec To Assess Viability Of Developing Petrochemical Complex
Saudi Basic Industries Corp. has signed a memorandum of understanding with energy giant Saudi Aramco and China Petroleum & Chemical Corp., known as Sinopec, to assess the economic and technical feasibility of developing an integrated petrochemical complex with an existing refinery in Yanbu. Apart from the deal with SABIC, Sinopec, in December, also signed a framework agreement with Saudi Aramco to build a Phase II 16 million-ton-a-year refining project and 1.5 million-ton-year ethylene units in Gulei, Fujian. Aramco said the announcements support its role as a reliable energy supplier to China as the company seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.
Iran Says Enriched Uranium Capacity Hits Record
Iran said Saturday its uranium enrichment capacity has increased to record levels, a day before United Nations nuclear monitors are set to visit the country. Mohammad Eslami, head of the Atomic Energy Organization of Iran said, “Currently, the enrichment capacity of the country has reached more than twice the entire history of this industry,” The International Atomic Energy Agency will send a technical team to try to resolve a deadlock over the detection of traces of radioactive material at sites not declared as having hosted nuclear activities. The issue has hindered efforts to revive a 2015 nuclear deal between Iran and major powers.
Aramco, TotalEnergies Invest $11 Billion In New Oil Complex In Saudi Arabia
Aramco and TotalEnergies are joining forces and investing $11 billion to build a new petrochemicals complex in Saudi Arabia. Aramco is funding 62.5% of the project whilst TotalEnergies is funding the other 37.5%. The complex will be operated by both companies and will be integrated into the Saudi Arabia Total Refining and Petrochemicals (SATORP) and will be located in Jubail. This venture will open up 7,000 new jobs in Saudi Arabia and comes in light of the Russia-Ukraine war which has provided Saudi Arabia with the opportunity to “strengthen its position in the oil sector”. The kingdom has also been investing in other places, such as South Korea.
Aramco Partners With US Software Company For Carbon Capture Tech
Aramco has partnered with US-based Aspen Technology to introduce practical and economic solutions for carbon capture and utilization (CCU). The technology was developed as a part of a collaboration between Aramco and Korea Advanced Institute of Science & Technology (KAIST). By considering economics, process design and operations constraints and CO2 reduction, the technology aims to address the identification of the best CCU paths.
Hungary To Start Talks With Qatar About Buying LNG -Foreign Minister
Hungary and Qatar agreed that Hungary’s energy group, MVM, and Qatar’s QatarEnergy will begin talks about the latter supplying Hungary with liquefied natural gas (LNG) within the next three years. Qatar is currently one of the world’s top LNG exporters and several European states have already been in talks with Qatar in an effort to reduce their reliance on Russian energy supplies. This agreement would also require the European Union to expand the capacity of the continent’s Southern LNG terminals.
Saudi’s PIF Acquires Up To 9.5% Stake In Skyborn Renewables
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF) has announced the acquisition of up to 9.5% of Skyborn Renewables, alongside Global Infrastructure Partners. Skyborn is an offshore wind developer and operator that has projects in Germany, France, and Taiwan. Through this acquisition, PIF is involved in the acceleration of energy transition and clean energy at an international scale. PIF has also been investing in the low carbon sector in an effort to develop 70% of the kingdom’s renewable energy by 2030. It comes in light of the fund investing in other renewable energy companies such as ACWA and Sudair and Al Shuaibah Solar Energy Projects.
UAE To Open Facility That Converts Waste To Green Hydrogen
Sharjah-based sustainability group, BEEAH, signed an agreement to build the United Arab Emirates’ first waste-to-hydrogen power plant. The memorandum of understanding was signed between BEEAH, Air Water (a Japanese gas conglomerate), and Chinook Sciences (a British waste-to-fuel technology firm). The goal is to create a facility that will convert waste wood and plastic to hydrogen which will then be used for fuel. This agreement is reflective of UAE’s policy of moving towards green technology, away from oil and gas.
Saudi Arabia Will Host The Middle East’s Largest Solar Facility
Saudi Arabia’s Water and Electricity Holding Company (Badeel), a subsidiary of the Public Investment Fund (PIF), and ACWA Power have signed power purchase agreements to develop the largest solar energy plant in the Middle East. The 2,060 MW plant is to be built in Al Shuaibah and is expected to be operational by 2025. The electricity generated from this solar energy plant will be sold to the Saudi Power Procurement Company and is expected to power 350,000 homes. Yazeed A. Al-Humied, head of MENA Investments at PIF, said in a statement, “This marks a key achievement toward PIF’s commitment to develop 70% of Saudi Arabia’s renewable energy by 2030.”
Aramco ‘In Talks’ With Investors On $110bn Jafurah Gas Project
Aramco has begun talks with investors for the new Jufarah gas development project to fund the midstream and downstream projects there. The Jufarah gas project is an ambitious attempt by Saudi Arabia to diversify their energy exports. Aramco has reached out to large funds and private equity firms that would be able to offer stakes in projects such as carbon capture and storage. The company will use the gas produced in the Jufarah gas field to create blue hydrogen that will be exported as a clean energy source. The war in Ukraine has led to European countries looking to the Gulf for oil and gas supplies, causing the Gulf states to embark on ambitious projects to expand their oil and gas output, such as this one.
Aramco, Shandong Energy to collaborate on projects in China; cooperation across H2, renewables and carbon capture technologies
Aramco and Shandong Energy signed a Memorandum of Understanding (MoU) regarding petrochemical and refining opportunities in China. The memorandum consisted of a potential crude oil supply and chemicals product offtake agreement. Their collaboration also extends to future cooperation in the sectors of hydrogen, renewable energy, and carbon capture technologies. The MoU comes in the context of the summit of Gulf Arab leaders in Riyadh where Chinese President Xi Jinping said that China would buy oil and gas in yuan, which is seen as an attempt to weaken the hold of the US dollar on world trade. This agreement is also in the context of various other energy-related deals signed between the two countries.
Aramco Gulf Operations, Kuwait’s KGOC Agree To Develop Durra Gas Field, Saudi News Agency Reports
It was reported that Saudi Aramco Gulf Operations Company signed a Memorandum of Understanding on Sunday with Kuwait Gulf Oil Company (KGOC) to develop the joint Durra gas field. Its result is supposed to be producing 1 billion cubic feet of gas and 84,000 barrels of liquefied gas per day.
Saudi ACWA Power Signs Deals With 9 Chinese Entities On Clean Energy, Renewables
Saudi Arabia’s ACWA Power signed agreements with 9 Chinese entities on matters related to clean energy and renewables. These agreements will lay the foundation for the “financing, investment and construction” of ACWA Power’s clean and renewable energy projects. The memorandums of understanding were signed during the 1st China Arab Summit and it comes in light of Saudi Arabia and China signing deals in several sectors including green energy and information technology amongst others. The Chairman of ACWA Power said, “we are in a unique position to support both the energy transition and economic transformation envisioned by Saudi Arabia’s forward-looking and iconic Vision 2030, as well as China’s Belt and Road initiative.”
Gulf Producers Lead On OPEC+ Cuts, Saudi Crude Output At 6-month Low: Platts Survey
The OPEC+ oil producer alliance decreased their output by 700,000 barrels per day in November; this was a move conducted by 14 out of the 22 countries in the coalition and was the steepest decrease since April of this year. Additionally, the Saudi Energy Minister argued that the major oil producers were dedicated to maintaining the current quotas. Whilst countries like Iraq and the UAE cut their oil output, there was an increase in oil production in places like Kazakhstan, Nigeria and Russia. The goal for 2023 is therefore to make sure that the OPEC+ Alliance keeps the quotas steady.
Oman Minister Says Oil Producers Are Uneasy Over Russia Price Cap
Oman’s energy minister has said that there is a great amount of unease amongst oil-reliant economies over the cap that the Group of Seven put on the price of Russian barrels. There has been a price ceiling placed on Moscow’s oil exports. This is significant because the restrictions will lead to overall less investment in global oil production. OPEC+ have also agreed to keep production steady at 2 million barrels a day.
Saudi and Chinese Companies Sign 34 Investment Agreements
Saudi and Chinese companies signed 34 investment agreements that covered several sectors in the field of energy, including “green energy, green hydrogen, photovoltaic energy, information technology, cloud services, transportation, logistics, medical industries, housing and construction factories.” These agreements were signed during China’s President Xi Jinping’s visit to Saudi Arabia. The Saudi Minister of Khalid bin Abdulaziz Al-Falih said that this agreement is a reflection of the two countries’ “keenness” to develop and strengthen existing relations in all fields. This investment agreement also comes in light of Saudi’s Vision 2030 which aims to offer investment opportunities in many different sectors including those of energy.
Oil Prices Fall To Lowest Since January Despite Saudi-backed Production Cut
Oil prices have fallen to a yearly low despite Saudi Arabia’s efforts to cut oil production. The OPEC+ alliance met on December 4th and agreed to keep oil production to 2 million barrels per day. Despite the decrease in oil production, which should in theory lead to increased oil prices, there was a fall in oil prices. Simon Henderson of the Washington Institute for Near East Policy said that this was “related to the global economy” and that it could reflect “market anxieties about the prospect of a recession.” However analysts argue that it is not going to cause a collapse in oil prices as it did in 2020 when there was a price war between Russia and Saudi Arabia which led to massive oil price drops.
Abu Dhabi’s ADNOC, TAQA And Mubadala Complete Deal To Acquire Masdar Stakes
Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) have completed a deal with Masdar where they will become shareholders in the Abu Dhabi-based clean energy company. This will result in Masdar’s growth as it will expand and cover “renewable power, green hydrogen and other enabling clean energy technologies, a statement said.” It is an effort to help the UAE reach its Net Zero by 2050 strategic initiative and to meet the world’s demand for clean energy. With this partnership, Masdar’s target for renewable energy capacity is 100GW and it aims to increase production of green energy to one million tons by 2030.
Saudi Arabia Expects Narrower 2023 Surplus as Uncertainty Clouds Oil Outlook
Saudi Arabia is expected to have a budget surplus in 2023 but it is 84% lower than that of this year due to “uncertain global economic outlook and lower crude prices.” The budget of 2023 will be 1.114 trillion-riyals ($296 million) with a surplus of 0.4%. The surplus is to be used “to boost government reserves, support state funds, like PIF, and strengthen the kingdom’s financial position,” as was said by Crown Prince Mohammed bin Salman. Furthermore, Monica Malik, chief economist of the ADCB claims that the economic impact of this reduction in surplus is to be “limited”. The country has exhibited restraint fiscally following the COVID-19 pandemic where oil prices “collapsed”. However, due to rising oil prices, Saudi Arabia was able to have its first budget surplus this year since 2013.
Adnoc to set up new vertical in decarbonisation push
Adnoc is hastening its decarbonisation strategy by setting up a new low carbon solutions and international growth vertical. The new vertical will focus on renewable energy, clean hydrogen and carbon capture and storage, as well as international expansion in gas, liquefied natural gas (LNG) and chemicals. Adnoc has set a new methane emissions target for its upstream unit as part of its efforts to reduce its overall greenhouse gas emissions. The state-owned oil company is aiming for the “Middle East’s lowest” methane intensity target of 0.15 per cent by 2025.
Global renewable capacity to double over next 5 years as energy crisis deepens: IEA
Global renewable power capacity is expected to double over the next five years primarily driven by energy security concerns caused by Russia’s invasion of Ukraine, according to the International Energy Agency. In its annual report on the outlook of renewables, the organization noted that the capacity of renewables globally is expected to grow by 2,400 gigawatts over the 2022-2027 period, an amount equal to the entire power capacity of China today. According to the report, Europe is leading the energy transition from the front as EU nations are looking to rapidly replace Russian gas with alternatives post the conflict in Ukraine. The report added that countries like China, US and India are implementing policies and introducing regulatory and market reforms to combat a possible energy crisis.
Saudi Arabia sets Jan Arab Light prices to Asia at 10-mth low
Saudi Arabia cut the January official selling price (OSP) for its flagship Arab Light crude for Asian buyers to a 10-month low, on concerns over faltering demand and a potential increase in Russian competition. The OSP for January-loading Arab Light to Asia was trimmed by $2.20 a barrel from December to $3.25 a barrel over Oman/Dubai quotes. The new OSP is just above the previous low of $2.80 per barrel, set for March 2022. Although the market remains cautious on lifting Russian crude as the price cap is just set, it is unlikely that more cargoes will flow to Asia and compete with the Middle Eastern crude.
Saudi Arabia explores opportunities with Netherlands on energy, circular economy in key meeting
Senior officials and business leaders from Saudi Arabia and the Netherlands have met to discuss potential collaborations regarding the energy and circular economy fields. The meeting also shed light on potential opportunities in the Kingdom, specifically in addition to discussions on the development in the labor market and women’s participation in the workforce.
OPEC+ maintains status quo on output amid fresh price cap on Russian oil
OPEC+ has agreed to roll over its existing output policy, just a day after the Group of Seven nations decided to put a price cap on Russian energy supplies. The decision was made at the 34th OPEC and non-OPEC Ministerial Meeting, which was held virtually, on Dec. 4, 2022. OPEC+’s key ministers will next meet on Feb. 1 for a monitoring committee while a full meeting is scheduled for June 3-4.
Iran Increases Gas Exports to Iraq After Payment Settlement
Iraq has settled all payments related to purchases from the National Iranian Gas Company according to the Iranian oil minister. Last year they received about €1 billion [$1.05 billion] and this year €1.6 billion [$1.685 billion] from Iraq regarding its gas debts to Iran. The volume of gas exports to Iraq since the beginning of the current Iranian year [started March 21] has increased by 1.5 billion cubic meters compared with the same period of last year. Iraq has secured special waivers from the US sanctions on Iran to be able to import natural gas and electricity from its eastern neighbor.
7.3 Billion Tons of Potential Phosphate Reserves in Saudi Arabia
The world will need to increase the production of some types of minerals by 500% to meet the future demand for clean energy, according to Saudi Vice Minister of Industry and Mineral Resources for Mining Affairs Khalid Saleh Al-Mudaifer, during the Mines and Money conference in London. Saudi Arabia has become one of the most prominent countries in the field of producing phosphate fertilizers, with potential reserves of phosphate amounting to 7.3 billion tons. The World Bank estimated that there is a need for more than 3 billion tons of minerals and metals.
Germany to get new Qatari LNG flows through QatarEnergy, ConocoPhillips deal
Germany is set to receive new flows of Qatari liquefied natural gas from 2026 after QatarEnergy and ConocoPhillips signed two sales and purchase agreements for its export covering at least a 15-year period. This comes as a result of sanctions placed on Russian LNG, on which European countries were heavily reliant. This new venture will help ease the potential energy crisis that Germany is facing and strengthens ties with Qatar.
Kuwait’s $6.3 bln clean energy projects under implementation
Kuwait has clean energy projects worth $6.3 billion under implementation, while it has only 0.5% of the installed clean energy capacity. A report also indicates that Kuwait has multiple projects which are still in the “study phase” which bodes well for future clean energy endeavors. Amid global economic decline, however, it is understood that their spending on these projects may not be as aggressive as they look to take the most economically suitable approach.
SABIC and Aramco plan to start crude-to-petrochemicals project in Ras Al-Khair
SABIC is planning to start a joint project with Saudi Aramco to convert crude into petrochemicals. As oil receives strong demand, the Saudi energy minister confirmed that this venture will accelerate growth by 60% until 2040. This strategy is currently in its final stages and it includes building an important chain from basic petrochemicals to specialized petrochemicals. The system aims to convert about 4 million barrels of crude and liquids into petrochemicals for local projects. Aramco has been working to commercialize crude to chemicals technologies as part of the strategy to position itself as a preeminent player in the global petrochemicals industry.
Saudi listed firms’ net profit soars 32% as energy, banking sectors shine
Energy firms and banks helped fuel a 32 percent year-on-year rise in aggregate profits for listed companies in Saudi Arabia in the third quarter of 2022. Companies operating in the Kingdom’s energy sector witnessed the maximum profit during the third quarter at $41.2 billion, driven by crude oil prices and volumes sold. UAE-listed companies were the only others in the region to record higher profits for the quarter. GCC companies net profits continued to show growth in the third quarter of 2022 and were up by almost a quarter to reach $70.7 billion as compared to $57.2 billion during the same period in the previous year. These reports further establish the strength of GCC states economically and especially in the energy sector.
Masdar agrees to build 100MW solar PV plant in Turkmenistan
Masdar has signed a joint development agreement (JDA) with Turkmenistan’s state-owned power company Turkmenenergo to build a 100MWac solar photovoltaic (PV) plant. The two companies agreed to explore development and investment opportunities in solar and wind power projects on a public-private partnership basis. This development aims to reduce Turkmenistan’s dependence on hydrocarbons and strengthen their energy infrastructure.
Oil rises 1% as OPEC+ focus on supply cuts outweighs recession concerns
Oil prices rose about 1% on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market. However, prices pared gains late in the session after Bloomberg reported that the European Union watered down its latest sanctions proposal for a price cap on Russia’s oil exports by delaying its full implementation and softening key shipping provisions. In focus later will be the latest weekly snapshots of supply in the United States, which are expected to show crude inventories fell by 2.2 million barrels.
Iran to enrich Uranium to 60 percent purity at Fordow nuclear site
Iran has begun enriching uranium to 60 percent purity at its underground Fordow nuclear site. This is one of many sites where Iran has pursued nuclear development, directly defying the IAEA. Iran are currently being urged to comply with western demands, as they claim that their current ventures violate the agreements signed at the 2015 nuclear pact. Iran responded with claims that these investigations are politically motivated, and that they are not violating any treaties.
Saudi energy minister denies output increase discussion
Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman has denied recent reports stating that the Kingdom is currently discussing an increase in production by 500,000 barrels per day with other OPEC+ producers. He affirmed that it is clear OPEC does not discuss any decisions before its meetings. The UAE energy minister affirmed that his country is “engaging in any discussion with other OPEC+ members to change the last agreement which is valid until the end of 2023.” OPEC remains committed to maintaining balance in the oil markets and global economy.
Saudi Arabia’s Crown Prince visit Thailand to ink landmark deal on energy
The kingdom’s crown prince visited Thailand to encourage hopes of a productive and permanent relationship between the two countries. After 30 years of no diplomatic relations, ties were regained when Thai Premier Prayuth Chan-ocha trip to Riyadh at the beginning of the year. This meeting presented several deals on energy, tourism as well as normalizing diplomatic ties, Thais who give info to Arab News stated that it was vital to them on a personal level as well.
Oil slides on China demand concerns, easing supply worries
Oil fell around 2 percent on Friday and was on track for a second weekly decline, pressured by concern about weakening demand in China and further interest rate rises by the US Federal Reserve. China, which sources say is looking to slow crude imports from some exporters, has seen a rise in COVID-19 cases, while hopes for the moderation of aggressive US rate hikes have been dented by remarks from some Fed officials this week. Brent crude was down $1.80, or 2 percent, at $87.98 a barrel by 1325 GMT, having touched $87.86 earlier, the lowest since Oct. 3. US West Texas Intermediate (WTI) crude was down $1.52 or 1.9 percent at $80.12. OPEC+, which began a new round of supply cuts in November, holds a policy meeting on Dec. 4.
S. Korea, Saudi Arabia agree to boost energy and defense ties
The leaders of South Korea and Saudi Arabia agreed Thursday to boost ties in key sectors such as energy and defense, with the oil-rich kingdom signing a slew of deals including a $6.7 billion petrochemical agreement. During the visit, the two governments and companies from both countries — including some of Seoul’s top conglomerates — signed about 20 deals in areas from agriculture to railways. Among the agreements was Saudi investment for South Korean refiner, S-OIL’s Shaheen project, which would build petrochemical production facilities in South Korea worth $6.7 billion.
OPEC Sec Gen says organization is ready to intervene for the benefit of oil markets
OPEC Secretary General Haitham al-Ghais said on Wednesday that the organization is ready to intervene for the benefit of oil markets, Saudi-owned Al-Arabiya TV reported. Ghais also said that Organization of the Petroleum Exporting Countries (OPEC) is aware, cautious and monitoring economic developments worldwide.
Saudi Arabia has ‘green vision’ at COP27, critics unmoved
“We have hugely ambitious goals and targets,” Saudi climate envoy Adel al-Jubeir said at the two-day Saudi Green Initiative Forum on COP27′s sidelines. “We want to be an example to the world in terms of what can be done.” The effort is part of a large push by Saudi Arabia to make the case that the nation should be part of the transition to renewable energies while holding on to its role as the top global crude oil exporter. Saudi Aramco plans to build the world’s biggest carbon capture and storage hub, which will store up to 9 million tons of carbon dioxide when its up and running in 2027.
Kuwait Reshuffles Oil & Gas Sector Leadership
Kuwait Petroleum Corporation (KPC) CEO Sheikh Nawaf Saud Al Sabah has reshuffled the leadership of the state umbrella firm’s subsidiaries. The move comes six months after his appointment to the role and just weeks after a new oil minister was appointed. Back in February 2021, some of the subsidiaries were given the same CEOs in order to facilitate their subsequent merging, but now those plans have been ditched. Kuwait’s two domestic upstream firms, KOC and KGOC once again have separate CEOs, as do Kuwait’s two domestic downstream firms, KNPC and Kipic.
Saudi Aramco partners with energy ministry to establish carbon capture and storage hub
Saudi Arabian Oil Co., one of the biggest oil producers in the world, has joined hands with the Kingdom’s energy ministry to establish a carbon capture and storage hub as Saudi Arabia steadily progresses to achieve its net-zero ambition by 2060. During the speech, Saudi Aramco CEO Amin Nasser said that the new CCS hub would be located on the east coast of Saudi Arabia in Jubail. According to Nasser, the hub will have a storage capacity of up to 9 million tons of carbon dioxide a year by 2027.
Saudi Arabia announces 13 new renewables projects in latest move towards net-zero
Thirteen new renewables projects are currently under development, the Kingdom’s Minister of Energy Prince Abdulaziz bin Salman announced as the country pushes towards its goal of achieving net-zero by 2060. The projects have the capacity of 11.3 Gigawatts and the ability to reduce approximately 20 million tons of carbon emissions per year. The past year alone, Saudi Arabia has managed to reduce emissions by about one million tons.
Saudi Aramco, Energy ministry sign agreement to establish a carbon capture and storage hub
Saudi Aramco signed a joint development agreement in partnership with Saudi Arabia’s Energy ministry to establish a carbon capture and storage hub which will potentially be able to safely store up to 9 million tonnes of carbon dioxide a year by 2027. This is a major step in the development of safer fuel alternatives.
UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
Bahrain announces two new natural gas discoveries
Bahrain has announced two natural gas discoveries in the Al-Joubah and Al-Jawf reservoirs. However, officials have not disclosed the potential of these reserves to the public. It is likely that this discovery will benefit the nation as they deliberate a new plan within the next six months.
COP27: UAE and Egypt agree to build one of world’s biggest wind farms
An agreement between the Presidents of the UAE and Egypt will see the development of one of the world’s largest wind farms. This is a venture initiated by UAE energy company Masdar, and is projected to produce 47,790 GWh of clean energy annually and offset 23.8 million tonnes of carbon dioxide emissions, equivalent to around 9% of Egypt’s current CO2 emissions. The project further cements the UAE as a leader in reducing carbon emissions, and progresses Egypt’s goal of net-zero carbon emissions.
Saudi Arabia Signs Energy MoUs with Egypt, Oman
Saudi Arabia has signed two MoUs with Egypt and Oman in an effort to expand operations involving renewable energy, transport of clean hydrogen transport, and electrical interconnection. The agreement with Egypt also encourages digital transformation, innovation, cyber-security, and artificial intelligence. The Saudi minister of Energy and his Omani counterpart, Minister of Energy and Minerals Salem bin Nasser Al-Awfi, signed an MoU for energy cooperation, which includes strengthening cooperation in renewable energy, electricity, energy efficiency and hydrogen, applying the circular carbon economy approach to reduce the effects of climate change, and developing standards to support the use of sustainable materials.
UAE’s Biggest Clean-Energy Firm to Look at Deals in US, Europe
In an effort to achieve a net zero carbon production, the UAE’s largest renewable energy company will make acquisitions and sell bonds as part of a plan to more than double its operations. Masdar, an Emirati company, plans to acquire foreign power firms in an ambition to reach 100GW of production, versus its current rate at 20GW. Additionally, the company has incorporated the development of nuclear, hydrogen, and other eco friendly energy sources in their expansion plans.
Kuwait says to become carbon neutral in oil and gas by 2050
Kuwait is committed to becoming carbon neutral in the oil and gas sector by 2050 and in the whole country a decade after that. This is an important step following announcements made by UAE, Saudi Arabia, and other GCC states who have adopted a net-zero carbon production plan for the future. This announcement came as a result of the COP27 climate summit in Egypt which experts hope will create a trend of carbon-conscious operations.
Kuwait appoints new CEOs for state oil companies
Ahmed Jaber al-Aydan was appointed as CEO of Kuwait Oil Company, and Wadha al-Khateeb as CEO of Kuwait National Petroleum Company. New leaders were also chosen for Kuwait Integrated Petroleum Industries Company (KIPIC) and other state companies in the sector.
Saudi energy ministry approves feedstock allocation for Alujain’s $2bln petrochemical project
Saudi industrial group Alujain Corporation announced on Sunday that it has received the Ministry of Energy’s nod on feedstock allocation for establishing a new petrochemicals project in Yanbu Industrial City at a total cost of 7.5 billion Saudi riyals ($2 billion). The project, upon completion, will produce more than 600,000 tonnes/year of polypropylene, polypropylene compounds, and specialized construction materials from polypropylene derivatives, in addition to about 25,000 tonnes/year of saleable hydrogen.
ADNOC, Baker Hughes Sign Agreement To Explore New Technology for a Clean Energy Future
Baker Hughes, an energy technology company, and the Abu Dhabi National Oil Company (ADNOC) signed a strategic technology collaboration agreement during ADIPEC 2022 to explore collaboration opportunities around research and development (R&D) for technologies that can help drive a sustainable energy future in the UAE. “ADNOC is accelerating the development and deployment of advanced technologies to provide smarter, lower carbon, energy to the world. Together with Baker Hughes, we will focus on finding innovations that help the UAE achieve its Net-Zero by 2050 strategic initiative, while also generating In-County Value,” said Sophie Hildebrand, ADNOC Group Chief Technology Officer.
Moody’s upgrades Qatar outlook on higher energy prices
Ratings agency Moody’s has upgraded Qatar’s credit outlook to positive from stable, citing higher energy prices expected to bring significant budget surpluses that will help the Gulf state to manage its medium-term debt profile. “The change of outlook to positive reflects the prospect that the improvement in Qatar’s debt metrics, observed in 2021-22 as a result of elevated energy prices, can be sustained in the medium term even if oil and natural gas prices moderate over the next few years,” Moody’s said. High energy prices have so far translated into a budget surplus of almost 50 billion Qatari riyals ($13.7 billion), the Emir Sheikh Tamim bin Hamad al-Thani.
Kuwait’s Kufpec offers LNG cargo from Australia’s Wheatstone plant
Kuwait Foreign Petroleum Exploration Co (KUFPEC) has issued a tender offering a liquefied natural gas (LNG) cargo for loading in Australia in December. The cargo is offered on a free-on-board (FOB) basis from the Wheatstone plant in Australia for Dec. 19 to 24 loading. KUFPEC, the foreign energy exploration arm of Kuwait, is a stakeholder in the Chevron-operated Wheatstone LNG project.
Iran To Sign $40 Billion Deal With Russian Gas Giant
A senior Iranian diplomat was quoted saying that Iran expects to sign an energy agreement with Russian gas giant Gazprom worth around $40 billion. “We have concluded an agreement worth about $6.5 billion with Gazprom. We hope that the remaining agreements totalling to $40 billion will be signed (in December). The negotiations are currently ongoing,” said Mahdi Safari, Iranian Deputy Foreign Minister for Economic Diplomacy. Iran’s Petroleum Minister Javad Owji said at the bilateral forum that the public and private sectors in both countries are looking to “neutralize the sanctions.”