Port authorities plan to spend SR 3.43 billion on development

Updated 17 June 2013
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Port authorities plan to spend SR 3.43 billion on development

With traffic continuing to rise at all of the Kingdom's major seaports, the Saudi Ports Authority (SPA) and King Abdul Aziz Port plan to spend SR 3.43 billion ($ 914 million) on port development in the Saudi Arabia.
Among these developments is a SR 615 million ($ 164 million) plan that includes a SR 191.3 million ($ 51 million) power plant to be constructed at King Abdul Aziz Port in Dammam to boost power generation capacity from 50 megawatts to 120 megawatts.
As well, a new container terminal at a cost of SR 172.5 million ($ 46 million) will be built in Dheba Port, with two others to be constructed at King Fahd Industrial Port in Jubail at a cost of SR 142.5 million ($ 38 million), with both due for completion by 2014.
In addition, more than SR 2812.5 million ($ 750 million) is to be invested into the expansion of Dammam’s King Abdul Aziz Port, with SR 2006.25 million ($ 535 million) set aside for container terminal capacity expansion and SR 798.75 million ($ 213 million) for other facilities, following a 10 percent increase in container handling in 2012 compared to 2011 figures.
Commenting on the increase in traffic and container volume across the Kingdom, Sahir Tahlawi, general manager at Jeddah Islamic Port (JIP), said: "Growth at the Red Sea Gateway Terminal in Jeddah accounted for the handling of one million TEU in 2011 and increased to over 1.5 million TEU last year, reflecting the Kingdom's massive growth of import and exports. Overall, the SPA's development plans for all domestic seaports are an indicator that more international companies are becoming interested and doing business with the Kingdom."
He added that in addition to expanding the seaport network and container capacity, the Kingdom has also realized leisure and tourism, as a valuable economic driver and has announced plans to build a SR 101.3 million ($ 27 million) cruise and leisure vessel terminal at Yanbu Commercial Port, also under its key development plan.
As one of the Kingdom’s primary container hubs, the JIP has witnessed increased volumes by more than 25 percent, recording a 5.15 percent in growth of imports and exports in the first half of the year, rising to 3.6 million tons and an average increase of 10.9 percent per annum forecast through 2016.
According to data from the SPA, the Kingdom's ports handled 16,264,525 tons of cargo last month, with the total for 2013 at 75,172,657 tons, excluding oil.


Oil prices fall as US crude output hits record

Updated 22 February 2019
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Oil prices fall as US crude output hits record

  • US crude oil production reached 12 million barrels per day for the first time last week
  • As output surges, US oil stocks are also rising

SINGAPORE: Oil prices fell on Friday after the United States reported its crude output hit a record 12 million barrels per day (bpd), undermining efforts by Middle East-dominated producer club OPEC to withhold supply and tighten global markets.
International Brent crude futures were at $66.87 per barrel at 0326 GMT, down 20 cents, or 0.3 percent, from their last close.
US West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel, down 12 cents, or 0.2 percent, from their last settlement.
US crude oil production reached 12 million bpd for the first time last week, the Energy Information Administration (EIA) said on Thursday in a weekly report.
That means US crude output has soared by almost 2.5 million bpd since the start of 2018, and by a whopping 5 million bpd since 2013. America is the only country to ever reach 12 million bpd of production.
As output surges, US oil stocks are also rising.
US commercial crude oil inventories rose by 3.7 million barrels to 454.5 million barrels in the week ended Feb. 15, the EIA said.
Analysts say US output will rise further and that oil firms will export more oil to sell off surplus stocks.
“We see total US crude production hitting 13 million bpd by year-end, with 2019 averaging 12.5 million bpd,” US bank Citi said following the release of the EIA report.
Of that, the bank said, “we could be seeing some weeks with 4.6 million bpd of gross crude exports by end-year, adding to this week’s new record” of 3.6 million bpd.
Friday’s dips at least temporarily halted a rally that pushed crude prices this week to their highest for 2019 so far amid the supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
OPEC and some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million bpd to prevent a large supply overhang from growing.
Another recent price driver has been US sanctions against oil exporters Iran and Venezuela.