SEC implementing SR100bn projects

Updated 12 August 2013
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SEC implementing SR100bn projects

Saudi Electricity Company (SEC) is currently implementing huge electric projects at a total cost of more than SR100 billion, said its CEO Ali Al-Barrak.
“They will be implemented in many phases, and they will be completed within 3 years,” he said.
“We want to address and meet the increasing demand on power, in view of the increasing population and the ongoing urban expansion,” he told Arab News. 
Asked about the frequent power failure instances in many parts of the Kingdom, and if there is a radical solution to the problem, Al-Barrak said: “SEC saves no effort in order to solve this problem. It is a top priority for us. The subscriber has every right to receive stable power supply.”
He, however, said: “This is not a new problem and it happens in every part of the world. “
He also said: “It is subject to supply and demand. And it depends totally on prudent use of electricity without wastage. Power should be used when needed.”
The CEO said: “I would like to say that icases of power failure are infrequent n Saudi Arabia compared to other countries. When it does happen, it takes only a few hours and the situation would be corrected promptly.”
Al-Barrak urged consumers to use power prudently and economically. “This way we will minimize instances of power failure in the future.”
SEC Chairman Hassan Al-Awaji, meanwhile, signed a contract with Hyundai Heavy Industries (HHI) to build a power generation plant in Jazan.
The plant will add 2,640 MW of power to the current capacity. The total cost of the plant will be more than SR12.2 billion.
“The project involves the design and supply of 4 steam generators that use high efficiency boilers, in order to minimize the use of energy. The plant will be completed in 60 months from the date of signing the contract,” he said. “The contract also stipulates that HHI will build all the ancillary and support systems, in addition to a 380 KV relay station to connect the plant with the grid,” he added.
“The project aims at raising the power generation capability and keep abreast with the economic boom in the Kingdom. It will be financed from SEC’s revenues and its cash flows, in addition to commercial and government loans,” he said.
The generation capacity of SEC and other power generators at the first half of this year stood at 55,850 MW, up from 24,083 MW in 2000, an increase of 132 percent.


Oil rises after US Navy destroys Iranian drone

Updated 19 July 2019
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Oil rises after US Navy destroys Iranian drone

  • The International Energy Agency is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day
  • Speculators have exited options positions that could have provided exposure to higher prices in the next several years

TOKYO: Oil prices rose more than 1 percent on Friday after the US Navy destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows, again raising tensions in the Middle East.
Brent crude futures were up 82 cents, or 1.3 percent, at $62.75 by 0100 GMT. They closed down 2.7 percent on Thursday, falling for a fourth day.
West Texas Intermediate crude futures firmed 61 cents, or 1.1 percent, at 55.91. They fell 2.6 percent in the previous session.
The United States said on Thursday that a US Navy ship had “destroyed” an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone.
The move comes after Britain pledged to defend its shipping interests in the region, while US Central Command chief General Kenneth McKenzie said the United States would work “aggressively” to enable free passage after recent attacks on oil tankers in the Gulf.
Still, the longer-term outlook for oil has grown increasingly bearish.
The International Energy Agency (IEA) is reducing its 2019 oil demand forecast due to a slowing global economy amid a US-China trade spat, its executive director said on Thursday.
The IEA is revising its 2019 global oil demand growth forecast to 1.1 million barrels per day (bpd) and may cut it again if the global economy and especially China shows further weakness, Fatih Birol said.
“China is experiencing its slowest economic growth in the last three decades, so are some of the advanced economies ... if the global economy performs even poorer than we assume, then we may even look at our numbers once again in the next months to come,” Birol told Reuters in an interview.
Last year, the IEA predicted that 2019 oil demand would grow by 1.5 million bpd but had already cut the growth forecast to 1.2 million bpd in June this year.
Speculators have exited options positions that could have provided exposure to higher prices in the next several years, market participants said on Thursday.
US offshore oil and gas production has continued to return to service since Hurricane Barry passed through the Gulf of Mexico last week, triggering platform evacuations and output cuts.
Royal Dutch Shell, a top Gulf producer, said Wednesday it had resumed about 80 percent of its average daily production in the region.