ECRA: Power generation and transmission projects need SR526bn

Updated 11 July 2014
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ECRA: Power generation and transmission projects need SR526bn

A whopping sum of SR 526 billion is needed for the implementation of power generation, transmission and distribution projects, local media said quoting a report released by the Electricity and Cogeneration Regulatory Authority (ECRA).
Based on a study on the estimated cost of electricity services during 1430-1441H, power generation will cost SR335 billion, or 63.7 percent of the overall costs, transmission SR121 billion (23 percent) and distribution SR70 billion (13.3 percent), the report said.
According to the estimates, the maximum power load will reach 71.940 GW by the year 1441 whereas the generating reserve will hit 15 percent, the report said.
In the fiscal year 1434-1435, a number of contracts were signed for the implementation of electric projects costing nearly SR 46 billion of which SR14.8 billion was allocated for generation projects, SR22.5 billion for transmission and SR8.5 billion for distribution projects, Al-Eqtisadiah daily said.
The volume of works and investments needed for electricity industry up to 1441 represents attractive opportunities to the private sector, according to the ECRA report.
The private sector companies could avail opportunities to implement independent projects for power generation, water desalination, construction, operation or lease of power transmission lines, management of current facilities, or provision of services to customers, the report added.
The report said ECRA pursues to select the best options in a manner to serve the interests of the Kingdom in coordination with the Ministry of Water and Electricity, the Saudi Electricity Company (SEC), Saline Water Conversion Corporation (SWCC) and other investors relevant to this area.


Oil prices fall as US crude output hits record

Updated 25 min 29 sec ago
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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.