Siemens delivers first Made in KSA gas turbine

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Minister of Energy, Industry and Mineral Resources, Khalid A. Al-Falih, Amin Nasser, president and CEO of Saudi Aramco and Deputy Minister of Electricity and Chairman of Saudi Electricity Company Saleh Al-Awaji at the Siemens Dammam Energy Hub.
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Updated 23 May 2016
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Siemens delivers first Made in KSA gas turbine

DAMMAM: In line with Saudi Vision 2030 and Saudi Aramco’s in-Kingdom Total Value Add (iktva) program, Siemens has delivered its first gas turbine built in Saudi Arabia.

The gas turbine, which will be installed at Saudi Aramco’s new power plant as part of the Jazan refinery project, was produced at the Siemens Dammam Energy Hub, Saudi Arabia’s first gas turbine manufacturing facility and the largest in the Middle East.
The celebration ceremony of the first Made in KSA gas turbine on Sunday, held with the support of Minister of Energy, Industry and Mineral Resources, Khalid A. Al-Falih, was attended by Amin Nasser, president and CEO of Saudi Aramco, welcomed dignitaries from the government, as well as key stakeholders from the private sector.
Al-Falih said: “Today, we celebrate the first utility-size gas turbine to be assembled here in Saudi Arabia. My thanks and congratulations to everyone at Siemens who has worked hard to make this day possible – including, of course, the qualified young Saudis, trained by Siemens with Saudi Aramco support. This achievement closely aligns with Saudi Vision 2030 announced last month by Deputy Crown Prince Mohammed bin Salman, with the full blessing of Custodian of the Two Holy Mosques King Salman.”
He added: “While oil and gas will remain fundamental pillars of our economy, the promise of Saudi Vision 2030 will liberate our economy from its over-dependence on oil exports for revenues. Instead, our natural endowments will enable our country’s other strengths and capabilities — especially the talent and energy of our youth, and the critical SME sector — in fundamentally new ways.”
“Today is a symbol of the win-win-win that can be achieved for suppliers, for Saudi companies, and for Saudi Arabia if we share the same vision and share the same responsibility for making it a reality. The Kingdom is open for companies, like Siemens, to invest further in our economy, our SMEs, and our people, in return for rich rewards – both here in the Kingdom and from resulting exports.”

Nasser said: “I congratulate the Siemens team for the delivery of the gas turbine from their largest Middle East manufacturing facility in Dammam Second Industrial City. Working with MODON and Saudi Aramco, Siemens has demonstrated that close collaboration can help realize localization growth opportunities, aligned with Saudi Vision 2030.”
Joe Kaeser, president and CEO of Siemens AG, stated: “The Kingdom’s Vision 2030 represents the ambitious determination of transforming the nation economically and socially. We sincerely believe that Vision 2030 is one of the most significant milestones in the Kingdom’s contemporary history since the discovery of oil. Siemens and its more than 2,000 employees in the Kingdom will actively support Vision 2030, through localization, innovation and global partnership.”
In 2011, Siemens, together with Saudi Aramco and Saudi Electricity Company, jointly committed to build the Siemens Dammam Energy Hub as part of the company’s continuously expanding local footprint in the Kingdom.
Saleh Al-Rasheed, director general of the Saudi Industrial Property Authority (MODON), said, “When MODON and Siemens signed the land lease agreement for the construction of a manufacturing and service facility in 2012, we had an ambition at that moment, and believed this would be one of many mega projects that MODON has successfully attracted to the industrial cities. Today, we are happy to see that the largest Siemens manufacturing facility in the Middle East to call the Second Industrial City in Dammam its home. We appreciate the efforts that Siemens has invested in training and qualifying young Saudis to achieve true knowledge transfer and the build-up of local capabilities.”
Siemens has embarked on a program to train young Saudi talent in advanced gas turbine technologies, both domestically and abroad. The graduates from the program are employed at the Dammam factory and represent the next generation of leaders and experts who will shape the future of the energy industry in the Kingdom.
Arja Talakar, CEO of Siemens Saudi Arabia said: “Today is a historic day for the Kingdom of Saudi Arabia and for Siemens. Together with our partners we were able to give this high-tech gas turbine a new home, with technology built by young Saudi talent, in Saudi Arabia, for Saudi Arabia. That is what we are celebrating today.”
Siemens has been active in the Kingdom for over 85 years and carries on with its commitment to being an active player in the development of the Kingdom’s infrastructure. Deputy Minister of Electricity and Chairman of Saudi Electricity Company Saleh Al-Awaji was among the dignitaries at the event and echoed this sentiment, and said: “No doubt Siemens is one of the historical partners in the Kingdom, a partner of our infrastructure development, particularly in the power sector.”
The event provided an excellent opportunity to underline Siemens’ new claim — Ingenuity for Life. Arja Talakar explained: “Ingenuity for Life is the claim that encompasses the unrelenting drive and promise to create value for our customers, employees, partners and society every day, and for an entire lifetime. With ingenuity, Siemens sets the benchmark in electrification and automation, enhanced by digitalization around the globe. Our goal is to serve and advance societies by making our technology and knowledge accessible to more people around the world.”
Kaeser added: “Since our company’s formation, nearly 170 years ago, we have had a clear commitment to thinking and acting in the interest of future generations because we believe that acting responsibly is the only way to achieve a balance between profitable long-term growth, the planet and people. Siemens conducts business to society, and together with Juffali we are ready to jointly identify what lies over the horizon and will leverage our collective strength to serve the Kingdom and its people. Because what is important to Saudi Arabia matters to Siemens.”


Gulf of Oman tanker attacks jolt oil-import dependent Asia

Updated 15 June 2019
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Gulf of Oman tanker attacks jolt oil-import dependent Asia

  • Iranian threats to close the Strait of Hormuz have alarmed Japan, China and South Korea
  • Japan’s conservative prime minister, Shinzo Abe, was in Tehran when the attack happened

SEOUL: The blasts detonated far from the bustling megacities of Asia, but the attack this week on two tankers in the strategic Strait of Hormuz hits at the heart of the region’s oil import-dependent economies.

While the violence only directly jolted two countries in the region — one of the targeted ships was operated by a Tokyo-based company, a nearby South Korean-operated vessel helped rescue sailors — it will unnerve major economies throughout Asia.

Officials, analysts and media commentators on Friday hammered home the importance of the Strait of Hormuz for Asia, calling it a crucial lifeline, and there was deep interest in more details about the still-sketchy attack and what the US and Iran would do in the aftermath.

In the end, whether Asia shrugs it off, as some analysts predict, or its economies shudder as a result, the attack highlights the widespread worries over an extreme reliance on a single strip of water for the oil that fuels much of the region’s shared progress.

Here is a look at how Asia is handling rising tensions in a faraway but economically crucial area, compiled by AP reporters from around the world:

WHY ASIA WORRIES

The oil, of course.

Japan, South Korea and China don’t have enough of it; the Middle East does, and much of it flows through the narrow Strait of Hormuz, which is the passage between the Arabian Gulf and the Gulf of Oman.

This could make Asia vulnerable to supply disruptions from US-Iran tensions or violence in the strait.

The attack comes months after Iran threatened to shut down the Strait of Hormuz to retaliate against US economic sanctions, which tightened in April when  the Trump administration decided to end sanctions exemptions for the five biggest importers of Iranian oil, which included China and US allies South Korea and Japan.

Japan is the world’s fourth-largest consumer of oil — after the US, China and India — and relies on the Middle East for 80 per cent of its crude oil supply. The 2011 Fukushima nuclear disaster led to a dramatic reduction in Japanese nuclear power generation and increased imports of natural gas, crude oil, fuel oil and coal.

In an effort to comply with Washington, Japan says it no longer imports oil from Iran. Officials also say Japanese oil companies are abiding by the embargo because they don’t want to be sanctioned. But Japan still gets oil from other Middle East nations using the Strait of Hormuz for transport.

South Korea, the world’s fifth largest importer of crude oil, also depends on the Middle East for the vast majority of its supplies.

Last month, South Korea halted its Iranian oil imports as its waivers from US sanctions on Teheran expired, and it has reportedly tried to increase oil imports from other countries.

China, the world’s largest importer of Iranian oil, “understands its growth model is vulnerable to a lack of energy sovereignty,” according to market analyst Kyle Rodda of IG, an online trading provider, and has been working over the last several years to diversify its suppliers. That includes looking to Southeast Asia and, increasingly, some oil-producing nations in Africa.

THE GEOGRAPHY AND THE POLITICS

Asia and the Middle East are linked by a flow of oil, much of it coming by sea and dependent on the Strait of Hormuz.

Iran threatened to close the strait in April. It also appears poised to break a 2015 nuclear deal with world powers, an accord that US President Donald Trump withdrew from last year. Under the deal saw Tehran agree to limit its enrichment of uranium in exchange for the lifting of crippling sanctions.

For both Japan and South Korea, there is extreme political unease to go along with the economic worries stirred by the violence in the strait.

Both nations want to nurture their relationship with Washington, a major trading partner and military protector. But they also need to keep their economies humming, which requires an easing of tension between Washington and Tehran.

Japan’s conservative prime minister, Shinzo Abe, was in Tehran, looking to do just that when the attack happened.

His limitations in settling the simmering animosity, however, were highlighted by both the timing of the attack and a comment by Iranian Supreme Leader Ayatollah Ali Khamenei, who told Abe that he had nothing to say to Trump.

In Japan, the world’s third largest economy, the tanker attack was front-page news.

The Nikkei newspaper, Japan’s major business daily, said that if mines are planted in the Strait of Hormuz, “oil trade will be paralyzed.” The Tokyo Shimbun newspaper called the Strait of Hormuz Japan’s “lifeline.”

Although the Japanese economy and industry minister has said there will be no immediate effect on stable energy supplies, the Tokyo Shimbun noted “a possibility that Japanese people’s lives will be affected.”

South Korea, worried about Middle East instability, has worked to diversify its crude sources since the energy crises of the 1970s and 1980s.

THE FUTURE

Analysts said it’s highly unlikely that Iran would follow through on its threat to close the strait. That’s because a closure could also disrupt Iran’s exports to China, which has been working with Russia to build pipelines and other infrastructure that would transport oil and gas into China.

For Japan, the attack in the Strait of Hormuz does not represent an imminent threat to Tokyo’s oil supply, said Paul Sheldon, chief geopolitical adviser at S&P Global Platts Analytics.

“Our sense is that it’s not a crisis yet,” he said of the tensions.

Seoul, meanwhile, will likely be able to withstand a modest jump in oil prices unless there’s a full-blown military confrontation, Seo Sang-young, an analyst from Seoul-based Kiwoom Securities, said.

“The rise in crude prices could hurt areas like the airlines, chemicals and shipping, but it could also actually benefit some businesses, such as energy companies (including refineries) that produce and export fuel products like gasoline,” said Seo, pointing to the diversity of South Korea’s industrial lineup. South Korea’s shipbuilding industry could also benefit as the rise in oil prices could further boost the growing demand for liquefied natural gas, or LNG, which means more orders for giant tankers that transport such gas.