Dubai’s Al Maktoum airport expansion delayed until 2030

A major expansion of Dubai’s second airport Al Maktoum International will open in 2030. (Photo credit: Dubai Media Office's Twitter account)
Updated 19 October 2018

Dubai’s Al Maktoum airport expansion delayed until 2030

DUBAI: A major expansion of Dubai’s second airport Al Maktoum International will open in 2030, the emirate’s government said, five years later than officials had previously indicated.
The airport will be able to handle 130 million passengers a year when the first phase of a planned expansion opens in 2030, and ultimately more than 260 million passengers a year, the statement, released by the Dubai government’s media office on Thursday, said.
Dubai officials had previously said the first phase would open by 2025. The Dubai government media office could not immediately be reached outside working hours on Friday for comment on the reason for the delay.
Dubai expects to spend around $36 billion on the airport expansion and the Dubai World Central aviation complex where it is located.
Reuters reported on Oct. 3 that the expansion had been delayed and that the second stage of financing for the project had been delayed indefinitely.
It is not the first delay to the airport’s expansion. A smaller capacity increase is a year behind schedule, although it is expected to be finished this year. At that point the airport’s capacity is expected to be 26 million passengers per year.
The government also said that Dubai Aviation Engineering Projects (DAEP) had launched a tender to build the substructure for the airport, in what would be the largest single value contract issued for the airport to date.
Al Maktoum International, which opened to passengers in 2013, currently handles only a fraction of Dubai’s passenger traffic. It will be larger than main airport Dubai International, currently one of the world’s busiest, when the first phase of the expansion opens and eventually become the new base of Emirates airline.
Dubai Airports said in 2016 it was expanding Dubai International to handle 118 million passengers a year by 2023, 18 million more than initially planned, in case the development of Al Maktoum International was delayed.


OPEC, allied nations extend nearly 10M barrel cut by a month

Updated 1 min 27 sec ago

OPEC, allied nations extend nearly 10M barrel cut by a month

  • The meeting, originally scheduled for next week, was brought forward to Saturday

VIENNA: OPEC and allied nations agreed on Saturday to extend a production cut of nearly 10 million barrels of oil a day through the end of July, hoping to boost energy prices hard-hit by the coronavirus pandemic.
Ministers of the group and outside nations like Russia met via video conference to adopt the measure, aimed at cutting out the excess production depressing prices as global aviation remains largely grounded due to the pandemic. It represents some 10% of the world's overall supply.
However, danger still lurks for the market. Algerian Oil Minister Mohamed Arkab, the current OPEC president, warned attendees that the global oil inventory would soar to 1.5 billion barrels by the mid-point of this year.
“Despite the progress to date, we cannot afford to rest on our laurels,” Arkab said. “The challenges we face remain daunting.”
That was a message echoed by Saudi Arabia's Oil Minister Abdul Aziz bin Salman, who acknowledged “we all have made sacrifices to make it where we are today.” He said he remained shocked by the day in April when U.S. oil futures plunged below zero.
“There are encouraging signs we are over the worst,” he said.
Russian Energy Minister Alexander Novak similarly called April “the worst month in history” for the global oil market.
The decision came in a unanimous vote, Energy Minister Suhail al-Mazrouei of the United Arab Emirates wrote on Twitter. He called it “a courageous decision and a collective effort deserving praise from all participating producing countries.”
OPEC has 13 member states, including Saudi Arabia. The additional countries part of the plus-accord have been led by Russia, with Mexico under President Andrés Manuel López Obrador playing a considerable role at the last minute in the initial agreement.
Crude oil prices have been gaining in recent days, in part on hopes OPEC would continue the cut. International benchmark Brent crude traded Saturday at over $42 a barrel. Brent had crashed below $20 a barrel in April.
The oil market was already oversupplied when Russia and OPEC failed to agree on output cuts in early March. Analysts say Russia refused to back even a moderate cut because it would have only served to help US energy companies that were pumping at full capacity. Stalling would hurt American shale-oil producers and protect market share.
Prices collapsed as the coronavirus and the COVID-19 illness it causes largely halted global travel. That also hurt US shale production, drawing the ire of President Donald Trump. But Trump welcomed the earlier deal, as US Energy Secretary Dan Brouillette did on Saturday with the extension.
“I applaud OPEC-plus for reaching an important agreement today which comes at a pivotal time as oil demand continues to recover and economies reopen around the world,” Brouillette wrote on Twitter.
Under a deal reached in April, OPEC and allied countries were to cut nearly 10 million barrels per day until July, then 8 million barrels per day through the end of the year, and 6 million a day for 16 months beginning in 2021.
However, some countries produced beyond their quotas set by the deal. One of them was Iraq, which remains decimated after the yearslong war against the Islamic State group.
On Saturday, Iraq Oil Ministry spokesman Assem Jihad said in statement that Baghdad had “renewed its full commitment” to the OPEC+ deal.
“Despite the economic and financial circumstances that Iraq is facing, the country remains committed to the agreement," Jihad said.
Analysts had expected OPEC and the other nations to extend the cuts of 10 million barrels per day by one more month, but not longer, since the level of demand is still fluctuating.
“If the demand is great, countries like Russia will want to produce more oil, so they probably won’t want to get locked into a longer-term deal that may not help them,” said Jacques Rousseau, managing director at Clearview Energy Partners.