Saudi Aramco leads fight against methane

Saudi Aramco leads fight against methane
Saudi Aramco spends a big proportion of its research and development budget on measures to counter the environmentally damaging effects of the oil and gas business. (Shutterstock)
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Updated 06 January 2020

Saudi Aramco leads fight against methane

Saudi Aramco leads fight against methane
  • Saudi company is more efficient in both current emissions and its targets for future reduction

DUBAI: Saudi Aramco has emerged as the most effective energy company in the world at mitigating emissions of the atmospheric pollutant methane from natural gas operations, according to consulting firm Thunder Said Energy.

A research survey put Aramco, the world’s biggest listed company, at the top of a table that included all the big energy groups. 

The Saudi company was about six times more efficient than US energy giants Exxon Mobil and Chevron, in both current emissions and targets for future reduction, as a proportion of its gas production.Equinor, the state energy company of environmentally conscious Norway, ranked second in the survey.

Thunder Said’s Rob West, an expert in energy economics, said that controlling methane emissions was a crucial aspect of the move to decarbonize global energy supplies, in which gas is playing an increasingly important role. Methane, a much more powerful greenhouse gas than carbon dioxide (CO2), is released in the gas production and transportation process.




Saudi Aramco became the world’s most valuable public company this year with a stock offering launch in December. (AP)

“Scaling up natural gas is the largest decarbonization opportunity on the planet. But this requires minimizing methane leaks. Exciting new technologies are emerging,” West said. Global gas demand will treble by 2050 as producers and consumers seek cleaner alternatives to coal and oil.

Aramco, the biggest oil exporter, has huge quantities of natural gas, which it has identified as a key area of expansion for domestic supply and export in the form of liquified natural gas. “We basically look at natural gas as an area for growth for the company,” Khalid Al-Dabbagh, Aramco’s chief financial officer, said in an investor call in the run-up to its successful IPO this year.

Aramco spends a big proportion of its research and development budget on measures to counter the environmentally damaging effects of the oil and gas business, including advanced technology to reduce pollutants in energy products.

Although most environmentalists have focused their attention on CO2 as the main contributor to global warming, and hence to damaging climate change, some experts regard methane as a far more serious threat.

There is far more CO2 in the atmosphere, but methane is up to 120 times more powerful as a warming agent and takes longer to leave Earth’s atmosphere. “Methane accounts for around 25 to 30 percent of all the warming occurring on the planet,” West said, while around a quarter comes from fossil fuel production.

“Mitigating methane emissions is becoming crucial for tackling net emissions.” 

While methane leaks at all stages of the natural gas production process, almost half is emitted during the upstream phase. Sensors, drones and even satellites are being increasingly used to detect these emissions. Aramco stopped “flaring” gas years ago.

“The world will need superior methods to mitigate methane. In the developed world, this will be necessary for operators wishing to demonstrate low carbon credentials, and preserve their access to customers and capital markets,” West said. “The other way for investors to lower methane emissions may be to favor companies with low methane emissions and targets to improve.”

Decoder

Methane

A much more powerful greenhouse gas than carbon dioxide (CO2), methane is released in the gas production and transportation process.


UAE licenses second unit of Barakah nuclear power plant

UAE licenses second unit of Barakah nuclear power plant
Updated 1 min 10 sec ago

UAE licenses second unit of Barakah nuclear power plant

UAE licenses second unit of Barakah nuclear power plant
  • Barakah to supply one quarter of peak demand
  • Nuclear joins gas and solar power projects

DUBAI: The nuclear regulator in UAE has issued an operating license for the second unit of the Barakah nuclear power plant, an official from the regulator said on Tuesday.
The plant in the Al Dhafrah region of Abu Dhabi, one of the seven emirates making up the UAE and the nation’s capital, is the first nuclear power station in the Arab world and part of the Gulf oil producer’s efforts to diversify its energy mix.
Barakah’s Unit 1 was connected to the national power grid in August and in December reached 100 percent of reactor power capacity during testing.
Unit 1’s commercial operations are expected to start this year, Hamad Al Kaabi, deputy chairman of Federal Authority for Nuclear Regulation (FANR) and the UAE’s representative at the International Atomic Energy Agency (IAEA), told journalists.
The project has faced delays, some related to training staff as the country builds a nuclear industry from scratch.
Construction on Unit 1 began in 2012 and the plant was expected to start up in 2017, but FANR did not grant a license to the operator Nawah Energy Company until February 2020.
Nawah first applied to FANR for licenses for the two units in 2015.
When completed Barakah, which is being built by Korea Electric Power Corp. (KEPCO), will have four reactors with 5,600 megawatts (MW) of total capacity — equivalent to around 25 percent of the UAE’s peak demand.
Construction of Unit 3 is 94 percent complete and Unit 4 is 87 percent complete, Kaabi said.
Asked about security at the plant, Kaabi said measures were in place to protect the site from physical and cyber threats. He did not provide details.


OECD hikes 2021 world growth forecast to 5.6% on vaccine, stimulus rollout

OECD hikes 2021 world growth forecast to 5.6% on vaccine, stimulus rollout
Updated 19 min 16 sec ago

OECD hikes 2021 world growth forecast to 5.6% on vaccine, stimulus rollout

OECD hikes 2021 world growth forecast to 5.6% on vaccine, stimulus rollout
  • The “top policy priority” is to deploy vaccines as quickly as possible, to save lives as well as to speed economic recovery.

PARIS: The OECD sharply hiked its 2021 global growth forecast on Tuesday as the deployment of coronavirus vaccines and a huge US stimulus program greatly improve the economic prospects.
The Paris-based Organization for Economic Co-operation and Development said it now expects the global economy to grow 5.6 percent, an increase of 1.4 percentage points from its December forecast.
“Global economic prospects have improved markedly in recent months, helped by the gradual deployment of effective vaccines, announcements of additional fiscal support in some countries, and signs that economies are coping better with measures to suppress the virus,” it said in a report.
The recovery will be largely led by the United States thanks to President Joe Biden’s $1.9 trillion stimulus program, Laurence Boone, chief economist of the OECD, told AFP.
The OECD sees the US economy growing 6.5 percent this year, a very sharp increase of 3.3 percentage points on its previous forecast, with the world as a whole returning to pre-pandemic output levels by mid-2021.
But for the moment, only China, India and Turkey have surpassed pre-pandemic levels and the picture is very mixed elsewhere.
“Despite the improved global outlook, output and incomes in many countries will remain below the level expected prior to the pandemic at the end of 2022,” said the OECD, which groups the world’s most developed economies.
It said the “top policy priority” is to deploy vaccines as quickly as possible, to save lives as well as to speed economic recovery.
“There are huge and significant risks to our economic projections, most notably the pace of vaccination,” Boone told AFP.
“What we know is the faster countries vaccinate, the quicker they can reopen their economy,” she said.
Britain, which also has rolled out vaccines quickly, got a 0.9 percentage point increase to 5.1 percent — higher than the UK’s own forecast, which was lowered last week.
The eurozone, where vaccination campaigns have been slower, received only a 0.3 percentage point bump to 3.9 percent, as the recoveries in both Italy and France were revised lower.


Abu Dhabi opens region’s first COVID-19 test lab inside an airport

Abu Dhabi opens region’s first COVID-19 test lab inside an airport
Updated 40 min 29 sec ago

Abu Dhabi opens region’s first COVID-19 test lab inside an airport

Abu Dhabi opens region’s first COVID-19 test lab inside an airport
  • assengers arriving at Abu Dhabi International Airport through terminals 1 and 3 will be tested at the new facility
  • Results will be available in 90 minutes

DUBAI: Abu Dhabi is set to open the region’s first airport polymerase chain reaction (RT-PCR) testing laboratory for COVID-19.


The laboratory will be located within the Abu Dhabi International Airport (AUH), and will provide quick coronavirus test results in line with global travel standards.

“Through partnering with Pure Health and Tamouh Healthcare, Abu Dhabi International Airport is now able to offer travelers state-of-the-art rapid testing services delivered by a dedicated laboratory facility,” said Shareef Hashim Al-Hashmi, chief executive of Abu Dhabi Airports.

The move comes as airports around the world explore new ways to accelerate the revival of air travel demand, which was heavily affected by the COVID-19 pandemic.

“The introduction of the RT-PCR COVID-19 testing is a milestone achievement in our ongoing efforts to facilitate the safe resumption of international air travel and support the recovery of the aviation industry,” Al-Hashimi said.

The 4,000-square-meter testing site has the capacity to test more than 20,000 travelers per day, according to a release.

Passengers arriving at Abu Dhabi International Airport through terminals 1 and 3 will be tested at the new facility, where results will be shared via SMS, WhatsApp, and the Alhosn mobile application in 90 minutes.

Those who test negative and are coming from predetermined low-risk countries will not have to self-isolate. Otherwise, quarantine rules will apply – 10 days of self-isolation and mandatory use of quarantine wristband, which will be fitted at the facility.

Abu Dhabi Airports, the operator of AUH, earlier implemented safety mechanisms at the airport as it restores people’s confidence in traveling.

These airport enhancements include touchless elevator technology, thermal scanners with facial recognition capabilities, as well as sterilization tunnels.


Pandemic to stall UAE banks’ recovery in early 2021: A&M report

Pandemic to stall UAE banks’ recovery in early 2021: A&M report
Updated 56 min 45 sec ago

Pandemic to stall UAE banks’ recovery in early 2021: A&M report

Pandemic to stall UAE banks’ recovery in early 2021: A&M report
  • Growth in loans and advances during 2020 slowed sharply to 1.4 percent from 13.2 percent in 2019

DUBAI: The pandemic will continue to affect profitability for banks in the United Arabia Emirates (UAE) in the early quarters of 2021, after a sharp drop in return on equity last year, consulting firm Alvarez & Marsal (A&M) said on Tuesday.
Return on equity fell to 7.7 percent in 2020 from 13.3 percent the previous year, A&M said in a report on the UAE’s top 10 banks.
“We possibly have not turned the corner,” Asad Ahmed, head of Middle East financial services for A&M told a briefing, saying this goes for banks globally as well as in the UAE.
“In terms of the region and the UAE, 2021 will continue to be a year which does not produce stellar results, but hopefully next year onwards we will see the numbers turn around.”
Growth in loans and advances during 2020 slowed sharply to 1.4 percent from 13.2 percent in 2019, the report said.
2021 is expected to be less volatile than the past year, but banks might see a deterioration in their asset quality after the completion of the central bank’s stimulus scheme later this year, it said.
Total loan-loss provisions jumped 79 percent year-on-year to 28.1 billion dirhams ($7.65 billion) for the top 10 UAE banks last year, as a challenging economic environment and banks’ exposure to several high-profile cases boosted impairments, A&M said.
UAE banks have been hurt by their exposure to hospital operator NMC Health, which disclosed more than $4 billion in hidden debt after short-seller Muddy Waters questioned its financial reporting.
The hospital operator filed for administration in London in April last year.


Vodafone towers unit set for 14.7-bn euro valuation

Vodafone towers unit set for 14.7-bn euro valuation
Updated 09 March 2021

Vodafone towers unit set for 14.7-bn euro valuation

Vodafone towers unit set for 14.7-bn euro valuation

LONDON: British mobile phone giant Vodafone on Tuesday announced the price range for the upcoming German stock market flotation of its towers business, valuing the unit at up to 14.7 billion euros ($17.4 billion).
The float of up to one-quarter of Vantage Towers comes amid increasing demand for mobile telecommunications connectivity across Europe, driven by data growth, 5G roll-out and regulatory coverage obligations.
Mobile phone giants are also floating or selling off their tower businesses in order to slash debt.
German-headquartered Vantage Tower will have its first day of trading on the Frankfurt stock market on or around March 18, with a price-per-share range of between 22.5 euros and 29 euros, Vodafone said in a statement.
The initial public offering (IPO) “implies a total market capitalization for Vantage Towers of 11.4 billion euros to 14.7 billion euros,” it added.
Digital Colony, a digital infrastructure investor and operator based in the US, has agreed to be a cornerstone investor in the IPO, alongside RRJ, a global equity fund based in Singapore, with commitments of 500 million euros and 450 million euros, respectively.
“The Vantage Towers IPO is moving ahead at pace,” Vantage chief executive Vivek Badrinath said in the statement.
“Today’s price range announcement is accompanied by the news that two leading global investors have committed to cornerstone our IPO with the purchase of 950 million euros of shares at the offer price.”
Vantage Towers’ portfolio includes 82,000 macro sites — towers, masts and rooftops — across 10 European countries.
“Demand for data and connectivity across Europe is powering growth in the towers sector,” Badrinath said.
“Our superior grid and leading market positions mean we are well placed to benefit from this growth and our recent financial results highlighted the good commercial and operational momentum across the business,” he added.
Vodafone said it was targetting proceeds of up to 2.8 billion euros from the IPO, helping to reduce its debt pile.
Earlier this year, heavily-indebted Telefonica agreed to sell its telephone masts in Europe and Latin America to US-based telecom infrastructure firm American Towers for 7.7 billion euros.
The Spanish group said it would use the proceeds to cut debt by 4.6 billion euros.
Vodafone meanwhile rebounded into profit during the first half of its financial year, or six months to September.
During the same period a year earlier, the group had suffered a hefty loss after India’s Supreme Court ordered telecoms companies to pay long-standing licensing fees.