Gazprom natural gas plant hit by fire easing back into operation

Gazprom natural gas plant hit by fire easing back into operation
FFirefighters spead water on a fire at a Gazprom gas condensate plant near the city of Novy Urengoy in Western Siberia. (AFP)
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Updated 09 August 2021

Gazprom natural gas plant hit by fire easing back into operation

Gazprom natural gas plant hit by fire easing back into operation
  • Fire at Novy Urengoy plant caused gas prices to rise on global markets

MOSCOW: Gazprom is gradually resuming supply of feedstock to the gas condensate plant in Novy Urengoy after a fire broke out last Thursday at a condensate preparation plant, Interfax has said, citing a press release from the Russian energy giant.

The plant is part of the Urengoy gas production complex that processes unstable gas condensate from the largest fields in the Nadym-Pur-Taz region, Russia’s main gas province.

The process of stabilizing the condensate produced together with natural gas is linked inseparably with gas production, meaning that the fire caused the Novy Urengoy plant to completely stop accepting raw materials.

It led to a decrease in Gazprom’s gas production by tens of millions of cubic meters per day, according to Interfax.

The accident has caused concerns over the effect it might have on Gazprom gas supplies via the Yamal-Europe pipeline, sending natural gas prices above $540 per thousand cubic meters at trading (Dutch TTF) in Europe on Aug. 6.

The capacity of the Yamal-Europe pipeline is 33 billion cubic meters a year, which works out to about 16 percent of Gazproms’s 2021 total gas supplies to EU, which were estimated at 202 billion cubic meters, according to Kirill Bakhtin, an oil and gas analyst at Moscow-based Sinara Financial Group.

Physical transit via the Yamal-Europe gas pipeline decreased by a further 3 percent on Sunday, dropping from 1.5 million cubic meters per hour to 1.4 million cubic meters her hour, Interfax said on Aug. 9, citing data provided by German transport network operator Gascade.

Analysts are cautious in their opinions regarding the extent of possible impact on Gazprom gas supplies to Europe, and are waiting for further details from the company about the damage caused by the fire.

“We understand most of the short-term impact will be on gas condensate output,” analysts at Renaissance Capital wrote in a note published Aug. 6. “In this scenario, we estimate Gazprom may lose an annualized production volume of about 5 millions tonnes of gas condensate (reflecting 29 percent of our 2021 estimate), and about 8 billion cubic meters of natural gas (2 percent of our estimated 2021 gas output and 4 percent of our 2021 gas export volumes estimate).”

In a note published on the same day, Goldman Sachs analysts said: “We think that the implications are not material given that the gas production volumes that might be lost as a result of the accident can be compensated by higher production at other fields and Russian gas in storage. Hence, we believe that gas sales volumes would be largely unaffected by this accident.”

In what seems to be a similar approach, Bakhtin of Sinara Financial Group said in an Aug. 9 note: “We think that Gazprom’s gas exports from Yamal were reduced as a temporary precaution and will be restored shortly, since the fire allegedly damaged the de-ethanization facility used for the preparation of gas condensate. The main question now is how the accident will affect Gazprom’s gas condensate production chain. Without any comments from the company on the actual damage caused by the fire, it is not possible to accurately estimate the timing of the resumption of liquid and gas supplies in full.”


Dubai’s DIFC regulator issues first part of digital assets framework

Dubai’s DIFC regulator issues first part of digital assets framework
Updated 5 sec ago

Dubai’s DIFC regulator issues first part of digital assets framework

Dubai’s DIFC regulator issues first part of digital assets framework

DUBAI: The regulator for DIFC, Dubai’s state-owned financial free zone and the Middle East’s major finance center, has released the first part of a regulatory framework for digital tokens aimed at opening up trading of the fast-growing asset class.

The move by the Dubai Financial Services Authority comes as Gulf countries start to look at how to regulate digital assets to attract new forms of business as regional economic competition heats up.

The framework initially covers security and derivative tokens it refers to as investment tokens — digital representations of rights and obligations equivalent to those conferred by assets such as shares or futures contracts, issued, transferred and stored using distributed ledger technology such as blockchain.

It expects to issue another consultation this year for tokens not yet covered by the regulation, including exchange tokens — also known as cryptocurrencies — utility tokens and some asset-backed tokens known as stablecoins.

Last month, the UAE’s Securities and Commodities Authority and the Dubai World Trade Centre Authority agreed a framework that allows DWTCA to approve and license financial activities relating to crypto assets.

 Bahrain in 2019 released rules regulating crypto assets. 


Customer demand for quick delivery is huge challenge for retailers, warns CEOs

Customer demand for quick delivery is huge challenge for retailers, warns CEOs
Updated 24 min 32 sec ago

Customer demand for quick delivery is huge challenge for retailers, warns CEOs

Customer demand for quick delivery is huge challenge for retailers, warns CEOs

Customer demand for fast delivery of products is one of the biggest challenges facing companies today, according to retail group leaders.

Speaking at the Future Investment Initiative Forum in Riyadh, heads of major firms set out how pandemic-caused changes in shopping behavior, together with developments in technology, has shifted expectations from consumers.

Yusuf Ali, chairman of Abu Dhabi-based Lulu Group International, told delegates that e-commerce was not growing in the Gulf region before Covid-19 swept the globe, but now the picture is different and his company “will increase e-commerce platforms”. 

John Hadden, CEO of Alshaya Group, headquartered in Kuwait, highlighted food and beverage deliveries as an area changed by the pandemic.

“The new challenge is how to get the right products to the consumers as quickly as possible,” he said.

The head of online marketplace Noon.com warned that customers now expect small grocery deliveries within 20 minutes, adding: “Buyers’ desire to get orders quickly is increasing and this is the challenge for companies.”


Winning technical advice bidder for Saudi nuclear power program to be named soon: CNBC Arabia

Winning technical advice bidder for Saudi nuclear power program to be named soon: CNBC Arabia
Nuclear power plant Baden-Wuerttemberg, Germany. Getty Images
Updated 49 min 4 sec ago

Winning technical advice bidder for Saudi nuclear power program to be named soon: CNBC Arabia

Winning technical advice bidder for Saudi nuclear power program to be named soon: CNBC Arabia
  • EY may be the closest to winning the deal after offering the lowest price among advanced companies

RIYADH: Saudi Arabia is about to determine the winner of the presentation of the technical advice bid for its first nuclear power program, Banking sources told CNBC Arabia.

King Abdullah City for Atomic and Renewable Energy, the government agency responsible for implementing the Saudi nuclear program, has been studying the offers from four bidders, Deloitte, EY, HSBC, and PwC.

EY may be the closest to winning the deal after offering the lowest price among advanced companies, sources added.

Saudi Arabia intends to become a leader in renewable energy by building 16 nuclear reactors by 2030, estimated to cost more than $100 billion with a combined capacity of 22GW.


FII: MISA says investment in jobs and supply chains secure pandemic growth

FII: MISA says investment in jobs and supply chains secure pandemic growth
Getty Images
Updated 26 October 2021

FII: MISA says investment in jobs and supply chains secure pandemic growth

FII: MISA says investment in jobs and supply chains secure pandemic growth
  • Last month, the Kingdom forecast economic growth of 2.6% this year and 7.5% in 2022


RIYADH: Saudi Arabia’s Minister of Investment Khalid Al-Falih said the Kingdom put maintaining jobs and securing supply chains as one of its top priorities during the height of the pandemic, reported Argaam.

Speaking at the Future Investment Initiative in Riyadh he added that the Kingdom’s economy was able to remain flexible and grow as the health crisis eased.

The Minister said: “The pandemic came as a shock to the business enterprise sector; it taught us different lessons in various fields.”

Last month, the Kingdom forecast economic growth of 2.6% this year and 7.5% in 2022, in a pre-Budget statement, after a 4.1% contraction in 2020.


UPS Q3 earnings beat estimates as revenue grows 9%

UPS Q3 earnings beat estimates as revenue grows 9%
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Updated 26 October 2021

UPS Q3 earnings beat estimates as revenue grows 9%

UPS Q3 earnings beat estimates as revenue grows 9%
  • The results exceeded Wall Street expectations

United Parcel Service Inc. on Tuesday reported third-quarter profit of $2.33 billion.


On a per-share basis, the Atlanta-based company said it had profit of $2.65. Earnings, adjusted for non-recurring costs, were $2.71 per share.


The results exceeded Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $2.52 per share.


The package delivery service posted revenue of $23.18 billion in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $22.61 billion.