China moves to secure more supplies of Turkmen gas as domestic demand set to grow

China moves to secure more supplies of Turkmen gas as domestic demand set to grow
China is already the main export market for Turkmen gas with annual supplies reaching 40 billion cubic meters of gas. (Reuters)
Short Url
Updated 26 August 2021

China moves to secure more supplies of Turkmen gas as domestic demand set to grow

China moves to secure more supplies of Turkmen gas as domestic demand set to grow
  • Turkmengaz and China's CNPC restarted development work at three major wells at Turkmenistan's giant natural gas field Galkynysh

MOSCOW: China is searching for more natural gas sources from neighboring countries as the country, one of the world’s largest energy consumers, needs more of the relatively clean fuel to meet rising domestic demand.

On Aug. 23 the state-owned Turkmengaz and China’s CNPC held a ceremony marking the restart of development work at three major wells at Turkmenistan’s giant natural gas field Galkynysh, according to Nebit-Gaz, an Ashgabat-based Internet news portal.

When commissioned, each of three wells will have a daily output of three million cubic meters, adding about 10 percent to the field’s current potential output. Turkmenistan will pay CNPC for its services by supplying 17 billion cubic meters of gas a year for the period of three years to a total of 51 billion cubic meters, AP News said on Aug. 24.

A contract signed earlier in July this year between Turkmengaz and CNPC Chuanqing Drilling Engineering Company stipulated that the Chinese company should complete construction and commission the three extremely complex gas wells within 30 months in exchange for future gas supplies.

Initially, the development of the wells had begun back in 2007 under a contract signed with Gulf Oil & Gas FZE (U.A.E.). However, the work wasn’t completed, the Turkmenistan government said in a press release published on its website July 16.

FAST FACTS

China is already the main export market for Turkmen gas with annual supplies reaching 40 billion cubic meters of gas.

Analysts at Oxford Institute of Energy Studies said in a report issued their initial forecast of around 40 billion cubic meters of gas in incremental demand from China in 2021 is ‘likely to be easily surpassed.’

Currently, the Galkynysh field, which has an area of 4,000 sq km and 27 trillion cubic meters of estimated reserves, includes 45 wells with a daily flow rate of 2 million cubic meters each, according to Nebit-Gaz.

China is already the main export market for Turkmen gas with annual supplies reaching 40 billion cubic meters of gas, according to AP.

But demand for gas from China is far from being met. Analysts at Oxford Institute of Energy Studies (OIES) said in a report issued earlier this month their initial forecast of around 40 billion cubic meters of gas in incremental demand from China in 2021 is “likely to be easily surpassed.”

“Although ongoing reforms in the power sector to encourage the use of renewables, given China’s focus on reliability in power supplies, gas consumption is likely to grow strongly again next year, possibly by some 30 billion cubic meters,” the report said.

In 2019, China gas demand reached 300 billion cubic meters and by 2022 it could be close to 400 billion cubic meters, according to OIES estimates.


Over 170 companies delisted from major US stock exchanges in a year, says report

Over 170 companies delisted from major US stock exchanges in a year, says report
Updated 07 December 2021

Over 170 companies delisted from major US stock exchanges in a year, says report

Over 170 companies delisted from major US stock exchanges in a year, says report

RIYADH: Major US stock exchanges delisted 179 companies between 2020 and 2021, according to a report carried by Finbold.com.

Citing data the report said in 2021, the number of companies on Nasdaq and the New York Stock Exchange stands at 6,000, dropping 2.89 percent from last year’s figure of 6,179. In 2019, the listed companies stood at 5,454.

“NYSE recorded the highest delisting with companies on the platform, dropping 15.28 percent year-over-year from 2,873 to 2,434. Elsewhere, Nasdaq listed companies grew 7.86 percent from 3,306 to 3,566,” it added.

As of 2021, it said, Nasdaq had 2,819 listed domestic companies, while foreign entities stood at 747. NYSE accounts for 1,848 domestic companies, with the foreign entities standing at 586.

The report attributed the delisting to the emergence of alternative markets.

"Furthermore, the delisting on US major exchanges might be due to the emergence of new alternative markets, especially in Asia. China and Hong Kong markets have become more appealing, with regulators making local listings more attractive. Over the years, exchanges in the region have strived to emerge as key players amid dominance by US equity markets."

It, however, said the number of foreign companies listing on US exchanges also surged. 


Qatar approves its budget, expects to revenue to rise by 22.1%

Qatar approves its budget, expects to revenue to rise by 22.1%
Updated 07 December 2021

Qatar approves its budget, expects to revenue to rise by 22.1%

Qatar approves its budget, expects to revenue to rise by 22.1%

Qatar has approved its budget for the 2022 fiscal year, the country’s Minister of Finance Ali Al Kuwari said in a press conference on Tuesday.

Revenues are expected to amount to 196 billion riyals ($53.8 billion), a 22.4 percent rise compared to last year’s budget estimates, Asharq reported. 

Estimates for the budget were made while assuming oil prices to be $55 per barrel during the year on the back of healthier global energy prices.

Additionally, expenditures are predicted to hit 204.3 billion riyals, growing by an annual rate of 4.9 percent.

This will lead to a budget deficit of 8.3 billion riyals. Al Kuwari added that this deficit will be addressed through current monetary balances and the issuance of local and foreign debt instruments if needed.

EU’s economy

Output in the EU expanded by a quarterly rate of 2.1 percent in this year’s third quarter, according to preliminary estimates by Eurostat. 

Austria experienced the highest rise in activity, recording an economic growth rate of 3.9 percent. France and Portugal came next, as their economies widened by 3 percent and 2.9 percent, respectively.

Household consumption mainly drove the production’s rise in the region, going up by 4 percent, accelerating from the previous quarter’s 3.7 percent expansion. 

Government final consumption expenditure climbed by 0.3 percent while gross fixed capital formation declined by 0.6 percent.

Meanwhile, employment growth reached 0.9 percent in the third quarter of 2021 when compared to the previous quarter.

In addition, the euro area’s Indicator of Economic Sentiment improved by 0.9 points in December to hit 26.8 points, Zew, a Germany economic policy institute, said. 

However, the outlook was different for Germany, as its sentiment indicator fell by 1.8 points to reach 29.9 points. Deteriorations caused by the pandemic, as well as supply chain disruptions, are dragging the German economy down, the Mannheim-based firm noted.

Economic expectations also fell, signalling that forecasts about healthy short-term growth are not gaining momentum.

Moreover, the country’s industrial production went up by a monthly rate of 2.8 percent in October, preliminary estimates by Germany’s Federal Statistics Office showed.

In particular, production of capital goods widened by 8.2 percent while output of intermediate goods dropped by 0.4 percent.

Japan’s household spending

Household spending in Japan continued to fall, on an annual basis, for the third month in a row. This was attributed to weak consumer sentiment that is still recovering from the pandemic.

Spending by the sector dropped by a yearly rate of 0.6 percent in October, compared to a 1.9 percent fall in the previous month.

The country’s government recently introduced a $490 billion stimulus package to boost the economy, unlike other countries that are starting to roll back on their spending programs, Reuters reported.

Australia’s monetary policy

Australia’s central bank maintained its monetary policy and interest rate unchanged. The decision was driven by concerns over omicron, the new coronavirus variant.

The country’s interest rate remained at 0.1 percent, according to Bloomberg. The bank noted that it will raise interest rates when inflation reaches its target of 2-3 percent.

The bank added that the labor market and economy are experiencing upturns.

China’s trade

Exports and imports in China grew annually by 22 percent and 32 percent in November when compared to a year earlier, reaching all-time records.

Yet, exports growth slowed down due to a thinning demand and a rise in costs.


Yemeni rial bounces back as central bank restructured

Yemeni rial bounces back as central bank restructured
Updated 07 December 2021

Yemeni rial bounces back as central bank restructured

Yemeni rial bounces back as central bank restructured

AL-MUKALLA: The Yemeni rial recovered on Tuesday by roughly 30 percent hours after the Yemeni president reshuffled the country’s central bank board in a bid to rein in the rapid currency devaluation. 

Local moneychangers told Arab News that the Yemeni rial began bouncing back on Monday night when President Abed Rabbo Mansour Hadi dismissed the governor of the Aden-based central bank and his deputy. 

By Tuesday morning, the Yemeni currency rose from 1,700 to 1,100 against the dollar before dropping again to 1,250 in the afternoon. 

The rial has rapidly tumbled during the past couple of weeks, reaching a historic record low of 1,750 this week, compared to 215 in early 2015. 

Yemen’s president appointed Ahmed bin Ahmed Ghaleb as the new governor and head of the central bank’s administrative board. Mohammed Omer Banaja was appointed his deputy. 

The official news agency reported that the president authorized the Central Agency for Control and Accountability to monitor the bank’s current and previous financial activities. 

Four previous central bank chiefs, all appointed Hadi, failed to prevent the rial’s plunge despite their expertise and strong educational backgrounds.

The central bank had closed dozens of exchange firms and shops that violated the bank’s monetary rules and were involved in speculative activities on foreign currency. The central bank also ordered banks in the Houthi-controlled areas to move offices and operations to Aden, or face punitive measures and provided fuel and food importers with dollars. The rial continued losing value against the dollar, as several blacklisted firms and banks continued operations  in the Houthi-controlled Sanaa.

Mustafa Nasr, director of the Economic Media Center, has urged local and international support to the bank’s new administration to succeed in putting into place economic policies and also demanded resuming the flow of oil and gas exports and reviving money-generating state bodies. “

Richard Oppenheim, British ambassador to Yemen, said the reshuffle of the bank’s administrative board would help the Yemeni government carry out vital reforms to steady the economy.


Bezos donates $443m to fight climate change 

Bezos donates $443m to fight climate change 
Updated 07 December 2021

Bezos donates $443m to fight climate change 

Bezos donates $443m to fight climate change 

JEDDAH: Jeff Bezos has handed over $443 million to climate organizations as part of his $10 billion commitment to tackle global warming.

About $130 million is allocated to help the Justice40 initiative, an environmentally focused effort by President Joe Biden’s administration, according to Bloomberg.

Another $261 million will fund a plan to protect 30 percent of land and sea by 2030, concentrating on the Congo Basin and tropical Andes. 

The world’s second-richest person gave out $791 million to 16 organizations last year, promising to distribute the full $10 billion amount by 2030, Bloomberg reported.


UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 
Updated 07 December 2021

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

UAE’s Chimera invests $100m in Egyptian billionaire Naguib Sawiris’ Gemini 

RIYADH: Egyptian billionaire Naguib Sawiris has announced a $100 million deal with Abu Dhabi’s Chimera for investment in Egypt’s real estate.

Through its subsidiary, Chimera subscribed to a capital increase in Egypt’s Gemini Global Development in return for acquiring a minority stake in the company, Asharq reported.

This capital increase aims to develop and expand the real estate activities of Gemini Global Development Egypt through Ora Developers.

Naguib Sawiris said Ora Developers has always aimed to search for opportunities that expand their offerings to a larger base of customers in various markets, while partnering with global investors, contractors and retailers. 

“Through this partnership, Chimera continues to grow and further enhance its global portfolio by investing in a prominent player operating in a high growth sector in Egypt,” Chimera Chairman Syed Basar Shueb said.