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)
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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.


Egypt aiming to triple exports to Africa by 2025, says minister

Egypt aiming to triple exports to Africa by 2025, says minister
Updated 11 sec ago

Egypt aiming to triple exports to Africa by 2025, says minister

Egypt aiming to triple exports to Africa by 2025, says minister

RIYADH: Egypt is planning to increase exports to Africa from $5 billion a year to up to $15 billion over the next four years, Egyptian Minister of Planning and Economic Development Hala Al-Saeed has said.

The minister said in an interview with Asharq that Egypt is working on a strategy to increase total global exports to $100 billion annually.

Al-Saeed also said that her country is currently studying the needs of the African markets from outside the continent and focusing on Egypt's export-distinct sectors of engineering, textiles, pharmaceuticals and agricultural crops.

These supported Egypt's export growth during the third quarter of 2021.

Egypt is contributing to promoting commercial ties between Common Market for Eastern and Southern Africa member states.

This requires studying competitive factors for competitive commodity prices, including the cost of transportation and trade-supporting logistics networks, the minister said.


Higher taxes threaten NYC status as global business hub: Goldman Sachs


Higher taxes threaten NYC status as global business hub: Goldman Sachs

Updated 2 min 41 sec ago

Higher taxes threaten NYC status as global business hub: Goldman Sachs


Higher taxes threaten NYC status as global business hub: Goldman Sachs


RIYADH: David Solomon, CEO of Goldman Sachs, has warned New York City leaders that higher taxes will make the city less attractive to businesses and their employees.

“New York is not going away” but cautioned that “it’s also not guaranteed for any urban center that you have a permanent place in the world,” the Financial Times quoted him as saying.

Talking to the newspaper on the sidelines of the Global Banking Summit, Solomon said COVID-19 has moved the city’s residents toward lower-tax states, as New Yorkers pay some of the highest tax rates in the US.

The top personal income tax rate for state residents would rise further to 66.2 percent under the latest version of President Joe Biden’s Build Back Better legislation.

“New York has to be aware that there are good choices, and it’s got to make sure it keeps itself super-attractive,” Solomon said. “At the end of the day, incentives matter, taxes matter, cost of living matters,” he added.


300-fold hike in mobile data traffic over 10 years: Ericsson

300-fold hike in mobile data traffic over 10 years: Ericsson
Updated 41 min 9 sec ago

300-fold hike in mobile data traffic over 10 years: Ericsson

300-fold hike in mobile data traffic over 10 years: Ericsson

RIYADH: The telecommunication company Ericsson revealed an almost 300-fold increase in mobile data traffic over the past ten years in its November mobility report. 

The report examines the key trends that shaped the last decade and reveals its forecasts toward 2027. 

Mobile network data traffic increased by 42 percent year-on-year in the third quarter of 2021. 

5G mobile is expected to reach around 660 million subscriptions by the end of 2021, with a stronger demand in China and North America due to declining prices of compatible devices.  

The forecasts show that 5G is predicted to amount to around 50 percent of global mobile subscriptions by 2027, carrying 62 percent of the worldwide smartphone traffic. 

“When we look ahead to 2027, mobile networks will be more integral than ever to how we interact, live and work,” Ericsson’s Executive Vice President and Head of Networks Fredrik Jejdling said. 

“Our latest Ericsson Mobility Report shows that the pace of change is accelerating, with technology playing a crucial role,” he added.


NADEC consortium completes Second Milling Company acquisition

NADEC consortium completes Second Milling Company acquisition
Image: Shutterstock
Updated 58 min 33 sec ago

NADEC consortium completes Second Milling Company acquisition

NADEC consortium completes Second Milling Company acquisition
  • All assets of the Second Milling Company were transferred to the Food Security Holding Company

RIYADH: The National Agricultural Development Company, NADEC completed the acquisition of Second Milling Company in Riyadh.

NADEC was part of a consortium with Olam International Group, Al Rajhi International Investment Company Ajlan & Bros Company, according to a bourse filing,

All assets of the Second Milling Company were transferred to the Food Security Holding Company, a limited liability company, the company said in a statement on the Saudi Stock Exchange.

This comes as the Kingdom is accelerating plans to privatize key infrastructure.


NADEC owns a 10 percent minority stake with liability in an agreement governing its purchase of specific products from the Second Milling Company.

NADEC will also provide management, marketing and support services to the Second Milling Company.


Egyptian fintech Raseedi raises $850k in pre-Series A round

Egyptian fintech Raseedi raises $850k in pre-Series A round
Updated 01 December 2021

Egyptian fintech Raseedi raises $850k in pre-Series A round

Egyptian fintech Raseedi raises $850k in pre-Series A round

RIYADH: Raseedi has secured $850,000 in a pre-Series A round from the Japanese venture capital firm Samurai Incubate and an European investor, Wamda reported. 

The Cairo-based fintech, founded in 2018, helps dual SIM smartphone users in Egypt to optimize their telecom spending through its mobile app. 

“We’ve always been a super lean tech startup. We only spend on people and tech, never on assets or operations. Our goal is to create this daily product that relies completely on technology with zero dependency on any on-ground operation,” Raseedi’s co-founder and Chief Operations Officer Samuel Samy said. 

“It’s been going great for us with 13,000 reviews of 4.3 stars on the Google Play store, yet the bigger challenge comes with our next scaling milestone, 100 million monthly visits from 1m monthly active users,” he added.