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 signs deal with Nokia to build IoT infrastructure

Egypt signs deal with Nokia to build IoT infrastructure
Updated 9 sec ago

Egypt signs deal with Nokia to build IoT infrastructure

Egypt signs deal with Nokia to build IoT infrastructure

CAIRO: Egyptian Minister of Communications and IT Amr Talaat oversaw the signing of a deal between Telecom Egypt and Nokia International to build Internet of Things infrastructure in the country.

The ministry said Telecom Egypt’s network enables the provision IoT services to companies on a global scale, based on Nokia’s multi-service model. 

The agreement will contribute to the automation of projects and help companies reduce their operating expenses, enhance productivity, and provide new services to markets faster.

It includes establishment of a global IoT infrastructure and a Pay As You Grow business model, and Nokia will enable Telecom Egypt to provide IoT services at low prices.

The deal was signed by Adel Hamed, managing director and CEO of Telecom Egypt, and Henrik Fall, head of cloud services and networks in the Middle East and Africa at Nokia.

Talaat attended the sining ceremony during his visit to Dubai to attend the 41st GITEX Global Exhibition and Conference.

He also met Ram Ramachandran, senior vice president and head of Middle East and Africa for Tech Mahindra. Tech Mahindra is an Indian multinational subsidiary of the Mahindra Group.

The Egyptian minister discussed ways to increase Tech Mahindra’s contribution to the digital transformation of Egypt.


TASI down by 0.1% as petrochemicals fall: Market wrap

TASI down by 0.1% as petrochemicals fall: Market wrap
Updated 4 min 22 sec ago

TASI down by 0.1% as petrochemicals fall: Market wrap

TASI down by 0.1% as petrochemicals fall: Market wrap

RIYADH: The Tadawul All Share Index declined on Monday by 0.1 percent, or 15 points, to 11.758 points. 

Petrochemical shares, led by SABIC falling by 1.5 percent, pushed the market down.

Some 193.5 million of shares changed hands in 337.000 deals, with heavy trading in ACWA Power, Kayan, and SABIC. 

Yansab's share fell by 4.8 percent, after the company announced a decline in its Q3 profits  by more than 8 percent. 

Leejam also recorded the highest close since listing at SR106.80.

Other News: 

Arabian Centers and Fawaz Al Hokair companies announced an agreement to acquire 51 percent of an e-commerce platform, VogaCloset, at a value of SR138 million.

VogaCloset also transferred 25.5 percent of its share capital to Arabian Centers Company, following a capital increase .

However, insurance companies topped the gains today, led by Arabia Insurance reaching SR41.60.

Amana Insurance, Saudi Enaya and Salamarose gained between 5 percent, and 9 percent. 

Saudi Arabia’s parallel stock market index, Nomu, gained 228.70 points, down by 0.95 percent, closing at 23,835.75 points. 


TotalEnergies opens UK offshore wind hub in North Sea oil, gas center

TotalEnergies opens UK offshore wind hub in North Sea oil, gas center
Updated 25 min 59 sec ago

TotalEnergies opens UK offshore wind hub in North Sea oil, gas center

TotalEnergies opens UK offshore wind hub in North Sea oil, gas center
  • The energy firm also announced a £140 million investment in a 2 gigawatt offshore wind project in the west of Orkney

Enregy company TotalEnergies has opened an offshore wind hub in Scotland that will allow the “transition of staff from oil and gas to offshore wind” as the green sector grows, the French energy major said in a statement.

The unit will sit inside the firm’s existing Aberdeen center for UK North Sea oil and gas, and will draw on operations that have been “built over the last 50 years” at the site.

TotalEnergies chairman and chief executive Patrick Pouyanné said in the statement: “With the energy transition gathering speed, we see Scotland as a great place to broaden our relationship by investing in offshore wind.

“As a global multi-energy company long engaged in UK energy supply, our decision to base our UK offshore wind hub here in Aberdeen is a mark of our confidence in the future of renewables in the UK and our continued commitment to Scotland and the North Sea.”

TotalEnergies, formerly Total, also announced a £140 million investment in a 2 gigawatt offshore wind project called West of Orkney Windfarm. Australian bank Macquarie’s Green Investment Group and Scottish developer Renewable Infrastructure Development Group are also partners in the wind farm.

TotalEnergies said the three firms will “develop the Scottish supply chain and harbour infrastructure specifically around this project”.

The energy major purchased a majority stake in another large wind farm off the coast of Scotland last year, with expectations that global oil demand will peak before 2030, due to the low-carbon energy shift, reported Bloomberg News.

The firm has upped its stakes in renewable energy assets across the UK recently.

The French firm also invested in a smaller floating-wind project in Wales, Bloomberg said.

Also, in February, TotalEnergies again partnered with Macquarie’s Green Investment Group to win the rights to develop a 1.5 gigawatt offshore wind farm off the coast of Lincolnshire, England.


Saudi SMEs have raised $267m from crowdfunding: Saudi Capital Market Authority 

Saudi SMEs have raised $267m from crowdfunding: Saudi Capital Market Authority 
Updated 42 min 46 sec ago

Saudi SMEs have raised $267m from crowdfunding: Saudi Capital Market Authority 

Saudi SMEs have raised $267m from crowdfunding: Saudi Capital Market Authority 

Saudi SMEs have raised SR100 million so far this year through crowdfunding, Mohammed Al-Quwaiz, Saudi Capital Market Authority president at the General Authority for Small and Medium Enterprises (Monsha’at) has revealed.

“In the current year, from the beginning of the year to the middle of the year, crowdfunding platforms collected about SR100 million, all of which are for entrepreneurial companies. It's possible that a record was made when a company got financed within 10 minutes in terms of the time required to raise funding,” Al-Quwaiz said in a finance lecture.

“I saw a number of colleagues working on some crowdfunding platforms. This platform has become an important tool for financing companies specifically based on property rights or shares that are more compatible with the nature of entrepreneurial projects or debt instruments in a later period,” he said.

He said on the financing side most businesspeople think about bank financing first, which often serves the entrepreneurial companies.

“The other traditional method of financing, if a project is in its first stages, it requires funding from family and friends, and the main added value at this stage was to keep the regulatory authorities away from this issue significantly,” he said.


UAE space center launches startup incubator

UAE space center launches startup incubator
Updated 18 October 2021

UAE space center launches startup incubator

UAE space center launches startup incubator
  • The launchpad, as the UAE firm describes it, will allow businesses to collaborate with it on long-term projects and to have access to technology and support.

CAIRO: The Mohammed Bin Rashid Space Centre (MBRSC) has launched a startup incubator for entrepreneurs in the space technology sector. 

The launchpad, as the UAE firm describes it, will allow businesses to collaborate with it on long-term projects and to have access to technology and support.

“The UAE space sector is looking to further expand its horizon and create a new space economy landscape in the country through a self-sustaining space ecosystem,” MBRSC Director General Yousuf Al-Shaibani said. 

He added this is “only possible through partnerships with ambitious companies focused on emerging trends in the upstream and downstream areas of the space sector.”