Indian energy companies mull investments in Novatek’s Arctic LNG 2

Indian energy companies mull investments in Novatek’s Arctic LNG 2
A stake sale would be positive news for Novatek in terms of developing long-term cooperation with Indian buyers, said analysts at Moscow-based Sinara Financial Group. (Reuters)
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Updated 09 September 2021

Indian energy companies mull investments in Novatek’s Arctic LNG 2

Indian energy companies mull investments in Novatek’s Arctic LNG 2
  • Sale of 9.9 percent stake being discussed

MOSCOW: India’s minister of oil and natural gas Hardeep Singh Puri discussed the possibility of LNG purchases from Russia along with acquisition of a stake in Novatek’s Arctic LNG 2 project during his visit to Vladivostok last week.

“Everything (all options) is on the table,” Puri said in response to a question on whether the purchase of gas or also the entry into the share capital of Arctic LNG 2 is being discussed. Puri told reporters Indian companies held talks with Novatek, and the offer to purchase the shares was received “recently,” the Indian minister said, according to Interfax.

The Indian companies are probably the consortium of ONGC and Petronet LNG, according to media reports.

A representative of the Indian delegation, involved in the negotiations, who wished to remain anonymous, confirmed to reporters that they were discussing the purchase of a 9.9 percent stake in Arctic LNG 2 from Novatek, but a decision has not yet been made, according to Interfax.

“The sale of a 9.9 percent interest at a decent price would be positive news for Novatek in terms of developing long-term cooperation with Indian buyers,” analysts at Moscow-based Sinara Financial Group said in a Sept. 7 note.

In March 2019, Total Group acquired a 10 percent interest in Arctic LNG 2 and joint control over the entity upon closing the transaction for a total consideration of RUB 161.8 billion ($2.5 billion).

“In the event of a deal, Novatek will retain its 50.1 percent stake in Arctic LNG 2, as it now has in Yamal LNG, and should get a high price, given very solid current gas quotes on international markets and the fact that the Arctic LNG 2 consortium was formed back in the first half of 2019, prior to the final investment decision on the project,” the Sinara analysts said.


Amazon investing in 274 renewable energy projects globally, adds 18 new projects in Europe and US

Amazon investing in 274 renewable energy projects globally, adds 18 new projects in Europe and US
Image: Shutterstock
Updated 13 sec ago

Amazon investing in 274 renewable energy projects globally, adds 18 new projects in Europe and US

Amazon investing in 274 renewable energy projects globally, adds 18 new projects in Europe and US
  • The projects will supply renewable energy for Amazon’s corporate offices, fulfillment centers, and Amazon Web Services (AWS) data centers

Amazon today announced 18 new utility-scale wind and solar energy projects across the US, Finland, Germany, Italy, Spain, and the UK, totaling 5.6 gigawatts (GW) of procured capacity to date in 2021.

Amazon now has 274 renewable energy projects globally and is on a path to power 100 percent of its business operations with renewable energy by 2025 — five years earlier than its original 2030 commitment.


These new utility-scale wind and solar projects bring Amazon’s total committed renewable electricity production capacity to more than 12 GW and 33,700 gigawatt hours (GWh) when the projects become fully operational, or electricity output equivalent to powering more than 3 million US homes for a year.

The projects will supply renewable energy for Amazon’s corporate offices, fulfillment centers, and Amazon Web Services (AWS) data centers that support millions of customers globally.

The projects will also help Amazon meet its commitment to produce the clean energy equivalent of the electricity used by all consumer Echo devices.

The amount of clean energy produced by these projects will avoid the equivalent of the annual emissions of nearly 3 million cars in the US each year, or about 13.7 million metric tons.


“We are moving quickly and deliberately to reduce our carbon emissions and address the climate crisis,” said Kara Hurst, vice president of worldwide sustainability at Amazon.

“Significant investments in renewable energy globally are an important step in delivering on The Climate Pledge, our commitment to reach net-zero carbon by 2040, 10 years ahead of the Paris Agreement.

Renewable energy projects also bring new investment, green jobs, and advance the decarbonization of the electricity systems in communities around the world.”


Following today’s announcement, Amazon is the largest corporate buyer of renewable energy in the world, with 274 global projects including 105 utility-scale wind and solar projects and 169 solar rooftops on facilities and stores worldwide. 


“Amazon is wasting no time demonstrating that they are fully committed to a clean energy future for all,” said Gregory Wetstone, CEO of the American Council on Renewable Energy.

“At COP26, the world agreed we needed bigger and bolder ambitions around global carbon reduction from all sectors. With hundreds of renewable energy projects already underway, Amazon is a model for the level of urgency and action we need from the private sector to combat the climate crisis.”


“Large-scale clean energy investments like these benefit us all and should be the new normal for industries of all shapes and sizes. They bring good-paying, green jobs to local communities and support progress toward our community’s goal of a 90 percent carbon-free US electricity system, said Miranda Ballentine, CEO of Clean Energy Buyers Association (CEBA).”


“Amazon’s procurement of 12 GW of renewable energy capacity globally is a strong testament to the company’s commitment to reaching net-zero carbon by 2040,” said Hannah Hunt, impact director at RE-Source, a corporate renewable energy sourcing platform in Europe.

“The company’s 10 new renewable energy operations across Europe will benefit communities, bring new green jobs, and help meet our commitments to curb the climate crisis.”


Saudi leading online food delivery platform Jahez to list on Parallel Market Nomu

Saudi leading online food delivery platform Jahez to list on Parallel Market Nomu
Updated 7 min 36 sec ago

Saudi leading online food delivery platform Jahez to list on Parallel Market Nomu

Saudi leading online food delivery platform Jahez to list on Parallel Market Nomu

RIYADH: Jahez International Co. for Information Systems Technology, the Saudi leading online food delivery platform also known as Jahez, intends to proceed with IPO and list its ordinary shares on the Saudi Parallel Market, Nomu, according to a statement.

The Capital Market Authority approved on September 29, the Group’s application for the IPO of 1,363,934 shares, representing 13 percent of the Group’s share capital post-listing.

The final price for the shares to be announced at the end of the book-building period. 

Jahez is a homegrown Saudi business that utilizes disruptive technology to connect over 1.3 million active users with its platform’s network that includes over 12,000 merchant branches and more than 34,000 delivery partners in 47 cities across Saudi Arabia as of March 31st, 2021. 

 


Al Rajhi Capital expects a budget surplus for Saudi Arabia in 2022

Al Rajhi Capital expects a budget surplus for Saudi Arabia in 2022
Updated 4 min 24 sec ago

Al Rajhi Capital expects a budget surplus for Saudi Arabia in 2022

Al Rajhi Capital expects a budget surplus for Saudi Arabia in 2022

Saudi Arabia is set for a fiscal surplus of around SR25-SR45 billion ($6.7-$12 billion) in 2022, according to a report from investment bank Al Rajhi Capital.

The Saudi-based firm said government revenues could amount to around SR1 trillion in 2022, made up of SR600 billion in oil revenues and about SR380-SR400 billion in non-oil revenues. 

This forecast goes against that made by the Saudi Ministry of Finance, which expects a deficit of SR52 billion, as shown in its pre-budget statement for 2022.

The ministry’s forecast for revenues was a lower SR903 billion, inducing their expected deficit.

Al Rajhi Capital assumed the same value of expenditures as the ministry, valued at SR955 billion.

Jadwa Investment, another investment bank in the Kingdom, had almost the same forecasts for oil and non-oil revenues, as well as expenditures, for 2022. Its budget surplus expectation was also similar at SR35 billion.

Al Rajhi Capital also said that VAT rates are likely to remain unchanged.

The Ministry of Finance is set to publish its budget statement for 2022 in December.


Red Sea International rises 4% on Baker Hughes deal, TASI up amid omicron fears: Market Opening

Red Sea International rises 4% on Baker Hughes deal, TASI up amid omicron fears: Market Opening
Updated 16 min 51 sec ago

Red Sea International rises 4% on Baker Hughes deal, TASI up amid omicron fears: Market Opening

Red Sea International rises 4% on Baker Hughes deal, TASI up amid omicron fears: Market Opening

RIYADH: The shares of Red Sea International Co.'s rose by four percent at 10:55 Riyadh after it signed a seven-year contract worth SR245.8 million ($65.5 million) with Baker Hughes to design, manufacture, supply and operate three camps in the Eastern region to support its oil drilling operations in the region, according to a bourse filing.

Saudi Arabia's stock market traded higher this morning even as concerns about the new omicron COVID-19 strain persisted.

The main stock index, TASI was up very slightly 0.86 percent, reaching 10,854.27 points at 10:55 Riyadh time.

Saudi’s parallel market Nomu almost flat as it's down by 0.13 percent.

Companies news:

Aljazira Takaful Taawuni Co.’s shareholders approved the board of directors’ recommendation to increase capital to SR550 million from SR470.66 million through 16.86 percent bonus shares, according to a bourse filing.

This came during the extraordinary general assembly meeting  held on Nov. 30, the company said in a statement on Saudi Stock Exchange, Tadawul.

The capital increase will be executed by granting 0.1686 shares for every one share owned.

The National Agricultural Development Company, or NADEC, announces recent developments relating to the acquisition of the Second Milling Company with OLAM International Limited, Al Rajhi International for Investment Company and Abdulaziz Alajlan & Sons Company for Commercial and Real Estate Investment.

The Saudi Exchange announces that the fluctuation limits for Aljazira Takaful Taawuni Co. will be based on a share price of SAR 22.00

Saudi Telecom Co., or stc, approved its dividends policy for the next three years starting fourth quarter of 2021


Saudi Arabia’s $100bn plan to become largest shale gas producer outside of the US

Saudi Arabia’s $100bn plan to become largest shale gas producer outside of the US
Updated 01 December 2021

Saudi Arabia’s $100bn plan to become largest shale gas producer outside of the US

Saudi Arabia’s $100bn plan to become largest shale gas producer outside of the US
  • Saudi Arabia’s $100bn plan to become largest shale gas producer outside of the US

LONDON: Saudi Aramco’s award of $10 billion worth of contracts on its giant Jafurah project has finally fired the starting gun to develop what is thought to be the world’s biggest shale gas field outside of the US.
Having battled with America’s shale oil producers for market share over the last decade, the Kingdom is now adopting the advanced low-cost techniques of its fracking rivals and is set to spend up to $100 billion on Jafurah to rapidly increase its domestic gas production.
The Kingdom is estimated to be sitting on the fifth largest shale gas reserves in the world.
Saudi Energy Minister Prince Abdulaziz bin Salman earlier said the Jafurah gas field will place the Kingdom third in the world in natural gas production by 2030.
But does Saudi Arabia really have the potential to replicate the soaring success of US shale gas development?


Saudi Aramco Chief Executive Amin Nasser certainly thinks so. Announcing the contracts this week, he said: “It is a breakthrough that few outside the Kingdom thought was possible and which has positive implications for energy security, economic development and climate protection.”
Production is scheduled to begin within the next three years. The field will supply cleaner natural gas for domestic use in the Kingdom, along with feedstock for both petrochemical production, and crucially, low carbon hydrogen power.
Jafurah is expected to contribute to Saudi Arabia’s goal of producing half of its electricity from gas and half from renewables as it pursues its 2060 net-zero target. Indeed, Jafurah alone is forecast to replace up to 500,000 barrels of oil a day that would otherwise be used for domestic consumption.
All this serves the goals of the Kingdom’s Vision 2030 program to diversify the economy from crude oil and sharply reduce its carbon footprint, even if the scheme will enable the Kingdom to increase its crude exports.

The Kingdom, however, has no plans to export the gas from Jafurah as Prince Abdulaziz told reporter on Nov. 29 in Dhahran following the announcement of the new contracts to develop the basin.

We will keep our gas to ourselves

Saudi Energy Minister Prince Abdulaziz bin Salman


But it was thought that fracking in Saudi Arabia will be more expensive than it is in the US, not least because the Kingdom is not renowned with an abundance of natural water, a critical component in the fracking process.
The fracking process requires pumping water, sand and chemicals into the fields at high pressure which fractures the shale rock and allows the hydrocarbons to escape.
“We managed to reduce drilling cost by 70 percent and stimulation cost by 90 percent since the 2014 cost benchmark, while increasing well productivity six-fold compared with the start of the program,” Nasser said on Monday.
Aramco plans to use seawater for fracking at Jafurah. Earlier this year, the company also invited bids for a water desalination plant at the field. Desalinated water is used in gas processing plants. An earlier bidding process was abruptly canceled last year and the current tender process has reduced the capacity of the desalination plant by around 20 percent.

Sadad Al Husseini, former EVP of Aramco


However, former Aramco Executive VP Sadad Husseini insists the “water issue” is a red herring.
He told Arab News: “The water issue was resolved years ago. We have aquifers that hold saline water and the Saudi oil industry has a long history of using this water for drilling.”
Husseini also dismissed cost comparisons with the US shale industry.
He said: “The cost of fracking depends on the depth of the reservoir. In the US, they work with shallower reservoirs, around 3,000 to 4,000 feet deep, which makes fracking less costly. In Saudi Arabia, the reservoirs will be 9,000 to 10,000 feet deep. It’s technically more challenging, but unlike the US, those deep wells are not just producing gas, they’re also producing a lot of condensates, most notably ethane, along with gas, and that is profitable and makes the economics of this field work. Ethane feeds the petrochemical industry.”
He added: “It’s a challenging development but it wouldn’t have advanced if the issues hadn’t been resolved.
Developing shale gas reserves outside the US has not been particularly successful, partly due to environmental concerns - particularly in large population centers in Europe, a lack of infrastructure, and difficulties accessing and disposing of water used in the process.
However, Jafurah is close to the Gulf coast with relatively easy access to seawater, and is also adjacent to the world’s largest oilfield, Ghawar, and its substantial energy infrastructure.
Production at Jafurah is expected to commence in 2024 and is forecast to reach up to 2 billion cubic feet per day of sales gas, 418 million cubic feet per day of ethane and about 630,000 barrels per day of gas liquids and condensates by 2030. Investment over that period will amount to $68 billion, but is expected to total more than $100 billion overall.
Domestic employment, another key plank of the Kingdom’s Vision 2030, is also central to the scheme. It is understood that along with fields under development in North Arabia and South Ghawar, the Jufarah project will create more than 200,000 direct and indirect jobs in the Kingdom.
The scheme will also incorporate new technology, most notably using industrial internet of things and video analytics.
The Jafurah project will not only aid the Kingdom’s environmental ambitions but will also support its petrochemicals industry. “Its ethane and liquified natural gas are highly valuable feedstocks for the Kingdom’s petrochemical’s industry,” the Aramco chief said.