Bangladesh in talks with Saudi ACWA Power for 1GW solar project, potential green hydrogen deal

Exclusive Salman Fazlur Rahman (AN)
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Updated 04 November 2021

Bangladesh in talks with Saudi ACWA Power for 1GW solar project, potential green hydrogen deal

Bangladesh in talks with Saudi ACWA Power for 1GW solar project, potential green hydrogen deal

RIYADH: Bangladesh is in talks with Saudi energy company ACWA Power to develop a large solar project which would supply Southeast Asian nations with one gigawatt of electricity as it shifts towards more clear energy sources, an official said.

The country is also engaging in early talks with ACWA Power, in which the Saudi sovereign wealth fund PIF holds a 44-percent stake, about a potential green hydrogen project, Salman Fazlur Rahman, adviser to the Prime Minister, told Arab News.

“We've been talking with ACWA power for solar. In fact, ACWA power people were there in Bangladesh recently and they met our ministry of energy and they are negotiating a large solar project, a one gigawatt solar project. So, that's under negotiation,” he added. “We hope to conclude it soon and they will be signing an agreement pretty soon.”

Bangladesh has an installed capacity of 2.4 gigawatt, Rahman added, and the country needs more energy to expand the economy and to attract investors.

The drive for the hydrogen comes as a result of the country’s plan to establish a terminal to import liquefied natural gas (LNG). The same terminal can import green ammonia, which can be converted into green hydrogen.

“We are developing, with the Japanese government, a deep-sea port in Bangladesh where we are going to put an onshore LNG terminal and LPG terminal. So we are now thinking that this is the right time, because this is in the planning stage that we should also have an onshore ammonia terminal,” Rahman said.

ACWA Power is one of three partners in Saudi Arabia’s first green hydrogen project along with NEOM and US-based Air Products. The venture plans to export its first green ammonia project in early 2026 and it is looking for long-term off takers of the fuel.

“We are talking to ACWA power on green hydrogen as well, but that's a longer-term project because at the moment, even that technology is not perfected yet and the cost is still pretty high,” Rahman said.


Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
Updated 28 September 2022

Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
  • Jordanian minister said value of trade between his country and Gulf Cooperation Council member states reached $6.6 billion in 2021

AMMAN: The third session of the Jordan-Gulf Cooperation Council Economic Forum began in Amman on Tuesday. It brings together officials and business representatives from Jordan and GCC member states to discuss opportunities for the expansion and development of economic relations, the Jordan News Agency reported.

The forum, which is taking place under the title New Horizons for Economic and Investment Cooperation, aims to advance the strategic objectives and interests of all participating nations, according to the Jordanian Ministry of Industry, Trade and Supply.

The delegates at the two-day event include businessmen, investors, the heads of trade federations and chambers of commerce, and representatives of Gulf and Jordanian government stakeholders, according to the ministry.

In his opening remarks, Youssef Shamali, the Jordanian minister of industry, trade and supply, said that the value of trade between his country and GCC member nations reached $6.6 billion in 2021. Jordanian exports to the GCC were worth $1.7 billion of that total, while Jordan’s imports accounted for $4.9 billion.

The minister added that Gulf nations are responsible for the most significant foreign investments in Jordan, and capital from the region has benefited the nation’s economy and created jobs for the Jordanian people.

He added that if Arab nations were to unite to form a powerful economic bloc, it would allow them to boost exports, increase production, create new job opportunities for young people, and achieve greater integration into the global economy.
 


Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low
Updated 27 September 2022

Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low

NEW YORK: Oil rose by $2 a barrel on Tuesday from a nine-month low a day earlier, supported by supply curbs in the US Gulf of Mexico ahead of Hurricane Ian and a slight softening in the US dollar.
Prices also drew support from analyst expectations of possible supply cuts from the Organization of the Petroleum Exporting Countries and allies, which meets to set policy on Oct. 5.
Brent crude was up $2.35, or 2.8 percent, to $86.41 a barrel at 10:52 a.m. EDT (1452 GMT). On Monday it fell as low as $83.65, the lowest since January. US West Texas Intermediate  crude was up $2.04, or 2.7 percent, at $78.74.
Crude soared after Russia invaded Ukraine in February, with Brent coming close to its all-time high of $147 in March. Recently, worries about recession, high interest rates and dollar strength have weighed.
“Oil is currently under the influence of financial forces,” said Tamas Varga of oil broker PVM. “In the meantime, relief rallies, like the one this morning caused by Hurricane Ian in the US Gulf, are viewed as temporary phenomena.”
The dollar edged back from a 20-year high, which also supported oil. A strong dollar makes crude more expensive for buyers using other currencies.
Supply cuts also lent support. BP and Chevron said on Monday they had shut production at offshore platforms in the Gulf of Mexico as Hurricane Ian approached.
The outages may only provide a momentary reprieve for oil prices, Jim Ritterbusch, of Ritterbusch and Associates, said in a note.
“Outages are apt to prove brief,” Ritterbusch said, adding that the Gulf of Mexico represents “only about 15 percent of total US production amid this shale age” so the effect “is apt to be minimal.”
The oil price drop has raised speculation that OPEC+ could intervene. Iraq’s oil minister on Monday said the group was monitoring prices and did not want a sharp increase or a collapse.


Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program
Updated 27 September 2022

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

RIYADH: Global rating agency Moody’s has assigned the Public Investment Fund-owned GACI First Investment Co.’s EMTN program  a (P) A1 rating.

The euro medium-term note program has been established under the special purpose company incorporated in the Cayman Islands.

The firm has been assigned a stable outlook in line with the stable outlook on existing ratings of PIF.

The rating decision reflects Moody’s view that note holders will effectively be exposed to PIF’s senior unsecured credit risk.

In February, Moody’s Investors Service assigned an A1 long-term issuer rating to the PIF. As one of the world’s largest sovereign wealth funds, PIF is one of the main vehicles to grow the Kingdom’s non-oil economy and reduce its reliance on the hydrocarbon sector.


UAE In-Focus — Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon

UAE In-Focus —  Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon
Updated 27 September 2022

UAE In-Focus — Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon

UAE In-Focus —  Hospitality market to expand by 25% by 2030; Dubai to announce hydrogen strategy soon

DUBAI: The UAE’s hospitality market is set to expand by 25 percent by 2030, with a further 48,000 rooms adding to the nation’s extensive 200,000 key portfolio, according to a study conducted by Knight Frank.

The global property consultancy said in its report that Dubai will account for the lion’s share of these new rooms, with 76 percent coming to the emirate, which already boasts more than 130,000 rooms.

“The emirate has cemented its status as a city with universal appeal, in large part to the world-leading government response to the pandemic and some of the world’s most visited and incredible attractions,” Faisal Durrani, partner and head of Middle East Research at Knight Frank said.

It is estimated that the hotel room supply will cost approximately 117.5 billion dirhams ($32 billion).

Dubai develops hydrogen strategy

Dubai will soon unveil its green hydrogen strategy, MEED reported quoting the managing director of the Dubai Electricity & Water Authority as saying.

Saeed Mohammed Al-Tayer made the revelation at a press conference held to announce the World Green Economy Summit on Sept. 28-29.

Rental market

The Dubai Land Department has signed a memorandum of understanding with Dubai Chambers to enhance the emirate’s rental market’s investment environment, according to Dubai Media Office.

As a result of the MoU, Dubai Chambers will be able to offer real estate and office space to business councils and groups.

It will also facilitate market research and joint training workshops related to the rental sector in Dubai.

In a statement, Abdul Aziz Al-Ghurair, chairman of Dubai Chambers, said the partnership complements Dubai Chambers’ 2022-2024 strategy and the ongoing efforts to boost confidence in the real estate sector, which remains a key contributor to the emirate’s economy.

A constructive dialogue between the public and private sectors is essential to Dubai’s sustainable economic growth and development, he said.

 


Saudi Arabia agrees to fund $63m Senegal road project

Saudi Arabia agrees to fund $63m Senegal road project
Updated 27 September 2022

Saudi Arabia agrees to fund $63m Senegal road project

Saudi Arabia agrees to fund $63m Senegal road project

RIYADH: The Saudi Fund for Development is pumping $63 million into a coastal road project in Senegal, it has been announced.

The agreement with the African country will see the construction of a 12 km, two-lane highway in Dakar.

The project will also contribute to raising the level of road safety, meeting the needs of residents of cities and villages, and reducing the rates of injuries and deaths resulting from traffic accidents.

The move is the latest cash injection the Saudi Fund for Development into Senegal, having previously financed 27 loans to contribute to 25 projects and programs, with a value of about $447 million.

It has also awarded grants worth $19 million in the sectors of transportation, transportation, infrastructure, health, housing, urban development, energy, education, water and sanitation.

In August, the Fund signed an agreement with the Cameroonian government to finance the construction of the Mbalmayo Regional Hospital Project, by providing a soft development loan of $12 million.

The agreement was signed by SFD CEO Sultan Al-Marshad, and the Cameroonian Minister of Economy, Planning, and Regional Development, Alamine Ousmane Mey.

The agreement will help to build and equip the hospital with 200 beds and develop specialized medical departments, centers, and buildings spanning a total area of 14,000 sq. meters. 

The development plan also comprises rehabilitating the roads that connect the hospital to the main roads to ensure easy access.