Saudi Energy Ministry to help SABIC develop renewable energy projects

Saudi Energy Minister Prince Abdulaziz bin Salman, middle, at the MoU signing ceremony.
Saudi Energy Minister Prince Abdulaziz bin Salman, middle, at the MoU signing ceremony.
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Updated 28 November 2021

Saudi Energy Ministry to help SABIC develop renewable energy projects

Saudi Energy Ministry to help SABIC develop renewable energy projects

RIYADH: The Saudi Energy Ministry on Sunday signed a memorandum of understanding with the Saudi Basic Industries Corp. to help develop the company’s renewable energy projects. 

SABIC CEO Yousef Al-Benyan said the support from the Energy Ministry would enable the company to achieve its net-zero emissions goal.

Al-Benyan said the petrochemicals company plans to increase its use of renewable energy to further reduce emissions of greenhouse gases.

All these measures are part of the Saudi Green Initiative. The Kingdom aims to reach net zero in carbon emissions by 2060.  

The main vehicle for the Saudi green initiative is the Circular Carbon Economy, a framework that mitigates carbon emissions but allows different countries to pursue their own economic strategies.

SABIC’s net-zero target is the same as the 2050 pledge by Saudi Aramco, which has also begun to move into renewables.

Renewable energy projects, including wind and solar, are planned across more than 35 parks in Saudi Arabia by 2030.

According to the US-Saudi Arabian Business Council, the development of Saudi Arabia’s renewable energy sector could create up to 750,000 jobs over the next decade, as the Kingdom pushes to generate 7 percent of its total electricity output from renewables by 2030.


Will TASI wrap up two straight weeks of gains? Here’s what to know for Jan. 19

Will TASI wrap up two straight weeks of gains? Here’s what to know for Jan. 19
Updated 16 sec ago

Will TASI wrap up two straight weeks of gains? Here’s what to know for Jan. 19

Will TASI wrap up two straight weeks of gains? Here’s what to know for Jan. 19

RIYADH: Saudi Arabia’s main stock index was up for the eighth consecutive day on Tuesday as benchmark oil prices surged to record 7-year highs.  

TASI edged up 0.2 percent to close at 12,194 points, whereas the parallel Nomu market was down 0.5 percent to 26,058 points.

In the GCC region, Qatar’s QSI and Abu Dhabi’s FTSE ADX General index led the gains, both up 0.8 percent, followed by TASI.

Bourses of Dubai, Bahrain, and Kuwait edged down, while Oman’s MSX30 ended flat.

Elsewhere in the Middle East, the Egyptian index EGX30 closed 0.1 percent higher.

In energy trading, Brent crude jumped in early morning to its highest level in seven years, reaching $88.4, and US WTI crude oil traded at $86.5 per barrel as of 8:43 a.m. Saudi time.

Stock news

  • United Wire Factories Co. reported estimated 2021 profits at SR46 million ($12.3 million), down 26 percent from a year earlier
  • Red Sea International Co. has signed a SR60.5 million deal with The Red Sea Development Co., TRSDC, to design, manufacture, supply, and install three complexes in the Saudi Western region
  • Yamama Cement Co. is to sell its sixth production line which produces a capacity of 3,000 tons of clinker per day
  • Saudi oil giant Aramco signed one agreement and nine MoUs with leading Korean entities to advance its downstream strategy and support development of low-carbon energy solutions, while creating new financing options for the company

Calendar

Jan. 19, 2022

  • Allied Cooperative Insurance Group’s rump offering ends

Jan. 20, 2022

  • National Co. for Learning and Education will start paying out dividends of SR0.8 per share for the fiscal year ended Aug. 31, 2021

Jan. 25, 2022

  • Saudia Dairy and Foodstuff Co., SADAFCO, to pay cash dividends at SR3 per share for the first half of its fiscal y

 


Oil highest since 2014 as Turkey outage adds to tight supply outlook

Oil highest since 2014 as Turkey outage adds to tight supply outlook
Updated 6 min 40 sec ago

Oil highest since 2014 as Turkey outage adds to tight supply outlook

Oil highest since 2014 as Turkey outage adds to tight supply outlook


SINGAPORE:  Oil prices rose for a fourth day on Wednesday as an outage on a pipeline from Iraq to Turkey increased concerns about an already tight supply outlook amid worrisome geopolitical troubles in Russia and the United Arab Emirates.
Brent crude futures rose 87 cents, or 1 percent, to $88.38 a barrel at 0543 GMT, adding to a 1.2 percent jump in the previous session. The benchmark contract climbed to as much as $89.05, its highest since Oct. 13, 2014.
U.S. West Texas Intermediate crude futures climbed $1.03, or 1.2 percent, to $86.46 a barrel, adding to a 1.9 percent gain on Tuesday. WTI earlier jumped to a high of $87.08, its highest since Oct. 9, 2014.
Turkey's state pipeline operator said it put out a blaze following an explosion that cut oil flow at the Kirkuk-Ceyhan pipeline, adding that it would be operational "as soon as possible". The cause of the explosion is not known.
The pipeline carries crude out of Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries, to the Turkish port of Ceyhan for export.
The loss comes as analysts are forecasting tight oil supply in 2022, driven in part by demand holding up much better than expected as the highly contagious Omicron coronavirus variant spreads, with some predicting the return of $100 oil.
Concerns over Russia, the world's second-largest oil producer, and the UAE, OPEC's third-largest producer, are adding to the supply fears.
The UAE late on Tuesday called for a meeting of the United Nations Security Council to condemn an attack on Abu Dhabi on Monday by Yemen's Houthi movement, which has threatened further attacks.
Meanwhile, Russian troops are lined up on the border of Ukraine, with the White House calling the crisis extremely dangerous and saying Russia could invade at any point.
The tensions raise the prospect of supply disruptions at a time when OPEC, Russia and their allies, together called OPEC+, are already having difficulty meeting their agreed target to add 400,000 barrels per day of supply each month.
"OPEC+ is falling short of hitting their production quotas and if geopolitical tensions continue to heat up, Brent crude might not need much of a push to get to $100 a barrel," OANDA analyst Edward Moya said in a note.
Jet fuel consumption is rising with growth in international flights, while road traffic is much higher than the same time last year, Commonwealth Bank commodities analyst Vivek Dhar said in a note.
"OPEC+ supply constraints and the ongoing increase in global oil demand will likely keep oil prices well supported in coming months," Dhar said.
OPEC officials have told Reuters that oil's rally may continue in the next few months due to recovering demand and limited capacity in OPEC+, and prices could break $100 a barrel.


Saudi Arabia kicks off the year with a $755 million sukuk issuance

Saudi Arabia kicks off the year with a $755 million sukuk issuance
Updated 20 min 27 sec ago

Saudi Arabia kicks off the year with a $755 million sukuk issuance

Saudi Arabia kicks off the year with a $755 million sukuk issuance

RIYADH: The Saudi government offered sukuk denominated in Saudi riyals worth SR2.83 billion ($755 million) in its first issuance for the year 2022, the National Debt Management Center announced on Tuesday.

 


Red Sea International to supply 3 complexes to TRSDC as construction accelerates

Red Sea International to supply 3 complexes to TRSDC as construction accelerates
Updated 30 min 4 sec ago

Red Sea International to supply 3 complexes to TRSDC as construction accelerates

Red Sea International to supply 3 complexes to TRSDC as construction accelerates

RIYADH: Red Sea International Co. signed a SR60.5 million ($16.12 million) contract with The Red Sea Development Co., known as TRSDC, to design, manufacture, supply, and install three complexes in the Saudi western region, according to a bourse filing.

This comes in line to support the construction activities of luxury hotels on three islands in the Red Sea, Sheybarah and Ummahat Al Shaikh islands.

The contract duration is 194 days, the company said in a statement to Saudi stock exchange, Tadawul.

The contract consists of various types of modular units, which can be used as accommodations or offices. These units will be fully furnished to provide all the requirements for the crew working on the construction site.

Revenues and profits will be realized starting the first quarter of 2022.

There are no related parties in the contract, the statement said.

 


Why airlines fear 5G will upend travel this week?

Why airlines fear 5G will upend travel this week?
Updated 19 January 2022

Why airlines fear 5G will upend travel this week?

Why airlines fear 5G will upend travel this week?

AT&T and Verizon will postpone new wireless service near some airports planned for this week after the nation’s largest airlines said the service would interfere with aircraft technology and cause massive flight disruptions.
AT&T said Tuesday it would delay turning on new cell towers around runways at some airports — it did not say how many — and work with federal regulators to settle the dispute.
Verizon said it will launch its new 5G network but added, “we have voluntarily decided to limit our 5G network around airports.”
The moves came after the airline industry raised the stakes in a showdown with AT&T and Verizon over plans to launch 5G wireless service this week, warning that thousands of flights could be grounded or delayed if the rollout takes place near major airports.

WHOSE SIDE IS THE GOVERNMENT ON?
Both.
The Federal Communications Commission, which runs the auctions of radio spectrum, determined that C-Band could be used safely in the vicinity of air traffic. The FCC in 2020 set a buffer between the 5G band and the spectrum that planes use to resolve any safety concerns.
But Buttigieg and FAA Administrator Stephen Dickson, whose agency is responsible for aviation safety, saw a potential problem. On Friday, they asked AT&T and Verizon to hold off activating C-Band 5G near an undetermined number of “priority airports” while the FAA conducted further study.

HOW DID AT&T AND VERIZON RESPOND?
They dismissed the concerns. The wireless industry trade group CTIA notes that about 40 countries have deployed the C-Band strand of 5G without reports of harmful interference with aviation equipment.
But AT&T CEO John Stankey and Verizon CEO Hans Vestberg did offer to reduce the power of their 5G networks near airports, as France has done.
“The laws of physics are the same in the United States and France,” Stankey and Vestberg said in a letter Sunday to Buttigieg and Dickson. “If U.S. airlines are permitted to operate flights every day in France, then the same operating conditions should allow them to do so in the United States.”
Although they took steps to soothe the federal officials, the telecoms are still bickering with airlines, which have canceled more than 10,000 U.S. flights since Christmas Eve because of bad weather and labor shortages caused by COVID-19.
“While the airline industry faces many challenges, 5G is not one of them,” Vestberg said in a company memo Tuesday.

HOW MANY PLANES DOES THIS AFFECT?
Under the agreement, the FAA will conduct a survey to find out. The FAA will allow planes with accurate, reliable altimeters to operate around high-power 5G. But planes with older altimeters will not be allowed to make landings under low-visibility conditions.

WHAT WILL HAPPEN IN THE NEXT TWO WEEKS?
The two-week postponement will give the FAA and the companies time to implement the agreement.
AT&T and Verizon will be allowed to launch C-Band service this month under already-granted FCC licenses. The airlines have until Friday to give the companies a list of up to 50 airports where they believe the power of C-Band service should be reduced through July 5.
Until July, the telecoms will talk to the FAA and airlines about potential long-term measures regarding 5G service near airports. However, under terms of the agreement with the FAA, AT&T and Verizon will have sole power to decide if any changes in service will be made.
“We felt that it was the right thing to do for the flying public, which includes our customers and all of us, to give the FAA a little time to work out its issues with the aviation community and therefore avoid further inconveniencing passengers with additional flight delays,” Vestberg said in his memo.
Nicholas Calio, president of the airline trade group, was more muted in his comments about the agreement, although he thanked federal officials for reaching the deal with AT&T and Verizon.
“Safety is and always will be the top priority of U.S. airlines. We will continue to work with all stakeholders to help ensure that new 5G service can coexist with aviation safely,” Calio said.
The FAA issued a brief statement about the two-week delay, saying it looks forward "to using the additional time and space to reduce flight disruptions associated with this 5G deployment.”