Iran considering gas exports to Europe: official

Iran considering gas exports to Europe: official
Though Iran boasts one of the world’s largest proven gas reserves, its industry has been hit by US sanctions that were reimposed in 2018 when Washington withdrew from a landmark nuclear deal
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Updated 15 May 2022

Iran considering gas exports to Europe: official

Iran considering gas exports to Europe: official
  • Iran’s deputy oil minister also confirmed that Tehran and Baghdad had signed a memorandum of understanding a few weeks ago that will see the Islamic republic increase gas exports to Iraq

Iran is considering the possibility of exporting gas to Europe, an oil ministry official said Sunday against the backdrop of soaring energy prices due to Russia’s war in Ukraine.

“Iran is studying this subject but we have not reached a conclusion yet,” deputy oil minister Majid Chegeni was quoted as saying by the ministry’s official news agency, Shana.

“Iran is always after the development of energy diplomacy and expansion of the market,” he added.

Though Iran boasts one of the world’s largest proven gas reserves, its industry has been hit by US sanctions that were reimposed in 2018 when Washington withdrew from a landmark nuclear deal between Tehran and world powers.

Talks aiming to revive the 2015 nuclear deal began last year in Vienna but have been on pause for weeks amid outstanding issues.

Russia’s invasion of Ukraine in February sent global oil and gas prices soaring, with many European countries dependent on energy imports from Russia.

The situation worsened Wednesday when Kyiv said Russia had halted gas supplies through a key transit hub in the east of the Ukraine, fueling fears Moscow’s invasion could worsen an energy crisis in Europe.

Last year, the European Union received around 155 billion cubic meters of Russian gas, accounting for 45 percent of its imports.

Iran’s deputy oil minister also confirmed that Tehran and Baghdad had signed a memorandum of understanding a few weeks ago that will see the Islamic republic increase gas exports to Iraq.

“Gas exports from Iran increased and in this memorandum it was stated that Iraq’s debt of $1.6 billion to Iran will be paid by the end of May,” Chegeni added.

Despite considerable gas reserves of its own, poor investment due to decades of war and sanctions have left Iraq dependent on imports from its eastern neighbor for a third of its gas needs.

US sanctions on Iranian oil and gas, however, have complicated Iraq’s payments for the imports.

Baghdad uses a complex payment method to comply with an exemption from US sanctions on Iran. Iraq is not allowed to simply hand over cash to Iran as payments must be used to fund imports of food and medicines.


Oil Updates — Crude slips on recession fear; Algeria’s oil, gas earnings climb; Planned strike could cut Norwegian gas output

Oil Updates — Crude slips on recession fear; Algeria’s oil, gas earnings climb; Planned strike could cut Norwegian gas output
Updated 12 sec ago

Oil Updates — Crude slips on recession fear; Algeria’s oil, gas earnings climb; Planned strike could cut Norwegian gas output

Oil Updates — Crude slips on recession fear; Algeria’s oil, gas earnings climb; Planned strike could cut Norwegian gas output

RIYADH: Oil prices fell on Monday, paring gains from the previous session, as fears of a global recession weighed on the market even as supply remains tight amid lower OPEC output, unrest in Libya and sanctions on Russia.

Brent crude futures for September slipped 36 cents, or 0.3 percent, to $111.27 a barrel at 0300 GMT, having jumped 2.4 percent on Friday.

US West Texas Intermediate crude futures for August delivery dropped 34 cents, or 0.3 percent, to $108.09 a barrel, after climbing 2.5 percent on Friday.

Algeria’s oil, gas earnings up 70 percent in first five months of 2022

Algeria’s oil and gas earnings are up 70 percent and have reached $21.5 billion in the five first months of 2022, compared to $12.6 billion in the same period last year, an executive at state oil and gas producer Sonatrach told reporters on Sunday.

Meanwhile, Sonatrach’s CEO, Tewfik Hakkar told reporters on Sunday that the country is negotiating with all its clients to review gas prices. 

Hakkar added that the review of the prices is not targeting a single company or country.

Norway strike could cut gas output by 13 percent next week

A planned strike next week by Norwegian energy sector workers could cut the country’s gas output by 292,000 barrels of oil equivalent per day, or 13 percent of output, employers’ group the Norwegian Oil and Gas Association said on Sunday.

Oil output could be cut by 130,000 barrels per day, NOG added, corresponding to around 6.5 percent of Norway’s production, according to a Reuters calculation.

The strike, in which workers are demanding wage hikes to compensate for rising inflation, comes at a time of high oil and gas prices, with supplies of natural gas to Europe particularly tight after Russian export cutbacks.

Members of the Lederne labor union, who make up around 15 percent of the country’s offshore petroleum workers, on Thursday voted down a proposed wage agreement that had been negotiated by companies and union leaders.

As a result, they plan to begin a strike at three offshore fields on July 5, and to add three more fields the following day unless a solution is found.

A seventh field, Tyrihans, will have to shut down because its output is processed from the nearby Kristin field, which will shut down.

The parties have been talking, but no progress has been made.

(With inputs from Reuters)


GCC stocks down for second straight month in June amid recession fears

GCC stocks down for second straight month in June amid recession fears
Updated 24 min 19 sec ago

GCC stocks down for second straight month in June amid recession fears

GCC stocks down for second straight month in June amid recession fears

RIYADH: Stock exchanges in the Gulf Cooperation Council states logged their second straight monthly decline in June as fears over inflation and recession rattled investors.

MSCI GCC Index, which captures the performance of indexes across the region, was down 9 percent as it exited its worst month so far this year, a report by Kamco Invest revealed.

Oil-rich Saudi Arabia posted the biggest drop of nearly 11 percent, followed by Abu Dhabi and Qatar with declines of 6.8 and 5.6 percent, respectively.

The Omani benchmark index bucked the trend to close slightly higher, securing a 0.2-percent gain.

This happened amid worries about rising inflation and interest rate hikes as well as the ongoing Russia-Ukraine war and China’s COVID-19 lockdowns.

That said, the aggregate index is up 2.8 percent in terms of year-to-date gains, having performed four straight months in the green before dropping in May.


REVIEW: Circlys - saving platform

Photo/Supplied
Photo/Supplied
Updated 03 July 2022

REVIEW: Circlys - saving platform

Photo/Supplied
  • Eligible members must have accounts documented through the national information center “Nafath,” have a fixed income and a Saudi bank account

Many people when they have a certain income worry about having a proper amount of savings in their bank accounts.

Saving is known to be one of the best steps toward a healthy financial status and there are many ways to go about it.

One example is Circlys, an official Saudi closed joint-stock company, headquartered in Riyadh and specializing in financial technology.

It is a certified cooperative saving application provided for customers in Saudi Arabia under the supervision of the Saudi Central Bank, the Ministry of Commerce and the Ministry of Investment.

Eligible members must have accounts documented through the national information center “Nafath,” have a fixed income and a Saudi bank account. Every subscriber must sign a claim in case of defaulting and to guarantee their rights.

Circlys offers different saving opportunities throughout the year with durations varying between six and 12 months. Monthly shares start at SR500. Subscribers can choose the month they would like to receive the sum they register to get, and payments from each subscriber are deducted based on their salary period. Amounts will be received within three days after the salary receiving date.

The idea of the saving platform is inspired by a common saving concept in the Arab region called “Jamea’a,” where a group of three or more individuals agrees on saving the same amount of money in turns, provided that each individual pays the agreed-upon amount in the specified time. It is not permissible to breach the deadline or evade payment.

With a 4.7 rating by users, the savings platform has more than 180,000 beneficiaries and 10,000 saving circles. The phone app is available in English and Arabic on Android and iOS. For more information, visit circlys.com


Algeria to review gas prices with all its clients

Algeria to review gas prices with all its clients
Updated 03 July 2022

Algeria to review gas prices with all its clients

Algeria to review gas prices with all its clients
  • Algeria’s oil and gas earnings are up 70 percent and have reached $21.5 billion in the five first months of 2022

ALGIERS: Algeria is negotiating with all its clients to review gas prices, state oil and gas producer Sonatrach’s CEO, Tewfik Hakkar, told reporters on Sunday.

Hakkar added that the review of the prices is not targeting a single company or country.

The statement comes almost a week after Spain began re-exporting gas to Morocco in reverse flow via the Gazoduc Maghreb-Europe pipeline, marking the first direct flow of piped gas from Europe to Africa.

Spain and Morocco agreed earlier this year to consider using the GME pipeline for reverse flow to the North African country with the gas to be sourced from the global LNG market.

On Nov. 1, Algeria, which has cut off diplomatic ties with Morocco, stopped supplying natural gas to its neighboring country through the GME pipeline.

Algeria is now supplying Spain using the Medgaz undersea pipeline with an annual capacity of 8 billion cubic meters, which does not go through Morocco.

Earnings up

Algeria’s oil and gas earnings are up 70 percent and have reached $21.5 billion in the five first months of 2022, compared to $12.6 billion in the same period last year, an executive at state oil and gas producer Sonatrach told reporters on Sunday.

Along with gas, Algeria is a large oil producer with 12.2 billion barrels of proven oil reserves. The country exports 540,000 barrels per day of its total production of about 1.1 million bpd. All proven oil reserves are held onshore, though offshore exploration is in the early stages.


NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May

NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May
Updated 03 July 2022

NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May

NRG Matters: DEWA expands its energy production capacity; Germany cuts natural gas consumption by 35% in May

RIYADH: On a macro level, Germany reduced consumption of natural gas by 35 percent in May. Zooming in, Dubai’s DEWA added 700MW of energy production capacity, to reach a total of 14,117 MW. 

Looking at the bigger picture

  • Germany has reduced its consumption of natural gas by 35 percent during the first five months of 2022, compared to the same period last year, Bloomberg reported citing an industry lobby group. Only part of the drop was due to a milder winter, it added. 

Through a micro lens:

  • Dubai Electricity and Water Authority has added 700 MW of energy production capacity, to reach a total of 14,117 MW, according to the Dubai Media Office. 

This includes 600 MW from the Hassyan Power Complex, which runs on natural gas, and 100 MW from photovoltaic solar panels at the 5th phase of the Mohammed bin Rashid Al-Maktoum Solar Park, which DEWA is implementing.

  • The Egyptian Nuclear and Radiological Regulatory Authority has issued a construction license to build the first reactor at Al Dabaa Nuclear Power Plant, according to a statement.

On Egypt’s Mediterranean coast, the El Dabaa site is 320 km west of Cairo. The plant will comprise four VVER-1200 units, like those already in operation at the Leningrad and Novovoronezh nuclear power plants in Russia, and the Ostrovets nuclear power plant in Belarus.