NEOM to build a desalination plant by 2024 to quell water paucity: Official

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Updated 18 September 2022

NEOM to build a desalination plant by 2024 to quell water paucity: Official

NEOM to build a desalination plant by 2024 to quell water paucity: Official
  • Project will undertake the task of creating an artificial freshwater lake in Trojena: ENOWA CEO

RIYADH: NEOM, Saudi Arabia’s smart and sustainable city, will build a water desalination plant by 2024 to combat water scarcity, revealed the CEO of its water and energy subsidiary ENOWA. 

Speaking on the sidelines of the Future Desalination International Conference held in Riyadh, ENOWA’s CEO Peter Terium told Arab News that the project would also undertake the ambitious task of creating an artificial freshwater lake in Trojena. 

“If you want to build a future land like NEOM, and you want to have livability, green parks and food production, then you need water, and of all the beautiful things it has, water is not one of them,” he said. 

The desalination project will be a benchmark in sustainability because it will be powered by 100 percent renewable energy.

“We have an ambitious road ahead of us. The first thing would be bringing a large wind and solar field into NEOM, and then we need to add to that,” Terium said. 




ENOWA’s CEO Peter Terium speaks to Arab News during the event. (AN photo)

He added that NEOM’s renewable energy goal is achievable and will have a competitive cost advantage because the wind speeds go up to 11 meters a second and the place is solar-intensive. 

Using renewable energy in water desalination will also boost the city’s green hydrogen production, which could be supplied to other countries. 

“The first large-scale green hydrogen plant in the world is being built in NEOM,” he stated. 

The NEOM Green Hydrogen project is a joint venture among NEOM, ACWA Power and USA’s Air Products. It is set to produce 650 tons of hydrogen daily and mitigate the impact of 3 million tons of carbon dioxide annually. 

Terium also stated that NEOM’s strategic geographical positioning and the Kingdom’s vibrant economy would allow the futuristic city to supply green hydrogen to the largest markets in the world. 

“Our position at the Gulf of Aqaba will allow us to get to Europe. We can get to Southeast Asia through the Red Sea, and then California is a bit further away,” pointed out Terium.

“We are in a position where we can export to any place where green hydrogen is needed and cannot be produced,” he said. 

The production capacity of the green hydrogen plant in NEOM would be 2,000 megawatts, which is 10 times the largest planned production facility in Europe. 

While the numbers may not match pace with the growing demand for green hydrogen, it is an excellent start for a city two times bigger than the collective size of London, New York, Singapore and Dubai.

“The world needs tens, if not hundreds, of gigawatts of hydrogen production. We are not big enough to host all of that, but we can lead by example as we are the first ones to do it,” said Terium.


UAE brings forward oil production capacity expansion to 2027

UAE brings forward oil production capacity expansion to 2027
Updated 17 sec ago

UAE brings forward oil production capacity expansion to 2027

UAE brings forward oil production capacity expansion to 2027

DUBAI: The board of Abu Dhabi’s ADNOC endorsed plans on Monday to bring forward the company’s five million barrel per day oil production capacity expansion to 2027 from a previous target of 2030, to meet rising global energy demand, according to Reuters.

The UAE’s hydrocarbon reserves increased by 2 billion stock tank barrels of mostly Murban-grade crude and 1 trillion standard cubic feet of natural gas in 2022, the state oil firm said in a statement.

The additional reserves increase the UAE’s reserve base to 113 billion STB of oil and 290 TSCF of natural gas.

ADNOC’s board of directors, which was chaired by the UAE’s President Sheikh Mohammed bin Zayed on Monday, also approved the creation of ADNOC Gas.

A gas processing and marketing entity to be effective from January, the company will combine the operations, maintenance and marketing of ADNOC Gas Processing and ADNOC LNG into one consolidated entity.

ADNOC said it plans to float a minority stake in the new company on the Abu Dhabi Securities Exchange in 2023.

A five-year business plan and capital expenditure of 550 billion dirhams ($150 billion) for the period 2023-2027 was also approved by the board to enable the company’s growth strategy.

ADNOC will also create a low carbon solutions and international growth vertical focused on new energies, gas, LNG and chemicals. The board directed the firm to pursue a net zero by 2050 ambition to support the UAE’s drive toward net zero carbon.

“The world needs maximum energy, minimum emissions and it needs all the energy solutions if we are to ensure global energy security,” ADNOC’s chief Sultan Al-Jaber was quoted as saying in the statement.

 


S&P Global lowers 2023 growth forecast for emerging markets

S&P Global lowers 2023 growth forecast for emerging markets
Updated 5 min 42 sec ago

S&P Global lowers 2023 growth forecast for emerging markets

S&P Global lowers 2023 growth forecast for emerging markets

BENGALURU: S&P Global Ratings lowered its 2023 growth forecast for emerging economies on Tuesday, citing persistent pressures from the Russia-Ukraine conflict, a lingering COVID-19 pandemic and tight monetary policy conditions, according to Reuters.

The ratings agency now projects real gross domestic product growth of 3.8 percent next year, down from its previous forecast of a 4.1 percent expansion.

“The downward revision to growth comes from all EMs (emerging markets) excluding China and Saudi Arabia, with most economies poised to expand below their longer-run trend rates,” it said, adding that forecasts for 2024 and 2025 remain broadly unchanged, averaging at 4.3 percent.

While inflation in emerging markets have passed the peak or are peaking soon on the back of declining food and fuel inflation, it is still poised to remain above central banks’ targets in many economies, forcing monetary policies to stay restrictive, the agency warned.

“But the deceleration in inflation--coupled with a worsening growth outlook--could bring policy easing onto the agenda in several EMs, especially in Latin America, by the middle of next year,” S&P said.

 


Oil Updates — Crude prices up; Chevron awaits Venezuelan oil cargoes

Oil Updates — Crude prices up; Chevron awaits Venezuelan oil cargoes
Updated 47 min 18 sec ago

Oil Updates — Crude prices up; Chevron awaits Venezuelan oil cargoes

Oil Updates — Crude prices up; Chevron awaits Venezuelan oil cargoes

RIYADH: Oil rebounded on Tuesday after falling to more than 11-month lows in the previous session, as investors weighed a potential output adjustment from the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, who are set to have a key meeting this week.

Brent crude futures advanced $1.81, or 2.2 percent, and traded at $85.00 a barrel at 0446 GMT. US West Texas Intermediate crude futures rose $1.37, or 1.8 percent, to $78.61 a barrel.

Brent settled down 0.5 percent the previous day, having slumped more than 3 percent to $80.61 earlier in the session to its lowest since Jan. 4. WTI settled up 1.3 percent on Monday after touching its lowest since December 2021.

Chevron awaits Venezuelan oil cargoes, but PDVSA wants payments

Chevron Corp. aims to start receiving cargoes of Venezuelan oil as early as December after the oil company last week received a US license to do so, but Caracas may not be as eager because US sanctions restrict payments, people familiar with the matter told Reuters.

The US on Saturday granted Chevron a six-month license to operate in Venezuela, reinstating oil trading privileges it had, while preventing exchanges of cash and requiring the crude cargoes go to US refiners.

Executives at Venezuelan state firm PDVSA initially welcomed the authorization for a partial return to the US, once the country’s most important market. They are less enthusiastic after learning of license terms that will not allow Chevron to reimburse operational costs or pay taxes and royalties in Venezuela, according to the people.

PDVSA and Venezuela’s oil ministry did not immediately reply to requests for comment.

As of Nov. 23, Chevron’s largest joint oil venture in Venezuela had 1.79 million barrels of exportable crude in stock, a document seen by Reuters showed. Another oil processing project where it is a minority partner halted operations earlier this year due to accumulated inventories that could not be exported.

Talks with EU on Russia oil price cap going well: White House

A White House spokesperson on Monday said talks with the European Union about a Russian oil price cap are going well.

Spokesperson John Kirby told reporters that he did not see inordinate pressure to take more action on the cap.

(With input from Reuters) 


World’s first commercial shipment of blue ammonia leaves Saudi Arabia

World’s first commercial shipment of blue ammonia leaves Saudi Arabia
Updated 29 November 2022

World’s first commercial shipment of blue ammonia leaves Saudi Arabia

World’s first commercial shipment of blue ammonia leaves Saudi Arabia

A consignment of blue ammonia has left Saudi Arabia for South Korea, representing a new milestone in the development of decarbonization solutions.

The development was first announced during the recent Saudi Green Initiative conference in Sharm El-Sheikh, and Vessel Seasurfer, carrying 25 kilometer-tons of low-carbon blue ammonia, is expected to reach its destination between Dec. 9 and 13 in the world’s first commercial shipment of its kind.

The accomplishment, which is an alternative to conventional gray ammonia, is part of a collaboration between Saudi Basic Industries Corporation Agri-Nutrients and Aramco.

Lotte Fine Chemical, which has a long-standing relationship with SABIC AN, will receive the low-carbon “cradle to gate” blue ammonia.

Abdulrahman Shamsaddin, SABIC AN CEO, said: “This shipment is another milestone in our journey toward carbon neutrality.

“We are proud to be a part of this pioneering solution, paving the way for further decarbonization efforts.

“Looking to the future, we are constantly working on breakthrough solutions to decarbonize our assets and deliver low-carbon solutions to our customers.”

Yong Suk Kim, LFC CEO, said: “We are delighted to enter this meaningful agreement with our long-term supplier, SABIC Agri-Nutrients, to receive the world’s first certified blue ammonia cargo. 

“Building on our shared history, we are looking forward to moving forward together into a new era for ammonia. We believe that this shipment of blue ammonia will help lay the foundations for a global supply chain." 

Earlier this year, SABIC AN and Aramco received the world’s first independent certifications, recognizing blue ammonia and blue hydrogen production, from TUV Rheinland, a leading independent testing, inspection and certification agency, based in Germany.

The shipment of blue ammonia to South Korea will be the first to capitalize on this major certification achievement. 

The new developments are aligned with Saudi Vision 2030, which focuses on low-carbon fuels, products, solutions and clean energy. 
 


Americana Restaurants reveals IPO date in first dual listing on Abu Dhabi and Saudi Arabia markets

Americana Restaurants reveals IPO date in first dual listing on Abu Dhabi and Saudi Arabia markets
Updated 28 November 2022

Americana Restaurants reveals IPO date in first dual listing on Abu Dhabi and Saudi Arabia markets

Americana Restaurants reveals IPO date in first dual listing on Abu Dhabi and Saudi Arabia markets

RIYADH: The restaurant group that runs KFC, Pizza Hut, Krispy Kreme and others across the Middle East has announced share allocation to investors as well as the scheduled date for its initial public offering in Abu Dhabi and Saudi Arabia, according to a statement.

Americana Restaurants’ IPO poses the first simultaneous dual listing process on the Abu Dhabi Stock Exchange and the Saudi Stock Exchange, also known as Tadawul.

Taking into consideration obtaining all the required regulatory approvals, the IPO’s listing and trading process is set to commence on Dec. 12.

As of Nov. 24, the firm disclosed that the final share price to be offered for subscription stands at 2.62 dirhams ($0.71) per share in the UAE and SR2.68 ($0.71) per share in the Kingdom respectively.

Subscription requests hit $105 billion garnered from several qualified and eligible institutional investors across diverse countries including both the UAE and Saudi Arabia.

Apart from that, other investors belonged to what is known as an “individual segment” in both the UAE and the Kingdom respectively.

Subscription requests for individuals in the UAE and Saudi Arabia exceeded 48.2 times and 2.8 times, respectively. On the other hand, subscription requests for qualified institutions exceeded 65.5 times.

A total of 283,245 individual investors in Saudi Arabia subscribed to the IPO. 

“We are looking forward to the next step of our growth journey and working towards future value creation. We are equally proud to have taken the final step towards a historic first-ever concurrent dual listing on ADX and the Saudi Exchange – further enhancing the depth and maturity of the UAE and Saudi capital markets. We look forward to welcoming our new shareholders in December,” said Chairman of Americana Restaurants Mohamed Ali Rashed Alabbar in a statement.

While 80 percent of the normal shares were allocated to a qualified institutional tranche, 10 percent were allocated to individual tranches in the UAE, and 10 percent were allocated to the individual tranche in the Kingdom.

In addition to this, the food and beverages firm also allocated over 1,000 shares for each subscriber in the retail segment in the UAE and more than 892 shares for each subscriber in the retail segment in Saudi Arabia.

The remaining shares were allocated on a pro-rata basis to the retail tranche in the UAE and an allocation percentage of 0.01 percent to the retail tranche in the Kingdom.

The shares have been allocated to the tranche of eligible constitutions in consultation with financial advisors as well as international coordinators.

 As per the updated schedule, any surplus subscription amounts are set to be returned to retail investors in the UAE on Nov. 30 and prior to Dec. 8 for those in the Kingdom.