Scholz to sign LNG deals with UAE: German minister

Scholz to sign LNG deals with UAE: German minister
Germany is acquiring liquefied natural gas terminals as part of its efforts to diversify away from Russian gas amid Western sanctions on Moscow. (File)
Short Url
Updated 19 September 2022

Scholz to sign LNG deals with UAE: German minister

Scholz to sign LNG deals with UAE: German minister
  • Germany looks for new partners to replace Russian energy imports

DUBAI: German Chancellor Olaf Scholz is expected to sign contracts for liquefied natural gas during his visit to the UAE on Sunday, his deputy chancellor said, as Germany looks for new partners to replace Russian energy imports.

“The gas offering is slowly broadening. The government is permanently in talks with many countries,” Economy Minister Robert Habeck said, pointing to his own trip to Qatar and the UAE in March.

In May, sources told Reuters that LNG talks between Germany and Qatar were fraught with differences over key conditions, including the duration of any contract.

German is acquiring LNG terminals as part of its efforts to diversify away from Russian gas.

Habeck was speaking in Lubmin in northern Germany, where the government hopes a state-leased floating storage and regasification unit can be operational at the end of 2023 at the earliest.

The government is permanently in talks with many countries.

Robert Habeck, economy minister

“We must show that in times like these, we can plan, authorize and build faster than is usually the case in Germany,” Habeck said of the construction drive, adding that LNG projects in Wilhelmshaven and Brunsbuettel were examples of this.

“There is a good, realistic chance ... that the two FSRU vessels there will be able to feed into the German gas network from the turn of the year,” he said.

EWEC water project

The Emirates Water and Electricity Co. has invited expressions of interest on the development of Abu Dhabi Islands Reverse Osmosis Independent Water Project.

The project consists of two stand-alone greenfield reverse osmosis seawater desalination plants to be located on Saadiyat Island and Hudayriat Island, reported Zawya. 

Through sustainable and low carbon methods, both plants will produce 100 million imperial gallons per day — covering the water demand of 180,000 households in Abu Dhabi.

“Reverse osmosis is a vital low-carbon intensive seawater desalination technology that enables EWEC to strategically change its water and power generation portfolio, and ultimately contribute to the decarbonization of the energy sector,” stated EWEC CEO Othman Al-Ali.

ADNOC’s transmission system

The Abu Dhabi National Oil Co.’s project — a $3.6 billion high-voltage, direct current subsea transmission system — is on the verge of financial close.  

A consortium led by South Korean Kepco — including Japan’s Kyushu Electric Power Co. International and Électricité de France — was awarded the public-private partnership contract last December. 

The transmission system will decrease ADNOC offshore’s carbon footprint by 30 percent through using sustainable power sources in Abu Dhabi’s onshore power network, according to MEED.

Construction on the project is expected to begin soon.


Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO
Updated 17 min 10 sec ago

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

RIYADH: Oil prices jumped nearly 3 percent on Monday, as the Organization of the Petroleum Exporting Countries, known as OPEC+, considers cutting output by more than 1 million barrels a day in what would be its biggest reduction since the pandemic.

Brent crude futures rebounded $2.44, or 2.87 percent, to $87.58 a barrel by 10.13 a.m Saudi time, after settling down 0.6 percent on Friday.

US West Texas Intermediate crude was also up 2.87 percent, or $2.40, at $81.89 a barrel, after the previous session’s loss of 2.1 percent.

Shell to invest in second Malaysia oil, gas project in a month

Shell announced a second investment in Malaysia’s oil and gas sector in a month as the major and its partners, including Petronas, aim to revive output in an environment of tight global supply.

Shell’s decisions come after the war in Ukraine disrupted Russian oil and gas supplies and boosted prices. Oil and gas producers in Asia are struggling to sustain output after years of under-investment in the sector as international companies scaled back to focus on exploration and production in Africa and the Americas.

Sabah Shell Petroleum Co, a Malaysian unit of Shell, said on Monday it will invest in phase 4 of the Gumusut-Kakap-Geronggong-Jagus East deepwater offshore development project along with its partners. No amounts were given.

The GKGJE phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024, Shell Malaysia said in a statement.

Shell’s partners in the GKGJE project include ConocoPhillips Sabah Ltd., Petronas Carigali, Sabah Oil Limited, PT Pertamina Malaysia Eksplorasi Produksi and others.

Genel Energy appoints Weir as permanent CEO

Iraqi Kurdistan-focused oil firm Genel Energy appointed Paul Weir as its full-time CEO on Monday.

Weir, who previously served as the chief operating officer, was appointed as the interim CEO in June.

(With input from Reuters)


TASI gains ahead of OPEC+ meeting: Opening bell

TASI gains ahead of OPEC+ meeting: Opening bell
Updated 26 min 10 sec ago

TASI gains ahead of OPEC+ meeting: Opening bell

TASI gains ahead of OPEC+ meeting: Opening bell

RIYADH: The Saudi main index rose in Monday’s trading session as investors awaited the meeting of the Organization of the Petroleum Exporting Countries Plus to be held later in the week.

The Tadawul All Share Index started the session 0.53 percent higher to reach 11,548; the parallel market Nomu started almost flat at 19,956, as of 10:06 a.m. Saudi time.

Saudi oil giant Aramco started with a 0.42 percent increase, while Rabigh Refining and Petrochemical Co. was up 1.44 percent.

The Saudi National Bank, the Kingdom’s largest lender, added 1.12 percent, while Saudi British Bank increased by 2.12 percent.

The Kingdom’s most valued bank Al Rajhi gained 0.61 percent, while Alinma Bank gained 0.68 percent.

Mouwasat Medical Services Co. gained 0.69 percent, after completing the acquisition of 51 percent of Jeddah Doctors Co. in a SR102 million ($27 million) deal.

Najran Cement Co. grew 1.26 percent, after declaring cash dividends of SR0.25 per share to shareholders in the first half of 2022.

Leejam Sports Co. added 0.64 percent, following the opening of a new Ladies Xpress Fitness Center in Riyadh on Oc. 2, bringing the total number of its centers inside and outside the Kingdom to 154.


Credit Suisse fights for survival as default swaps hit highest level in 10 years

Credit Suisse fights for survival as default swaps hit highest level in 10 years
Updated 26 min 39 sec ago

Credit Suisse fights for survival as default swaps hit highest level in 10 years

Credit Suisse fights for survival as default swaps hit highest level in 10 years

RIYADH: Switzerland-based global investment bank and financial services firm Credit Suisse is fighting for its survival after the credit default swaps jumped 6 basis points to close to 247 basis points on Friday, the highest level in at least 10 years. 

According to a Financial Times report, Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors and have requested less than 100 days to deliver a new turnaround strategy. 

Credit Suisse has been facing turbulence in the market for at least one year. In March 2021, the company had a market capitalization of 30 billion Swiss francs ($30.35 billion), while it is just 10 billion Swiss francs now. 

On Friday, Credit Suisse CEO Ulrich Koerner reassured staff that the bank has a strong capital base and told the employees that he will send regular updates on the progress until it announces its new strategic plan on Oct. 27. 

“I am conscious that there is lots of uncertainty and speculation both outside and within the company. While you will appreciate that I am unable to share details of our transformation plans before Oct. 27, I also want to make sure that you hear from me directly during this challenging period,” Korner told employees in a memo dated Sept. 30. 

According to a Bloomberg report, Credit Suisse is now busy finalizing plans that will likely see sweeping changes to its investment bank and may even result in cutting its workforce by thousands. 

Last week Credit Suisse revealed that it is considering a possible sale of some assets and business as part of its strategic plan. Bloomberg reported that the bank is eyeing selling its securitized products trading unit, and is weighing the sale of its Latin American wealth management operations excluding Brazil. 

The report added that Credit Suisse is also considering reviving the First Boston brand name. 


Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday
Updated 43 min 4 sec ago

Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday

RIYADH: The Saudi main index ticked up in its first trading session of October as investor recession fears subsided.

The Tadawul All Share Index ended 0.72 percent higher to reach 11,487 on Sunday; the parallel market Nomu edged 0.34 percent higher to 19,939.

The main index of Oman also ended Sunday’s session in green, adding 1 percent. 

However, the remaining Gulf stock markets ended in the red, led by the main index of Kuwait which fell 2.7 percent, followed by the Qatari index dropping 1.2 percent.

Outside the Gulf, Egypt's blue-chip index fell 1 percent, with the majority of its stocks falling.

In the energy sector, Brent crude reached $87.57 per barrel, while WTI crude traded at $81.87 per barrel as of 9:16 a.m. Saudi time.

Stock news

Mouwasat Medical Services Co. has completed the acquisition of 51 percent of Jeddah Doctors Co. in a SR102 million ($27 million) deal.

Najran Cement Co. said it will distribute cash dividends of SR0.25 per share to shareholders in the first half of 2022.

Unitholders of Derayah Financial are set to receive SR0.16 per share in cash dividends for the third quarter of 2022.

Arab National Investment Co. has changed its name to ANB Capital Co. in compliance with Capital Market Law issued by Royal Decree.

Leejam Sports Co. opened a new Ladies Xpress Fitness Center in Riyadh on Oct. 2, bringing the total number of its centers inside and outside the Kingdom to 154. 

Sumou Real Estate Co. signed an agreement to develop an over 3 million square meter plot of land in Riyadh with Adeer Asar Real Estate Co.

Calendar

October 5, 2022

End of of IPO book-building process

OPEC+ meeting


Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months

Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months
Updated 03 October 2022

Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months

Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months

RIYADH: Saudi Exchange’s market capitalization jumped over 7.5 percent to reach SR10.8 trillion ($2.8 trillion) at the end of the first nine months of the year compared to a year earlier.

This comes despite the total value of shares traded during the first nine months falling by 21.5 percent from the previous year to SR1.4 trillion, while the total volume traded decreased by 37 to reach SR35.35 billion, the latest Saudi Exchange data revealed.

Tadawul All Share Index closed at 11,405 points at the end of the first nine months of 2022, down 90.44 points or 0.79 percent from last year’s close.

The highest close level for the index during the period was 13,820.35 points on May 8.

The total number of transactions executed decreased by 4.25 percent during the same period and reached SR68 million compared to 2021.

The Number of trading days during the third quarter of 2022 was 184, compared with 185 during the first nine months of 2021.