Gulf nations invest in Latin America energy projects

Gulf nations invest in Latin America energy projects
The projects currently being discussed will probably be followed by many more in the coming years, and will encompass wind power, hydrogen and synthetic biofuels (Supplied)
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Updated 01 June 2023
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Gulf nations invest in Latin America energy projects

Gulf nations invest in Latin America energy projects
  • Saudi Arabia, UAE among most promising partners as region strives to meet needs brought by economic development

SAO PAULO: As Latin American countries have been moving to enhance their energy infrastructure and meet the needs brought by economic development, investors worldwide have been demonstrating their desire to explore the region’s new opportunities.

Gulf nations, especially Saudi Arabia and the UAE, have been among the most promising partners in the region’s upcoming energy endeavors.

The most recent announcement regarding Latin American-Middle Eastern energy partnerships was made last week, when Paraguayan authorities met with their Emirati counterparts and discussed the terms of a memorandum on economic cooperation. Partnerships in renewable energy projects were part of the deal.

With three hydroelectric power plants, Paraguay produces much more electricity than it needs, and exports the excess — more than 60 percent — to Brazil and Argentina.

“But in eight or 10 years, our situation will be much less comfortable. We’ll need to invest in electricity production, something that we’ve never thought about over the past 40 years,” Victorio Oxilia, an energy expert and professor at the National University of Asuncion, told Arab News.

Not only will demand from the population grow, but new industries will implement projects in Paraguay and require more energy, he added.

“At the same time, we need to diversify our sources. All our hydroelectric plants depend on the River Parana. Severe droughts can easily impact power generation,” he said.

Investing in solar energy plants is the natural response to those challenges. A government strategic plan for 2040 established it as a priority, Oxilia said, adding: “It’s a resource that abounds in the whole territory, so it’s a great candidate to be developed not only by Paraguay’s public energy company, but also by private agents.”

The projects currently being discussed will probably be followed by many more in the coming years, and will encompass wind power, hydrogen and synthetic biofuels.

A recent law, promulgated in January, determined a series of incentives for renewable energy production.

“There’s great potential when it comes to substituting the fossil fuels we now use in transportation and which we have to import,” Oxilia said.

Paraguay’s economy has been growing over the past few years thanks to agriculture — the nation is a major grain producer and exporter.

That is opening new opportunities in different areas, and may also include green energy in the future, Oxilia said.

“The Chaco region is near the big lithium reserves in Chile and Argentina. It’s a region that … can concentrate a cluster of lithium battery manufacturers,” he added.

In January, during Abu Dhabi Sustainability Week, Paraguayan officials met with directors of the Abu Dhabi Fund for Development, who promised to fund — or at least lend money for — renewable energy projects in the South American country.

On the same occasion, Costa Rican authorities discussed with Emirati officials potential partnerships in electricity production.

In an interview with local news website La Republica, Environment and Energy Minister Franz Tattenbach said the Central American nation needs to transform its transportation sector and adopt electric buses, for instance.

Mario Alvarado Mora, who directs the Costa Rican Association of Energy Producers, told Arab News that 99 percent of the electricity produced in the country is environmentally clean, “but two-thirds of the nation’s energy come from nonrenewable sources and are used mostly in transportation.”

He added: “Costa Rica has a great challenge, and also a great opportunity, to decarbonize its energy mix and use renewable resources.”

The energy sector is pushing the government for legislative changes in order to increase legal safety and attract more foreign investors, he said. A bill containing some of these changes is being analyzed in Congress.

In Argentina, where both Saudi Arabia and the UAE are planning to invest in energy endeavors, the most pressing needs concern not so much energy production but its distribution infrastructure, said Juan Jose Carbajales, a professor at Jose Clemente Paz National University in Buenos Aires.

“We lack pipelines to take crude and natural gas from Vaca Muerta deposits to regional markets. We also need to expand our high-voltage grid,” he told Arab News, referring to the giant geological formation in Neuquen, Rio Negro, La Pampa and Mendoza provinces that contains major reserves of oil and gas.

Carbajales lamented that there are many projects for wind and hydroelectric power plants currently suspended due to the lack of distribution infrastructure.

“That situation also limits the expansion of hydrogen fuel because electricity is needed in its production,” he added.

In April, Argentina signed a $500 million deal with the Saudi Fund for Development for food and energy projects, including the gas pipeline Nestor Kirchner.

Scheduled to be completed in June, the pipeline will connect Vaca Muerta to Buenos Aires province. The SFD loan will also fund transmission lines.

In 2022, the sovereign funds of Saudi Arabia, Qatar, Abu Dhabi and Kuwait announced that they would invest $1 billion in Argentina until the end of 2023. Some of the partnerships include energy generation and infrastructure.

Such investments are fundamental for Argentina given that it is facing serious macroeconomic challenges, including high inflation.

“Those problems make it harder for the country to have access to the international capital markets,” Carbajales said.

Another Latin American country with great plans involving energy — especially renewable energy — is Mexico, which in February disclosed its project for that sector and invited nations worldwide to invest in it during the inauguration of a solar plant in the state of Sonora.

Also in February, Saudi Minister of Economy and Planning Faisal Al-Ibrahim told Mexican magazine Expansion that investments in energy were part of the potential partnerships between the two countries.

Lawyer and energy expert Marcial Diaz told Arab News: “Mexico doesn’t have the means to make the necessary investments in projects connected to wind power, solar power and the market of fuels.”

He added that Mexico imports almost 70 percent of its fuel, so a transformation in that area is fundamental, with private investors directly collaborating in new endeavors.

Skeptical about the current administration’s ability to draw foreign investments for energy projects, Diaz said such plans usually take a long time, “so endeavors being conceived now will only be carried out during the next administration.”

He added: “No Latin American country is self-sufficient in energy terms, so it’s important for all of us to count on long-term investments.”

 


Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 

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Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 

Public Investment Fund creates Balad Development Co. to develop historic Jeddah area 

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Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

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Updated 34 min 20 sec ago
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Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

Saudi Tourism Authority joins forces with Huawei to boost Chinese tourism

RIYADH: In a bid to enhance the experience for travelers and bolster Chinese visits to Saudi Arabia, the Saudi Tourism Authority has collaborated with Huawei Mobile Services and its advertising branch, Petal Ads. 

The partnership was cemented through a memorandum of understanding signed during the Approved Destination Status launch ceremony in Beijing, according to a press release. 

Fahd Hamidaddin, CEO of the Saudi Tourism Authority, signed the deal alongside Walter Ji Rengui, president of Huawei Consumer Cloud Service Global Ecosystem Development & Operations. 

The primary objective of this collaboration is to reshape the way visitors explore Saudi Arabia by digitizing travel services, with a specific focus on attracting Chinese tourists, the press release added. 

Choon Yang Quek, chief technology officer at the STA, stated: “The partnership with Huawei Mobile Services and Petal Ads is part of Saudi’s innovative approach to marketing tourism and enhancing visitor experiences.”  

He added: “By joining forces with Huawei, known for its strong consumer connections, and combining it with Saudi’s commitment to visitor satisfaction, we can now reach new audiences more effectively through established Huawei channels and gain deeper insights into Chinese travelers to tailor their Saudi journeys.” 

This agreement reflects the ongoing partnership between the two entities and their shared dedication to showcasing Saudi Arabia as a dynamic destination to Chinese audiences, the press release added. 

Alhasan Al-Dabbagh, president of Asia-Pacific markets at the STA, said: “By incorporating Huawei’s cutting-edge technology into the travel experience, we can leverage established channels to reach a wider audience and gain a deeper understanding of potential visitors.” 

Through the integration of Huawei Mobile Services’ advanced technology solutions, tourists visiting Saudi Arabia can anticipate a smarter travel experience. 

This includes features such as seamless navigation, language translation services, and augmented reality-guided tours, all aimed at helping tourists make the most of their time while exploring the Kingdom. 

The partnership is part of the STA’s efforts to enhance the tourist experience through technology while highlighting Saudi Arabia’s cultural heritage, landscapes, and hospitality. 

This comes as the Kingdom aims to deliver personalized experiences for Chinese tourists, with readily available support throughout their trip. 

In partnership with Petal Ads, the STA looks to attract more Chinese tourists to discover Saudi Arabia’s attractions.  


OIC plans cooperation framework on contract farming among members   

OIC plans cooperation framework on contract farming among members   
Updated 44 min 55 sec ago
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OIC plans cooperation framework on contract farming among members   

OIC plans cooperation framework on contract farming among members   

RIYADH: A new framework to help boost food security across the Muslim world will be unveiled at the next meeting of the Organization of Islamic Cooperation, set to be held in 2025, it has been announced.

The OIC confirmed the move at its latest gathering in Doha on Tuesday, as it called for a new business model entered on contract farming for its member nations.    

This initiative is expected to be in the spotlight at the next OIC ministerial conference due to in the capital of Chad in 2025, with the exact date yet to be announced.  


Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 
Updated 03 October 2023
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Monsha’at, E-Commerce Council organize tour to promote online trade 

Monsha’at, E-Commerce Council organize tour to promote online trade 

RIYADH: Saudi Arabia can expect a considerable penetration of online trading as the General Authority for Small and Medium Enterprises, or Monsha’at, organized the third phase of its tour with the E-Commerce Council on Monday. 

According to the Saudi Press Agency, the tour concludes on Wednesday and has witnessed the participation of service providers and e-commerce specialists. 

The tour included discussions on developing an environment conducive to developing e-commerce in the Kingdom and the platform's role in various government sectors, including transportation, rural and municipal affairs, housing and SMEs. 


Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US
Updated 03 October 2023
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Saudi Arabia dispatches first crude iron shipment to US

Saudi Arabia dispatches first crude iron shipment to US

RIYADH: Saudi Arabia has strengthened its position in global supply chains after a ship loaded with 37,000 tons of crude iron set sail from the Port of Jazan City to New Orleans, US.

According to the Saudi Press Agency, this product marks a significant milestone as it is the first to be manufactured within the region, produced at the Advanced Smelting Industries Co. factory in Jazan.

Crude iron, also known as pig iron, is a more brittle form of the material and is used in steel production.

Traditionally recognized for its vast oil reserves, the Gulf nation has been proactively pursuing economic diversification, as outlined in Vision 2030.

The successful production and export of crude iron are crucial steps toward achieving this goal.

The Port of Jazan City boasts extensive capabilities and advanced logistical transportation services, solidifying its status as a pivotal trade hub in Saudi Arabia.

Positioned as one of the region’s most modern ports, it lies along the international trade route through the Red Sea, in close proximity to the Bab Al-Mandab Strait, various African nations, and the maritime Silk Road.

Consequently, this port is a crucial gateway for the southern regions and neighboring countries.