ADNOC Gas signs 10-year LNG deal with Indian gas company

The 10-year agreement will see the subsidiary of Abu Dhabi National Oil Co. providing India's leading natural gas company with 0.5 million metric tonnes of LNG per annum. Supplied
The 10-year agreement will see the subsidiary of Abu Dhabi National Oil Co. providing India's leading natural gas company with 0.5 million metric tonnes of LNG per annum. Supplied
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Updated 30 January 2024
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ADNOC Gas signs 10-year LNG deal with Indian gas company

ADNOC Gas signs 10-year LNG deal with Indian gas company

RIYADH: India’s state-owned energy firm, GAIL, will receive a liquefied natural gas supply following the conclusion of a long-term purchase deal with Abu Dhabi’s ADNOC Gas.   

The 10-year agreement will see the subsidiary of Abu Dhabi National Oil Co. providing India’s leading natural gas company with 0.5 million metric tonnes of LNG per annum, according to a statement.    

This move is expected to fortify India’s energy security, foster economic collaboration, and propel both GAIL and ADNOC into new realms of strategic partnership, the release added.     

Simultaneously, the deal will fuel GAIL’s strategic growth objectives to cater to its downstream customers in the rapidly evolving natural gas landscape of the Asian country.      

Sandeep Kumar Gupta, chairman and managing director at GAIL, said: “This long-term LNG deal with ADNOC by GAIL will contribute to bridging the gap in India’s demand and supply of natural gas and will open more avenues of strategic partnership between GAIL and ADNOC in other areas of energy domain.”     

He further explained that the contract will help India move toward the government’s objective of enhancing the share of natural gas in the country’s energy basket to 15 percent.     

On a company level, the deal will help GAIL expand its LNG portfolio to better serve its diverse consumer profile, the chairman added.  

According to the terms of the agreement, deliveries will commence across the country starting in 2026.  

“This long-term LNG supply agreement with GAIL India marks a significant step forward in our commitment to continue providing reliable and sustainable energy solutions to our partners and customers around the world,” said Ahmed Mohamed Alebri, CEO of ADNOC Gas.   

“India continues to be a key market for ADNOC Gas, and this latest supply agreement underscores our ongoing dedication to fostering long-term partnerships that promote responsible energy consumption,” he added.   

Furthermore, this development between the two firms is expected to strengthen the already robust cultural and economic bonds between the UAE and India.    

Headquartered in New Delhi, GAIL owns and operates a network of over 16,000 km of natural gas pipelines spread across the country, with concurrent efforts to expand its reach further. 

The deal also follows an agreement made in 2022 between GAIL and ADNOC. Both parties agreed to explore collaboration opportunities, including GAIL purchasing LNG from ADNOC for various durations, ranging from short term to medium and long-term. 

Additionally, the agreement follows several recent international deals for the sale of LNG signed by ADNOC Gas. These include contracts with the Japan Petroleum Exploration Corp. Ltd., Total Energies, the Indian Oil Corp., and PetroChina.


Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows
Updated 46 sec ago
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Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

Egypt’s non-oil private sector shrinks more slowly in November, PMI shows

CAIRO: Conditions in Egypt’s non-oil private sector declined more slowly in November as output and new orders dropped at a slower pace, according to the latest Purchasing Managers’ Index (PMI) data from S&P Global.

The PMI edged up to 49.2 in November from 49 in October, inching closer to the 50 threshold that separates growth from contraction. Despite the improvement, the index still indicated a marginal downturn in business conditions.

“Declines in output and new business slowed across the non-oil sector in November, indicating that business conditions are close to stabilising,” said S&P economist David Owen.

Output levels fell for the third consecutive month, attributed to persistently weak customer demand. However, some firms reported a pick-up in new work, hinting at signs of recovery.

The output sub-index improved to 49.1 from 47.9 in October, while the new orders sub-index climbed to 48.7 from 47.6.

The manufacturing sector showed modest growth in goods orders, which helped offset declines in construction, wholesale & retail, and services.

Employment numbers decreased in November, their first reduction after four months of expansion. Companies cited reduced sales volumes and weaker confidence as reasons for not replacing voluntary leavers.

Input prices, at 55.9, rose at the slowest pace since July, with lower wage growth contributing to a four-month low in cost inflation. However, purchase prices continued to climb, partly due to a stronger US dollar.

Firms remained cautious about future business activity. Output expectations for the year ahead, at 50.5, was the second-lowest the series’ history.


Oil Updates – prices nudge higher ahead of OPEC+ meeting

Oil Updates – prices nudge higher ahead of OPEC+ meeting
Updated 14 min 39 sec ago
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Oil Updates – prices nudge higher ahead of OPEC+ meeting

Oil Updates – prices nudge higher ahead of OPEC+ meeting

SINGAPORE: Oil prices nudged higher on Tuesday but remained within a narrow trading range, as traders awaited the outcome of an OPEC+ meeting later this week.

Brent crude futures rose 31 cents, or 0.4 percent, to $72.14 a barrel by 10:04 a.m. Saudi time, after dropping 1 cent in the previous session. US West Texas Intermediate crude climbed 26 cents, or 0.4 percent, to $68.36, following a 10 cent gain on Monday.

Sources from the producer group said it will extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting.

“Given a rise in compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and indications in press reports, we assume an extension of OPEC+ production cuts till April,” Goldman Sachs analysts said in a note.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, has been looking to unwind production cuts by the first quarter of 2025. However, the outlook for surplus supply has put pressure on prices. The group accounts for about half of the world’s oil production.

“I think there’s no other option but to defer it,” Priyanka Sachdeva, a senior market analyst at Phillip Nova said, adding that it could only be for just a month or so as there is a lot of pressure from participating nations to ramp up output.

Amid a lack of bullish catalysts and lacklustre demand, Sachdeva expects oil prices to trade in a limited range with a bias toward the downside.

The consumption outlook remains weak with China’s crude imports expected to peak as soon as next year as transport fuel demand begins to decline for the world’s top crude buyer, researchers and analysts said, further exacerbating the gap between demand and supply.

Concerns that the US Federal Reserve may not cut rates at its December meeting have also capped oil prices, offsetting positive signals from China, where the purchasing managers’ index rose to a seven-month high in November.

Oil prices on both sides of the Atlantic fell more than 3 percent last week.

Federal Reserve Governor Christopher Waller, whose views are often a bellwether for US monetary policy, said he was inclined to support another rate cut this month, but Atlanta Federal Reserve President Raphael Bostic maintained that the Fed still needed to consider upcoming jobs data.

In the Middle East, holes continued to appear in a US-brokered ceasefire between Israel and militant group Hezbollah, with nine people killed in strikes on two southern Lebanese towns shortly after Hezbollah fired missiles on an Israeli military position in the disputed Shebaa Farms area on Monday.

US crude oil stockpiles are expected to have fallen last week while gasoline and distillate inventories likely rose, a preliminary Reuters poll showed on Monday. The American Petroleum Institute and Energy Information Administration will release weekly data on Tuesday and Wednesday, respectively.


Saudi PMI hits 59 in November as non-oil sector grows 

Saudi PMI hits 59 in November as non-oil sector grows 
Updated 03 December 2024
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Saudi PMI hits 59 in November as non-oil sector grows 

Saudi PMI hits 59 in November as non-oil sector grows 
  • Business activity saw its sharpest rise in 16 months, with firms linking the surge to stronger demand, higher customer volumes, and successful marketing campaigns
  • Employment growth also surged, with companies expanding their workforce at the second-fastest pace in over a decade, driven by the need to manage rising workloads

RIYADH: Saudi Arabia’s non-oil private sector ended November with robust momentum, as business activity expanded at its fastest pace since July 2023, latest business survey showed. 

The Riyad Bank Saudi Arabia Purchasing Managers’ Index rose to 59.0 in November from 56.9 in October, marking the fourth consecutive monthly increase, buoyed by accelerated growth in new orders, purchasing activity, and staff recruitment.  

The headline PMI — calculated as a weighted average of sub-indices covering new orders, output, employment, supplier delivery times, and stock levels — reflected a substantial improvement in operating conditions, with all five components contributing to the uptick. 

Naif Al-Ghaith, chief economist at Riyad Bank, said: “The strong growth in Saudi Arabia’s non-oil private sector helped the PMI to reach 59.0 in November, demonstrating the continued success of economic diversification efforts.”  

He added: “This robust expansion, marked by accelerated output and demand, reflects the increasing capacity of non-oil sectors to contribute to economic activity independently of oil price fluctuations.” 

Business activity saw its sharpest rise in 16 months, with firms linking the surge to stronger demand, higher customer volumes, and successful marketing campaigns. New order inflows, including foreign sales, rebounded after a modest pullback in the previous survey period. 

Employment growth also surged, with companies expanding their workforce at the second-fastest pace in over a decade, driven by the need to manage rising workloads. 

“Employment growth indicates a rising capacity of non-oil sectors to absorb labour, further supporting socioeconomic objectives like increasing national employment,” Al-Ghaith noted. 

Firms ramped up input purchases at the strongest rate since March to build inventories in anticipation of higher sales. However, this strained supply chains, resulting in the slowest improvement in vendor performance in 15 months. 

Inflationary pressures  

The report noted that the sector’s rapid expansion brought inflationary pressures to the forefront. Input costs rose at the sharpest pace in over four years, driven by higher wages, geopolitical tensions, and increased transport costs. Wage inflation hit a ten-year high, while firms raised their selling prices at the fastest rate since January to offset these pressures. 

“Stronger purchasing activity and inventory expansion suggest businesses are gearing up for continued growth in demand,” Al-Ghaith said.  

“This performance aligns with broader economic trends showing Saudi Arabia’s ability to attract foreign investments, boost consumer confidence, and enhance trade partnerships,” he added. 

The strong November PMI underscores the resilience of Saudi Arabia’s non-oil economy despite global uncertainties. Companies remain optimistic about future growth, supported by government initiatives to diversify the economy under Vision 2030. 

“Maintaining this momentum will be essential to achieving Vision 2030 goals and ensuring long-term economic growth,” Al-Ghaith concluded.


Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group

Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group
Updated 02 December 2024
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Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group

Saudi Arabia to strengthen healthcare through partnership with China’s BGI Group

JEDDAH: Saudi Arabia is poised to bolster its healthcare system through a strategic new partnership with China’s BGI Group. The collaboration will focus on localizing medical services, improving supply chains, and advancing preventive care to better serve the Kingdom’s population.

On Dec. 2, the Public Investment Fund’s fully owned National Unified Procurement Co. signed a memorandum of understanding with Shenzhen-based BGI Group. The partnership is aimed at enhancing healthcare cooperation and leveraging BGI’s cutting-edge expertise to support Saudi Arabia in delivering comprehensive, high-quality healthcare services to its citizens.

The signing ceremony, held in China, was attended by Saudi Minister of Health Fahad bin Abdulrahman Al-Jalajel, who is on an official visit to the country.

The agreement aligns with the goals of Saudi Arabia’s Healthcare Sector Transformation Program, which aims to modernize and integrate the Kingdom’s medical system.

The transformation effort prioritizes innovation, financial sustainability, and disease prevention, while expanding access to healthcare, enhancing e-health services, and improving care quality in line with international standards.

As part of the MoU, Nupco and BGI will explore opportunities for direct collaboration in developing integrated logistics services for biological samples. This will help strengthen the infrastructure of Saudi Arabia’s healthcare sector.

Al-Jalajel emphasized that Saudi Arabia is emerging as a global hub for digital health and innovation, with the partnership with BGI underscoring the Kingdom’s commitment to addressing global health challenges.

The minister’s visit to China is part of broader efforts to deepen health cooperation and reinforce Saudi Arabia’s position as a global center for health innovation — aligning with both the Health Transformation Program and Vision 2030.

This MoU follows a visit in November by a Nupco delegation to BGI Genomics. During the visit, the group, including Nupco CEO Fahad Al-Shebel, was introduced to BGI Genomics’ innovative technologies in proactive disease prevention, multi-omics research, and smart laboratory solutions. BGI’s leadership, including CEO Yin Ye and CEO of BGI Genomics Zhao Lijian, welcomed the delegation, marking a significant milestone in the two organizations’ growing collaboration.

The visit also reinforced the ongoing strategic partnership between the two companies, which began with efforts to combat the COVID-19 pandemic.

During discussions, both sides expressed a shared commitment to expanding cooperation in areas like genetic testing, laboratory expansion, and medical sample transportation — all aimed at advancing life sciences.

BGI highlighted that both parties agreed to enhance localized genetic testing services in Saudi Arabia, contribute to the Kingdom’s public health and precision medicine initiatives, and make significant contributions to improving public health outcomes.

This partnership marks a key step in the Kingdom's healthcare transformation journey, reinforcing its vision to provide world-class medical services while advancing technological innovation in the sector.


Saudi Green Initiative Forum to focus on climate resilience and sustainability 

Saudi Green Initiative Forum to focus on climate resilience and sustainability 
Updated 02 December 2024
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Saudi Green Initiative Forum to focus on climate resilience and sustainability 

Saudi Green Initiative Forum to focus on climate resilience and sustainability 

RIYADH: Nature-based solutions for climate resilience and community adaptation will take center stage at the fourth edition of the Saudi Green Initiative Forum, set to run from Dec. 3 to 4 in Riyadh. 

The event, held alongside the 16th Conference of the Parties to the UN Convention to Combat Desertification, aims to address pressing global environmental challenges, including land rehabilitation, carbon reduction innovations, and sustainable financing. 

The forum will also address the role of natural solutions in helping communities adapt to climate change and the need to enhance efforts to preserve the Kingdom’s rich biodiversity, according to a statement. 

This aligns with the UNCCD’s goal of restoring 15 billion hectares of land by 2030, as a recent UN study indicates that 90 percent of the Earth’s soil is at risk of degradation by 2050. 

During the Riyadh COP16 conference, the SGI exhibition will open its doors to visitors to learn about the Kingdom’s efforts in reducing emissions, planting trees, and protecting the environment through innovative, interactive experiences. 

The exhibition will provide valuable insights into the Kingdom’s qualitative initiatives, focusing on three key goals – reducing carbon emissions by 278 million tons annually by 2030, planting 10 billion trees, and protecting 30 percent of Saudi Arabia’s land and marine areas.

It will also host the “Saudi Green Initiative Dialogues” series, launched in 2023 and returning this year with participation from international experts. The discussions will cover the latest trends and innovations in climate and sustainability, fostering new opportunities for a more sustainable future. 

Launched in 2021, the SGI aims to engage all sectors of society in climate action and support Saudi Arabia’s goal of achieving net zero emissions by 2060. 

The initiative underscores the Kingdom’s climate efforts, addressing challenges like rising temperatures, low rainfall, sand and dust storms, and desertification, all aimed at enhancing quality of life and building a sustainable future for generations to come. 

Saudi Arabia’s hosting of COP16 highlights its commitment to environmental protection. As the largest multilateral conference the Kingdom has ever hosted, it mobilizes global cooperation to drive the necessary changes and actions for the future of the planet.