Dubai's Union Properties dismisses all talk of going private, de-listing from DFM | Property – Gulf News
The Dubai developer Union Properties has moved quickly to scotch rumors that it was going private and delisting from the Dubai Financial Market.
On Thursday morning, the developer of Motor City and Dubai Autodrome clarified that “it denies the presence of such intention or study to transform the company into a private joint stock company.
This followed a comment by a Union Properties’ staffer made to a TV channel that there were such plans. The developer had come out with a small profit in the first quarter of 2021, and will be hoping to build on that in the months to come. The first quarter gains were delivered through better cost control and the refinancing of a near Dh1 billion loan from Emirates NBD.
But there had been talk in the market that Union Properties could turn private, and that this would hasten the company’s return to more solid ground profit-wise and operationally. The Dubai Financial Market is already seeing two such de-listings – DXB Entertainments (being acquired in full by Meraas) and Emaar Malls (by Emaar Properties).
Thursday 20 May 2021
#Iran's Rouhani says U.S. will lift sanctions, as another official denies it | Reuters
Iran's Rouhani says U.S. will lift sanctions, as another official denies it | Reuters
Iran’s president said on Thursday that the United States was ready to lift sanctions on his country’s oil, banking and shipping sectors that were reimposed after former U.S. President Donald Trump exited a 2015 nuclear deal three years ago.
Iran and world powers have been in talks since April on reviving the deal and the EU official leading the discussions said on Wednesday he was confident a deal would be reached.
But European diplomats said success was not guaranteed and very difficult issues remained, while a senior Iranian official contradicted the president.
“The talks in Vienna are about minor issues. They have accepted to lift sanctions on Iran’s oil and shipping sectors as well as sanctions on the Central Bank and others,” President Hassan Rouhani said during a televised cabinet meeting.
Rouhani was speaking a few weeks ahead of Iran’s presidential election, in which the revival of the nuclear accord could boost moderate candidates close to him.
Trump withdrew from the deal in 2018, prompting Iran to steadily overstep the accord’s limits on its nuclear programme designed to make it harder to develop an atomic bomb - an ambition Tehran denies.
Iran’s top nuclear negotiator Abbas Araqchi said on Wednesday that some “key issues” needed to be discussed further.
And a senior Iranian official told the country’s Press TV that Washington had no intention to “completely lift any sanctions on the oil, banking, finance and energy sectors”.
“Washington intends to temporarily suspend some of the sanctions over a long period of time and in various steps,” said the official, who was not identified by the station run by hardliners and which is close to the Revolutionary Guards.
Oil prices were on course for a third day of losses on Thursday after diplomats said progress was made towards a deal to lift sanctions on Iran, which could boost crude supply.
Iran’s president said on Thursday that the United States was ready to lift sanctions on his country’s oil, banking and shipping sectors that were reimposed after former U.S. President Donald Trump exited a 2015 nuclear deal three years ago.
Iran and world powers have been in talks since April on reviving the deal and the EU official leading the discussions said on Wednesday he was confident a deal would be reached.
But European diplomats said success was not guaranteed and very difficult issues remained, while a senior Iranian official contradicted the president.
“The talks in Vienna are about minor issues. They have accepted to lift sanctions on Iran’s oil and shipping sectors as well as sanctions on the Central Bank and others,” President Hassan Rouhani said during a televised cabinet meeting.
Rouhani was speaking a few weeks ahead of Iran’s presidential election, in which the revival of the nuclear accord could boost moderate candidates close to him.
Trump withdrew from the deal in 2018, prompting Iran to steadily overstep the accord’s limits on its nuclear programme designed to make it harder to develop an atomic bomb - an ambition Tehran denies.
Iran’s top nuclear negotiator Abbas Araqchi said on Wednesday that some “key issues” needed to be discussed further.
And a senior Iranian official told the country’s Press TV that Washington had no intention to “completely lift any sanctions on the oil, banking, finance and energy sectors”.
“Washington intends to temporarily suspend some of the sanctions over a long period of time and in various steps,” said the official, who was not identified by the station run by hardliners and which is close to the Revolutionary Guards.
Oil prices were on course for a third day of losses on Thursday after diplomats said progress was made towards a deal to lift sanctions on Iran, which could boost crude supply.
#Qatar telecom firm Ooredoo appoints first-ever woman CEO to head Oman operations | ZAWYA MENA Edition
Qatar telecom firm Ooredoo appoints first-ever woman CEO to head Oman operations | ZAWYA MENA Edition
Qatar telecom company Ooredoo has appointed its first female CEO to lead its operations in Oman, one of the company’s major markets in the Middle East region.
Noor Al Sulaiti assumed her new role today, on May 20, replacing Ian Dench, who has resigned after serving for 15 years within the Ooredoo Group, according to a statement.
The company also announced the appointment of another CEO, Bassam Yousef Al Ibrahim, to oversee the business in Algeria.
The new appointments come as Ooredoo looks to push forward with its digital transformation journey and create a more modern, efficient and agile way of work, according to Sheikh Faisal Bin Thani Al Thani, chairman of Ooredoo Group.
“I am very happy to announce the appointment of two of our outstanding talents to lead our companies in Oman and Algeria… I am particularly proud of the appointment of the first female CEO, one of many Ooredoo female leaders who have stepped up and delivered during the most difficult times,” Al Thani said.
Qatar telecom company Ooredoo has appointed its first female CEO to lead its operations in Oman, one of the company’s major markets in the Middle East region.
Noor Al Sulaiti assumed her new role today, on May 20, replacing Ian Dench, who has resigned after serving for 15 years within the Ooredoo Group, according to a statement.
The company also announced the appointment of another CEO, Bassam Yousef Al Ibrahim, to oversee the business in Algeria.
The new appointments come as Ooredoo looks to push forward with its digital transformation journey and create a more modern, efficient and agile way of work, according to Sheikh Faisal Bin Thani Al Thani, chairman of Ooredoo Group.
“I am very happy to announce the appointment of two of our outstanding talents to lead our companies in Oman and Algeria… I am particularly proud of the appointment of the first female CEO, one of many Ooredoo female leaders who have stepped up and delivered during the most difficult times,” Al Thani said.
New CEOs
Al Sulaiti has more than 17 years of experience in the telecom industry. She has been working for Ooredoo since 2004.
Recently, she served as the CEO of an Ooredoo subsidiary, Starlink, where she was recognized for rebranding and expanding the company’s portfolio to compete in the e-commerce, retail and ICT markets.
She also used to work as the general manager of Phono and Fasttelco in Kuwait.
In Algeria, Al Ibrahim was credited for his performance during the coronavirus pandemic. Prior to his CEO appointment, Al Ibrahim served as Ooredoo’s deputy general manager in March 2020.
“Under his leadership, Ooredoo Algeria delivered a healthy set of results during the first quarter of 2021, despite a challenging macroeconomic environment,” the statement said.
Al Sulaiti has more than 17 years of experience in the telecom industry. She has been working for Ooredoo since 2004.
Recently, she served as the CEO of an Ooredoo subsidiary, Starlink, where she was recognized for rebranding and expanding the company’s portfolio to compete in the e-commerce, retail and ICT markets.
She also used to work as the general manager of Phono and Fasttelco in Kuwait.
In Algeria, Al Ibrahim was credited for his performance during the coronavirus pandemic. Prior to his CEO appointment, Al Ibrahim served as Ooredoo’s deputy general manager in March 2020.
“Under his leadership, Ooredoo Algeria delivered a healthy set of results during the first quarter of 2021, despite a challenging macroeconomic environment,” the statement said.
#Dubai's Emirates NBD sells $750mln in AT1 bonds at 4.25% | ZAWYA MENA Edition
Dubai's Emirates NBD sells $750mln in AT1 bonds at 4.25% | ZAWYA MENA Edition
Emirates NBD, Dubai's largest lender, sold $750 million in Additional Tier 1 bonds on Thursday after receiving more than $1.75 billion in orders for them, a document showed.
It launched the bonds at a yield of 4.25% after giving initial price guidance of around 4.5%, the document from one of the banks on the deal showed.
Emirates NBD Capital, First Abu Dhabi Bank, JPMorgan, HSBC, NCB Capital and Standard Chartered arranged the deal.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them in after a specified period.
ENBD's issuance will be non-callable for six years.
The deal follows several other AT1 deals from the region this year, including Dubai Islamic Bank's $500 million sukuk issue last month, which set a record low rate for the perpetual debt instrument out of the Gulf, at 3.375%.
ENBD sold $750 million in five-year bonds in January. It last sold AT1 bonds last summer, raising $750 million at 6.125% - the same rate of its prior AT1 bonds issued in March 2019.
Emirates NBD, Dubai's largest lender, sold $750 million in Additional Tier 1 bonds on Thursday after receiving more than $1.75 billion in orders for them, a document showed.
It launched the bonds at a yield of 4.25% after giving initial price guidance of around 4.5%, the document from one of the banks on the deal showed.
Emirates NBD Capital, First Abu Dhabi Bank, JPMorgan, HSBC, NCB Capital and Standard Chartered arranged the deal.
AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them in after a specified period.
ENBD's issuance will be non-callable for six years.
The deal follows several other AT1 deals from the region this year, including Dubai Islamic Bank's $500 million sukuk issue last month, which set a record low rate for the perpetual debt instrument out of the Gulf, at 3.375%.
ENBD sold $750 million in five-year bonds in January. It last sold AT1 bonds last summer, raising $750 million at 6.125% - the same rate of its prior AT1 bonds issued in March 2019.
DXB Entertainments aiming to break even in fourth quarter this year - Arabianbusiness
DXB Entertainments aiming to break even in fourth quarter this year - Arabianbusiness
DXB Entertainments is aiming to break even by the fourth quarter of this year as the owner of the region’s largest theme park looks towards a positive recovery from the Covid-19 rollercoaster of the last 14 months.
DXB Entertainments is the owner of Dubai Parks and Resorts, which comprises three separate theme parks: Motiongate Dubai, Legoland Dubai and Bollywood Parks. It is home to a Legoland Water Park, while the whole complex is connected by Riverland Dubai.
There is also the Lapita Hotel, a Polynesian themed family hotel that is part of the Marriott Autograph Collection as well as a three-star budget Rove Hotel.
The 25 million-square-foot destination was forced to close its doors in March last year as entertainment venues across the country were shuttered as a result of the coronavirus crisis.
DXB Entertainments is aiming to break even by the fourth quarter of this year as the owner of the region’s largest theme park looks towards a positive recovery from the Covid-19 rollercoaster of the last 14 months.
DXB Entertainments is the owner of Dubai Parks and Resorts, which comprises three separate theme parks: Motiongate Dubai, Legoland Dubai and Bollywood Parks. It is home to a Legoland Water Park, while the whole complex is connected by Riverland Dubai.
There is also the Lapita Hotel, a Polynesian themed family hotel that is part of the Marriott Autograph Collection as well as a three-star budget Rove Hotel.
The 25 million-square-foot destination was forced to close its doors in March last year as entertainment venues across the country were shuttered as a result of the coronavirus crisis.
#Dubai outperforms subdued Gulf markets | Reuters
Dubai outperforms subdued Gulf markets | Reuters
Dubai’s stock index was buoyed by gains in property shares in early trade on Thursday, while most other equity markets in the Gulf were subdued in the absence of fresh factors to trade on.
Dubai house prices will rise for the first time in six years this year, supported by a swift vaccine rollout that has lifted hopes for an overall economic recovery, according to a Reuters poll of property analysts.
In Dubai, the main share index gained 1.2%, with blue-chip developer Emaar Properties advancing 2.3%, while its shopping centre unit Emaar Malls climbed 2.6%.
Elsewhere, sharia-compliant lender Dubai Islamic Bank rose 1.5%.
Saudi Arabia’s benchmark index fell 0.3%, with petrochemical firm Saudi Basic Industries losing 1.1%, while Al Rajhi Bank was down 0.4%.
The kingdom’s inflation rate quickened to 5.3% in April from 4.9% the previous month, still reflecting an increase in value-added tax last year, official data showed.
The Abu Dhabi index slipped 0.3%, hit by a 1% fall in the country’s largest lender First Abu Dhabi Bank.
Meanwhile, foreigners opening a company in the United Arab Emirates will no longer need an Emirati shareholder or agent under changes to UAE company law that will go into effect on June 1, state news agency WAM reported on Wednesday.
A previous foreign investment law in 2018 allowed foreigners to own up to 100% of some businesses, and foreigners could already own up to 100% of those registered in designated business parks known as “free zones”.
In Qatar, the benchmark dropped 0.4%, pressured by a 2.2% fall in petrochemical firm Industries Qatar.
Dubai’s stock index was buoyed by gains in property shares in early trade on Thursday, while most other equity markets in the Gulf were subdued in the absence of fresh factors to trade on.
Dubai house prices will rise for the first time in six years this year, supported by a swift vaccine rollout that has lifted hopes for an overall economic recovery, according to a Reuters poll of property analysts.
In Dubai, the main share index gained 1.2%, with blue-chip developer Emaar Properties advancing 2.3%, while its shopping centre unit Emaar Malls climbed 2.6%.
Elsewhere, sharia-compliant lender Dubai Islamic Bank rose 1.5%.
Saudi Arabia’s benchmark index fell 0.3%, with petrochemical firm Saudi Basic Industries losing 1.1%, while Al Rajhi Bank was down 0.4%.
The kingdom’s inflation rate quickened to 5.3% in April from 4.9% the previous month, still reflecting an increase in value-added tax last year, official data showed.
The Abu Dhabi index slipped 0.3%, hit by a 1% fall in the country’s largest lender First Abu Dhabi Bank.
Meanwhile, foreigners opening a company in the United Arab Emirates will no longer need an Emirati shareholder or agent under changes to UAE company law that will go into effect on June 1, state news agency WAM reported on Wednesday.
A previous foreign investment law in 2018 allowed foreigners to own up to 100% of some businesses, and foreigners could already own up to 100% of those registered in designated business parks known as “free zones”.
In Qatar, the benchmark dropped 0.4%, pressured by a 2.2% fall in petrochemical firm Industries Qatar.
JPMorgan Eyes $100 Million Payday on Trade Linked to Aramco Deal - Bloomberg
JPMorgan Eyes $100 Million Payday on Trade Linked to Aramco Deal - Bloomberg
JPMorgan & Chase Co. is set to earn more than $100 million on a recent trade tied to the sale of a stake in Saudi Aramco’s oil pipelines, a windfall that stands out even in the sprawling interest-rate swap market, people familiar with the matter said.
The bank is poised to book gains on a hedging transaction with U.S. investment firm EIG Global Energy Partners LLC, which agreed last month to invest $12.4 billion in the pipelines, the people said. JPMorgan advised Aramco on the deal and was one of two banks that helped it arrange a loan of more than $10 billion offered to the buyers, the people said.
Given the size of the financing, EIG separately entered into a so-called swap deal with JPMorgan to guard against fluctuations in interest rates. JPMorgan is in line for the nine-figure profit after markets moved in its favor, according to the people, who asked not be identified discussing sensitive information.
While buyers in an acquisition this size normally turn to a group of lenders to manage their financing risk, JPMorgan was the sole bank on the hedging transaction, the people said. The size of the return was commensurate with the risk the bank took onto its books as counterparty on the swap, one of the people said.
JPMorgan & Chase Co. is set to earn more than $100 million on a recent trade tied to the sale of a stake in Saudi Aramco’s oil pipelines, a windfall that stands out even in the sprawling interest-rate swap market, people familiar with the matter said.
The bank is poised to book gains on a hedging transaction with U.S. investment firm EIG Global Energy Partners LLC, which agreed last month to invest $12.4 billion in the pipelines, the people said. JPMorgan advised Aramco on the deal and was one of two banks that helped it arrange a loan of more than $10 billion offered to the buyers, the people said.
Given the size of the financing, EIG separately entered into a so-called swap deal with JPMorgan to guard against fluctuations in interest rates. JPMorgan is in line for the nine-figure profit after markets moved in its favor, according to the people, who asked not be identified discussing sensitive information.
While buyers in an acquisition this size normally turn to a group of lenders to manage their financing risk, JPMorgan was the sole bank on the hedging transaction, the people said. The size of the return was commensurate with the risk the bank took onto its books as counterparty on the swap, one of the people said.
Top LNG Exporter #Qatar Undercuts Rivals to Keep Dominating Market - Bloomberg
Top LNG Exporter Qatar Undercuts Rivals to Keep Dominating Market - Bloomberg
The world’s top exporter of liquefied natural gas is ramping up production dramatically and undercutting competitors in a bid to squeeze them out of the market.
Qatar is dropping prices and pushing ahead with a $29 billion project to boost its exports of the fuel by more than 50%, stymieing the prospects of new plants elsewhere. It’s also established a trading team to compete in the nascent spot market and pushing into Asia more aggressively, according to people familiar with the matter.
The strategy marks a shift for Qatar, which has barely raised production in the past five years and traditionally prioritized prices over market share. Increased competition, especially from the U.S. and Australia, has forced the Persian Gulf state to become more nimble and attract buyers in Asia, a hot spot for gas demand.
The global transition to renewable energy is adding to the country’s sense of urgency. While LNG was until recently touted as a bridge from coal and oil to the likes of solar and wind power, it’s falling out of favor with some governments as they step up efforts to slow climate change.
“Qatar’s expansion plan is so huge that there are questions on the need for other supply options,” said Julien Hoarau, head of EnergyScan, the analytics unit of the French utility Engie SA. “It’s still the number one, but the U.S. has never been so close, so Qatar needed to move if it wanted to keep its leading position.”
The U.S. came close to overtaking Qatar’s monthly exports for the first time in April, while Australia has been neck-in-neck with the Middle Eastern nation for the last year, according to ship-tracking data compiled by Bloomberg. As Gulf Coast projects develop, the U.S. is slated to briefly become the world’s top supplier by 2024, before Qatar regains that status later in the decade, according to data from BloombergNEF.
Several factors are playing into Qatar’s hands. China, one of the fastest growing LNG markets, has been reluctant to import more from the U.S. or Australia due to trade and geopolitical tensions.
But Qatar’s main advantage is that it has the world’s lowest production costs thanks to an abundance of easy-to-extract gas, most of it contained in the giant North Field that extends into Iran.
Bonds Coming
Qatar’s state energy company, which may soon sell up to $10 billion of bonds to fund the gas expansion, said the project will be viable even with oil at $20 a barrel, 70% less than current levels. LNG contracts are typically linked to oil.
That’s enabling Qatar Petroleum to set pricing below what other exporters can manage, according to traders. The firm has sold LNG in recent months at around 10% of Brent crude prices, including to China and Pakistan, whereas it used to set the level at 15%.
“Nobody can compete with Qatari costs,” said Jonathan Stern, a senior research fellow at the Oxford Institute of Energy Studies. “They can do whatever they like and everybody will have to respond the way they can. And, especially when the market is in surplus and prices are low, that will impact the competition’s profits.”
QP executives have jetted across Asia over the past few months to ink export deals. Their efforts led in March to a 10-year contract with Beijing-based Sinopec, signed at 10%-10.19% of Brent.
Qatar’s Ministry of Energy and QP didn’t respond to requests for comment.
A few years ago, demand for LNG was projected to rise steeply over the coming decades. Gas emits less carbon dioxide than most other fossil fuels when it’s burned, while renewable-energy projects were still too expensive to power electricity grids, factories and transport on a mass scale.
But solar and wind technology is improving faster than expected, helped in part by massive government green-spending programs triggered by the coronavirus pandemic.
We’re Not Afraid
Even as Qatar seeks to make the most of its assets, there are obstacles to it reaching total domination. Many buyers want a diverse group of suppliers. Russia’s Yamal LNG project and the planned Arctic LNG 2 plant, led by Novatek PJSC, are among those that will remain competitive as Qatar ramps up exports, according to analysts at Citigroup Inc.
The biggest U.S. LNG exporter, Cheniere Energy Inc., said it’s unperturbed by Qatar’s moves. Some importers are attracted by American firms offering more flexible delivery terms and pricing that’s not tied to oil, which has soared almost 30% this year.
“We’re not afraid,” Cheniere’s Chief Commercial Officer Anatol Feygin told investors this month. “We’re part of a sort of diversification of the supply and contracting structure along with Qatar Petroleum and our friends at Novatek.”
Yet U.S. projects are among those most likely to struggle. At least 10, five of them in Texas and four in Louisiana, probably won’t secure enough financing to be completed, according to analysis from BloombergNEF.
Feedstock costs are part of the problem. American companies have to buy gas at around $2.50 per million British thermal units, way above Qatar’s wellhead prices of $0.30 or lower.
New suppliers in the U.S. need spot LNG prices to be at least $7.80 per million Btu in Asia and $6.80 in Europe, said David Thomas, an independent adviser and former head of LNG at Vitol, the world’s largest independent oil trader. For comparison, Asian rates have averaged about $6.80 over the last five years. The economics for producers in Australia and Africa are similar, Thomas said.
“The Qatari strategy appears to be maintaining its global market share and also maximizing sales, before the gas market starts to shrink,” OIES’s Stern said. “It is a competitive and strategic rush. They recognize LNG demand will eventually decline as the world moves forward in the energy transition.”
The world’s top exporter of liquefied natural gas is ramping up production dramatically and undercutting competitors in a bid to squeeze them out of the market.
Qatar is dropping prices and pushing ahead with a $29 billion project to boost its exports of the fuel by more than 50%, stymieing the prospects of new plants elsewhere. It’s also established a trading team to compete in the nascent spot market and pushing into Asia more aggressively, according to people familiar with the matter.
The strategy marks a shift for Qatar, which has barely raised production in the past five years and traditionally prioritized prices over market share. Increased competition, especially from the U.S. and Australia, has forced the Persian Gulf state to become more nimble and attract buyers in Asia, a hot spot for gas demand.
The global transition to renewable energy is adding to the country’s sense of urgency. While LNG was until recently touted as a bridge from coal and oil to the likes of solar and wind power, it’s falling out of favor with some governments as they step up efforts to slow climate change.
“Qatar’s expansion plan is so huge that there are questions on the need for other supply options,” said Julien Hoarau, head of EnergyScan, the analytics unit of the French utility Engie SA. “It’s still the number one, but the U.S. has never been so close, so Qatar needed to move if it wanted to keep its leading position.”
The U.S. came close to overtaking Qatar’s monthly exports for the first time in April, while Australia has been neck-in-neck with the Middle Eastern nation for the last year, according to ship-tracking data compiled by Bloomberg. As Gulf Coast projects develop, the U.S. is slated to briefly become the world’s top supplier by 2024, before Qatar regains that status later in the decade, according to data from BloombergNEF.
Several factors are playing into Qatar’s hands. China, one of the fastest growing LNG markets, has been reluctant to import more from the U.S. or Australia due to trade and geopolitical tensions.
But Qatar’s main advantage is that it has the world’s lowest production costs thanks to an abundance of easy-to-extract gas, most of it contained in the giant North Field that extends into Iran.
Bonds Coming
Qatar’s state energy company, which may soon sell up to $10 billion of bonds to fund the gas expansion, said the project will be viable even with oil at $20 a barrel, 70% less than current levels. LNG contracts are typically linked to oil.
That’s enabling Qatar Petroleum to set pricing below what other exporters can manage, according to traders. The firm has sold LNG in recent months at around 10% of Brent crude prices, including to China and Pakistan, whereas it used to set the level at 15%.
“Nobody can compete with Qatari costs,” said Jonathan Stern, a senior research fellow at the Oxford Institute of Energy Studies. “They can do whatever they like and everybody will have to respond the way they can. And, especially when the market is in surplus and prices are low, that will impact the competition’s profits.”
QP executives have jetted across Asia over the past few months to ink export deals. Their efforts led in March to a 10-year contract with Beijing-based Sinopec, signed at 10%-10.19% of Brent.
Qatar’s Ministry of Energy and QP didn’t respond to requests for comment.
A few years ago, demand for LNG was projected to rise steeply over the coming decades. Gas emits less carbon dioxide than most other fossil fuels when it’s burned, while renewable-energy projects were still too expensive to power electricity grids, factories and transport on a mass scale.
But solar and wind technology is improving faster than expected, helped in part by massive government green-spending programs triggered by the coronavirus pandemic.
We’re Not Afraid
Even as Qatar seeks to make the most of its assets, there are obstacles to it reaching total domination. Many buyers want a diverse group of suppliers. Russia’s Yamal LNG project and the planned Arctic LNG 2 plant, led by Novatek PJSC, are among those that will remain competitive as Qatar ramps up exports, according to analysts at Citigroup Inc.
The biggest U.S. LNG exporter, Cheniere Energy Inc., said it’s unperturbed by Qatar’s moves. Some importers are attracted by American firms offering more flexible delivery terms and pricing that’s not tied to oil, which has soared almost 30% this year.
“We’re not afraid,” Cheniere’s Chief Commercial Officer Anatol Feygin told investors this month. “We’re part of a sort of diversification of the supply and contracting structure along with Qatar Petroleum and our friends at Novatek.”
Yet U.S. projects are among those most likely to struggle. At least 10, five of them in Texas and four in Louisiana, probably won’t secure enough financing to be completed, according to analysis from BloombergNEF.
Feedstock costs are part of the problem. American companies have to buy gas at around $2.50 per million British thermal units, way above Qatar’s wellhead prices of $0.30 or lower.
“The Qatari strategy appears to be maintaining its global market share and also maximizing sales, before the gas market starts to shrink,” OIES’s Stern said. “It is a competitive and strategic rush. They recognize LNG demand will eventually decline as the world moves forward in the energy transition.”
Oil steadies after sell-off as U.S. stockpiles rise less than expected | Reuters
Oil steadies after sell-off as U.S. stockpiles rise less than expected | Reuters
Oil prices steadied on Thursday after a two-day slump, reflecting the world's mixed economic recovery from the pandemic, with U.S. demand expected to keep rising, while a second coronavirus wave raging in India has led to more curbs on movement.
Brent crude was up 11 cents, or 0.2%, at $66.77 a barrel by 0657 GMT, having fallen 3% on Wednesday. U.S. oil gained 25 cents, or 0.%, to $63.61 a barrel, after a 3.3% drop in the previous session.
"U.S. gasoline demand is holding up well ahead of the driving season," ANZ Research said in a note. Also, "U.S. airport footfalls increased to 1.85 million, boding well for jet fuel demand."
Crude inventories in the United States (USOILC=ECI) increased by 1.3 million barrels last week, against analysts' expectations in a Reuters poll for a 1.6 million-barrel rise.
Oil prices steadied on Thursday after a two-day slump, reflecting the world's mixed economic recovery from the pandemic, with U.S. demand expected to keep rising, while a second coronavirus wave raging in India has led to more curbs on movement.
Brent crude was up 11 cents, or 0.2%, at $66.77 a barrel by 0657 GMT, having fallen 3% on Wednesday. U.S. oil gained 25 cents, or 0.%, to $63.61 a barrel, after a 3.3% drop in the previous session.
"U.S. gasoline demand is holding up well ahead of the driving season," ANZ Research said in a note. Also, "U.S. airport footfalls increased to 1.85 million, boding well for jet fuel demand."
Crude inventories in the United States (USOILC=ECI) increased by 1.3 million barrels last week, against analysts' expectations in a Reuters poll for a 1.6 million-barrel rise.
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