Saudi's SABIC gives go-ahead for $6.4bln China petrochemical plant
Saudi Basic Industries Corp (SABIC) will go ahead with building a petrochemical complex in southeastern China's Fujian province, the company said in an exchange filing on Sunday, shoring up Saudi ties with China, the world's top oil importer.
The project, expected to cost around $6.4 billion, will be developed in a joint venture with state-owned Fujian Fuhua Gulei Petrochemical.
First proposed in 2018, the joint venture marks the latest in a series of tie-ups between Saudi firms and Chinese refiners.
The complex is expected to be able to produce 1.8 million metric tons of ethylene per year, and is designed to expand SABIC's manufacturing presence in Asia and diversify its feedstock supply chain, SABIC said.
Construction is expected to begin in the first quarter of 2024, with completion expected in the first quarter of 2027.
The announcement follows a number of similar investments by the kingdom's oil giant Saudi Aramco in China's downstream sector.
Early in January, Chinese privately-controlled refiner Rongsheng Petrochemical and Aramco announced they were in talks to take a 50% stake in each other's refineries in China and Saudi Arabia.
Aramco previously announced it had agreed to acquire a 10% stake in Rongsheng, an investment attached to a 20-year crude oil supply deal with Rongsheng-controlled Zhejiang Petrochemical Corp. The deal closed in July at a valuation of $3.4 billion.
In September last year, Aramco announced plans to become a strategic investor in another private Chinese refiner Jiangsu Shenghong Petrochemical, which operates a 320,000 bpd refinery and petrochemical complex in the eastern province of Jiangsu.
Aramco is also in talks to acquire a 10% stake in Shandong Yulong Petrochemical Co, which is building a refinery complex that can process 400,000 barrels of crude a day in eastern China's Shandong province.
Monday, 22 January 2024
#SaudiArabia's Wealth Fund PIF Joins EM Rush to Tap Dollar Bond Market - Bloomberg
Saudi Arabia's Wealth Fund PIF Joins EM Rush to Tap Dollar Bond Market - Bloomberg
Saudi Arabia’s sovereign wealth fund is the latest borrower to benefit from investors’ demand for emerging-market debt, amassing over $27 billion of demand for its deal.
The Public Investment Fund is selling five-year, 10-year and 30-year senior unsecured bonds in benchmark sizes in US dollars, according to a person familiar with the matter. Combined orderbooks were above $27 billion, excluding joint lead managers’ interest, on Monday, said the person, who asked not to be identified because they’re not authorized to speak about it.
The PIF, which manages over $700 billion in assets, is following a spree of bond sales last week, including from Mexico and Hungary. The Kingdom of Saudi Arabia itself also borrowed $12 billion earlier this month, as investors seek to grab debt at high yields before global central banks are expected to lower interest rates later this year.
Saudi Arabia’s sovereign wealth fund is the latest borrower to benefit from investors’ demand for emerging-market debt, amassing over $27 billion of demand for its deal.
The Public Investment Fund is selling five-year, 10-year and 30-year senior unsecured bonds in benchmark sizes in US dollars, according to a person familiar with the matter. Combined orderbooks were above $27 billion, excluding joint lead managers’ interest, on Monday, said the person, who asked not to be identified because they’re not authorized to speak about it.
The PIF, which manages over $700 billion in assets, is following a spree of bond sales last week, including from Mexico and Hungary. The Kingdom of Saudi Arabia itself also borrowed $12 billion earlier this month, as investors seek to grab debt at high yields before global central banks are expected to lower interest rates later this year.
Gas exporting group sees tight global LNG markets until 2026 | Reuters
Gas exporting group sees tight global LNG markets until 2026 | Reuters
The Gas Exporting Countries Forum (GECF) sees tight global liquefied natural gas (LNG) markets until 2026 as demand rises 1.5% this year and by up to 22% through 2050, the group's secretary general, Mohamed Hamel, said on Monday at a conference in Trinidad and Tobago.
The GECF represents natural gas exporters including Qatar, Russia and Trinidad and Tobago. Its members hold more than two-thirds of the world's gas supplies, according to its website.
In its annual report, the GECF last year warned about record high and volatile gas spot prices in Europe and Asia, and said energy security concerns were taking precedence over climate change mitigation goals, with policymakers focusing on meeting the energy needs of their people.
At the conference on Monday, BP's (BP.L) senior vice president for gas growth, Oksana Dembitska, warned about overly high LNG prices and said they have caused demand destruction, especially in the aftermath of Russia's invasion of Ukraine, which led to a seven-fold increase in prices.
However, BP expects that Europe will continue to be a key destination for LNG for at least another 20 years, which is supporting supply agreements, Dembitska said.
The Gas Exporting Countries Forum (GECF) sees tight global liquefied natural gas (LNG) markets until 2026 as demand rises 1.5% this year and by up to 22% through 2050, the group's secretary general, Mohamed Hamel, said on Monday at a conference in Trinidad and Tobago.
The GECF represents natural gas exporters including Qatar, Russia and Trinidad and Tobago. Its members hold more than two-thirds of the world's gas supplies, according to its website.
In its annual report, the GECF last year warned about record high and volatile gas spot prices in Europe and Asia, and said energy security concerns were taking precedence over climate change mitigation goals, with policymakers focusing on meeting the energy needs of their people.
At the conference on Monday, BP's (BP.L) senior vice president for gas growth, Oksana Dembitska, warned about overly high LNG prices and said they have caused demand destruction, especially in the aftermath of Russia's invasion of Ukraine, which led to a seven-fold increase in prices.
However, BP expects that Europe will continue to be a key destination for LNG for at least another 20 years, which is supporting supply agreements, Dembitska said.
#Saudi launches administrative court to boost investor confidence | Reuters
Saudi launches administrative court to boost investor confidence | Reuters
Saudi Arabia launched on Monday its first administrative enforcement court with jurisdiction over government entities and officials in a bid to boost investor confidence, a Saudi judicial organisation said.
The move follows the enactment of a civil transactions law last month, part of wider judicial reforms initiated by de facto ruler Crown Prince Mohammed Bin Salman and aimed at modernising the economy and reducing reliance on oil exports.
The civil transactions law was in effect the country's first civil code, replacing an unwritten system where judges would have full discretion ruling on commercial disputes on the basis of Islamic law.
The new court and the law aim to boost the confidence of foreign investors weighing whether to do business with the country, where the legal system has long been seen as opaque.
The administrative court will receive complaints from local and foreign investors against government institutions, the Board of Grievances, a judicial body directly associated with the Saudi king, said in a statement.
The court will prioritise resolving issues by mediation but will also have executive power against government entities and officials, it added.
Riyadh in 2021 set a target of reaching $100 billion in foreign direct investment by 2030, which appears far off with most recent data showing just under $33 billion in inflows in 2022.
Saudi Arabia launched on Monday its first administrative enforcement court with jurisdiction over government entities and officials in a bid to boost investor confidence, a Saudi judicial organisation said.
The move follows the enactment of a civil transactions law last month, part of wider judicial reforms initiated by de facto ruler Crown Prince Mohammed Bin Salman and aimed at modernising the economy and reducing reliance on oil exports.
The civil transactions law was in effect the country's first civil code, replacing an unwritten system where judges would have full discretion ruling on commercial disputes on the basis of Islamic law.
The new court and the law aim to boost the confidence of foreign investors weighing whether to do business with the country, where the legal system has long been seen as opaque.
The administrative court will receive complaints from local and foreign investors against government institutions, the Board of Grievances, a judicial body directly associated with the Saudi king, said in a statement.
The court will prioritise resolving issues by mediation but will also have executive power against government entities and officials, it added.
Riyadh in 2021 set a target of reaching $100 billion in foreign direct investment by 2030, which appears far off with most recent data showing just under $33 billion in inflows in 2022.
Gulf markets rise on higher oil prices, #AbuDhabi falls | Reuters
Gulf markets rise on higher oil prices, Abu Dhabi falls | Reuters
Stock markets in the Gulf were up on Monday, tracking a surge in global equities amid rising oil prices, while Abu Dhabi's index retreated.
Oil prices - a key catalyst for the Gulf's financial markets- edged up on Monday as dampened global demand could not offset the threat to supply from tensions in the Middle East.
Brent rose 0.2% at $78.71 a barrel by 1230 GMT.
Saudi Arabia's benchmark index (.TASI) was up for a second consecutive session, ending 0.9% higher, lifted up by a 4.5% rise in SAL Saudi Logistics Services Co (4263.SE) and 9.9% jump in MBC Group (4072.SE).
MBC, a Saudi media company which made its market debut on Jan 8, shot up about 150%, closing at 79.90 riyals a share on Monday.
The Qatari index (.QSI) rose 0.8%, snapping its four-session losing streak, aided by gains in all sectors, with Qatar Islamic Bank (QISB.QA) surging 2.7% and Industries Qatar (IQCD.QA) climbing 1.3%.
Dubai's benchmark index (.DFMGI) dipped slightly to trade flat. Losses in financial and utilities sectors offset the gains in industrials.
Emaar Properties (EMAR.DU) and Dubai Electricity and Water Authority (DEWAA.DU) declined 1.8% and 1.2% respectively while tolls operator Salik Co (SALIK.DU) gained 2.3%.
In Abu Dhabi, the benchmark index (.FTFADGI) was down for a seventh straight session, ending 0.3% lower, weighed down by a 0.5% loss in conglomerate International Holding Co (IHC.AD) and 0.4% drop in UAE's largest lender First Abu Dhabi Bank(FAB.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose for a third consecutive session and ended 1.2% higher, with Commercial International Bank (COMI.CA) gaining 2.8% and Misr Fertilizers Production Co (MFPC.CA) surging 10.1%.
Stock markets in the Gulf were up on Monday, tracking a surge in global equities amid rising oil prices, while Abu Dhabi's index retreated.
Oil prices - a key catalyst for the Gulf's financial markets- edged up on Monday as dampened global demand could not offset the threat to supply from tensions in the Middle East.
Brent rose 0.2% at $78.71 a barrel by 1230 GMT.
Saudi Arabia's benchmark index (.TASI) was up for a second consecutive session, ending 0.9% higher, lifted up by a 4.5% rise in SAL Saudi Logistics Services Co (4263.SE) and 9.9% jump in MBC Group (4072.SE).
MBC, a Saudi media company which made its market debut on Jan 8, shot up about 150%, closing at 79.90 riyals a share on Monday.
The Qatari index (.QSI) rose 0.8%, snapping its four-session losing streak, aided by gains in all sectors, with Qatar Islamic Bank (QISB.QA) surging 2.7% and Industries Qatar (IQCD.QA) climbing 1.3%.
Dubai's benchmark index (.DFMGI) dipped slightly to trade flat. Losses in financial and utilities sectors offset the gains in industrials.
Emaar Properties (EMAR.DU) and Dubai Electricity and Water Authority (DEWAA.DU) declined 1.8% and 1.2% respectively while tolls operator Salik Co (SALIK.DU) gained 2.3%.
In Abu Dhabi, the benchmark index (.FTFADGI) was down for a seventh straight session, ending 0.3% lower, weighed down by a 0.5% loss in conglomerate International Holding Co (IHC.AD) and 0.4% drop in UAE's largest lender First Abu Dhabi Bank(FAB.AD).
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose for a third consecutive session and ended 1.2% higher, with Commercial International Bank (COMI.CA) gaining 2.8% and Misr Fertilizers Production Co (MFPC.CA) surging 10.1%.
#UAE Oil Producer Adnoc Plans Boost in Low-Carbon Spending - Bloomberg
UAE Oil Producer Adnoc Plans Boost in Low-Carbon Spending - Bloomberg
The United Arab Emirates will boost spending by more than 50% on energy projects that limit or mitigate carbon dioxide emissions as Abu Dhabi’s government-owned oil producer targets international expansion.
Abu Dhabi National Oil Co. will spend $23 billion on low-carbon projects, the company said in a statement. That’s an increase from the previous budget of $15 billion that Adnoc pledged for such investments through 2030 when it first announced the plan a year ago. The firm didn’t specify the time period for the upgraded investment or give additional specifics on the type of new projects it will target.
Adnoc is developing projects that will capture carbon emissions at its natural gas processing plants and is working to develop a trading desk for credits that can offset emissions.
The UAE, which hosted the UN’s annual climate summit in Dubai last month, is working to produce and market its oil and natural gas before the world moves away from hydrocarbon use. Adnoc and other energy producers pitch gas as a cleaner-burning fuel that can replace dirtier sources like coal in growing economies. Adnoc is spending $150 billion over five years to expand hydrocarbon production capacity and to bolster its global presence by building up international gas and chemicals businesses.
Adnoc is “prioritizing transformational growth, partnerships, and international opportunities,” Chief Executive Officer Sultan Al Jaber said in the statement. It’s pursuing deals, including the merger of two of its chemical holdings into a $30 billion producer as well as buying international gas assets.
The United Arab Emirates will boost spending by more than 50% on energy projects that limit or mitigate carbon dioxide emissions as Abu Dhabi’s government-owned oil producer targets international expansion.
Abu Dhabi National Oil Co. will spend $23 billion on low-carbon projects, the company said in a statement. That’s an increase from the previous budget of $15 billion that Adnoc pledged for such investments through 2030 when it first announced the plan a year ago. The firm didn’t specify the time period for the upgraded investment or give additional specifics on the type of new projects it will target.
Adnoc is developing projects that will capture carbon emissions at its natural gas processing plants and is working to develop a trading desk for credits that can offset emissions.
The UAE, which hosted the UN’s annual climate summit in Dubai last month, is working to produce and market its oil and natural gas before the world moves away from hydrocarbon use. Adnoc and other energy producers pitch gas as a cleaner-burning fuel that can replace dirtier sources like coal in growing economies. Adnoc is spending $150 billion over five years to expand hydrocarbon production capacity and to bolster its global presence by building up international gas and chemicals businesses.
Adnoc is “prioritizing transformational growth, partnerships, and international opportunities,” Chief Executive Officer Sultan Al Jaber said in the statement. It’s pursuing deals, including the merger of two of its chemical holdings into a $30 billion producer as well as buying international gas assets.
OMV, ADNOC to iron out terms of deal for chemicals tie-up - sources | Reuters
OMV, ADNOC to iron out terms of deal for chemicals tie-up - sources | Reuters
Abu Dhabi National Oil Co (ADNOC) and Austria's OMV (OMVV.VI) are poised to resume talks to agree final terms of a tie-up that would create a chemicals group with more than $20 billion in combined annual sales, sources close to the deal said.
Three people with knowledge of the situation said there are still outstanding terms to agree on, with two of them saying that the companies planned to resume talks possibly as soon as this week.
OMV said in July last year it had entered into talks to merge petrochemicals group Borealis - which is owned by OMV and ADNOC in a 75:25 split - and Borouge (BOROUGE.AD), which is listed in Abu Dhabi and 54:36 owned by ADNOC and Borealis.
The two sides had been close to agreement, sources told Reuters previously.
But a number of sticking points remain, including a provision for job guarantees in Austria, a requirement for a Vienna listing and an Austrian chairman of the new company, two of the people said, speaking on condition of anonymity.
Abu Dhabi National Oil Co (ADNOC) and Austria's OMV (OMVV.VI) are poised to resume talks to agree final terms of a tie-up that would create a chemicals group with more than $20 billion in combined annual sales, sources close to the deal said.
Three people with knowledge of the situation said there are still outstanding terms to agree on, with two of them saying that the companies planned to resume talks possibly as soon as this week.
OMV said in July last year it had entered into talks to merge petrochemicals group Borealis - which is owned by OMV and ADNOC in a 75:25 split - and Borouge (BOROUGE.AD), which is listed in Abu Dhabi and 54:36 owned by ADNOC and Borealis.
The two sides had been close to agreement, sources told Reuters previously.
But a number of sticking points remain, including a provision for job guarantees in Austria, a requirement for a Vienna listing and an Austrian chairman of the new company, two of the people said, speaking on condition of anonymity.
Most Gulf markets rise in early trade | Reuters
Most Gulf markets rise in early trade | Reuters
Most stock markets in the Gulf rose in early trade on Monday, tracking global peers, while Abu Dhabi struggled to pick up amid weaker oil prices.
The Qatari benchmark index (.QSI) increased 0.7%, lifted by gains in all sectors in positive territory with Qatar Islamic Bank (QISB.QA) jumping 1.9% and Industries Qatar (IQCD.QA) surging 1.3%.
Separately, state-owned Qatar Energy could sign a long-term deal to provide liquefied natural gas (LNG) to Indian buyers on cheaper and more flexible terms than existing contracts, trade sources said.
Saudi Arabia's benchmark stock index (.TASI) was up 0.5%, supported by a 9.9% surge in media giant MBC Group (4072.SE) and 1.2% rise in Saudi Basic Industries Corp (2010.SE)(SABIC).
Saudi chemical manufacturer SABIC has given the go-ahead for a $6.4 billion China petrochemical plant, it said in an exchange filing on Sunday.
Dubai's benchmark stock index (.DFMGI) edged up 0.2%, aided by gains in the financial sector with Emirate's largest lender Emirates NBD (ENBD.DU) rising 0.9% and Emaar Properties (EMAR.DU), opens new tab adding 0.7%.
Meanwhile, oil prices - a catalyst for the Gulf's financial markets - fell 0.3% on Monday with Brent trading at $78.35 a barrel by 0745 GMT.
In Abu Dhabi, the benchmark stock index (.FTFADGI) retreated 0.4%, weighed down by a 0.6% slide in conglomerate International Holding Company (IHC.AD) and 1.3% drop in Multiply Group (MULTIPLY.AD).
Most stock markets in the Gulf rose in early trade on Monday, tracking global peers, while Abu Dhabi struggled to pick up amid weaker oil prices.
The Qatari benchmark index (.QSI) increased 0.7%, lifted by gains in all sectors in positive territory with Qatar Islamic Bank (QISB.QA) jumping 1.9% and Industries Qatar (IQCD.QA) surging 1.3%.
Separately, state-owned Qatar Energy could sign a long-term deal to provide liquefied natural gas (LNG) to Indian buyers on cheaper and more flexible terms than existing contracts, trade sources said.
Saudi Arabia's benchmark stock index (.TASI) was up 0.5%, supported by a 9.9% surge in media giant MBC Group (4072.SE) and 1.2% rise in Saudi Basic Industries Corp (2010.SE)(SABIC).
Saudi chemical manufacturer SABIC has given the go-ahead for a $6.4 billion China petrochemical plant, it said in an exchange filing on Sunday.
Dubai's benchmark stock index (.DFMGI) edged up 0.2%, aided by gains in the financial sector with Emirate's largest lender Emirates NBD (ENBD.DU) rising 0.9% and Emaar Properties (EMAR.DU), opens new tab adding 0.7%.
Meanwhile, oil prices - a catalyst for the Gulf's financial markets - fell 0.3% on Monday with Brent trading at $78.35 a barrel by 0745 GMT.
In Abu Dhabi, the benchmark stock index (.FTFADGI) retreated 0.4%, weighed down by a 0.6% slide in conglomerate International Holding Company (IHC.AD) and 1.3% drop in Multiply Group (MULTIPLY.AD).
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