Business 11

TUESDAY 20 JULY 2021 German economy seen returning to pre-pandemic size this quarter The total economic impact should remain limited; even though the existential impact on the retail or hospitality sectors, which have already suffered enormously under the lockdowns should definitely not be underestimated. Carsten Brzeski Chief Economist at ING Business | 13 QSE 10,696.30 -79.67 (0.74%) FTSE 100 6,844.49 −163.60 (2.35%) DOW 33,904.62 −783.23 (2.26%) BRENT $69.21 (-4.34)

Hamad Port discharges heaviest ever break-bulk unit

SACHIN KUMAR increase in vessels’ arrival and THE PENINSULA Hamad Port holds a major cargo handling in 2020 which share in the total cargo indicates port’s growing impor- Hamad Port, Qatar’s gateway to handling in Qatar. The port tance in regional trade. Hamad world trade, reached another handled 129,640 TEUs Port, in 2020, handled over 1.4 milestone as it discharged a containers and 103,947 million Twenty-Foot Equivalent transformer weighing 163,000 Units (TEUs) containers and kilograms which was the heaviest break-bulk cargo in June received 1,600 vessels. break-bulk unit ever handled in 2021. It also handled 5,811 According to figures released the port. units of vehicles during the by QTerminals, the Port handled “QTerminals has achieved month. Total 137 vessels had 1.4 million Twenty-Foot Equiv- another significant milestone, docked at the port last month. alent Units containers; 304, 481 successfully discharging the tonnes of bulk cargo; 1,196,559 heaviest breakbulk unit ever tonnes of general cargo; 59,443 handled in Hamad Port – a trans- vehicles; and 264,164 heads of former weighing 163,000 kgs,” announced that it had success- livestock last year. said QTerminals on its official fully handled an Ship To Ship Hamad Port is helping in twitter account, yesterday. (STS) cargo operation at its diversifying country’s economy. QTerminals is a terminal Hamad Port General Cargo Ter- Along with general cargo traffic, operating company jointly estab- minal for the first time since the the port handles a variety of spe- lished by Mwani Qatar and beginning of operations at the cialist imports including live- Milaha to provide container, port. stock, automobiles, and bulk general cargo, RORO, livestock Similarly, one of the largest grain. and offshore supply services in offshore vessels had berthed at Hamad Port has a uniquely- Phase 1 of Hamad Port. Hamad Port General Cargo Ter- A transformer weighing 163,000kgs being discharged at Hamad Port designed port control tower at “Congratulations to the ops minal berth on May 7 this year. a height of 110 metres, a team @q_terminals for a safe and A month earlier on April 29, at Hamad Port. In April, Hamad and low in carbon emissions. share in the total cargo handling customs inspection area for successful discharge of this break QTerminals had welcomed the Port accomplished another feat Hamad Port continues to in Qatar. The port handled rapid cargo clearance, a ship bulk unit - all 163,000 kgs of it!,” CMA CGM vessel MV APL as it handled container volume witness growth in cargo handling. 129,640 TEUs containers and inspection platform and mul- tweeted Neville Bissett, CEO of Temasek at Hamad Port. The of over 5 million Twenty-Foot With every passing month and 103,947 break-bulk cargo in June tiple maritime facilities, in QTerminals. Hamad Ports has vessel had a length overall (LOA) Equivalent Units (TEUs) since the year, Hamad Port’s handling of 2021. It also handled 5,811 units addition to other utilities such accomplished many feats during of 397.88 metres, a container start of operations. movement of vessels and cargo of vehicles during the month. as storage units, mosques, rest this year, despite challenging sit- capacity of 17,292 TEUs and was All equipment used at the is increasing and the port is Total 137 vessels had docked at areas, medical clinics and the uation created by the COVID-19 the longest and the highest con- Container Terminal-2 at Hamad expanding its container terminal the port last month. offices required for port outbreak. On May 25, QTerminals tainer capacity vessel ever to call Port are environmentally friendly base. The Port holds a major The Port registered an operation. Qatar’s IPI increases 6% in May GECF member countries THE PENINSULA — DOHA shifting towards less

Qatar’s Industrial Production Index (IPI) for May 2021 stood at 105.8 points, showing an carbon intensity increase of 6 percent compared to the THE PENINSULA — DOHA previous month (April 2021). When compared on year-on-year basis, the IPI index has There is more than one way to increased by 1.7 percent compared to the achieve the Paris Agreement corresponding month in 2020, according to targets, and more than one way the data released by the Planning and to achieve a low carbon future. Statistics Authority (PSA). Although it is projected that The Industrial Production Index consists renewables and other uncon- of three main components: ‘Mining’ with a ventional sources of energy may relative importance of 83.6 percent, ‘Manu- gain a significant portion of the facturing’ with a relative importance of 15.2 energy supply mix in the next 30 percent, ‘Electricity’ with a relative impor- years, based on the GECF Global tance of 0.7 percent, and finally ‘Water’ with ‘Manufacture of chemicals and chemical percent, ‘Manufacture of rubber and plastics Gas Model’s (GGM) calculation, a relative importance of 0.5 percent. products’ by 5.9 percent, ‘Manufacture of bev- products’ by 16.9 percent. However, a at the GECF we believe that some The index of mining sectorsector showed erages’ by 5.3 percent, and ‘Manufacture of decrease was recorded in, ‘Manufacture of concerns may restrict the industry. As a long-lived estab- an increase by 5.9 percent compared to the food products’ by 0.4 percent. However, a beverages’ by 10.9 percent, ‘Manufacture of worldwide commitment to fully lished industry, up to now oil and previous month (April 2021), because of the decrease was recorded in ‘’ Printing and food products’ by 7 percent, and ‘Manu- substituting fossil fuels, and in gas have played a key role in the increase in the quantities of ‘crude oil reproduction of recorded media’’ by 8.8 facture of chemicals and chemical products’ particular natural gas, said Dr energy supply mix and it is esti- petroleum and natural gas’ by 5.9 percent, percent, ‘Manufacture of Cement and other by 1.2 percent. An increase of 36 percent was Hussein Moghaddam (pictured), mated to remain dominant, at while ‘Other mining and quarrying’ showed non-metallic mineral products’ by 5.3 percent, noticed in the production of ‘Electricity’ Senior Energy Forecast Analyst, least, in the next 15 to 20 years. a decrease by 3.8 percent. When compared and ‘Manufacture of rubber and plastics between May 2021 and the previous month Energy Economics and Fore- While this industry has been to the corresponding month of the previous products’ by 2.2 percent. (April 2021), comparing with corresponding casting Department. subject to massive investment year (May 2020), the IPI of Mining increased On the other hand, in terms of annual month (May 2020), an increase of 9.4 percent The GGM shows that being and development, emerging by 0.7 percent. change, comparing to May 2020, an increase was recorded. committed to carbon-neutral renewables may warrant more The index of manufacturing sector of 7.7 percent was recorded, affected by the An increase of 7 percent was noticed in targets does not sufficiently time and investment to follow in showed an increase by 5.5 percent compared following groups: ‘Manufacture of Cement the production of ‘‘Water’’ between May contribute to the greenhouse gas their predecessor industry’s to the previous month (April 2021). Manu- & other non-metallic mineral products’ by 2021 and the previous month (April 2021). (GHG) emissions reduction, if not footsteps. facture of refined petroleum products 55.3 percent, followed by ‘Manufacture of Comparing with corresponding month (May accompanied by feasible policies. Despite the advancement in increased by 7.2 percent, followed by ‘Man- basic metals’ by 29.6 percent, ‘Manufacture 2020), a decrease of 19.8 percent was Dr Hussein Moghaddam said renewables, to fill the supply gap, ufacture of basic metals’ by 7 percent, of refined petroleum products’ by 25.3 recorded. that years ago, the need to countries will ensure their discuss climate change would energy security due to unpre- not be a given as it is today. Since dictable dynamics of the energy global warming has become a sector by preserving their sup- IIA Doha Chapter bags Building Awareness Champion award major hazard for the future of the plies from conventional sources, planet, energy transmission as a among which natural gas is the THE PENINSULA — DOHA message,” said IIA President and The award is the speeds,” Wright says. “Where IT response to this concern is inev- cleanest and the cheapest. CEO Anthony J Pugliese in his result of the IIA Qatar audit was once a specialty, given itable. To limit warming to 1.5°C Second, since the global pop- The Institute of Internal Auditors letter of congratulations. member’s dedication the accumulated impact of by 2050-60, many countries ulation is rising specifically in Doha was awarded the 2021 “The award is the result of several different technologies, agreed and pledged under the urban areas, many developing Building Awareness Champion the IIA Qatar member’s dedi- to the profession. The knowledge, and use of tech- Paris Agreement to set up ambi- regions may not be able to afford award by the IIA global body. cation to the profession. The digital award reflects nology should now be con- tious targets to reach net-zero higher prices of energy gen- This award is given annually by digital award reflects that this that this was indeed a sidered baseline requirements emissions across their regions. erated from renewables, unless the IIA to recognize the excep- was indeed a time of ‘Rising to for internal audit professionals. According to Climate Action the industry will generate econ- tional commitment to the challenge’ and it is a mark time of ‘Rising to the As the pace of change continues Tracker, 127 countries that omies of scale, said Dr Hussein promoting the internal audit of the professional com- challenge’ and it is a to accelerate, internal auditors produce around 63% of global Moghaddam. To this end, renew- profession. mitment,” stated Sundaresan mark of the professional need to prepare themselves to emissions are now committing ables require large investments “Internal audit plays a vital Rajeswar, Board Member who be adaptive and resilient — to themselves to adopt net-zero – according to the International role at all times, but especially spearheaded the award nomi- commitment be Future Ready.” targets. Energy Agency, annual clean during times of crisis. Despite nation with Board members. The Doha Chapter is sched- Dr Hussein Moghaddam said energy investment worldwide unprecedented challenges, you The Institute of Internal Auditors the transformative nature of uling very popular webinars that several explanations follow will need to be around $4 trillion pushed ahead with courage and Global board elected 2021-22 technology, how internal regularly with top Internal audit to elaborate on this point: First, by 2030 to reach net-zero emis- determination to help build IIA Global Chairman Charlie T auditors must upskill to become leaders globally. The upcoming the global energy demand may sions by 2050 in order to awareness of the value that Wright. Wright is an experi- tech-savvy, and how they can events are on Auditing strategy outweigh the energy supply from overcome the mismatch that internal audit brings to stake- enced chief audit executive with create efficiencies in their work by Ranjith Singh, Global Board unconventional sources due to exists between energy demand holders. Thank you for every- more than 35 years of corporate and their organizations. member from Malaysia, and increasing consumption in and the availability of energy thing you did to demonstrate the experience. His theme, “Future “The future is coming at Measurement of likelihood by energy-intensive sectors, such from various renewable sources, truth and timeliness of that Ready,” explores internal auditors at lightning Zach la Rouf from South Africa. as power, transportation, and he added. `P12 12 BUSINESS TUESDAY 20 JULY 2021 Lagarde’s strategy hints at new era of ECB teamwork

BLOOMBERG Lagarde’s accession an overshoot of the goal can who helped design its original to the ECB presidency happen when interest rates are policy framework, said in an President Christine Lagarde had and a different style to very low, but stops short of interview. “Changing the inflation barely begun unveiling the her predecessor, Mario making it an actual aim. By con- goal to a straight 2% was the right European Central Bank’s new trast, the Federal Reserve’s choice and long overdue. High- monetary policy strategy this Draghi, were important in strategy unveiled last year does lighting the medium-term focus month when she signaled that the resetting the Bundesbank that by adopting average inflation is important.” Germans were on board. relationship. And with targeting. “We are not striving for By contrast, Juergen Stark, By quickly highlighting offi- elections in September in either lower or higher rates,” the former Bundesbank vice cials’ unanimous backing, she Germany, Europe’s biggest Weidmann said after Lagarde’s president who succeeded Issing revealed the support of Bun- announcement. “That was in 2006, is more critical. desbank chief Jens Weidmann — economy, she recognises important to me.” “I have considerable doubts validation that also underscored need to sustain its support The Bundesbank also steered that the new price-stability goal how the hawkish and conserv- for the euro amid skepticism climate-change policy toward will create more clarity if the ative institution he leads is com- about policies such as managing balance-sheet risks, central bank insists on greater mitted to exerting influence negative interest rates. instead of more radical options flexibility,” he said. “Clarity and through engagement rather than that its officials felt were better flexibility are at odds with each A file photo of ECB President Christine Lagarde gesturing as she confrontation, and is quietly sat- handled by governments. other, and in the worst case it addresses a news conference on the outcome of the meeting of isfied with the results. that you have to get along,” said The result is a monetary hurts credibility.” the Governing Council, in Frankfurt Compare that to the history Guntram Wolff, director of the strategy that observers see tilted Such sentiments provide not of Bundesbankers’ temper tan- Bruegel think tank in Brussels. in a more dovish direction but that only a glimpse of the Bundes- trums against ECB policies over “There’s a fine line between being the need to sustain its support for The approach Lagarde still accommodates the sensitiv- bank’s misgivings over the years, the years, featuring bitter resig- hawkish, which is a justified the euro amid skepticism about unveiled on July 8 included a new ities of an institution with a special but also hint at the difficulties nations and disagreements position, and being perceived as policies such as negative interest higher inflation target of 2 role in Europe’s monetary union, Lagarde might have faced if the fought out in court, capped by anti-euro.” rates. percent and discretion for offi- with its tight-money regime pro- Germans hadn’t played ball. outcomes that often defied their Lagarde’s accession to the An initial trial of the new cials in bolstering growth. That viding the blueprint for the ECB Notable instances of past wishes anyway. If anything, the ECB presidency and a different monetary strategy, and the con- outcome reflected a compromise at its foundation in 1998. acrimony include arguments review’s outcome emphasizes a style to her predecessor, Mario sensus underpinning it, will take Weidmann was closely involved “I’m glad to see that the ECB over the ECB’s first sovereign very different rapport than used Draghi, were important in place this week, as the Governing in wording as concrete drafts for withstood the temptation to bond-buying program pre- to be the case. resetting the Bundesbank rela- Council meets for a decision on the revamp circulated after a throw its entire strategy over- ceding the 2011 resignations of “There’s a certain pacification tionship. And with elections in Thursday that will result in retreat of policy makers northeast board,” Otmar Issing, the former both Axel Weber, Weidmann’s in the relationship, a better coop- September in Germany, Europe’s revamped guidance on its future of Frankfurt. Bundesbanker who served as the predecessor as Bundesbank eration, and an acknowledgment biggest economy, she recognises policy. The language acknowledges ECB’s first chief economist and chief, and of Stark too.

BUSINESS BRIEFS India’s $7bn BPCL sale slows on pandemic

RBI not alarmed by BLOOMBERG have held meetings with BPCL management, temporary inflation Bloomberg News reported in May. The govern- India’s plan to sell a majority stake in the coun- ment’s 53 percent stake in the refiner is valued The Reserve Bank of India sees the try’s second-biggest state refiner has slowed at about Rs515bn ($6.9bn) based on Friday’s current spate of quickening inflation down amid the coronavirus pandemic and other closing price. While discussions have slowed driven by supply-side constraints that government initiatives such as the initial public down, the divestment plan isn’t formally stalled are likely to go away as the econ- offering of the nation’s biggest insurer, according and suitors are still working on potential bids, omy reopens, according to one of to people familiar with the matter. the people said. A representative for the finance its ex-deputy governors. The discussions with investors on the stake ministry didn’t immediately respond to requests “That is why the RBI is not very sale of Bharat Petroleum Corp., from which the for comment, while a representative for BPCL concerned about immediate increase government could fetch about $6.9bn, haven’t declined to comment. in inflation rates,” R Gandhi, who progressed much recently, the people said. The While the BPCL privatization is part of the was a deputy governor at the central disposal may only take place as soon as early country’s efforts to raise capital to make up the bank between 2014 and 2017, said next year rather than in 2020, one of the people fall in tax revenues as the pandemic hit the in an interview to Bloomberg TV’s said, asking not to be identified as the matter is economy, the administration could well have Rishaad Salamat and Haslinda Amin. private. other priorities including Life Insurance Corp. of Although retail inflation has India has already allowed bidders access to India’s IPO, which could be the country’s A Bharat Petroleum Corp. gas station in Mumbai, India. been hovering well above the central the financial data of the refiner in April and some largest-ever. bank’s upper tolerance limit of 6% for the past two months, Governor Shaktikanta Das recently described the trend as a “transitory hump.” His GECF member countries shifting towards less carbon intensity comments underlined the monetary FROM PAGE 11 authority’s intent to keep borrowing carbon capture and storage (CCS), provide environmentally friendly share). The company has the environmental considerations in costs lower for longer to support the Third, research and devel- investing in blue hydrogen and feedstock for petrochemical ambition of reducing the GHG some of its supply contracts In economy’s recovery from an unprec- opment in the oil and gas industry removing fossil fuel subsidies and plants in the country. Moreover, emissions from its operated off- Russia, NOVATEK has embraced edented contraction last fiscal year. have been growing substantially increasing energy efficiency. the Associated Gas Gathering Plan shore fields and onshore plants a long-term methane emissions Still, bond traders have read to promote innovation in devel- Dr Hussein Moghaddam said (AMAK) is the largest domestic by 40% by 2030, 70% by 2040 reduction target by 2030, mainly higher inflation, a near-record gov- oping new technologies for gen- that emissions reduction is a top environmental project in the oil and to near zero by 2050. Equinor to diminish methane emissions ernment borrowing program and erating cleaner energy. Increasing priority for the industry and the and gas sector, which collects considers CCS as vital to meet its per unit of production by 4% in elevated oil prices as factors pointing efficiency is one of the main out- GECF Secretariat is supporting its associated petroleum gas (APG) net-zero target. The company has the production, processing and to a sooner-than-expected tightening comes of such innovative members in these efforts. There from oilfields and after dehy- extensive experience with CCS LNG segments. Furthermore, the in monetary policy. -BLOOMBERG advancement in the industry that are some specific examples of dration, injects it into the pipeline operations and is a part of more company has plans to reduce GHG has been accelerating in recent how the GECF Member Countries for further consumption. than 40 research projects on CCS. emissions per unit of production years. Dr Hussein Moghaddam have been recently active in this In Iraq, currently, most of its Dr Hussein Moghaddam said in the upstream segment by 6%, China loan rate said that said that in other words, area. Egypt has launched an gas output is associated with gas that in April 2021, Qatar joined in as well as by 5% per ton of LNG in focus as traders energy transition not only con- energy diversification strategy, produced at oil fields and the creating a Net-Zero Producers production [15]. Russia is also tar- siders renewables development, known as the 2035 Integrated majority of this is flared. According Forum as part of the countries’ geting 20-25% of future global watch for easing clues but also implies a process of opti- Sustainable Energy Strategy, to an April 2021 report by the climate commitments. This forum hydrogen trade. The country has mising the behaviour of energy which aims to step up the devel- World Bank, Iraq had the world’s is said to be dedicated to devel- projected that it could export up China’s benchmark loan rate will be systems without necessarily opment of renewable energy and second-largest gas flaring volume oping long-term strategies to to one million mt/yr of hydrogen in the spotlight on Tuesday, with mar- adhering to the complete removal energy efficiency in the country. last year after Russia, burning reach global net-zero emissions. in 2024, rising to 7mn mt/yr in ket participants divided over the need of fossil fuels. And among fossil Egypt aims to produce 20% of its around 17.3 billion cubic metres In this context, as part of a new 2035 and between 7.9 and 33.4 for more easing to support growth. fuels, natural gas plays a key role electricity using renewable (bcm) of gas in 2020. However, sustainable development strategy, million mt/yr by 2050 [16]. The loan prime rate could be in the development of efficiency. sources by 2022 and 42% by 2035 the country plans to end gas Qatar Petroleum (QP) is targeting Dr Hussein Moghaddam said lowered for the first time since early The GECF Secretariat strives [3]. Furthermore, Egypt has com- flaring by 2025 [7]. In this regard, to reduce 25% emissions from its that to conclude, global challenges last year as a sign of further support to favour this opportunity within mitted to reducing energy sub- Sinopec and TotalEnergies intend LNG plants by 2030. Furthermore, require a global determination for China’s slowing economy, accord- the framework of the Environ- sidies and adjust the prices to to work on developing four asso- emissions from its upstream oper- that goes beyond mere promises. ing to four analysts including Ming mental Knowledge and Solutions international levels . ciated gas and solar power ations will be reduced by at least Taking sustained, practical, even Ming at the country’s biggest bro- (EKS) initiative that has been Dr Hussein Moghaddam said projects in Iraq to collect and 15%, and flaring intensity will be sluggish, steps is crucial to battle kerage. Four others see no change established as a way to support that in order to achieve a refine associated gas produced reduced by 75%, from the 2013 global warming. Many countries in the rate at a monthly announce- the Paris Agreement process and desirable level of environmental from the Ratawi, West Qurna 2, level. The company is also com- in the OECD have already started ment on Tuesday. the attainment of UN Sustainable protection and sustainable devel- Majnoun, Tuba, and Lahis oil fields mitted to limiting methane emis- moving toward a sustainable While data on Thursday allayed Development Goals. The GECF opment, Iran has invested more Dr Hussein Moghaddam said that sions in its gas value-chain by economy through the energy tran- fears of a sharp slowdown in China’s Member Countries are in the fore- than $5bn into environmental said that in Norway, Equinor has setting a methane intensity target sition. Above mentioned examples growth, speculation persists that the front of such developments projects in the oil and gas sectors. already brought CO2 emissions of 0.2% by 2025. QP also aims to indicate that the GECF Member central bank may unleash another through efficiency-enhancing The Iranian Ministry of Petroleum in the oil and gas production down add more than 4 GW of renewable Countries have been mindful and round of easing after it reduced the processes that pave the way for has been implementing various to industry-leading levels. The energy in Qatar, which should responsive to need for the energy amount of cash banks need to hold energy transition and carbon programmes, one of which is to company is implementing several reduce CO2 emissions by 5 million transition. However, this is just the in reserve. Any move by the author- reduction in various ways, promote the establishment of flare emission reductions measures, mt/year. Last but not the least, QP beginning and they can leverage ities will be parsed by investors who including but not limited to: gas recovery units in the country’s which takes into account scope 1 is aiming to capture and store great opportunities that energy are seeking clues on the health of reducing methane emissions from oil-rich regions. These projects and 2 GHG emissions (operated some 7 million mt/yr of CO2 from transition provides to develop the world’s second-largest economy flaring and waste gases, investing aim to prevent the loss of natural basis 100%) and scope 3 GHG its LNG facilities by 2027. The their economy in general, and and its implications on demand for in renewable energy, deploying gas, protect the environment, and emissions (use of products, equity company has already included energy mix in particular. commodities and trade in the region. “Banks will have more liquidity to make loans after the reserve-ratio cut, a move allowing them to ask Uber ramps up on-demand for smaller premiums in lending and making room for a lower LPR,” said grocery expansion in the US Ming, head of fixed-income research at Citic Securities Co. However, the BLOOMBERG including Jewel-Osco, Safeway, central bank is widely expected to ACME and Randalls, Uber said in refrain from flooding the market with Uber Technologies, Inc. is accel- a statement. To tempt new cus- cash after it injected just 100bn yuan erating its on-demand grocery tomers to choose Uber over com- ($15.5bn) through medium-term delivery service in the US, more petitors, customers who spend loans on Thursday, compared with than doubling the cities where more than $30 will get waived 400bn yuan of maturities. It also it’s available and partnering with delivery fees and will also be able kept the borrowing cost unchanged a major grocer as the pandemic- to request on-demand and at 2.95%. The LPR, which currently fueled delivery competition scheduled deliveries. stands at 3.85%, is reported as a heats up. Uber launched its grocery- spread over this rate. After launching its grocery delivery service last summer The LPR is seen as China’s de delivery service last July, Uber while Covid-lockdowns were facto benchmark funding cost since said yesterday that it can now still in force in many cities, and a reform in 2019 and is released be used in more than 400 loca- the initiative has seen consistent on the 20th of each month. While tions in the US including major growth, the company said. the rate is technically decided by metropolises like New York, San Almost 3 million consumers a group of 18 banks, the cost is Shanghai financial district Francisco and Washington. order groceries and other essen- widely regarded to be an indicator The ride-hailing and food- tials every month through Uber, for Beijing’s preference on loan rates. delivery service has also joined said Raj Beri, Uber’s global head People walk in Lujiazui financial district during sunset in Pudong, Shanghai, China. -BLOOMBERG with Albertsons Cos. to give Uber of grocery and new verticals, in customers access to 1,200 stores, the statement. TUESDAY 20 JULY 2021 BUSINESS 13 German economy seen Singapore prepares to swap its returning to pre-pandemic oil hub status for greener future size this quarter BLOOMBERG BLOOMBERG The German economy is on the Royal Dutch Shell Plc announced verge of recovering the ground late last year it would slash lost during the pandemic with a capacity by half at its biggest oil pickup in growth this quarter, refinery. For Singapore, where according to the Bundesbank. the plant has been a mainstay of While the institution’s the economy for six decades, it monthly report makes no marked a turning point in one mention of the floods that have of the most successful bets on devastated western parts of the fossil fuels in history. country, a separate report by ING The plant on Bukom Island Groep N V says the impact to the is part of a massive refining and country’s economy as a whole petrochemical industry built from the disaster is likely to be Germany’s heavy focus on largely on reclaimed islands just limited. off the city-state. In tandem with That’s because the floods in industry has helped the the cargo vessels they fueled, the North Rhine-Westphalia, Ger- economy, Europe’s largest, refineries helped drive Singa- many’s most populous state, and to navigate the pandemic pore’s economic success after neighboring Rhineland-Palat- better than most of its independence, attracting billions A general view of the Shell petroleum refinery off Bukom island in Singapore. inate, have largely hit smaller, tourism-dependent peers, in investment and spawning family-owned businesses rather businesses from plastics to rig than major industrial areas. which are only starting to construction and finance. in the region. Vena Energy of Economic Complexity. It’s still many more will likely disappear “The total economic impact catch up and already face “We’ve come a long way as Capital Pte., one of the largest a regional trading center for in Singapore in the coming should remain limited; even new travel restrictions a result of the energy and independent renewable power coal, natural gas and oil products years. For a nation with no though the existential impact amid resurgent infections. chemical sector,” said Tan See generators in Asia-Pacific, with and supports dozens of finance natural resources of its own, its on the retail or hospitality Leng, Singapore’s labor minister wind and solar projects houses that specialize in the position as an intermediary in sectors, which have already and second minister for trade stretching from Australia to commodities. More than 100 the global fuel supply chain will suffered enormously under the grew strongly in the second and industry. “The key thing is India, established its head- global chemical companies have be hard to replace. lockdowns should definitely quarter and should expand even not to completely sort of move quarters in a modernist glass- operations in the city. Singapore owes much of its not be underestimated,” ING’s faster in the third. away, but to see how we can and-steel tower in the city’s Bukom Island was there at economic success to imaginative Carsten Brzeski (pictured) said Germany’s heavy focus on pivot, how we can transform.” financial center, despite having the start. As far back as the 1890s and ruthless exploitation of its in a note. industry has helped the To that end, the government no other operations in the it was the landing place for location, wrote historian Michael “The bitter irony of these economy, Europe’s largest, to this year released the Singapore country. Russian kerosene. Shell opened Barr in his book “Singapore: A kind of natural disasters often navigate the pandemic better Green Plan 2030, setting out a “Given the regulatory trans- Singapore’s first refinery there Modern History.” In the energy is that the rebuilding of homes than most of its tourism- path for the city-state to become parency that Singapore has, it just prior to independence in sector that meant leveraging its and infrastructure could have dependent peers, which are only a leading regional hub for gives comfort to investors,” said 1961 and four more plants were position on one of the world’s a positive impact on GDP starting to catch up and already carbon trading, green finance, Vena Chief Executive Officer added over the next couple of busiest shipping routes, between growth going forward.” face new travel restrictions amid consulting and risk management Nitin Apte. “That was true in the decades. the Middle East and the major Finance Minister Olaf Scholz resurgent infections. and other services. Sovereign past and will be true in the future Exxon Mobil Corp.’s ante- economies in East Asia. has promised emergency aid of “Provided there won’t be wealth fund Temasek Holdings with renewables.” cedents soon followed, including That won’t necessarily at least €300m ($354m) to flood any noteworthy setbacks in Pte., along with the Singapore But Singapore’s switch from a refinery on the nearby island help its status as an energy victims and a multi-billion- view of the pandemic, and Exchange, Standard Chartered black gold to green energy is a of Ayer Chawan, now part of the hub for renewables like solar dollar program for recon- supply bottlenecks in manufac- Plc and DBS Group Holdings Ltd. difficult balancing act. In 2019, giant Jurong Island refining and wind that tend to be struction of damaged towns. The turing ease at least gradually, announced in May a plan to set the city was the world’s fourth- complex that Singapore is located in consuming coun- GDV insurers’ association fears the pace of economic up a global exchange for high- biggest exporter of refined hoping to transform into an tries, but it could still be an storms, floods, heavy rain and expansion should be even quality carbon credits. petroleum, and fuels and chem- industrial park for sustainable asset for hydrogen, which is hail in Germany could make this faster in the summer, and real The city also offers a modern icals accounted for around 23% energy and chemicals. gaining momentum as a pos- year one of the most damaging gross domestic product could base with a skilled workforce of its total merchandise trade, Now Shell’s investment is in sible emissions-free fuel for since 2013. The Bundesbank already reach its pre-crisis from which new energy com- according to data from the reverse. About 500 jobs will go transportation and other report, published yesterday, pre- level in the third quarter,” the panies can run their operations World Bank and the Observatory at the Bukom complex, and energy supplies. dicts gross domestic product Bundesbank said. IN BRIEF Nigeria seeks $1bn for key gas pipeline Exxon Mobil appoints former United REUTERS — LAGOS Airlines executive as finance head Nigeria is seeking $1bn so work can BENGALURU: Exxon Mobil Corp said yesterday it appointed former continue on a gas pipeline costing up to United Airlines and Xerox executive Kathryn Mikells as chief $2.8bn after Chinese lenders which had financial officer, effective August 9. pledged to offer most of the funds did not Andrew Swiger, Exxon’s principal financial officer and senior disburse cash as quickly as expected, three vice president, will retire on Sept.1 after more than 43 years of sources close to the matter said. service. -Reuters It is the latest sign of falling Chinese financial support for infrastructure projects across Africa, after years of major Chinese Robinhood sees valuation of up to $35bn lending for railway, energy and other projects. NEW YORK: Robinhood, the online brokerage that found itself A spokesman for state oil company embroiled in this year’s meme stock phenomenon, will go public NNPC, which is building the 614-km (384- seeking a market valuation of up to $35bn. mile) Ajaokuta-Kaduna-Kano (AKK) The company said in a regulatory filing yesterday that it hopes pipeline, said it was still negotiating with to price 55 million shares in its initial public offering in a range of the Chinese lenders - Bank of China and $38 to $42 per share. It could raise approximately $2.3bn if shares Sinosure - to cover $1.8bn of the project are sold at the high end of the range. cost. Nigerian National Petroleum Corporation (NNPC) headquarters are seen in Abuja, Nigeria. Robinhood is offering approximately 52.4 million shares. The “There’s no cause for alarm,” the company’s founders Baiju Bhatt and Vladimir Tenev, and Chief spokesman said, without saying whether summer, prompting it to turn to others. in June 2020, saying it would help generate Financial Officer Jason Warnick, are offering about 2.6 million shares. NNPC was turning to other lenders. “They are looking at Nigeria as one loan, 3.6 gigawatts of power and support gas- The company won’t receive any proceeds from shares sold by its But the three sources told Reuters the and right now, they feel they are too based industries along the route. The project officers and founders. The underwriters have an option to buy 5.5 company was now approaching others, exposed,” one source said. was to be funded under a debt-equity million shares to cover any overallotments. including export-import institutions, to con- Bank of China said it would not financing model, backed by sovereign guar- Robinhood’s IPO will give investors a chance to own part of a tinue work on the pipeline that will run comment on specific deals. Sinosure did antee and repaid through the pipeline fast-growing company that has rocked the traditionally staid bro- through the middle of the West African not respond to a request for comment. transmission tariff. kerage business. Since its launch in 2014, Robinhood’s popularity country to its northern economic hub Kano. The Nigerian ministries of transport, NNPC awarded engineering and con- has forced rivals to get rid of commissions and to offer apps that Chinese lenders had originally been finance and petroleum also did not reply struction work along three sections of the make trading easy and maybe even fun. lined up to fund the bulk of the estimated to requests for comment. pipeline to Oando, OilServe, China First The company said in its filing that it had 17.7 million monthly $2.5bn to $2.8bn cost of the project, which Chinese bank lending to African infra- Highway Engineering Company, Brentex active users as of March and more than half of its customers are first- is central to President Muhammadu structure projects has fallen across the con- Petroleum Services and China Petroleum time investors. Buhari’s plan to develop gas resources and tinent, from $11bn in 2017 to $3.3bn in 2020, Pipeline Bureau. Many of those first-time investors have started trading on Rob- boost development in northern Nigeria. a Baker McKenzie report said in April. Transportation Minister Rotimi Amaechi inhood due to the popularity of meme stocks like GameStop. The NNPC, which was funding 15%, said last With the continent facing an estimated said this month Nigeria was negotiating a trading frenzy that followed forced Robinhood to limit some trades year it had used its own funds to start con- annual $100bn infrastructure investment mix of loans from Chinese and European because of the massive volume and it faced some government struction. The sources said the Chinese deficit, the loss of Chinese funding leaves lenders to fund railway projects, after media scrutiny.-AP lenders would not agree to disburse the a big gap to fill. reports said it had initially planned to rely cash NNPC had expected by the end of the Nigeria began building the AKK pipeline primarily on Chinese banks. UK financial regulator slams ‘poorly Initial body assembly of drafted’ ESG fund filings Spain launches private-public Turkey’s homegrown car LONDON: Money managers are issuing “poorly drafted” pitches for investment funds meant to combat climate change, with technology fund of up to €4bn claims that “do not bear scrutiny,” said Britain’s financial- sucessfully completed markets regulator as it ordered companies to improve disclo- REUTERS — MADRID The state-side funds will come from sures. the European Union recovery package ANADOLU — ANKARA The Financial Conduct Authority said in one case, a fund Spain yesterday announced the and be handled through ICO, one of declared a sustainable strategy while containing two “high- creation of a new capital risk fund set Spain’s largest credit line programmes, Turkey’s Automobile Joint Venture Group carbon emissions” energy companies among its top 10 holdings. to raise up to €4bn for public-private while the remaining €2bn are expected (TOGG) has announced that it has successfully “Fund applications in this area often do not contain suffi- investment in technologies such as to come from private investment. completed the initial body assembly of the cient, clear information explaining their chosen strategy and cloud services, big data, artificialR Business and state interest in tech- country’s first indigenous car. how this relates to the assets selected for the fund,” Nick Miller, intelligence and blockchain. nologies such as machine learning, “Our first body is assembled with all parts head of the FCA’s department of asset management super- Called Next Tech, the fund will which trains algorithms to perform produced in our country,” TOGG said on vision, wrote in a letter to fund management chairs. “There is support digital startups and promote new, specialised processes, or Twitter. potential to undermine trust and deter consumers from this public-private partnerships in the biometry, which uses biological data In June 2018, five industrial giants: the segment of the market.” technology sector’s most in-demand within identification services, has sky- Anadolu Group, BMC, Kok Group, Turkcell and The regulator also published “guiding principles” to help areas, including machine learning, rocketed amid the COVID-19 pan- Zorlu Holding as well as an umbrella organi- funds set out their credentials on environmental, social and cybersecurity and the Internet of demic, as economic activity moved zation, the Union of Chambers and Commodity governance, or ESG, goals when asking for FCA approval. Things (IoT). online. Exchanges of Turkey, joined hands to create With investment booming in ESG funds, regulators are laying The Spanish government will hold Spain will be one of the main ben- TOGG. out more detailed rules for the industry and beginning to crack minority stakes of up to 49 percent in eficiaries of the EU recovery fund after TOGG, which aims to produce one million down on “greenwashing” practices. The global market for ESG- the various digital projects and com- being particularly hard hit by the pan- electric vehicles by 2032, will make five dif- related assets could grow to $53 trillion by 2025, and London panies, and initially invest up to €2bn demic, though a recent uptick in its jobs ferent models – SUV, sedan, c-hatchback, is vying with Paris and other cities across the European Union over a four-year period, Spain’s market suggested better days could be b-SUV and b-MPV – until 2030, and own their to be at the forefront of the business.-BLOOMERG Economy ministry said in a statement. within reach. intellectual and industrial property rights.