Nebras Expands Presence in Jordan's Power Sector
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LOAN DEAL | Page 4 Pakistan set to fi nalise $12bn IMF bailout Monday, March 4, 2019 Jumada II 27, 1440 AH GLOBAL REACH: Page 16 Ooredoo, Dell GULF TIMES EMC launch smart stadium solutions for BUSINESS mega events Woqod shareholders’ meet on March 25 Woqod will convene its extraordinary general assembly meeting on March 25 to approve some amendments to the company’s articles of association. “As the attendance percentage did not reach 75% of the share capital necessary for holding the first meeting of Nebras expands presence the extraordinary general assembly, it was decided to postpone the meeting to be held on the alternative date on March 25,” a Woqod spokesman said. in Jordan’s power sector US shale can beat ebras Power and Nebras Power In- vestment Management BV (NPIM) Saudi Arabia and pay Nhave entered into a sale and pur- chase agreement (SPA) to acquire the AES investors: Rystad Corporation’s (AES) interest in three Jorda- nian power projects together with Mitsui & Company. Bloomberg Nebras currently owns nearly 24% in each London of the three projects. Mitsui & Company currently owns a 40% interest in each of the three projects. US shale-oil companies are on track to add The closing of the acquisition is subject to production equivalent to Saudi Arabia’s output by obtaining approval from lenders to each of 2030, without needing the external financing the the project companies. industry’s boom has relied on so far, according Upon closing, NPIM will be a majority Rystad Energy AS. shareholder and will have operational con- “They are going to be very profitable, they are going trol on these plants, which have an aggregate to be able to return surprisingly good cash amounts capacity of more than 650MW representing to investors and still grow one Saudi Arabia,” said Per more than 14% of the current installed ca- Magnus Nysveen, senior partner at the Oslo-based pacity in Jordan. consultant. All power plants are located in Al-Mana- Although the shale revolution has helped American kher, 15km east of Amman. IPP1 Power Plant oil production more than double since the start of and IPP4 Power Plant started commercial the decade, its dependence on debt and equity to operations in August 2009 and July 2015 re- grow production volumes while offering limited spectively. returns to investors has raised doubts about its AM Solar Power Plant is expected to sustainability. reach its commercial operational date in That trend seems to be reaching a tipping point, July 2019. with drillers entering a new era of discipline in which On the occasion, Nebras chairman Fahad they’ve cut capital spending and launched share Hamad al-Mohannadi said, “This step is in buybacks. line with the vision of Nebras’ board of di- The frugality will continue during the shale industry’s rectors to place the company as a successful coming expansion, which will see it add about 1mn international company, and we are continu- bpd of production a year through to the end of the ing the development and investments with next decade, effectively creating a new Saudi Arabia, our international partners in power gen- according to Rystad. eration and water desalination projects re- “The financing party is over,” he said. But drillers gionally and globally. The expansion of our “have enough cash from the producing wells to investments in Jordan is a result of the trust finance quite a lot of capex, so they don’t need this and confi dence we have in the Jordanian en- financing any more.” ergy market and its regulations over the last Companies have been cash-flow neutral this year, few years.” and will be “very positive” in 2020, Nysveen said in Khalid Mohammed Jolo, CEO, Nebras an interview in London. Drillers learned to squeeze Power said, “Nebras started its invest- costs during the market downturn in the middle of ment activities in 2014, in continuation to this decade, slashing the oil-price needed to produce our current 4 investment in Jordan, we are a barrel by half to about $40, Rystad estimates. proud to enter in this transaction to support Al-Mohannadi (left) and Jolo: Branching out to become a successful international company. Despite the flood of American crude, oil markets these investments. This indicates the im- are unlikely to become oversupplied as demand portance of the Jordanian power market for pany’s long-term strategy to expand and able part of the electricity demands needed Kingdom of Jordan. With the addition of is healthy and output is declining at ageing fields us. The company continues its commitment strengthen its international presence and in the country.” Nebras Power chief busi- these projects, Nebras and its partners pro- around the world, said Nysveen. In fact, markets will to expand its investments with balanced expertise. This project is consistent with ness development offi cer Faisal Obaid al- vide over 700MW to the electricity grid of become “dangerously tight” as the growth in shale steps and diversifi cation in terms of geogra- our goals for development of infrastructure Siddiqi said, “We are pleased to enter into Jordan, contributing to the steady growth in output levels off toward the end of the next decade, phies and technologies. projects that support the development and this transaction which is an expression of energy demand and the stabilisation of the Nysveen predicts. “This step is in line with the com- economic growth through making avail- our strong partnership with the Hashemite energy sector in the country.” Qatargas supplies commissioning LNG cargo to India’s Ennore terminal NEBI is seen strengthening growth Owned by IndianOil LNG, Ennore is Qatar has established a strong India’s fifth operational LNG terminal partnership with India since July 1999 prospects across sectors in Qatar when Qatargas started supplying LNG to Petronet. Since then, it has delivered over Qatargas has supplied a commissioning 1,500 cargoes under its various long-term By Santhosh V Perumal with a combined economy of more gistics can bring about are positives liquefied natural gas (LNG) cargo for sales and purchase agreements as well Business Reporter than $2.1tn, as part of the strategy for the country’s macro economy India’s newest LNG receiving terminal, as supplying significant volumes into the to forge new alliances and connect and the banking sector,” the offi cial Ennore, near the southern Indian city of short-term/spot market. businesses. said. Chennai. India is a key market for Qatargas atar’s New Emerging Belt The new initiative has been ne- The link to the huge market is a The commissioning cargo was delivered given its geographical proximity and Initiative (NEBI), linking a cessitated by the unjust economic big opportunity for the domestic onboard the vessel ‘Golar Snow’ on growth potential. In addition to the Q$2.1tn economic bloc with blockade that was imposed on Doha businesses, which would require February 25 by the Swiss commodity Ennore Terminal, terminals located at Doha, is expected to lift the pros- since June 2017 by Saudi Arabia-led more support services (both fi nan- trader, Gunvor, to the state-owned Indian Mundra and Jaigarh are also due to pects across the sectors, particularly quartet. cial and non-fi nancial) and this in Oil Corporation (IOC), which owns and be commissioned in the near future trade and banking, and the economy It aims to position Qatar as the turn creates more allied businesses, operates the 5mn tonnes per annum as well as a host of other gas related as a whole. most promising hub for fi rms to set the banker said. (mtpa) terminal. Qatargas sold the cargo infrastructure projects. Terming NEBI as an excellent up to operate in and out of Qatar via Highlighting that total foreign free-on-board (FOB) basis to Gunvor. These additional terminals will increase strategy, the Qatar Free Zones Au- key strategic alliances. In the cur- direct investment from NEBI coun- The import facility - at Kamarajar port India’s capacity to import LNG from thority (QFZA) is of the view that rent geopolitical environment, Qa- tries was estimated at more than in Thiruvallur district at the outskirts 30mtpa to 44mtpa – a 46% increase beyond the alliance with natural tar can emerge as an alternative hub. Qatar is already an attractive $150bn in 2016; al-Jaida had said of Chennai - is owned by IndianOil LNG, as India continues to make strides in partners, Qatar should also reach “Our strategy will also include an international business hub, with “this economic initiative will bring a joint venture of IOC, private equity achieving its ambitious target of 15% gas out to the rest of the world. emphasis on new emerging mar- 20 business councils registered on us close to our regional partners, fund IDFC Alternatives and ICICI Bank, in the energy mix. “The inter-linkages between kets such as Kuwait, Oman, Tur- the QFC platform from countries and will connect our businesses, according to IndianOil LNG’s website. Since the first production in 1996, these countries are positive for key, Pakistan, India, as well as sev- around the world. which in turn, will increase the fl ow Ennore will be India’s fifth operational Qatargas has delivered cargos to 31 Qatar’s free zones as companies eral others,” Qatar Financial Center of FDI and create new opportunities LNG terminal and the first LNG terminal countries and also operates the Jetty themselves will lead to more com- Authority chief executive Yousuf of a bank said the initiative (NEBI) across all sectors.” on the East Coast of India. Once fully Boil-Off Gas facility, Al Khaleej Gas, two panies to enter Qatar.