US SHALE | Page 2 WTO NOD | Page 11 Output goes US gets OK to hit from explosive EU with $7.5bn to sluggish Airbus sanction Tuesday, October 15, 2019 Safar 16, 1441 AH TRADING SUPPORT: Page 12 Robust buying GULF TIMES interests lift QSE index above BUSINESS 10,400 levels Qatar CPI inflation edges down in September: PSA QFC is eyeing more By Santhosh V Perumal Business Reporter Qatar’s cost of living, based on CPI (consumer price index), declined 0.75% month-on-month in September despite seven of the 12 sectors treading a flat path, according to the off icial South Korea fi rms amid statistics. The country, however, witnessed a marginal 0.06% jump in inflation on yearly basis, according to figures released by the Planning and Statistics Authority (PSA). The International Monetary Fund, in its latest Article IV consultation with Qatar, said inflation is projected to peak at 3.7% in 2020 with the introduction of a value added tax, but converge growing trade relations to 2% in the medium term. The transport sector, which has a 14.59% weight, saw its group he Qatar Financial Center (QFC) is eyeing index plummet 4.46% on a monthly basis and 0.19% yearly this more South Korean fi rms in view of the September. The sector has the direct linkage to the dismantling of Tgrowing trade relation between the two administered prices of petrol and diesel. countries. The index of housing, water, electricity and other fuels – with a “The QFC is committed to continuing to de- weight of 21.89% in the CPI basket – saw 0.2% and 2.07% declines velop and strengthen these relations, and is al- month-on-month and year-on-year respectively. ready home to several key Korean businesses The CPI of September 2019, excluding “housing, water, electricity, such as Hanwha Techwin and Haeahn Architec- gas and other fuels, showed an increase of 0.66% on yearly basis ture. We look forward to welcoming even more even as it fell 0.9% month-on-month. businesses from South Korea to the QFC in the Food and beverages, which has a weight of 12.58% in the CPI future,” QFC Authority chief executive Yousuf basket, witnessed a marginal 0.07% dip year-on-year in September Mohamed al-Jaida told the Qatar-Korea Business 2019 but registered 0.99% increase year-on-year. Forum, attended by high-level South Korean of- However, the index of clothing and footwear, which has a 5.11% fi cials including ministers and business leaders. bearing on the CPI basket, expanded 1.56% on a monthly basis but Highlighting that Qatar and Korea share ex- saw a 3.07% plunge year-on-year. tensive bilateral economic relations that con- Miscellaneous goods and services, which has a 5.69% weight, tinue to grow year on year; he said while Doha is saw its index gain 0.16% and 4.38% on monthly and yearly basis currently the top liquefi ed natural gas supplier respectively in September. to South Korea, trade volume between two na- The index of recreation and culture, which has a 12.68% weight in tions increased by an impressive 44% to reach the CPI basket, saw a flat path month-on-month this September $16.8bn in 2018. but witnessed a 1.83% decline on a yearly basis. The forum was earlier inaugurated by HE Ali Education, with a 5.75% weight, also saw its index tread a flat bin Ahmed al-Kuwari, Minister of Commerce and course on a monthly basis but registered a 0.93% growth on Industry, and included networking sessions and yearly basis. panel discussions that explored investment op- In the case of furniture and household equipment segment, portunities in Qatar, as well as the impact of arti- which has a 7.7% weight in the CPI basket, the index remained fi cial intelligence (AI) and smart cities on business. unchanged month-on-month but there was a marginal 0.04% dip Al-Jaida was joined by Sheikh Ali Alwaleed on a yearly basis. al-Thani, chief executive, Investment Promo- The index of restaurants and hotels, which has a 6.08% weight, tion Agency; Khalid Abdulla al-Mana, executive treaded a flat course month-on-month but witnessed 1.43% rise director of Business Finance, Qatar Develop- year-on-year in September 2019. ment Bank; and Hamad al-Mohannadi, busi- Communication, which carries a 5.87% weight, saw its group index ness development manager, Qatar Free Zones remain unchanged month-on-month; whereas it witnessed a 1.26% Authority. increase year-on-year this September. The index of health, which Other participants included HE Sheikh Faisal carries a 1.79% weight, was also flat on a monthly basis whereas it bin Qassim al-Thani, chairman, Qatari Business was down 0.08% on yearly basis in September 2019. Association; Sheikh Khalifa bin Jassim al-Thani, The index of tobacco, which has 0.27% weight, was flat on a chairman, Qatar Chamber; and Sung Yun-mo, monthly basis, but more than doubled year-on-year with the South Korean Minister of Trade, Industry and government substantially hiking excise tax on cigarettes from Energy; as well as Yongmaan Park, chairman, January this year. Korea Chamber of Commerce and Industry. Al-Jaida addressing the Qatar-Korea Business Forum. Qicca issues final and binding judgments in 18 Santos targets Asia LNG growth arbitration cases in 2018 QNA with $1.4bn Conoco agreement Doha Bloomberg energy producer: Santos and Conoco’s “What we’re seeking is alignment,” said The Qatar International Centre for Conciliation and Sydney northern Australia assets produced about Gallagher on a media call. “What we’re Arbitration (Qicca) has said it issued final and binding 94mn barrels of oil equivalent last year, looking for is people to be balanced on judgments in 18 arbitration cases out of 22 it received last compared to Woodside Petroleum Ltd’s both sides of the joint venture,” he added, year. Board member for International Relations at Qicca, antos Ltd agreed to buy ConocoPhil- 91.4mn. referring to partners having stakes in both Dr Sheikh Thani bin Ali al-Thani said during a legal seminar lips’ northern Australia business for Sanford C Bernstein & Co analysts said Darwin LNG and Barossa. organised by Qicca, an aff iliate of Qatar Chamber, that these S$1.4bn in a deal that will boost the Conoco’s northern Australia business has Gallagher said the company is in ad- indicators reflect the success of the centre in spreading Adelaide-based oil and gas producer’s po- a net asset value of about $1.8bn, citing vanced discussions with LNG buyers the culture of arbitration within the business community in sition in the growing Asian liquefi ed natu- Rystad Energy AS. The deal has “compel- for gas off-take from Barossa, including Qatar. ral gas market. ling strategic merit,” RBC energy analyst with an existing partner in Darwin LNG, He said Qicca last year decided on an arbitration case The transaction may allow Santos to Ben Wilson said in a note to clients, add- and was looking to contract 60%-80% related to contracts concluded in accordance with the rules become the country’s largest independent ing that the price looked reasonable based of gas volumes for the project prior to of Islamic finance worth QR2.5bn, and challenged it before energy producer and capitalise on a push on RBC’s valuation of the assets at around Gallagher: Asia focus. taking a FID, which is expected in early the Court of Cassation, which upheld the ruling issued by by Asian consumers, including China, to $1.63bn. 2020. Qicca. switch to cleaner burning natural gas away Santos, which posted its biggest share shareholders, two of its priorities in recent As an upstream, brownfi eld project, Since its establishment in 2006, Qicca has worked to from coal. Conoco is selling its operating gain this year, said it would fund the ac- years. Barossa was “low risk” compared to new spread the culture of arbitration among the Qatari business interests in the Darwin LNG processing quisition from existing cash and $750mn Conoco is also operator of the Australia greenfi eld LNG projects around the world, community especially as it off ers fast and complete plant and the Bayu-Undan, Barossa and in new two-year debt. Conoco will receive Pacifi c LNG export facility in Queensland, “and because of that it’s got a very com- resolution process to disputes between parties, Sheikh Thani Poseidon gas fi elds. a further $75mn once Barossa enters fi nal which is not part of the Santos deal. petitive cost of supply,” said Gallagher. Its said. “The acquisition of these assets fully investment decision. Santos plans to sell 25% of Conoco’s in- location close to Asian markets also meant Qicca counsellor Dr Minas Khatchadourian presented aligns with Santos’ growth strategy to Conoco is the second US energy major terest in the Darwin LNG export plant to that shipping costs were less than from the proposal on the new rules of the centre regarding the build on existing infrastructure positions, to announce plans to sell down its inter- South Korean fi rm SK E&S as part of the other competing projects. “It’s got very powers of the emergency arbitrator, noting that any party while advancing our aim to be a leading ests in Australia after Exxon Mobil Corp agreement. The company is also in talks robust economics, even in this soft market may submit a written request to the centre to appoint an regional LNG supplier,” Santos chief ex- in September said it would start a process with the facility’s joint venture partners, that we fi nd ourselves in today.” emergency arbitrator to issue measures of an urgent or ecutive offi cer Kevin Gallagher said in a to fi nd a buyer for its Bass Strait producing which include Inpex Corp, Tokyo Gas Co Santos has ambitious plans to grow emergency nature, before the formation and appointment of statement.