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Türkiye to Expand Gas Export Hub to Europe, Resumes Iraqi Oil Flow

Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t
Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t
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Türkiye to Expand Gas Export Hub to Europe, Resumes Iraqi Oil Flow

Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t
Türkiye's Energy Minister Alparslan Bayraktar at a press conference in Ankara (Reuters) t

Türkiye believes its presence is indispensable to the success of energy and transport corridors in the region, revealing plans to expand its gas infrastructure to facilitate the transit of Russian gas to Europe.

Turkish Foreign Minister Hakan Fidan asserted that effective, sustainable operation of energy transportation corridors without Türkiye's involvement is not possible.

Speaking at the 10th World Turkish Business Council (DTIK) Congress in Istanbul, Fidan said: "We hope to move into the implementation phase of the Development Road project, which is of great importance for prosperity and stability in the Middle East within the next few months."

He highlighted ongoing intense negotiations with Iraq, the UAE, and Qatar about the project.

Fidan emphasized the significance of new trade routes, especially in light of recent geopolitical developments, including the COVID-19 pandemic, the Russo-Ukrainian war, and the rivalry between the United States and China, or more broadly, the West and China.

He noted that these developments have revived discussions of other trade routes previously considered theoretically, emphasizing that trade routes don't merely cater to commerce but also reflect geostrategic competition.

- A gas hub

Meanwhile, Energy Minister Alparslan Bayraktar stated that Türkiye plans to expand its gas infrastructure as it lays the groundwork to establish a gas exchange from which countries in southeast Europe can source gas.

Following its incursion into Ukraine in February of the previous year, Russia proposed setting up a gas hub in Türkiye last year to replace lost sales to Europe.

Turkish President Recep Tayyip Erdogan and Russian President Vladimir Putin have given directives to commence the project.

They discussed specific steps during their recent meeting in Sochi after the project's delay due to the earthquake catastrophe in Türkiye last February and the presidential and parliamentary elections in May.

Türkiye plans to expand its gas infrastructure in northwest Türkiye's Thrace region, connecting LNG gasification terminals and an upgraded storage facility in Silivri, west of Istanbul.

Bayraktar told a press briefing on Thursday that gas coming from Azerbaijan, Iran, and Russia through pipelines could also feed into this hub and be priced in a local gas exchange.

- Iraqi Oil Exports Resumption

Furthermore, Bayraktar confirmed that Iraq's northern oil export route through Türkiye will soon be ready to resume operation after checks on pipeline maintenance and repairs to flood damage.

Bayraktar mentioned that an inspection of the oil pipeline is complete, and it will soon be "technically" ready for operations.

Türkiye halted flows on Iraq's northern oil export route on March 25 after an arbitration ruling by the International Chamber of Commerce (ICC) ordered Ankara to pay Baghdad damages for unauthorized exports by the Kurdistan Regional Government (KRG) between 2014 and 2018.

"As of today, the independent surveyor completed their survey, and now they're preparing their report," Bayraktar said without mentioning a date for resumption of oil flows.

Iraq and Türkiye previously agreed to wait until maintenance works were complete before resuming the pipeline that contributes about 0.5 percent of the global oil supply. Sources said oil flows are not expected to start before October.

The Kurdistan Regional Government lost roughly $4 billion in lost exports.

- Nuclear power plant

The Minister revealed that the ongoing negotiations with Russia, China, and South Korea regarding constructing a second nuclear power station in Thrace, northwestern Türkiye, are progressing.

"We came to a very important point that we need to finalize [the deal] in a few months," said Bayraktar.

He also pointed to ongoing talks with Russia concerning the third nuclear power station in the Sinop.

Bayraktar said Türkiye needs to produce 20 gigawatts from the nuclear power plants in the future.

Russia is currently constructing the Akkuyu station, Türkiye's first nuclear power plant, situated in Mersin.

Bayraktar revealed that Türkiye aims to establish a broader nuclear ecosystem that requires atomic power to transition to clean energy by 2050.

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Business

China Leads Wave of Clean Power Wastage as Grids Globally Hit Limits

Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)
Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)
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China Leads Wave of Clean Power Wastage as Grids Globally Hit Limits

Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)
Solar panels at the Dalad Banner Photovaltic Base in Kubuqi desert during organized media tour, in Ordos, Inner Mongolia Autonomous Region, China, June 12, 2026. (Reuters)

China turned away enough clean energy to power Mexico for a year in the six months through June as its grids hit their limits, while networks in many other nations such as Australia and Japan also failed to keep pace with a surging renewables buildout.

Curtailments, or the pre-emptive rejection of wind or solar power because a grid reaches capacity, are emerging as a growing challenge to renewables globally and underscore continued reliance on fossil fuels.

China, the world's top producer of solar power, rejected 360 terawatt-hours (TWh) of clean power from January to June, up 49% from the same period a year earlier, according to a report this month by Global Energy Monitor (GEM) and the Center for Research on ‌Energy and Clean ‌Air (CREA).

The report's estimates for curtailments far exceed figures given by the Chinese ‌government.

Insufficient ⁠transmission infrastructure and ⁠supply contracts that guarantee operations of newly built coal-fired power plants in China are forcing the rejection of abundant renewable output, analysts say.

"Curtailment in China is structural, not a temporary bottleneck. We expect curtailment pressure to continue through the rest of this decade," said Yuan Ren, analyst at consultancy Wood Mackenzie.

Curtailments, along with a new policy that removes a guaranteed fixed price for renewables, have contributed to a 66% drop in new solar installations this year in China. At the same time, China's coal-fired power generation is expected to rise again this year, reversing a first-in-a-decade ⁠decline.

CURTAILMENTS AFFECTING RENEWABLE INVESTMENTS

China's National Energy Administration, which stopped publishing monthly data on ‌curtailment by province in March, said in a statement last ‌month that 8.6% of the country's solar output and 9.1% of its wind output were curtailed in the first half ‌of 2026.

But GEM and CREA estimate China rejected 26.1% of its total wind and solar output in ‌the six months through June, using weather-adjusted data to account for unreported curtailment.

The National Energy Administration did not respond to a faxed request for comment.

With curtailment worsening, it's harder "to do pre-assessment of the financial viability of projects," said Shawn Shuwei Zhang, chief economist at Beijing-based consultancy Draworld Environment Institute.

Clean power investments are already shifting from standalone solar projects towards solar-plus-storage ‌to reduce exposure to curtailment, Wood Mackenzie's Ren said.

CURTAILMENT RISING GLOBALLY

Rising curtailment extends beyond China, to the rest of the Asia Pacific and Europe.

In Australia's ⁠National Electricity Market, curtailments surged ⁠37% to 2.93 TWh, or 7% of its wind and solar output, in the first half of 2026, while Japan's grid rejected 2.35 TWh — a jump of 34% and representing 4% of renewable output, data from their electricity markets showed.

India, the No.3 global solar generator, curtailed 8.13 TWh of solar power in the quarter ended June, its renewable energy minister said. That accounts for 14% of its solar output in the three months through June, grid data showed.

That compared with March quarter curtailment of 0.47 TWh of renewable output that includes both solar and wind, according to energy think tank Ember. Indian solar generation is, however, typically much higher in the June quarter, meaning curtailments will be higher too.

Efficient deployment and an immediate scale-up of battery storage could help stall curtailment globally, Ember analyst Kostantsa Rangelova said, adding that Bulgaria and Chile provided effective models that could be emulated.

"Chile added 4 GWh of batteries in 2025, more than doubling its installed capacity. Most of this new storage was co-located with solar plants, helping reduce curtailment," Rangelova said.

Business

Riyadh Opens Second Real Estate Balance Program With Land Price Cap

Residential neighborhoods in the Saudi capital, Riyadh (SPA) 
Residential neighborhoods in the Saudi capital, Riyadh (SPA) 
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Riyadh Opens Second Real Estate Balance Program With Land Price Cap

Residential neighborhoods in the Saudi capital, Riyadh (SPA) 
Residential neighborhoods in the Saudi capital, Riyadh (SPA) 

Riyadh’s real estate market entered a new phase Sunday with applications opening for the second round of the Real Estate Balance Program.

Overseen by the Royal Commission for Riyadh City (RCRC), the program aims to provide between 10,000 and 40,000 developed and planned residential plots annually over the next five years, at prices not exceeding SR1,500 per square meter.

The Real Estate Balance Platform aims to help balance the real estate market and increase homeownership among eligible beneficiaries in Riyadh.

It also seeks to ensure fair distribution and maintain a balance between supply and demand in the city's residential real estate market.

The Royal Commission for Riyadh City announced last week that applications for the program’s second year would be accepted from Aug. 16 through Sept. 15 via its online platform. The initiative follows directives from Saudi Crown Prince and Prime Minister Mohammed bin Salman to take measures to restore balance to the capital’s real estate sector.

As the program expands, its potential to influence the broader market is growing. Prices set for land offered through the initiative provide a new benchmark for homebuyers and an alternative to conventional market listings, increasing competition and potentially prompting landowners and real estate agencies to reassess asking prices.

The program is part of broader government efforts to increase Riyadh’s real estate supply and develop unused land, helping bring supply and demand into better balance as the capital experiences rapid population and economic growth.

Real estate specialists say the second round could help narrow the gap between asking prices and what buyers can afford. Its impact could extend beyond direct beneficiaries because increasing the supply of land at predetermined prices puts competitive pressure on other sellers, particularly in areas where comparable alternatives are available.

Khalid Al-Jasser, a real estate specialist and chairman of Amaken International Group, previously told Asharq Al-Awsat that the program’s impact extends beyond the land market to financing, construction, building materials and housing-related services.

Its strength, he argued, lies not only in offering land at set prices but in addressing the underlying problem by increasing supply. A larger, more orderly supply of residential land gives citizens more choices and reduces the ability of scarcity to drive prices higher.

Real estate developer Ahmed Omar Basodan described the program’s continuation for a second year as an important signal that tackling high housing costs requires a sustained approach rather than a temporary measure.

As Riyadh grows rapidly, residential supply must continually keep pace with demographic and economic expansion, he noted. The program’s most significant effect could ultimately be a shift in market behavior by reducing expectations that land scarcity will continue indefinitely to support higher prices.

 

 

 

 

 

Business

Restart of Offshore Rigs Revives Saudi Energy Supply Chains

An offshore rig operated by Arabian Drilling (Company) 
An offshore rig operated by Arabian Drilling (Company) 
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Restart of Offshore Rigs Revives Saudi Energy Supply Chains

An offshore rig operated by Arabian Drilling (Company) 
An offshore rig operated by Arabian Drilling (Company) 

Saudi Arabia is gradually restoring operational capacity in its offshore drilling sector after ADES Holding and Arabian Drilling announced on consecutive days that they were resuming operations at offshore rigs temporarily suspended because of regional developments.

The restart brings a significant portion of the offshore fleet back into service, providing greater visibility over drilling activity and reviving demand across a broad network of suppliers, logistics providers and technical services.

Offshore rigs are specialized facilities used to drill oil and gas wells at sea. They house the equipment, systems and technical crews needed for drilling and well control, as well as well maintenance and rehabilitation and other operations related to field development and production.

Their operations require a continuous flow of equipment, spare parts, drilling materials and chemicals, along with maintenance, safety, catering and personnel transport services. Supply vessels carry much of these requirements from ports and logistics bases to offshore worksites.

Restarting a rig therefore also restores demand across a wide range of related activities, from transport, ports and warehousing to equipment, maintenance and engineering services.

ADES, followed by Arabian Drilling

ADES Holding, a company backed by Saudi Arabia’s Public Investment Fund, was the first to announce that it had received notices to resume operations at all its offshore rigs temporarily suspended in the Kingdom. The company said utilization of its contracted jack-up rigs exceeded 90%, supported by strong day rates.

ADES said the resumption provided greater visibility over regional activity and underscored the resilience of the Gulf offshore drilling market, noting that the suspensions stemmed from regional developments rather than weak demand.

ADES Holding CEO Mohamed Farouk noted that the development reflected an improvement in the regional situation and the readiness of the company’s teams to resume operations, while stressing that the safety of employees and assets remained its top priority.

The company maintained its 2026 EBITDA guidance at SAR 4.50 billion to SAR 4.87 billion ($1.20 billion to $1.30 billion), supported by the group’s scale and geographic reach across 123 rigs, as well as operating synergies from its acquisition of Shelf Drilling.

The following day, Arabian Drilling announced that it had received notices to resume operations at its remaining suspended offshore rigs and said it expected offshore fleet utilization to reach 100% by the end of the third quarter of 2026.

The company said the restart reflected the continued recovery in offshore drilling activity, with full fleet utilization marking an important milestone that would strengthen its operational readiness and ability to meet market demand.

Arabian Drilling had announced in July that three offshore rigs temporarily suspended because of regional conditions could resume operations. The suspensions were precautionary measures taken in coordination with clients and relevant parties, with safety given priority.

Restarting an entire ecosystem

Logistics expert Hassan Al-Heliel told Asharq Al-Awsat that the return of the rigs should not be viewed simply as bringing drilling assets back into service, but as restarting an integrated ecosystem stretching from suppliers and manufacturers to warehouses and ports, and ultimately to offshore rigs and well sites.

An offshore rig, he explained, is the final link in a vast supply chain encompassing spare parts, equipment, consumables and drilling chemicals, as well as maintenance, inspection, calibration, safety services, catering and the transport of workers and equipment.

The rigs also depend on a network of supply vessels linked in turn to land transport, ports, warehouses and logistics support bases. Restarting a rig therefore means renewed demand for an entire network of onshore services.

Rig activity is not limited to drilling new wells, but also includes well maintenance and rehabilitation, specialized drilling and services related to the development and production of oil and gas fields.

Beneficiaries range from logistics companies, land and marine transport operators, warehouses, ports and cargo handlers to suppliers of equipment, spare parts, chemicals and safety systems, as well as maintenance, engineering and support-service providers.

Opportunity for local content

The economic impact of the restart could also create broader opportunities for Saudi companies to localize a larger share of the offshore drilling value chain.

These include manufacturing spare parts and components locally, expanding maintenance and repair capabilities, establishing specialized supply centers, localizing technical services and developing Saudi companies capable of providing integrated solutions for offshore rigs.

Al-Heliel said local content should not be measured solely by purchases from Saudi companies, but also by the domestic economy’s ability to meet critical requirements and ensure continuity of operations.

Expanding local manufacturing and services would reduce exposure to international shipping risks, freight-rate volatility, long lead times and geopolitical disruptions, strengthening the resilience of energy-sector supply chains.

Companies combining quality, speed and local capacity could gain a competitive advantage, Al-Heliel underlined, because offshore drilling competition is not determined by price alone. A supplier able to deliver a critical component or service on time may be more valuable than a cheaper supplier requiring weeks to do so, particularly given the high cost of rig downtime.

Readiness determines the pace

Restarting a rig typically begins with technical assessments and inspections of key equipment and systems, followed by checks on crew readiness and the availability of spare parts and materials.

Companies must then restore logistical readiness by preparing warehouses and supply bases and ensuring that land and marine transport and supply vessels are available. If a rig needs to be repositioned, it must be moved to the operating site before safety and operational tests are conducted and activities gradually resume.

The process can be relatively quick if a rig is in good condition and requires no major maintenance, but may take several weeks if repairs, re-equipping or relocation are necessary.

“The timing of the restart is not determined by the rig alone, but by the readiness of the supply chain around it,” Al-Heliel stated. Technical readiness, he added, is insufficient unless spare parts, operating materials and marine services are available when needed.

With ADES and Arabian Drilling returning their offshore rigs to operation, the impact extends beyond drilling companies themselves, reactivating an economic cycle involving suppliers, manufacturers, transport companies, ports, warehouses and technical and engineering services.

The restart also gives Saudi companies an opportunity to capture a greater share of energy-sector spending through expanded local manufacturing and services while building faster, more resilient supply chains.