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Qatar Energy: Developments in Red Sea May Affect Gas Shipments

Fitch Ratings said on Wednesday that shipping disruptions and re-routing away from the Red Sea “will maintain the geopolitical premium in the main commodity markets.” (Photo: Reuters)
Fitch Ratings said on Wednesday that shipping disruptions and re-routing away from the Red Sea “will maintain the geopolitical premium in the main commodity markets.” (Photo: Reuters)
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Qatar Energy: Developments in Red Sea May Affect Gas Shipments

Fitch Ratings said on Wednesday that shipping disruptions and re-routing away from the Red Sea “will maintain the geopolitical premium in the main commodity markets.” (Photo: Reuters)
Fitch Ratings said on Wednesday that shipping disruptions and re-routing away from the Red Sea “will maintain the geopolitical premium in the main commodity markets.” (Photo: Reuters)

Qatar Energy announced on Wednesday that the attacks in the Red Sea “may affect” the scheduling of liquefied natural gas (LNG) shipments, in contrast to production, which it assured was “continuing without interruption.”

In a statement, the company said: “While the ongoing developments in the Red Sea area may impact the scheduling of some deliveries as they take alternative routes, LNG shipments from Qatar are being managed with our valued buyers.”

Meanwhile, Fitch Ratings said on Wednesday that shipping disruptions and re-routing away from the Red Sea “will maintain the geopolitical premium in the main commodity markets, including for oil and gas, chemicals, and fertilizers, unless there are wider shipping – or production – disruptions in the region.”

In a statement, the ratings agency said: “Heightened geopolitical risk, including the recent shipping disruptions, will maintain the oil price premium. However, without material disruptions to actual oil production, or a wider escalation of attacks to more vital oil transport routes in the region, we do not expect a strong upside to our USD80/bbl Brent price assumption for 2024, as there is material OPEC+ spare capacity.”

Fitch added that total oil shipments via the Suez Canal, the SUMED pipeline, and the Bab-el-Mandab Strait accounted for about 12% of global oil seaborne trade in the first half of 2023, according to the US Energy Information Administration (EIA).

The agency noted that Houthi attacks have mainly been concentrated in the narrow strait of Bab-el-Mandab.

“Northbound oil shipments via the Suez Canal and the SUMED pipeline are directed to Europe, mainly from Saudi Arabia and Iraq. Southbound flows are primarily Russian oil exports to China and India following the EU sanctions on Russian oil imports,” it stated.

BP, Shell, QatarEnergy, and many shippers have halted transit through the Suez Canal, with some shippers re-routing around Africa, according to the agency, which noted that this “may marginally tighten the oil and gas markets, albeit temporarily, as supply chains need to adjust to the alternative route taking about a fortnight longer.”

However, Fitch does not anticipate any material impact on prices.

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Saudi Arabia Recycles 100,000 Electronic Devices to Limit Environmental Impact

The Saudi capital, Riyadh. (Asharq Al-Awsat)
The Saudi capital, Riyadh. (Asharq Al-Awsat)
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Saudi Arabia Recycles 100,000 Electronic Devices to Limit Environmental Impact

The Saudi capital, Riyadh. (Asharq Al-Awsat)
The Saudi capital, Riyadh. (Asharq Al-Awsat)

Saudi Arabia was able to recycle more than 100,000 electronic devices to reduce their environmental damage as part of an effort to build a sustainable digital future that supports the efficient use of resources.

A recent report by the Communications, Space and Technology Commission, a copy of which was reviewed by Asharq Al-Awsat, showed the Kingdom’s efforts in harnessing modern technologies and creating innovative business models that contribute to building a sustainable future.

These efforts are in line with Saudi Arabia’s digital sustainability strategy, which seeks to promote circular digital economy initiatives and develop regulations to reduce electronic waste in three countries.

At the 28th Conference of the Parties, the International Telecommunication Union and more than 40 partners, including governments, companies and United Nations agencies, launched the Green Digital Action Initiative to promote digital initiatives.

The Saudi Communications Authority led the efforts in the digital economy, one of the initiative’s six tracks, which demonstrates the importance of cooperation between government and industry to fill the gaps in electronic waste management for the sake of a renewable economy.

The Authority launched a set of tools to develop digital sustainability strategies in cooperation with the Digital Cooperation Organization, which includes five detailed steps, starting with raising awareness, achieving best practices, developing the strategy, promoting coordination with relevant stakeholders and finally starting the implementation phase.

These tools demonstrate the Kingdom’s commitment to contributing to the green economy and exchanging experiences with the international community to ensure the adoption of best practices to reach sustainable societies.

The report also showed that $649 billion was earmarked to support the adoption of environmental, social and corporate governance practices in 2021, an increase of 227 percent from 2019.

Saudi Arabia’s continued investments in its digital infrastructure over the past years qualify the Kingdom to be a leader in digital sustainability commitments globally, the report underlined, adding that the Communications, Space and Technology Commission is prepared to become one of the most advanced fifth-generation digital regulatory bodies at the international level.