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Kuwait to Buy 500MW of Power Through GCC Interconnection Authority

Kuwaiti Electricity Ministry's acting undersecretary, Haitham Al-Ali, and CEO of the GCC Interconnection Authority, Engineer Ahmed Al-Ebrahim, sign the contracts on Sunday (KUNA)
Kuwaiti Electricity Ministry's acting undersecretary, Haitham Al-Ali, and CEO of the GCC Interconnection Authority, Engineer Ahmed Al-Ebrahim, sign the contracts on Sunday (KUNA)
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Kuwait to Buy 500MW of Power Through GCC Interconnection Authority

Kuwaiti Electricity Ministry's acting undersecretary, Haitham Al-Ali, and CEO of the GCC Interconnection Authority, Engineer Ahmed Al-Ebrahim, sign the contracts on Sunday (KUNA)
Kuwaiti Electricity Ministry's acting undersecretary, Haitham Al-Ali, and CEO of the GCC Interconnection Authority, Engineer Ahmed Al-Ebrahim, sign the contracts on Sunday (KUNA)

Kuwait on Sunday signed contracts to buy 500 megawatts (MW) of electricity through the Gulf Cooperation Council Interconnection Authority (GCCIA) to avoid summer blackouts.
The contracts are for 300 MW from Oman and 200 MW from Qatar, the electricity ministry's acting undersecretary, Haitham Al-Ali, told reporters at the signing event, adding that the contracts would last from June 1 to Aug. 31.
Al-Ali explained that the contracts were signed directly with the Gulf Interconnection Authority, which coordinates these transactions with Oman and Qatar on behalf of Kuwait.
He said this brings technical and economic benefits to Kuwait, especially with the proximity of the offers submitted for energy purchase prices to the cost of production.
The GCC Electricity Interconnection Authority oversees the management of a transmission system that integrates the power grids of all six member countries of the Gulf Cooperation Council.
The CEO of the GCC Interconnection Authority, Engineer Ahmed Al-Ebrahim, said in a similar statement that the energy market is one of the most efficient markets in the region.
He noted that the Gulf Electricity Market enables GCC countries to enter into bilateral agreements through a platform, which is responsible for the settlement and billing system that covers the needs of traders.
El-Ebrahim pointed out that the Ministry and the Gulf Interconnection Authority have agreed on the offers submitted for the supply of electric energy to Kuwait during the coming June so that they can be renewed during the coming July and August according to the conditions and needs of interconnected networks from member states.
The State of Kuwait owns 26.7% of the founding shares of the Gulf Interconnection Authority, a joint stock company registered by GCC member states to create an interconnection of power grids between its members, ensure energy supply to the networks of GCC member states, invest and achieve economic benefits in the areas of energy exchange and to diversify the sources of their energy imports.

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SABIC Expects Capital Expenditure of $4 Bn in 2025

One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
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SABIC Expects Capital Expenditure of $4 Bn in 2025

One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)
One of the Saudi Basic Industries Corporation (SABIC) plants... (SPA)

Saudi Basic Industries Corporation (SABIC), one of the world’s largest petrochemical companies, reported a net loss of 1.21 billion riyals ($322.6 million) for the first quarter of 2025, reflecting continued pressure on the global petrochemical sector.

Despite this, the company is maintaining disciplined capital investment management, with capital expenditure expected to range between $3.5 billion and $4 billion in 2025.

The loss was primarily attributed to a 1.05 billion riyal decline in gross profit, driven by rising feedstock prices, along with non-recurring costs of 1.07 billion riyals linked to a strategic restructuring initiative aimed at streamlining annual costs by approximately 345 million riyals and improving long-term operational efficiency.

SABIC CEO Abdulrahman Al-Fageeh, speaking at a press conference following the release of the company’s results, highlighted ongoing challenges in the global economy, including a slowdown in global GDP growth.

 

 

“The first quarter business environment was marked by uncertainty, with global economic growth at just 2.97%, along with a slowdown in the manufacturing PMI, which intensified challenges for the sector,” he said.

Despite the losses, Al-Fageeh noted SABIC's remarkable resilience, supported by what he described as “stable demand” for petrochemicals. He emphasized the company’s continued focus on operational excellence and its transformation efforts throughout the year.

SABIC projects its capital expenditure to range between $3.5 billion and $4 billion in 2025, reaffirming its commitment to creating long-term value through operational excellence, transformation, and systematic growth as part of its future vision.

Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, commented to Asharq Al-Awsat that initial forecasts from various research firms prior to the results announcement were mixed. While some expected a significant year-on-year drop in net profit, others predicted revenue growth.

“Looking at the reported results, we see that revenue aligned with expectations, indicating slight year-on-year growth, while the reported net loss was smaller than some estimates, which had anticipated larger losses,” Al-Farraj said.

“However, the results still fall short of profits from the same period last year. It is important to consider the impact of one-time restructuring costs when making comparisons,” he explained.