World Bank: Increased Risk of Palestinian Authority's Fiscal Collapse

FILE PHOTO: Palestinians queue as they wait to collect drinking water, amid shortages of drinking water, as the conflict between Israel and Hamas continues, in Rafah, in the southern Gaza Strip January 4, 2024. REUTERS/Saleh Salem/File Photo
FILE PHOTO: Palestinians queue as they wait to collect drinking water, amid shortages of drinking water, as the conflict between Israel and Hamas continues, in Rafah, in the southern Gaza Strip January 4, 2024. REUTERS/Saleh Salem/File Photo
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World Bank: Increased Risk of Palestinian Authority's Fiscal Collapse

FILE PHOTO: Palestinians queue as they wait to collect drinking water, amid shortages of drinking water, as the conflict between Israel and Hamas continues, in Rafah, in the southern Gaza Strip January 4, 2024. REUTERS/Saleh Salem/File Photo
FILE PHOTO: Palestinians queue as they wait to collect drinking water, amid shortages of drinking water, as the conflict between Israel and Hamas continues, in Rafah, in the southern Gaza Strip January 4, 2024. REUTERS/Saleh Salem/File Photo

The fiscal situation of the Palestinian Authority, which runs the West Bank, has worsened in the last three months, "significantly raising the risk of a fiscal collapse," the World Bank said on Thursday.
"The rapidly widening gap between the amount of revenues coming in, and the amount needed to finance essential public expenditure, is driving a fiscal crisis," it said.

“As of the end of 2023, this financing gap reached $682 million. This gap is projected to double within the coming months, reaching up to $1.2 billion,” it said in a report.

“Increased foreign assistance and the accumulation of further arrears to public employees and suppliers are the only available financing options for the Palestinian Authority,” it added.

According to the World Bank, the Palestinian economy continues to be under a massive shock in the first months of 2024.

“While the outlook for 2024 remains highly uncertain, a further economic contraction of anywhere between 6.5 and 9.6% is projected,” said the report.
 

 

 

 

 

 



Saudi Aramco, NextDecade Sign 20-year LNG Supply Deal

At the signing ceremony, from left: NextDecade Chairman and Chief Executive Officer Matthew Schatzman, Aramco Upstream President Nasir K. Al-Naimi, and Aramco Executive Vice President of Gas Abdulkarim Al-Ghamdi. Photo: Aramco website
At the signing ceremony, from left: NextDecade Chairman and Chief Executive Officer Matthew Schatzman, Aramco Upstream President Nasir K. Al-Naimi, and Aramco Executive Vice President of Gas Abdulkarim Al-Ghamdi. Photo: Aramco website
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Saudi Aramco, NextDecade Sign 20-year LNG Supply Deal

At the signing ceremony, from left: NextDecade Chairman and Chief Executive Officer Matthew Schatzman, Aramco Upstream President Nasir K. Al-Naimi, and Aramco Executive Vice President of Gas Abdulkarim Al-Ghamdi. Photo: Aramco website
At the signing ceremony, from left: NextDecade Chairman and Chief Executive Officer Matthew Schatzman, Aramco Upstream President Nasir K. Al-Naimi, and Aramco Executive Vice President of Gas Abdulkarim Al-Ghamdi. Photo: Aramco website

Saudi Aramco and US liquefied natural gas (LNG) provider NextDecade announced on Thursday that their respective subsidiaries have executed a non-binding Heads of Agreement (HoA) for a 20-year liquefied natural gas sale and purchase agreement (LNG SPA) for offtake from Train 4 at the Rio Grande LNG Facility at the Port of Brownsville, Texas.

Under the terms of the HoA, Aramco expects to purchase 1.2 million tons per annum (MTPA) of LNG for 20 years on a free-on-board basis at a price indexed to Henry Hub. Aramco and NextDecade are currently in the process of negotiating a binding agreement, and once executed, the effectiveness of which will be subject to a positive Final Investment Decision on Train 4.

"We look forward to finalizing the terms of a long-term LNG offtake agreement with NextDecade as we explore opportunities to expand our presence in international energy markets,” said Aramco Upstream President Nasir K. Al-Naimi.

“We expect LNG to play an important role in meeting the rising demand for secure and efficient energy,” he added.

NextDecade Chairman and CEO Matt Schatzman said: “We are pleased to have reached a Heads of Agreement with Aramco for LNG from Train 4, as Aramco seeks to expand its LNG portfolio. We look forward to finalizing the LNG SPA with Aramco and to pursuing other opportunities together.”