TAQA to Invest $11 Billion in UAE

TAQA said that it will work on commercially viable opportunities to reduce its reliance on the oil and gas sector. Asharq Al-Awsat
TAQA said that it will work on commercially viable opportunities to reduce its reliance on the oil and gas sector. Asharq Al-Awsat
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TAQA to Invest $11 Billion in UAE

TAQA said that it will work on commercially viable opportunities to reduce its reliance on the oil and gas sector. Asharq Al-Awsat
TAQA said that it will work on commercially viable opportunities to reduce its reliance on the oil and gas sector. Asharq Al-Awsat

Abu Dhabi National Energy Company (TAQA) announced plans to increase its renewable energy assets, in a shift away from reliance on oil. It plans to invest AED40 billion ($10.9 billion) in UAE.

TAQA will generate more than 30 percent of its power from renewable sources by 2030, compared with 5 percent currently.

The company also plans to expand its power-generation capacity in the UAE from 18 gigawatts to 30 gigawatts. It intends to boost its global generating capacity by 15 gigawatts.

TAQA operates oil and gas assets in North America and Iraq, and electricity assets in Morocco. This year, it took control of power generation assets of an Abu Dhabi state-owned firm.

The investment was announced as part of a new 2030 strategy.

The new strategic plan places at its core the global acceleration of the energy transition, and TAQA’s ambition to become a champion for low carbon power and water.

Growth is expected through meeting increased power, water, and network capacity needed in its home market of the UAE, as well as from selective opportunities internationally.

TAQA’s business will be anchored in ESG principles and practices. As part of that commitment, the company is working to develop and publish greenhouse gas emission reduction targets.

Chairman Mohamed Al Suwaidi said, “TAQA has the support of our shareholders for this new strategy and is on its way to becoming the recognized low carbon power and water champion from Abu Dhabi."

He added that “this strategy sets out how the company will achieve this ambition. As we emerge from the pandemic, around the world there will be an increasing focus on the need for clean, reliable, and sustainable sources of power and water.”

"TAQA is uniquely positioned to use its platform to play a key part in meeting Abu Dhabi's own ambitions in this space, as well as taking its expertise to international markets where it can add value," Suwaidi said.

For his part, Group Chief Executive and Managing Director Jasim Thabet said, “TAQA will become a champion for low carbon power and water.”

“We will expand our portfolio of renewables and highly efficient water desalination, drive efficiency in our networks and distribution business and invest in growing the UAE regulated asset base,” he added.



Oil Falls on Signs of Progress in US-Iran Talks amid More Market Stress

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
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Oil Falls on Signs of Progress in US-Iran Talks amid More Market Stress

The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo
The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, US, November 22, 2019. REUTERS/Angus Mordant/File Photo

Oil prices fell more than 2% on Monday on signs of progress in talks between the US and Iran while investors remained concerned about economic headwinds from tariffs which could curb demand for fuel.

Brent crude futures slipped $1.51, or 2.2%, to $66.45 a barrel by 1115 GMT after closing up 3.2% on Thursday. US West Texas Intermediate crude was at $63.11 a barrel, down $1.57, or 2.4%, after settling up 3.54% in the previous session. Thursday was the last settlement day last week because of the Good Friday holiday, Reuters reported.

"The US-Iran talks seem relatively positive, which allows for people to start thinking about the possibility of a solution," said Harry Tchilinguirian, group head of research at Onyx Capital Group. "The immediate implication would be that Iranian crude would not be off the market."

Markets also have lower liquidity due to the Easter holiday, which can exacerbate price moves, he added. In the talks, the US and Iran agreed to begin drawing up a framework for a potential nuclear deal, Iran's foreign minister said, after discussions that a US official described as yielding "very good progress." The progress follows further sanctions by the US last week against a Chinese independent oil refinery that it alleges processed Iranian crude, ramping up pressure on Tehran.

Markets also came under stress on Monday, after US President Donald Trump last week made criticisms about the Federal Reserve. Gold prices rose to another record, with jitters rippling into energy markets due to concerns about demand, according to analysts.

"The broader trend remains tilted to the downside, as investors may struggle to find conviction in an improving supply-demand outlook, especially amid the drag from tariffs on global growth and rising supplies from OPEC+," said IG Market Strategist Yeap Jun Rong. OPEC+, the group of major producers including the Organization of the Petroleum Exporting Countries and allies such as Russia, is still expected to increase output by 411,000 barrels per day starting in May, though some of that increase may be offset by cuts from countries that have been exceeding their quotas. A Reuters poll on April 17 showed investors believe the tariff policy will trigger a significant slowdown in the US economy this year and next, with the median probability of recession in the next 12 months approaching 50%. The US is the world's biggest oil consumer.

Investors are watching for several US data releases this week, including April flash manufacturing and services PMI, for direction on the economy.

"This week's series of PMI releases could further underscore the economic impact of tariffs, with both manufacturing and services conditions across major economies expected to soften," IG's Yeap said, adding oil prices face resistance at the $70 level.