Dubai to Switch Upcoming Coal-Powered Plant to Natural Gas

FILE - The coal-powered Hassyan power plant is seen under construction in Dubai, United Arab Emirates, on Oct. 14, 2020. (AP Photo/Kamran Jebreili, File)
FILE - The coal-powered Hassyan power plant is seen under construction in Dubai, United Arab Emirates, on Oct. 14, 2020. (AP Photo/Kamran Jebreili, File)
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Dubai to Switch Upcoming Coal-Powered Plant to Natural Gas

FILE - The coal-powered Hassyan power plant is seen under construction in Dubai, United Arab Emirates, on Oct. 14, 2020. (AP Photo/Kamran Jebreili, File)
FILE - The coal-powered Hassyan power plant is seen under construction in Dubai, United Arab Emirates, on Oct. 14, 2020. (AP Photo/Kamran Jebreili, File)

A planned $3.4 billion coal-fired power plant in Dubai will be converted to use natural gas, the sheikhdom announced.

The announcement came in a statement quoting Sheikh Ahmed bin Saeed Al Maktoum, the chairman of the Dubai Supreme Council of Energy and CEO of the group owning the long-haul carrier Emirates.

The statement offered no details on how much the conversion would cost, nor how that would affect the plant’s planned time to come online in the energy-hungry sheikhdom. The plant also will include a desalination plant to provide the water needed to green its desert dunes.

The Hassyan power plant near Dubai’s border with Abu Dhabi is being built in part by China, which describes the plant as a “major engineering project of the Belt and Road Initiative,” a project which seeks to expand its influence in Africa and Asia.

According to The Associated Press, China had anticipated that the plant, which has General Electric Co. involved in its construction, will meet 20% of Dubai’s electrical demand.

Its construction comes as the world is warming, mainly due to rising levels of carbon dioxide and other greenhouse gases in the atmosphere, according to the vast majority of peer-reviewed studies, science organizations and climate scientists.

By far, most of the increase in temperature is the result of human activity, which includes burning coal, oil and natural gas. Those warming temperatures fuel extreme weather, such as powerful storms.



US Service Sector Sags in June as Orders Sink

The ISM reported on Monday that manufacturing activity had deteriorated further in June.- Reuters
The ISM reported on Monday that manufacturing activity had deteriorated further in June.- Reuters
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US Service Sector Sags in June as Orders Sink

The ISM reported on Monday that manufacturing activity had deteriorated further in June.- Reuters
The ISM reported on Monday that manufacturing activity had deteriorated further in June.- Reuters

A measure of US services sector activity slumped to a four-year low in June amid a sharp drop in orders, potentially hinting at a loss of momentum in the economy at the end of the second quarter.

The Institute for Supply Management said its nonmanufacturing purchasing managers (PMI) index dropped to 48.8 last month, the lowest level since May 2020, from 53.8 in May. It was the second time this year that the PMI had dropped below 50, which indicates contraction in the services sector.

Economists polled by Reuters had forecast the services PMI slipping to 52.5. The PMI fell below the 49 level that the ISM says over time generally indicates an expansion of the overall economy. The survey's business activity measure dropped to 49.6, the first contraction since May 2020, from 61.2 in May.

The ISM reported on Monday that manufacturing activity had deteriorated further in June.

The surveys, however, likely understate the economy's health, with so-called hard data like consumer spending suggesting a moderate pace of growth last quarter. The economy is adjusting to higher interest rates, which are slowing demand.

Growth estimates for the second quarter are around a 2% annualized rate. The economy grew at a 1.4% pace in the January-March quarter.

The survey's new orders measure dropped to 47.3, the lowest since December 2022, from 54.1 in May. Services employment continued to decline. That would suggest softer job growth in the months ahead, though the sentiment surveys have not been reliable predictors of payroll gains.

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The government's closely watched employment report on Friday is likely to show nonfarm payrolls increased by 190,000 jobs in June after rising 272,000 in May, according to a Reuters survey of economists. The unemployment rate is forecast unchanged at 4%.

Services inflation slowed a bit last month. The ISM's prices paid measure for services inputs slipped to 56.3 from 58.1 in May. That suggests the disinflation trend was back on track after price pressures flared up in the first quarter.