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ACWA Power to Collaborate with Indonesia’s Pertamina to Energize Tuban Refinery

The agreement was signed by Dannif Danusaputro, CEO of PNRE, and Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power. Asharq Al-Awsat
The agreement was signed by Dannif Danusaputro, CEO of PNRE, and Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power. Asharq Al-Awsat
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ACWA Power to Collaborate with Indonesia’s Pertamina to Energize Tuban Refinery

The agreement was signed by Dannif Danusaputro, CEO of PNRE, and Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power. Asharq Al-Awsat
The agreement was signed by Dannif Danusaputro, CEO of PNRE, and Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power. Asharq Al-Awsat

Saudi Arabia’s ACWA Power and Indonesia’s Pertamina New & Renewable Energy have signed a joint development agreement (JDA) to develop the core utilities supply for the Tuban Grass Root Refinery and Petrochemical Project.

The agreement was signed by Dannif Danusaputro, CEO of PNRE, and Paddy Padmanathan, Vice Chairman and Chief Executive Officer of ACWA Power, at the B20 Summit, according to a press release.

The ceremony was witnessed by Indonesian Minister of Energy and Mineral Resources Arifin Tasrif, Indonesian Chairman of Chamber of Commerce and Industry Arsjad Rasjid, Chair of B20 Indonesia Shinta Kamdani, and CEO & President Director of Pertamina Nicke Widyawati.

A refinery capable of producing aromatics and ethylene, the Tuban facility is located in Java, eastern Indonesia. The scope of the JDA comprises development of a 575 MW power generation facility, a steam generation component with a capacity of 3,288 tons per hour; and a water desalination plant with a total capacity of 363,480 m3/day.

“With climate change implementation strategies at the top of the global consciousness, an integrated approach that can enable decarbonization in a responsible and reliable manner is key to mitigating the impact of carbon-intensive industries,” said Padmanathan.

“As a company that this driving the transition, we are proud and privileged to be collaborating with such a visionary company as PERTAMINA NRE, leveraging our extensive expertise in delivering renewable energy and desalinated water at scale, and now green hydrogen as well, to deliver successful outcomes,” he added.

As for Danusaputro, he said: “It is very exciting that we are going to support Tuban GRR&P project by providing low carbon solutions.”

“Having a reputable strategic partner is very crucial in terms of technology transfer and risk sharing. We believe this collaboration will create significant value.”

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Business

Fitch Affirms Tunisia at CCC-, Expects Growth to Fall to 0.9%

A square in the Tunisian capital (Reuters)
A square in the Tunisian capital (Reuters)
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Fitch Affirms Tunisia at CCC-, Expects Growth to Fall to 0.9%

A square in the Tunisian capital (Reuters)
A square in the Tunisian capital (Reuters)

Fitch Ratings on Saturday affirmed Tunisia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at "CCC-," also expecting growth to fall to 0.9% of GDP in 2023 from 2.4% in 2022.
The agency said Tunisia's 'CCC-' rating reflects the heightened uncertainty around the government's ability to meet its large budget financing needs - revised up in the absence of progress on key subsidy reforms - and increasing debt maturities.
It added that the affirmation balances Fitch’s revised assumption that an IMF program is unlikely to be reached in 2024 with the better than expected resilience of international reserves despite the limited availability of external funding.
Also, Fitch expects GDP growth to fall to 0.9% of GDP in 2023 from 2.4% in 2022, as a result of the sharp contraction of the rain-fed wheat production, impacted by rain shortfalls.
“We project a mild recovery to 1.5% average in 2024-2025, supported by a favorable base effect,” it said.
The agency expects growth will remain constrained by the high sovereign risk impacting the business environment and investor sentiment, high inflation (expected to average 9.3% in 2023), and the increasing crowding-out impact on the private sector from the government's high financing needs.
Fitch also assumed that fiscal financing needs to be consistently at or over 16% of GDP (over $8 billion) per year in 2023-2025 compared with 14% (about $6 billion) in 2022, and well above the 2015-2019 average of 9%.
This, it said, results from persistent wide budget deficits, and increasing domestic and external debt maturities, at about 10% of GDP per year in 2024-2025.
The agency also noted that domestic maturities are pushed up by the government's increasing reliance on shorter-term domestic financing to compensate for scarce external financing. External maturities are higher, partly because of upcoming Eurobond repayments (850 million euro in February 2024, and $1 billion in January 2025).
Therefore, Fitch said it expects external financing to reach about $2 billion by year-end.
“We do not expect Tunisia to access an IMF program in 2024, constraining external financing prospects."
In its baseline assumptions, Fitch also said the Tunisian government would need to raise the equivalent of 12% of GDP in domestic financing in 2023-2024 to cover the financing gap.
“We see this as a stretch to the domestic market capacity to absorb the public sector financing needs. Exposure to the public sector already represents more than 20% of the banking system's total assets, reaching up to 40% for some public banks,” it said.
The agency then noted that the sector has limited liquidity and banks' ability to fund the government increasingly relies on central bank purchases of government debt on the secondary market.

Business

China-Saudi Investment Conference to Kick off in Beijing Next Tuesday

Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)
Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)
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China-Saudi Investment Conference to Kick off in Beijing Next Tuesday

Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)
Saudi Arabia is seeking to increase investments and trade exchange worldwide. (Asharq Al-Awsat)

China will be hosting the China-Saudi Investment Conference in Beijing next Tuesday, SPA said on Saturday.
The Ministry of Investment is organizing the event in coordination with the China Chamber of Commerce for the Import and Export of Machinery and Electronic Products (CCCME).
The event will take place on the sidelines of a visit by Saudi Minister of Investment Khalid bin Abdulaziz Al-Falih to China and the Hong Kong Special Administrative Region from 7 - 12 December 2023.
This conference aims to enhance the existing strategic partnership between Saudi Arabia and China in investment, trade, and the economy. It is aligned with the Kingdom's Vision 2030, which seeks to strengthen strategic partnerships and advance trade and investment activities in various fields.
The conference also supports the Chinese Belt and Road Initiative, which aims to connect Asia with Africa and Europe.
More than 700 attendees, including high-level government representatives, senior officials, CEOs, investors, and entrepreneurs, are anticipated at the conference. Their focus will center on reviewing and discussing investment opportunities and initiatives aimed at fostering increased cooperation between the two countries.
The conference agenda includes dialogue sessions covering various topics, such as clean energy, finance, investment, mining, metals, tourism, entertainment, food security, agriculture, logistics services, shipping, supply chains, digital economy, artificial intelligence, modern manufacturing industries, and advanced technology through workshops.
In addition to the conference, the minister will embark on visits to several Chinese cities to meet with business leaders in those regions. Technical teams from the Ministry will conduct workshops and field visits in these cities to explore cooperation opportunities aimed at enhancing economic and investment relations. Participation is expected from representatives in both the government and private sectors.
During the recent Asia Future Investment Initiative (FII) Priority Summit held in Hong Kong, the Minister of Investment took part in a symposium. Here, he emphasized the pivotal role of the Middle East region in fostering prosperity among Southern countries. He stressed the significance of energy and digital transformation as tools for achieving development leading the region towards globalization.
The diplomatic ties between the Kingdom and China span over 30 years, with China currently being Saudi Arabia's largest trading partner. The trade and investment between the two nations have shown significant growth in recent years.

Business

COP28 Nears Crucial Hours as Divergence Takes Center Stage

Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)
Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)
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COP28 Nears Crucial Hours as Divergence Takes Center Stage

Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)
Sultan Al Jaber, President of COP28, alongside the Singaporean Minister of Environment and the Norwegian Minister of Environment in a press conference on Friday (AP)

COP28 president Sultan Al Jaber has urged countries to get out of their comfort zones and work together to reach an agreement before the two-week United Nations climate summit ends.

The scene at COP28 remains dominated by divergence, with the UN Climate Agency releasing a new draft of the conference agreement on Friday.

This draft included a range of options for the future use of traditional fuels, a highly contentious issue at the conference.

In the coming days, countries are expected to focus on this issue in the hope of reaching consensus before the summit concludes on December 12.

Options mentioned in the draft ranged from “gradual phasing out of fossil fuels in line with the best available science” to no inclusion of any language regarding the future use of fossil fuels.

The document also specified the option of “rapid and unconditional phasing out of coal energy this decade, with an immediate halt to the construction of new coal-fired power plants.”

“Let’s please get this job done,” said Al Jaber, opening a plenary session as the summit entered its toughest phase of negotiations.

“I need you to step up and I need you to come out of your comfort zones,” he added.

The President of COP28 appointed eight ministers, half from developed countries and the other half from the Global South, to work on four topics to break the deadlock in negotiations.

Energy Minister Suhail Al Mazrouei of the UAE, on Thursday, on the sidelines of the COP28 summit, emphasized the need for a gradual phase-out of coal.

“I don't believe we should talk about the gradual phase-out of fossil fuels because technologies are also improving. What if we have technology in the future that removes all carbon dioxide emissions from fossil fuels and makes it as clean as any other fuel type? Why fight it before we have an alternative?” said Al Mazrouei.

Since the adoption of the Loss and Damage Fund agreement on November 30, Al Jaber announced that countries had raised over $726 million to inject into the fund, with more expected by the end of COP28.

Pledges at COP28 are still far from the hundreds of millions needed annually to help developing countries adapt to the warming world, including rising sea levels and increased heat waves.

Business

Morocco Joins International Campaign to Phase out Coal

Morocco's flag with a woman's shadow seen on it. AFP file photo
Morocco's flag with a woman's shadow seen on it. AFP file photo
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Morocco Joins International Campaign to Phase out Coal

Morocco's flag with a woman's shadow seen on it. AFP file photo
Morocco's flag with a woman's shadow seen on it. AFP file photo

Morocco on Friday joined an international campaign to phase out coal, as it plans to secure more than half of its energy needs from renewables in the next seven years.

The Powering Past Coal Alliance (PPCA) now counts 60 national governments united by the desire to make a clean break with coal-fired power generation, Reuters reported.

Earlier at the COP 28 climate summit, the United States, the UAE, the Czech Republic, Cyprus, Dominican Republic, Iceland, Kosovo, Malta and Norway joined the global initiative, PPCA said in a statement.

Morocco "will work together with the PPCA to develop a plan for phasing (coal) out," PPCA said without offering deadlines.

About 70% of Morocco's electricity is generated from coal, with renewable energy representing 20% so far this year, according to official figures.

Morocco plans to raise the share of renewable energy in its energy mix to more than 52% by 2030.

 

 

 

 

 

 

Business

EU Considers Restarting WTO Case Against US Over Steel Tariffs

FILE PHOTO: Chess pieces are seen in front of displayed US and EU flags in this illustration. REUTERS
FILE PHOTO: Chess pieces are seen in front of displayed US and EU flags in this illustration. REUTERS
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EU Considers Restarting WTO Case Against US Over Steel Tariffs

FILE PHOTO: Chess pieces are seen in front of displayed US and EU flags in this illustration. REUTERS
FILE PHOTO: Chess pieces are seen in front of displayed US and EU flags in this illustration. REUTERS

The European Union is considering reopening a case at the World Trade Organization against the United States over a steel and aluminum dispute that saw the allies hit each other with tariffs on more than $10 billion of goods, Bloomberg News reported on Friday, citing people familiar with the matter.
The EU will, however, refrain from immediately reimposing retaliatory tariffs on American goods over the disagreement, the report said.

Business

FAO: World Food Prices Hold Steady in November

Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)
Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)
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FAO: World Food Prices Hold Steady in November

Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)
Women buy food from a roadside stall in Colombo, Sri Lanka, Friday, Dec. 8, 2023. (AP Photo/Eranga Jayawardena)

The United Nations food agency's world price index held steady in November, with lower international cereal prices offset by higher prices of vegetable oils.
The Food and Agriculture Organization's (FAO) price index, which tracks the most globally traded food commodities, averaged 120.4 points in November, around October's levels which were the lowest since March 2021.
The November reading marked a 10.7% decline versus last November.
The FAO cereal price index decreased by 3.0% month-on-month in November, lead by a sharp fall in maize prices, while those of wheat declined by 2.4%, Reuters reported.
Vegetable oil prices, however, rose 3.4% from October.
"Palm oil prices rebounded more than 6% in November, chiefly underpinned by more active purchases by leading importing countries and seasonally lower outputs in major producing countries," the FAO said in a statement.
The agency's dairy price index rose 2.2% from October, led by high demand for butter and skimmed milk powder in Northeast Asia, and increased pre-holiday demand in Western Europe.
Sugar prices rose 1.4% month-on-month in November but averaged 41.1% higher than last November thanks to worsening production prospects in Thailand and India.
In a separate report on cereal supply and demand, the FAO raised its forecast for world cereal production this year to a record 2.823 billion metric tons versus 2.819 billion previously - representing a 0.9% increase from 2022.
"Looking ahead to next season, planting of the 2024 winter wheat crop is ongoing in the northern hemisphere and, reflecting lower crop prices, area growth could be limited," said the FAO.
Nevertheless, the agency sees world cereal stocks up 2.7% by the end of the 2024 season, while the cereal stock-to-use ratio is forecast at 30.8% in 2023/24, "indicating an overall comfortable supply level".

Business

Saudi Arabia, Hong Kong Sign MoU on Enhancing Direct Investments

Saudi Arabia and the Hong Kong have signed a memorandum of understanding (MoU) that aims at encouraging direct investments. SPA
Saudi Arabia and the Hong Kong have signed a memorandum of understanding (MoU) that aims at encouraging direct investments. SPA
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Saudi Arabia, Hong Kong Sign MoU on Enhancing Direct Investments

Saudi Arabia and the Hong Kong have signed a memorandum of understanding (MoU) that aims at encouraging direct investments. SPA
Saudi Arabia and the Hong Kong have signed a memorandum of understanding (MoU) that aims at encouraging direct investments. SPA

Saudi Arabia and the Hong Kong Special Administrative Region of the People's Republic of China have signed a memorandum of understanding (MoU) that aims at encouraging direct investments.

The memorandum was signed in the presence of Saudi Minister of Investment Eng. Khalid Al-Falih.

The MoU aims to enhance joint direct investments by exchanging rules and regulations related to the investment environment and cooperation in organizing exhibitions and business sessions and exchanging visits and expertise.

The memo was signed during a Saudi delegation’s visit to Hong Kong and elsewhere in China, headed by the minister of investment.

Business

Al-Swaha Meets with CEO of Google, Alphabet to Support Growth of Digital Economy

Al-Swaha met with the CEO of Google and Alphabet in Silicon Valley. SPA
Al-Swaha met with the CEO of Google and Alphabet in Silicon Valley. SPA
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Al-Swaha Meets with CEO of Google, Alphabet to Support Growth of Digital Economy

Al-Swaha met with the CEO of Google and Alphabet in Silicon Valley. SPA
Al-Swaha met with the CEO of Google and Alphabet in Silicon Valley. SPA

Saudi Minister of Communications and Information Technology (CIT) Eng. Abdullah bin Amer Al-Swaha met in Silicon Valley in California on Friday with the CEO of Google and Alphabet, Sundar Pichai, and a number of senior executives to expand the strategic partnership in the field of cloud computing, innovation and capacity development.

According to an official report, released by the ministry of CIT in Riyadh, the two sides discussed areas of common interest and deepening the strategic partnership in the field of cloud computing to enhance the growth of the digital economy and entrepreneurship and provide a pioneering generation in the field of technology and innovation to contribute to accelerating the digital transformation journey in the Kingdom.

Al-Swaha also met with the CEO of Intel to discuss the partnership and develop research in network technologies and artificial intelligence solutions to contribute to enriching innovative solutions and building a digital economy based on innovation and technology.

Business

China's Leaders Pledge to Spur Domestic Demand, Economic Recovery

FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo
FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo
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China's Leaders Pledge to Spur Domestic Demand, Economic Recovery

FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo
FILE PHOTO: A traveller is seen with his belongings at a railway station, following the coronavirus disease (COVID-19) outbreak, in Beijing, China January 13, 2021. REUTERS/Thomas Peter/File Photo

China will spur domestic demand and consolidate and enhance the economic recovery in 2024, the Politburo, a top decision-making body of the ruling Communist Party, was quoted by state media as saying on Friday.
The government has in recent months unveiled a flurry of measures to shore up a feeble post-pandemic economic recovery that has been held back by a property crisis, local government debt risks, slow global growth and geopolitical tensions.
Ratings agency Moody's slapped a downgrade warning on China's credit rating on Tuesday, saying costs to bail out debt-laden local governments and state firms and control its property crisis would weigh on the growth outlook of the world's second-largest economy.
According to Reuters, analysts believe the government will have to unveil more stimulus to support the economy, which still faces headwinds.
China will continue to implement a proactive fiscal policy, which will be moderately strengthened, and implement a prudent monetary policy, which will be "flexible, moderate, precise, and effective", state media quoted the Politburo as saying.
The meeting, which was chaired by President Xi Jinping, also said the country will enhance the consistency of macroeconomic policies, the official Xinhua news agency reported.
China will "effectively enhance economic vitality, prevent and resolve risks, improve social expectations, consolidate and enhance the positive trend of economic recovery, continue to promote the effective improvement of quality and reasonable growth of the economy," Xinhua said.
"Efforts should be made to expand domestic demand and form a virtuous cycle of mutually promoting consumption and investment. We need to deepen reforms in key areas and continuously inject strong impetus into high-quality development."
President Xi said in a meeting with non-Communist Party representatives held on Wednesday that the country's economic recovery is still at a critical stage, Xinhua said in a separate report on Friday.
Most analysts believe China's growth is on track to hit the government's target of around 5% this year, but that compares with a COVID-weakened 2022 and activity remains uneven. The Politburo's meeting on economic work is usually a prelude to the annual agenda-setting Central Economic Work Conference, which is expected to be held around mid-December.
China's government advisers will recommend a steady growth target for 2024 and more stimulus to the policymakers' meeting.
"There is no doubt fiscal policy will take a leading role in 2024," said Bruce Pang, chief economist at Jones Lang Lasalle.
Analysts at UBS expect China to set a fiscal deficit target of 3.5%-3.8% of gross domestic product, and a special local government bond quota of around 4 trillion yuan ($560 billion) for 2024, versus this year's 3.8 trillion yuan.
The government has launched a slew of policy measures in recent months to shore up a feeble post-pandemic economic recovery impacted by a property crisis, local government debt risks, slow global growth and geopolitical tensions.
The central bank has delivered modest interest rate cuts and pumped out more cash in recent months to support growth.
In October, China unveiled a plan to issue 1 trillion yuan in sovereign bonds by the end of the year, raising the 2023 budget deficit target to 3.8% of gross domestic product (GDP) from the original 3%.
The Politburo also studied plans for anti-corruption work and reviewed regulations on party disciplinary action, Xinhua said.

Business

Gold Heads for First Weekly Drop in Four Weeks ahead of US Jobs Data

FILE PHOTO: Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse//File Photo
FILE PHOTO: Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse//File Photo
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Gold Heads for First Weekly Drop in Four Weeks ahead of US Jobs Data

FILE PHOTO: Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse//File Photo
FILE PHOTO: Gold bars are pictured at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. REUTERS/Denis Balibouse//File Photo

Gold was on track for its first weekly fall in four weeks after the dollar firmed, although prices held steady on Friday as markets looked ahead to key US jobs data to gauge the chance of a rate cut by the Federal Reserve as early as March.
Spot gold edged 0.1% higher to $2,030.32 per ounce by 0750 GMT. Bullion, however, has fallen nearly 2% for the week so far. US gold futures were steady at $2,047.10.
Bullion scaled an all-time peak of $2,135.40 on Monday on elevated bets for a rate cut by the Fed, before dropping more than $100 on uncertainty over the cut's timing, Reuters reported.
The dollar index was on track to snap a three-week losing streak, making greenback-priced gold more expensive for other currency holders.
Gold remains well-supported above $2,006 per ounce level, but stronger-than-expected payrolls data could put this support level in jeopardy, said Kelvin Wong, senior market analyst for Asia Pacific at OANDA.
Data this week suggested that the US labor market was gradually losing momentum as higher borrowing costs curb demand in the broader economy.
The US non-farm payrolls report for November is due at 1330 GMT, which should show that employers added 180,000 jobs last month.
Markets are pricing in a 60% chance of a US rate cut as soon as March, CME's FedWatch Tool showed, but a Reuters poll saw rates unchanged until at least July.
Lower interest rates tend to support non-interest-bearing bullion.
"Outlook remains very bright for gold. Expect prices to remain in the range of $2,005 and on the upside it can test $2,080 in the near-term," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.
Spot silver rose 0.1% to $23.81 per ounce, while platinum gained 0.9% to $915.19 and palladium inched 0.6% higher to $975.20 per ounce.