China’s Return, Price Ceiling Are Two Challenges to Global Energy Market Balance

In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)
In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)
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China’s Return, Price Ceiling Are Two Challenges to Global Energy Market Balance

In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)
In the frame, Cornelia Meyer, macro-economist and energy expert. A refueling station in the Chinese city of Chongqing. (Reuters)

Cornelia Meyer, macro-economist and energy expert, said the reopening of China following the zero-Covid-19 policy and the price ceilings imposed on the purchase of energy products from Russia will pose challenges to the balance of the global energy market.

She also expected the demand for gas to grow one percent this year, while the supply to increase to less than one percent.

In an interview with Asharq Al-Awsat, Meyer said the shrinking demand for gas in Europe was a result of the war in Ukraine, as European countries sought to curb their reliance on Russian gas.

This will inevitably increase the demand for the liquefied natural gas (LNG), which will lead to a rise in the cost of LNG shipments and an increase in gas prices in Europe and around the world, according to the expert.

Nonetheless, Meyer emphasized that with the growth of Chinese demand, energy markets will become more stable.

“With China emerging from the zero Covid-19 policy, the demand for LNG will increase, making it difficult for Europe to control the shipped supplies,” she said.

Meyer noted that the current situation was due to the fact that the gas price ceiling set by the European Union to punish Russia could be counterproductive in attracting the required quantities of gas, as there are fewer buyers, which gives them great bargaining power.

According to Meyer, this comes at a time when the demand for oil has exceeded pre-pandemic levels that topped 102 million barrels per day, while the market is still tight, with OPEC’s surplus production capacity at about two barrels per day.

Growth and production of LNG supplies would remain limited until 2025 amid a very long business cycle, she noted.

The Ukrainian war, according to the expert, led to a decrease in Russian gas consumption and production and a redirection of Russian crude oil trade routes away from Europe to Asia, specifically through China, India and Türkiye, where Russian crude is bought at a huge discount.

Regarding the energy markets, Meyer said she believed that the lack of investment was the main challenge in the hydrocarbon sector.

“Saudi Arabia and the UAE invested reliably, while international oil companies were reluctant to do so due to profitability concerns, amid the Covid-19 pandemic and environmental legislation,” she remarked, adding: “Saudi Arabia is not a player in the global gas and LNG markets, but it is set to become a major player in hydrogen in the future.”



Saudia Soars to 17th in Global Airline Rankings Amid Bold Transformation

A Saudia aircraft (Company’s website)
A Saudia aircraft (Company’s website)
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Saudia Soars to 17th in Global Airline Rankings Amid Bold Transformation

A Saudia aircraft (Company’s website)
A Saudia aircraft (Company’s website)

In a remarkable leap forward, Saudia has climbed to 17th place in the 2025 Skytrax ranking of the world’s best airlines, marking a significant improvement from its 82nd position in 2016.

The achievement comes as the global aviation sector grapples with mounting challenges, including supply chain disruptions, fluctuating demand, and the pressures of infrastructure development.

The milestone reflects the success of Saudia’s comprehensive transformation strategy aimed at strengthening its global standing and enhancing passenger experience. For the fourth consecutive year, the national carrier has also earned the title of the “World’s Most Improved Airline”, underscoring its sustained trajectory of growth and improvement.

Skytrax, a leading international airline and airport rating organization, bases its rankings on strict criteria, including both in-flight and ground service quality. Its annual awards are often referred to as the “Oscars of the aviation industry.”

Speaking to Asharq Al-Awsat, Eng. Abdullah Al-Shahrani, General Manager of Communication and official spokesperson for Saudia Group, confirmed that the airline is undergoing a sweeping upgrade of its fleet interiors.

A multi-year program to refurbish cabins in both Business and Economy classes is set to begin later this year and conclude by 2027.

In line with its push toward digital innovation, the airline has launched a pilot version of an AI-powered virtual assistant. This new platform is designed to streamline travel by integrating services such as bookings, hotel accommodations, ground transport, and entertainment.

Digital Transformation

Saudia’s transformation is not limited to passenger comfort. Al-Shahrani detailed a complete overhaul of the airline’s digital infrastructure, including instant booking for delayed or canceled flights, a digital wallet, and a reimagined booking, payment, and refund system. Most notably, refund processing times have been reduced from 40 days to under one minute.

Operationally, the airline continues to set high standards. In March 2025, Saudia recorded a 94.07% on-time arrival rate and 94% on-time departure rate, placing it among the top 10 most punctual carriers worldwide.

Strategic Growth Amid Global Challenges

Despite global and regional headwinds, including the need for large-scale infrastructure upgrades to host future mega-events such as Expo 2030 and the 2034 FIFA World Cup, Saudia is moving forward with bold expansion plans.

According to Al-Shahrani, the airline now operates flights to more than 145 international destinations, while positioning Jeddah as a major global air hub. This expansion is supported by the broader Saudia Group, which includes specialized subsidiaries in aircraft maintenance, training, and ground handling services.

As the Kingdom’s national carrier, Saudia plays a central role in advancing the goals of Saudi Vision 2030. The airline is actively contributing to the National Aviation Strategy, which aims to attract 330 million visitors annually, serve 30 million Hajj and Umrah pilgrims, and connect Saudi Arabia to over 250 global destinations. Additionally, the plan targets 4.5 million tons in annual air cargo capacity by 2030.

Looking ahead, Saudia is embarking on one of the largest fleet expansions in its history. By 2032, the airline expects to receive more than 118 new aircraft, including 49 Boeing 787 Dreamliners. Earlier this year, the carrier signed a landmark deal with Airbus to purchase 105 new A320neo aircraft, the largest such order in Saudi aviation history.

In April 2025, Saudia further bolstered its future capabilities with a new order for 20 wide-body Airbus A330neo aircraft, of which 10 will be operated by its low-cost subsidiary, Flyadeal.