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Saudi ACWA Power Signs $190 Mln Worth Solar Projects in Egypt

Saudi ACWA Power inked contracts worth 190 million dollars to generate solar power in Egypt.(ACWA Power's Twitter)
Saudi ACWA Power inked contracts worth 190 million dollars to generate solar power in Egypt.(ACWA Power's Twitter)
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Saudi ACWA Power Signs $190 Mln Worth Solar Projects in Egypt

Saudi ACWA Power inked contracts worth 190 million dollars to generate solar power in Egypt.(ACWA Power's Twitter)
Saudi ACWA Power inked contracts worth 190 million dollars to generate solar power in Egypt.(ACWA Power's Twitter)

Saudi ACWA Power inked on Tuesday contracts worth 190 million dollars to generate solar power in Egypt, announced the company.

ACWA Power has secured three solar photovoltaic (PV) power plant contracts in Egypt.

Located in Benban’s Aswan province, the PV power plants will boast an aggregate capacity of 165.5MWp, and will be developed at a total investment value of approximately $190 million (SAR712.5m).

"The Benban projects are significant for being ACWA Power’s first investment in the country and we are confident that we will have many more opportunities to partner with the Ministry of Electricity in its pursuit of energy security,” he said.

Hosted by the Government of Egypt, the power purchase agreement (PPA) was attended by Engineer Gamal Abd-Al Rehem, chairman of the Egyptian Electricity Transmission Company (EETC), and Mohammad Abunayyan, chairman of ACWA Power, as well as other dignitaries.

The deal, which was awarded under Round 2 of the Feed-in-Tariff (FiT) program, will see the Saudi Arabia-based company develop, finance, build, own and operate the plants.

ACWA’s projects are in keeping with the Government of Egypt and Ministry of Electricity and Renewable Energy’s (MoERE) target to achieve 20 percent of its energy generation from renewable sources by 2022. The FiT program aims to secure an initial generation of 2,000MW of solar capacity and 2,000MW of wind capacity.

ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation and desalinated water production plants currently with presence in 11 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions.

Following the signing of the agreement, ACWA Power said that it expects to begin construction in the final quarter of this year. These will be the first projects that the company has developed in Egypt, and it is working with Egyptian companies Tawakol and Hassan Allam Holding to deliver them.

Once they begin operations next year, the plants will be expected to provide enough power for 80,000 homes, saving around 156,000 tons of CO2 per year when compared with conventional sources.

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Business

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.