Saudi Arabia will need to invest $133.3 billion in electricity projects over the next ten years to cope with rising power demand, its Electricity and Water Minister Abdullah al-Hussayen said Sunday.
Hussayen said the country expects peak electricity to hit 90,000 megawatts (MW) in 2022. Installed capacity is currently around 70,000 MW. “The expansion plan in the sector … requires the execution of electricity projects for the next ten years whose costs will exceed 500 billion riyals and in which the private sector is expected to take part,” al-Hussayen said. He added that contracts to build an electricity grid to connect Saudi Arabia and Egypt will be signed before mid-2016. The project aims to allow power trading between the two countries and will operate at full capacity before mid-2019, according to al-Hussayen. [Reuters, 2/7/2016]
Egypt is drafting its 2016-2017 budget on the basis of an exchange rate of 8.25 Egyptian pounds to the dollar compared to 7.75 pounds this fiscal, two government sources said Monday, indicating that the Central Bank of Egypt (CBE) is preparing to devalue the pound. The assumed exchange rate in early drafts of the next budget suggests that the CBE could be planning to abandon the current rate of 7.7301 before the end of June. The CBE has defended the pound against growing pressure to devalue, but with foreign exchange reserves scarcely enough to finance more than three months worth of imports, economists say it cannot hold out forever. The bank has taken a series of steps in recent months to ease the dollar shortage, including raising a cap on foreign exchange deposits at banks for essential goods and introducing measures to dampen the demand for dollars by reducing imports. [Reuters, 2/8/2016]
The National Oil Corporation (NOC) in western Libya has warned traders against loading “illicit” cargoes of oil at Hariga port in the eastern part of the country, as the company’s eastern counterpart acknowledged the signing of ten contracts to export crude from the terminal. Around seven companies signed oil-purchase contracts with people who say they represent the government based in eastern Libya and “have no authority to sell Libyan oil,” the Tripoli-based NOC said in a statement. It identified Loyd Capital and Netoil as among buyers attempting to load crude at Hariga. “The only authority legally empowered to sell Libyan crude oil is the National Oil Corporation, with its seat in Tripoli,” the western NOC said. It added that it has advised shipowners to “verify whether charterers’ contracts are legitimate, or run the risk of having their ships impounded.” Meanwhile, the eastern NOC is seeking to hire a UK law firm to sue the NOC in Tripoli, Chairman of the Eastern NOC Nagi Elmagrabi said Friday. [Bloomberg, 2/7/2016]
Oman plans to borrow between $5 billion and $10 billion from abroad to help finance a budget deficit caused by low oil prices, Central Bank Executive President Hamood Sangour al-Zadjali said on Monday. He said the government may issue eurobonds by the middle of 2016, but did not comment further on the timing of the foreign borrowing. He also said the government plans to issue 600 million rials ($1.56 billion) of domestic bonds this year, or about 100 million rials every two months. [Reuters, 2/8/2016]
Jordanian Planning Minister Imad Fakhoury said his country has been promised easier trade terms by the international community, which could potentially generate large-scale investment and “hundreds of thousands of job opportunities. Fakhoury told reporters Sunday that creating jobs for Jordanians is a priority, but that the trade commitments could also put 200,000 Syrian refugees to work. Fakhoury says that in addition to trade perks, Jordan will also receive billions of dollars in grants and easy loans in coming years. [AP, 2/7/2016]
Also of interest
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Egypt’s al-Sisi Directs $127.7 million for housing units | AP, Ahram Online
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Saudi power projects will need $133 billion investment over 10 years
Saudi Arabia will need to invest $133.3 billion in electricity projects over the next ten years to cope with rising power demand, its Electricity and Water Minister Abdullah al-Hussayen said Sunday. Hussayen said the country expects peak electricity to hit 90,000 megawatts (MW) in 2022. Installed capacity is currently around 70,000 MW. “The expansion plan in the sector … requires the execution of electricity projects for the next ten years whose costs will exceed 500 billion riyals and in which the private sector is expected to take part,” al-Hussayen said. He added that contracts to build an electricity grid to connect Saudi Arabia and Egypt will be signed before mid-2016. The project aims to allow power trading between the two countries and will operate at full capacity before mid-2019, according to al-Hussayen. [Reuters, 2/7/2016]
Egypt to set 2016-17 budget at devalued exchange rate
Egypt is drafting its 2016-2017 budget on the basis of an exchange rate of 8.25 Egyptian pounds to the dollar compared to 7.75 pounds this fiscal, two government sources said Monday, indicating that the Central Bank of Egypt (CBE) is preparing to devalue the pound. The assumed exchange rate in early drafts of the next budget suggests that the CBE could be planning to abandon the current rate of 7.7301 before the end of June. The CBE has defended the pound against growing pressure to devalue, but with foreign exchange reserves scarcely enough to finance more than three months worth of imports, economists say it cannot hold out forever. The bank has taken a series of steps in recent months to ease the dollar shortage, including raising a cap on foreign exchange deposits at banks for essential goods and introducing measures to dampen the demand for dollars by reducing imports. [Reuters, 2/8/2016]
Libya’s western NOC warns of illicit sales from east
The National Oil Corporation (NOC) in western Libya has warned traders against loading “illicit” cargoes of oil at Hariga port in the eastern part of the country, as the company’s eastern counterpart acknowledged the signing of ten contracts to export crude from the terminal. Around seven companies signed oil-purchase contracts with people who say they represent the government based in eastern Libya and “have no authority to sell Libyan oil,” the Tripoli-based NOC said in a statement. It identified Loyd Capital and Netoil as among buyers attempting to load crude at Hariga. “The only authority legally empowered to sell Libyan crude oil is the National Oil Corporation, with its seat in Tripoli,” the western NOC said. It added that it has advised shipowners to “verify whether charterers’ contracts are legitimate, or run the risk of having their ships impounded.” Meanwhile, the eastern NOC is seeking to hire a UK law firm to sue the NOC in Tripoli, Chairman of the Eastern NOC Nagi Elmagrabi said Friday. [Bloomberg, 2/7/2016]
Oman to borrow $5-10 billion from abroad
Oman plans to borrow between $5 billion and $10 billion from abroad to help finance a budget deficit caused by low oil prices, Central Bank Executive President Hamood Sangour al-Zadjali said on Monday. He said the government may issue eurobonds by the middle of 2016, but did not comment further on the timing of the foreign borrowing. He also said the government plans to issue 600 million rials ($1.56 billion) of domestic bonds this year, or about 100 million rials every two months. [Reuters, 2/8/2016]
Jordan says promised trade perks will help employ Syrian refugees
Jordanian Planning Minister Imad Fakhoury said his country has been promised easier trade terms by the international community, which could potentially generate large-scale investment and “hundreds of thousands of job opportunities. Fakhoury told reporters Sunday that creating jobs for Jordanians is a priority, but that the trade commitments could also put 200,000 Syrian refugees to work. Fakhoury says that in addition to trade perks, Jordan will also receive billions of dollars in grants and easy loans in coming years. [AP, 2/7/2016]
Also of interest
Saudi, Venezuela meeting ends without oil production agreement | Reuters, WSJ
UAE plans floating LNG import terminal later this year | Reuters
Central Bank says Qatar will act to maintain liquidity if needed | Reuters
Qatar acquires stake in Chevron oil project off Morocco | AP
Egypt’s al-Sisi Directs $127.7 Million for Housing Units | AP, Ahram Online
Egypt to approve wheat shipments at country of origin | Ahram Online
UK Trade envoy arrives in Egypt to bolster economic ties | Ahram Online
National bank of Egypt finances 45,000 SMEs with EGP 19 billion | DNE
Central Bank of Libya to resume foreign currency supply to local banks | Libya Herald
Oil’s drop puts pressure on Algeria’s government | Bloomberg