King Salman Energy Park signs incubator as anchor tenant

An astist’s impression of the King Salman Energy Park. (SPA)
Updated 12 July 2019

King Salman Energy Park signs incubator as anchor tenant

  • Plan to accelerate growth and small and medium-sized enterprises in the energy sector

LONDON: King Salman Energy Park (SPARK) has signed Dubai-based Oilfields Supply Center (OSC) as it anchor tenant.
Working in collaboration with Saudi Aramco, OSC will develop a business incubator called the Common User Supply Base (CUSB) to support the oil and gas industry in the Kingdom, the Dubai firm said in a statement it issued on Thursday.
The new venture aims to accelerate the growth of small and medium-sized enterprises in the energy sector. OSC plans to invest around $450 million over the next two years, contributing to SPARK’s objective of localizing more than 300 new industrial and service facilities.
The venture will also provide industrial buildings of various sizes to host companies and supply them with integrated services such as logistics, technical engineering services and business support.
Reckoned to be the first of its kind in the Kingdom and the largest in the region, the center will have a footprint of more than 1 million square meters and a potential expansion of an additional 500,000 square meters.

FASTFACT

SPARK occupies more than 50 square kilometers and will house approximately 300 industrial and service facilities.

“It will contribute to supply chain localization, boost job creation and support the overall advancement of the Kingdom’s energy sector,” said Saudi Aramco CEO Amin Nasser.
Both Aramco and SPARK, through different corporate initiatives, are driving the localization of jobs and supply chains within the energy sector.
Located in the Eastern Province of Saudi Arabia, between Dammam and Al-Hasa, SPARK occupies more than 50 square kilometers and will house approximately 300 industrial and service facilities.
About two thirds of the development consists of industrial land and a major logistics center, with the remainder made up of mixed-use residential, offices, training centers, hotels and other supporting facilities.


OPEC+ faces challenge from rivals’ rising output, says IEA

Updated 15 November 2019

OPEC+ faces challenge from rivals’ rising output, says IEA

  • Sluggish refinery activity in the first three quarters has caused crude oil demand to fall for first time in a decade

LONDON: OPEC and its allies face stiffening competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil producer group’s policy meeting next month.

“The OPEC+ countries face a major challenge in 2020 as demand for their crude is expected to fall sharply,” the Paris-based agency said in a monthly report.

The IEA estimated non-OPEC supply growth would surge to
2.3 million barrels per day (bpd) next year compared with 1.8 million bpd in 2019, citing production from the US, Brazil, Norway and Guyana.

“The hefty supply cushion that is likely to build up during the first half of next year will offer cold comfort to OPEC+ ministers gathering in Vienna at the start of next month,” it added.

While US supply rose by 145,000 bpd in October, the IEA said, a slowdown in activity that started earlier this year looks set to continue as companies prioritize capital discipline.

Demand for crude oil from OPEC in 2020 will be 28.9 million bpd, the IEA forecast, 1 million bpd below the exporter club’s current production.

The recovery by Saudi Arabia from attacks on the country’s oil infrastructure contributed 1.4 million bpd to the global oil supply increase in October of 1.5 million bpd.

Saudi state oil company Aramco, the world’s most profitable firm, starts a share sale on Nov. 17 in an initial public offering that may raise between $20 billion and
$40 billion.

It was the IEA’s last monthly report before the Dec. 5-6 talks among OPEC states and partners led by Russia on whether to maintain supply curbs aimed at buoying prices and balancing the market.

The agency kept its assessments for growth in global oil demand in 2019 and 2020 at 1 million bpd and 1.2 million bpd respectively, but said its outlook might slightly underestimate the impact of tariffs from the US-China trade war.

The IEA said that if some or all tariffs were lifted in coming months, “world economic growth and oil demand growth would both rise significantly,” though the rebound may not be immediate.

Sluggish refinery activity in the first three quarters has caused crude oil demand to fall in 2019 for the first time since 2009, the IEA said, but refining is set to rebound sharply in the fourth quarter and in 2020.