Page 15 - MEOG Week 09 2021

MEOG NEWS IN BRIEF MEOG

information and insights company IHS Markit Despite the unprecedented shock to GAS
in Houston, Texas, Nasser said there has oil markets, he said demand destruction
already been “quite an improvement” in oil only amounted to about 9 percent: “This Qatar to fund pipeline from
demand compared to the drastic reductions demonstrates how important our industry is
during the pandemic lockdowns last year, to the world economy.” Israel to Gaza
especially in China and East Asia. ARAB NEWS
“Indian demand is almost the same as Qatar on Thursday pledged $60 million to
pre-COVID,” he told oil market expert Daniel build a natural gas pipeline from Israel into
Yergin. OIL the Gaza Strip that will end the energy crisis
“There has been an impact that we see that has helped cripple the Gaza economy.
in the West and the US. But with the rapid Turkey’s crude imports fall The Qatari statement, published on its
deployment of vaccines, we are seeing good Foreign Ministry website, came two days
cause for optimism and recovery in demand.” Turkey purchased 2.6mn tonnes of crude oil after Reuters reported that closed-door
Current oil demand is at 94 million barrels, from world markets in December, marking a negotiations on the pipeline had reached a
compared with pre-pandemic levels of 100 20.7% y/y decline. breakthrough.
million, and Nasser expected this to rise to 99 Iraq was the largest supplier at 490,000 Qatar coming on board publicly gives
million barrels by the end of the year. tonnes. It was followed by Nigeria at 413,000 another boost to the project, which has a 2023
“I see demand and the market improving tonnes, according to data from energy market target date for completion.
from here, especially in the second half of this regulator EPDK. Turkey also bought 318,000 The plan is for natural gas from the
year,” he said. tonnes of crude from Libya in the last month deepwater Leviathan field operated by
But Nasser said he expected “harsh of 2020 while its purchases from Kazakhstan Chevron in the eastern Mediterranean to flow
realities” as a result of the economic damage amounted to 276,000 tonnes. Russia delivered through an existing pipeline into Israel, and
from the pandemic, which he described as 134,000 tonnes. from there into Gaza through a proposed new
the “biggest crisis in a century” for the oil Local gasoline consumption declined 19% extension.
industry. y/y to 191,000 tonnes in December, while The European Union has said it would
“There has been a huge impact on small- diesel fuel sales moved down 3% y/y to 2.1mn fund the Gaza-side of the pipeline.
and medium-sized businesses, and more on tonnes. Qatar said it “pledged to provide an
employment,” Nasser said. “Rapid technology Petrol Ofisi was the largest player on the amount of $60 million to finance the
advances were already having an impact on Turkish fuel oil market, capturing a 23% share project to supply the Gaza Strip with the
jobs, especially low-skill repetitive-type jobs, of total sales. Opet claimed second spot with gas necessary to solve the electricity crisis,”
reducing jobs and creating inequality in the 17%, followed by Shell & Turcas with 13.5%. and that “this amount will be allocated for
market in different parts of the world. BNE extending gas pipelines from the Israeli side.”
“Today we are seeing a recovery taking Palestinian Prime Minister Mohammad
place and usually this is linked to job creation Iraq’s oil exports rise to Shtayyeh welcomed the pledge and said the
and higher employment. My big worry over pipeline will “resolve the problem of electricity
the long term is a jobless recovery where 2.96mn bpd in February in Gaza completely.”
certain jobs are not going to return.” With pipeline funding secured, what
Nasser said Aramco, the world’s biggest Iraqi oil exports rose to 2.96 million barrels remains is a gas purchase agreement with the
oil company, used risk-management systems per day (bpd) in February from 2.868 million Leviathan field partners.
to help it respond quickly to the pandemic, bpd the previous month, the Oil Ministry said For years the project was a distant prospect
which also significantly accelerated its use of on Monday. because of the Israeli-Palestinian conflict
digital and remote operating processes. Exports from Iraq’s southern Basra as well as internal Palestinian rivalries, but
During the same CERAWeek forum, the terminals reached 2.825 million bpd in officials said that Israeli, Palestinian, Qatari
CEO of US energy firm Chevron Corp., Mike February, up from 2.77 million bpd the month and European interests have converged in
Wirth, said the key lesson learned from the before, the ministry added. recent weeks making plans more concrete.
crisis was the “essential nature” of the oil REUTERS Israel and Egypt maintain a tight blockade
business. on Gaza, citing security concerns about the

Week 09 03•March•2021 www. NEWSBASE .com P15