Page 15 - DMEA Week 44 2021

DMEA NEWS IN BRIEF DMEA

up 82% y/y, with net load of the volume
of goods transported through the shortest
route between Europe and Asia increasing by
87% y/y to 9.3mn tonnes in October 2021.
Vessel traffic statistics compiled by the canal
authority indicate that 1,847 ships made their
way through the canal, up by 14% y/y, in
October.
Suez Canal is a key reliable foreign
exchange earner for the Egyptian economy,
generating $5.91bn in revenues in
FY2020/2021 ending in last June, down from
75%. Subsequently, though, Sound Energy and includes pump stations, storage tanks, $5.8bn in FY2019/2020.
struck a deal with Afriquia Gaz that provided and offshore terminals, the oil ministry said BNE
for the latter company to buy a stake in the in 2019. The first will have a 2.25 million
former and to buy gas from the former over a b/d capacity, running 700 km from the Iran-Israel shadow war at
period of 10 years. Rumaila field to Haditha in Iraq’s western
Sound Energy has said it hopes these deals Anbar province. The line will be built on sea driving up premiums
will complement its plans for the development an engineering, purchase, construction and
of TE-5 Horst, a field within the Tendrara finance (EPCF) basis, with the contractor The Iran–Israel shadow war at sea is having
concession that contains about 650bn cubic providing the funding and repayment after the a severe impact on the global shipping
feet of gas in place (GIP). TE-5 Horst is line comes online. industry, as vessels transiting through the
expected to provide the feedstock for the The second stage will have a 1 million b/d Red Sea, the Arabian Gulf, and the Strait
micro-LNG plant that the firm wants to build capacity, running 900 km from Haditha to of Hormuz are under heightened risks and
in eastern Morocco. Aqaba. It is to be built by the contractor on the risk exposure is increasing premiums
NEWSBASE a build, operate, own and transfer (BOOT) against vessels, Ship Technology reported on
basis. The project is equally important to November 2.
Jordan, which has little oil and gas of its own The trade journal quoted Protection
PIPELINES and has long sought to diversify its supply International strategic director Harry Hayes,
sources. who said: “If an owner has vessels that
Iraq, Jordan in talks for the pipeline will not be straightforward to owners will undoubtedly try and push over
Even though Jordan is a willing participant, are charted to one of the trade routes, the
reduced cost pipeline build. Rumaila is located in Iraq’s south which the increased war risk premiums onto the
charterers, which impacts their decision
means the pipeline will need to traverse
Iraq and Jordan are in advanced talks to build several Iraqi provinces to reach Jordan. making on whether or not the Persian Gulf is
an oil pipeline linking the oil-rich, southern Although Iraq has largely quashed Islamic a worthwhile and commercially viable place
city of Basra to the Red Sea port city of State group fighters, security is still a concern for them to continue their trade.”
Aqaba, the oil ministry said Nov. 3, as OPEC’s for investors. However, despite the rise in risk profile,
second-biggest producer seeks to find an Under the original plans, some 150,000 attacks on ships in the Middle East are not
alternative route to export its crude. b/d of Iraqi oil would supply Jordan’s Zarqa expected to impact daily operations. “Such
Technical and commercial talks are refinery with the rest of the 1 million b/d incidents remain irregular and are highly
currently underway for the project, which can capacity exported via the Aqaba port. unlikely to impact normal commercial
only be built at a reduced cost of less than $9 S&P GLOBAL PLATTS operations throughout the region,” according
billion, the ministry said in a statement. to the Dryad Global report.
Iraq has been in talks with Jordan for Iranian attacks against Israeli vessels –
building the pipelines for at least a decade. TERMINALS & SHIPPING and Israeli attacks on Iranian vessels—have
Baghdad currently exports most of its occurred for several years, but this year the
crude from its southern oil terminals located Suez Canal registers ship strike rate appears to have been stepped up by
in the Persian Gulf, where energy flows both sides.
through the key chokepoint of Strait of transit record Separately, on November 2, the Iranian
Hormuz have been disrupted over the years. navy said it thwarted a pirate attack against an
The multibillion-dollar project, which The Suez Canal registered a record month in Iranian oil tanker in the Gulf of Aden.
foundered in 2014 due to security concerns terms of total transiting ship tonnage, hitting “Before crossing the Bab al-Mandeb
and financing difficulties, is strategically 112.1mn tonnes, up 11.4% year on year, in straight, the tanker was approached by
important to Baghdad. A spate of attacks on October, according to statements made by four boats carrying armed men who were
oil tankers in the Strait of Hormuz provided Osama Rabei, chairman of the Suez Canal prevented in their attack after the Iranian
over the past few years fresh impetus for Authority. escort fired warning shots,” Iranian state TV
the project. In 2019, Iraq completed the Total toll revenues increased by 12.4% reported. Iran’s navy has extended its reach in
prequalification process for companies y/y to $551mn driven by the high volume of recent years. It has sent vessels to the Indian
interested in building the pipeline from the liquefied natural gas (LNG) tanker traffic. Ocean and the Gulf of Aden to protect Iranian
Rumaila field near Basra to Aqaba in Jordan. 84 LNG tankers passed through the canal in ships from Somali pirates.
The pipeline will be built in two stages October 2021 against 46 in October 2020, BNE

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