Page 7 - MEOG Week 40 2022

MEOG PRICES & PERFORMANCE MEOG

ENOC sees UAE’s retail fuel demand rising

UAE THE UAE is seeing retail fuel consumption grow He indicated that the increase was partly
on the back of improvements in the economy, due to ENOC’s recent completion of a 16.2-km
but without returning to the level that prevailed pipeline that pumps jet fuel from its Horizon
before the coronavirus (COVID-19) pandemic, Emirates Jebel Ali Petroleum (HEJP) storage
according to Saif Humaid Al Falasi, the group terminal in Jebel Ali to the Dubai World Central
CEO of Emirates National Oil Co. (ENOC). Airport, also known as the Al Maktoum Inter-
Speaking to Khaleej Times on the sidelines national airport. This link, which is capable of
of the Wetex 2022 and Dubai Solar Show at the delivering 2,000 cubic metres per hour of jet fuel,
World Trade Centre last week, Al Falasi noted is expected to cover demand in the Dubai area
that Emirati fuel markets had not yet fully recov- until the middle of the century.
ered from the blows sustained in 2020. “The fuel The new pipeline will allow the airport to cut
consumption has not reached the pre-pandemic carbon dioxide emissions by reducing its use of
level and it is still down by around 15% … Retail tanker trucks for jet fuel deliveries. It has also
fuel is also coming up slowly but is still 10-15% been outfitted with safety features that help max-
below the pre-pandemic level,” he said. imise efficiency, such as leak detection systems,
He was speaking after the UAE’s central bank automation controls and quality controls.
released data showing that the country’s econ- Al Falasi stressed the forward-looking nature
omy had expanded by 8.2% in the first quarter of of the project, saying that ENOC had drawn up
2022. Dubai alone reported economic growth of plans for the pipeline in the hope of formulating
5.9% in the January-March period, according to a solution that could last for 25-30 years. “The
central bank data. completion of the construction of the pipeline is
The ENOC head also reported that consump- set to meet the demand for jet fuel at Dubai Air-
tion levels were on the rise in some parts of the port up until 2050, which is aligned with Dubai’s
fuel market. This has been particularly notable vision to build a sustainable future for the Emir-
with respect to jet fuel, he told Khaleej Times. ates,” he commented.™

FINANCE & INVESTMENT

NewMed and Capricorn announce merger

ISRAEL NEWMED Energy announced this week that it pipeline allowing for direct gas exports from the
would merge with UK-based Capricorn Energy assets to Egypt. Leviathan holds about 18.9 tcf
in a shares-plus-cash deal that combines a wealth (535 bcm) and NewMed CEO Yossi Abu, who
of gas-rich assets around the Mediterranean. retains his position as the head of the merged
The agreement will see shareholders in Capri- entity, said earlier in the year that the field could
corn – formerly Cairn Energy – receive a special yield 21 bcm per year following the development
dividend of $620mn and the new entity will be of its second phase.
listed under NewMed – formerly Delek Drilling Capricorn’s production focuses on Egypt and
– whose shareholders will hold an 89.7% stake Abu said that NewMed would look to raise out-
in the new “MENA gas and energy champion”. put from the current 115,000 barrels of oil equiv-
Delek rebranded as NewMed and listed in alent per day to beyond 200,000 boepd by 2030.
London in February while announcing plans “We are creating a company that for the first
to enter the Moroccan upstream as it continues time allows international investors to get direct
to leverage its strong position in the Eastern exposure to the East Med gas play and Leviathan
Mediterranean. in particular,” he said.
NewMed’s assets comprise equal 45.33% He added that options including floating
stakes in Israel’s giant Leviathan gas field and LNG (FLNG) and a pipeline to Egypt are being
the East Med Gas (EMG) pipeline stakes, as well considered for the development of the field.
as 30% in Cyprus’ 3.5 trillion cubic foot (10bn In September 2021, Delek finalised the sale of
cubic metre) Aphrodite gas field and the onshore its 22% stake in the Tamar gas field to Abu Dha-
Israeli New Ofek and New Yahel licences. bi’s Mubadala Petroleum for around $1bn.
It will also receive royalties from the Karish This saw it meet a mid-December deadline
and Tanin fields, which were sold to fellow Lon- for divesting the stake in order to comply with
don-listed Energean in 2016. a controversial anti-trust settlement reached
The Leviathan partners agreed in January to in 2015, allowing it to retain the Leviathan
spend around $235mn to construct the EMG shareholding.™

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