Page 14 - DMEA Week 12 2020

DMEA TRANSPORT DMEA
Abu Dhabi to build new liquid storage terminal
UAE
ABU Dhabi Ports (ADP) has signed a strategic deal with Saudi Arabia-based Arabian Chemi- cals Terminals (ACT) on developing the emir- ate’s first greenfield commercial bulk liquid storage terminal.
The terminal will be built at Khalifa, ADP said in a statement on March 24, enabling the deep- water port to handle more liquid bulk products and gases. The project will benefit existing cus- tomers and new customers seeking liquid bulk storage in the region, ADP said.
According to the operator, the terminal will be erected on a 50,000-square metre land plot adjacent to a 16-metre deepwater quay, and could be expanded to take up an additional 150,000 square metres of space.
The project will be implemented in two phases, the first due to wrap up in the second half of 2022 and involving the construction of 44 storage tanks. ADP did not specify a timeframe for the second stage.
ADP said the facility would be able to handle
a number of different liquid products, enhancing the offering to the port’s customers and helping them reduce the cost of outsourcing their liquid and gas costs.
“Providing technology-rich, end-to-end logistics solutions for customers of all sizes and industries is at the core of Abu Dhabi Ports’ diversification strategy,” ADP CEO Mohamed Juma Al Shamisi commented. “Working closely with ACT, we are pleased to offer a comprehen- sive suite of integrated logistics solutions now that are powered by the most advanced technol- ogies available in the market.”
ACT’s managing director, Rakan Alireza, added that customers would benefit from the ter- minal’s strategic location between industries in Abu Dhabi, Ruwais and Dubai, with access to the sea and the UAE’s extensive road and planned Gulf Railway network.
ACT is looking at other options for expand- ing its service offering at the Khalifa Port, includ-
ing the provision of fuel
bunkering. ™
and Petrochemical Company, recorded a cumulative loss of NGN149.23bn last year, according to local press.
Nigeria, Africa’s top oil producer, relies largely on importation for refined petroleum products as its refineries have remained in
a state of disrepair for many years despite several reported repairs.
The refineries, which are located in
Port Harcourt, Kaduna and Warri, have a combined installed capacity of 445,000 barrels per day but have continued to operate far below the installed capacity.
Figures obtained from the NNPC in
Abuja on March 25 showed that the refineries recorded cumulative revenue of NGN68.96bn but jointly incurred a total expense of NGN218.18bn during the year under review.
It had projected total revenue of NGN309.14bn and an expense of NGN377.35bn for the facilities in 2019, but the projection did not materialise.
The corporation had projected a loss
of NGN68.21bn for the three refineries in 2019, but the facilities posted an actual loss of NGN149.23bn, which was NGN81.02bn higher than the oil firm’s projection.
On an individual basis, the three refineries recorded losses during the review period,
as the KRPC posted the highest loss of NGN58.96bn. The PHRC and the WRPC lost NGN44.77bn and NGN45.49bn respectively during the 12-month period.
Kuwait’s KPC to cut spending
Kuwait’s KPC has announced it will cut spending following an “unprecedented” slide in oil prices.
The company has ordered all its subsidiaries to cut capital and operating spending this year in response to the decline in oil prices as a result of OPEC+ ending its supply pact and the spread of the coronavirus which has hit demand, according to an internal memo seen by Reuters.
The memo, which was sent by KPC’s chief executive Hashem Hashem and dated March 18, said that all sectors in KPC
and other subsidiaries must “rationalise spending and review their priorities in a way that does not impact the safety and continuity of operations”.
“This includes the plans and programs to increase profitability through boosting revenue, reducing operating costs... and reviewing required capital spending through canceling or postponing or cutting cost for programs and projects,” Hashem said in the memo.
The UAE’s Abu Dhabi National Oil Company (ADNOC) has also told contractors and suppliers that it will be reviewing existing contracts to try and cut costs, Reuters reported.
Saudi Arabia’s national oil company
NEWS IN BRIEF
Saudi Aramco, the world’s top oil producing firm, said this month it planned to cut capital spending for 2020 to between $25bn and $30bn, versus $32.8bn in 2019.
Algeria scales back budget after price collapse
Algerian president Abdelmadjid Tebboune on March 22 ordered state-owned Sonatrach to halve its capital spending plan to $7bn, according to local press.
The president also told the government to reduce public expenditure by 30% and delay state projects. The country relies on oil and gas revenues to cover 60% of its budget and 94% of its total sales abroad, but prices have fallen dramatically over the past month as a result
of the collapse of the OPEC+ supply pact and the spread of the coronavirus (COVID-19) pandemic and efforts to contain it.
Nigerian refineries continue to book losses
Nigeria’s refineries, operated by Nigerian National Petroleum Corp. (NNPC) incurred a total expense of NGN218.18bn in 2019.
The refineries, namely Kaduna Refining and Petrochemical Company, Port Harcourt Refining Company and Warri Refining
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Week 12 26•March•2020