Page 12 - Downstream Monitor - MEA Week 37

DMEA
neWs in brief
DMEA
PoliCy
ITFC signs $600m
agreement for trade
financing in Djibouti
The international islamic Trade Finance Corporation (iTFC), a member of the islamic Development Bank (isDB) Group has signed a major trade finance framework agreement with the Republic of Djibouti. The signing took place between iTFC CEo, Eng. Hani Salem Sonbol and the Minister of Finance H.E. ilyas Moussa Dawaleh, during the official visit of the iTFC delegation to the country. The signing was preceded by a high-level meeting between the CEo and the President of the Republic of Djibouti Mr ismaïl omar Guelleh.
Eng. Hani Salem Sonbol commented
that, “The framework agreement mobilises financial resources of up to $600 million over three years for the government of Djibouti’s strategic sectors. These include the import
of critical energy commodities such as petroleum products; and the development
of the private sector through strategic partnerships with local financial institutions to support SMEs.
“The framework agreement would also focus on the establishment of capacity building programmes that will draw upon the proven expertise of other oiC member countries in refined petroleum products aimed at improving trade flows in and out of the country,” added Sonbol.
The capacity building programme is envisaged to support Djibouti’s ambition to become an energy trading hub in East Africa by increasing domestic petroleum storage and refining capabilities.
Commenting, The President of the Republic of Djibouti Mr ismaïl omar
Guelleh said, “There is a need for increased awareness on the importance and advantages of islamic finance within the banking sector in Djibouti, particularly as a viable means to fund important sectors in the country such as energy, tourism and maritime. investing
in our workforce through capacity building and knowledge transfer will give rise to greater stability and progress whilst tackling poverty and youth unemployment. Moreover, increased regional cooperation is required
as the country’s infrastructure investment needs rise. By drawing on iTFC’s expertise and experience in driving socio-economic transformation in the region, we can create greater prosperity and a brighter future for the people of Djibouti.”
Since 2008, iTFC has provided total financing of $650 million to the Republic
of Djibouti to support the country’s energy sector. During this period, iTFC has become a strong partner with the Government of Djibouti in supporting the country’s national development goals.
itfC
fUels
Shell loads first LSFO cargo
from Singapore refinery
This is the first time Shell has made LSFo from its own upstream crude, the company said in a statement.
The cargo will be blended to a finished product, which Shell will supply to bunker customers, enabling its customers to be prepared for the implementation of the iMo 2020 mandate, Shell said.
Shell said it has developed fuel product offers including very low-sulphur fuel oil (VLSFo) supply in selected bunkering ports, high-sulphur fuel oil (HSFo) supply for ships with on-board scrubbers and liquefied natural gas (LNG).
Shippers will need to switch to lower sulphur fuels such as LSFo or marine gasoil (MGo) or install scrubbers to clean the emissions of higher sulphur fuels.
VLSFo has emerged as an economically attractive option, despite expectations of higher demand for marine gasoil.
Refineries around Asia such as Japan’s Cosmo oil, Taiwan’s Formosa Petrochemical and South Korean refineries have started producing and selling VLSFo grades. reUters
PetroChemiCals
Maximised involvement of
domestic firms in petchem
projects
The National Petrochemical Company (NPC) is seeking to ensure the maximized involvement of domestic manufacturers and contractors in petrochemical projects, the NPC CEo said.
Speaking to reporters on Monday, Behzad Mohammadi said the petrochemical industry currently received about 33 million tons of feedstock which was equivalent to 650,000
ahead of IMO
Royal Dutch Shell has loaded the first cargo of low-sulphur fuel oil (LSFo) from its Pulau Bukom refining site in Singapore, it said on Thursday.
Demand for stable low-sulphur marine fuel supplies is rising as the shipping sector prepares for the international Maritime organization’s (iMo) lowering of the cap on sulphur in marine fuels to 0.5% from 3.5% beginning in January 2020.
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Week 37 19•September•2019