Page 16 - DMEA Week 18 2021

DMEA NEWS IN BRIEF DMEA

cycle (IGCC) power plant contract in 2014. TAQA in talks to buy power REFINING
That year, the company also awarded Saipem
a $1bn contract to provide gas turbines, plants in Abu Dhabi Astron targets 2022 for
generators and heat steam generators for the
gasification plant. Abu Dhabi National Energy Company Cape Town refinery
Air Products has a 46 per cent holding (TAQA) is in talks to buy power plants in the
in the $12bn gasification project, with Acwa United Arab Emirates and could issue debut South African refiner Astron Energy is
Power holding a 25 per cent stake. Saudi green bonds in 2022 as it seeks to expand targeting a 2022 restart for its Cape Town
Aramco Power Company has a 20 per cent renewables generation, the finance chief said. refinery after a fire shut the plant down last
holding, with the remaining 9 per cent held by Abu Dhabi-listed TAQA is looking at ways year.
Gas Industry Company. to expand after a state-driven transaction last The Cape Town refinery has been offline
ENERGY UTILITIES year boosted its balance sheet and increased since a fire broke out at the facility in July of
total assets to more than $50 billion. last year.
TAQA raises $1.5bn in bond told Reuters the company was in early talks the plant was unlikely to be restarted for
Chief Financial Officer Steve Ridlington
Countering recent speculation that
issuance to buy power plants in Abu Dhabi, the largest economic reasons, an Astron Energy
representative told Ship & Bunker on Monday
and wealthiest of seven emirates making up
Abu Dhabi National Energy Company the UAE. that the firm will seek to bring it online again
(TAQA) has successfully tapped international State oil firm ADNOC and Emirates next year.
capital markets, raising $1.5bn in dual Global Aluminium (EGA) both had power “Astron Energy is in the process of
tranche senior unsecured notes to be spend plants, he said, adding: “We’ll be looking implementing various initiatives to rebuild
on covering general corporate purposes, at those and we’re talking about whether and the damaged equipment and to prevent a
including the repayment of outstanding how we can bring those into the system.” recurrence of the incident once the refinery
debt. Strong investor demand resulted in TAQA, which has assets overseas, was is safely and sustainably restarted, which is
the orderbook being more than four times also looking at possible acquisitions abroad, expected to occur at some point in 2022,â€
oversubscribed, with strong demand from Ridlington said, adding it was particularly the representative said.
Asia setting the stage for demand from interested in M&A targets in renewables. SHIP & BUNKER
MENA, Europe and US investors. Abu Dhabi Power Corporation, controlled
TAQA sold $750mn worth of 7-year bonds by state-run ADQ, now owns 98.6% of TAQA
carrying a 2% interest rate, while the 30-year after transferring most of its power and water PETROCHEMICALS
long-dated bond worth $750mn carried a generation and distribution assets to the firm
3.4% coupon. It was TAQA’s first Formosa in exchange for new shares. Petronas eyes 4Q
bond issuance dual-listed in Taipei and Ridlington said further public offerings
London to tap into Taiwanese demand. The of shares in TAQA were on the cards but the Pengerang refinery restart
notes were rated Aa3 by Moody’s and AA- issue was in the hands of ADQ.
by Fitch. “It is something that everybody recognises Malaysia’s state-owned Petronas appears likely
The issuance was arranged and offered has to happen, because a 1.4% float is not to restart its 300,000 b/d Pengerang refinery
through a syndicate of joint lead managers really sustainable,” he said, although he said he joint venture with state-controlled Saudi
and bookrunners, comprised of Bank of was not aware of specific moves or timing. Aramco in the fourth quarter.
China, Citi, First Abu Dhabi Bank, HSBC, TAQA issued $1.5 billion in bonds last The refinery in southern Malaysia has been
Mashreq Bank, Mizuho Securities and month to refinance part of its debt more shut since a fire in March 2020. The company
MUFG. cheaply. Ridlington said the firm expected to initially planned to restart the refinery in
BNE see its leverage reduce over time as project the first quarter of 2021 but this was later
debt amortised. delayed to the second half of this year after the
REUTERS Malaysian government imposed restrictions

P16 www. NEWSBASE .com Week 18 06•May•2021