Zohr gas field fires up the Egyptian economy

The new gas boost from Zohr could make Egypt a net exporter to countries in the Gulf and beyond. (Reuters)
Updated 17 January 2018
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Zohr gas field fires up the Egyptian economy

LONDON: Egypt’s economy has received a major boost since gas from Zohr, the Mediterranean’s largest offshore field, began to be pumped ashore in Port Said city at the end of last year.
Zohr is one of the most positive energy stories to hit the Middle East recently and a boon to Egypt in particular as the development by Italian operator ENI means the country is close to reaching gas self-sufficiency.
Zohr should wipe out the need for Egypt to buy in expensive foreign gas, thereby bolstering its depleted foreign exchange reserves, and could one day make the country a net exporter to countries throughout the region and, perhaps, beyond.
Mohamed Abu Basha, Cairo-based economist at investment bank EFG-Hermes, told Bloomberg: “One of the biggest issues Egypt had over the past years was the big shift in its energy balance from a net exporter to a net importer because of an increase in consumption versus a decline in production.
“With the new gas finds, it’s returning to this balance, if not exporting, then at least there’s no deficit,” he added.
Egyptian Oil Minister Tarek El-Molla has said initial production will be 350 million cubic feet per day, rising to 1 billion cubic feet in June and 2.7 billion by the end of 2019.
Egypt had to give up gas exports in 2014 to meet local demand and because sporadic sabotage on its main pipeline in the Sinai Desert disrupted shipments.
Zohr, with an estimated reserve of about 850 billion cubic meters of natural gas in place, is expected to close the gap between supply and demand, helping to end Egypt’s reliance on imported liquefied natural gas (LNG) next year, Bloomberg reported.
The offshore field is expected to save Egypt some $1 billion annually in gas imports.
Egypt has two LNG plants, which are more or less mothballed, from which to export once production is ramped up.
In a recent statement, BP said: “The development of Zohr in a record time has brought a new critical source of energy to the Egyptian market.”
BP added that two other current major projects in Egypt — Atoll and the second phase of the West Nile Delta project — will bring further new gas resources into production. “Together these projects will play an important role in supporting and reshaping Egypt’s energy sector.”
Russia’s state-owned producer Rosneft PJSC closed a deal in October to acquire 30 percent of the Zohr field. BP has also bought a 10 percent stake.
An International Monetary Fund report on Dec. 20 said Egypt’s reform program was yielding encouraging results.
The IMF said: “The economy is showing welcome signs of stabilization, with GDP growth recovering, inflation moderating, fiscal consolidation remaining on track, and international reserves reaching their highest level since 2011.”
The banking system was said to remain resilient to moderate shocks, but although the outlook was viewed as favorable, the IMF said sustained efforts were still required to “maintain prudent policies and advance structural reforms to support the authorities’ medium-term objective of inclusive growth and job creation.”


Coach Ivanizevic slams Tsitsipas after early Wimbledon exit

Updated 4 min 16 sec ago
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Coach Ivanizevic slams Tsitsipas after early Wimbledon exit

  • Stefanos Tsitsipas was forced to retire from his Wimbledon first-round match while trailing to French qualifier Valentin Royer
  • ‘He wants to but he doesn’t do anything. All ‘I want, I want’, but I don’t see that progress… I was shocked’

Goran Ivanizevic gave a scathing assessment of Stefanos Tsitsipas, saying he has “never seen a more unprepared player” in his life following the Greek world number 26’s opening round exit at Wimbledon.

Tsitsipas, the 2021 French Open and 2023 Australian Open runner-up, was forced to retire from his Wimbledon first-round match while trailing 6-3 6-2 to French qualifier Valentin Royer on Monday due to a back injury.

The 26-year-old, who said he had no answers to his ongoing fitness problems after his elimination, appointed Croatian Ivanizevic as his coach in May after a string of disappointing results at the Grand Slams.

Tsitsipas, a former world number three, has reached only one quarter-final in his last nine Grand Slam tournaments.

“It’s simple and it’s not simple. I’ve talked to him a lot of times. If he solves some things outside of tennis, then he has a chance and he’ll return to where he belongs, because he’s too good a player to be out of the top 10,” Ivanizevic told Serbian network Sport Klub after Tsitsipas’ exit.

“He wants to but he doesn’t do anything. All ‘I want, I want’, but I don’t see that progress... I was shocked, I have never seen a more unprepared player in my life. With this knee, I am three times more fit than him. This is really bad.”

Ivanizevic, who won Wimbledon as a player in 2001, helped Novak Djokovic claim nine of his 24 Grand Slam titles before leaving his team in March last year. He then had a short stint with Kazakh world number 11 Elena Rybakina this season.


Met Office issues GLOF alert for northern Pakistan amid rising temperatures

Updated 22 min 21 sec ago
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Met Office issues GLOF alert for northern Pakistan amid rising temperatures

  • Hot and humid weather prevailed over most parts of Pakistan in the last 24 hours
  • Monsoon rains and glacier melt caused deadly floods in 2022, affecting 33 million

ISLAMABAD: The Pakistan Meteorological Department (PMD) on Friday issued an alert regarding possible Glacial Lake Outburst Floods (GLOFs) in Pakistan’s northern areas, amid rising temperatures in the country.

Hot and humid weather prevailed over most parts of Pakistan and isolated falls of rain were recorded in Punjab, Azad Kashmir, Khyber Pakhtunkhwa, Balochistan and Sindh in the last 24 hours.

Nokkundi in Balochistan recorded the highest temperature on Friday 47°C, followed by 46°C in Bunji in Gilgit-Baltistan, and 45 in Dalbandin, Sibbi and Jacobabad, according to the PMD.

“Due to a significant rise in temperatures and upcoming system in northern Pakistan, the risk of Glacial Lake Outburst Floods (GLOFs) is very likely to increase in glaciated areas of Gilgit-Baltistan and Khyber Pakhtunkhwa,” it said.

“The persistent high temperatures may accelerate snow and glacier melt and subsequent weather events, potentially triggering GLOF and flash floods incidents, in vulnerable valleys and surrounding regions.”

The development comes as Pakistan braces for an extreme monsoon season that usually lasts till mid-September, with over 60 people killed in rains and floods in a little more than a week.

“All concerned are advised to remain alert and take necessary measures to avoid any untoward situation,” the PMD said in its alert.

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change.

In 2022, record-breaking monsoon rains and glacier melt caused catastrophic floods that affected 33 million people, killed more than 1,700 and caused over $30 billion in financial losses.


River Seine reopens to first Paris swimmers after century-long ban

Updated 23 min 45 sec ago
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River Seine reopens to first Paris swimmers after century-long ban

  • The seasonal opening of the Seine for swimming is seen as a key legacy of the Paris 2024 Olympics
  • A few dozen swimmers arrived ahead of the Saturday morning opening for the long awaited moment

PARIS: The River Seine reopened to Parisian swimmers on Saturday morning for the first time since 1923, offering locals and tourists a welcome respite after a scorching temperatures.

A few dozen swimmers arrived ahead of the opening at 8:00 a.m. (0600 GMT) for the long awaited moment, diving into the water under the watchful eye of lifeguards, an AFP journalist said.

The seasonal opening of the Seine for swimming is seen as a key legacy of the Paris 2024 Olympics, when open water swimmers and triathletes competed in its waters which were specially cleaned for the event.

The swimming zones are equipped with changing rooms, showers, and beach-style furniture, offering space for 150 to 300 people to relax, lay out their towels, and unwind from the city’s hustle and bustle.

The promise to lift the swimming ban dates back to 1988, when then-mayor of Paris and future president Jacques Chirac first advocated for its reversal.


Kenyans put their president on notice over broken campaign promises, corruption and violence

Updated 21 min 26 sec ago
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Kenyans put their president on notice over broken campaign promises, corruption and violence

  • Kenya’s fifth president became a remarkably unpopular leader barely two years into his presidency

NAIROBI: Kenyans disaffected with President William Ruto hold placards proclaiming “WANTAM,” a sensational slogan distilling their efforts to disgrace him as a “one-term” leader. They stick their index fingers in the air, saying Ruto must vacate the presidency when his term expires in 2027.
For others who want him gone only three years after he was elected, even that’s a long time.
Kenya’s fifth president became a remarkably unpopular leader barely two years into his presidency after proposing aggressive tax measures that many saw as a betrayal of his campaign promise to support working-class people. Ruto said new taxes were necessary to keep the government running.
Protests intensify
Ruto survived the tax-protest movement last year as thousands of young people took to the streets in an unsuccessful attempt to force his resignation. In the most violent incident that left at least 22 people dead, protesters sacked and attempted to burn the parliamentary building in the capital, Nairobi. Ruto said that would never happen again.
Ruto now faces a new wave of protests provoked most recently by the death of a blogger in police custody. Many Kenyans saw the incident as symptomatic of bad rule in Kenya, with the president firmly in control of the legislature and security apparatus.
“He has control of the institutions, but he doesn’t have control of the people,” said Karuti Kanyinga, an analyst and professor of development studies at the University of Nairobi. He noted Ruto suffers such “a low level of public confidence” that he is probably the most hated man in Kenya.
Ruto likely will stay in power until 2027, but “violence will continue to deepen” as young people, opposition politicians and others try to make an example of him in an escalating campaign to reform Kenya’s government, Kanyinga warned.
Public discontent
Protesters say they want to rid the government of corruption, marked by theft of public resources and the seemingly extravagant lifestyles of politicians. Some disparage Ruto as “Zakayo,” referring to the biblical tax collector Zacchaeus, and others call him “mwizi,” Kiswahili for thief.
The demonstrators also are inflamed by what they see as incessant deal-making under Ruto, who last year was forced to terminate an agreement worth an estimated $2 billion that would have seen Kenya’s main airport controlled by the Indian conglomerate Adani Group.
That deal, which became public months after security forces violently quelled anti-tax protests, reignited public discontent and reinforced a view of Ruto as unrepentant and unwilling to listen to his people.
To a degree rare for an African leader, Ruto constantly speaks about efforts to expand the tax base. His negotiations for new debt with the International Monetary Fund have drawn criticism from those who say proposed reforms will hurt poor people while benefitting politicians and the business class.
Last year, he told Harvard Business School’s Class of 2025 that he wasn’t going to preside over “a bankrupt country.”
Protesters are “not feeling heard and there’s a sense that things have not really changed since the protests last year,” said Meron Elias, an analyst in Kenya with the International Crisis Group. “There’s a lot of grief and bitterness from last year’s protest that is also feeding into current tensions.”
Peter Kairu, a 21-year-old student, agreed, saying he didn’t expect the government to address issues of corruption and nepotism raised by the protesters.
“Until we ourselves become the change we want,” he said.
Eileen Muga, who is unemployed in Nairobi, expressed safety concerns about disappearing “the moment you say something about the government.”
After thousands of people marched in Nairobi last week to mark the anniversary of the previous year’s anti-tax protests, Ruto said he was not going anywhere, warning if there was no Kenya for him, that also would be the case for others.
“If we go this route, we will not have a country,” he said of the protest movement. “Yes, and the country does not belong to William Ruto. The country belongs to all of us. And if there’s no country for William Ruto, there’s no country for you.”
The speech was characteristic of Ruto and underscored why many Kenyans are afraid of him even as they try to challenge him.
Kipchumba Murkomen, Ruto’s interior minister, has also spoken forcefully against protesters, saying they will be dealt with harshly.
A history of political maneuvering
Years ago, as Kenya’s deputy president, Ruto outmaneuvered his predecessor, Uhuru Kenyatta, in a bad-tempered power struggle that the president lost.
Photos sometimes showed Ruto glowering over Kenyatta. The local press reported an incident when Ruto was so angry with his boss that he felt he wanted to slap him. The two embodied a close, almost brotherly relationship in their first term but quickly fell out at the beginning of their second when Kenyatta tried to dismantle Ruto’s sway over the official bureaucracy.
Ruto won the 2022 presidential election by a narrow margin, defeating opposition leader Raila Odinga, who had Kenyatta’s backing. Ruto has since co-opted Odinga, drawing him close as a political ally but also eliminating a potential rival in the next election.
Ruto fell out with his deputy, Rigathi Gachagua, within the first two years of the presidency. In October, legislators with the ruling party impeached Gachagua in a parliamentary process Ruto said he had nothing to do with. Gachagua insisted lawmakers were acting at Ruto’s instigation.
Ruto did to Gachagua what Kenyatta chose not to do to Ruto, and some saw Gachagua’s removal as yet another sign that Ruto is intolerant and can’t be trusted, political analyst Macharia Munene said.
When he ran for president, Ruto positioned himself as an outsider and rallied for electoral support as the leader of a so-called “hustler nation,” a campaign that he said would economically empower ordinary Kenyans.
The strategy appealed to millions struggling with joblessness and inequality. Informal traders, passenger motorcyclists and market women were often among his supporters. Ruto also aligned himself with the evangelical Christian movement, often seen carrying a Bible and preaching at pulpits.
After taking office, Ruto spoke of an urgent need to make Kenya’s debt sustainable. The tax hikes in a controversial finance bill came months later. He also removed the fuel subsidies that many Kenyans had come to take for granted.
“I think it’s a question of overpromising and underdelivering,” said attorney Eric Nakhurenya, a government policy analyst. “That’s why Kenyans are angry.”


Death toll from Pakistan building collapse rises to 14

Updated 37 min 50 sec ago
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Death toll from Pakistan building collapse rises to 14

  • Friday’s incident was the latest in a string of deadly building collapses in Karachi
  • It laid bare the issue of unsafe housing in Karachi, home to over 20 million people

KARACHI: The death toll from a five-storey building collapse in the southern Pakistani city of Karachi rose to 14 on Saturday, officials said, after rescuers pulled three more bodies from the rubble overnight.

The Fotan Mansion residential building, where several families were said to be living, crumbled shortly around 10am on Friday in the impoverished Lyari neighborhood of the city.

Rescue workers, along with residents of the area, continued their operation to find survivors and bodies through the night, once again laying bare the issue of unsafe housing in Karachi.

“So far, we have received 14 bodies at the medico-legal section, including those of 12- and 13-year-old children,” Dr. Summayia Syed, the Karachi police surgeon, told Arab News on Saturday morning.

Many of the occupants were members of the low-income Hindu minority community and residents estimated that around 40 people were inside when the building collapsed.

According to the Sindh Building Control Authority (SBCA), Fotan Mansion had been declared unsafe as far back as 2012.

“This building was declared dangerous by the SBCA in 2012 and had been served multiple notices over the years,” SBCA spokesperson Shakeel Dogar told Arab News. “Before the recent rains, public announcements were also made in the area, but unfortunately, no one was willing to vacate.”

Friday’s incident is the latest in a string of deadly building collapses in Karachi.

In February 2020, a five-storey building collapsed in Rizvia Society, killing at least 27 people. The following month, another residential structure came down in Gulbahar, claiming 16 lives. In June 2021, a three-storey building in Malir collapsed, killing four. And just last year, in August, a building collapse in Qur'angi led to at least three deaths.

Karachi Mayor Murtaza Wahab said on Friday evening that rescue efforts remained their top priority, with accountability and investigation to follow.

“Once we’re done with the rescue aspect, we will focus on who was responsible for this negligence or omission,” he added.