QatarEnergy to further boost LNG production from North Field 

Qatar is among the world’s top exporters of LNG, competition for which has ramped up since the beginning of the war in Ukraine in February 2022. Supplied
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Updated 25 February 2024
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QatarEnergy to further boost LNG production from North Field 

DOHA: QatarEnergy chief Saad al-Kaabi announced on Sunday a new expansion of its liquefied natural gas production that will add a further 16 million tonnes per annum to existing expansion plans, bringing total capacity to 142 mtpa. 

With this added boost, the overall expansion of the North Field from 77 mtpa currently to 142 mtpa by 2030 represents an increase of 85 perecnt in production, Kaabi said at a press conference in Doha. 

Qatar is among the world’s top exporters of LNG, competition for which has ramped up since the beginning of the war in Ukraine in February 2022. 

This latest expansion may not be the last for the energy giant as Kaabi said appraisal of Qatari gas reservoirs would continue and production would be further expanded if there is a market need. 

State-owned QatarEnergy has already signed a string of supply deals with European and Asian partners in its massive North Field expansion project, which was expected — prior to Sunday's announcement — to produce 126 million mtpa of LNG per annum by 2027, from the current 77 mtpa. 

Exploration activities in the west of North Field prompted the company’s decision to expand further. 

Kaabi did not give a cost for the project but said it would be in the billions of dollars. 

“It is difficult to give you a number now for the cost of the expansion, but it is certainly in billions,” he said. 

“We will start preliminary engineering studies for the project and then at the right time we will announce how much is the cost when the project is settled.” 

In December, Kaabi told Reuters that QatarEnergy had been drilling wells to assess expansion opportunities beyond the North Field East and North Field South phases. 

This latest expansion will require the construction of two LNG trains, in addition to six already underway for the earlier expansions dubbed North Field East and North Field South. 

The North Field is part of the world’s largest gas field which Qatar shares with Iran, which calls its share South Pars. 

GAS MARKETS 

Kaabi said global markets still need more gas even after this further expansion saying that Asian market growth was driven by population growth and European markets would still need gas for a “long time” despite the energy transition. 

The Qatari announcement comes as US gas prices trade near an all-time low if adjusted to inflation after a decade of meteoric rise in output which made the US one of the top oil and gas exporters. 

Prices of gas in Europe also fell steeply despite a drop in Russia supplies after the US and Qatar helped replace lost volumes. 

Despite the price drop all major gas producers including the US, Australia and Russia want to further increase output betting on a further demand growth and worries that their gas might not be needed decades from now if energy transition makes green energy cheaper. 


Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank 

Updated 8 sec ago
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Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank 

RIYADH: Saudi Arabia’s industrial and logistics market is experiencing growth, with warehouse occupancy rates nearing saturation and rental prices in Riyadh increasing by 16 percent year-on-year, according to Knight Frank. 

The firm’s latest “Saudi Arabia Industrial and Logistics Market Review” highlighted a booming sector driven by e-commerce expansion, strategic government initiatives, and surging foreign investment. 

The Kingdom’s logistics hubs — Riyadh, Jeddah, and the Dammam Metropolitan Area— are operating at near-full capacity. 

Riyadh leads with a 98 percent occupancy rate, while Jeddah and Dammam follow closely at 97 percent each.

This momentum was also reflected in occupancy rates, with Abu Dhabi’s industrial and logistics market maintaining near-full capacity, mirroring Dubai’s tight supply. 

Key hubs like Khalifa Economic Zones Abu Dhabi and Abu Dhabi Airports Free Zone saw sustained demand, driven by strategic infrastructure projects and growing manufacturing activity, according to a separate report by Knight Frank.

Riyadh’s prime warehouse spaces now command rents exceeding SR250 ($66.6) per sq. meter, while city-wide averages hit SR208.

“Despite a slowdown in demand during the second half of the year, city-wide rental rates increased by 16 percent year-on-year,” the report said. 

Jeddah’s lease rates for Grade B facilities rose to SR238 per sq. meter, with the high-end Asfan district maintaining 100 percent occupancy at SR387 per sq. meter. Dammam Metropolitan Area saw rents jump 14.8 percent to SR202 per sq. meter, fueled by a chronic shortage of quality logistics space.

E-commerce and mega-projects fuel growth 

Rapid urbanization, a tech-savvy consumer base, and giga-projects like the Special Integrated Logistics Zone and Sino-Saudi Logistics Zone are reshaping demand. 

“Demographic shifts including rapid urbanization, increased female workforce participation, and a tech-savvy Gen Z and millennial consumer base are accelerating the growth of the e-commerce sector,” the report stated. 

The 3-million-sq. meter Special Integrated Logistics Zone has attracted global players like SHEIN and Apple, while the 4-million-sq. meter Sino-Saudi zone aims to strengthen trade ties with China. 

Government initiatives and private investment 

The National Industrial Development and Logistics Program is a cornerstone of the Kingdom’s industrial strategy, aiming to increase the transport and logistics sector’s contribution to the gross domestic product to 10 percent by 2030, from 6 percent in 2021.

Public-private partnerships are flourishing, with projects like the Tamer Logistics Park and Agility Logistics Park set to expand supply in key regions. 

“Substantial investments to improve and expand connectivity and trade infrastructure, along with regulatory reforms are helping transform Saudi Arabia into a logistics powerhouse,” the report emphasized.

Sustainability and digital transformation 

The sector is also pivoting toward sustainability and automation. Companies like Maersk and Agility are adopting solar-powered warehouses, while digital tools streamline operations. 

“Sustainability has become a major market driver, with companies integrating renewable energy fields and LEED-certified buildings,” said Adam Wynne, partner at Knight Frank. 

With 36,000 factories projected by 2035 and FDI reforms attracting multinationals, Knight Frank predicts sustained growth. 

“Saudi Arabia is on track to become a regional logistics powerhouse,” Wynne said, citing the Kingdom’s integration of “global expertise, modern infrastructure, and green initiatives.”


Saudi travel bookings surge in early 2025 with growth in regional demand: report

Updated 37 min 10 sec ago
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Saudi travel bookings surge in early 2025 with growth in regional demand: report

RIYADH: Saudi travel bookings surged in the first quarter, 2025, with regional demand up 14 percent driven by mobile-first convenience, flexible payments, and value-focused accommodations, a new report showed. 

Released by Almosafer, a Saudi travel firm under Seera Group, the report also highlighted a rise in international bookings, with a 11 percent year-on-year increase. 

Domestic reservations grew by 4 percent annually, along with strong expansion in the Middle East and North Africa region and long-haul international travel. 

The findings reflect a shift in Saudi travelers’ preferences, as they increasingly explore both local and global destinations, with a growing emphasis on adaptability, ease of booking, and affordability. 

This comes as Saudi Arabia’s airports handled 128 million passengers in 2024, a 45.8 percent increase since the launch of Vision 2030 in 2016, according to the Kingdom’s latest annual report on the initiative.  

Muzzammil Ahussain, CEO at Almosafer, said: “The continued growth in travel demand across domestic, regional, and international markets reflects a robust appetite and confidence for exploration among Saudi travelers.” 

He added: “We’re seeing a clear shift toward value, flexibility, and personalized experiences, whether it’s through choosing alternative accommodations, mixing and matching flight options, or leveraging mobile-first payment methods like Apple Pay and flexible options like buy now, pay later.” 

The report noted that flight bookings grew across all markets, with the MENA region leading at a 12 percent increase, while international flights rose by 5 percent.  

Room nights booked for domestic stays surged by 14 percent, and international trips climbed 13 percent.  

Saudi travelers are benefiting from a wave of local tourism initiatives and enhanced international airline connectivity. 

Cairo proved a popular destination for Saudi travelers. Shutterstock

Government-backed events and infrastructure projects are fueling domestic exploration, while expanded flight routes and eased visa policies are making global travel more accessible. 

Almosafer noted that the strong demand for domestic stays was fueled by a growing range of events and unique experiences within the Kingdom.  

Payment preferences shifted notably, with BNPL options representing 25 percent of all bookings, up from 14 percent the previous year, the findings showed.  

Popular regional destinations for Saudi travelers included Dubai, Doha, Cairo, and Manama. 

For longer-haul travel, Istanbul, London, Paris, and Phuket remained top choices, while newer destinations like Bangkok, Amman, and Milan as well as Moscow, Madrid, and Prague also gained traction. 

Domestically, cities such as Makkah, Jeddah, and Riyadh, as well as Alkhobar, and Madinah dominated, alongside rising interest in Taif, AlUla, and the Red Sea, the report showed. 

Saudi traveler profiles also evolved, with solo travelers representing 53 percent of flight segments, particularly toward long-haul destinations.  

Family trips major driver

Family travel accounted for 16 percent of flight segments but saw a 23 percent increase in the average trip length within the MENA region.  

Families were a major driver behind the 22 percent rise in domestic stays, while solo traveler stays beyond the region grew by 23 percent. 

In the air travel segment, full-service carriers grew in the domestic market by 24 percent year on year, while low-cost carriers saw a 6 percent decline.  

Within the MENA region, both full-service and low-cost carriers experienced growth. For international long-haul travel, low-cost carrier volumes surged by 35 percent amid the launch of new routes, even as full-service carrier volumes fell by 8 percent. 

Booking flexibility became a notable trend, with 24 percent of travelers opting to mix and match airlines for round-trip journeys.  

Accommodation preferences also diversified, with more than 75 percent of room nights booked in 4- and 5-star hotels.  

However, 3-star and below properties saw a 12 percent rise in international bookings, and bookings for serviced apartments and holiday homes increased by 15 percent in the MENA region and 21 percent beyond, reflecting growing demand for value-driven options. 

Alternative accommodations accounted for 8 percent of total room nights, offering an average 37 percent savings per night compared to hotel stays. This shift is particularly evident among international travelers seeking flexibility and affordability. 


Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou

Updated 37 min 39 sec ago
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Saudia Cargo, Henan Aviation Group ink deal to bolster routes between Riyadh, Zhengzhou

RIYADH: Saudi Arabia and China are strengthening their air cargo cooperation through a new agreement to create a joint freight hub as part of the Air Silk Road initiative.

The deal, inked between Saudia Cargo and Henan Aviation Group, will see new new routes opened between Riyadh and Zhengzhou, according to a statement.

This correlates with the Saudi Aviation Strategy, which recognizes the need to increase air connectivity with key markets such as China as part of the Kingdom’s goal of transporting 4.5 million tonnes of air cargo by 2030.

The statement further highlighted that the agreement aims to “support integrated logistics services and free trade zone development” and “advance sustainability and cross-border e-commerce through logistics innovation.”

It also seeks to explore investment opportunities in the high-tech and aviation sectors in Zhengzhou.

The MoU came during a meeting held by President of the General Authority of Civil Aviation Abdulaziz bin Abdullah Al-Duailej in Riyadh with Henan Province Vice Governor Sun Shougang to bolster investments between the two countries, the Saudi Press Agency reported.

During the discussion, the two sides discussed strengthening economic relations, focusing on fostering high-quality investments for leading firms and empowering the private sector to seize available opportunities. Both parties also explored enhancing Saudi-Chinese air transport in alignment with Vision 2030 and the Saudi Aviation Strategy.

GACA also held a Saudi-Chinese roundtable to explore collaboration opportunities in logistics zones and air cargo. The meeting included the Chairman of China Henan Aviation Group, along with representatives from national carriers and logistics firms.

The roundtable also included various Saudi government entities, such as the Ministry of Energy, the Ministry of Investment, and the Ministry of Transport and Logistic Services, as well as the Saudi General Authority of Foreign Trade, the Economic Cities and Special Zones Authority, the Industrial Center, and the Air Connectivity Program.
 
The Chinese delegation conducted a field visit to the Special Integrated Logistics Zone in Riyadh and the cargo zones at King Abdulaziz International Airport in Jeddah, where they observed operational capabilities, cargo-handling facilities and zones, e-commerce shipments, and the digital capabilities and mechanisms in use.

The delegation also visited King Khalid International Airport in Riyadh, where they toured the Airport Operations Control Center to observe the services provided as well as explored the commercial areas, and duty-free store.

China’s COSCO Shipping unveils Dammam office

Chinese company COSCO Shipping has launched its first office in the Kingdom in Dammam in an attempt to enhance operational efficiency and logistical connectivity.

This move also strengthens the firm’s partnership with the Saudi Ports Authority, or Mawani, supports trade growth, and achieves the goals of the nation’s Vision 2030 of consolidating the Kingdom’s position as a global logistics hub.

Saudi NHC continues house building deal with Chinese firm

Saudi Arabia’s National Housing Co. has extended its partnership with China State Construction Engineering Corporation, which aims to build 20,000 housing units within NHC destinations.

The partnership has been realized through the launch of multiple projects across NHC sites in the Eastern Region, Riyadh, and Jeddah, delivering over 3,800 housing units.

It comes as an extension of the Saudi-Chinese partnership series and several agreements signed with Chinese firms during the official visit to China by Minister Al-Hogail and NHC CEO Mohammed bin Saleh Al-Buty.

NHC stated that the partnership extends its efforts to enhance the real estate supply and inject more housing units through quality partnerships with major international companies to establish urban destinations with high-quality standards across the Kingdom.


Saudi Aramco lowers propane, butane prices for May

Updated 29 April 2025
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Saudi Aramco lowers propane, butane prices for May

RIYADH: Saudi Aramco has reduced its official selling prices for propane and butane for May 2025, according to a company statement issued on Tuesday.

The price of propane was cut by $5 per tonne to $610, while butane saw a steeper reduction of $15 per tonne, bringing it to $590. The adjustments reflect shifts in market conditions and follow a downward trend from the previous month.

Propane and butane, both classified as liquefied petroleum gas, are widely used for heating, as vehicle fuel, and in the petrochemical industry. Their differing boiling points make each suitable for distinct industrial and domestic applications.

Aramco’s LPG prices are considered key benchmarks for supply contracts from the Middle East to the Asia-Pacific region.

The global LPG market is undergoing a significant shift as steep tariffs on US imports prompt Chinese buyers to replace American cargoes with supplies from the Middle East.

Meanwhile, US shipments are being redirected to Europe and other parts of Asia.

This realignment is expected to put downward pressure on prices and demand for shale gas byproducts, posing financial challenges for both US shale producers and Chinese petrochemical companies. At the same time, it is likely to drive increased interest in alternative feedstocks such as naphtha.

Middle Eastern suppliers are emerging as key beneficiaries, filling the gap left by reduced US exports to China. In addition, opportunistic buyers in Asian markets like Japan and India are capitalizing on the price drops to secure more favorable deals.


Trump to reduce impact of auto tariffs, commerce secretary says

Updated 29 April 2025
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Trump to reduce impact of auto tariffs, commerce secretary says

WASHINGTON: President Donald Trump’s administration will move to reduce the impact of his automotive tariffs on Tuesday by alleviating some duties imposed on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.

“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Commerce Secretary Howard Lutnick said in a statement provided by the White House.

“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”

The Wall Street Journal, which first reported the development, said the move meant car companies paying tariffs would not be charged other levies, such as those on steel and aluminum, and that reimbursements would be given for such tariffs that were already paid.

A White House official confirmed the report and indicated the move would be made official on Tuesday.

Trump is traveling to Michigan on Tuesday to commemorate his first 100 days in office, a period that the Republican president has used to upend the global economic order.

The move to soften the effects of auto levies is the latest by his administration to show some flexibility on tariffs, which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown.

Automakers said earlier on Monday they were expecting Trump to issue relief from the auto tariffs ahead of his trip to Michigan, which is home to the Detroit Three automakers and more than 1,000 major auto suppliers.

General Motors, CEO Mary Barra and Ford CEO Jim Farley praised the planned changes. “We believe the president’s leadership is helping level the playing field for companies like GM and allowing us to invest even more in the US economy,” Barra said.

Farley said the changes “will help mitigate the impact of tariffs on automakers, suppliers and consumers.”

Last week, a coalition of US auto industry groups urged Trump not to impose 25 percent tariffs on imported auto parts, warning they would cut vehicle sales and raise prices.

Trump had said earlier he planned to impose tariffs of 25 percent on auto parts no later than May 3.

“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the industry groups said in the letter.

The letter from the groups representing GM, Toyota Motor, Volkswagen, Hyundai and others, was sent to US Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce’s Lutnick.

“Most auto suppliers are not capitalized for an abrupt tariff induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.”