China strengthens role in region’s energy sector

23 November, 2017 | By ANDREW ROSCOE

The signing of a framework agreement between Abu Dhabi National Oil Company (Adnoc) and China National Petroleum Corporation (CNPC) covering potential offshore oil and sour gas fields is the latest indicator of growing Chinese influence in the Gulf’s hydrocarbons industry.

The framework agreement followed a day after the state oil firm had awarded a CNPC subsidiary a contract to increase the capacity of its Bab onshore field. In February, CNPC was granted an 8 per cent interest in the emirate’s onshore concession.

It is not just the UAE that China is targeting to grow its energy interests in the Gulf. It was recently reported that Beijing had made an offer to Saudi Aramco to directly buy the 5 per cent stake planned for an initial public offering (IPO) in the world’s largest oil company.

Elsewhere in the Middle East and North Africa, CNPC was the first foreign oil company to sign an oil services contract in Iraq after Saddam Hussein’s regime was toppled. In October this year, a PowerChina subsidiary signed a $2bn deal to develop Egypt’s Ain Sokhna refinery.

In addition to exporting large companies able to deliver projects on low budgets, China is also increasingly keen to direct financing to projects abroad. The Asian country is providing the majority of the financing for the $3.4bn Hassyan coal-fired power plant in Dubai, which is being funded by major banks and the Chinese sovereign wealth fund Silk Road.

With the region increasingly looking for partners that can provide financing as well as expertise, Beijing is set to become an increasingly powerful player across the Middle East’s energy sector.

UAE’s multi-modal strategy shifts up a gear

Etihad Rail’s link with Khalifa Port underscores the UAE’s commitment to integrated, complementary transport options As 2020 has progressed, it has become increasingly evident that the slowdown in UAE construction activity ...

Muted projects activity to continue in Mena region

The projects market in the Middle East and North Africa (Mena) region fell for the second year in succession in 2017. According to MEED Projects, the value of contract awards ...

MEED and Mashreq renew partnership for third year

Partnership will grow to accommodate developments in sectors such as construction and energy MEED and Mashreq have announced the extension of their knowledge partnership for a third year. First established in 2017, ...

Opportunities for UAE logistics

The UAE logistics sector is poised to lead the country’s stance on economic diversification As the UAE seeks to cement its position as a global investment hub, logistics and transportation emerge ...

Dubai awards $3.8bn concentrated solar project

Emirate’s 700MW CSP facility will be developed under world-record tariff Dubai Electricity & Water Authority (Dewa) has awarded a contract for a 700MW concentrated solar power (CSP) solar project in Dubai, ...

Abu Dhabi to make next solar move

Emirate was finalising the location for its third major solar scheme earlier this year Abu Dhabi’s state utility Emirates Water & Electricity Company (Ewec) could issue the transaction advisory tender for the ...

UAE and Bahrain eye $550m Israel opportunity

Normalisation of relations with Israel through the Abraham Accords offers UAE and Bahrain the chance to boost their economies in key sectors When UAE Minister of Foreign Affairs & International Co-operation ...

ENERGY ROUNDTABLE: Outlook for petrochemical investments in the Middle East

Oil and gas companies around the region are investing in petrochemicals to maximise the value obtained from every barrel of crude oil produced A report published in October 2018 by the International ...

Saudi railway privatisation faces mounting challenges

Analysts differ in their opinions on whether the kingdom’s plan to privatise its rail network and use PPPs to build new lines will succeed It takes about four hours and twenty ...

Removing barriers in the value chain

The construction supply chain can greatly benefit from the application of supply chain management As the oil economies of the Gulf continue their rapid transition from growth driven by state-backed capital ...