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.

Growth of medical tourism in Dubai

Medical tourism is when a person travels to another country for medical care[1]. Key factors driving medical tourism are lower costs, better quality of care, lower waiting times, availing unavailable ...

Apicorp predicts regional energy investment slump

The energy sector lender says total spending in the Middle East and North Africa will be $792bn Energy sector lender Arab Petroleum Investment Corporation (Apicorp) has predicted that total committed and ...

UAE’s gas discoveries bring self-sufficiency goal closer

Recent discoveries will make the Abu Dhabi-led drive for gas self-sufficiency a shared endeavour with the emirates of Sharjah and Dubai With natural gas now firmly established as the global power ...

The transformation of regional power

The Middle East’s power sector is on a transformational path, with governments working to shore up energy security and delegate responsibilities to the private sector Demand growth for additional generation capacity ...

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 ...

Middle East aviation sector resumes activity

Recovery sought through commercial flights as region faces losses of $4.8bn The Middle East’s aviation sector has resumed activity as the region’s largest carriers seek to kickstart recovery amid the Covid-19 ...

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 ...

Sustaining the supply chain

Supply chain finance models serve as an optimal way for Middle East’s retail suppliers to gain quicker and more flexible access to working capital On 10 February, a live webinar hosted ...

Healthcare demand spurs opportunities in Egypt

Changing regulations, rising population levels and demand for universal access to quality healthcare is creating an attractive environment for investment in Egyptian healthcare On 12 January, a live webinar hosted by ...

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 ...