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Friday, March 29, 2024 | Daily Newspaper published by GPPC Doha, Qatar.
 Pratap John
Pratap John
Pratap John is Business Editor at Gulf Times. He has mainstream media experience of nearly 30 years in specialties such as energy, business & finance, banking, telecom and aviation, and covered many major events across the globe.
As for Qatar's current account, Oxford Economics said the country is expected to record a balance of 16.2% of its GDP this year and 14.3% in 2023
Business
Qatar may record fiscal balance of 8.6% of GDP this year, 8.8% in 2023: Oxford Economics

Qatar is expected to record a fiscal balance of 8.6% of GDP this year and 8.8% in 2023, Oxford Economics has said in a report. As for Qatar's current account, Oxford Economics said the country is expected to record a balance of 16.2% of its GDP this year and 14.3% in 2023. Positive fiscal and current account balance indicate that the country's economy is in robust health. According to analysts, positive fiscal balance meant government's revenues exceed its expenditures, whereas the positive current account balance indicates that the nation is a net lender to the rest of the world. The country's real GDP growth is expected to be 3.6% this year and 3.5% in 2023. Inflation will be nearly 3.9% this year and 2% in 2023, Oxford Economics noted. As the US Federal Reserve continues its aggressive hiking cycle, all central banks across the Mena region have tightened monetary policy to tackle rising inflation. Qatar Central Bank (QCB) announced on Wednesday it was raising the deposit rate 75 basis points to 3%, QNA said. It also raised the lending rate 50 basis points to 3.75%. The central bank cited the evolving domestic and international macroeconomic developments as the reason behind the decision. It also increased the repo rate 75 basis points to 3.25%, the Qatari news agency said. The UAE and Bahrain have hiked the most at 75bps, whereas Kuwait continues to be the least hawkish, only raising rates by 25bps. “With inflation continuing to rise, we expect more rate hikes to follow later in the year,” Oxford Economics noted. “Looking forward, we expect policymakers to continue on this tightening cycle until it is certain that inflation has begun to ease. Given the currency pegs to the US dollar, it is also important that policy rates do not fall too far out of step with the US Federal Reserve, which we expect to continue hiking until mid-2023. Separately, a report by Cooper Fitch indicates that job creation grew 10% between first and second quarters (Q1 and Q2) this year in the UAE. This was the largest increase in the Gulf region, with Bahrain second at 9%, Oman at 6%, Qatar at 4%, and Saudi Arabia at 3%. Kuwait's job market experienced a contraction of 2% between quarters, Oxford Economics noted.

Gulf Times
Business
Qatar’s financial wealth to grow by 3.9% annually, reaching $0.4tn by 2026: BCG

Qatar’s financial wealth will experience a sturdy compound annual growth rate (CAGR) of 3.9% in new wealth, rising from $0.3tn to $0.4tn in five years up to 2026, a new report by Boston Consulting Group (BCG) has shown. The report titled, ‘Global wealth 2022: Standing still is not an option’, shows equities and investment funds in Qatar make up the largest asset class at 46% of total personal wealth in 2021 whereas life insurance and pensions are expected to grow the fastest with a CAGR of 5.7% by 2026. Whereas currency and deposits represent the second largest class at 40% of total personal wealth in 2021, bonds make up a mere 1%. It is expected life insurance and pensions will become the third largest asset class over the next five years. “We see the Middle East and Africa financial wealth growing year after year, including Qatar, despite a tremulous global market. In fact, Qatar represented 4.2% of the Middle East and Africa's financial wealth in 2021, having grown 3.1% every year since 2016 to $0.3tn,” said Mustafa Bosca, managing director and partner, BCG. In 2021, approximately 40% of Qatar’s wealth derived from Ultra High Net Worth (HNW) individuals who are worth more than $100mn, with this expected to grow to 41% in 2026, whereas individuals with wealth ranging above $1mn held 25% of Qatar’s wealth in 2021 and is expected to remain the same by 2026. Net-zero is an immediate imperative: Although people tend to think of net-zero as a 2050 goal, the report notes that wealth managers must act immediately to embed sustainable investing across the entire client life cycle. Crypto: An untapped market for wealth managers: The opportunity for wealth managers is clear: nearly 80% of clients surveyed said that they would consider increasing their crypto holdings if wealth managers offered advisory and education services. Two-thirds of clients who sourced their crypto investment with third parties said that they did so because they didn’t think their wealth managers offered such services. To determine whether crypto is right for their businesses, wealth managers must consider if, when, and how they want to participate. Personalisation as a driver of top-line growth On average, wealth managers that excel at customising offers and interactions see higher rates of client satisfaction and lower rates of churn than others do. Personalisation is a complex undertaking that requires introducing new data and analytics, connecting processes across the firm’s front, middle, and back offices, and changing ways of working. In the report, BCG has identified three actions that wealth managers vying to deliver individualised service at scale can take to improve personalisation: prioritise capabilities that recur across journeys; design for value and scale; and back good ideas with the right enablers. Digital wealth management premium is real: The valuation multiples of digital wealth management firms are six or seven times as high as those of traditional wealth managers. Digital wealth management institutions are delivering faster customer growth, cheaper cost structures, and superior rates of innovation. To protect their future profitability, traditional wealth managers must evolve with the times. “The wealth management agenda is getting more crowded — and the items on it more urgent. Net-zero, crypto, personalisation, and digitisation are not merely arenas that leaders can simply consider. They are imperatives whose outcomes will determine which institutions grow client share over the next five years. The most important question facing wealth managers right now is not which initiatives to prioritise — but how best to execute on all of them,” Bosca added.  

A passenger wheels a luggage trolley inside the departures terminal at OR Tambo International Airport in Johannesburg. Blocked funds in excess of $1.5bn, mostly in Africa, threaten to slow the recovery of air travel and tourism in affected markets as it struggles to recover from the Covid-19 crisis.
Business
Blocked funds hamper air travel recovery in Africa, other key markets

Beyond the Tarmac The aviation industry is deprived of much-needed cash as some countries continue to block repatriation of airline funds from ticket sales, in contravention of bilateral agreements and global standards. Blocked funds in excess of $1.5bn, mostly in Africa, threaten to slow the recovery of air travel and tourism in affected markets as it struggles to recover from the Covid-19 crisis. Of the blocked payments, 67% is stuck in some 12 countries in Africa, according to the latest figures released by the International Air Transport Association. Nigeria is withholding $450mn in payments due to foreign airlines, the biggest amount held by any single African country, and the amount seems to be rising every week. Other African states withholding funds from foreign carriers include Zimbabwe with $100mn, Algeria ($96mn), Eritrea ($79mn) and Ethiopia ($75mn), recent IATA data reveals. The blocked funds are mostly from the sale of tickets, cargo space, and other activities. The global body of airlines has urged governments to work with the aviation industry to resolve the issues that prevent airlines from repatriating their rightful funds. This, it said will enable aviation to provide the connectivity needed to sustain jobs and to energise economies as they recover from the pandemic. “Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations. That is why it is critical for all governments to prioritise ensuring that funds can be repatriated efficiently,” IATA director general Willie Walsh had said earlier. Last month, during the IATA AGM in Doha, the association’s regional chief Kamil al-Awadhi said he had held two rounds of discussions with the Nigerian authorities, including the country's central bank, to help to negotiate the release of funds owed to foreign airlines operating in the country. “The excuse was that 'we don't have hard cash and this is why we can't do it' but you have to note that Nigeria is the biggest economy in Africa and Nigeria is the No 10 country in the world that exports oil,” he said. “While I was in that meeting with the central bank, they were not responsive to handling the blocked funds and almost said, 'well, tell the airlines not to operate' and this is of course extremely damaging to the aviation industry inside Nigeria and internationally.” Al-Awadhi said he will be returning to Nigeria “soon” for a third round of discussions to reduce the backlog, but did not say when. “Hopefully, we can get some sort of solution where it starts going down. It won't, I doubt, be paid in a single shot,” he said. That said, airline finances improved in all regions in 2021 and are expected to improve further in 2022, with North America leading the way. IATA’s previous estimates anticipated reduced, widespread operational losses in 2021. The association estimates the same for 2022 across all the main regions of airline registration, although the degree of improvement will vary significantly region by region. The US-Europe market illustrates that people’s willingness to travel by air has remained strong throughout the pandemic. The easing of air travel restrictions has often been followed by a surge in ticket sales. Except for countries directly affected by the war in Ukraine, demand has been mostly untouched, with ticket sales falling for only a week or so before recovering. Not even inflation has so far put people off air travel. It is likely, though, that demand would be stronger without these various shocks. Undoubtedly, aviation is resilient and on the rise. After the worst downturn in its history, the industry has turned the corner on the Covid-19 pandemic. Industry losses are expected to reduce to $9.7bn in 2022; down from $42.1bn in 2021. That is a huge improvement from losses of $137.7bn in 2020. In growing numbers and with rising excitement and enthusiasm, people are again enjoying the freedom to travel, to connect with one another, and to see the world. By the end of 2023, most regions will be at, or exceeding, pre-pandemic levels of demand, industry experts say. However, ongoing problems with blocked funds are extremely damaging to the airline industry. One of the consequences is that flights to countries with blocked funds cost six or seven times more than comparable flights elsewhere! Clearly, Nigeria is a case in point. Holding back money belonging to airlines also discourages other carriers from serving the particular market, thereby reducing connectivity and options for passengers. Blocked remittances have plagued airlines for years, but the situation has been exacerbated by the pandemic that left airlines cash-strapped after two years of weak travel demand. Therefore, it is critical for governments around the world to prioritise repatriation of blocked funds in the overall interest of the aviation industry, which is a key driver of global economic growth.

Gulf Times
Qatar
HIA passenger numbers jump 149% y-o-y to 3.1mn in June: QCAA

Hamad International Airport (HIA) recorded a 149% increase in passenger numbers, year-on-year in June, reaching 3,106,063 last month, according to Qatar Civil Aviation Authority (QCAA). In June last year, HIA had registered 1,245,766 passengers, QCAA said in its latest air transport statistics for June. It showed that the movement of aircraft in June increased by 39.3% year-on-year to 18,155 compared to 13,031 in the same period last year. However, air freight and mail declined by 9.4% year-on-year last month – to 196,724 tonnes from 217,212 tonnes in the same period last year. As preparations for the FIFA World Cup Qatar 2022 are underway in Qatar, a wave of upcoming events, new hotels, leisure centres and beaches are set to open in the country – promising hundreds of thousands of tourists and new visitors to come into the country via Hamad International Airport. The airport’s expansion, currently in Phase A, is set to increase the capacity to more than 58mn passengers annually by this year and Phase B, which will commence after the 2022 FIFA World Cup Qatar, will increase the capacity to more than 60mn passengers. Recently, Hamad International Airport (HIA) has been ranked and named the “Best Airport in the World” for the second year in a row by the prestigious SKYTRAX World Airport Awards 2022 at the global event Passenger Terminal Expo in Paris, France. The rankings were based on voting submitted by air travellers and passenger satisfaction across 39 key performance indicators for airport services and products including check-in, arrivals, transfers, shopping, security, immigration, and departure. HIA was announced the #1 airport amongst 550 other global airports.

Qatar banking sectoru2019s total assets have scaled up 1.7% month-on-month and 1% this year until June to reach QR1.846tn, according to QNB Financial Services report
Business
Qatar banking sector total assets scale up 1.7% m-o-m to reach QR1.846tn in June: QNBFS

Qatar banking sector’s total assets have scaled up 1.7% month-on-month (m-o-m) and 1% this year until June to reach QR1.846tn, QNB Financial Services (QNBFS) said in a report. Deposits went up by 1.7% during June 2022 to reach QR984bn. Deposits gain in June was mainly due to a 7.4% increase in public sector deposits, QNBFS noted in its ‘Qatar monthly banking sector’ update. Deposits have gone up by 1% in 2022, compared to a growth of 7.6% in 2021. Deposits grew by an average 6.1% over the past five years (2017-2021). Loans increased by 0.7% during June to reach QR1,221.4bn, QNBFS said and noted loans increase last month was due to a growth by 1.1% from the private sector. Loans have moved up by 0.4% in 2022 (until June), compared to a growth of 7.8% in 2021. Loans grew by an average 7.6% over the past five years (2017-2021), it said. Loans to deposits ratio (LDR) went down during the month to 124.1% in June. Loans increased by 0.7% in June to reach QR1,221.4bn , while deposits went up by 1.7% last month to reach QR984.0bn, QNBFS said. In terms of deposits, details indicate the government institutions’ segment (represents nearly 54% of public sector deposits) increased by 8% m-o-m (+17.4% in 2022), while the government segment (represents nearly 32% of public sector deposits) gained by 1.9% m-o-m (3.5% in 2022) and the semi-government institutions’ segment moved up by 18.6% m-o-m (+29% in 2022). However, private sector deposits went down by 0.3% m-o-m (+6.7% in 2022). On the private sector front, the consumer segment moved down by 1.1% m-o-m (+3% in 2022), while the companies and institutions’ segment went up by 0.6% m-o-m (+11.1% in 2022). Non-resident deposits declined by 2% m-o-m (-20.6% in 2022) in June. The overall loan book moved up by 0.7% in June, QNBFS noted. Total private sector loans increased by 1.1% m-o-m (+3% in 2022) in June. Consumption and others, services and real estate segments mainly contributed toward the private sector loan growth for the month. Consumption & Others (contributes nearly 21% to private sector loans) went up by 2.2% m-o-m (+3.1% in 2022). Services (contributes nearly 29% to private sector loans) increased by 1.4% m-o-m (+4.6% in 2022) during June. Real estate segment (contributes nearly 21% to private sector loans) moved up by 1.5% m-o-m (+4.2% in 2022). General Trade (contributes nearly 21% to private sector loans) edged up by 0.2% m-o-m (+1.8% in 2022) last month. Domestic public sector loans went up by 0.2% m-o-m (-4% in 2022). The government institutions’ segment (represents nearly 60% of public sector loans) loan book increased by 0.3% m-o-m (0.7% in 2022), while the semi-government institutions’ segment moved up by 2.9% m-o-m (+3.8% in 2022). However, the government segment (represents nearly 34% of public sector loans) declined by 0.2% m-o-m (-12.1% in 2022). Outside Qatar loans went down by 1.1% m-o-m (-4.2% in 2022) during June, QNBFS revealed.

Kevin Murphy
Business
Qatar’s telecom industry 'well-equipped' to accelerate 5G transformation, introduce innovative solutions: Ericsson official

Qatar’s telecommunication industry is well equipped to accelerate 5G transformation and introduce innovative solutions across the country through various infrastructure projects, noted Kevin Murphy, vice-president and head (Customer Unit) at Ericsson North Middle East and Global Customer Unit for Ooredoo Group. "With immense government support and the nation fostering an ecosystem of collaboration between public and private organisations, Qatar’s telecommunications industry has witnessed robust growth and has significantly advanced in the last few years," Murphy said in an interview with Gulf Times. “As the most anticipated sporting event of this year (FIFA World Cup Qatar 2022) approaches, we are confident the Qatari telecommunications industry will be able to provide exceptional connectivity that will enable fans and visitors to experience immersive and unforgettable tournaments,” Murphy noted. Speaking about Ericsson’s partnership with Ooredoo to ensure the best connectivity to subscribers during the world’s most anticipated football event in Qatar in 2022, he said: “Being the most anticipated football tournament of 2022, we understood the responsibility that lay on our shoulders - ensure millions of fans visiting the country have the best possible experience cellular technology can provide. Through network modernisation, infrastructure deployments, and RAN network enhancements, we have focused on helping Ooredoo Qatar be better equipped to manage the anticipated increase in users and connected devices while still providing top-notch performance. “Our technologies and solutions will enable Ooredoo Qatar to offer and facilitate a multitude of fan use cases based on enhanced mobile broadband, with very high network speeds, low latency, and large data capacity. The live deployment of our 4+0 carrier aggregation microwave hops is set to boost backhaul capacities for better connectivity with minimal footprint and power consumption during the tournament. “We are striving to offer the best 5G user experiences to visitors and enable fans to enjoy high-definition real-time interactivity and streaming experiences.” Murphy said Ericsson is also working with Ooredoo Qatar to provide network optimisation, event management, and 5G connectivity in eight stadiums across six cities, as well as in dedicated fan zones, airports, and places of attraction. “As the tournament draws nearer, we are thrilled to see how our partnership will ensure hundreds of thousands of football fans visiting Qatar from around the world will enjoy the best next gen 5G connectivity experiences possible.” On his vision for Ericsson in Qatar, and how it aligned with Qatar National Vision 2030, Murphy said: “Since we began operations in Qatar, we’ve been committed to enhancing the nation’s cellular infrastructure and fostering an environment that drives innovation and technological adoption to aid Qatar in realising its national agendas. “With Qatar’s National Vision focusing on economic growth, social development, and environmental management to meet the needs of the current and future generations, the role of cellular technology and next-generation networks such as 5G will significantly increase in the coming years. Working alongside the nation's telecommunications industry, we are determined to continue supporting the nation with our high-performing, energy-efficient network technologies that will enable Qatar to realise its national objectives.” Murphy also spoke about how Ericsson supported youth looking for opportunity to develop innovative ideas that tackled global challenges. He said: “The future belongs to the youths of today and they will play a crucial role in shaping it. Over the years we’ve focused significant efforts on developing initiatives such as our flagship education programme ‘Connect to Learn’ to develop the digital skills of young people and help them be better prepared to meet the challenges of tomorrow. “However, for young people to have an impact on society, they need to be presented with opportunities to do so. This is why we’ve created the Ericsson Innovation Awards (EIA) that have been bringing students together from around the world to use their skills and innovative thinking to pave the way to a better future. “The competition challenges students to develop smart, collaborative, and innovative solutions to counter many of the global problems facing the world today. Attached with a cash prize, this year's challenge runs on the theme 'Impact our Sustainable Future' and will encourage teams to take inspiration from the 17 sustainable development goals (SDGs), identify an interconnected challenge, and tackle it through new innovative tech solutions that can make a lasting change. We are currently inviting university students of all ages to sign up for the competition and will close registrations on August 5.”

Petronet's Dahej LNG Terminal in Gujarat. The company had set up South East Asia's first LNG Receiving and Regasification Terminal, which receives LNG from Qatar. Photo courtesy: Petronet LNG
Business
Qatar-India bilateral trade jumps 63% year-on-year to $15.03bn in 2021-22

  * Qatar is the largest supplier of LNG to India, accounting for more than 50% of India's global LNG imports. Besides LNG, India also imports ethylene, propylene, ammonia, urea and polyethylene from Qatar   Buoyed up by liquefied natural gas supply, Qatar – India bilateral trade jumped 63% year-on-year to $15.03bn in 2021-22, data released by India’s Department of Commerce has shown. Qatar is the largest supplier of LNG to India, accounting for more than 50% of India's global LNG imports. Besides LNG, India also imports ethylene, propylene, ammonia, urea and polyethylene from Qatar. India is considered to be the fourth largest export destination for Qatar, Qatar Embassy in India said in its website. According to India’s Department of Commerce, the country imported liquefied natural gas worth $5.9bn from Qatar in 2021-22, representing an 88% growth, year-on-year. India imports natural gas from Qatar under an agreement signed by both sides in 1990 to buy and purchase the LNG amounting to 7.5mn tonne annually for a period of 25 years. Subsequently, both sides agreed (in December 2015) that Qatar would provide India an additional quantity of the LNG amounting to one million annually. Recently, addressing the India-Qatar Business Forum held on the occasion of his official visit to Qatar along with a high-profile Indian business delegation, India’s Vice-President Venkaiah Naidu said bilateral trade between both countries is currently dominated by the energy sector. “Bilateral trade between India and Qatar has seen remarkable progress. Currently trade is dominated by energy, and our focus now is to expand in diversified trading. “Also, we are seeing an increase in registered Indian businesses in Qatar, with over 15,000 businesses operating in the country. Over 100 Indian businesses are registered with the Qatar Financial Centre (QFC), and two companies at the Qatar Free Zones,” the Indian vice-president said. Although, the balance of trade continues to be heavily in Qatar’s favour, there has been a substantial growth in India’s exports to Qatar in the last few years. There has been a substantial increase in Qatar’s imports from India past 2-3 years, facilitated by the opening of direct shipping lines linking Indian ports with Qatar. The increase, according to Embassy of India in Doha, has been in the area of food products, vegetables, pharmaceuticals, steel products and construction materials. According to the Qatar Chamber of Commerce and Industry (QCCI), there are over 6,000 big and small Indian companies operating in Qatar. Indian companies are today pursuing collaborations in various sectors like infrastructure, communications and information technology, energy and other areas in Qatar. The extensive infrastructure development in Qatar as it prepares to host the prestigious FIFA World Cup later this year and attain its National Vision 2030 objective, and the acknowledged competences of India’s corporate sector, offer attractive opportunities for cooperation. Indian companies have invested about $450mn in Qatar, according to a statement by Qatar Financial Centre (QFC). The two countries have set up a Joint Task Force on Investment to facilitate investments by Qatar Investment Authority (QIA) into India, and also to explore Qatari investments in the entire energy value-chain in India, Embassy of India in Doha noted. Invest India and Investment Promotion Agency of Qatar have reached an understanding on co-operation to promote two-way investments between both countries. Over the years, many Indian and Qatari trade and commerce delegations have visited and participated in events in both the countries.

Nakilatu2019s Q-Flex LNG carrier Mesaimeer (file picture). According to IGU, Nakilat introduced the Q-Flex (210,000 to 217,000 cm) and Q-Max (263,000 to 266,000 cm) vessels, achieved greater economies of scale with their SSDR propulsion systems, representing the 45 largest LNG carriers ever built.
Business
Global LNG carrier landscape 'dramatically' changes with Nakilat Q-Class vessels: IGU

Global LNG carrier landscape has changed dramatically when Qatar's Nakilat introduced the Q-Flex and Q-Max vessels, specifically targeting large shipments of LNG to Asia and Europe, International Gas Union (IGU) has said in a report. According to IGU, Nakilat introduced the Q-Flex (210,000 to 217,000 cm) and Q-Max (263,000 to 266,000 cm) vessels, achieved greater economies of scale with their SSDR propulsion systems, representing the 45 largest LNG carriers ever built. After the wave of Q-Class vessels, most newbuilds settled at a size between 150,000 and 180,000 cm, IGU said in its ‘World LNG Report 2022’. This capacity range now makes up 39% of the current fleet. The technological developments that steered adoption of this size are the two-stroke propulsion systems, such as the ME-GI, X-DF and STaGE types, that maximise fuel efficiency between 170,000 and 180,000 cm. Another crucial factor is the new Panama Canal size limit – only vessels smaller than this size were initially authorised to pass through the new locks, imperative for any ship engaged in trade involving US LNG supply. The Q-Flex LNG carrier Al Safliya, which is larger than 200,000 cm, became the first Q-Flex type LNG vessel and the largest LNG carrier by cargo capacity to transit the Panama Canal in May 2019. While 174,000 cm remains the most common newbuild size, larger ships have once again gathered interest from shipowners. There are 12 200,000 cm vessels currently on order, nine at Hyundai Heavy Industries Group and three at Daewoo Shipbuilding & Marine Engineering, with the first unit expected to be delivered in early May 2022. With further improved two-stroke propulsion solutions, the second-generation X-DF and ME-GA systems, 200,000 cm carriers might become a popular choice from an efficiency standpoint, although other aspects such as flexibility and terminal compatibility have to be considered. Additional developments in the LNG carrier space include the progress on International Maritime Organisation (IMO) environmental regulations, re-liquefaction/subcooling system development, windassisted propulsion, and onboard carbon capture solutions. The IMO’s Energy Efficiency Existing Ship Index (EEXI) and Carbon Intensity Indicator (CII) is expected to come into force in January 2023, IGU noted. The EEXI is a one-off measurement to ensure a ship is energy efficient relative to its type, propulsion system and capacity. Any ship in service must attain EEXI approval from January 2023 to be considered compliant, which could result in LNG carriers having to reduce maximum speed to attain certification, impacting voyage durations and flexibility. The CII is an ongoing measure of carbon emission intensity of the ship in operation over a period of one year where the requirements will become more stringent over time. The rating levels will become stricter towards 2030 and might prove challenging to meet for a large proportion of LNG vessels. Depending on the operational efficiency during the measured year, some vessels will be at risk of attaining a 'D' rating, having to improve carbon efficiency if the rating is not improved in maximum three years, or an 'E' rating, having to do carbon intensity improvements immediately. “This ruling could cause a wave of vessels to be scrapped or converted, reducing the size of the active LNG carrier fleet in the subsequent few years,” IGU noted. Newer generations of LNG carriers are delivered with re-liquefaction or subcooling systems to minimise boil-off gas consumption during sailing. Re-liquefaction systems return unused boil-off gas to the LNG tank. Due to the large upfront investment and power requirements for such systems, partial liquefaction systems are usually preferred. Installation of a subcooling system is another alternative for reducing boil-off gas. This alternative may be simpler than traditional liquefaction systems and is an emerging and popular solution. Wind-assisted propulsion is a solution that has gained traction recently. By attaching rotors or rigid, flexible or inflatable sails to the vessel, this solution can lead to reduced fuel consumption, reduced emissions and cost savings. With pilot programmes in progress, LNG players are examining the potential of applying wind-assisted propulsion to newbuilds as well as retrofitting the active fleet. An example is TotalEnergies working with Hyundai Heavy Industries Group, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries on assessing both possibilities for LNG carriers. Capturing carbon dioxide from vessel exhaust gas is another method of decarbonising shipping that has gained interest recently. Installing carbon capture solutions on LNG carriers is less complicated relative to other vessel types, due to high exhaust gas heat and low-impurity fuel. Samsung Heavy Industries has announced the successful development of an onboard carbon capture system for LNG-fuelled vessels and is in the process of commercialising the technology with the aim of having it widely available by 2024, IGU said.

A cabin attendant carries bags of trash as she conducts her cleaning duties in the cabin of a Japan Airlines Co airplane at Haneda Airport in Tokyo. The airline industry has been always the subject of criticism for inadequate cabin waste recycling, which threatens the sectoru2019s environmental reputation.
Business
Cabin waste recycling remains major challenge for airlines

Beyond the Tarmac The airline industry has been always the subject of criticism for inadequate cabin waste recycling, which threatens the sector’s environmental reputation. With a huge growth in passenger numbers expected in the coming decade, the volume of cabin waste could more than double in the next 10 years! This certainly calls for urgent action towards proper cabin waste recycling across the global airline industry. A growing challenge for airlines, however, is the sustainable management of millions of tonnes of waste generated within the cabin. Cabin waste is costing airlines money, consuming valuable resources, and undermining the sector’s credibility on sustainable operations. Cabin waste is made up of two main streams: Cleaning waste and catering (galley) waste. Cleaning waste is leftover rubbish from items given to passengers on the aircraft such as newspapers, paper towels, plastic bottles, food dropped on the floor, amenity kits and plastic wrapping from blankets, pillows and headsets. Cleaning waste also includes the contents of washroom bins and medical waste such as used syringes. Catering waste comes from inflight meals, snacks and beverages served to passengers and can consist of leftover food, drinks and packaging which is placed back in the trolleys, in static or compactor bins. This waste can contain high volumes of liquid from unconsumed beverages and ice. Increasingly, airlines are taking steps to address the issue and good practices are emerging within the sector. An industry research done by the global body of airlines – IATA indicates that 20-25% of cabin waste is untouched food and beverages and although the inflight catering market shrank during the pandemic. This still means the sector is incinerating or landfilling $2-3bn worth of resources. The in-flight catering services market, IATA says is expected to have reached a market size of $18bn by 2021. A unique challenge for airlines that operate on international routes is the complex waste regulatory environment that they have to work with. International catering wastes are often subject to regulatory inspections and special handling and disposal requirements including incineration and steam sterilisation, which makes reuse and recycling challenging (if not impossible). Despite airline meals being prepared under strict global hygiene controls including the sourcing of ingredients, countries such as Australia, Canada, members of the European Union, New Zealand and the US have placed restrictions on catering waste from international flights based on animal health concerns. Although international arrivals into these countries represent only a fraction of total global arrivals, tight turnaround times, lack of space in catering facilities and the adoption of a precautionary approach by service providers, means that catering wastes from domestic or non-regulated international flights are often not segregated and all cabin waste is deemed potentially biohazardous. All cabin waste is subject to national waste management controls that limit pollution, but many countries have gone further with their regulations, introducing restrictions on catering waste from international flights to protect their agricultural sector (in respect to animal health). Airline meals are prepared using stringent hygiene and quality control standards, originally designed for Nasa astronauts, but the regulations often lead to the incineration of all cabin waste with limited ability to reuse and recycle. Another key challenge for airlines is the inappropriate disposal of single use plastic (SUP) and its impact on the marine environment. Although SUP is widely used in aviation due to its strength, lightness and hygienic properties, voluntary action by airlines has demonstrated that the sector is keen to replace these products with more sustainable alternatives. However, international airlines are facing challenges with differing SUP regulations being implemented at airport, regional and national levels, an IATA session in Doha was told last month. Asymmetric SUP regulations will result in differing alternative products being introduced on separate legs of a journey, confusing passengers and crew, increasing compliance costs and generating more waste. These emerging regulations do not recognise that alternatives to SUP must meet strict aviation security and hygiene constraints and that replacement should be based on a lifecycle approach that takes emissions from flight operations into account. IATA has also identified asymmetric national SUP bans that are problematic for international airlines, and are raising awareness of these concerns with the relevant regulators. Many airlines, the association says, have taken a proactive approach to the challenge of SUP by removing straws and drink stirrers and introducing bio-based cutlery, crockery and packaging solutions. However, in some countries these initiatives have either been stalled or reversed as a result of the pandemic and the introduction of asymmetric regulations. Industry experts say airlines and their catering providers have an opportunity to reduce cabin wastes by improving planning and logistics. Regulations by certain countries on treating cabin waste, they argue, reduce the sector’s ability to help build a circular economy and contribute to the Sustainable Development Goals (SDGs) target to cut global food waste in half by 2030. A major obstacle to airlines’ ability to reuse and recycle more cabin waste is the International Catering Waste (ICW) legislation that many governments have adopted. These regulations aim to reduce the risk of transferring animal and plant diseases by requiring ICW to be subject to special treatment. For this reason, airlines and their service providers must work collaboratively with regulators to ensure that aviation makes a positive contribution to the SDG target.

Qatar has achieved more than 90% LNG utilisation rate in terms of liquefaction capacity in 2021 compared to the last yearu2019s global average of 80.4%, International Gas Union (IGU) has said in a report
Business
Qatar achieves 90% plus LNG utilisation rate in terms of liquefaction capacity in 2021: IGU

Qatar has achieved more than 90% LNG utilisation rate in terms of liquefaction capacity in 2021 compared to the last year’s global average of 80.4%, International Gas Union (IGU) has said in a report. Global liquefaction capacity reached 459.9mn tonnes per year (mtpy) in 2021 IGU said in its ‘World LNG Report 2022’. Besides Qatar, the following LNG exporting markets also achieved utilisation rates of more than 90% in 2021 – Papua New Guinea, Russia, United Arab Emirates, United States, Oman, and Australia. As of April 2022, there were 21 markets with operational LNG export facilities. Australia continues to be the market with the largest operational capacity with 87.6 mtpy, followed by the United States, which overtook Qatar with an operational capacity of 86.1 mtpy. Qatar’s operational capacity stood at 77.1 mtpy. The United States increased its total operational capacity by 25% from 69.1 mtpy at the end of 2020 to 86.1 mtpy in April 2022. This was mainly contributed by the start-up of Corpus Christi T3 (4.5 mtpy), Sabine Pass T6 (5.0 mtpy) and most recently in March 2022, part of the Calcasieu Pass LNG T1-T12 (7.5 mtpy). The remaining six trains of the Calcasieu Pass LNG T13-T18 (3.8 mtpy) is set to come online by the end of 2022, which will eventually make the United States the market with the largest operational liquefaction capacity. The top three LNG export markets currently represent more than half of the global liquefaction capacity. The US was one of the main beneficiaries of the strong demand for LNG last year, IGU said. Utilisation in the US increased from 76.5% in 2020 to 103.4% in 2021, representing a 50% increase in US LNG exports. This was primarily driven by strong netbacks due to high prices in end-user markets in Europe, Asia, and Asia Pacific, which incentivised full dispatch from US LNG export terminals in 2021. In the last quarter of 2021, US LNG exports to Europe increased due to low natural gas storage inventories in Europe, sending spot prices for natural gas soaring. As Europe continues to struggle to implement the policy to replace Russian gas following the Russia-Ukraine conflict, more attention has been placed on US LNG to fill the void. Similarly, liquefaction facilities in the Middle East have performed above nameplate capacity, with UAE and Qatar operating at an utilisation rate of 107.4% and 103.3%, respectively. Adgas has made investments to further boost output, while Qatar’s facility remains tied up in long-term oil-linked contracts with Asian buyers, which have likely maximised contractual offtake to reduce exposure to the record-high prices in the spot market, IGU noted. As of April 2022, 138.5 mtpy of liquefaction capacity was under construction or approved for development, of which approximately 25% is located in Russia. In 2021, 50mtpy of liquefaction capacity was approved. This was mainly contributed by the Qatargas North Field East (NFE) project that was approved in February 2021, adding 32mtpy to global approved liquefaction capacity, IGU said.

Gulf Times
Qatar
GCC set to become global hydrogen export hub: Apicorp

  *The focus will be on exporting low-carbon hydrogen to demand centers in Europe and SE Asia via ammonia shipments, Arab Petroleum Investments Corporation said in a report GCC is set to become global hydrogen export hub catering to demand in Europe and Southeast Asia, according to Arab Petroleum Investments Corporation (Apicorp). Apicorp’s analysis shows that right across the region, blue and green hydrogen will dominate the emerging hydrogen markets in the near term. The report forecasts that hydrogen markets will start scaling up as the market foundations are established, and for the MENA region – GCC and North Africa specifically – the focus will be on exporting low-carbon hydrogen to demand centers in Europe and SE Asia via ammonia shipments. Suhail Shatila, senior energy specialist at Apicorp said, “In the medium term, blue hydrogen proves to be a more attractive option to the MENA region. Blue hydrogen can be produced at a relatively low cost, and it will only slightly disrupt the IOCs and NOCs existing business models. This is a central metric in the energy transition journey since hydrocarbon producers will play a key role in decarbonizing the upstream oil and gas sector and help reach net-zero targets by mid-century.” MENA energy investments, Apicorp said will increase by 9% to exceed $879bn over the next five years. In the GCC, committed projects comprise around 45% of total energy investments – 50% higher than the MENA-wide average of 30%. For net-energy importers in the North Africa and Levant regions, their relative vulnerability to geopolitical risks stemming from the war compounded by the economic strains of inflation and debt burdens are beginning to show and impact energy investments. Ramy al-Ashmawy, senior energy specialist at Apicorp said, “Our latest MENA Energy Investment Outlook shows that the region continues to progress in its unique energy transition path. Namely, MENA countries shoulder the largest share of global investments in oil and gas going forward to ensure global energy security and avoid an impending super cycle that may severely hamper the world economy. “At the same time, the region continues to invest in decarbonisation, renewables and clean energy as part of the long-term strategic vision for a low-carbon future underpinned by a greener, more balanced, and sustainable energy mix.” Energy diversification is at the top of the agenda, with several MENA countries integrating renewables in their generation mix as part of a shared policy objective to diversify the power mix with low-cost, low-carbon energy sources and bolster power supply security. For hydrocarbon net-importing countries with robust renewables potential, the aim is to reduce dependence on conventional fuel imports and integrate low-cost renewables into domestic grids. Over the coming years, the priority for hydrocarbon net exporters is to free up export volumes of conventional fuels to maximise revenues at healthy price environments to fund socioeconomic development and support the decarbonisation initiatives of their respective net-zero targets. The MENA region is expected to add 5.6GW of installed capacity from renewables in 2022, nearly double the 3GW, which came online in 2021. By 2026, the region is expected to add 33GW by installed capacity of renewables, with around 26GW as utility and distributed solar PV. Apicorp forecasts that of the energy vectors constituting the power mix in MENA, natural gas – which is already a dominant fuel for power generation – is expected to grow to maintain a power generation share of around 70% to 75% across MENA by 2024. Another positive sustainability signal oil-fired power, which is expected to drop from 24% of total generation to around 20% by 2024, Apicorp noted.

Gulf Times
Business
Supply risks 'primary factor' in setting oil prices in 2022 and next year: Emirates NBD

Supply risks will remain the primary factor in setting oil prices over the rest of 2022 and into next year, Emirates NBD said even as the bank holds on to Brent averaging $120/b in the third quarter (Q3) of the year. Oil futures have turned considerably lower in the last few weeks with both Brent and WTI front month contracts falling below $100/barrel as of mid-July. But time spreads across the curve remain in historically high backwardation and bids for physical barrels are strained at elevated levels. The oil market looks stuck then in a state of limbo, trying to determine whether it is indeed about to loosen substantially as a pending recession will ravage demand or whether, as cautioned by Fatih Birol, the executive director of the IEA, the world will move into an unprecedented “major energy crisis in terms of its depth and its complexity.” At current prices, front month Brent futures have fallen $24/b from a recent peak in June of around $122/b. In WTI the fall has been as much as $26/b. The drop has come in line with a substantial pick-up in market anxiety over a looming global recession, prompted by central banks’ belated but aggressive response to dealing with inflation, noted Edward Bell, senior director (Market Economics) at Emirates NBD. The IMF has cut its expectation for US GDP growth this year to 2.3% from closer to 3% previously and warned that preventing a recession is “becoming increasingly challenging. Meanwhile in the Eurozone, the prospect of a sustained interruption to energy supplies caused by the EU’s response to Russia’s invasion of Ukraine will exacerbate slowing growth and could induce a contraction in the economy. Oil markets received a preview of demand deteriorating on weak economic activity thanks to China’s zero-Covid policy which the IEA estimated caused a demand drop of 840,000bpd in May compared with the same month a year earlier. But like the dramatic slump in demand caused by the Covid-19 pandemic in 2020, the drop in China’s consumption was caused by public heath restrictions, rather than economic responses to prices. While major economies may show slower growth over the rest of 2022 and into next year, if not actually falling into recession, the impact on oil demand may be limited given the relative inelasticity of oil demand in the short term. During the global financial crisis in 2008-09, global oil demand fell by a bit more than 2.1mn bpd over two years before it was more than recovered in 2010. While the downside risks to economic activity and oil demand generally are salient, there are still considerable risks to supply over the next 12-18 months. Russia’s ability to freely export crude oil and other energy products is likely to become more proscribed once a comprehensive ban on EU seaborne imports of Russian oil and products takes effect toward the end of the year. Those sanctions will contribute to lower output levels from Russia though the degree of negative impact is still uncertain. The different components of the oil market are picking up different parts of the macro narrative, Emirates ND said. Oil futures look to be focused on the recession risks and potential negative implications for demand while the physical market is looking squarely at the relative scarcity of barrels. Contracts for difference in the physical Brent market, a short-term derivative used to hedge oil loading in the very near term, remain at high levels even as spot futures have come off. Emirates NBD said: “We expect that supply risks will remain the primary factor in setting oil prices over the rest of 2022 and into next year. Our expectation for Q3 Brent is for an average of $120/b and we are holding to that view as we expect the sell-off should be reversed as supply shortfalls remain acute. In a best-case scenario where major economies avoid recession, there would be considerably upside risk to oil prices as supply fails to match higher marginal demand. But even in a recession scenario we expect that much of the sell-off in prices has already occurred, putting a floor on how much lower prices can go.”

Ignacio Galan meets with the Iberdrola team at the Iberdrola Innovation Middle East Research and Innovation Centre at QSTP in Doha in March this year
Business
Qatar’s natural gas to have 'very relevant' role in global energy transition: Iberdrola chairman

Qatar’s natural gas is going to have a “very relevant” role in the context of feasible global energy transition, said Ignacio Galán, chairman and CEO of Iberdrola. Gas is globally recognised as an “essential energy” in the transition to 'Net Zero', Galán emphasised in an interview with Gulf Times. “Gas is globally recognised as an essential energy in the transition to Net Zero. The IEA’s Net Zero Emissions by 2050 Scenario shows that gas generation will grow over this decade, to replace coal generation. “Globally, there is a real urgency to replace coal as quickly as possible. And Iberdrola has been a driving force behind it. We have closed all coal plants and invested significantly in gas-fired power plants, renewables, smart grids and storage to further drive the energy transition. And this has proven to be the solution to drive much-needed energy self-sufficiency in most regions and countries. But, of course, the transition needs to be feasible and must be designed taking into account the resources available in each country. The gas from Qatar is going to have a very relevant role in this respect,” Galán noted. In the current global context, energy security and autonomy has become a hot topic globally. The good news is that clean energy technologies are the solution to these concerns, as they are to decarbonisation, he said. So, in reality, we have more reasons than ever to reaffirm and accelerate the energy transition and ensure a sustainable, competitive, and fair economy. This was the rationale for close to 200 countries, Qatar amongst them, to sign the Paris Agreement. “And we need to speed up implementation, as the energy transition can create large-scale industrial opportunities, and the investment required will help economies to recover and grow after the current global economic crisis. We have the technologies, the support of society and, as companies, we are ready to play our part, investing and committing all our human and technological resources,” Galán said. On the main issues that need to be addressed by governments globally to deliver the energy transition, Galán said, “We will always need clarity in policy, respect for the rule of law and supportive regulations. For example, the processes involved in permitting new projects can easily move with greater speed in most countries. If it is possible to build a large solar project in 12 months, it should not take 5 years to obtain all the permits. “We are seeing positive changes everywhere, and we remain optimistic that many of the hurdles can be overcome quickly, but we need policy makers and regulators to share this sense of urgency. Private sector companies are willing to invest in the energy transition, and move quicker if allowed, as Iberdrola has already demonstrated. We have the ambition. We have the technology. We have access to financial markets. We just need clear policies and stable and coherent regulations.” Speaking about Iberdrola’s role in driving energy transition, he said, “Today, two-thirds of our business is outside Spain, whereas 20 years ago that percentage barely reached 1%. We are also a larger and stronger company. In the last two decades we have multiplied our size by six times, becoming the company with highest weight on the Spanish stock exchange, the largest utility in Europe and one of the four largest worldwide. “Our significant investment effort has also led us to be a global leader in clean energy. Our CO2 emissions of just 60 grams per kWh in Europe are almost four times lower than our competitors, having multiplied our renewable capacity by more than four times over this period. “Looking forward, we are increasing our investments even more to accelerate the transition.” Galán said, “Beyond the $130bn invested in the last 20 years, we are now planning to dedicate $150bn more in just 10 years, doubling current investment levels. We will continue investing in renewable technologies, with a new focus on offshore wind, a technology we are leading worldwide. We will also invest in transmission and distribution grids, in energy storage, and now also in green hydrogen and other green industrial products. “The opportunities presented by the energy transition are now becoming more and more global. This will allow us also to expand in new geographies, beyond the US, UK, Continental Europe and Latam. We are already investing heavily in Australia and positioning ourselves in Asian countries like Japan.” Innovation, he said is the “most important tool” for progress. It is the main driver for more sustainability, more efficiency and more competitiveness. “This is why it has become a strategic focus for us,” Galán said and noted, “Our innovation centre in Qatar is a case in point. That's why we recently announced a significant expansion of our innovation activities in the country, focused on digitalisation and smart grids, renewable energy integration and energy efficiency. We are aligning our R&D&I capabilities with the needs of industry on Qatar, but as a critical innovation centre for us globally, concepts developed here can be applied in other countries around the world where we are supporting the energy transition. “Our hub in Qatar has been helping to drive innovation in our business since 2016, and this will continue for many years to come. We aim to keep strengthening our support to develop local engineering talent and increasing our engagement with the Qatar innovation ecosystem – including universities, technology centres and start-ups.”

Dolphin Energy's plant (gas processing and compression facilities) at Ras Laffan in Qatar
Qatar
Dolphin Energy crosses milestone; marks 15 years of successful operations

* Dolphin Gas Project was launched in 1999 with a vision to drive and develop energy cooperation across the GCC. After nine years of planning, construction and development, first gas flowed from Qatar to the UAE on July 10, 2007 Dolphin Energy Limited is marking 15 years of operations after recording the first gas flow from Qatar to the UAE on July 10, 2007. Commenting on the achievement, Dolphin Energy’s Chief Executive Officer, Obaid Abdulla al- Dhaheri said, “This is an important milestone in our history and one that could not have been possible without the vision and support of our leaders who gave us the encouragement and will to succeed, in addition to the support of our governments, our shareholders, our customers, and the efforts of our employees.” Dolphin Energy’s major strategic initiative, the Dolphin Gas Project, involves the production and processing of natural gas from Qatar’s North Field, and transportation of the dry gas by sub-sea export pipeline from Qatar to the UAE, which began in July 2007. The Dolphin Gas Project was launched in 1999 with a vision to drive and develop energy cooperation across the GCC. After nine years of planning, construction and development, first gas flowed from Qatar to the UAE on July 10, 2007. Full throughput of natural gas was reached in February 2008 and volumes of gas started flowing to Oman in October of the same year. In the 15 years since operations started, the project has achieved the following: 10.7tn standard cubic feet of natural gas delivered, and 485mn barrels of condensate sold to international markets. In addition, 11.9mn metric tons of propane, 6.9mn metric tons of butane, 3.8mn metric tons of sulfur and 18.4mn metric tons of ethane have been produced. “These successes demonstrate the strong spirit of partnership and collaboration with QatarEnergy, which has been a strong and unstinting advocate of the Project since inception. To this day, they continue to be a vital source of support,” al-Dhaheri said. He noted, “We will continue to play our role in supporting energy security across the GCC. We will ensure we produce natural gas in the safest possible way, deliver on our commitment to sustainability, and extend our adoption of digitalisation, which is proving to be extremely effective. “Beyond the operational aspects of the project, the company has used training and development to recruit and develop its employees with an emphasis on nationalisation. Today we are proud that all executive positions in the company in both the UAE and Qatar are held by nationals and that we have reached 71% Emiratization and 30% Qatarisation,” al- Dhaheri explained. Dolphin Energy has also sponsored and supported many important community programs and initiatives in the UAE and Qatar. With a focus on environmental protection, societal growth, and development over the last 15 years the company has forged important alliances with The Environment Agency Abu Dhabi, Ras Laffan Community Outreach Programme and the Qatar Ministry of Environment. Further collaboration has been made with other institutions including Qatar University, Texas A&M University and Emirates Foundation, among many others. Expanding on the company’s commitments to the environment and its communities, Ali Alrahbi, general manager (Qatar) said, “A strong commitment to the environment and the communities where we operate has always run parallel with our operational obligations. We have been able to develop a strong track record because our actions have focused on protecting the environment, correct ethical conduct, social responsibility, and growth. “Our decarbonisation programme, which was launched in 2012 to reduce our carbon footprint and implement energy efficiency initiatives, is more important now than ever and the long-term roadmap is helping strive for carbon neutrality,” Alrahbi explained. Dolphin Energy also continues to play a leading role in the development of the sustainability agenda in both the UAE and Qatar. Its sustainability strategy is aligned to supporting the National Visions of both countries and the company engages with stakeholders that help drive social, environmental, and economic development. The company has reported its sustainability performance every year since 2010 and is about to unveil details of its 13th report in August. In this time, Dolphin Energy has received four awards for ‘Best Sustainability Report’ from the Abu Dhabi Sustainability Group. Once again, the report will demonstrate how Dolphin Energy has aligned its activities against the 17 United Nations Sustainable Development goals, GRI standards, Oil and Gas Sector Disclosures and the IPIECA oil and gas industry guidance on voluntary sustainability reporting. “We can be proud of our achievements and with how far we have come. As we look ahead, our focus is firmly fixed on ensuring the safe, reliable delivery of natural gas for our customers, the development and wellbeing of our people and support for the communities in which we operate,” Alrahbi concluded.

Ignacio Gal?n learns about project updates being delivered by the team at the Iberdrola Innovation Middle East Research and Innovation Centre at QSTP in Doha in March this year.
Business
Qatar has strong focus on clean energy technologies: Iberdrola chairman

  * Iberdrola Innovation Middle East Research and Innovation Centre at QSTP is the 'cornerstone' of Iberdrola’s innovation globally, noted Ignacio Galán   Qatar has strong resources for solar energy and Qatar National Vision 2030 provides “encouragement” with targets to increase renewable energy in the generation mix, said Ignacio Galán, chairman and CEO of Iberdrola, world’s top producer of wind power, and one of the biggest global electricity utilities. “And now green hydrogen is also a major opportunity going forward. We believe that clean energy technologies have a role to play in every country and Qatar is showing that it wants to keep increasing its renewable capacity,” Galán said in an exclusive interview with Gulf Times. Iberdrola is a global leader in renewable energy, but also invests heavily in power networks and energy storage, he said. This, he noted is because sustainable integrated energy systems require these three building blocks. “We have invested $130bn globally in these three areas over the last twenty years and this has led us to become the largest utility in Europe and one of the four largest worldwide. In this journey, the support of our largest shareholder - Qatar Investment Authority - and its leadership team has been absolutely essential from HE Ahmad al-Sayed, who was CEO back in 2011, to his successor, Sheikh Abdullah bin Mohamed bin Saud al-Thani, and of course, to Mansoor bin Ebrahim al-Mahmoud,” Galán told Gulf Times. Following this global approach, he said: “We invest in different countries in accordance with their resources and energy policy. In Qatar, we started our activities almost two decades ago in the gas business, and in 2010 we built for Kahramaa the Mesaieed power plant, one of the largest in the country at the time. “We have also collaborated extensively with Kahramaa in the networks business, and in 2018 we opened Iberdrola Innovation Middle East Research and Innovation Centre at Qatar’s Science and Technology Park. Less than two months ago, we signed an agreement with HE the Minister of Commerce and Industry to expand this centre on the occasion of the visit of His Highness the Amir to Madrid.” Galán noted that this centre is the “cornerstone” of Iberdrola’s innovation globally. “At our centre in Al Rayyan, together with Qatari institutions, we are creating new ideas for wind and solar energy, smart grids and digital customer solutions that we use globally. I am sure that many of them can be useful for Qatar, given the leadership taken by the country with Qatar’s National vision 2030.” On what it meant for a company to be a global leader when it comes to Environmental, Social, and Governance (ESG), Galán said: “Our ESG strategy has unanimous support from our shareholders. Nearly three-quarters of our capital participated at our 2022 Annual Shareholders Meeting in June, and an overwhelming 99.93% of those registered a positive vote in relation to our governance and sustainability management.” He noted: “The reason for this is that ESG factors are an integral part of Iberdrola's strategy. In fact, we had a clear focus on environmental, social and governance aspects long before this concept was created. We at Iberdrola believe in social market economy, in the role that all social agents -and of course companies- have to contribute to progress in our societies. In fact, we created the concept of “social dividend” many years ago and included it in our bylaws with the same importance as financial dividend, and we deliver and report on it each year. Our purchases, our job creation, our tax contribution, our emissions reduction… all these aspects are part of our social dividend.” Now that the focus on ESG has become so universally spread, Galán stressed “we need to make sure we have quality and homogeneous reporting standards across all industries. To be serious about ESG principles, companies need be very clear and transparent on their goals and to report on their delivery. “In all my 21 years leading Iberdrola we have produced detailed and robust reports on our ESG performance. We have analysed the data to see where improvements can be made, and then we have delivered those improvements. We are now widely recognised for our ESG performance by a host of external indices and analysts.”

Gulf Times
Business
Qatar ranks among ‘global top 15’ across all measures of 5G speed: Report

Qatar has ranked among the ‘global top 15’ across all measures of 5G speed, placing 7th for average 5G Download Speed (275.9Mbps), 8th for 5G Peak Download Speed (735Mbps) and 13th for 5G Upload Speed (30.8Mbps), according to a report by Opensignal, an independent analytics company. In this latest definitive analysis of 5G worldwide leaders, there are many new entrants in the top 15 markets across different measures of 5G mobile network experience compared with the last 5G benchmark in March. South Korea continues to top the global leaderboard with the highest average 5G Download Speed (432.7Mbps) again and also holding on to the top 5G Games Experience slot (89.6). Nordic markets continue to do well in multiple categories, as do Gulf Co-operation Council (GCC) markets Kuwait, Qatar, Saudi Arabia and the UAE. Impressively for such a large geography, the USA continues to rank very highly on both 5G Availability (25.2%) — the time users spend connected to 5G — and on 5G Reach (6.0), which quantifies the proportion of locations where users saw 5G service. Plus, the Philippines continues to see a tremendous uplift with the shift from 4G to 5G, topping the 5G Video Experience uplift category with a 79% increase in its score. Bulgaria enters the table in six categories, ranking especially highly on 5G Download Speed (316.8Mbps), although South Korea tops the table. Puerto Rico is strong on 5G Availability, 5G Reach and Video Experience uplift but misses out from a top 15 market spot elsewhere. And, despite new spectrum scarcity, Singapore has become a global top 15 market for 5G Download Speed. Malaysia jumps in with high rankings in all three 5G speed categories as well as 5G Games Experience. However, it’s important to understand the different state of 5G roll outs across markets, 5G is still very new in Malaysia with relatively few 5G users. To date, only two operators have signed up to deploy 5G on the controversial single wholesale network. South Korea holds onto the global 5G speed crown ranking top for 5G Download Speed. Where in our last 5G benchmark in March only three markets surpassed the 300Mbps mark for average 5G download speeds, now there are six. South Korea, Sweden and the UAE have been joined by Bulgaria, Norway and Malaysia — although Malaysia is something of an anomaly because of the limited 5G uptake to date (see above) and the 5G experience there will likely drop dramatically as more users and more operators embrace 5G. Singapore also enters the top 15 for global 5G Download Speed with average speeds of 246.1Mbps. This is impressive given the spectrum challenges that Singapore has faced. Local rivalries continue in the 5G Download Speed rankings. New Zealand maintains its top 15 rank but Australia drops off the table. While Saudi Arabia continues to feature, the UAE and Qatar both still rank higher, and all three beat Israel, which is no longer among the top 15 worldwide. Opensignal noted that while users have been embracing the 5G experience in increasingly large numbers and operators have been deploying the initial versions of 5G, the industry has been looking to what’s next. “5G release 16 and 17 are now final and will be deployed over the next couple of years, while work on Release 18 is already advancing fast. As with 4G/LTE, there will be new marketing terms used to describe these upcoming 5G standards. “Again, as we saw with the terms “LTE Advanced” and “LTE Advanced Pro” in the second phase of the 4G era we will likely see vendors and operators market these enhanced versions of 5G using the phrase “5G Advanced”. However, the most important test will continue to be the extent to which these new flavours of 5G improve — or actually advance — the real-world experience of users. Opensignal will continue to analyse 5G using a single independent global methodology that enables straightforward comparisons of 5G’s benefits.”

Gulf Times
Business
Qatar accounts for lion's share of Middle East, Asia-Pacific LNG trade flow in 2021: IGU

* Qatar exported 28.2mn tonnes of the 37.1mn tonnes of LNG traded between Middle East and Asia-Pacific last year   Qatar accounted for a lion's share (28.2mn tonnes) of the 37.1mn tonnes of LNG traded between Middle East and Asia-Pacific in 2021, according to International Gas Union (IGU). Globally, Middle East and Asia-Pacific had the third largest LNG trade flow last year, IGU said in its ‘World LNG report 2022’. There were also significant flows from the Middle East to Asia (34.5mn tonnes), mostly driven by volumes from Qatar and the UAE to India, China and Pakistan. The largest global LNG trade route continues to be intra-Asia Pacific trade (81.9mn tonnes), driven mainly by continued growth in exports from Australia to Japan (26.8mn tonnes), South Korea (9.7mn tonnes) and Chinese Taipei (6.3mn tonnes). Most of the remaining supply out of the Asia Pacific region ended up in Asia in 2021, as was the case in 2020, IGU noted. The region saw the second-largest LNG trade flow in 2021 (49mn tonnes), with 31mn tonnes going from Australia to China alone. African exports mostly flowed to Europe and Asia (23.6mn tonnes and 11.3mn tonnes respectively) where exports increased by +1.2mn tonnes and +1.7mn tonnes respectively, due to increased exports from Egypt, Algeria, Cameroon and Equatorial Guinea. European imports from Africa had to compete with imports from the US, which meant a reduction in flows. While India continued to be a large customer of African LNG in 2021, flows from Africa to India decreased by 2.4mn tonnes compared to 2020, with India taking more volumes from Qatar instead, IGU said. Imports into Asia Pacific from Africa increased, however, to 5.4mn tonnes in 2021 from 3.7mn tonnes in 2020, mostly driven by an increase in flows from Egypt into Japan (+0.1mn tonnes), South Korea (+0.1mn tonnes), Chinese Taipei (+0.1mn tonnes) and Singapore (+0.3mn tonnes). This coincided with the restart of the Damietta LNG plant in Egypt in March 2021, which led to an increase in export volumes from Egypt to Asia Pacific. Imports to Latin America increased significantly last year, with Brazil being the key driver. The largest increase in LNG flows into Latin America came from North America (+126.8%, +6.5mn tonnes) and the Middle East (+159.2%, +1.0mn tonnes). Flows from North America mostly went into Europe (21.5mn tonnes, up from 18.5mn tonnes in 2020) and Asia Pacific (18.2mn tonnes, up from 12.7mn tonnes in 2020). A large share of US exports into Europe went to Spain (3.8mn tonnes), the Netherlands (3.2mn tonnes), the UK (2.9mn tonnes) and France (2.9mn tonnes). Most of the additional exports from the US into Asia Pacific went into South Korea (8.7mn tonnes) and Japan (7.1mn tonnes) due to favourable netbacks in the winter months of 2021. Asia Pacific (12.7mn tonnes in 2020 to 18.2mn tonnes in 2021) became the largest importer of North American LNG last year, overtaking Europe (18.5mn tonnes in 2020 to 21.5mn tonnes in 2021). The majority of Russian exports were shipped to Europe (13.0mn tonnes in 2021, an increase from 12.6mn tonnes in 2020) and Asia Pacific (11.5mn tonnes, up from 10.7mn tonnes in 2020). The top three largest offtakers of Russian LNG in 2021 were Japan (6.6mn tonnes), China (4.7mn tonnes) and France (3.6mn tonnes). Moving forward, export from Russia to Europe are expected to decrease as the European Union’s Repower Europe plan seeks to cut dependency on Russian gas by two-thirds this year and end all fossil fuel imports by 2027. Europe is poised to diversify its LNG imports, increasing flows from the Middle East, North America and Africa.

A contractor installs 5G cellular equipment on a light pole as a Delta Air Lines airplane lands at Los Angeles International Airport. The global aviation industry continues to voice concerns over the roll out of 5G networks in many countries including the United States due to the potential interference with aircraft instrument systems.
Business
Airlines fear 5G services may create enormous disruption to aviation

Beyond the Tarmac The global aviation industry continues to voice concerns over the roll out of 5G networks in many countries including the United States due to the potential interference with aircraft instrument systems. The fifth-generation wireless technology, widely known as 5G will offer mobile phone users superfast connections and is expected to hasten the digitisation of many industries. 5G promises to deliver ultrafast Internet speeds, extra bandwidth and increased connectivity. Hence, telecommunication companies around the world are racing to roll out the service. They have spent billions of dollars on upgrading their networks to deploy the 5G technology, which brings much faster Internet services and greater connectivity. “Next-generation 5G technologies will be the backbone of our economic future," US Federal Communications Commission chairwoman Jessica Rosenworcel points out. She noted the deployment can safely co-exist with aviation technologies in the United States, just as it does in other countries around the world. But the aviation industry seems to be sceptical. Airlines and their global body IATA warn that the technology could interfere with sensitive equipment, notably altimeters, which use radio frequencies to measure how high an aircraft is flying and provide data to critical equipment including the autopilot. They are particularly crucial for landings in inclement weather. 5G networks in the US operate using frequencies in the same radio spectrum, known as the C-band. When deployed next to runways, the 5G signals could interfere with the key safety equipment that pilots rely on to take off and land in inclement weather, they argued. “The aviation industry believes this is a safety problem. The Federal Aviation Administration has cleared less than half of the domestic commercial aircraft fleet to perform low-visibility landings at many airports where the 5G C-band will be deployed,” The Financial Times says. The International Air Transport Association recently urged governments to work closely with the aviation industry to ensure that aviation and incumbent aviation safety systems can safely co-exist with new 5G services. While IATA recognises the economic importance of making spectrum available to support next generation commercial wireless telecommunications, maintaining current levels of safety of passengers, flight crews, and aircraft must continue to be one of governments’ highest priorities. Before deciding on any spectrum allocations or conducting spectrum auctions, the global body of airlines called for governments to ensure close coordination and mutual understandings between national spectrum and aviation safety regulators so that each frequency allocation/assignment is comprehensively studied and is proven not to adversely impact aviation safety and efficiency. Robust testing in co-ordination with aviation subject matter experts is critically important in providing necessary information. Airlines operating to and from and within the US continue to contend with the effects of the rollout of 5G, including a pending airworthiness directive from the Federal Aviation Administration requiring them to retrofit or upgrade radio altimeters at their own expense to enable the respective aircraft to continue to utilise CAT II and CAT III low-visibility approaches at many US airports where 5G C-Band service is currently or will be deployed in future. The timely availability of upgraded altimeters is a concern, as are the cost of these investments and the lack of certainty regarding the future spectrum environment, IATA noted. Furthermore, some 19 additional telecommunications companies are scheduled to deploy 5G networks by December 2023. The International Civil Aviation Organisation (ICAO) and the International Telecommunications Union (ITU) both have recognised and reminded their member states and administrations of the importance of ensuring that existing aviation systems and services are free from harmful interference. This will become even more critical as more and more spectrum is being allocated to new generation telecommunications services. “We must not repeat the recent experience in the United States, where the rollout of C-band spectrum 5G services created enormous disruption to aviation, owing to the potential risk of interference with radio altimeters that are critical to aircraft landing and safety systems. “In fact, many countries have successfully managed to facilitate the requirements of 5G service providers, while including necessary mitigations to preserve aviation safety and uninterrupted services. These include, for example, Brazil, Canada, France and Thailand,” said Willie Walsh, IATA’s director general. Walsh noted FAA’s unilateral decision to require airlines to replace or upgrade their existing radio altimeters, which are approved by both the FAA and the US Federal Communications Commission – by July 2023 is “deeply disappointing and unrealistic.” The FAA has not even approved or certified all the safety solutions that it will require, nor have systems providers been able to say with certainty when the equipment will be available for much of the fleet. “So how can there be any confidence in the timeline,” Walsh asks. “Furthermore, FAA can provide no guarantee that airlines will not have to carry out further upgrades to radio altimeters as even more powerful 5G networks are deployed in the near future. Safety is our highest priority, but it cannot be achieved with this rushed approach. The FAA needs to continue working with all stakeholders collaboratively and transparently, including the FCC and the telecom sector, to define solutions and deadlines that reflect reality,” Walsh noted. The airline industry is of the view the current 5G rollout plan, particularly by the US, will have a “devastating” impact on aviation. This, it said will “negatively” affect millions of passengers, thousands of flights, and much-needed goods and cargo travelling through some of the largest airports in the country annually.