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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.
Oman Air CEO Abdulaziz al-Raisi and oneworld CEO Rob Gurney sign the agreement for Oman Air to join oneworld on the sidelines of IATA Annual General Meeting in Doha.
Business
Oman Air to join oneworld; Qatar Airways sponsors its entry into global alliance

Oman Air will join the oneworld alliance, further strengthening the premier airline alliance’s leading position in the Middle East. Based in Muscat, Oman Air was elected as a oneworld member designate in Doha by the oneworld governing board, comprising the chief executives of all oneworld member airlines. oneworld member Qatar Airways will act as sponsor for Oman Air’s entry into oneworld, providing guidance and support as the airline integrates into the alliance. Oman Air is expected to be implemented into oneworld in 2024, following which it will provide the full range of oneworld benefits to customers travelling on its flights. Members of Oman Air’s ‘Sindbad’ frequent flyer programme will be able to earn and redeem miles on all oneworld member airlines, with top tier members receiving additional benefits including lounge access when travelling with other oneworld members. Oman Air’s entry into oneworld will provide even more flights and destinations to customers planning global travel across the alliance’s members, making oneworld the only global airline alliance with three members in the Middle East after Qatar Airways and Royal Jordanian. Oman Air’s joining will add new destinations to the oneworld network including Duqm and Khasab in Oman and Chittagong (Bangladesh). oneworld Emerald, oneworld Sapphire and premium cabin customers will also gain access to three Oman Air lounges at Muscat, Salalah and Bangkok. Launched in 1993, Oman Air is the national carrier of the Sultanate of Oman. From its roots as a domestic airline, it has transformed into an international carrier serving 41 destinations in more than 20 territories. It operates a modern fleet of more than 40 aircraft comprising Boeing 737s, 787s and Airbus A330s. Oman Air operates to five oneworld member airline hubs – Amman, Colombo, Doha, Kuala Lumpur and London Heathrow – and already codeshares with four oneworld member airlines: Malaysia Airlines, Qatar Airways, Royal Jordanian and SriLankan Airlines. Joining oneworld will pave the way for additional codeshare opportunities, further enhancing global connectivity across the alliance’s network. Following its entry into oneworld, Oman Air will be the third new member of the alliance in five years, marking another achievement in oneworld’s rapid growth. Royal Air Maroc joined the alliance in April 2020, adding oneworld’s first full member in the African continent. This was followed by Alaska Airlines in March 2021, making oneworld the only global airline alliance with two members in the United States. oneworld governing board Chairman and Qatar Airways Group Executive HE Akbar al-Baker said: “Today marks a new milestone in oneworld, as our friends at Oman Air become a member elect of our award-winning alliance. Passengers of Oman Air will be offered a seamless travel journey, connecting them to more than 900 destinations across 170 countries. As the chairman of oneworld, we look forward to welcoming Oman Air into our alliance as they will bring great benefits, allowing passengers to discover not just a new member with an excellent reputation, but a beautiful country.” oneworld CEO Rob Gurney said: “We are delighted that Oman Air has chosen oneworld as its global airline alliance partner. With its network in Muscat and award-winning customer service, Oman Air will reinforce our position as the premier airline alliance for global travellers. As the global travel industry continues to recover from the pandemic, the significant growth of oneworld in recent years demonstrates how important alliances and partnerships will continue to be.” Oman Air CEO Abdulaziz al-Raisi said: “Oman Air's admittance into oneworld represents a defining moment in our journey to provide passengers with greater travel options through our developing partnerships and alliances. We're delighted to be joining the world's foremost airline alliance at a time when demand for travel is on the rise. “We look forward to welcoming oneworld members onboard Oman Air to experience the height of Omani hospitality and all that the Sultanate of Oman has to offer in terms of history, culture and natural beauty.”    

The four partners of QatarEnergy in the prestigious project were chosen through a competitive process that started in 2019, which will expand Qataru2019s LNG export capacity from the current 77mn tonnes per year (tpy) to 110mn tpy by 2026.
Business
QatarEnergy joins hands with four global majors in North Field LNG expansion project

* QatarEnergy's four partners in the prestigious project were chosen through a competitive process that started in 2019, which will expand Qatar’s LNG export capacity from the current 77mn tonnes per year (tpy) to 110mn tpy by 2026     The $29bn North Field East (NFE) expansion, the single largest project in the history of global LNG industry, has seen QatarEnergy joining hands with four global energy companies – TotalEnergies, ExxonMobil, Eni and ConocoPhillips. The four partners of QatarEnergy in the prestigious project were chosen through a competitive process that started in 2019, which will expand Qatar’s LNG export capacity from the current 77mn tonnes per year (tpy) to 110mn tpy by 2026. While it is Eni’s first entry ever into Qatar’s upstream sector, the three other global energy companies - TotalEnergies, ExxonMobil, and ConocoPhillips - have been QatarEnergy’s partners in the energy industry for many years. A highlight of the partner selection process is that QatarEnergy received offers for double the equity available, underscoring the high-quality investment case of the NFE project, thanks to its economic competitiveness, financial resilience, and also its unique environmental features. North Field East (NFE) project will produce significant quantities of ethane, LPG, condensate and helium besides liquefied natural gas, according to HE the Minister of State for Energy Saad bin Sherida al-Kaabi. Addressing a press conference at the QatarEnergy he said the expected production of LNG from the nearly $29bn project would be 32.6mn tonnes annually. The production of ethane from the project would amount to 1.5mn tonnes per year (tpy), LPG 4mn tpy, 250,000barrels per day of condensate and 5,000 tpy of helium. LNG is among the cleaner fossil fuels and has considerable demand globally. LPG, condensate and helium too have considerable global demand. The multi-billion dollar North Field expansion, the largest LNG development in global history, will generate substantial revenues for Qatar and hugely contribute to the country’s GDP, al-Kaabi noted. The North Field expansion, comprising of North Field East (NFE) and North Field South (NFS) will provide significant benefits for all sectors of the Qatari economy during the construction phase and beyond, al-Kaabi said in reply to a question by Gulf Times at a media event at QatarEnergy headquarters recently. NFE will expand Qatar’s LNG export capacity from the current 77mn tonnes per year (MTPY) to 110MTPY (in the first phase expected to be completed by 2025/26). Four trains will be part of the North Field East (NFE) and two trains will be part of North Field South (NFS) project. QatarEnergy would announce partners for North Field South (NFS) expansion by the end of the year, al-Kaabi noted. NFS project will further increase the Qatar’s LNG production capacity to 126mn tonnes per year by 2027. With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains (with a capacity of 8MTPY each) and associated offshore and onshore facilities. The NFS project was initiated as a result of QP’s successful onshore appraisal activities in the North Field and targets the monetisation of gas from the southern sector of the North Field. The North Field expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77mnn tonnes per year to 126MTPY by 2027. Four trains will be part of the North Field East and two trains will be part of North Field South project. Stressing the importance of the private sector, the minister said Qatar’s private sector will have a huge opportunity to contribute to the project. “We will be announcing four major projects, three in gas and one in petrochemicals. Over the next seven years, we will be investing billions of dollars into many projects including one on gas-fired electricity generation,” al-Kaabi said. He said after the current phase of the construction activities, the North Field expansion and other QatarEnergy projects will keep driving the local economy. Already, QatarEnergy has embarked on the largest LNG shipbuilding programme as part of the North Field expansion project. “We have awarded a series of key offshore and onshore EPC contracts that are crucial for its timely execution,” al-Kaabi noted recently. He said QatarEnergy will be working with its reliable business partners from China and Japan in the shipbuilding programme. In April, QatarEnergy signed a series of time-charter parties (TCPs) with a subsidiary of Mitsui O.S.K Lines (MOL) for the long-term charter and operation of four LNG ships, constituting the first batch of TCPs awarded under QatarEnergy’s massive LNG shipping programme. Concurrent with the signing of the TCPs, back-to-back LNG carrier shipbuilding contracts were signed between MOL and Hudong-Zhonghua Shipbuilding Group (Hudong), a subsidiary of China State Shipbuilding Corporation (CSSC), for the construction of four new LNG carriers to serve QatarEnergy’s LNG growth projects and future fleet requirements.    

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Business
IATA urges governments to ensure safe rollout of 5G networks

The International Air Transport Association (IATA) 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. The call came as the industry was meeting in Doha at the three-day 78th IATA Annual General Meeting, which concluded yesterday. “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. Before deciding on any spectrum allocations or conducting spectrum auctions, IATA called for governments to ensure close co-ordination 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. Measures that have already been used by some governments include: Ensure thorough testing, sufficient spectrum separation between 5G C-band deployments and 4.2-4.4GHz frequency band used by existing radio altimeters. Clearly codify and enforce the maximum power limit for 5G C-band transmission and downward tilting of 5G antennae particularly in the vicinity of flightpaths. Establishment of sufficient 5G C-band prohibition and precautionary zones around airports. IATA noted that 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/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. Furthermore, 19 additional telecommunications companies are scheduled to deploy 5G networks by December 2023. “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. 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,” said Walsh. 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.    

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Business
30bn litre tipping point possible in global SAF production by 2030: IATA

The production of sustainable aviation fuels could reach 30bn litres by 2030, which would be a tipping point for SAF production and utilisation, the International Air Transport Association (IATA) said on Tuesday. At its 78th AGM that concluded in Doha Tuesday, IATA called upon governments to urgently put in place large-scale incentives to rapidly expand the use of sustainable aviation fuels as aviation pursues its commitment to achieving net zero carbon emissions by 2050. To fulfil aviation’s net zero commitment, current estimates are for SAF to account for 65% of aviation’s carbon mitigation in 2050. That would require an annual production capacity of 449 billion litres. Investments are in place to expand SAF annual production from the current 125mn litres to 5bn by 2025. With effective government incentives, production could reach 30bn litres by 2030, which would be a tipping point for SAF production and utilisation. “Governments don’t need to invent a playbook. Incentives to transition electricity production to renewable sources like solar or wind worked. As a result, clean energy solutions are now cheap and widely available. With similar incentives for SAF, we could see 30bn litres available by 2030. Though still far from where we need to be, it would be a clear tipping point towards our net zero ambition of ample SAF quantities at affordable prices,” said Willie Walsh, IATA’s Director General. In 2021, irrespective of price (SAF is between two and four times the price of conventional jet fuel), airlines have purchased every drop of the 125mn litres of SAF that was available. And already more than 38 countries have SAF-specific policies that clear the way for the market to develop. Taking their cue from these policy measures, airlines have entered into $17bn of forward-purchasing agreements for SAF. Further investment in production needs support from the right policies. This would boost supply and drive down costs. Electricity production through solar or wind power faced similar hurdles as these technologies replaced fossil fuels. With effective policy incentives, both are now affordable and widely available. By applying similar incentive-based policies to SAF, governments can support global SAF production to reach 30bn litres by the end of the decade. This would be a tipping point as it would send a clear signal to the market that SAF is playing its intended long-term role in aviation’s decarbonisation and encourage investments to drive up production and drive down the price. The market for SAF needs stimulation on the production side. The United States is setting an example for others to follow. Its SAF production is expected to reach 11bn litres in 2030 on the back of heavy government incentives. Under Europe's ‘Fit for 55’ initiative, the EU is planning to mandate that airlines uplift 5% SAF at every European airport by 2030. Decentralising production will delay the development of economies of scale. And forcing the land transport of SAF will reduce the environmental benefit of using SAF. Hydrogen and electrically powered aircraft are part of aviation’s plan to achieve net zero emissions by 2050, but they are likely to be limited to short-haul routes. SAF is the proven solution for long-haul flying. “Hydrogen and/or electric propulsion systems will most likely be available for short haul commercial flights by 2035, but the majority of emissions come from long-haul widebody flights and to tackle these emissions, SAF is the only proven solution. We know it works, and we need to double down our efforts to get all actors of the industry on board, including governments, to increase production, availability, and uptake” said Sebastian Mikosz, IATA’s senior vice president (Environment and Sustainability).    

HE Akbar al-Baker
Qatar
Qatar Airways ‘fully geared up’ to meet passenger rush during FIFA World Cup: al-Baker

Qatar Airways is fully geared up to meet the rush of travellers during the FIFA World Cup Qatar 2022, which the country is hosting later this year, Group Chief Executive HE Akbar al-Baker has said. “We are opening a way for airlines, where we have investments, to operate in order for us to release the capacity for deployment to some other destinations during the key global sporting event," he told reporters on the sidelines of the 78th IATA AGM in Doha on Tuesday. HE al-Baker continued, “We are also encouraging our regional friends to start having shuttles to Doha International Airport (old airport) during the World Cup. “A few weeks ago, Qatar Airways tied up with flydubai, Kuwait Airways, Oman Air and Saudia to connect FIFA World Cup Qatar 2022 match ticket holders to Doha via Match Day Shuttle Flights." By choosing to book a Match Day Shuttle flight, fans will arrive in the morning and depart in the evening, with no hotel accommodation required. Additionally, a no check-in baggage policy will “simplify an easy-in, easy-out travel itinerary” for passengers. HE al-Baker said Qatar Airways would cut flights to destinations that are irrelevant to the FIFA World Cup, so that the national airline could increase flights to countries taking part. “Some of Qatar Airways' routes to countries not involved in the 32-nation tournament would be halted and others reduced,” he said. Earlier, HE al-Baker told Gulf Times that new international airlines have already applied for scheduled flights during the winter season to start operating to Doha. He, however, did not name them. “Wait… and you will get to know. Everyone wants to come,” he said. HE al-Baker also said football fans from countries outside of the GCC will be arriving on both scheduled and charter flights. “Depending on the capacity of the runway, they will land either at Hamad International or Doha International airports. Some will land at HIA and some at Doha,” he said. More than 20,000 fans could come in each day on shuttle flights from neighbouring GCC countries of Saudi Arabia, the UAE, Kuwait and Oman. The tournament will be held across eight world-class stadiums which are designed to inspire the various symbols of Qatari and Arab culture.    

HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also President and CEO of QatarEnergy, and Darren Woods, Chairman and CEO of ExxonMobil, at the agreement signing ceremony in Doha. PICTURE: Thajudheen.
Business
QatarEnergy selects ExxonMobil as partner in NFE project

QatarEnergy has selected ExxonMobil as a partner in the nearly $29bn North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. The partnership agreement was signed at QatarEnergy’s headquarters in Doha yesterday by HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also President and CEO of QatarEnergy, and Darren Woods, Chairman and CEO of ExxonMobil. The agreement stipulates a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ExxonMobil will hold the remaining 25% interest. The new JV will own 25% of the entire NFE project, which includes four mega LNG trains with a combined LNG capacity of 32mn tonnes per year. In his remarks during the ceremony, al-Kaabi said: “Today, we are signing a partnership agreement with ExxonMobil, our strategic and long-term partner, with whom we have enjoyed successful and fruitful relations in Qatar and across the globe. This is primarily due to the mutual trust and confidence between both parties, and to the Qatar’s safe and stable investment climate. “We look forward to working closely with ExxonMobil to implement this world-scale project, and to live up to our commitment to power lives with cleaner energy in every corner of the world for a better tomorrow for all.” Al-Kaabi said: “In addition to many energy projects in Qatar, we work with ExxonMobil in the upstream exploration sector in many parts of the world. We are also working closely together on the implementation of the Golden Pass LNG export project in Texas, as QatarEnergy implements its strategy to expand its portfolio in energy projects in Qatar and beyond.” Al-Kaabi concluded his remarks by saying: “I would like to thank His Highness the Amir, Sheikh Tamim bin Hamad al-Thani for his wise leadership and unwavering support to Qatar’s energy sector.” Woods said in comments at the ceremony: “ExxonMobil’s scale, unique capabilities, and expertise will contribute to enhancing the North Field’s LNG production capacity, helping to meet the world’s growing demand for energy while supporting a lower-emissions future.” “This is an important milestone in our longstanding relationship with Qatar and QatarEnergy, which continue to advance their global LNG leadership,” Woods concluded. The NFE project will expand Qatar’s LNG export capacity from the current 77mn tonnes per year to 110mn tpy. It is expected to start production in 2026, and employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible.    

A general view shows the opening of the 78th global airline industry body International Air Transport Association (IATA) annual meeting in Doha. The IATA called for governments to adopt a long term aspirational goal to decarbonise aviation at the 41st Assembly of the International Civil Aviation Organisation (ICAO) later this year.
Business
ICAO must adopt long-term aspirational goal to decarbonise aviation: Walsh

The International Air Transport Association (IATA) called for governments to adopt a long term aspirational goal to decarbonise aviation at the 41st Assembly of the International Civil Aviation Organisation (ICAO) later this year. The call came at the 78th IATA Annual General Meeting (AGM) and World Air Transport Summit (WATS) in Doha, where airlines are mapping out the pathway to the industry’s commitment to achieve net zero emissions by 2050 in line with the Paris Agreement’s 1.5°C goal. “The decarbonisation of the global economy will require investment across countries and across decades, particularly in the transition away from fossil fuels. Stability of policy matters. At the IATA AGM in October 2021, IATA member airlines took the monumental decision to commit to achieving net zero emissions by 2050. As we move from commitment to action, it is critical that the industry is supported by governments with policies that are focused on the same decarbonisation goal,” said Willie Walsh, IATA’s Director General. “Achieving net zero emissions will be a huge challenge. The projected scale of the industry in 2050 will require the mitigation of 1.8 gigatons of carbon. Achieving that will require investments across the value chain running into the trillions of dollars. Investment at that magnitude must be supported by globally consistent government policies that help deliver the decarbonisation ambition, take into account differing levels of development, and do not distort competition,” said Walsh. “I am optimistic that governments will support the industry’s ambition with an agreement on a Long Term Aspirational Goal at the upcoming ICAO Assembly. People want to see aviation decarbonise. They expect the industry and governments to be working together. The industry’s determination to achieve net zero by 2050 is firm. How would governments explain the failure to reach an agreement to their citizens?” said Walsh. Data from a recent IATA survey shows that improving the environmental impact of airlines is seen as a post-pandemic priority for passengers, with 73% of people polled wanting the aviation industry to focus on reducing its climate impact as it emerges from the Covid crisis. Two-thirds of people polled also believe that taxing the industry will not achieve net zero faster and expressed concern about the money raised not being earmarked for decarbonisation projects.    

IATAu2019s Director General Willie Walsh addressing the air transport summit in Doha.
Business
Middle East airline industry net loss to drop to $1.9bn in 2022: IATA

Buoyed up by this year’s re-opening of international routes, long-haul flights in particular, net losses in Middle East’s airline industry are expected to narrow to $1.9bn in 2022, from a $4.7bn loss in 2021. The demand calculated on revenue passenger kilometres (RPKs) is expected to reach 79.1% of pre-crisis (2019) levels, and capacity 80.5%, the International Air Transport Association (IATA) said in its industry outlook released here on Monday. IATA also announced an upgrade to its outlook for the airline industry’s 2022 financial performance as the pace of recovery from the Covid-19 crisis quickens. Globally, industry losses are expected to reduce to $9.7bn (improved from the October 2021 forecast for an $11.6bn loss) for a net loss margin of -1.2%. That is a huge improvement from losses of $137.7bn (-36% net margin) in 2020 and $42.1bn (-8.3% net margin) in 2021. Industry revenues are expected to reach $782bn (+54.5% on 2021), 93.3% of 2019 levels. Flights operated in 2022 are expected to total 33.8mn, which is 86.9% of 2019 levels (38.9mn flights). Passenger revenues are expected to account for $498bn of industry revenues, more than double the $239bn generated in 2021. Scheduled passenger numbers are expected to reach 3.8bn, with revenue passenger kilometres (RPKs) growing 97.6% compared with 2021, reaching 82.4% of 2019 traffic. As pent-up demand is released with the easing of travel restrictions, yields are expected to rise 5.6%. That follows a yield evolution of -9.1% in 2020 and +3.8% in 2021. Cargo revenues are expected to account for $191bn of industry revenues. That is down slightly from the $204bn recorded in 2021, but nearly double the $100bn achieved in 2019. Overall, the industry is expected to carry over 68mn tonnes of cargo in 2022, which is a record high. As the trading environment softens slightly, cargo yields are expected to fall 10.4% compared with 2021. That only partially reverses the yield increases of 52.5% in 2020 and 24.2% in 2021. Overall expenses are expected to rise to $796bn. That is a 44% increase on 2021, which reflects both the costs of supporting larger operations and the cost of inflation in some key items. Fuel: At $192bn, fuel is the industry’s largest cost item in 2022 (24% of overall costs, up from 19% in 2021). This is based on an expected average price for Brent crude of $101.2/barrel and $125.5 for jet kerosene. Airlines are expected to consume 321bn litres of fuel in 2022 compared with the 359bn litres consumed in 2019. War in Ukraine is keeping prices for Brent crude oil high, IATA noted. Nonetheless, fuel will account for about a quarter of costs in 2022. A particular feature of this year’s fuel market is the high spread between crude and jet fuel prices. This jet crack spread remains well above historical norms, mostly owing to capacity constraints at refineries. Under-investments in this area could mean that the spread remains elevated into 2023. At the same time, high oil and fuel prices are likely to see airlines improve their fuel efficiency — both through the use of more efficient aircraft and through operational decisions. IATA’s Director General Willie Walsh said, “Airlines are resilient. People are flying in ever greater numbers. And cargo is performing well against a backdrop of growing economic uncertainty. “Losses will be cut to $9.7bn this year and profitability is on the horizon for 2023. It is a time for optimism, even if there are still challenges on costs, particularly fuel, and some lingering restrictions in a few key markets.” He said revenues are rising as Covid-19 restrictions ease and people return to travel. The challenge for 2022 is to keep costs under control. “The reduction in losses is the result of hard work to keep costs under control as the industry ramps up. The improvement in the financial outlook comes from holding costs to a 44% increase while revenues increased 55%. “As the industry returns to more normal levels of production and with high fuel costs likely to stay for a while, profitability will depend on continued cost control. And that encompasses the value chain. Our suppliers, including airports and air navigation service providers, need to be as focused on controlling costs as their customers to support the industry’s recovery,” Walsh added.    

HE the Minister of State for Energy Saad bin Sherida al-Kaabi addressing a press conference at QatarEnergy on Monday. PICTURE: Thajudheen
Business
NFE project to produce LNG, LPG, ethane, condensate and helium: Al-Kaabi

Qatar’s North Field East (NFE) project will produce significant quantities of ethane, LPG, condensate and helium besides liquefied natural gas, HE the Minister of State for Energy Saad bin Sherida al-Kaabi has said. Addressing a press conference at the QatarEnergy on Monday he said the expected production of LNG from the nearly $29bn project would be 32.6mn tonnes annually. The production of ethane from the project would amount to 1.5mn tonnes per year (tpy), LPG 4mn tpy, 250,000 barrels per day of condensate and 5,000 tpy of helium. In reply to a question by Gulf Times on Sunday, al-Kaabi said the multi-billion dollar North Field expansion, the largest LNG development in global history, will generate substantial revenues for Qatar and hugely contribute to the country’s GDP. QatarEnergy has selected ConocoPhillips as a partner in the North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. This is the third in a series of announcements on partnerships in the $28.75bn expansion project. Pursuant to the agreement signed yesterday, QatarEnergy and ConocoPhillips will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ConocoPhillips will hold the remaining 25% interest. The JV in turn will own 12.5% of the entire NFE project, which has a total LNG capacity of 32mn tonnes per year. The NFE project employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible. More partners are slated to join the NFE project, QatarEnergy said yesterday.    

Qatar Airways Group Chief Executive HE Akbar al-Baker and IATA Director General Willie Walsh at the 78th IATA AGM in Doha on Monday.
Business
Qatar to gradually increase frequencies to EU over five years: Al-Baker

Qatar Airways will gradually increase frequencies and achieve the open skies with European Union (EU) within five years, Qatar Airways Group Chief Executive HE Akbar al-Baker said on Monday. “We were the first country in the region to accept and sign a comprehensive air services agreement with the EU. This is because we are very open, are a very progressive country. It was a long negotiation of nearly four years between us and the EU. Eventually with the participation of all the EU carriers who were present during the talks, we managed to respond to all their concerns and finally succeeded in signing the comprehensive air services agreement,” he told reporters on the sidelines of the 78th IATA AGM in Doha yesterday. Al-Baker said, “It does not mean that tomorrow I can fly all over Europe as many times as I want. It is over a period of nearly five years that we will gradually increase frequencies and eventually achieve the open sky regime.” Earlier, Qatar’s Ministry of Transport had said, “Per the Agreement, the companies concerned from all intended countries will enjoy an easy and free access to markets with less restrictions, aiming to significantly boost the opportunities of competition which all parties were keen they shall be fair and shall ensure the application of the principles of the International Civil Aviation Organisation (ICAO) through allowing fair and equal opportunities for all parties.”    

HE Akbar al-Baker
Business
Airline industry responsible for only 2.6% of total emissions: Qatar Airways chief

Global airline industry is the “target” for global warming and producing lot of greenhouse gases, although it is responsible for only 2.6% of total emissions, Qatar Airways Group Chief Executive HE Akbar al-Baker has said. “People are forgetting that shipping is many times more than us…there are more airplanes in the sky than ships in the sea. So we need to tell the general public that we are being targeted. The whole world economy and the transportation network depends a lot on air services,” al-Baker told reporters in Doha yesterday. Al-Baker said the industry's net-zero 2050 target, which was set last year, would be difficult for airlines to achieve. It is going to be "very challenging", al-Baker said. He said other stakeholders in the industry, including engine makers and oil companies, would need to contribute to the goal. In its recently released annual report for 2021/22, the national airline said, "Despite the aviation industry contributing to less than 2% of the global emissions, Qatar Airways is working with industry stakeholders in leading global efforts to tackle climate change. Reducing emissions is modern aviation’s greatest challenge, and our commitment to climate change goals demonstrates the importance we have placed on this matter. “At Qatar Airways Group, we are aligned with aviation industry pillars recognised by the International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA): technology, more efficient operations, sustainable aviation fuels and offsetting. “Qatar Airways, together with the oneworld alliance committed to a net zero carbon emissions by 2050, becoming the first global airline alliance to unite behind a common target to achieve carbon neutrality and outlined its path towards the sector decarbonisation.”    

HE Akbar al-Baker
Business
Qatar Airways has no issue recruiting pilots or cabin crew: Al-Baker

Qatar Airways has no issue recruiting pilots or cabin crew and his airline is inundated with job applications, Group Chief Executive HE Akbar al-Baker said but warned labour shortages will be a big challenge in the coming months. Speaking to reporters on the sidelines of the 78th IATA AGM and World Air transport Summit in Doha yesterday al-Baker revealed that Qatar’s national airline received some 20,000 applications when it sought 900 additional pilots to meet its growth plan. And at the airline's 'open day' for cabin crew in one particular city, some 25,000 turned up. "People got into a bad habit of working from home," al-Baker said. "They feel they don't need go to an industry that really needs hands-on people," he said, adding shortages in airport staff could restrict the post-crisis growth of airlines. According to an IATA report, direct employment in the airline sector is expected to reach 2.7mn, up 4.3% on 2021 as the industry rebuilds from the significant decline in activity in 2020. Employment is still, however, somewhat below the 2.93mn jobs in 2019 and is expected to remain below this level for some time. Unit labour costs are expected to be 12.2 cents/available tonne kilometre (ATK) in 2022, which is essentially back to 2019 levels when it was 12.3 cents/ATK. The time required to recruit, train, complete security/background checks, and perform other necessary processes before staff are “job-ready” is presenting a challenge for the industry in 2022. In some cases, employment delays may act as a constraint on an airline’s ability to meet passenger demand. In countries where the economic recovery from the pandemic has been swift and the unemployment rate is low, tight labour markets and skill shortages are likely to contribute to upward pressure on wages. The industry’s wage bill is expected to reach $173bn in 2022, up 7.9% on 2021, and disproportionate to the 4.3% increase in total jobs.    

HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy, and Ryan Lance, Chairman and CEO of ConocoPhillips, at the partnership agreement signing ceremony on Monday in Doha. PICTURE: Thajudheen
Qatar
QatarEnergy and ConocoPhillips in partnership for NFE expansion

QatarEnergy has selected ConocoPhillips as a partner in the North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. This is the third in a series of announcements on partnerships in the $28.75bn expansion project. HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy, and Ryan Lance, Chairman and CEO of ConocoPhillips, signed the partnership agreement at the QatarEnergy’s headquarters yesterday. Pursuant to the agreement signed on Monday, QatarEnergy and ConocoPhillips will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ConocoPhillips will hold the remaining 25% interest. The JV in turn will own 12.5% of the entire NFE project, which has a total LNG capacity of 32mn tonnes per year. Al-Kaabi said: “Today, we sign a new partnership agreement that will further enhance our relationship and enable us to benefit from the wide experience of ConocoPhillips in the development of the world’s largest LNG expansion project. Our work together will enable us to meet our target of increasing the State of Qatar’s LNG production capacity from 77 to 110mn tonnes per year through the North Field East project, which will start production in 2026.” “Our collaboration will help produce cleaner energy to meet growing global demand and achieve a realistic energy transition towards achieving our climate change objectives thanks to the project’s industry-leading environmental attributes, including carbon capture and sequestration and other technologies deployed in this project.” Al-Kaabi concluded his remarks by saying: “I would like to thank His Highness the Amir Sheikh Tamim bin Hamad al-Thani for His wise leadership and for his unwavering support to Qatar’s energy sector.” In his remarks during the ceremony, Lance said, “ConocoPhillips is delighted to build on our long history of partnering with QatarEnergy and participate in this next phase of development of Qatar's North Field. “We recognise that LNG plays an increasingly important role in energy security and the global energy transition.” The NFE project employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible. More partners are slated to join the NFE project, QatarEnergy said yesterday.    

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Business
QatarEnergy selects ConocoPhillips as third partner in NFE expansion project

QatarEnergy has selected ConocoPhillips as a partner in the North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. This is the third in a series of announcements on partnerships in the $28.75bn expansion project. HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy, and Ryan Lance, Chairman and CEO of ConocoPhillips, signed the partnership agreement at the QatarEnergy’s headquarters on Monday. Pursuant to the agreement signed on Monday, QatarEnergy and ConocoPhillips will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while ConocoPhillips will hold the remaining 25% interest. The JV in turn will own 12.5% of the entire NFE project, which has a total LNG capacity of 32mn tonnes per year. Al-Kaabi said, “Today, we sign a new partnership agreement that will further enhance our relationship and enable us to benefit from the wide experience of ConocoPhillips in the development of the world’s largest LNG expansion project. Our work together will enable us to meet our target of increasing the State of Qatar’s LNG production capacity from 77 to 110mn tons per year through the North Field East project, which will start production in 2026.” “Our collaboration will help produce cleaner energy to meet growing global demand and achieve a realistic energy transition towards achieving our climate change objectives thanks to the project’s industry-leading environmental attributes, including carbon capture and sequestration and other technologies deployed in this project.” Al-Kaabi concluded his remarks by saying: “I would like to thank His Highness the Amir Sheikh Tamim bin Hamad al-Thani for His wise leadership and for his unwavering support to Qatar’s energy sector.” In his remarks during the ceremony, Lance said, “ConocoPhillips is delighted to build on our long history of partnering with QatarEnergy and participate in this next phase of development of Qatar's North Field. “We recognise that LNG plays an increasingly important role in energy security and the global energy transition.” The NFE project employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible. More partners are slated to join the NFE project, QatarEnergy said on Monday.      

HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi. PICTURE: Thajudheen
Business
North Field LNG development to have multiplier effects on Qatar’s economy: Al-Kaabi

The multi-billion dollar North Field Expansion, the largest LNG development in global history, will generate substantial revenues for Qatar and hugely contribute to the country’s GDP, noted HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi. The North Field expansion, comprising North Field East (NFE) and North Field South (NFS), will provide significant benefits for all sectors of the Qatari economy during the construction phase and beyond, al-Kaabi said in reply to a question by Gulf Times at a media event at QatarEnergy headquarters on Sunday. NFE will expand Qatar’s LNG export capacity from the current 77mn tonnes per year (mtpy) to 110 mtpy (in the first phase expected to be completed by 2025). The North Field expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77 mtpy per year to 126 mtpy by 2027. Four trains will be part of the North Field East and two trains will be part of North Field South project, he noted. Stressing the importance of the private sector, the minister said Qatar’s private sector will have a huge opportunity to contribute to the project. “This week, we'll be announcing four major projects, three in gas and one in petrochemicals. Over the next seven years we will be investing billions of dollars into many projects, including one on gas-fired electricity generation,” al-Kaabi said. He said after the current phase of the construction activities, the North Field Expansion and other QatarEnergy projects will keep driving the local economy.    

Claudio Descalzi, CEO of Eni.
Business
QatarEnergy to have series of global partnerships with Eni: Al-Kaabi

QatarEnergy will have a series of partnerships with Eni, which include upstream exploration projects in a number of locations around the world as it expands its international footprint, said HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi. “Our collaboration also covers LNG deliveries through the Fluxys LNG terminal in Zeebrugge in Belgium,” he said at a media event at the QatarEnergy headquarters here on Sunday. “However, this partnership agreement is different. It is Eni’s first entry into the upstream sector in the State of Qatar. And I take special pleasure in welcoming them as new member of Qatar’s LNG family,” he said. QatarEnergy yesterday selected Eni as a partner in the North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. This announcement marks the second partnership in the $28.75bn NFE mega project, which will expand Qatar’s LNG production capacity from the current 77mn tonnes per year to 110mn tpy. Al-Kaabi welcomed Claudio Descalzi, the CEO of Eni, to the event where the Italian multinational oil and gas company was announced as a partner to the “unique and strategic” North Field East (NFE) expansion project. “I would like to thank Mr Descalzi for Eni’s participation in this competitive process and to congratulate him on the signing of this agreement, which will significantly strengthen our mutual cooperation for decades to come,” al-Kaabi said. Pursuant to the agreement, QatarEnergy and Eni will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while Eni will hold the remaining 25% interest. The JV will in turn own 12.5% of the entire NFE project, whose four mega LNG trains have a combined nameplate capacity of 32mn tonnes per year.    

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Business
IATA launches ‘CO2 Connect’ in support of industry sustainability commitment

The International Air Transport Association has launched ‘IATA CO2 Connect’, an online tool, which provides the most accurate carbon dioxide emission calculations for any given commercial passenger flight. IATA CO2 Connect responds to the growing demand for CO2 data transparency linked to airline specific and actual fuel burn information and load factors. This sets it apart from theoretical data models that already exist on the market today. IATA CO2 Connect is available to companies within and outside the travel value chain, such as travel management companies (TMCs), travel agencies, airlines or multinational corporations. They can access the relevant CO2 emissions data and integrate it in a customised manner into their existing flight booking tools. Travel managers or travellers can easily see the CO2 emissions per routing. The tool also permits the consolidation of data for reporting purposes. IATA CO2 Connect utilises the newly developed CO2 calculation methodology, adopted by IATA’s Passenger Service Conference in March this year. This was conceived by leading partners from 20 airlines and major aircraft manufacturers, in consultation with international standard-setting bodies and logistics services providers. American Express Global Business Travel (Amex GBT), the world’s leading B2B travel platform, is IATA’s launch partner for CO2 Connect. The travel management company (TMC), which manages more than $40bn in travel sales annually, undertakes to provide its customers with the most accurate and reliable flight emissions data, enabling travellers to make better-informed booking decisions. Frederic Leger, IATA’s senior vice president (Commercial Products and Services) told a media event on the sidelines of the IATA AGM and World Air Transport Summit in Doha yesterday, “Flying sustainably and cutting CO2 emissions is a top priority. The aviation sector is working to achieve net zero emissions by 2050 and travellers want to be more aware of their carbon footprint. “With IATA CO2 Connect, individuals and corporate travel managers can get standardised accurate calculations to make the most sustainable choices for their air travel taking into consideration aircraft types, routings and class of service. Importantly, data can be consolidated for corporate reporting purposes.” Companies interested in accessing IATA CO2 Connect can integrate the data into existing travel management solutions via Application Programming Interface (API) or flat file technology/format. In contrast to many existing CO2 calculators, IATA CO2 Connect uses primary data from airlines.    

Kamil Alawadhi, IATA regional vice-president for Africa and Middle East.
Business
IATA regional chief praises Qatar for accommodating aviation during pandemic

IATA regional vice-president for Africa and Middle East Kamil Alawadhi has praised Qatar and the UAE for accommodating the concerns of the aviation industry, while placing restrictions at the height of the Covid-19 pandemic. Speaking to reporters on the sidelines of the 78th IATA AGM and World Air Transport Summit in Doha on Sunday he said, “in Qatar aviation was a prominent member of the committee to tackle Covid-19 situation. Consequently, the decisions were made with aviation in mind. “In many other countries in the region, decisions were not taken with a collaborative approach and aviation in mind. This has hugely impacted the aviation industry in the region. The rest of the countries should have looked at Qatar and the UAE and said this is how we should have done it,” Alawadhi noted. Earlier making a presentation on regional aviation, Alawadhi said the Middle East is recovering and said the regional carriers are currently at 65% of the 2019 levels in terms of revenue passenger kilometres (RPKs), which is a “better” performance than in the previous quarter. “The opening of the international markets, especially China for which Middle Eastern countries serve as hubs, facilitated the recovery and will drive further growth in RPKs,” Alawadhi said. In terms of the ticket bookings, he said the first quarter of 2022 showed “some volatility” in the Middle East, oscillating between 73% to 80% of 2019 levels. He said the Middle East is well on its way to reestablishing routes with the rest of the world. Connectivity between countries in the region have exceeded pre-pandemic levels as has connectivity between the region and North America. As expected, connectivity between the region an Asia-Pacific remains depressed due to Covid restrictions in China. In the Middle East, this year’s reopening of international routes and long-haul flights will provide a welcome boost for many. Alawadhi said the region’s air cargo business is already operating at 18% above pre-Covid levels. Air cargo has been a lifeline for many, delivering vaccines, PPE, medical equipment and even e-commerce. “In doing so, it has also been the revenue star for many airlines in the industry. The Region’s carriers, specifically, Qatar Airways, Emirates and Etihad played a critical role in the mammoth task by keeping flying throughout the crisis,” Alawadhi said. He also called upon governments to work closely with the industry and with each other to drive a harmonised agenda for air transport in the region. This, Alawadhi noted, will help the region better prepare for future crises that may impact aviation.