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Ma’aden to use Saudi Arabia’s 1st hydrogen-powered trucks

Ma’aden to use Saudi Arabia’s 1st hydrogen-powered trucks
Ma’aden CEO Robert Wilt made the announcment during the opening of the Arab International Aluminum Conference. Supplied.
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Updated 22 November 2023
Arab News
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Ma’aden to use Saudi Arabia’s 1st hydrogen-powered trucks

Ma’aden to use Saudi Arabia’s 1st hydrogen-powered trucks
Updated 22 November 2023
Arab News
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RIYADH: Excavation giant Saudi Arabian Mining Co. has signed a deal to use the Kingdom’s first hydrogen-powered trucks for its logistic operations.

The firm, also known as Ma’aden, has reached an agreement with Dammam-based Almajdouie Logistics Co. to deploy the heavy goods vehicles, according to a press release.

Ma’aden CEO Robert Wilt made the announcement at the opening of the Arab International Aluminum Conference in the presence of Vice Minister of Industry and Mineral Resources Khalid Al-Mudaifer.

The vehicle was unveiled by the Saudi Transport General Authority in collaboration with Almajduoie Logistics.

The truck runs on hydrogen fuel, with a capacity of 35 kilograms and a gas pressure of up to 350 bar.

It is designed and equipped to transport goods in accordance with safety conditions, TGA said, noting that it covers long distances exceeding 400 km.

Ma’aden will use the hydrogen-powered vehicle to transport aluminum products from Jubail and Ras Al-Khair.

The company is the largest multicommodity mining and metals company in the Middle East, with revenues of SR40.3 billion ($10.7 billion) in 2022.

“The hydrogen truck has zero carbon emissions and aligns with the Kingdom’s initiatives for sustainable development. It is specifically designed and prepared to transport goods safely and cover long distances exceeding 400 km,” TGA said in the release.

The initiative aims to build an ecosystem for hydrogen-powered vehicles within Saudi Arabia, offer integrated solutions to interested parties, and enhance hydrogen transportation within the Kingdom.

According to the release, the agreement between Almajdouie and TGA is part of a larger feasibility study that aims to operate in line with the Kingdom’s Vision 2030 and the Saudi Green Initiative, which aims to reduce carbon emissions by 25 percent by 2030.

The partnership entails the design, financing, construction, operation and maintenance of hydrogen-related infrastructure, including hydrogen refueling stations across various locations in the Kingdom.

Topics: Saudi Arabian Mining Co. (Ma’aden) Arab International Aluminum Conference

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Saudi Arabia’s refined crude exports hit 23-month high at 1.54m bpd

Saudi Arabia’s refined crude exports hit 23-month high at 1.54m bpd
Updated 42 min 38 sec ago
Dayan Abou Tine 
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Saudi Arabia’s refined crude exports hit 23-month high at 1.54m bpd

Saudi Arabia’s refined crude exports hit 23-month high at 1.54m bpd
Updated 42 min 38 sec ago
Dayan Abou Tine 

RIYADH: Saudi Arabia’s refinery crude exports surged 23 percent in September compared to the previous month, to reach 1.54 million barrels per day – the highest level for almost two years.

According to figures from the Joint Organizations Data Initiative, the increase to a 23-month high was fueled by strong demand for refined products, including diesel, motor gasoline, aviation gasoline, and fuel oil. 

Diesel led the export mix, accounting for 47 percent of shipments, with volumes rising 35 percent month on month to 727,000 bpd. Motor and aviation gasoline made up 23 percent of exports, while fuel oil contributed 7 percent. 

Refinery output in Saudi Arabia remained steady at 2.76 million bpd, with diesel representing 44 percent of refined products, followed by motor and aviation gasoline at 25 percent, and fuel oil at 17 percent. 

Crude oil exports rose modestly by 1.41 percent to 5.75 million bpd, while production edged down by 0.19 percent to 8.97 million bpd. 

Despite the rise in exports, domestic petroleum demand dropped sharply by 267,000 bpd to 2.62 million bpd, possibly due to seasonal factors and improved efficiency. 

OPEC announced in November that eight key OPEC+ nations, including Saudi Arabia, Russia, and Iraq, have agreed to extend voluntary production cuts of 2.2 million bpd through December.  

Initially introduced in 2023 to stabilize the oil market, the cuts reflect the group’s commitment to the Declaration of Cooperation, with plans to offset overproduction by September 2025. Iraq, along with Russia and Kazakhstan, reaffirmed adherence to the agreement and compensation schedules earlier this month.  

Direct crude usage 

Saudi Arabia’s direct crude oil burn dropped significantly in September, falling by 296,000 bpd compared to August to 518,000 bpd — a 36.4 percent decline and the lowest level in five months. 

This decline is largely attributed to seasonal temperature changes, as the weather begins to cool from the peak summer heat, reducing the demand for air conditioning and, consequently, the need for crude oil in power generation. 

Compared to September last year, the lower burn levels also reflect the Kingdom’s ongoing efforts to enhance energy efficiency and diversify its power sources. 

By expanding its natural gas network and scaling up renewable energy projects, the Kingdom is reducing its reliance on crude oil for electricity generation, aligning with its Vision 2030 strategy for a sustainable and diversified energy mix. 

Topics: crude oil Crude oil exports oil exports Joint Organizations Data Initiative

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More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties

More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties
Updated 57 min 50 sec ago
MOHAMMED AL-KINANI
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More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties

More than 70 Saudi firms travel to Poland, Slovakia to boost trade ties
Updated 57 min 50 sec ago
MOHAMMED AL-KINANI

JEDDAH: Representatives from 72 Saudi firms are part of a group visiting Poland and Slovakia in a bid to increase trade with the European countries.

Delegates from Federation of Saudi Chambers are also part of the trip, which will see high-level economic meetings involving senior government officials and private sector representatives. Their objective is to explore investment opportunities and sign several agreements and commercial partnerships.

The delegation, led by Chairman of the Federation of Saudi Chambers Hassan bin Mujib Al-Huwaizi, includes over 72 business representatives from various economic sectors, along with governmental entities and authorities, according to the Saudi Press Agency.

In August, the Kingdom and Poland established a joint business council for the 2024-2028 term to boost trade and investment between the two countries. The move is part of the nation’s broader strategy to deepen economic ties with Europe, with a particular focus on Poland, one of the continent’s largest economies.

Poland has seen impressive growth in its agri-food sector, with exports reaching a record €47.9 billion ($51.1 billion) in 2023 — a €10 billion increase from the previous year.

In 2023, Saudi Arabia’s trade exchange with Poland reached SR33.7 billion. The Kingdom’s primary exports to Poland include mineral products and plastics, while Poland’s main exports to the Arab country consist of tobacco, machinery, and mechanical appliances.

The relationship between Saudi Arabia and Slovakia has also witnessed growth following the official opening of the Slovak Embassy in Riyadh in recent years. Additionally, bilateral trade has increased significantly, highlighting untapped investment opportunities.

The delegation will begin its visit to Poland by holding the Saudi-Polish Business Council meeting, a joint forum, and bilateral meetings between representatives.

In Slovakia, the delegation will host the Saudi-Slovak Business Forum, conduct meetings between companies from both sides and sign an agreement to establish a joint business council.

Through its recent series of international visits to ten countries, the federation is leading efforts to open new markets and opportunities for the Kingdom’s backers and to boost trade and investment exchanges with countries worldwide, in alignment with the aspirations of Saudi Vision 2030.

Topics: Saudi-poland ties Saudi-slovak relations Federation of Saudi Chambers

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Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia

Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia
Updated 45 min 3 sec ago
Mohammed Al-Kinani 
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Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia

Blatco, Golden Star Rubber to build Middle East’s largest tire plant in Saudi Arabia
Updated 45 min 3 sec ago
Mohammed Al-Kinani 

JEDDAH: Saudi Arabia’s Black Arrow Tire Co., or Blatco, has partnered with Thailand’s Golden Star Rubber Co. to build the Middle East’s largest tire manufacturing facility in Yanbu, with a $470 million investment. 

The plant will initially produce 4 million tires annually for passenger vehicles, with plans to expand production to 6 million tires per year, including truck and bus tires.

The Yanbu facility is set to boost Saudi Arabia’s industrial capabilities and will create more than 2,000 local jobs. The partnership will supply the facility with the natural rubber required for tire production in the Kingdom. 

The Saudi tire market, which produced 22.6 million units in 2023, is projected to grow at a compound annual growth rate of 1.26 percent, reaching 25.5 million units by 2032, according to market research firm IMARC Group. 

Largely import-driven, the sector is dominated by Chinese tire brands due to their affordability and availability. However, flagship brands have gained traction in recent years, thanks to their higher quality and longer product lifecycles, the report added.

The ceremony to mark the deal, signed by Blatco Chairman Abdullah Al-Wahibi and Golden Star Rubber Chairman Amir Zafar, was also attended by Hassan Al-Huwaizi, president of the Federation of Saudi Chambers of Commerce, Al-Ekhbariya reported. 

The agreement aligns with Vision 2030’s goals to localize industries, transfer knowledge, and support domestic content. The partnership is also supported by the Saudi-Thai Business Council, aimed at strengthening commercial and investment ties between Saudi Arabia and Thailand. 

The plant will be situated in the Kingdom’s industrial city on the Red Sea, under the Royal Commission for Jubail and Yanbu. Blatco officials anticipate that 50 percent of production will be consumed locally, with the remainder to be exported to regional markets. 

Earlier this year, Blatco signed a 20-year technology export agreement with South Korea’s Kumho Tire. As part of the deal, Kumho Tire agreed to supply Blatco with the technology to produce passenger car tires for the Middle East, including Saudi Arabia. 

Founded in Riyadh in 2019, Blatco aims to become a key player in automotive manufacturing and distribution in the region. The company focuses on contributing to Saudi Arabia’s economy, creating jobs, and supporting technology transfer initiatives, according to its website. 

In October 2023, the Kingdom’s Public Investment Fund announced a separate $550 million tire factory in a joint venture with Italy’s Pirelli. 

PIF holds a 75 percent stake in the venture, with Pirelli providing technology and commercial support. The facility, set to begin operations in 2026, will produce tires for passenger vehicles under the Pirelli brand and a new local brand for domestic and regional markets. 

Topics: Blatco Golden Star Rubber Co. tires tire manufacturing

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Saudi Aramco, Sinopec begin construction of petchem complex in Fujian

Saudi Aramco, Sinopec begin construction of petchem complex in Fujian
Updated 12 sec ago
Nirmal Narayanan
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Saudi Aramco, Sinopec begin construction of petchem complex in Fujian

Saudi Aramco, Sinopec begin construction of petchem complex in Fujian
Updated 12 sec ago
Nirmal Narayanan

RIYADH: Saudi energy giant Aramco, in collaboration with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., has launched the construction of a refinery and petrochemical complex in Fujian province, China.

The project, which is slated to be fully operational by the end of 2030, will feature an oil refinery with a capacity of 320,000 barrels per day, according to a company statement. In addition to the refinery, the complex will include a 1.5 million-tonne-per-year ethylene unit, a 2 million-tonne paraxylene unit with downstream derivatives capacity, and a 300,000-tonne crude oil terminal.

Aramco’s long-standing relationship with China spans more than three decades. This new venture is part of Aramco’s broader strategy to solidify its position as a key player in the global energy sector, while also supporting Saudi Arabia’s economic growth.

“Building on our strong relationships with both Sinopec and Fujian Petrochemical, today’s groundbreaking further expands Aramco’s growing downstream investment portfolio in China,” said Mohammed Al-Qahtani, Aramco’s downstream president.

He continued: “We will supply in excess of 1 million barrels per day of our crude oil to these high chemical conversion assets in China, reinforcing Aramco’s role as a reliable and long-term partner in China’s development. This also advances our liquids-to-chemicals strategy, through which we intend to direct more of our crude toward helping meet rising global petrochemicals demand.”

The new facility will also supply around 5 million tonnes of feedstock annually to the Gulei Petrochemical Base, the statement added.

The Fujian Petrochemical Complex will be a joint venture, with FPCL, a collaboration between Sinopec and Fujian Petrochemical Industrial Group Co., holding a 50 percent stake. Aramco and Sinopec will each own a 25 percent share.

Ma Yongsheng, chairman of Sinopec, highlighted that the Fujian project represents a significant milestone in the partnership between Saudi Arabia and China.

“Both Sinopec and Aramco are committed to promoting the high-quality development of the petroleum and petrochemical industry. Aramco’s participation supplies long-term reliable and competitive feedstock for the project and further boosts the healthy development of Gulei Petrochemical Base,” said Yongsheng.

This new deal further deepens Aramco’s collaboration with Sinopec in the energy sector. Earlier this year, in January, Aramco awarded contracts worth over $3.3 billion to Sinopec and Spain’s Tecnicas Reunidas for the construction of a gas facility in Saudi Arabia. The project involves the development of a new natural gas liquids facility at the Jafurah unconventional gas production site in Saudi Arabia.

In October, Aramco also strengthened its ties with Chinese partners, signing a five-year partnership with China National Building Material Group to explore advanced materials, including the potential manufacturing of wind turbine blades in the Kingdom.

Topics: Aramco Sinopec

Pakistan PM calls for tax compliance by all sectors amid tough IMF conditions

Pakistan PM calls for tax compliance by all sectors amid tough IMF conditions
Updated 47 min 26 sec ago
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Pakistan PM calls for tax compliance by all sectors amid tough IMF conditions

Pakistan PM calls for tax compliance by all sectors amid tough IMF conditions
  • IMF’s unplanned visit last week was reportedly prompted by revenue collection shortfall of $685 million during Q1 of current fiscal
  • Agreement for a $7 billion loan program approved in September came with tough measures such as raising taxes, privatization 
Updated 47 min 26 sec ago
SAIMA SHABBIR

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday called for all sectors to fulfill their tax obligations, days after the IMF concluded an unscheduled visit to Pakistan for discussions on economic policy and reform efforts.

The IMF’s visit last week was widely reported to have been prompted by, among other factors, a shortfall of nearly Rs190 billion ($685 million) in revenue collection during the first quarter of the current fiscal year. The period also saw an external financing gap of $2.5 billion, while Pakistan failed in its bid to sell its national airline, a major setback on the path to privatizing loss-making state-owned enterprises, required by the IMF.

The government wants to increase the tax-to-GDP ratio to 13 percent over the next three years. The ratio stood at 9 percent during 2023-24, according to the Federal Board of Revenue, the country’s main tax collection body. 

“Economic development is only possible when everyone fulfills their share of responsibility,” Sharif was quoted as saying in a statement released by his office after he chaired a meeting of his cabinet to review economic policies. “All sectors must pay taxes to contribute to national progress.”

Pakistan’s economy has faced significant challenges in recent years, including high inflation and fiscal deficits. In May last year, the CPI inflation rate hit a record high of 38 percent but has seen a downward trajectory in recent months, moving to 7.2 percent year-on-year in October.

Pakistan has struggled for decades with boom-and-bust economic cycles, prompting 23 IMF bailouts since 1958.

After wrapping up the visit last week, the IMF had said it was encouraged by Islamabad’s reaffirmed commitment to the economic reforms under the Extended Fund Facility its board had approved in September to reduce vulnerabilities. 

The external financing gap and failure to sell PIA has prompted fears that Pakistan might need to impose new taxes to bridge the shortfall. But Finance Minister Muhammad Aurangzeb has repeatedly said the shortfall will be met only with enforcement to get people to pay their taxes, implying there would not be any new revenue measures.

Topics: Pakistan Pakistan economy

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