ADQ and ECP form JV to invest USD 25 bn in US data centers

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TODAY: ADQ’s US data centers JV + EBRD backs Nador West Med’s economic zone

Good morning, friends. We’re wrapping up this week with another brisk read that includes major data center investment news from the UAE and a debt watch from Morocco. But first, an update on the US’s upcoming export-oriented LNG project…

THE BIG LOGISTICS STORY- Trump greenlights Venture Global’s LNG exports: The Trump administration has granted Venture Global LNG — the US’ second-largest LNG exporter — conditional approval to export natural gas from the firm’s planned CP2 project in Louisiana. The conditional approval will also allow the firm to export to countries that have no freetrade agreements with the US.

More details: Once operational, the facility — located in Louisiana’s Cameron Parish — will be able to export up to 3.96 bn cubic feet per day of LNG. It will produce 20 mn tons of LNG annually and potentially cost USD 28 bn to build. Venture Global is yet to make a final investment decision on the project.

It hasn’t been easy: Former US President Joe Biden held up approval for the project in January 2024 after environmental groups argued that the facility would prolong the transition to clean energy. Venture Global pushed back against this, arguing that it will export enough gas to replace 33 coal-fired power plants and prevent a release of nearly 140 mn tons of emissions per year.

The company is also facing rising operational costs in the US, and it has recently requested a revision of supply and purchase agreements from trading partners in response to rising LNG operational costs in the US.

The story grabbed a lot of ink in int’l press: Reuters | Bloomberg | Financial Times | The New York Times

WATCH THIS SPACE-

#1- India eyes an industrial base in Egypt: An Indian delegation composed of government officials and representatives from the Indian Industry Confederation will soon visit Egypt to discuss the next steps for a possible Indian industrial zone project in the SCZone, according to a statement. The news came during Egypt’s Investment Minister Hassan El Khatib’s ongoing visit to India to discuss trade cooperation.

THE BIGGER PICTURE- Egypt and India want to nearly triple trade volumes to USD 12 bn over the next five years from USD 4.2 bn in 2024, according to a readout of a meeting between El Khatib and Indian Commerce and Industry Minister Piyush Goyal. Egypt wants to attract Indian investments into a handful of key sectors, such as chemicals, automotive manufacturing, pharma, and textiles, and the government is prepared to offer Indian investors the necessary support and incentives, El Khatib said.

#2- Egyptian Oil Minister Karim Badawi discussed the terms of leasing the Energos Power floating regasification unit with German officials in Berlin yesterday, according to a statement. The discussions followed initial negotiations in Cairo in late February. The vessel is currently docked at Germany’s Mukran Port.

REMEMBER- The Oil Ministry earlier this month announced that it is exploring the possibility of leasing a German LNG regasification vessel, and said a delegation would iron out the final terms of the agreement by the end of March. The vessel is one of a handful of regasification units the government had been in talks to lease in preparation for high energy demand in the summer months.

#3- Brazilian crude in, Russian crude out for Turkey? Turkey’s largest oil refiner Tupras has ordered a shipment of Brazilian medium sweet crude — its first since 2007 — suggesting a departure from its dependence on Russia’s arctic crude that has similar properties, Bloomberg reports. The shipment — sourced from Brazil’s majority state-owned Petrobras — will include 950k barrels of Itapu crude and is scheduled for delivery in early April.

In numbers: Russian crude is projected to account for only 19% of Turkey’s crude imports in March — a sharp decline compared to 2024 figures that saw Turkey source half of its supplies from Russia.

Background: Tupras ceased all imports of Russia’s flagship Urals grade crude late last month, Reuters reported at the time. The refiner attributed the decision to the US move to heighten sanctions on Russian oil producers Gazprom Neft and Surgutneftegas in January.

ALSO- Russian crude lands in Chinese port despite sanctions: Nearly 2 mn barrels of Russian crude shipped from three small US-sanctioned tankers to the Panama-flagged VLCC Daban were unloaded last week at China’s privately operated Qingdao Haiye Group’s Qingdao port, Reuters reports, citing two unnamed people familiar with the matter. The Daban is managed by Hong Kong-based Confident Apex Ltd, according to Kpler and LSEG data.

The how: The Daban onboarded the oil in the first ten days of February from three US-sanctioned Aframax-sized vessels — the Vladimir Arseenyeeb, the Captain Kostichev, and the Victor Konetsky. The transfers took place in Russia’s Nakhoda Bay, Reuters reports, citing Kpler. “Unlike the international waters near Malaysia and Singapore, Nakhoda Bay is not known as a regular site for ship-to-ship transfers of oil, making Daban's movements more conspicuous,” a trader told Reuters.

REFRESHER- The US Treasury Department rolled out new sanctions in January targeting dozens of oil traders and more than 180 tankers that have moved Russian oil over the past year, as well as Russian oil producers Gazprom Neft and Surgutneftegas.

MARKET WATCH-

#1- Oil prices went up this morning in response to a weakening greenback and a robust demand outlook from the US, Reuters reports. Brent crude futures surged by USD 0.43 to USD 71.21 a barrel, while the US West Texas Intermediate (WTI) rose by USD 0.38 to USD 67.54 a barrel by 11.30 GMT.

#2- Dubai’s sour crude benchmark surged against Brent crude futures this week, with the Brent-Dubai Exchange of Futures for Swaps flipping to a discount of USD 0.02 per barrel on Wednesday — its first drop below parity since November 2023, Reuters reports, citing LSEG data. The discount later widened to USD 0.14, trade sources said, reflecting robust Middle East sour crude demand and weaker European refining activity.

Brent’s slump against Dubai highlights subdued European refinery runs during maintenance season and soft margins in Northwest Europe, Onyx Capital’s Harry Tchilligurian noted. Meanwhile, heightened bidding for Middle East grades in the Dubai trading window bolstered the regional benchmark.

This might not last long: Though recent price tightness suggests medium sour crude is now the “center of the strength in the global crude oil market” currently, Opec’s plans to hike production starting next month will likely weigh on prices, SEB analyst Bjarne Schieldrop said.

#3- Fujairah’s marine fuel sales volume slumped to a record low of 554k cbm in February amid an uncertain outlook facing the shipping industry, with low-sulfur marine fuel dipping 7.2% m-o-m to around 412 cbm and the high-sulfur version falling 2% to 143 cbm, Al Arabiya reports, citing data from Fujairah Oil Industry Zone (FOIZ). The slowdown in Fujairah is“reflection of the broader uncertainty in global trade…as shipping firms are optimizing their operations more cautiously to navigate volatile conditions,” Container xChange CEO Christian Roeloffs told Reuters.

#4- Baltic index snaps winning streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was down 13 points to 1,637 on Wednesday. The capesize dipped 41 points to 2,673, while the panamax index declined 28 points to 1,377. Only the smaller supramax index was up, rising 22 points to 999 — its highest in four months.

PSA-

Hapag-Lloyd to suspend low water surcharge: Shipping giant Hapag-Lloyd will suspend its low water surcharge for all cargo moving to and through the port of Montreal starting 28 March 2025, according to a statement. The suspension will allow the firm to fully load Montreal services such as AT1, AT2, and the Mediterranean Canada Service.

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CIRCLE YOUR CALENDAR-

The UAE will host the Gulf Ship Finance Forum on Thursday, 10 April in Dubai. The forum will host shipping and finance executives from around the region and the world to host presentations, interviews, and panel discussions on ownership, management, chartering, legal, and trading in shipping.

The UAE will host the CargoIS Forum on Monday, 14 April in Dubai. The event will discuss industry insights and strategies from leading logistics players, including Emirates SkyCargo and Lufthansa Cargo.

The UAE will host the IATA World Cargo Symposium from Tuesday, 15 April to Thursday, 17 April in Dubai. The event will host sessions, specialized streams, workshops, and summits related to technology, security, customs, cargo operations, and sustainability for over 1.4k industry leaders.

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

ADQ and ECP partner on USD 25 bn venture for US data centers

ADQ and ECP earmark USD 25 bn for powering US data centers: Abu Dhabi sovereign wealth fund ADQ entered into an agreement with American energy-focused investment firm Energy Capital Partners (ECP) to invest USD 25 bn in powering data centers, according to an ADQ press release. The US is set to see the lion’s share of investment, but the pair did not rule out investing in other markets.

The details: The 50-50 partnership will see the companies invest at least USD 25 bn across 25 GW worth of projects and launch infrastructure projects to generate electricity to power data centers, hyperscale cloud companies, and other industries. The projects will include greenfield developments, new builds, and expansion work, and focus on natural gas-powered plants but would consider lower carbon emission options, ADQ deputy group CFO Hamad Al Hammadi told Bloomberg.

More to come? Funding will come in a USD 5 bn initial capital contribution, with the rest following over five years, Al Hammadi told Bloomberg, adding that further investment was in the cards. A mix of debt and equity would finance the venture, which is aiming to begin dealmaking for projects within a year of starting up, Al Hammadi said.

Not UAE’s first move on US data centers: Earlier in January, Dubai-based Damac Properties committed USD 20 bn of investments in data centers across the US. The first phase of the investment commitment is eying 2 GW of capacity, covering Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan, and Indiana.

REMEMBER- The development follows National Security Advisor and ADQ Chairman Tahnoon bin Zayed Al Nahyan’s meeting with US President Donald Trump to discuss expanding bilateral ties on AI and tech.

IN OTHER RELATED UPDATES-

Musk’s xAI + Nvidia join the UAE-backed AI Infrastructure Partnership: Elon Musk’s xAI and chipmaker Nvidia have joined BlackRock, Microsoft, and Abu Dhabi’s MGX’s USD 30 bn AI Infrastructure Partnership, according to a statement. The group — which was launched last September formerly as the Global AI Infrastructure Investment Partnership — aims to invest in data centers and energy projects, primarily in the US and allied countries, while targeting an additional USD 70 bn in debt financing.

MGX — a Mubadala-backed AI fund — has been laying the ground for major AI and data center investments overseas, reportedly pledging USD 30-50 bn investments in France and announcing plans to develop 1 GW blue data centers in Italy in partnership with Italy’s Eni and UAE’s G42.

Moroccan Nador West Med’s economic zone secures EUR 110 mn loan

EBRD backs climate-resilient economic zone at Nador West Med: The European Bank for Reconstruction and Development (EBRD) is extending a EUR 110 mn senior loan to Betoya Industriel and Logistic Zone (BILZ) to develop a climate-resilient economic zone within the Nador West Med (NWM) industrial port complex, according to a statement issued on Tuesday.

There is more: The sovereign-backed loan is supplemented by three grants totaling EUR 10.1 mn from EBRD, the multilateral Global Environment Facility, and the UK under the EBRD-sponsored High-Impact Partnership on Climate Action.

Where’s the money going? The financing will fund land development for the zone’s industrial and logistics platforms. It will also support sustainable and energy-efficient infrastructure developments, including an on-site desalination plant, two wastewater treatment plants, and energy-efficient street lighting.

About BILZ: BILZ — a wholly-owned subsidiary of state-run Société Nador West Med — was established in 2023 to manage and develop the economic zone adjacent to Nador West Med port.

This isn’t EBRD’s first financing for the Nador West Med project: The Bank previously extended a EUR 100 mn loan in 2022 to Société Nador West Med for the construction of the port, as a second tranche of a EUR 200 mn financing agreement inked in 2015.

NWM is getting a lot of attention: Marsa Maroc’s 25-year concession agreement for NWM’s Western Terminal — secured last month — is set to raise the port’s container handling capacity to 9 mn TEUs, with almost 7 mn TEUs dedicated to container transshipment. AfDB inked a EUR 129 mn agreement last year to support the development of economic zones as well as industrial and logistical facilities at the port.

Egypt’s steel industry faces uncertain outlook amid US, EU steel tariffs

Egypt’s steel exports brace for a rough year: Egyptian steel Industry insiders are forecasting a likely decline in local producers’ revenues as a result of rising global trade wars and tariffs on steel exports, the head of the Federation of Egyptian Industries’ Metallurgical Industries Chamber Mohamed Hanafi told EnterpriseAM.

The lay of the land: Ongoing EU concerns over steel dumping in the bloc — coupled with the Trump administration’s apparent willingness to pick any trade war fight — paint a concerning picture for Egypt’s steel industry in the years ahead. The US imposed a 25% tariff on all steel imports earlier this month, while the European Commission announced a 15.6% temporary tariff on hot rolled coil imports from Egypt starting 7 April, pending a final decision in October.

Egyptian Steel exports are already on the down, falling 4% y-o-y in 2024 to USD 2.3 bn, according to official data from the Export Council for Building Materials seen by EnterpriseAM. US tariffs under Donald Trump’s first term have already weakened exports, ElMarakby Steel Chairman Hassan Elmarakby told EnterpriseAM. The outlook could get worse if the recent US and European tariffs persist, Elmarakby added.

The US dropped from fourth to sixth place among Egypt’s steel export markets last year, with purchases falling to USD 126.6 mn from USD 230 mn in 2022. Italian and Spanish imports also declined significantly, falling 43% y-o-y to USD 185 mn and 42% y-o-y to USD 225 mn, respectively.

More export barriers could also be coming our way, with Turkey and the UK considering import quotas for Egyptian steel. Turkey, which was Egypt’s top steel importer last year, imported USD 256 mn worth of steel, while the UK imported USD 39 mn.

What about alternative markets? While steelmakers have long sought to diversify exports, South American and African economies cannot absorb Egypt’s large output, Hanafi told EnterpriseAM. Kenya was the top African importer last year, purchasing a comparatively small USD 27.5 mn worth of steel, while South Africa’s imports dropped from USD 162 mn a decade ago to just USD 26k last year.

Thankfully, Arab markets and Brazil offer some hope, with exports to Saudi Arabia growing 150% y-o-y to USD 108 mn in 2024, while Libyan imports rose 151% y-o-y to USD 48 mn, and Lebanese imports increased 2% y-o-y to USD 62 mn. Brazil saw the highest value growth last year, with its steel imports jumping 283% y-o-y to USD 149 mn, making it Egypt’s fifth-largest steel buyer.

The local steel industry is running well below capacity, with the country’s annual production rarely exceeding 10 mn tons, despite annual capacity standing at 16 bn tons, an industry insider told EnterpriseAM. The high capacity sector — thanks to roughly EGP 250 bn in investments — is constrained by weak domestic demand due to 2021 government restrictions on construction, which have only just been overturned, and export constraints.

Ports, customs, roads, and e-commerce updates from UAE, Turkey and Saudi

PORTS-

DP World launches green freight solutions in Dubai: UAE’s DP World has partnered with electric mobility outfit Einride to launch an electric freight solution at Jebel Ali Port to further decarbonize operations at the terminal and meet the firm's sustainability targets, according to a statement. The first phase of the electric fleet is set to roll out 204k 20-ft containers annually and reduce 14.6k tonnes of carbon dioxide per year compared to diesel operations.

REMEMBER- DP World inked an agreement with Einride to deploy 100 driverless electric cargo vehicles at the port — the region’s largest fleet — back in May.

There's more to come: A second phase of electric freight solutions will be rolled out later this year, the statement adds, without disclosing a specific date. Once integrated, the full fleet will be capable of shifting 2 mn 20-ft containers annually. The full project will also integrate AI-driven operating systems and charging infrastructure provided by Einride.

CUSTOMS-

UAE customs to roll out new central tariff system: The Federal Authority for Identity and Citizenship, Customs and Ports Security (ICA) is set to launch a new integrated central customs tariff system effective 1 April, Wam reports. The customs tariff system aims to facilitate trade, enhance compliance, and reduce operation completion time. The new system is part of the Emirates Customs Platform project — which enables the classification and updating of goods and custom duties through an electronic portal.

ROADS-

Dubacustomsads and Transport Authority (RTA) completed rapid traffic improvements to the Sheikh Zayed Road close to the Dubai Financial Center, according to a press release. The developments increased the road’s capacity by 25% to accommodate 3.2k vehicles per hour, and cut down journey time from five minutes to two minutes. Traffic merging distance between Al Khalil Road and the Financial Center street is also down, reducing journey time as well.

E-COMMERCE-

Alshaya Group’s brands joined the GCC marketplace of the Turkish e-commerce platform Trendyol, according to a press release. American Eagle, Bath & Body Works, and H&M are now available on Trendyol for shoppers in Saudi Arabia, with more brands to come.

About Trendyol: Istanbul-based e-commerce platform Trendyol was founded in 2010 and connects customers with local and global brands. The Kingdom currently accounts for 80% of the platform's orders during peak periods in the Gulf.

OTHER STORIES WORTH KNOWING THIS MORNING-

Gulf Air expands Kenyan network: Bahrain’s Gulf Air has launched five weekly direct flights to Nairobi’s Jomo Kenyatta International Airport in Kenya, starting 2 June 2025. (Statement)
Emirates to add seven destinations: The UAE’s Emirates will commence daily flights to Amman, Istanbul, Dammam, Vietnam’s Ho Chi Minh City, and Norway’s Oslo throughout the year. Six weekly flights are planned for Tunis and three weekly flights for Baghdad for the upcoming summer. (WAM)
Wizz Air expands its services to Lebanon + Azerbaijan: Low-budget airline Wizz Air Abu Dhabi is launching three weekly flights to Beirut, effective from 4 June. The airline also announced it was launching flights to Azerbaijan’s Gabala International Airport, effective from 19 June. (Statement)

Tariffs and LNG trade updates from the US

Honda turns to US-based battery production to avoid tariffs: Japanese car manufacturer Honda will start sourcing batteries for 400k of its hybrid cars sold in the US from Toyota’s US factory starting in FY 2025, Asharq Business reports. Honda has also decided to start producing its next-generation Civic hybrid car in Indiana instead of Mexico to avoid potential tariffs on one of the manufacturer's top-selling models.

ICYMI: US President Donald Trump announced plans for a new wave of tariffs last month that will see the country hit auto, semiconductor, and pharma imports with 25% duties. Trump did not announce a rollout date for the tariffs but said more details will likely be revealed by 2 April.

Trump’s April tariffs could end up being more expansive than thought: Trump aides are reportedly preparing to roll out a tariff regime that would impose tariffs on “goods from most countries that trade with the United States” next month, the Washington Post reports, citing sources familiar with the White House’s internal planning. The new tariffs would hit imports worth multi-tns, with one proposal suggesting grouping the US trading partners into three tariff rate categories — low, medium, or high.

Calendar

MARCH

24-25 March (Monday-Tuesday): Airbus Summit, Toulouse, France.

APRIL

2-4 April (Wednesday-Friday): Global Supply Chain and Logistics Summit, Amsterdam, The Netherlands.

3-4 April (Thursday-Friday): Africa Supply Chain Optimization, Johannesburg, South Africa

10 April (Thursday): Gulf Ship Finance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East Exhibition and Conference, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

16-17 April: Global Ports Forum, Dubai, UAE.

28 April-2 May: 7th Export Capabilities Exhibition (Iran Expo), Tehran, Iran.

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

27-29 May (Tuesday-Thursday): Saudi Warehousing & Logistics Expo, Riyadh, Saudi Arabia.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

5-6 June (Thursday-Friday): Supply Chain & Logistics Innovation Summit, Amsterdam, Netherlands.

11-13 June (Wednesday-Friday): Sustainability World Summit, Frankfurt, Germany.

17-19 June (Tuesday-Thursday): Terminal Operations Conference & Exhibition, Rotterdam, Netherlands.

19 June (Thursday): East Med Maritime Conference, Athens, Greece.

25-26 June (Wednesday-Friday): Decarbonizing Shipping Forum, Hamburg, Germany.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics, Jakarta, Indonesia.

SEPTEMBER

4-10 September (Thursday-Wednesday): Intra-African Trade Fair, Algiers, Algeria.

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

OCTOBER

1-2 October (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

14-15 October (Tuesday-Wednesday): Investing in Africa Conference and Expo, London, UK.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

EVENTS WITH NO SET DATE

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase two of Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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