Adnoc Gas inks three-year LNG agreement with Germany’s Sefe

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TODAY: Adnoc inks another EU LNG agreement + UAE’s Khazna makes moves in Italy

Good morning, nice people. It’s a calm morning on the regional logistics front as we kick off the week slowly with a smattering of regional trade and data center updates. But first, another day, another Trump tariff threat…

THE BIG LOGISTICS STORY- The EU hits back: The European Commission said it would extend its suspension of retaliatory tariffs on the US until early August, keeping the door open for a negotiated solution to US President Donald Trump’s latest protectionist threats. Trump is pushing ahead with a 30% blanket tariff on EU imports starting 1 August unless better offers are made, according to White House economic adviser Kevin Hassett.

Europe isn’t exactly staying quiet: EU leaders are pushing to avoid escalation, but they do plan to ramp up engagement with other US trading partners affected by the tariffs for potential coordination. Some — like France’s Emmanuel Macron — are calling for countermeasures including the potential use of the anti-coercion instrument, the bloc’s most powerful trade tool, though EU Commission chief Ursula von der Leyen said there are no plans to use it at this point.

The story grabbed headlines in Reuters, Bloomberg, the FinancialTimes, Politico, and the Guardian.

WATCH THIS SPACE-

#1- Syria, Azerbaijan partner up on gas: Syria’s Energy Ministry has inked an MoU with State Oil Company of Azerbaijan Republic (Socar) to export Azerbaijani natural gas to Syria through Turkey, Asharq Business reports, citing a post on X by Syrian Energy Minister Mohammed Al Bashir. Details on the volume of natural gas to be delivered have not been disclosed.

Syria’s trade links: Syria’s Al Bashir agreed with Turkey back in May on the supply of 6 mn cbm of natural gas per day to power plants in Syria through a natural gas pipeline between Kilis, Turkey, and Aleppo. Turkey was set to begin exporting nearly 2 bn cbm of gas annually to Syria during the same month. Qatar also plans to supply Syria with 2 mn cubic meters of natural gas per day to boost the country’s output by 400 MW back in March.

#2- Is G42 planning a hyperscale data center in Vietnam? Abu Dhabi state-backed AI firm G42 is reportedly in discussions to establish a USD 2 bn hyperscale data center project in Ho Chi Minh City, according to an investment proposal sent by local authorities to Vietnam’s prime minister that was picked up by Reuters and the Vietnamese press last Thursday. The “AI factory” will likely include data centers and advanced infrastructure for cloud computing and processing.

What we know: G42 will be part of a consortium of Vietnamese companies — FPT Corporation, VinaCapital Investment Fund, and Viet Thai Investment Group — planning to build the centers in Ho Chi Minh City. Local authorities are asking Vietnam’s Prime Minister Phạm Minh Chính to issue a special mechanism for international projects to override legislative and policy hurdles faced by investors.

Not the first Emirati AI venture in Vietnam: The UAE’s Benya Group and Vietnam’s Vingroup earmarked USD 3.5 bn to develop a hyperscale data center in the Southeast Asian country last year. The move also comes as part of G42’s domestic and international expansion drive, which is seeing it commit tens of bns USD in the US — as well as develop a 5 GW US-UAE data center complex in Abu Dhabi.

#3- Moroccan flag carrier Royal Air Maroc (Ram) is in talks with Brazilian planemaker Embraer for an aircraft order, with eyes on the small aircraft size category, Reuters reported last week, citing an unnamed source familiar with the matter. The airline is also in talks with multiple unnamed planemakers to order up to 200 jets — including Embraer’s E2 aircraft line, the newswire said, quoting Brazilian news outlet Folha de S.Paulo.

The carrier’s current fleet…: Ram’s fleet consists of 52 aircraft, including five Boeing models, one from ATR, and one from Embraer, according to the airline’s website. Its commercial Boeing models include 28 737-800s, six 787-9 Dreamliners, five 787-8 Dreamliners, two 737 MAX 8s, and a 767-300 Cargo jet. The fleet also features six ATR 72-600 aircraft and four Embraer 190s.

…and its expansion plans: Ram intends to quadruple its fleet in anticipation of Morocco co-hosting the World Cup in 2030, as Rabat plans to raise airport capacity to 78 mn passengers per year. Ram was reportedly close to clinching an order of some two dozen Boeing 787 Dreamliners, up to 50 Boeing 737s for short-haul routes, and 20 Airbus A220s for regional travel last month during the Paris International Airshow.

#4- Aramco eyes purchase pact with US LNG export project: Saudi Arabia-based Aramco is reportedly looking to strike an agreement with Commonwealth LNG to purchase 2 mn tons of LNG per annum from the firm’s planned LNG export facility in Cameron, Louisiana, unnamed sources told Reuters last week. The Saudi energy giant is also considering pacts with other US LNG export ventures, namely with Delfin LNG’s floating plant in the Gulf of Mexico and Energy Transfer’s Lake Charles facility in Louisiana, sources told the newswire.

Aramco’s appetite for US LNG: Aramco and US LNG player NextDecade inked a 20-year agreement for Aramco to buy LNG from Train 4 of NextDecade's Rio Grande LNG facility last April. Aramco also signed a non-binding agreement for a 25% stake in Sempra's Port Arthur LNG export plant in Texas last year.

Part of a bigger push: Aramco is making a play to become “a leading global LNG player,” Aramco’s upstream business president Nasir Al Naimi said back in June 2024. The company is securing a foothold in the LNG supply chain to capitalize on its higher margin compared to crude — and aligning with the Saudi Arabian government’s overall strategy to diversify away from oil. The move involves a multi-bn USD plan that spans buying up stakes in the US, being shortlisted for an LNG assets purchase in Singapore, and backing an LNG stake purchase in Peru LNG.

MARKET WATCH-

#1- Oil prices rose in early morning trading, tacking on gains of over 2% since Friday as investors await repercussions from US sanctions on Russia,Reuters reports. Brent crude futures gained by USD 0.15 to USD 70.51 a barrel by 04.00 GMT, while US West Texas Intermediate (WTI) futures inched up USD 0.14 to trade at USD 68.59 a barrel.

Meanwhile, Opec sees oil demand climbing: Global oil demand will average 105 mn bbl/d this year, with Opec expecting demand to grow to average 106.3 mn bbl/d in 2026 and then climb to 111.6 mn bbl/d in 2029, according to Opec’s 2025 World Oil Outlook (pdf). Demand will continue to grow through the mid-century, led by rising use in road transportation, aviation, and petrochemicals.

Demand is set to rise to almost 123 mn bbl/d by 2050, around 3 mn bbl.d higher than the group’s previous forecast. Consumption will increase roughly 9% from 2024 to 2030 — unchanged from last year’s forecast. India alone is expected to contribute an additional 8.2 mn bbl/d in demand by 2050.

Driving the growth: India, the Middle East, and Africa will drive the bulk of the demand growth, while Trump’s withdrawal from the Paris agreement and a slower EV penetration rate in Europe are seen as boosting the trajectory.

Opec+ will capture a larger share of the global oil market by 2050, expanding from around 47% this decade to 52%, as rival producers see growth weaken. The sector needs USD 18.2 tn to be spent by 2050, compared with USD 17.4 tn estimated last year, the group said.

BUT- the cartel’s outlook is contradicting: BP, Bank of America, the International Energy Agency, and Wood Mackenzie, all expect oil demand to peak within the next decade, Bloomberg reported last Thursday. Many of these forecasters point to slowing consumption in China and accelerating clean energy transitions as key turning points.

#2- Baltic index rises once again: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — increased 13.5% to 1,663 on Friday. The capesize increased 26.4% to 2,104 points, while the panamax climbed 8% to 1,860 points. The small supramax index inched up 3.1% to 1,219 points.

#3- The Drewry World Container Index fell by 5% to USD 2,672 per 40-ft container on Thursday, according to the latest index readings. The drop comes on the back of reduced demand for US-bound cargo and an indication that the recent climb in US imports — which occurred shortly after increased US tariffs — will not incur a lasting impact as previously projected.

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CIRCLE YOUR CALENDAR-

Intermodal Africa will kick off on Tuesday, 22 July and run till Thursday, 24 July in Beira, Mozambique. The forum will host over 300 senior government officials, industry leaders, academics, senior executives, and harbor masters in the ports, shipping, and logistics sector. Attendees and speakers will be coming from countries across the Middle East, Africa, and Europe.

Transport Middle East 2025 will kick off on Monday, 1 September and will run till Wednesday, 3 September in Salalah, Oman. The conference will host 35 international speakers and over 50 exhibitors from the maritime sector to discuss global transportation and logistics.

The Sustainable Maritime Industry Conference will take place on 3-4 September at the Ritz-Carlton Hotel in Jeddah. The event is set to gather over 60 speakers and more than 3k participants to discuss maritime decarbonization, digital transformation, regulatory frameworks, capacity building, and sustainable practices.

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

Adnoc Gas inks three-year USD 400 mn LNG agreement with Germany’s Sefe

Adnoc Gas will supply Germany’s state-owned energy firm Securing Energy for Europe (Sefe) with LNG under a three-year USD 400 mn agreement, according to a press release (pdf) released on Thursday. The LNG will be sourced from the Adnoc's Das Island liquefaction facility, with delivery of 0.7 mn tons of LNG set to begin this year.

This isn't Adnoc and Sefe's first rodeo: The oil giant inked a sales and purchase agreement (SPA) last November to supply SEFE with 1 mn tonnes of LNG a year from its Ruwais LNG project. The agreements come as SEFE looks to diversify its supply agreements away from Russia following its invasion of Ukraine, Reuters reported on Thursday.

Adnoc Gas has been ramping up LNG agreements, having inked agreements with German energy infrastructure firm EnBW, Malaysia’s state-owned oil and gas firm Petronas, as well as a USD 450 mn agreement with Japan’s Jera. Meanwhile, its USD 19 bn takeover offer for Australian gas player Santos would add 7.5 mn of annual LNG capacity to its roster.

IN OTHER TRADE NEWS-

Cypriot gas ? Egypt: Cypriot Energy Minister George Papanastasiou prematurely announced that Exxon Mobil has made a significant gas discovery at Cyprus’ Pegasus-1 well and that there were plans to send the gas to Egypt for liquefaction and re-export.

Don’t get your hopes up: “Announcing the gas find before an official statement was issued was ill-advised but more so was the mentioning that the gas would be sent to Egypt,” an industry source told industry publication Middle East Economic Survey (Mees). Exxon is advising caution and that it will need months to analyze the data before making the decision to send gas for liquefaction and re-export in Egypt.

Egypt’s been expecting Cypriot gas: Gas from Cyprus’ Cronos and Aphrodite fields will be coming our way, with agreements inked earlier this year between the two sides that will see the country ship natural gas from its offshore fields to be liquefied in facilities in Idku and Damietta before being re-exported to foreign markets.

REMEMBER- After becoming a net exporter of LNG in 2018 and signaling its intention to become an important energy exporter to the region and Europe, production falls and rising domestic demand led to Egypt having to ramp up imports to bridge the supply gap. Egypt has been looking to return to its status as a net LNG exporter; Mees sees that happening by 2027 after its Nargis and Nour fields come online.

Khazna to develop 500 GW capacity data center in Italy

Khazna + Eni join forces in Italy: Dubai-based Khazna Data Centers signed a head of terms agreement with Italian energy firm Eni to establish a joint venture to develop data centers in Italy, according to a press release (pdf ) released on Thursday. Khazna CEO Hassan Alnaqbi, Eni COO Guido Brusco, Emirati International Cooperation State Minister Reem Al Hashimy, and Italy's Enterprises and Made in Italy Minister Adolfo Urso signed the agreements. The investment ticket or timeline for the project have not been disclosed.

The details: Plans will initially include a 500 MW AI data center campus in Italy’s Lombardy region. The Milan AI Data Center Campus will be powered by Eni’s “blue power” low-carbon electricity source and will be generated from a combined cycle gas turbine power plant. The move brings decarbonized energy and advanced data center technology together for the first time in Europe, according to the press release.

The first step, but not the last: The campus will be the first step in a wider project, with the JV aiming to establish up to 1 GW of IT capacity in Italy as part of a wider bilateral agreement signed between Italy and the UAE in February. The ownership structure of the tie-up wasn’t disclosed.

Khazna’s global ambitions: Khazna recently partnered with Nvidia to develop AI factories across the Middle East and Africa (MEA) in June, months after it announced plans to enter the Turkish market in May, with plans to build a 100 MW AI-ready data center in Ankara’s Başkent Organized Industrial Zone.

Updates on roads, zones, and ports from UAE, Morocco, and Egypt

ROADS-

#1- Dubai's Roads and Transport Authority (RTA) awarded a AED 633 mn contract to develop Al Mustaqbal Street, according to a statement. The project — which will span from the intersection with Za'abeel Palace Street to Financial Center Street — includes building 1.7k meters of bridges and tunnels, while widening the road from three to four lanes in each direction. The improvements are slated to boost capacity by 33% to 8.8k vehicles per hour and cut travel time from 13 to 6 minutes. The upgraded corridor will serve major commercial hubs and benefit 500k daily users.

#2- Morocco to build third leg of Fez-Taounate road: The Moroccan government has started constructing the third phase of the Fez-Taounate Expressway — for MAD 324 mn (c. USD 36 mn) — to cut travel time between the two cities, as Morocco prepares to co-host the 2030 World Cup, Morocco World News reported on Thursday. The project’s third leg will be 19 km long, while the complete road will span 73 km — for a total budget of MAD 1.56 bn (c. USD 173.4 mn).

ZONES-

#1- Hayat Egypt adds USD 44 mn in new production lines at its Sokhna factory: Turkish sanitary product company Hayat’s local subsidiary Hayat Egypt will invest USD 44 mn (EGP 2.2 bn) to add new production lines at its existing facility in the Sokhna Integrated Zone, according to a SCZone statement. The expansion, spanning 30k sqm within Orascom Industrial Parks’ area, will focus on manufacturing non-textile hygiene products. The new lines are scheduled to begin operations by March 2026 and are expected to create over 400 direct jobs. Some 75% of output will be exported, aligning with Egypt’s broader strategy to boost exports and localize industrial production.

#2- El Sewedy land plot to host Turkish textile plant: El Sewedy Industrial Development has inked an agreement with Turkish textile player Bony to sell a 120k sqm plot in 10th of Ramadan City, according to a statement released on Thursday. The land plot — set to become a private freezone — is slated for the construction of an integrated textile factory at an investment cost of around USD 100 mn (c. EGP 4.9 bn) and is expected to launch by the end of 2026, the statement said. The facility will export textile goods to European and African markets.

PORTS-

#1-AD Ports partners up with CMF on supply chain: AD Ports has inked an MoU with the Critical Minerals Forum (CMF) to boost global critical minerals supply chains and meet the global demand for critical minerals used for electric vehicle production and decarbonatization, according to a statement published on Friday. AD Ports will leverage its infrastructure, ports network, terminals, and shipping routes in order to help the CMF diversify the supply chain using their network of stakeholders, miners, processors, manufacturers, and investors.

Delta Air Lines gets creative, sidestepping Trump’s 10% import tariffs

Delta repurposes new engines for US fleet: US carrier Delta Air Lines has been removing new engines from its Airbus jets — transporting them from Europe to the US — to install them in older aircraft and avoid President Donald Trump's 10% import tariffs, unnamed sources familiar with the matter told Bloomberg on Friday.

IN CONTEXT- The US-made Pratt & Whitney engines are meant for Delta’s Europe-made Airbus A321neo, which are currently unfit for service as the aircraft seats remain uncertified, according to the news outlet. Delta reportedly grabbed the new engines to accommodate a shortage, as many of their old A321s remain out of service due to issues such as contaminated metal powder within their original engine turbines.

The airline will continue to pull engines from the new planes until further notice. “We are not planning to pay tariffs on aircraft deliveries,” the news outlet quotes Delta Air Lines CEO Ed Bastian as saying. The airline has rerouted its Airbus jets through Japan before bringing them to the US to avoid large import costs.

EMEA ports are weathering global trade tensions effectively, Fitch reports

Ports in the Europe, Middle East, and Africa (EMEA) region seem mostly well-equipped to face global trade tensions and slumping economic growth, according to Fitch Ratings. The region’s ports saw increased volumes in 1Q 2025, and future turbulence can be mitigated by pricing power, geographic and cargo diversification, shipping line affiliations, non-volumetric revenue, and capex flexibility, the ratings agency found.

In quarterly terms: Economic turbulence, unpredictability, and effects on trade routes are still likely to directly impact volumes handled in EMEA ports. In 2Q 2025, port congestion data on European hubs is expected to show a surge, driven by the lead-up to the 9 July tariff deadline and an uptick in Asia-Europe shipments.

An unequal playing field: UAE giants DP World and AD Ports will see “low” overall impact stemming from US tariff effects, Fitch found. Both players have “medium” rating headroom, displaying a decent ability — or breathing room — to meet their financial obligations in light of incoming tariffs. Meanwhile, Belgium-based Euroports and Turkey’s Limak have “low” rating headroom, as their credit profiles had been strained before the US tariff debacle.

Calendar

JULY

22-24 July (Tuesday-Thursday): Intermodal Africa, Beira, Mozambique.

SEPTEMBER

1-3 September (Monday-Wednesday): Transport Middle East 2025, Salalah, Oman.

3-4 September (Wednesday-Thursday): Sustainable Maritime Industry Conference, Jeddah, Saudi Arabia.

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

7-10 September (Sunday-Wednesday): Comex Global Technology Show, Muscat, Oman.

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

25 September (Thursday): World Maritime Day 2025.

30 September - 2 October (Monday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi, UAE.

OCTOBER

The International Maritime Organization (IMO) is set to formally adopt the Net-zero Framework this month, stipulating new fuel standards for ships and a global pricing mechanism for emissions.

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

7-8 October (Tuesday-Wednesday): Global EV & Mobility Technology (GEMTECH) Forum, Riyadh.

13 - 17 October (Monday-Friday): The Marine Environment Protection Committee’s second extraordinary session, London, UK.

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

28-30 October (Tuesday-Thursday): Borneo International Maritime Week, Sarawak, Malaysia.

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.

24-26 November (Monday-Wednesday) The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh.

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

27-29 January (Tuesday-Thursday) Transport Middle East 2026, Abu Dhabi, UAE.

28-30 April (Tuesday-Thursday) Mediterranean Ports and Logistics, Porto, Portugal.

24-26 June (Wednesday-Friday) Transport Logistic & Air Cargo 2026, Shanghai, China.

7-9 July (Tuesday-Thursday) Asean Ports and Logistics, Kuala Lumpur, Malaysia.

17-19 November (Tuesday-Thursday) Intermodal Africa 2026, Luanda, Angola.

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

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

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