Good morning, nice people. It’s a packed issue for the week’s start, with M&A, aviation, and port updates from UAE and Algeria. We also have a rundown of the latest PMI reports from Egypt, KSA, and UAE. Let’s dive right in.
WATCH THIS SPACE-
#1- Egypt’s gas infrastructure ready for peak season: Egypt has ramped up its gas supply capacity for the summer, adding four floating storage and regasification units (FSRUs) with a combined capacity of 2.7 bcf/d, the Oil Ministry said in a statement. The lineup includes the soon-to-be replaced Hoegh Galleon, already stationed at Ain Sokhna since last year, the recently arrived Energos Eskimo and Energos Power, which will be moored at the Sumed and Sonker terminals in Sokhna, alongside the Winter, likely the unnamed Turkish vessel we reported on in May, which will operate at the United Gas Derivatives Company berth in Damietta.
The terminals hosting the FSRUs have been prepared and tested to accommodate the vessels, with upgraded berths now linked to the national gas grid after a number of national companies wrapped marine works, new pipelines installations, and operational tests.
Egypt is also working with Jordan to add a fifth vessel — the Energos Force — which is currently en route to Damietta. The vessel will eventually dock at Jordan’s port of Aqaba to be connected to the Arab Gas Pipeline by the end of July. The unit’s added capacity — about 750 mcf/d of regasification capacity — will be shared between the two countries to improve their emergency contingencies.
#2- Saudi, Indonesia to cooperate on aviation fuel: Saudi and Indonesian companies signed agreements and MoUs valued at some USD 27 bn for investments in various sectors, including in aviation fuel, clean energy, and petrochemicals,state news agency SPA reported last week. The agreements were signed during the first meeting of the Saudi-Indonesian Supreme Coordination Council, coinciding with the visit of President Prabowo Subianto to Riyadh.
What we know: No details about the scope and size of the jet fuel collaboration were disclosed, but we know that Indonesian firm PT Pertamina has inked a jet fuel services with Saudi renewable energy services provider Alshams Energy, Indonesia Business Post reported on Thursday. PT Pertamina is also collaborating with Acwa Power on clean energy projects including 500MW of renewable energy and green hydrogen projects, according to a press release.
DATA POINT- Saudi-Indonesian bilateral trade amounted to USD 31.5 bn in the last five years, making the Kingdom Indonesia’s top trading partner, SPA reported. Trade volume has also risen from USD 4.76 in 2020 to USD 7.1 in 2023, with Saudi crude and Indonesian cars being the largest traded goods, according to the Observatory of Economic Complexity.
#3- BlackRock is reportedly in talks to sell its stake in Aramco’s natural gas pipeline network back to the Saudi state-owned oil company, Bloomberg reported on Thursday, citing people familiar with the matter.
Part of a regional trend? If the transaction goes ahead, it will mark the second BlackRock divestment from pipelines assets in the region after ADQ-backed alternative investment firm Lunate’s purchased a 40% stake in Adnoc’s oil pipeline network from BlackRock and fellow private equity giant KKR & Co earlier this year.
BACKGROUND- The US investment firm, as part of a consortium, bought a 49% stake in Aramco’s pipelines’ leasing asset back in 2021 for USD 15.5 bn. A potential buy-back would see the oil giant up its stakes in Saudi Arabia’s vital energy infrastructure.
ALSO FROM KSA- Construction on a SAR 689 mn local logistics corridor in Jeddah kicked off, connecting Jeddah Islamic Port to the Al Khumrah logistics zone to streamline the movement of over 8k trucks daily, state news agency SPA reported last week.
The details: The 17-km project includes two lanes in each direction and over 12 suspension bridges, and is scheduled for completion by the end of 2028. The corridor is expected to increase the operational capacity of Jeddah Islamic Port by more than 10%.
#4- Iraq’s General Company for Iraqi Ports (GCPI) is close to selecting a global operator for the country’s new Grand Faw Port, whose construction is nearing completion, GCPI Director-General Farhan Al Fartousi told INA on Thursday. The winning firm has not been disclosed but a contract will be awarded soon.
REFRESHER- Iraq shortlisted 11 firms back in November 2024, including China Merchants Port Group Co and state-owned Cosco, Taiwanese container shipping line Evergreen, French liner group CMA CGM, Mediterranean Shipping Company (MSC), India’s Adani, UAE-based ABM Global Shipping, and Philippines-based International Container Terminal Services (ICTSI).
Background: The port is set to commence operations in 2026, with a maximum capacity of 3.5 mn containers annually expected by 2028. The port will serve as a key enabler of the country’s Development Road Project, which seeks to establish Iraq as an intermodal transhipment hub connecting to Turkey via road and rail covering 1.2k km. Regional players, including the UAE, Turkey, and Qatar, have all pledged to back the project.
MARKET WATCH-
#1- Oil prices saw a sizable dip this morning after Opec+ announced a larger-than-expected output hike for August, Reuters reports. Brent crude futures dropped USD 0.47 to USD 67.83 a barrel by 03.27 GMT, while US West Texas Intermediate (WTI) futures declined by USD 0.95 to trade at USD 66.05 a barrel.
This comes after the oil group agreed over the weekend to raise production by 548k barrels per day in August, accelerating its plan to return supply to the market and exceeding analyst expectations, according to a statement from the group. The August hike is larger than previous monthly increments of 411k bbl / d for May, June and July. The group, again, cited a steady global economic outlook and healthy market fundamentals, including low oil inventories, for the decision.
Getting closer to the finish line: With the August increase, Opec+ will have restored over 1.9 mn bbl / d, out of a total of 2.2 mn bbl / d in voluntary cuts, according to Reuters calculations. This is in addition to a separate 300k bbl / d increase granted to the UAE. The adjustments are separate from other production cuts amounting to about 3.7 mn bbl / d that remain in place.
Opec+ will meet on 3 August to decide on production levels for September, noting that the return of supply could be paused or reversed depending on market conditions.
Meanwhile, Aramco is set to bump its flagship Arab Light Crude’s price in August to USD 2.20 above market average for Asian markets, according to a company document seen by Bloomberg. The bump amounting to USD 1 was higher than traders’ expectations of USD 0.65, signaling further confidence in a healthy market.
#2- Baltic index snaps losing streak: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — was up 0.1% to 1,436 points on Friday. The capesize fell 2% to 1,855 points, while the panamax gained 0.9% to 1,520 points. The small supramax index climbed 2.8% points to settle at 1,081.
#3- The Drewry World Container Index fell by 5.7% to USD 2,812 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.
DATA POINT-
Jordan’s Aqaba Container Terminal (ACT) saw its container handling volume increase by 24% y-o-y to 468k TEUs in 1H 2025, according to a statement released on Thursday. The number of vessels processed by ACT climbed by 46.5% y-o-y — based on our calculations — to 293 vessels in 1H 2025, while the number of trucks rose by 30% y-o-y to 282k trucks during the same period.
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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.
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.




