Egypt to land its first permanent regasification unit in 2027 at USD 200 mn cost

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What we're tracking today

TODAY: Egypt's first onshore regas unit expected in 2027. PLUS: Maritime’s mutual ins. sector sees record high underwriting loss

Good morning, friends. It’s another brisk issue as we move closer to the weekend, with regional supply chain and trade updates, as well as global IPO news from Malaysia’s top port operator. We also dive into the state of mutual ins. clubs in the maritime sector amid record underwriting losses. Shall we?

WATCH THIS SPACE-

#1- SILZ to plan expansion as first-phase leases exceed 55% of project: Saudi Arabia’s Riyadh Special Integrated Logistics Zone (SILZ) has leased 55% of its first phase’s land area and is moving to plan phase two, SILZ Chief Operating Officer Mohammed Alasseri told Zawya. The first phase spans 1 mn sqm of leasable land, whereas the second is planned to cover 1.6 mn sqm.

Who’s moving in? Current tenants include fast fashion giant Shein; global tech player Lenovo; industrial robot-maker Sapphire, a JV comprising Japan’s Softbank and PIF-owned Alat; and logistics player Unipart, among others.

About SILZ: Launched in 2022, SILZ is Saudi Arabia’s first special economic zone and the national logistics platform’s inaugural project. Located in the vicinity of King Khalid International Airport, the zone is planned to cover more than 3 mn sqm when all its phases are developed. Permitted activities cover light assembly, manufacturing, repair, trade, and logistics services — targeting sectors like aerospace, precious metals, ICT, consumer goods, pharma, and perishables.

#2- Turkey eases US levies ahead of talks: Turkey has cancelled additional levies and import bans it imposed on certain US products in 2018, ahead of Turkish President Recep Tayyip Erdoğan's visit to the US tomorrow to conclude a trade agreement, Reuters reports, citing the country’s official gazette (pdf). The duties — scrapped on Monday — had affected cars, fruit, rice, tobacco, cosmetics, solid fuels, and chemical products.

Background: The scrapped duties were originally imposed in retaliation for US tariffs on steel and aluminum, introduced by President Donald Trump during his first term.

ICYMI- Trump imposed a 15% tariff on Turkey in July — as per a list placing countries into three groups depending on trade surplus. Most of the Gulf falls into the first group, hit by a minimum of 10%.

#3- Amman Civil Airport to reopen this year: The expansion and reconstruction of Jordan’s Amman Civil Airport will wrap up before the end of the year, the Jordan Times reports, citing comments made by Jordan Airports’ Company Director General Ahmad Azzam. The airport is in line to become one of Jordan’s backup airports, Al Mamlaka reported on Monday.

#4- MMC Port clinches IPO greenlight: Malaysia’s largest port operator, MMC Port Holdings, has received regulatory approval for what is set to be the country’s largest IPO in 13 years, Reuters reports. The listing will float some 30% of the firm’s issued capital — roughly 4.3 bn shares — most of which is earmarked for Malaysian and foreign institutional investors. Retail investors can purchase up to 284.8 mn shares. The exact timeline for the listing was not disclosed.

We knew this was coming: MMC Port Holdings had filed a draft prospectus for its IPO with Malaysia’s securities regulator in July, with the listing expected as early as 2H 2025, unnamed sources told the newswire at the time.

A formidable portfolio: MMC’s portfolio boasts six ports, owns over 1.6k acres of warehousing and distribution centers, and provides a range of marine and logistics services, according to its website. MMC also holds a 12% stake in the JV that owns the Red Sea Gateway Terminal in Jeddah, KSA.

MARKET WATCH-

#1- Oil prices increased this morning on the back of market signals of tightening supply after a report showed declining US stockpiles, Reuters reports. Brent crude futures went up by USD 0.19 to reach USD 67.82 / bbl by 04.00 GMT, while US West Texas Intermediate (WTI) also surged by USD 0.21 to trade at USD 63.62 / bbl.

ALSO- Saudi crude oil exports in July fell to their lowest level in four months, dropping to 5.99 mn bbl / d from June’s 6.14 mn, Reuters reports, citing data from the Joint Organization Data Initiative. Crude production slipped to 9.20 mn bbl / d in July from 9.75 mn a month earlier, while refinery intake rose 10% m-o-m to 2.98 mn bbl / d. Direct crude burn dropped to 608k bbl / d from 674k over the same period.

#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 — rose 28 points to 2,200 points on Tuesday, buoyed by the large-size segment. The capesize gained 104 points to 3,469, while the panamax index declined 23 points to 1,799, its lowest since 4 September. The smaller supramax index remained steady at 1,486 points.

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CIRCLE YOUR CALENDAR-

Turkey will host the Global Freight Summit on Sunday, 28 September until Wednesday, 1 October in Istanbul. The summit will host over 330 attendees and more than 250 firms for policy and knowledge and strategies exchange between forwarding partners.

The UAE will host the African, Middle East, and Islamic Finance Aviation 100 Awards on Monday, 29 September until Wednesday, 1 October in Dubai. The event aims to highlight and reward the most remarkable transactions closed by airlines and aviation manufacturing and leasing firms.

The UAE will host the Global Rail Transport Infrastructure Exhibition and Conference on Tuesday, 30 September until Thursday, 2 October in Abu Dhabi. The event will be hosted by Etihad Rail and is set to welcome over 200 global speakers and upwards of 20k industry attendees to share innovative solutions and develop partnerships.

Saudi Arabia will host the Saudi Maritime and Logistics Congress on Wednesday, 1 October and Thursday, 2 October in Dammam. It will host over 200 registered exhibitors and some 15k attendees from over 90 countries to discuss AI-powered fleet optimization, shifts in global trade, and intelligence-driven infrastructure.

The UK will host the Marine Environment Protection Committee Extraordinary Session from Tuesday, 14 October until Friday, 17 October at the International Maritime Organization’s (IMO) HQ in London. The session is set to see the intergovernmental body formally adopt its Net-Zero Framework — rolling out new fuel standards for ships and a global pricing mechanism for emissions.

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

Egypt to get its first onshore regasification unit in 2027

Egypt’s nat. gas supply chain infrastructure to get a boost in 2027: Egypt’s first onshore regasification unit will begin operating in August 2027 at a cost of USD 200 mn, a government source told EnterpriseAM. The unit will be set up at the idle Idku liquefaction facility in partnership with Shell and Petronas.

BACKGROUND- We first heard about the project in May — at the time it was said that the plant will have an initial capacity of around 750k cubic meters per day, which will increase to 1 mn cubic meters per day at a later stage.

Why does Egypt need it? The plant will help cut down on the cost of importing energy and will reduce the country’s reliance on leased regasification units. Egypt will have four regasification vessels leased by the end of 2026, with a combined capacity of 3 bn cubic feet per day, to help meet rising energy demand — the cost of leasing a regasification unit exceeds USD 200 mn a year, making it more feasible to set up a permanent facility.

Who owns what: Shell and Petronas together control about 71% of Idku and hold operating rights under a 25-year contract expiring in 2029. The government — represented by EGPC and EGAS — holds 24%, while France’s Engie owns the remaining 5%.

The state plans to take over sooner than expected: Shell and Petronas will receive utilization fees for two years after the plant is up and running in exchange for their stakes in the facility, after which full operating rights for both the Idku plant and the new regas unit will revert to the Egyptian state, the source added.

A change in Idku’s function: The plant had been used to liquefy gas for exports since it came online back in 2005, but operations halted due to a shortage of feed gas.

Still a liquefaction plant, for now: Shell and Petronas recently exported an LNG cargo from the Idku liquefaction plant and have a second shipment slated for next month, a government source told us. The Madbouly government believes the move to resume LNG exports will encourage international firms to increase their investment in the sector.

SOUND SMART- Regasification warms imported LNG from its super-cooled liquid form into a gaseous state, which can then be fed directly into the grid for domestic use. Liquefaction does the opposite, cooling natural gas to shrink it into liquid form (LNG) for storage and export.

Egypt’s trade deficit hikes up 20.2% y-o-y in FY 2024-2025 to USD 50 bn

Egypt’s trade deficit rose 20.2% y-o-y in 2024 to record USD 50 bn, according to state statistics agency Capmas data (pdf). Exports rose 6.5% y-o-y to USD 45.3 bn, while imports climbed up 13.2% y-o-y to USD 95.3 bn.

It's shaky everywhere, even on a global scale. Trade policy uncertainty “has escalated to unprecedented levels,” driven by industrial policy, rising competition for raw materials, and concerns over trade imbalances, according to UNCTAD’s latest Global Trade Update (pdf). To build resilience to the trend of growing uncertainty, export markets need to diversify and actively participate in international agreements, the report warned.

Alexandria Port stood out as Egypt’s top operating port, accounting for some 31.1% of total exports and 22.1% of total imports last year. This was followed by Cairo’s airports — which sent out 14.8% of exports and received 20.8% of total imports. Ain Sokna Port followed in the way of imports, hauling in 12.3%, while the Tenth of Ramadan Dry Port came in third in terms of exports, having sent out 10.4% of exports last year.

A closer look: Non-oil exports rose 14.4% y-o-y to USD 39.3 bn in 2024 — making up the brunt of the country’s total exports. Non-oil imports increased almost 9.2% to USD 79.2 bn during the same year. On the flip side, oil and gas exports amounted to USD 5.5 bn in 2024 — decreasing nearly 29% y-o-y — while oil and gas imports surged nearly 38.3% y-o-y to USD 16.1 bn.

Manufactured goods stood out as our top export product — with fully manufactured goods amounting to 54.1% of all non-petroleum goods exported. Of this, gold and gold-plated platinum came in first at USD 3.2 bn, followed by ready-made clothing and accessories at USD 2.8 bn, then plastics and iron products tied in third place — each valued at USD 2.3 bn.

A number of key imported goods decreased in total value. Corn imports fell 8.5% y-o-y last year to record USD 2.3 bn, imports of wood and wooden products fell 2.4% y-o-y to USD 1.2 bn, and crude oil imports plummeted by nearly half to USD 900 mn. Intermediate goods led the way in terms of imports, making up 35.8%, followed by fuel at 17.3%, and non-durable consumer goods at 16%.

KSA stood out as a key partner in both departments — receiving nearly 7.7% of Egypt’s total exports (USD 3.5 bn) and accounting for 8.3% of all imports (USD 7.9 bn). Looking East, China was Egypt’s top import source, responsible for some 16.5% of total imports — recording a total of USD 15.7 bn. Turkey held a near 7.6% share of total exports — recording a total of USD 3.4 bn. The US also deserves an honourable mention — delivering 8% of total imports.

Fires, Red Sea turmoil drive record losses for the maritime protection & indemnity ins. clubs

Fires, geopolitical tensions are driving up the costs of mutual ins. coverage for the maritime industry. The International Group of Protection and Indemnity (P&I) Clubs — which covers liability for 90% of global tonnage — reported an underwriting loss of USD 312 mn in 2024-2025, according to major independent maritime ins. broker Lockton’s Market Trends report. More frequent fires aboard ships, war losses on the back of turmoil in the Red Sea, rerouting ships via the Horn of Africa, and higher tariffs were cited as main drivers for greater exposure to damage and delays.

But first, what is P&I ins. ? P&I coverage is a form of mutual maritime ins. for third-party liabilities for ship owners and operators. Unlike traditional ins. that covers physical damage to ships and cargo, P&I covers loss of life, crew injury, pollution damage, collision accidents, as well as dock damage. Usually, P&I is covered by mutual associations called P&I clubs, which pool resources from membership to cover claims.

Claims reach a decade-long peak: The FY 2024-2025 saw a high net claim frequency and severity, hitting USD 3.1 bn — the highest it’s been in a decade, the report found. Although attritional claims — smaller, routine claims — met expectations, higher-value and pool claims — large claims that are shared by club members — increased significantly, outpacing paid premiums.

The losses effectively erased modest gains made in the previous two years, leaving the group's net underwriting down around USD 98 mn.

But investments were a life-saver: Investment returns were a significant contributor to offsetting losses, helping to balance out less favorable underwriting outcomes. Collectively, the clubs achieved a market total return of USD 710 mn, with an average investment return of USD 59 mn, representing a 6% gain.

Premiums remain flat: Despite clubs pushing for higher rates, income from premiums was relatively flat, driven largely by new ships entering service after the pandemic hiatus — otherwise known as the “churn effect.” The average premium collected per gross ton of shipping was USD 2.87 in 2024-25, a decline from the previous year’s USD 3.14.

SOUND SMART- The churn effect entails firms replacing aged vessels — which incur higher premiums — with newbuilds to secure lower premiums per gross tonnage.

Future outlook: A preliminary analysis of 2025 indicates that claims will be less intense than 2024’s record level, the report said. Lockton estimates market-wide general increases in the range of 5-10%, while predicting a 0-5% increase in re-ins. costs for 2026.

About Lockton: Founded in 1966, Lockton is one of the largest ins. brokerages, active in more than 140 locations, employing 13.1k ins. and risk specialists, and serving more than 65k clients, according to its website.

Updates on trade, aviation, ports from the UAE, Qatar, Syria, Oman and Morocco

TRADE-

Abu Dhabi and China look to boost trade ties: The Abu Dhabi Chamber of Commerce and Industry (ADCCI) signed an agreement with Sino-International Entrepreneurs Federation (SIEF) to boost trade, investment, and private sector collaboration between the UAE and China, according to a press release.

Details: Under the agreement, the two countries will open communication channels for the private sector to boost activity, exchange trade and economic expertise, and organize joint events, including trade and economic delegations.

IN CONTEXT- Trade between the two countries came in at USD 89.2 bn last year, the statement read, and is set to hit USD 200 bn by 2030. Last year, the number of Chinese firms registered with the ADCCI was up 69.4%, while Emirati investments in China increased by 120%.

AVIATION-

Qatar + China expand aviation partnership: Qatar Airport Company (Matar), the operator of Doha’s Hamad International Airport, inked an MoU with China’s Beijing International Airport Group (CAH) — which operates Beijing Daxing Airport — to improve passenger and cargo operations, according to a statement. The move aims to enhance service design as well as tech and logistical support at both airports.

REMEMBER- Qatar Airways and China Southern Airlines are set to increase their bilateral direct service between Doha and Beijing to three weekly flights — a partnership that falls under a 2024 inked MoU that aims to expand the pair’s existing codeshare agreement.

Syria, Oman team up on air transport: The Syrian and Omani governments have inked an air transport services agreement, Syria’s state-owned outlet Sana reports. The pact updates the previous aviation agreement signed in 1992.

PORTS-

Chinese cranes heading to Morocco next year: Marsa Maroc will receive 18 container gantries from China’s Shanghai Zhenhua Heavy Industries (ZMPC) by 4Q 2026, Morocco World News reports. The port operator is expected to deploy the equipment across its terminals in Casablanca and the future Nador West Med Port.

ZPMC’s been supplying African ports: Last year, the Chinese company secured AED 420 mn worth of supply contracts from AD Ports for new crane equipment at Angola’s Luanda Terminal and the Republic of Congo’s New East Mole Terminal in Pointe Noire.

Trade and Boeing diplomacy updates from across the world

EU + Indonesia finalize freetrade pact: The EU and Indonesia finalized a freetrade agreement that will remove duties on most bilaterally traded goods, according to a statement. The agreement — finalized after nine years of negotiations — is expected to double trade between the country and the bloc within the first five years of its taking effect on 1 January 2027, Reuters reports.

The details: Indonesia will remove duties on 98.5% of EU goods, whereas Indonesian goods will benefit from zero tariffs in 90% of the EU’s market. EU cars will have zero duties within 5 years, down from 50%, while levies on machinery and appliances will be gradually reduced from 30% to zero, Bloomberg reports.

Trade in numbers: Trade between the EU and Indonesia reached EUR 27.3 bn in 2024 — comprising EUR 9.7 bn in EU goods and EUR 17.5 bn in Indonesian products.

US pressures China on Boeing order as trade talks linger: US officials met with senior Chinese leaders in Beijing to propose an arrangement where China would commit to purchasing more Boeing jets, Reuters reports, citing comments made by Washington’s Ambassador to China David Purdue. This comes almost one month after reports linked Boeing and China to talks over a 500-jet order.

REMEMBER-Aircraft orders are emerging as a bargaining chip — or perhaps a showing of goodwill — in trade talks with the US, with several global and regional players moving on big Boeing orders as part of national strategies to appease the US. The Boeing agreement with China is “very important” to US President Donald Trump, Purdue was quoted as saying.

ICYMI- Turkey was the latest nation to be floating a mega Boeing order (250 jets) amid trade talks and ahead of the high-level meeting between Turkish President Recep Tayyip Erdoğan and US President Donald Trump.

Calendar

SEPTEMBER

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

25 September (Thursday): World Maritime Day.

28 September-1 October (Sunday-Wednesday): Global Freight Summit, Istanbul, Turkey.

29 September-1 October (Monday-Wednesday): African, Middle East, and Islamic Finance Aviation 100 Awards, Dubai, UAE.

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

OCTOBER

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

4 October (Saturday): Syria Recovery and Investment Forum, Abu Dhabi, UAE.

6-8 October (Monday-Wednesday): Maritime Cyprus Conference, Limassol, Cyprus.

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

7-9 October (Wednesday-Thursday): World Aviation Festival, Lisbon, Portugal.

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.

14-16 October (Tuesday-Thursday): AntwerpXL, Antwerp, Belgium.

15 October (Wednesday): Global Trade Review, Cairo, Egypt.

16-18 October (Thursday-Saturday): International Forum and Expo on Mobility, Transport and Logistics (Logiterre), Casablanca, Morocco.

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.

9-11 November (Sunday-Tuesday): TransMea Expo, Cairo, Egypt.

11-13 November (Tuesday-Thursday): Freightcamp, Bangkok, Thailand.

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

18 November (Tuesday): ShipTek International Conference and Awards, Al Khobar, Saudi Arabia.

24-26 November (Monday-Wednesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

DECEMBER

9-10 December (Tuesday-Wednesday): Rail Industry Summit, El Jadida, Morocco.

16-17 December (Tuesday-Wednesday): Saudi Airport Exhibition, Riyadh, Saudi Arabia.

JANUARY 2026

19-23 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-28 January (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh, Saudi Arabia.

27-28 January (Tuesday-Wednesday): Middle East ProcureTech Summit, Dubai, UAE.

FEBRUARY 2026

4-5 February (Wednesday-Thursday): Breakbulk Middle East, Dubai, UAE.

4-5 February (Wednesday-Thursday): MRO Middle East, Dubai, UAE.

25-27 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

MARCH 2026

10-12 March (Tuesday-Thursday): World Cargo Symposium, Lima, Peru.

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