Kuwait’s KPC eyes pipeline lease plan to raise USD 7 bn

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What we're tracking today

TODAY: Kuwait’s pipeline leasing plans + AviLease, Hassana form JV for aircraft leasing

Good morning, friends. It’s another brisk read this morning as we inch closer towards the weekend, with updates on pipeline leasing plans from Kuwait and a new aircraft leasing JV from Saudi. We also take a deep dive into DNV’s flagship report, The Maritime Forecast 2050, to give you a rundown of what to expect ahead of the imminent IMO decarbonization rules. Shall we?

WATCH THIS SPACE-

#1- Humain eyes Blackstone, BlackRock to bankroll data centers: PIF’s Humain is reportedly in early-stage talks to partner with global private equity firms to pour USD bns into AI infrastructure and data centers, including Blackstone and BlackRock, Bloomberg reported yesterday, citing sources it said are familiar with the matter. The investment ticket seems to be big as Blackstone’s CEO Steve Schwarzman is involved in the talks, the sources said.

REFRESHER- EnterpreseAM sat down last week with CEO Tareq Amin to discuss the company’s ambitious vision for AI infrastructure in Saudi Arabia, and their new Arabic-first generative AI product Humain Chat. Humain began developing its first data centers in Saudi Arabia with an expected launch in early 2026, with facilities in Riyadh and Dammam slated to go online in 2Q 2026, each with an initial capacity of 100 MW.

#2- Egypt is mulling plans to set up six logistics centers for its products in several African countries, Foreign Trade Minister Hassan El Khatib said during a meeting. The plans also include positioning Morocco as a key hub for Egyptian exports into Africa — leveraging its accessibility to North and West African markets, El Khatib added, without disclosing further details.

#3- UAE’s Crescent Petroleum has offered to supply Iraq with some 100 mn standard cubic feet per day (scf/d) of natural gas to support its electricity generation needs, CEO Abdullah Al Qadi told Shafaq News last week. The company’s proposal — now under review by Iraq’s Electricity Ministry — also pitches scaling the supply up to 400 mn scf/d over three years to support up to 2 GW of electricity generation.

The gas will come from Kurdistan’s Khor Mor field in northern Iraq, which is co-developed by Dana Gas and Crescent Petroleum. The field is undergoing a USD 1 bn expansion project, scheduled for completion as early as 1Q 2026. The expansion is slated to boost the gas field’s capacity — currently yielding some 525 mscfd of natural gas — by 50%, data from early March shows. Khor Mor fulfills some 75% of the Kurdistan Region’s electricity needs, and its expansion is expected to achieve self-sufficiency for the region while generating surplus for the Iraqi federal government, Qadi said.

Iraq may need it: Iraq — which runs power supply shortages of up to 13 GW at peak times — is facing difficulties sourcing enough power, especially as the US terminated a waiver allowing the country to import Iranian electricity last May. Baghdad subsequently pivoted to Oman and Qatar for natural gas supplies, while targeting power self-sufficiency and a complete halt to natural gas imports by 2028.

#4- VietJet to receive super-delayed Boeing jet: Vietnamese budget airline VietJet is scheduled to receive its first Boeing 737 Max next Sunday as part of a USD 11.3 bn order for 100 jets the company made over nine years ago, Reuters reports, citing documents it has seen. A second jet will possibly be delivered in October, an unnamed source with knowledge of the matter told the newswire. Delivery delays due to industry-wide supply chain disruptions, especially for engines, have plagued the aviation industry in the last years, with disgruntled airlines adapting by resorting to leases and retrofits of aging jets.

The delivery is six years behind the initial schedule, which initially set deliveries for 2019-2023. The Vietnamese airline made another order worth USD 13 bn in 2018 for an additional 100 737 Max jets, comprising 80 Max-10s and 20 Max-8s. Its low-budget Thai subsidiary, Thai VietJet Air, was set to accept the delivery of the first dozen planes of that 2018 order — but none were delivered on the back of two crashes involving 737s and the pandemic.

VietJet pivoted to Airbus for its latest mega order: The airline inked an MoU with Airbus for a new order of 100 narrow A321neo aircraft with an option to order another 50 jets during the Paris Airshow back in June.

MARKET WATCH-

#1- Oil prices dropped this morning as the markets await the US Federal Reserve’s expected move to slash rates, Reuters reports. Brent crude futures decreased by USD 0.14 to reach USD 68.33 / bbl by 04.05 GMT, while US West Texas Intermediate (WTI) also shed USD 0.13 to trade at USD 64.39 / bbl.

ALSO- Opec+ mulls new maximum production capacity: Opec+ representatives are reportedly meeting in Vienna next Thursday and Friday to discuss a new methodology for assessing maximum production capacities for group members, Reuters reported yesterday, citing two unnamed delegates. Ministers requested the new mechanism from Opec’s headquarters back in May to serve as the reference point for 2027 production baselines. A decision by the ministers is expected later this year, one source said.

The rationale: The meeting comes amid discrepancies between members, with rising production capacities like the UAE, and others with declining capacities, including some African members. Angola opted to exit the group last year over related disagreements.

IN CONTEXT- The cartel has been increasing output since April, adding some 2.5 mn bbl / d and will continue monthly hikes through September 2026, fast-tracking the return of 1.65 mn bbl / d that was previously set to stay offline until end-2026. Members like Iraq and Russia have struggled to meet their production targets, while others like the Kingdom and the UAE have gained an advantage on the back of heavily investing in the energy sector, the newswire said.

#2-Marine fuel sales at the Fujairah bunker hub jumped to a four-month high of 650k cbm in August, a 1.5% increase from July, Reuters reports, citing Fujairah Oil Industry Zone data published by S&P Global Commodity Insights. The bulk of this growth came from low-sulfur marine fuels, which climbed 6.1% m-o-m to some 462k cbm. These fuels — namely low-sulfur fuel oils and marine gasoils — have experienced strengthening premiums, climbing to their highest levels so far this year in early September.

High-sulfur marine fuel sales, meanwhile, dropped by 8.2% m-o-m to some 189k cbm, following an 18-month peak in July. The drop was attributed to a narrowing price spread between low- and high-sulfur fuels, which had widened sharply the previous month. UAE supply may also tighten slightly due to the suspension of Sudanese oil imports, a key input for producing low-sulfur marine fuel in topping refineries, the newswire added citing trading sources.

#3- Baltic index is on the up and up: 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 2,154 points on Tuesday. The capesize gained 1.1% to 3,189 points, while the panamax index was down 1.8% to 1,968 points. The smaller supramax index eased 2 points to 1,491 points.

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CIRCLE YOUR CALENDAR-

The UAE will host the Syria Recovery and Investment Forum on Wednesday, 24 September in Abu Dhabi. The forum will host leaders in business, regional investors, policymakers, and advisory experts to develop practical solutions for Syria’s road to recovery and economic revival.

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 over 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.

Kuwait mulls pipeline lease in bid to raise as much as USD 7 bn

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Kuwait to raise funds via pipeline leases: The Kuwait Petroleum Corporation (KPC) is considering reviving a project — called Shaheen — to lease out and lease back its crude oil pipelines, AlArabiya reports. The proposed plan involves leasing 13 pipelines for a 25-year period, with KPC aiming to generate between USD 5-7 bn from the move. Discussions are still ongoing, and a final decision is yet to be made by the Cabinet.

The bigger picture: This follows reports of KPC’s plan to lease out its pipeline infrastructure to help fund a USD 65 bn investment plan supporting various business activities, including exploration and petrochemicals.

ADVISORS- Private banking firm Centreview Partners is reportedly advising the state-backed firm on the move.

In line with the regional trend: Saudi Arabia’s Aramco and the UAE’s Adnoc first made the move to lease their own pipelines in the late 2010s as part of a general push to optimize returns on their assets. Earlier this year, ADQ-backed alternative investment firm Lunate acquired a 6% stake from Italian gas network operator Snam SpA in Adnoc Gas Pipelines — which itself has lease rights to 38 pipelines from the parent company Adnoc. In 2021, Aramco signed a landmark USD 15.5 billion lease and leaseback with a consortium led by BlackRock — which recently took up a minority stake in the Saudi Bahrain Pipeline Company from Bahrain’s Bapco Energies.

ADVISORS- Private banking firm Centreview Partners is reportedly advising the state-backed firm on the move.

PIF’s AviLease forms new JV with Hassana Investment

An AviLease-Hassana JV incoming? PIF-owned aircraft lessor AviLease partnered with Tadawul-listed Hassana Investment Company to launch a new joint venture for aircraft leasing, according to a statement. Hassana will hold the majority share of the JV, with AviLease acting as aircraft service provider, the statement reads. Details about the investment ticket for the JV were not disclosed

TL;DR: The JV is set to acquire a portfolio of 10 fuel-efficient carriers from AviLease — currently on lease to Saudi-based airlines. AviLease will offer its technical and performance expertise to support the JV’s scale-up and operation. The new platform aims to facilitate access to the aviation financing asset class for international and local investors.

Where does AviLease currently stand? The firm currently boasts a fleet of 200 aircraft worth USD 8 bn — which it aims to grow to 500 aircraft by 2030, capitalizing on strong domestic demand from airlines including Riyadh Air, Saudia, and flynas.

Expansions already underway: The PIF placed an order for 20 Boeing 737-8 jets for AviLease, with option for 10 more. The White House fact sheet puts the total value of the purchases at USD 4.8 bn. The lessor also tapped Airbus for 10 A350F freighter jets and 30 A320neo family aircraft with an option to expand the total purchase order to 77 jets.

IMO’s new rules to power maritime decarbonization, but low green fuel supply + oil prices risk limiting its power

Decarbonization, here I come? The International Maritime Organization’s (IMO) Net-Zero Framework (NZF) is set to give the maritime industry a big push towards decarbonization, but the supply of low-carbon fuels must pick up for the rules to realize their full potential, the Norwegian maritime industry advisor DNV’s Maritime Forecast to 2050 (pdf) expects.

Demand for low-carbon shipping fuels is expected to hit 25 mn tonnes of oil equivalent (mtoe) by 2030, up from the 17 mtoe predicted in DNV’s 2024 forecast. The availability of alternative-fueled vessels is also expected to surge — with their total consumption capacity projected to reach 50 mtoe by 2030, indicating potential for higher demand if favorable markets emerge.

Larger ships are more ready than smaller ones: About 8.9% of ships currently operating (measured by gross tonnage) can use alternative fuels, while 51.1% of vessels in the order book have this capability. However, measured by the number of ships, these percentages are lower, with 2.4% in operation and 26.5% for the order book, suggesting that larger ships are more frequently opting for dual-fuel solutions, DNV says. The trend isn’t surprising given that IMO rules put more focus on bigger ships.

Among these alternative-fueled vessels, LNG- and methanol-ready engines dominate, with the uptake of engines ready for ammonia and hydrogen still in early stages.

But the supply side of low-carbon fuel remains in a phase of stalled momentum, amid headwinds facing hydrogen-derived options such as green methane, hydrogen, and ammonia. Forecasted production capacity for these fuels has not increased since 2023 estimates — leaving us with a limited number of projects currently operational or having reached a final investment decision.

Competition from other decarbonizing sectors — including aviation, heavy trucking, and industry — adds further pressure to the forecasted supply glut. While total production capacity of low-emission fuels is expected to rise 50% across all sectors by 2030, the maritime sector will need to clinch nearly a third of that. Given that the sector accounts for just 3% of global energy consumption, it will face stiff competition from other heavy-emitting sectors, such as heavy industries — alone responsible for 37% of the world’s energy demand.

Other non-fuel-based approaches like wind-assisted propulsion (WAP) could also help the sector decarbonize. WAP — whose uptake more than doubled y-o-y to reach 64 vessels — could cut fuel usage by 5-15%, with advancements suggesting a 30% reduction is soon possible. Still, WAP comes with some challenges. Installing the systems could take up space and tonnage capacity, reducing a vessel’s capacity. The technology is also under-regulated, with several safety and compliance issues, the report says.

Carbon capture tech is another promising area, with the potential to cut emissions by 9% if 20 of the world’s largest ports integrate carbon storage infrastructure, the report says. The tech, however, needs to become more energy-efficient to become compatible with the IMO’s energy use mandates. Other options like nuclear power and air lubrication — albeit less developed — are also being explored.

DNV expects the trajectory of oil and gas prices to have some impact on how far the IMO mandate would go. It may remain more affordable for shippers using very low-sulfur fuel oil (VLSFO) — a type of fossil-derived fuel containing up to 0.5% sulfur and currently used by the industry’s largest ships — to pay IMO penalties until 2030 before they are incentivized to switch to cleaner alternatives, according to a Hydrogen Council report (pdf ). VLSFO was mandated by the IMO in 2020 to limit harmful sulfur emissions.

REMEMBER- The IMO rules will set two escalating emissions targets, requiring gradual cuts to ships’ GHG fuel intensity. A stricter standard mandates a 17% cut by 2028 from 2008 levels, increasing to 21% by 2030 and 43% by 2035, the Financial Times reported on Friday. Ships that fail to meet this strict target would pay USD 100 per excess tonne of CO2 equivalent. The softer target would see cuts by 4% by 2028 and 8% by 2030, increasing to 30% by 2035, but failure to meet this level would result in steeper fees of up to USD 380 per excess tonne. The system also allows for credit trading, with compliant vessels able to sell credits to those that fall short.

The next few years will be critical for the green fuels market, as both industry and government enter a period of “recalibration.” CEOs surveyed by the Hydrogen Council expect the hype to turn into “realism and pragmatism” over the next phase — with only the strongest projects advancing, paving the way for a more resilient industry. Competing priorities regarding energy security, competitiveness, and cost-efficiency will inform this calibration, the report says.

The bottom line: There is no single silver bullet for decarbonization. Instead, success will depend on deploying a diverse portfolio approach — integrating low-emission fuels, energy efficiency, onboard carbon capture, and digital optimization, says DNV.

Updates on aviation, zones, and e-commerce from Oman, the UAE, Iraq, and Kuwait

STORAGE + WAREHOUSES-

USD 29 mn cold storage hub coming to 6th of October: DP World and Elsewedy Industrial Development will set up a USD 29 mn cold storage facility in Egypt’s 6th of October city, according to a statement seen by EnterpriseAM. The 16.2k sqm site will house eight temperature-controlled chambers with 25k pallet positions for chilled and frozen goods, designed to meet international standards with an ammonia refrigeration system to cut energy use.

Tying Egypt’s exporters to an integrated cold chain: DP World said the facility will plug into its Sokhna Port and freight-forwarding network, giving food exporters and manufacturers lower supply chain costs and direct access to Greater Cairo and export corridors. Elsewedy Industrial Development added the project is part of its plan to transform its industrial parks into fully integrated production-and-logistics hubs, boosting Egyptian exports’ competitiveness.

REFRESHER- Cold storage is a smart investment in Egypt: Rising demand for cold storage and the sector’s fewer competitors allow developers to charge suitable rent premiums, sufficiently offsetting the prodigious costs involved as well as yielding attractive bottom lines. The country’s tenant pool is more than sufficient to reward investment in cold storage, engineer Ibrahim Bakir told EnterpriseAM.

AVIATION-

#1- SolitAir to add two Boeing 737-800s to fleet: Dubai-based cargo carrier SolitAir has acquired a Boeing 737-800 earlier this month from aircraft leasing outfit World Star Aviation, according to a press release. A second freighter aircraft is expected to join SolitAir’s fleet in October. SolitAir agreed to lease both jets as part of an agreement signed in June, according to World Star Aviation’s website.

On SolitAir’s fleet: By late October, SolitAir’s fleet is expected to comprise seven Boeing 737-800 freighters, all operating from the carrier’s 220k sqm hub at Al Maktoum International Airport. The airline is targeting a 20-jet fleet by 2027, the press release said.

#2- Onyxes to revamp Iraq’s aviation infrastructure: IT solutions provider Onyxes Technologies has signed a contract with the Iraqi Civil Aviation Authority to revamp the country’s aviation infrastructure and streamline its operations, in line with the standards of the International Air Transport Association, according to a statement. Onyxes is expected to help Iraq comply with international standards in a bid to restore direct flights to the European Union, which was suspended over ten years ago over regulatory and safety issues, Iraq News reports.

On Onyxes: Founded in 2011, Onyxes Technologies is a Baghdad-based IT solutions outfit active in several industries in the private and public sectors, namely oil and gas, telecommunications, banking, healthcare, and retail, according to its website.

ZONES-

Opaz, GOIC partner to improve freezones: Oman’s Public Authority for Special Economic Zones and FreeZones (Opaz) has inked an MoU with the Gulf Organization for Industrial Consulting (GOIC) to provide consultations for new specialized industrial areas within Opaz, according to a statement. The MoU also aims to help SMEs adopt new production tech and services, while streamlining the exchange of information on existing businesses in freezones and industrial cities.

E-COMMERCE-

Keeta lands in Kuwait: International food delivery platform Keeta — a subsidiary of Chinese tech firm Meituan — has launched its services in Kuwait, according to a statement. The firm will be providing no-charge delivery through its app and a 50% markdown on first orders for new local users.

ICYMI- Keeta launched in Saudi Arabia in October 2024, with plans for a SAR 1 bn investment in the Saudi market. The company is also operational in Qatar.

US on global crusade to wrest control of strategic ports from China

US mulls global port takeover campaign: Washington is reportedly scheming to topple China’s influence over strategic ports amid rising concerns in DC that it would be at a logistical disadvantage if military conflict erupts, Reuters reports, citing unnamed sources familiar with the plan. The US government believes its own merchant fleet is not well prepared to provide logistical aid to the US Navy during conflict, as it is overly dependent on foreign-controlled ports, the sources said.

One tactic the Trump administration is looking into is launching an acquisition blitz for strategic ports controlled by China, using US-backed firms, according to the sources. The sources cited a BlackRock-led consortium’s ongoing efforts to take over Hong Kong-based conglomerate CK Hutchison’s stake in 43 ports across 21 countries — including Panama’s two prized ports — as an example.

The hit list: Beyond CK Hutchison’s port holdings, US officials are now eyeing China-controlled assets in the US West Coast, Greece, Spain, and Jamaica, where Chinese players own assets or have long-term operation concessions.

REMEMBER- The US is also targeting Chinese shipbuilding. The Trump administration is planning to slam tariffs — comprising docking fees — on China-built and China-flagged vessels next month. The move is poised to trigger a USD 1-3 mn surcharge for shipments on some transatlantic routes, which could force Chinese majors, such as Cosco, to pass on the surcharge onto customers, dampening demand.

Calendar

15-19 September (Monday-Friday): London International Shipping Week, London, UK.

23 September (Tuesday): TradeWinds Shipowners Forum Greece, Athens, Greece.

24 September (Wednesday): Syria Recovery and Investment Forum, Abu Dhabi, UAE.

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.

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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