Morocco advances energy hub ambitions with LNG terminal, Africa-Europe gas pipeline projects

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TODAY: Morocco advances gas plans + UAE is getting hyperscale data center

Good morning, friends. The newscyle has slowed down considerably as we head into the weekend, but we still have a few updates on big projects from Morocco and the UAE to delve into. But first…

A QUICK PROGRAMMING NOTE- EnterpriseAM Logistics will be taking a publication holiday tomorrow in observance of Sinai Liberation Day. We’ll be back in your inboxes at our regularly scheduled time on Monday, April 28.

THE BIG LOGISTICS STORY- US hits again with new duties on solar imports: The US has finalized antidumping and countervailing duties of up to 3,400% on solar cells imported from Cambodia, Malaysia, Thailand, and Vietnam, according to a Commerce Department statement on Monday. The update caps a year-long probe that began under the Biden administation into alleged dumping that distorted the US solar market, with a final vote on the duties planned for 2 June.

On top of other tariffs: The solar duties will be in addition to the separate set of tariffs imposed by Trump. They vary depending on the company and country, however the average effective rate for each country would be 651% for Cambodia (with four firms slapped with rates as high as 3,403%), 34% for Malaysia (reaching 168.9% in some cases), 375% for Thailand (reaching 799.5%), and 395 for Vietnam (reaching 542.6%). China’s Jinko Solar and Trina Solar are among the highly affected firms.

US’ solar industry to take a major blow: The US imported about USD 12.9 bn in solar equipment last year from the four targeted countries, making up roughly 77% of its total module imports, according to BloombergNEF. While expected to boost US domestic production, the duties also challenge local renewable developers relying on foreign supplies as they could face higher costs and extended supply chain disruptions.

WATCH THIS SPACE-

#1- Qatar Airways eyes larger global cargo footprint: Qatar Airways Cargo, British Airways parent company International Airlines Group’s cargo division IAG Cargo, and Malaysia Airlines’ MASkargo are looking to establish a joint business to boost their networks in the air freight industry, according to a statement. The new business — still requiring regulatory approval — will aim to bring the three player’s experience and assets together to offer new streamlined products, faster transit, and more routing options. The three companies will also work together to develop comprehensive safety and security standards applicable industry-wide.

Qatar💚IAG: Qatar Airways — already a major global cargo player with 28 Boeing 777 freighter jets — planned on selling EUR 88 mn from its IAG shares as part of a share buyback program launched by IAG last November. Qatar Airways acquired a stake in IAG for USD 600 mn back in 2020, increasing its stake to 25.1%, Reuters previously reported. The Qatari firm previously held a 21.4% stake in IAG — which owns Spanish carriers Iberia and Vueling and Ireland’s Aer Lingus. Qatar Airways first invested in IAG in 2015, buying 9.99% of the firm.

#2- Morocco is planning a major logistics sector push, finalizing master plans for 10 logistics zone around the country, Detafour reports, citing comments by Transport Minister Abdessamad Qaiouh. No timeline for the proposed projects has been disclosed. The projects will cover several areas in Morocco, including Casablanca-Settat, Fes-Meknes, Beni Mellal-Khenifra, Guelmim-Oued Noun, Marrakech-Safi, Drâa-Tafilalet, as well as the East and Souss-Massa.

The projects include:

A 32-hectare logistics zone in Ain Cheggag near the city of Fes;
A 70-hectare project south of Casablanca;
A 45-hectare project in Kenitra;
A 9-hectare logistics zone in Beni Mellal;
A 5-hectare zone in the Midelt province.

IN OTHER MOROCCO NEWS- The government is looking to develop a new MAD 28 bn (c. USD 3 bn) airport in Casablanca, Hespress reports, quoting Transport Minister Abdessamad Qaiouh as saying. The airport — situated in the North-western Atlantic port of Casablanca — aims to accommodate nearly 40 mn passengers, Qaiouh said. The project — to be connected by a new road network and trains — is part of the nation’s logistics expansion program ahead of the Fifa World Cup in 2030.

This isn’t what we heard before: Morocco was reported last month to be planning a USD 1.6 bn investment to develop a new terminal at Casablanca Airport, Reuters reported last month, citing a statement by ONDA. The development was said to be aiming to double the airport capacity ahead of hosting the Fifa World Cup in 2030.

#3- The Iran sanctions keep on coming: The US administration has applied a new round of sanctions targeting Iranian liquefied petroleum gas (LPG) tycoon Seyed Asadoollah Emamjomeh — who is allegedly responsible for exporting mns worth of Iranian LPG and crude oil to international markets, according to a Treasury statement. Emamjomeh’s corporate network is also in the hotseat, with some 13 new associated energy companies and a Panama-flagged vessel — Tinos 1 — added to the Office of Foreign Assets Control (OFAC)’s sanctioned entities list. This is the third round of US sanctions that we know of against Iran since the pair began discussions on a possible deal on Iran’s nuclear program.

REMEMBER- The US administration imposed a prior round of sanctions on Iran’s oil network last week. The new sanctions targeted Iran’s crude flows to China and India, including a UAE-based Indian national, claiming that his 30-vessel fleet was responsible for shipping Iranian oil to India. Four other entities linked to the India-bound operation were also sanctioned, including the UAE-based Prime Tankers LLC and Glory International.

MARKET WATCH-

#1- Oil prices edged up again this morning amid projections of tighter supplies after US sanctions on Iran and a reported drop in US stockpiles, Reuters reports. Brent crude futures rose by USD 0.55 to USD 67.99 a barrel, while the US West Texas Intermediate (WTI) went up by USD 0.54 to reach USD 64.21 a barrel by 04.00 GMT.

Meanwhile, sky-high US tariffs due next month are impelling Chinese LPG importers to swap US cargoes for Middle East shipments, Reuters reports. Geopolitical turmoil has ramped up the demand and prices for China-bound Middle East cargoes from pre-tariff levels of USD 20-30 per ton to USD 30-60 per ton from May to the first-half June, Chinese LPG trading executives told the newswire.

US LPG is looking at a steep price drop: China’s demand for US exports is predicted to slump by 200k barrels per day (bpd) over six to nine months, according to East Daley Analytics. The resulting stock build-up could prompt a steep price drop-off, which would encourage importers from India, Indonesia, Japan, and South Korea to snap up US cargoes, Energy Aspects analyst Cheryl Liu said.

Swaps can be costly: Chinese importers are reportedly adamant on paying no more than USD 50 per ton for shipments due for the second half of May 2025, Asian LPG traders told Reuters. The cost of such swaps exceeded USD 100 per ton for cargoes due for the first half of May. US cargoes — unlike Middle East counterparts — can be swapped easily as they are not inextricably tied to a location.

#2- Baltic index holds steady: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — remained unchanged at 1,261 points on Tuesday. The capesize declined 1% to 1,661 points, while the panamax index rose by 1.5% to 1,292. The smaller supramax index was up 0.4% to 954.

DATA POINTS-

#1- The Saudi Export-Import Bank’s lending more than doubled in 2024, it said in a post on X. The bank saw its lending rise 103.2% y-o-y to SAR 33.5 bn from SAR 16.5 bn amid its efforts to support non-oil exports growth in the Kingdom. The bank’s credit facilities that were allocated to Saudi non-oil exports also rose 70% y-o-y to SAR 11.96 bn in 2024, with around 7.66% of the bank’s total credit facilities distributed between financing and providing ins. to Saudi non-oil products exports, state news agency SPA reports. Additionally, the total value of exports covered by credit ins. rose 127% y-o-y over the same period to SAR 21.6 bn, up from SAR 9.5 bn.

#2- Dubai was ranked fourth globally as a mobility hub and eighth as a commercial hub by Oliver Wyman Forum, according to its The Cities Shaping the Future report (pdf). The report highlighted the emirate’s role in reshaping global supply chains, particularly through the Jebel Ali Port and Dubai International Airport which it sees as key assets for global supply chain networks. The city is set to benefit further from supply chain shifts, with the rise of production in India moving manufacturing chains closer to the emirate, the report said.

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CIRCLE YOUR CALENDAR-

The UAE will host the Airport Show on Tuesday, 6 May to Thursday, 8 May in Dubai. The event will show products and technology for the airport industry from over 160 international suppliers and manufacturers across 20 countries. It will also provide a platform for networking with key players across seven airport sectors.

Saudi Arabia will host the Saudi Smart Logistics trade fair on Monday, 12 May to Thursday, 15 May in Riyadh. The event will provide insights into the latest international and local technology, solutions, equipment providers, and sustainable workflow practices within the logistics industry in the country.

The UAE will host the Global Ports Forum on Tuesday, 13 May to Wednesday, 14 May in Dubai. The forum will cover topics such as port strategy and development, port automation, finance and efficiency.

The UAE will host the Seamless Middle East from Tuesday, 20 May to Thursday, 22 May in Dubai. The event will cover topics including digital marketing, e-commerce, and retail and merchant payments.

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

Morocco seeks energy hub status with LNG terminal and gas pipeline

Morocco advances regional energy ambitions: Calls for expression of Interest (EOI) in two major Moroccan energy projects — an LNG terminal in Nador West Med (NWM) Port and the African-Atlantic gas pipeline — are planned to be rolled out very soon, Reuters and Morocco’s public news agency MAP reported, citing Energy Minister Leila Benali’s remarks in the Moroccan Parliament. The two projects are part of Morocco’s bid to redraw the region’s energy landscape and turn the Kingdom into a major energy hub connecting Africa and Europe.

#1- Nador’s LNG Terminal: The Moroccan government will solicit Expressions of Interest (EOIs) this week for the first phase of a floating storage and regasification unit (FRSU) in NWM Port, Reuters reported, citing Benali. The LNG terminal will import some 500 mn cbm of LNG per year from Spanish terminals, as well as connect to industrial zones in the western cities of Kenitra and Mohammedia, Benali added.

A link in Morocco’s LNG chain: The LNG terminal at NWM Port will connect to the Maghreb Europe Gas Pipeline via a USD 400 mn, 120 km pipeline built by Moroccan mining outfit Managem and oil and gas player Sound Energy, Morocco World News reported in January. Sound Energy is also setting up Morocco’s first LNG processing facility near Tendrara’s gas field, with investments of USD 160 mn. The facility will have an initial capacity of 10 mn cubic feet and will enter the market by late 2025.

We knew this was coming: Moroccan governmental bodies inked an MoU last year to set up NWM Port’s LNG terminal, aiming to accelerate the development of renewable energies, Morocco’s green hydrogen capacity, and the African-Atlantic gas pipeline project.

#2- Rabat to link Dakhla and African-Atlantic gas pipeline: Morocco’s Energy Ministry is finalizing a call for EOIs for a pipeline project to link the Western Saharan city of Dakhla to the planned African-Atlantic gas pipeline, MAP reported on Monday, citing comments by Benali. The African-Atlantic pipeline’s first phase connecting Senegal, Mauritania, and Morocco is also advancing, with feasibility and design studies wrapped and environmental and social impact assessments currently underway, Map reported.

On the pipeline: Formerly known as the Nigeria-Morocco Gas Pipeline project, the 6.8k km African-Atlantic gas pipeline — previously reported to be 5.6k km in length — will transport up to 30 bn cbm annually, with an investment ticket of around USD 25 bn, MAP reported, citing Benali. The pipeline — first conceived when Nigeria and Morocco signed a joint venture in 2016 — is backed by the Economic Community of West African States, Reuters reported last year. The project is planned to encompass Mauritania, Senegal, Gambia, Guinea Bissau, Guinea, Sierra Leone, Liberia, Ivory Coast, Ghana, Togo, and Benin, Morocco World News reported in 2022.

Du to build AED 2 bn hyperscale data center for Microsoft as main tenant

Du is building a AED 2 bn hyperscale data center in the UAE for Microsoft, which will be its main tenant, according to a DFM disclosure (pdf). The center — whose capacity is set to be delivered in phases — aims to enhance the region’s AI capabilities and sovereign cloud solutions, and address growing capacity needs, Fahad Al Hassawi, CEO of du said.

Building on previous collabs: The pair have a few other collaborations going on, including their joint launch of AI-driven cybersecurity solutions for UAE enterprises that saw Du integrate Microsoft’s real-time solutions in its systems and services. The pair also introduced Ultimate Plans — a suite of digital solutions designed for small and medium-sized businesses (SMEs).

Du’s current stocktake: The state-owned telecoms firm currently operates five data centers across the UAE, according to Reuters.

REMEMBER- Microsoft is doubling down on the UAE: The tech giant is investing USD 1.5 bn in G42 to help boost its global expansion plans and promote the UAE’s position as a global AI hub. The sizable investment included setting up two AI centers in Abu Dhabi and accelerating AI-driven government transformation in the emirate.

Dubai Aerospace Enterprise receives USD 282 mn in settlements from ins. firms

DAE gets a USD 282 mn payout: UAE’s aircraft lessor Dubai Aerospace Enterprise (DAE) received nearly USD 282 mn in settlements from ins. firms over some of its carriers previously on lease to airline operators in Russia, according to a statement. The move brings the total of DAE’s reclaimed Russia-affiliated settlements to USD 601 mn — including those made in 2023 and 2024.

What’s next? The Dubai-based lessor said it will continue to actively pursue legal proceedings in British courts where many trials have taken place between ins. providers and aircraft lessors over aircraft left in Russia, including a mega trial back in October.

The context: Russian airlines were sanctioned and required to return back some 400 leased planes valued at almost USD 10 bn back in 2022 in the wake of Russia’s invasion of Ukraine. About 78 planes leased out to Russia were seized abroad then, but Russian airlines held on to the remaining carriers, putting them mostly on domestic routes. Russia subsequently approved a law permitting foreign jets to be registered in the country — making it harder for the carriers to be retrieved.

The consequences: Russia holding on to the jets have left leasing companies like DAE scrambling to secure compensations from ins. companies. DAE and its affiliates had previously issued claims against a number of ins. and reins. companies, including French ins. provider Axa — against which it had issued USD 737.8 mn in claims for leased aircraft and equipment stuck in Russia. It reportedly reached a full settlement with Axa over some of its claimed jets back in October 2024.

Aldrees posts robust 1Q 2025 returns

Tadawul-listed Aldrees Petroleum and Transport Services posted a 29.3% y-o-y increase in net income to SAR 100.1 mn in 1Q 2025, supported by solid performance across its Petrol and Transport divisions, increased income from deposits and Sukuk, and stronger returns from its chemicals logistics JV with global chemical logistics service provider BERTSCHI, according to a disclosure to Tadawul. Meanwhile, revenue rose 33.8% y-o-y to SAR 5.8 bn over the same period, driven by an expanded station network and improved transport rates.

About the company: Aldrees — a publicly traded Saudi company — offers petroleum products retail and transportation services. The company boasts a fleet of 4.6k trucks and trailers and provides warehousing, storage and handling, and global freight forwarding services.

Updates on aviation, shipping, and ports from UAE, Kuwait, and Jordan

AVIATION-

flydubai to offer lower air freight rates for local players: Dubai Chambers of Commerce inked an MoU with budget-carrier flydubai that will see the latter offer its integrated air freight services at preferential rates for members of Dubai Chambers, according to a statement. The preferential air freight rates will “serve as an effective tool to reduce export and import costs and enhance operational efficiency, opening up new international market opportunities for local businesses,” VP Khalid Al Jarwan said. The pair also aim to develop joint initiatives, programmes, and activities to further propel Dubai’s business community.

SHIPPING + MARITIME-

Kuwaiti oil cargo lands in South Korea for storage: South Korea’s Seoul has received the first cargo shipment from Kuwait under the terms of a storage agreement between Korea National Oil Corporation (KNOC) and Kuwait Petroleum Corporation (KPC), according to a statement. The agreement is in line with the company’s strategy of storing oil near vital markets to better facilitate deliveries of Kuwaiti oil.

REFRESHER- KPC inked a two-year strategic agreement with KNOC to store 4 mn barrels of Kuwaiti crude oil at one of KNOC’s storage facilities in Ulsan, South Korea in November 2024.

PORTS-

New USD 13 mn gantry crane lands in Jordan: Jordan’s Aqaba Container Terminal has received a USD 13 mn gantry crane that will be used to boost the handling capacity at the port, Petra reports. The new crane — 56 meters tall and 71 meters wide — has a carrying capacity of 100 tons. The move is in line with the port’s plans to revamp the equipment currently in operation, with an emphasis on the integration of environmentally sustainable equipment as part of Aqaba Port Authority’s strategy to become a green port by 2028.

South Korean shipbuilder mulls US-based LNG tankers operation + China sends back two Boeing jet

South Korea eyes building US LNG tankers: South Korean shipbuilder Hanwha Ocean is looking into building LNG tankers on US soil after the US advanced a proposal recommending taxing China-made vessels, Bloomberg reports. Under the proposal, five to seven US-flagged and US-operated LNG vessels could be built at Philly Shipyard by 2030, Hanwha’s VP of commercial shipping Ryan Lynch told Bloomberg. If finalized, the South Korean company will be the first to build LNG tankers in the US.

The challenges: There is currently no capacity to build LNG carriers in the US, with most being built in South Korea, Japan, and some in China. Nearly less than 1% of global LNG carriers are currently US-flagged, the newswire adds, citing an international group of LNG importers. “The proposed maritime restrictions — particularly the requirement to transport US LNG on US-built and flagged vessels — are simply not feasible… there are no such vessels in existence today, and building them would take decades, making compliance impossible for the industry,” Executive Director Charlie Riedl said.

ICYMI: The Trump administration is moving forward with fees on Chinese-built vessels stopping at US ports based on net tonnage or containers loaded. China-owned and operated ships face a fee of USD 50 per net ton, which will then be hiked by USD 30 annually over the next three years to settle at USD 140 by 2028. Non-Chinese firms will get more breathing room, however, with a smaller fee set at USD 18 per ton. The fee will then rise by USD 5 every year over three years.

China sends back two Boeing jets: Chinese airlines have sent back two Boeing 737 MAX jets that were due to delivery, Reuters reported, citing flight tracking data. The jets — which were in Boeing’s finishing center in China’s Zhoushan — were sent back to Boeing fields in the US territory Guam and Seattle.

The context: China ordered its airlines last week to stop taking Boeing jet deliveries and halt any acquisitions of aircraft-related equipment or parts from US companies. The move comes amid an intensifying US-China trade war that saw the Asian giant impose retaliatory tariffs of 125% on American products.

Boeing might find solace in Malaysia: Malaysia Aviation Group — the parent company of the country’s national carrier Malaysia Airlines — is currently in talks with Boeing to modernize its fleet and acquire jet delivery slots that have become available since China has stopped accepting deliveries, Bloomberg reports. Malaysia Airlines had ordered 60 Boeing jets this year to renew its narrowbody fleet.

Calendar

APRIL

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

MAY

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

6-7 May (Tuesday-Wednesday): Capital Market Summit, Dubai, UAE.

13-14 May (Tuesday-Wednesday): Egypt Facility Management Forum, Cairo, Egypt.

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

15-18 May (Thursday-Sunday): Global Logistics Conference, Dubai, UAE.

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.

28-30 (Wednesday-Friday): International Conference on Logistics and Supply Chain Management, Casablanca, Morocco.

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.

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

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

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

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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