QatarEnergy kicks off operations at UK’s Isle of Grain LNG hub

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What we're tracking today

TODAY: QatarEnergy enters UK LNG market + gas from Cronos field is locked in

Good morning, ladies and gents. We have another brisk read this morning, led by news from QatarEnergy setting up shop in UK’s Isle of Grain LNG and the Cyprus’ Cronos field is moving closer to Egyptian processing by the day.

PLUS: We have an interesting read diving into how air freighters are facing a jet supply crunch — and many are turning to retrofits as a solution.

THIS JUST IN- The EU is facing energy and trade threats from the US and Qatar over the bloc’s proposed rules on corporate sustainability, the Financial Times reports, citing a joint letter to EU leaders signed by the US and Qatari energy ministers it has seen. The two countries see the Corporate Sustainability Due Diligence Directive as creating an “‘existential threat’ to the growth, competitiveness, and resilience of the European economy,” they said in the letter.

Trade agreements in the balance? The rules would also negatively impact their LNG exports and potentially a recent US-EU energy trade agreement, the US and Qatar said. “Beyond the direct energy security risks, the CSDDD also threatens to disrupt trade and investments across nearly all the EU’s partner economies. Its implementation could jeopardize existing and future investments, employment, and compliance with recent trade agreements.”

WATCH THIS SPACE-

#1- Jordan, Iraq extend oil supply arrangement: Jordan reached an agreement with Iraq last month to extend its oil supply by around three months, which will see Iraq supplying Jordan with 10k bbl / d at USD 16 below the monthly average Brent crude price, AlMamlaka reports, citing unnamed sources. Jordan-bound supplies reportedly resumed on 5 October, and are slated to continue until 31 December, the sources said.

IN CONTEXT- Jordan’s petroleum refinery in Zarqa received some 117k bbl of Iraqi crude oil between 11-19 October as part of an MoU signed last month, according to a statement from Jordan’s Energy Ministry. Amman and Baghdad are also mulling extending the MoU for an additional year after its expiration on 26 June, the statement said.

#2- Madayn issues tender for Suwaiq Industrial City: Oman’s Public Establishment for Industrial Estates (Madayn) launched a tender for the development of the first phase of Suwaiq Industrial City in North Al Batinah governorate, Oman News Agency reports. The tender, which will cover the development of 5 mn sqm, includes the construction of an internal road network.

#3- GE Aerospace brightens outlook amid jet shortage: GE Aerospace raised its earnings outlook to USD 6-6.2 per share — up from USD 5.6-58 previously — as it reported 10% y-o-y adjusted revenue growth in 2024, according to its earnings release. This marks the second consecutive quarter for the company to raise its earnings guidance, Reuters reports. The bullish sentiment comes as Boeing and Airbus continue to miss delivery deadlines, raising demand for engine maintenance — a key part of GE Aerospace’s business model. The company also raised its growth forecast for Leap engine deliveries, expecting it to jump by more than 20% this year.

Expanding maintenance efforts: GE Aerospace and Safran Aircraft Engines expanded their existing maintenance agreement with Sanad to offer full maintenance, repair, and overhaul (MRO) capabilities for Leap-1A and Leap-1B engines at Sanad’s Abu Dhabi facilities earlier this year. GE Aerospace plugged USD 10 mn into its two MRO facilities in the UAE and Qatar in a bid to increase operational efficiency and turnaround time last February.

MARKET WATCH-

#1- Oil prices inched up this morning by nearly 1% — driven by sanctions-related supply concerns and hopes of a US-China trade agreement, Reuters reports. Brent crude futures climbed up by USD 0.94 to USD 62.26 / bbl as of 04:00 GMT, while US West Texas Intermediate (WTI) eased USD 0.92 to trade at USD 58.16 / bbl.

ALSO- India’s Reliance Industries purchased some 2.5 mn bbl of oil from the Middle East last week, with the potential to bag more, Bloomberg reports, citing traders familiar with the matter. The shipments included Iraq’s Basrah Medium and Qatar’s Al-Shaheen and Qatar Land grades.

ICYMI- Indian oil giants, including Reliance, have been sourcing crude from their traditional Middle Eastern suppliers like the UAE and Saudi Arabia due to geographical proximity amid sanctions on Russian imports.

These are confusing times: India’s state-run refiners plan to reduce LPG imports from the Middle East, instead boosting their US sourcing throughout 2026. State refiners have notified traditional suppliers in Saudi Arabia, the UAE, and other Gulf countries about the expected cuts, though the scale of the reduction has not been finalized.

#2- Baltic index inches up: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — gained 23 points to 2,094, driven by the bigger vessel segments. The capesize increased 1.8% to 3,184, while the panamax index rose 1.6% points to 1,858. The smaller supramax index shed 8 points to 1,414.

DATA POINT-

China’s LNG imports remain subdued: China’s LNG imports declined 15% y-o-y in September, with a 17% YTD decrease, due to increased pipeline deliveries and ample domestic supply, Bloomberg reports. The National Energy Administration expects gas demand to grow only 2–3% in 2025 — the slowest pace on record.

Maneuvering through geopolitical chaos: Chinese importers are hedging against geopolitical risks by filling LNG storage tanks to around 80% capacity — avoiding competition for cargoes in a volatile European market, potential disruptions in the Middle East, and trade tensions with the US.

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DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the UAE ? ***

CIRCLE YOUR CALENDAR-

The UAE will host the Adipec Maritime and Logistics Exhibition and Conference on Monday, 3 November until Thursday, 6 November in Abu Dhabi. The conference will host over 250k attendees working in government entities, finance, and tech.

The UAE will host the Air Cargo Forum on Tuesday, 4 November until Thursday, 6 November in Abu Dhabi. The forum — hosted by Etihad Cargo — will bring together air freight industry leaders, policymakers, innovators, and stakeholders to discuss industry solutions, tech, strategies, and collaborative initiatives for global air logistics.

Egypt will host the TransMea Expo on Sunday, 9 November until Tuesday, 11 November in Cairo. The expo will host regional and international players in the transport industry to explore tech, new smart solutions and products for transport and logistics services.

The UAE will host the Dubai Airshow on Monday, 17 November until Friday, 21 November in Dubai. The event will host over 1.5k exhibitors and 148k industry experts from over 150 countries, to discuss air mobility, new MRO breakthroughs, sustainable aviation, startups and new tech for aircraft simulations.

Saudi Arabia will host the ShipTek International Conference and Awards on Tuesday, 18 November in Al Khobar. The conference will host policy makers, organizations, suppliers and experts on maritime, offshore and oil and gas

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

QatarEnergy sets up shop at Europe’s largest LNG terminal with 25-year pact

QatarEnergy started using the UK-based Isle of Grain LNG terminal under a 25-year agreement, according to a press release. The terminal — operated by National Grid — saw its first delivery of LNG cargoes under the agreement on 15 July, 2025. The facility, which has an annual capacity of 7.2 mn tons, offers delivery, storage, and regasification services that are set to boost subsidiary QatarEnergy Trading’s operations and its supply of LNG across Europe, the press release said.

This was the plan all along: QatarEnergy initially booked storage and delivery capacity at the UK terminal in 2020, agreeing on a 25-year timespan starting in 2025, Reuters reported at the time. At that time, the Isle of Grain terminal reportedly could store and deliver enough gas to cover at least a quarter of UK gas demand.

About the terminal: The largest European terminal and the eighth largest in the world in terms of tank capacity, the Isle of Grain facility — located on the Isle of Grain in Kent — sits on a site that spans over 600 acres in total, according to its website. Its customers include BP, Algeria’s Sonatrach, Total, Centrica, and Uniper.

Cyprus’ Cronos field moves closer to Egyptian processing

Gas from Cronos field locked in: Egypt inked three commercial agreements covering the exploitation of the Cronos offshore gas field, paving the way for processing Cypriot gas through existing infrastructure in Egypt, according to a statement. The agreements were inked by the Egyptian Oil Ministry, Egas, and field partners Eni and TotalEnergies.

Under the agreements, Egypt and the Cronos partners set the commercial and operational terms for transporting, handling, processing, and liquefying the Cypriot gas through Egyptian infrastructure. Both sides also initialed a separate tariff agreement governing the fees for using those facilities.

A confirmed timeline: The partners aim to approve the field’s development and production plan along with a final investment decision by year-end, with first gas from Cronos targeted for 2027, according to the Cypriot statement. Gas from Cronos was first reported to start flowing to Egypt for liquefaction and re-export starting in 2027, however, remarks from Cypriot Energy Minister George Papanastasiou carried out by Mees earlier this month stated that the first gas is unlikely to come before late 2027 or early 2028.

REMEMBER- Egypt and Cyprus inked an agreement earlier this year that will see Cyprus ship natural gas from Cronos to be re-exported to European markets after being processed in Zohr facilities and liquified in Damietta.

The local market could get a slice: “We will send the natural gas to the Zohr infrastructure … and from there with a pipeline for liquefaction and processing and to the local market in Egypt if the parties decide so,” Cypriot Energy Minister George Papanastasiou said earlier this month.

Air freighters are facing a jet supply crunch — Here is how Mammoth Freighters is working to fill the gap

Air freighters are bracing for a major jet supply crunch as demand for air cargo grows at a much faster pace than added capacity. Global air cargo volumes were up 6% y-o-y in July 2025, while capacity dropped 2% y-o-y in the same month, according to a DHL report seen by EnterpriseAM. Looking ahead, this crunch is expected to become more acute, as some 24% of the current freighter fleet — in terms of capacity — is forecasted to be retired out of service by 2033, DHL found.

Against this industry-wide headwind, airlines are steadily turning to retrofits. Demand for retrofits is going up as airlines work to ramp up capacity amid industry-wide delivery delays. Emirates enacted a USD 5 bn retrofitting plan aimed at extending the operational life of existing jets as it waits for delayed deliveries earlier this year.

And the Texas-based Mammoth Freighters is working hard to seize on this moment amid rising demand for retrofits. A Boeing licensee, Mammoth Freighters launched operations in 2020 and specializes in retrofitting Boeing’s flagship passenger 777 model — including the 200 Long Range and 300 Extended Range variants — to be cargo-ready.

Why retrofits? Retrofitted jets are a very good “gap filler,” Mammoth Freighters Sales and Marketing VP Brian McCarthy told EnterpriseAM. “If you can’t get new airplanes and you want to stay with the Boeing platform…. then [airlines] need a gap filler,” McCarthy told us. Mammoth Freighters’ passenger-to-freighter (P2F) models provide operators a reliable “seven to ten year gap filler until Boeing can deliver enough passenger aircraft and freighters,” he added.

Pricing can be a plus, too: There is quite a substantial differential in the pricing of the aircraft, with the retrofitted 777-200LR costing “close to USD 80 mn to USD 90 mn lower than a brand new built freighter,” McCarthy told us.

REMEMBER- Regional demand is booming: The Middle East commercial aviation market is forecasted to be driven by growing air travel demand, budget carriers, and significant aircraft orders. Overall, the region’s fleet is expected to increase by 5.1% annually, bolstered primarily by narrowbodies, according to an Oliver Wyman report (pdf).

The 777 model is preferred because of its proven durability and longevity, capable of performing reliably for many more flight years even after 10-15 years of service, McCarthy explained. The 777-300ER model can carry 819 cbm in volume with a max payload of around 98 tons, while the 777-200ER model can carry more weight at a maximum payload of up to 106 tons but at a smaller volume of 650 cbm.

Boeing is all in: To support customers facing delivery snags, Boeing is supporting the P2F model, McCarthy said. “Boeing has been more and more helpful in making sure that their customers are accommodated,” and players like Mammoth help provide additional cargo capacity until Boeing can fulfill their orderbooks, he added.

REFRESHER- Boeing pushed back delivery dates of its awaited 777x aircraft last year, with first deliveries forecasted for 2026. Delivery delays have been exacerbated over the last two years by engine storages, machinists’ strikes, and production cuts caused by quality and safety concerns.

Qatar Airways is set to be the first uptaker of Mammoth Freighter’s 777-200ER P2F models, after it commissioned five jets earlier this year through US-based leasing firm Jetran. Qatar Airways is getting “the first two aircrafts coming off of our production line, as soon as they are certified,” McCarthy told us. “We are closing in on certification, right now, and finishing all our final flight tests,” he added.

A canon event: Mammoth Freighters believes that Qatar’s 777-Max deliveries will act as a “triggering event” for more orders, but the company said it will remain focused on quality and remaining on schedule. “We'd rather make sure we focus on the certification tasks and support and deliver what we've already promised,” McCarthy added.

P2F is an attractive model for leasing firms: Conversions into freighters is more practical for leasing firms compared to passenger jets. When a major carrier like Emirates or Qatar returns an aircraft to the lessor, the plane is highly unlikely to find another passenger airline, McCarthy said. This is because the retrofitted aircraft is fully branded — with operational standards and cabin configuration tailored specifically to the initial airline — making re-entry into service with a different carrier exceptionally complex and difficult, he added.

P2Fs conversions also take the lead price-wise: “On a passenger plane, the residual value normally just falls and goes all the way to zero over some span of time, but on a freighter it goes down to a certain value and then stays there; it doesn’t keep falling but levels off over time.” That means that while it costs more to turn a jet into a freighter, long-term operational durability makes passenger-to-freighter jet retrofits (P2F) financially viable.

More retrofits also mean a better business outlook for maintenance, repair, and overhaul (MRO) services providers, as the prolonged lifespan of aging carriers means there’s a bigger need for regular maintenance services and more modifications and installations of spare parts, he added.

The MRO market is already heating up: Global MRO market size reached USD 114 bn in 2024, growing by 7.2% during the post-pandemic period, according to data from consulting outfit Oliver Wyman. The MRO market is expected to grow annually by a steady average of 2.7% to reach USD 156 bn in 2035.

But retrofitters like Mammoth also have to navigate supply chain snags. To hedge against any supply disruptions, the company began bulk ordering key parts two to three years ago. “We were buying 10 chip sets at a time, even though we didn’t really need them yet,” loading up on inventory at a great expense to “insulate ourselves because we were watching the whole industry suffer.” Some 99% of Mammoth Freighters’ materials are also bought locally in the United States at present, in a bid to maintain a more centralized supply chain than its counterparts in the industry.

They aren’t alone: Etihad Airways is weighing bulk buying aircraft parts and storing them in local warehouses for on-demand access — in a bid to sidestep supply chain gridlocks from planemakers. The bulk purchases are aimed at lowering downtime for jets undergoing retrofits in a bid to minimize network disruptions as the Abu Dhabi-based carrier rolls out a USD 1 bn retrofit program for its existing fleet.

Looking forward: The company is aiming for a production capacity of 16 or 18 airplanes per year, with some seven airplanes in the works right now.

Vertiv taps Paul Ryan as EMEA president

Vertiv announces new leadership shuffle: US digital infrastructure and data center developer Vertiv has appointed Paul Ryan (LinkedIn) as the new president of Europe, Middle East, and Africa (EMEA), effective from 1 January 2026, following the retirement of Karsten Winther (LinkedIn), according to a press release.

Currently the firm’s chief procurement officer, Ryan, brings over 20 years of industry experience, including senior roles at Emerson Network Power, with a track record in leading its supply chain and regional operations across EMEA and Asia Pacific. Vertiv’s Patrick Grainey (LinkedIn) has been named acting chief procurement officer, effective immediately.

SAR rolls out rail development agreements

RAIL-

SAR rolls out new MoUs for rail development: Saudi Railway Company (SAR) has signed several MoUs with local and international partners, including Siemens Mobility Saudi to advance the Riyadh-Dammam line and Riyadh Link project, and Ericsson to upgrade railway communication systems. Additional agreements with MERMEC and DOHWA aim to localize inspection technologies and train Saudi engineers, while an MoU with the Saudi Authority for Industrial Cities and Technology Zones (Modon) seeks to boost cooperation in developing local industries linked to the railway sector. The agreements were announced at the Saudi International Rail exhibition, which wrapped on Monday.

CUSTOMS-

Iraq opens customs center: Iraq’s General Customs Authority has launched the Customs Operation Center — in partnership with the country’s Border Ports Authority — that aims to improve border crossing customs management and supervision, authority head Thamer Qaasim told Shafaq News. The new system operates through using an AI-based electronic monitoring system.

ICYMI- Iraq’s Border Ports Authority inked a 14-point agreement with Iran in September to improve border crossings by working together on digitization, including exchanging electronic cargo manifests, consultations, and operating 24/7 without extra fees.

LAST-MILE-

Amazon launches 15-minute delivery in the UAE: Amazon has rolled out Amazon Now in the UAE, slated to deliver its fastest times yet with packages arriving in 15 minutes, according to a press release. The service relies on micro-fulfillment centers located close to key residential areas to avoid traffic and cut down delivery times.

Venture Global is close to feeding natgas to Plaquemines LNG plant

Venture Global’s final natgas venture in Plaquemines? US LNG exporter Venture Global is in discussions with the Federal Energy Regulatory Commission (FERC) to introduce natural gas into the final phase of its Plaquemines LNG plant by tomorrow, Reuters reports, citing a regulatory filing from Monday. If FERC approves, Venture Global will be set to produce LNG at the Plaquemines plant nearly a year ahead of its scheduled deliveries to long-term customers. Once completed, the Plaquemines facility will be able to produce 27.2 mn metric tons of LNG each year.

The plant is already progressing: Global LNG exports rose by 3.1% y-o-y to 109.3 mn tons in 1Q 2025, driven by the expansion and acceleration of cargo shipments from Venture Global LNG’s Plaquemines project.

REMEMBER- The Trump administration granted Venture Global conditional approval in March to export natural gas from the firm’s planned CP2 project in Louisiana to countries without freetrade agreements with the US. The project will be able to export up to 3.96 bn cf/d of LNG, producing 20 mn tons of LNG per year.

Calendar

OCTOBER

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.

DECEMBER

6 December (Saturday): International Procurement Supply Chain Conference, Cairo, Egypt.

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.

15-17 February (Sunday-Tuesday): World Advanced Manufacturing Logistics Summit and Expo, Riyadh, Saudi Arabia.

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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