Qatar could extend FM on gas beyond June, Edison says

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Italian gas importer Edison is penciling in potential long-term disruptions to QatarEnergy’s ability to fulfill LNG exports and is looking west to the US to plug the gap. QatarEnergy — which has a long-term contract to supply Edison with 6.4 mn cbm of LNG annually — has already canceled 10 cargoes to Edison, declaring force majeure due to Iran’s attacks on its facilities. The force majeure could now extend beyond mid-June as the Qatari energy company works to restore its affected capacity.

Taking a harder line on corruption in Libya’s oil sector: The Libyan government is trying to send the right signals to international investors about corruption that has plagued its oil and gas sector for over a decade. The latest signal came from the Tripoli Court of Appeals, which sentenced a former marketing executive at the National Oil Corporation (NOC) for 10 years in prison and a fine of USD 1.8 bn over contracting irregularities during his tenure from 2010-2017.

IN CONTEXT- This comes two weeks after the Prime Minister of the Tripoli-based government Abdel Hamid Aldabaiba ordered the termination of a development agreement between the NOC-owned Arabian Gulf Oil Company and Arkenu Oil Company amid allegations of corruption.

Sign of the times

Demand for Chinese EVs is on the rise in the Middle East as rising oil prices weigh on consumers. Chinese companies like BYD and Nio Mena are signaling there’s rising interest in cheaper electric models, although the anecdotal evidence does not necessarily indicate a structural shift, experts caution.

There are also export constraints as the Strait of Hormuz continues to disrupt supply chains. We previously reported that the closure has paralyzed a corridor for Japanese and South Korean used-vehicle exports, posing a significant challenge to the UAE market where most vehicles are imported as fully built-up units.

Data points

The war in the Gulf had little-to-no effect on Saudi Arabia’s annual inflation rate, which inched up marginally to 1.8% in March, compared to 1.7% in February, according to the latest data (pdf) from the General Authority for Statistics (GASTAT). Despite concerns around the US-Iran conflict, there is currently “no evidence of a rise in price pressures” feeding through to Saudi consumers, according to an Emirates NBD note seen by EnterpriseAM.

[wwtt4] USD 58 bn — that’s the updated bill for repairing energy infrastructure across the Gulf from war-related damage, according to Rystad Energy. Oil and gas facilities alone account for USD 30-50 bn, while non-hydrocarbon infrastructure adds further USD 3-8 bn.

The estimate more than doubled from USD 25 bn just three weeks ago, reflecting the expanded scope of damage prior to the recent ceasefire. Rystad now sets the midpoint for total restoration costs at USD 46 bn.