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MANUFACTURING-
Saudi’s first locally-made gas turbine is here: GE Saudi Advances Turbines (Gesat) unveiled the Kingdom’s first locally-made H-class gas turbine unit at its Dammam plant, according to a statement. The unit is set to power Aramco’s Jafurah Cogeneration Independent Steam and Power Plant, which is set to be the most efficient power plant in the Kingdom when operational. Gesat is a joint venture between the Public Investment Fund-backed Dussur and General Electric’s energy spin-off company GE Vernova.
What’s Jafurah? The entire Jafurah gas field — the largest unconventional, non-oil-associated gas field in the Kingdom — is set to produce 630k barrels of gas liquids and condensates per day and over 420 mn standard cubic feet of ethane per day by 2030, according to the statement. Jafurah is also the largest shale gas development outside the United States.
REMEMBER- Aramco signed earlier this week contracts worth over USD 25 bn as it pushes deeper into natural gas. The contracts are for the development of the second phase of its Jafurah gas field and the expansion of the Kingdom’s primary natural gas pipeline. The state-owned oil giant aims to see natural gas production in 2030 be 60% higher than it was in 2021.
More local production rolling in: Four out of six H-class gas turbines procured for the planned Taiba 1 and Qasim 1 Independent Power Producer (IPP) projects will be manufactured at Gesat’s factory in Dammam.
And more: GE Vernova signed an MoU with Saudi EXIM to facilitate the exports of its locally manufactured technology products abroad, according to the statement. The bank is set to support lending and ins. support, the statement read, before providing further details.
M&A WATCH-
The General Authority for Competition has issued a non-objection on eight “economic concentration requests” in June 2024, it said in a post on X. Seven out of eight of the approved requests were for acquisitions with one for a joint venture. Some of the takeovers listed i nclude an acquisition by Riyadh-based healthcare equipment supplier Cigalah of a 28.5% stake in Buruj Cooperative Ins. from Kuwait’s Gulf Ins. Group. The approved joint venture was formed between leading conglomerate Ajlan & Bros and local 4Data Information Technology.
COMMODITIES-
Less wheat bought than planned: The General Food Security Authority (GFSA) purchased 235k tons of wheat in its third tender for 2024, the authority said in a post on X. The quantities purchased are below the 595k tons of wheat sought in the tender. The wheat shipments — sourced from the EU, Black Sea, North America, South America and Australia — are set to arrive here between September and October.
LOGISTICS-
Global freight forwarder Scan Global Logistics (SGL) made its entry into the Kingdom with the opening of offices in Riyadh and Jeddah, according to a statement. SGL said Saudi’s strategic location as a gateway to the GCC, Europe, Asia and Africa makes it “an ideal distribution hub for these regions.” It plans to open a third office in Dammam this year. The new offices will launch with 20-25 employees with the company planning to bring its headcount to 50 in the second year of operations.
REAL ESTATE-
Hassana, the investment manager of the Saudi General Organization for Social Ins., is set to develop a mixed-use project in Riyadh’s Al Raml district with real estate developer Kinan International Real Estate Development, TradeArabia reported. The 2 mn sqm mixed-use project will feature residential, educational, healthcare, entertainment, retail, and office spaces. It aims to accommodate up to 9k residential units and includes 222k sqm of commercial space. The financial value of the planned project was not disclosed.
