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*NFE expansion project, single largest in LNG industry history *This Eni’s first entry ever into Qatar’s upstream sector   QatarEnergy has selected Eni as a partner in the North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. This announcement marks the second partnership in the $28.75bn NFE mega project, which will expand Qatar’s LNG production capacity from the current 77mn tonnes per year to 110mn tpy. This is Eni’s first entry ever into Qatar’s upstream sector. The partnership agreement was signed at the QatarEnergy’s headquarters in Doha by HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also, the President and CEO of QatarEnergy, and Claudio Descalzi, the CEO of Eni, in the presence of senior executives from both companies. Pursuant to the agreement, QatarEnergy and Eni will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while Eni will hold the remaining 25% interest. The JV will in turn own 12.5% of the entire NFE project, whose four mega LNG trains have a combined nameplate capacity of 32mn tonnes per year. Al-Kaabi highlighted QatarEnergy’s relations with Eni and welcomed the new partnership. He said, “I would like to welcome Eni as a new member of Qatar’s LNG family. This agreement will strengthen our mutual cooperation for decades to come. It is an important addition to a series of partnerships with Eni, which include upstream exploration projects in a number of locations around the world as QatarEnergy expands its international footprint.” “I would like to thank His Highness the Amir Sheikh Tamim bin Hamad al-Thani for His wise leadership and for his unwavering support to Qatar’s energy sector.” On his part, Descalzi said, "We are honoured and delighted for having been selected as partner in the North Field East expansion project. As a newcomer joining this world leading LNG project, we feel the privilege and the responsibility of being a strategic partner of choice for Qatar. “This agreement is a significant milestone for Eni and fits our objective to diversify into cleaner and more reliable energy sources in line with our decarbonisation strategy. Eni looks forward to working with QatarEnergy on this project to positively contribute to increasing worldwide gas security of supply.” More partners are slated to join the NFE Project, and the relevant announcements will be made soon.    

Airports Council International is committed to continue with advocacy efforts to ensure boarders-restrictions across the region are eased to stimulate the recovery of the industry, according to Stefano Baronci, director general, ACI (Asia-Pacific). “We have engaged with multiple governments to ensure international travel is seamless,” he said in an exclusive interview with Gulf Times. On the importance of easing border restrictions, Baronci said aviation industry is an engine of economic growth by facilitating tourism, trade and connectivity. There are multiple economic benefits that are indirectly linked to the industry. The global economic recovery also heavily depends on aviation industry. Realising this, he noted, “A majority of countries in our region have abolished pandemic-related travel curbs which will further stimulate the recovery of industry. Testing, quarantine and limitations on foreign arrivals and limitations on tourism, discourage travel and hinder the economic recovery. Therefore, it is crucial that border restrictions are eased to enable seamless movement of people.” Travel restrictions ranging from mandatory quarantines in designated facilities to pre-departure testing and on arrival; suspension of international air travel in some parts of the region; geopolitical conflict and subsequent impacts on macroeconomic factors have proved to be detrimental to the overall growth of aviation. In 2020, ACI launched the Airport Health Accreditation programme to assist airports by assessing new health measures and procedures introduced as a result of the Covid-19 pandemic against global standards. The programme provides airports with an assessment of how aligned their health measures are with the ICAO Council Aviation Recovery Task Force (CART) Recommendations along with industry best practices. “We focused on ensuring that airport operations and public health measures were implemented in accordance with ICAO CART recommendations. Due attention was also given to economic survival of the industry and safeguarding interests in the future.” This, Baronci noted, “is the area where we provided much support to our members, advocating state-support of the industry to the extent possible and risk-based approaches to travel protocols. We also participated in many dialogues with governments and policymakers on the coordinated reopening of the industry.” Over the past two years, ACI Asia-Pacific has been actively representing the interests of its airport members and world business partners at national, regional and international levels. “Our team is working closely with ICAO, civil aviation and public health authorities, and other industry stakeholders to facilitate a sustainable recovery in a harmonising manner.” Nonetheless, Asia-Pacific includes some of the most restrictive markets in the world, where compulsory quarantine, uncoordinated travel restrictions, complicated administrative processes, and repetitive and expensive tests continue impede international travel. The global spread of the Omicron variant demonstrates the ineffectiveness of travel bans in containing the transmission of Covid-19. However, such measures continue to contribute to the economic and social stress experienced by many countries. In fact, the WHO statement on international travel restrictions, issued in January 2022, recommended states should consider lifting or modifying measures, such as testing and/or quarantine requirements, based on risk assessments. In addition, the ongoing conflict between Russia and Ukraine and its subsequent impacts on macroeconomic factors have proved to be detrimental to the overall growth of aviation. The surge in aviation fuel price combined with the blockade of air space across Russia too have added to the woes. ACI Asia-Pacific will continue to gear up its efforts in advocating a pragmatic and risk-based approach in reopening, coordinated protocols to testing and vaccination, and an interoperable digital health pass as part of an effort to facilitate international travel. Baronci said the pandemic has certainly changed passengers’ expectations and perceptions in their travel experience with much priority given to public health. Despite the severe loss of revenue, many airports are investing in touchless, self-service technologies to meet hygiene standards, restore passengers’ confidence, and improve travel experience. The digitalisation and biometric technology can be used to facilitate queuing, expediting check-in and security processes. As a result, airports can efficiently manage peak hour capacity, improve efficiency and lower operating costs, he noted. On the realistic target to see traffic coming back to pre-Covid levels, Baronci said, “We expect Asia-Pacific and the Middle East to recover at rates between -40% and -50% versus the projected baseline, a reflection of the different reopening approaches taken by governments. “The Middle East, where air transport markets are predominantly international, took a more pragmatic approach, reopening with health-related safeguards such as testing and vaccinations. The Middle East, where air transport markets are predominantly international, took a more pragmatic approach, reopening with health-related safeguards such as testing and vaccinations.”

Qatar’s two airports – Hamad International and Doha International – will continue to transform airport operations and set new benchmarks for the industry, says Stefano Baronci, director general, Airports Council International (ACI) Asia-Pacific. “Through the implementation of new technologies and increased hygiene efforts, the two airports in Doha have ensured passengers continue to enjoy healthy airport experience amid the pandemic. With the deployment of passenger-friendly technologies, HIA reaffirmed their commitment to ensure safe passenger experience,” Baronci said in an exclusive interview with Gulf Times. Providing an assessment of Hamad International Airport, Baronci said, “HIA is a state-of-the-art airport, setting new standards for the aviation industry, airport architecture and design quality. The airport is equipped with ample airside and terminal capacities besides its endless shopping and dining offerings. It’s well connected with ground transportation, including a metro line. HIA has improved its passenger processing facilities with the implementation of self-bag drop and security screening equipment.” Of the many facilities that HIA offers, Baronci said its extensive flight network and modern, clean facilities struck him the most. Speaking about the general performance of the Middle East airport industry, Baronci said the Middle East, owing to its high share of international and transfer traffic, would see a decline of -43%. The pace of recovery of Middle East is forecasted to lag behind the global average of -36%. Practically all countries in the Middle East have abandoned zero-Covid approaches to fight the pandemic. A fundamental pre-requisite for this progression has been the increasing level of vaccination, covering approximately 70% of the population across Asia-Pacific and Middle East. The overall recovery in Asia-Pacific is still slower than that of other regions, despite being the first region to be hit by Covid-19, and with large domestic markets, such as China and South Korea that experienced relatively fast recovery in 2021. The latest ACI Economic Impact Assessment expects that passenger traffic in Asia-Pacific in 2022 will experience a decline of -49% compared to the projected baseline verse the global average of -36%. In the last few months, an increasing number of countries such as Cambodia, Singapore, India, Thailand, Malaysia and Australia have also withdrawn the restrictions on international air travel. Nonetheless, the spread of the Omicron variant in key markets, including China and Hong Kong, and the subsequent renewed social restrictions, tightening border controls, as well as domestic lockdowns have cast a shadow over the recovery. Additionally, the geopolitical crisis in Eastern Europe and its impacts on macroeconomic factors, including hyperinflation and rising energy prices, have negatively affected the supply and demand for air travel. ACI estimated that, in general, markets that enjoy dominant share of domestic traffic are expected to recover quicker, and to reach pre-Covid-19 levels by the end of 2023. However, markets that rely on international traffic are unlikely to return to 2019 levels until the second half of 2024. “Passenger traffic is the lifeblood of the airport business. Practically all aeronautical revenues are a direct function of passenger traffic. Moreover, an overwhelming share of non-aeronautical revenues, such as retail, car parking, food and beverage, etc. depend on passenger traffic,” Baronci noted. As such, ACI forecast that revenues in Asia-Pacific airports will reduce proportionally to passenger traffic at -49% compared to the projected baseline, or $23bn in 2022. Baronci said recent studies conducted by ACI Asia-Pacific shows the travel restrictions imposed in the wake of Omicron had “little or no impact” on the spread of the virus and is only hampering the recovery of the sector.

Qatar Airways Cargo transported more than 3mn tonnes of air freight, accounting for 7.99% share in the global market in fiscal 2021/22. This, the national airline said in its annual report for 2021/22, represents a tonnage growth of 272,975 tonnes in chargeable weight, up 10% on the same period in the previous year. The report noted Qatar Airways Cargo maintained its position as the world’s leading air cargo carrier throughout the financial year, forging ahead with a strategic focus on growth, sustainability and digitalisation, and supporting the continuity of global trade, despite ongoing market challenges. Serving over 65 dedicated freighter destinations and more than 140 belly-hold passenger destinations worldwide, the carrier mirrored its strong performance from 2020/2021, operating a maximum of 155 flights per day at its peak in June 2021. With a significant proportion of this gross tonnage comprising of medical equipment, personal protective equipment (PPE) and critical supplies to support the ongoing global pandemic recovery, the carrier also further cemented its status as a major transporter of pharmaceuticals and medical supplies. The airline transported more than 600mn doses of Covid-19 vaccines over the course of the pandemic to date and also concentrated its efforts in enhancing its renowned pharma product and industry presence, while also ensuring commitment to its ground-breaking ‘WeQare’ initiative, which is based on the core pillars of sustainability: environment, society, economy and culture. In July 2021, Qatar Airways Cargo became a member of both Pharma.Aero as well as the Cool Chain Association, in its endeavour to collaborate in defining the highest standards in the shipment of valuable pharma goods and ensuring sustainability in transportation by avoiding integrity deviations leading to medical or food wastage. Qatar Airways Cargo was able to fulfil its commitment to the Unicef Covax programme, transporting over 154mn doses of Covid-19 vaccines as part of a memorandum of understanding signed in February 2021, providing five years of vaccine transport support to this important cause.    

In the last financial year, Qatar Airways added seven new aircraft to its fleet, which included two cargo aircraft and five Qatar Executive jets   Qatar Airways has more than 250 aircraft worth over $72.12bn still on order including options and letters of intent, the national airline said in its annual report for 2021/22, which was released on Thursday. In January this year, Qatar Airways announced a new order of up to 50 Boeing 777-8 freighters and two current generation 777 freighters, securing “ambitious plans” for the future of its cargo operations. Qatar Airways and Boeing also signed a Memorandum of Understanding (MoU) for a firm order of 25 737-10 aircraft and purchase rights for 25 additional airplanes, the report said. In June last year, Qatar Airways introduced the latest generation Boeing 787-9 Dreamliner aircraft, featuring an ultra-modern business class suite, with a total passenger capacity of 311 seats; 30 business class suites and 281 seats in economy. In the last financial year, Qatar Airways added seven new aircraft to its fleet, which included two cargo aircraft and five Qatar Executive jets (as on March 31, 2022). Qatar Airways’ "strategic" investment in a mix of modern, fuel-efficient aircraft has enabled it to provide agile responses and embrace every challenge, by offering the right capacity in each market to meet the increased passenger and cargo demand with great flexibility. During the financial year 2021/2022, Qatar Airways said it “faced considerable capacity limitations, due to unforeseen circumstances beyond the group’s control.” The report said, “These capacity constraints were partially addressed through a number of different steps to balance commercial needs as swiftly as possible.” The airline brought back in to service four of the 10 Airbus A380 in order to increase the fleet capacity on key winter routes including London Heathrow and Paris. The national airline also re-introduced 14 of its A330 fleet to address the continued increase in capacity requirements due to the easing of travel restrictions during the peak of winter holiday period. Qatar Airways Cargo has maintained its position as the world’s largest air freight carrier, injecting much needed capacity in the market helping support global supply chains at a critical time during the pandemic. “The airline’s foresight and strategic investment in a varied fleet has enabled us to become highly flexible and non-reliant on a specific aircraft type. As a global airline we adapted our network to serve passenger demand and increase the sustainability of the operations,” the annual report noted.    

Airport cargo operations also increased by 13.10%, with 2,542,426 tonnes of cargo handled, the national airline said in its annual report for 2021/22.   The Hamad International Airport (HIA) served a total of 22,124,322 passengers in 2021/22, a 220.14% jump compared to the previous fiscal year. Airport cargo operations also increased by 13.10%, with 2,542,426 tonnes of cargo handled. HIA also witnessed growth in aircraft take-off and landing with 181,308 movements – a 54.5% increase from last year, Qatar Airways said in its annual report for 2021/22. MATAR, the Qatar Company for Airports Management and Operation, is a corporate subsidiary of Qatar Airways Group in a contractual agreement with the Government of Qatar to manage the operation of HIA. HIA served a total of 171 destinations between April 2021 and March 2022, and introduced nine new passenger destinations and two new airline partners during the fiscal year. Dhaka, Heathrow, Dubai, Kathmandu and Male were among the busiest departing destinations from the airport. HIA’s expansion is an investment into Qatar’s future, enhancing multi-dimensional offerings by integrating world-class art collections, lush greens as well as contemporary retail and dining concepts among other leisure attractions and facilities under one expansive terminal. Consisting of two phases, Phase A of the current expansion will increase the capacity to 58mn passengers annually by 2022, while Phase B will continue after the FIFA World Cup Qatar 2022 and will increase the capacity to more than 60mn passengers annually. MATAR is responsible for HIA’s expansion project, its readiness for FIFA World Cup Qatar 2022, its asset management, commercial activities, airline business development, environmental sustainability and international projects. As the ‘Official Airport Partner’ for the FIFA World Cup Qatar 2022, HIA said it is “ready to create memorable experiences for football fans across the globe by hosting extraordinary fan activations in its terminal and ensuring seamless connectivity through the airport.”    

* Group reports 'record' net profit of QR5.6bn during fiscal 2021/22, highest in its 25-year history     Qatar Airways Group reported a “record” net profit of QR5.6bn during fiscal 2021/22, the highest ever in its 25-year history. Overall revenue increased to QR52.3bn, up 78% compared to last year and a remarkable 2% higher than the full financial year pre-Covid (i.e., 2019/20), the national airline announced on Thursday. Passenger revenue increased by 210% over the last year, due to the growth of the Qatar Airways network, increase in market share and higher unit revenue, for the second financial year in a row. Qatar Airways carried 18.5mn passengers, an increase of 218% over last year. Qatar Airways Cargo remained the leading player in the world as its revenue experienced an impressive growth of 25% over last year with the growth in cargo capacity (Available Tonne Kilometres) of 25% annually. The Group generated strong EBITDA margin of 34% at QR17.7bn. EBITDA was higher than the previous year by QR11.8bn due to “streamlined, agile and fit-for-purpose” operations across all business areas. These record earnings are the result of decisions made during the pandemic to expand the Qatar Airways’ passenger and cargo networks, with a more accurate forecast of the global market recovery, building further customer and trade loyalty and product excellence combined with strong cost control. Despite the challenges of Covid-19, the national carrier grew to more than 140 destinations in 2021/22, opening new routes including Abidjan, Côte d’Ivoire; Lusaka, Zambia; Harare, Zimbabwe; Almaty, Kazakhstan; and Kano and Port Harcourt, Nigeria; in addition to resuming flights to key markets across Europe, Africa, the Middle East and Asia. The company has operated continuously the largest network among all Middle Eastern airlines, as measured by number or destinations as well as weekly flights. HE the Minister of State for Energy Affairs and Qatar Airways Group Chairman Saad bin Sherida al-Kaabi said, “Qatar Airways Group has demonstrated a robust role in the aviation industry, and these financial results are a clear indication of the Group’s strong performance. Against challenges during the previous period, I am delighted by the achievements that have been accomplished this year and by the way the Group has swiftly responded to these challenges.” Qatar Airways Group Chief Executive HE Akbar al-Baker said, “This year, Qatar Airways Group celebrates a quarter of a century of history since its relaunch, whilst maintaining strong performance and growing profitability. Our commitment to providing the greatest choices to our passengers, maintaining the highest levels of safety in the industry and earning trust have made us proudly become the airline of choice for millions of travellers around the world. We have pursued every business opportunity and left no stone unturned as we aimed to meet our targets. “In 2021, we grew significantly to become the world’s largest global long-haul carrier in 2021 by RPKs. We also received the industry’s most prestigious accolade ‘Airline of the Year’ for a record-breaking sixth time in the Skytrax World Airline Awards in addition to recognition for the airline’s hub, Hamad International Airport as ‘Best Airport in the World’ 2021. “The Qatar Airways Cargo division also earned three major industry awards including Cargo Operator of the Year at the ATW Airline Awards; Cargo Airline of the Year, and Air Cargo Industry Achievement Award at Air Cargo Week’s World Air Cargo Awards. These achievements not only highlight our exceptional brand reputation but also our outstanding hard work across the Qatar Airways Group family.” “I am extremely proud of the decisions we have made to embrace efficiency and achieve strong cost control across several operational departments whilst engaging in environmental and sustainable initiatives. This has positioned us at the forefront in the field of sustainability, including environmental protection and social commitment. Our strategic investments in a varied fleet of modern, fuel-efficient aircraft has helped us overcome the significant challenges related to capacity constraints while balancing commercial needs as swiftly as possible.” Throughout this year, the Qatar Airways Group maintained a highly-successful and wealthy portfolio of regional and global partnerships to champion the brand across the world. Against the backdrop of the pandemic disruption, Qatar Airways Cargo transported more than 3mntonnes of air freight and securing eight per cent share in the global market. Cargo also transported more than 600mn doses of Covid-19 vaccines over the course of the pandemic to date and also concentrated its efforts in enhancing its ‘Pharma’ product and industry presence, while also ensuring commitment to its ground-breaking WeQare initiative, which consists of a series of positive and impactful actions in the form of chapters based on the core pillars of sustainability - environment, society, economy and culture. “This profit is not only a record for Qatar Airways Group, but also a record among all other airlines that have published financial results for this financial year worldwide,” the national airline noted. ends    

Beyond the Tarmac The global travel industry, aviation in particular, has been one of the hardest hit by the Covid-19 pandemic. The safe easing or lifting of restrictions on travel is essential for the restart of travel and tourism and the return of the social and economic benefits the sector offers. International tourists and visitors are vitally important to businesses and workers across the globe who have struggled to regain losses from this valuable sector. In this context the recent decision by the Biden Administration in the US to drop Covid testing requirement for international travellers is seen as big boon to the travel industry, aviation in particular. Last week, the United States rescinded a 17-month-old requirement that people arriving in the country by air test negative for Covid-19, a move that follows intense lobbying by airlines and the travel industry. The requirement had been one of the last major US Covid-19 travel requirements. Its end comes as the summer travel season kicks off, and airlines were already preparing for record demand. Airlines have said that many Americans have not been not travelling internationally because of concerns they will test positive and be stranded abroad. The United States has required incoming international air travellers to provide pre-departure negative tests since January 2021. In December, the Centers for Disease Control and Prevention (CDC) tightened the rule to require travellers to test negative within one day before flights to the United States rather than three days. Nick Calio, CEO, Airlines for America, the lobbying group for the largest US carriers, said the industry looks “forward to continuing to work with the administration to prioritise the safety and well-being of the travelling public and to ensure that air travel policies are guided by science.” Although the world is not out of the woods as yet with regard to the pandemic, tourism continues to recover at a strong pace, thanks to easing of restrictions. Globally, destinations welcomed almost three times as many international arrivals in the first quarter of 2022 as in the same period of 2021, with Europe leading the sector’s rebound, according to World Tourism Organisation (UNWTO), a specialised agency of the United Nations. According to the latest UNWTO World Tourism Barometer, international tourism saw a 182% year-on-year increase in January-March 2022, with destinations worldwide welcoming an estimated 117mn international arrivals compared to 41mn in Q1, 2021. Of the extra 76mn international arrivals for the first three months, about 47mn were recorded in March, showing that the recovery is gathering pace. Europe and Americas lead the recovery: UNWTO data shows that during the first quarter of 2022, Europe welcomed almost four times as many international arrivals (+280%) as in Q1, 2021, with results driven by strong intra-regional demand. In the Americas arrivals more than doubled (+117%) in the same three months. However, arrivals in Europe and the Americas were still 43% and 46% below 2019 levels respectively. The Middle East (+132%) and Africa (+96%) also saw strong growth in Q1, 2022 compared to 2021, but arrivals remained 59% and 61% below 2019 levels respectively. Asia and the Pacific recorded a 64% increase over 2021 but again, levels were 93% below 2019 numbers as several destinations remained closed to non-essential travel. By sub-region, the Caribbean and Southern Mediterranean Europe continue to show the fastest rates of recovery. In both, arrivals recovered to nearly 75% of 2019 levels, with some destinations reaching or exceeding pre-pandemic levels. Destinations opening up: Although international tourism remains 61% below 2019 levels, the gradual recovery is expected to continue throughout 2022, as more destinations ease or lift travel restrictions and pent-up demand is unleashed. As of June 2, some 45 destinations (of which 31 are in Europe) had no Covid-19 related restrictions in place. In Asia, an increasing number of destinations have started to ease those restrictions. Despite these positive prospects, a challenging economic environment coupled with the military offensive of the Russian Federation in Ukraine pose a downside risk to the ongoing recovery of international tourism. Export revenues to recover faster as spending rises: The latest issue of the UNWTO Tourism Barometer also shows that $1tn were lost in export revenues from international tourism in 2021, adding to the $1tn lost in the first year of the pandemic. Total export revenues from tourism (including passenger transport receipts) reached an estimated $713bn in 2021, a 4% increase in real terms from 2020 but still 61% below 2019 levels. International tourism receipts reached $602bn, also 4% higher in real terms than in 2020. Europe and the Middle East recorded the best results, with earnings climbing to about 50% of pre-pandemic levels in both regions. However, the amount being spent per trip is on the rise – from an average $1,000 in 2019 to $1,400 in 2021, WTO noted. A higher number of experts (48%) now see a potential return of international arrivals to 2019 levels in 2023 (from 32% in the January survey), while the percentage indicating this could happen in 2024 or later (44%) has diminished compared to the January survey (64%). Meanwhile by end April, international air capacity across the Americas, Africa, Europe, North Atlantic and the Middle East has reached or is close to 80% of pre-crisis levels and demand is following.

Qatar’s GDP per capita has been estimated by researcher FocusEconomics to scale up to $101,124 by 2026. This year, FocusEconomics estimates the country’s GDP to be $79,881, $81,260 (2023), $86,222 (2024) and $93,617 (2025). Qatar’s GDP this year and in 2023 has been estimated at $213bn, $223bn (2024), $240bn (2025) and $257bn (2026). The country’s GDP growth this year will be 4.3% this year, 2.8% (2023), 2.8% (2023), 3.5% (2025) and 4.1% (2026). Current account balance, the researcher noted, will be $44.2bn this year, $35.3bn (2023), $27.6bn (2024), $32.2bn (2025) and $37.1bn (2026). FocusEconomics estimates Qatar’s merchandise trade balance to be $79.5bn this year, $78.8bn in 2023, $76.2bn (2024), $78.8bn (2025) and $87bn (2026). Merchandise exports may exceed $110bn this year, 2023 and 2024 and $116.4bn (2025) and $128.5bn (2026). Fiscal balance (as a percentage of Qatar’s GDP) has been estimated at 8.4% (2022), 5.5% (2023), 2.6% (2024), 3.3% (2025) and 4% (2026). The country’s debt (as a percentage of GDP) is estimated to fall continually, from 46 this year to 42 in 2026. Next year it may drop to 42.6, 43.9 (2024) and 43 (2025). Terming Qatar’s outlook stable, FocusEconomics said the non-energy economy appeared to perform well in Q1: The private-sector PMI averaged well in expansionary territory amid the reduced impact of the pandemic, while visitor arrivals soared in annual terms. However, the energy sector seemed to perform relatively poorly, with a double-digit annual decline in oil and gas output during February. The early signs for Q2 are positive: The PMI hit a series high in April, amid strong rises in both output and new orders, with the construction sector the top performer. Moreover, visitor arrivals were up 635% year-on-year in April. Qatar recently signed an energy partnership with Germany and pledged investment worth a total of roughly $18bn in Spain and the UK. “These moves bode well for Qatar’s trade ties and diversification efforts,” FocusEconomics said. GDP growth should accelerate this year due to stronger private consumption, higher energy prices, ongoing gas sector investment, improved ties with Gulf neighbours and the boost to tourism late in the year from the FIFA World Cup. The reintroduction of Covid-19 restrictions remains the main downside risk. FocusEconomics panellists see a 4.3% rise in GDP during 2022, which is unchanged from last month’s forecast, and 2.8% growth in 2023. Inflation rose from 4.4% to 4.7% between March and April. Price pressures are expected to remain elevated for the remainder of the year, on elevated commodity prices and stronger domestic consumption. FocusEconomics panellists see inflation averaging 4% in 2022, which is unchanged from last month’s forecast, and 2.4% in 2023.

QatarEnergy has embarked on the largest LNG shipbuilding programme as part of the North Field Expansion project, said HE the Minister of State for Energy Affairs, Saad bin Sherida al-Kaabi. “We have awarded a series of key offshore and onshore EPC contracts that are crucial for its timely execution,” HE al-Kaabi said Sunday. He said QatarEnergy will be working with its reliable business partners from China and Japan in the shipbuilding programme. In April, QatarEnergy signed a series of time-charter parties (TCPs) with a subsidiary of Mitsui O.S.K Lines (MOL) for the long-term charter and operation of four LNG ships, constituting the first batch of TCPs awarded under QatarEnergy’s massive LNG shipping programme. Concurrent with the signing of the TCPs, back-to-back LNG carrier shipbuilding contracts were signed between MOL and Hudong-Zhonghua Shipbuilding Group (Hudong), a subsidiary of China State Shipbuilding Corporation (CSSC), for the construction of four new LNG carriers to serve QatarEnergy’s LNG growth projects and future fleet requirements.

QatarEnergy would announce partners for North Field South (NFS) expansion by the end of the year, HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi said Sunday. NFS project will further increase the Qatar’s LNG production capacity to 126mn tonnes per year by 2027. With an expected production start date in 2027, the NFS project involves the construction of two additional mega LNG trains (with a capacity of eight mmtpy each) and associated offshore and onshore facilities. Senior QatarEnergy and TotalEnergies executives attended the agreement signing for the North Field East Eexpansion project. PICTURE: Shaji Kayamkulam The NFS project was initiated as a result of QP’s successful onshore appraisal activities in the North Field and targets the monetisation of gas from the southern sector of the North Field. The North Field Expansion plan includes six LNG trains that will ramp up Qatar’s liquefaction capacity from 77mnn tonnes per year to 126mtpy by 2027. Four trains will be part of the North Field East (NFE) and two trains will be part of North Field South project. “Today, QatarEnergy is standing at the threshold of a new era with a stronger commitment to energy transition and to the safe, reliable, and trustworthy access to cleaner energy. We will continue to power lives in every corner of the world for a better tomorrow for all. This is our commitment,” al-Kaabi said

First gas from the world’s largest LNG development - North Field East (NFE) expansion project, is expected by 2026, HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi said Sunday. NFE, he said, will increase Qatar’s LNG production capacity to 110mn tonnes per year (MTPY) from 77mn tpy now. “This is the world’s largest LNG development. It is also a very unique development in the LNG industry because of its advanced environmental characteristics, including significant carbon capture, sequestration technologies and capacity,” he said while addressing the media at the project’s JV agreement signing at QatarEnergy’s new headquarters in Doha Sunday. QatarEnergy and TotalEnergies will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while TotalEnergies will hold the remaining 25% interest. The JV in turn will own 25% of the entire NFE project, including the four mega LNG trains with a combined nameplate LNG capacity of 32MTPY. “Qatar has a unified approach, where all four trains are considered one unit. TotalEnergies' 25% stake in one virtual train gives it around 6.25% of the whole four trains,” al-Kaabi said. Al-Kaabi said it was "a marriage more than an engagement" as the agreement will last until 2054. He said, “Selecting our international partners in the project was another key element, which was kicked off through a competitive process that started in 2019. And as I mentioned before, thanks to the project’s economic competitiveness, financial resilience and its unique environmental features, we have received offers for double the offered equity. This is a testament to the attractiveness of this exceptional project and investment.”

* QatarEnergy selects TotalEnergies as 1st international partner in world's largest $28.75bn North Field East expansion project * NFE project, which will expand Qatar’s LNG export capacity from current 77mn tonnes per year to 110MTPY, is expected to start production by end-2025 QatarEnergy has selected TotalEnergies as its first international partner in the $28.75bn North Field East (NFE) expansion project, the single largest project in the history of the LNG industry. The announcement comes at the conclusion of a competitive process that started in 2019 to select QatarEnergy’s international partners in the NFE project, which will expand Qatar’s LNG export capacity from the current 77mn tonnes per year (MTPY) to 110MTPY. The NFE project, which is expected to start production before the end of 2025, employs the highest health, safety, and environmental standards, including carbon capture and sequestration, to reduce the project’s overall carbon footprint to the lowest levels possible. The partnership agreements between QatarEnergy and TotalEnergies were signed at the QatarEnergy’s new headquarters in Doha Sunday. The agreements were signed by HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy and Patrick Pouyanné, Chairman of the Board and Chief Executive Officer of TotalEnergies in the presence of senior executives from QatarEnergy and TotalEnergies. Picture: Shaji Kayamkulam The agreements were signed by HE the Minister of State for Energy Affairs, Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy and Patrick Pouyanné, Chairman of the Board and Chief Executive Officer of TotalEnergies in the presence of senior executives from QatarEnergy and TotalEnergies. Pursuant to the agreements signed Sunday, QatarEnergy and TotalEnergies will become partners in a new joint venture company (JV), in which QatarEnergy will hold a 75% interest while TotalEnergies will hold the remaining 25% interest. The JV in turn will own 25% of the entire NFE project, including the four mega LNG trains with a combined nameplate LNG capacity of 32MTPY. In his remarks during the ceremony, al-Kaabi said: “This is a historic landmark for Qatar’s energy industry and for the world’s largest LNG development. The North Field East project is an iconic achievement that will not only ensure the optimal utilisation of Qatar’s natural resources but will also provide the world with the cleaner and more reliable energy it needs. “Today, QatarEnergy is standing at the threshold of a new era with a stronger commitment to energy transition and to the safe, reliable, and trustworthy access to cleaner energy. We will continue to power lives in every corner of the world for a better tomorrow for all. This is our commitment.” “We look forward to working closely with TotalEnergies, who are a long-term strategic partner that we have always trusted to support the efficient and safe delivery of our projects. I would like to thank all the team members in QatarEnergy and TotalEnergies for the excellent collaboration and for all their hard work that has led to this important moment. I also would like to express thanks and appreciation to the project’s team and to the Qatargas organisation for continuing to deliver the NFE project, and with an outstanding safety record,” al-Kaabi added. The minister said, “We are forever grateful to the wise leadership of His Highness the Amir Sheikh Tamim bin Hamad al-Thani and for his unlimited support of Qatar’s energy sector.” As part of the partner selection process, he said “QatarEnergy had received offers for double the equity available, underscoring the high-quality investment case of the NFE project thanks to its economic competitiveness, financial resilience, and also its unique environmental features. “More partners are slated to join the NFE Project, as final terms have been agreed and the relevant announcements will be made soon.”

Middle Eastern carriers have experienced a 11.9% year-on-year (y-o-y) decrease in cargo volumes in April, IATA said and noted the effects of Omicron in Asia and the Russia-Ukraine war continued to create a challenging operating backdrop. IATA’s April 2022 data for global air cargo markets showed a drop in demand and contraction in capacity. Global demand, measured in cargo tonne-kilometres (CTKs), fell 11.2% compared to April 2021 (-10.6% for international operations). Global demand is down 1% compared to April 2019. Capacity was 2% below 2021 (+1.2% for international operations). Both global capacity and international capacity decreased slightly in April compared to March. Asia experienced the largest falls in capacity. Asia-Pacific airlines saw their air cargo volumes decrease by 15.8% in April 2022 compared to the same month in 2021. This was the weakest performance of all regions and significantly slower than the previous month (-5.1%). Airlines in the region have been heavily impacted by lower trade and manufacturing activity due to Omicron-related lockdowns in China. Because of this, available capacity in the region fell 19.4% compared to April 2021, the largest drop of all regions. “The war in Ukraine led to a fall in cargo capacity used to serve Europe as several airlines based in Russia and Ukraine were key cargo players,” IATA said. And the zero-Covid in China led to capacity challenges due to flight cancellations because of labour shortages. New export orders, a leading indicator of cargo demand and world trade are now shrinking in all markets except the US. Global goods trade has continued to decline in 2022, with China’s economy growing more slowly because of Covid-19 related lockdowns (among other factors). The lockdowns have brought much of the world’s largest port, Shanghai, to a standstill. Supply chain disruptions due to the Ukraine-Russia conflict are also adding to the downward pressure on trade. IATA’s director general Willie Walsh said, “Air cargo demand fell by 11.2% in April and capacity contracted 2% compared to April 2021. The combination of the war in Ukraine and Covid-19 lockdowns in China have pushed up energy costs, intensified supply chain disruptions, and fed inflation. The operating environment is challenging for all businesses, including air cargo. But with China easing lockdown restrictions, there is cause for some optimism and the supply/demand imbalance is keeping yields high.”    

First regional Global Harmonised System (GHS) standard has been adopted in the six GCC states in collaboration with the GCC Standardisation Organisation (GSO), which will ensure the safe labelling of chemicals in the region. According to the Gulf Petrochemicals and Chemicals Association (GPCA) the standard, entitled GSO 2654:2021 ‘Global Harmonised System (GHS) in Gulf Co-operation Council countries’ was developed by GPCA and adopted by GSO with immediate effect on the territories of all six GCC states. Its adoption marks a major milestone for the chemical and petrochemical sector in the Arabian Gulf, as it will help to build momentum to collectively implement the Globally Harmonised System of Classification and Labelling of Chemicals in the region, GPCA noted. GHS was developed by the United Nations as a single worldwide system for classifying and communicating the hazardous properties of industrial and consumer chemicals. Transporting hazardous chemicals can pose a significant risk to people and the environment. As a major hub for the production and export of chemicals and petrochemicals, it is particularly important for the GCC region to have robust Environmental Health, Safety and Sustainability (EHS&S) standards that would prevent the devastating impact of chemical accidents and successfully communicate the hazards associated with chemical transportation. GPCA noted the GCC chemical industry produced 150mn tonnes of products worth $54.1bn in 2020. This figure is estimated to be significantly higher in 2022 as a result of a buoyant market, which saw petrochemical demand and product prices grow significantly. As the first of its kind in the GCC region, GSO 2654:2021 will become the standard for product stewardship and will help to dramatically transform the EHS&S landscape across the entire chemical and petrochemical value chain. Dr Abdulwahab al-Sadoun, secretary-general, GPCA, commented: “GPCA is proud to announce the culmination of our joint work with the GSO over several years into the region’s first GHS standard. This comprehensive benchmark has been adapted to serve the region with its unique requirements and continue to ensure the healthy EHS&S performance of the GCC industry on a global scale. “Working together towards one unified standard will ensure we continue to improve on our product safety record across the chemicals value chain, where every player – however big or small – will have the power to make a difference towards a more sustainable and safer future for the region, our roads and our communities.”    

Beyond the Tarmac Amid travel chaos around the world, airline capacity seems to have bounced back globally with airlines scheduling nearly 95.2mn seats in early June. This, according to aviation consultant Deirdre Fulton, represents a definite leap. Late last month, the global airline capacity stood at around 90mn seats. Only one (country) market can have such an impact in just one week and that is China, where the re-opening of Shanghai from June 1 has triggered a big increase in capacity, with totals for Northeast Asia increasing week on week by a quarter or 3.4mn seats, Fulton said. Airports across Europe have struggled to cope with a post-pandemic rebound in demand, but British airports have been particularly hit by major disruptions early June. Across the UK, passengers faced lengthy delays and cancellations of hundreds of flights. To add to the sense of chaos being reported at European airports, many passengers are being told to arrive earlier than usual given they should expect to queue for longer, but the effect of this is that there are simply more people milling around the terminals. With easing of travel restrictions following two years of Covid-induced disruptions, airlines had clearly hoped for a bumper summer. But they have struggled to recruit staff after the turmoil of the pandemic, and complain it is taking longer to recruit new employees and vet them for security clearance. Schools in the UK were on a half-term break and the country also had a long public holiday weekend to mark Queen Elizabeth's 70 years on the throne. British transport minister Grant Shapps said the government would work hard with the aviation industry to avoid a repeat of the chaos at airports last week. Earlier, Shapps had said airlines should stop selling tickets for flights they could not staff, and urged the industry to sort out the problems. "The industry itself needs to solve it. The government doesn't run airports, it doesn't run the airlines. The industry needs to do that ," he told BBC. Shapps is of the opinion airline staff cuts during the pandemic had gone too deep. "We will work with the industry very hard ... to make sure we don't see a repeat of those scenes," he said. Beyond the UK, cancellations of flights for various reasons have caused travel chaos in Western Europe. “It seems clear from the ongoing challenges at some airports across Western Europe that this may be a difficult summer for travel. We have already seen easyJet scale back their summer 2022 schedule to try and get ahead of on-the-day cancellations, and every day at the moment seems to bring a fresh round of cancellations and delays for travellers,” Fulton told OAG, a global travel data provider. “Unfortunately, there is no quick fix for the staff shortages faced by the industry,” she said. Many who were made redundant or furloughed due to the Covid-19 pandemic moved into other industries, and for those entering the industry, the recruitment cycle for new employees at airports and airlines is much longer than in other industries. Thorough security and background checks can take up to between three to six months. For an industry that was still effectively shut down in the early part of 2022, ramping back up to deal with peak summer demand was always going to take a bit of time. While the US remains in the top spot as the largest country market for scheduled airline capacity, Fulton said China made significant inroads to the gap in the last week. Although things are not yet back to normal, capacity is returning, with the week on week comparison growing from -44.2% behind 2019 last week, to just 21.8% behind this week. Capacity in China has increased by more than a third (37.8%) compared to last week, reminding us that there are few country markets capable of switching capacity on in this way. Greece continues its steady growth this week, adding 5.5% capacity week on week and now reaching heights of 8.5% above 2019. Only four of the top 20 country markets remain above 2019 this week- India, Mexico, Vietnam and Greece. Staff shortages are being blamed for much of the recent disruption, particularly in Europe, with airports and airlines struggling to bring staff on board fast enough. These, OAG points out, are jobs where many of the previous staff who were furloughed have found other employment and new hires need to undergo security screening and training.

Qatar’s fiscal account surplus will widen in 2022 owing to recovering global oil and gas prices, easing public debt pressures, the Economist Intelligence Unit (EIU) has said in a report. The country’s macroeconomic indicators have improved in 2021, with positive economic growth resuming both globally and domestically, EIU said in its latest economic update. Qatar's debt obligations are high, but its ability to fully service them is not in doubt, with the support of ample foreign reserves and the assets of the Qatar Investment Authority (QIA, the sovereign wealth fund), EIU said. According to EIU the riyal's peg to the US dollar will continue to be backed by healthy foreign reserves and QIA assets. EIU has put the currency risk rating at ‘BBB’. The rating is supported by elevated international hydrocarbons prices and a widening current-account surplus, and by rebounding financing and liquidity metrics. According to the researcher, the country’s banking sector risk is ‘BB-rated’. The net negative foreign-asset position of banks is large but stable. The sector is well regulated, and although net external liabilities pose risks, strong prudential indicators insulate banks from a deterioration in asset quality arising from the longer-term impact of the 2020 recession. The non?performing loan ratio is low, and profitability levels are moderate. Economic structure risk is BB-rated. Qatar's over-reliance on hydrocarbons exports remains a vulnerability, exposing the country to global energy price movements. The Qatar National Vision 2030 diversification programme will shape policy. Qatar's large stock of public debt weighs on the outlook, but a sound financial system is supportive, EIU said. In an earlier update, EIU said Qatar's overall business environment score has improved from 6.56 for the historical period (2016-20) to 7.35 for the forecast period. This has helped Qatar's global ranking to improve by eight places from 36th to 28th, although its regional ranking remains steady at third. The largest improvements, in terms of scores, are in the categories of infrastructure and market opportunities. Qatar's fairly open foreign investment regime, open trading relationships with regional partners and sophisticated capital markets will remain strong aspects of its business environment. The main shortcomings are in policy towards private enterprise and competition and in access to financing for small and medium-sized enterprises, EIU said.    

The 800 megawatt-peak (MWp) Al Kharsaah solar plant being constructed by Qatar with partners including TotalEnergies is a major accomplishment towards developing renewable energy, said TotalEnergies’ senior vice-president for Middle East and North Africa (Mena) Laurent Vivier. “We expect the plant to start producing in the coming months. It is another practical example of our co-operation with QatarEnergy. Something of this scale – 800 megawatt – in one single location is a huge accomplishment,” Vivier said in an exclusive interview with Gulf Times. Located just 80km west of capital Doha, the Al Kharsaah Solar PV Independent Power Producer (IPP) project is the country’s first large-scale solar power plant and is set to significantly reduce the environmental footprint. “Our worldwide renewable energy capacity is 10GW now. We want to go to 35GW in 2025. Our ambition is to achieve 100GW capacity by 2030,” Vivier noted. Electricity demand is set to rise faster than global demand for energy as a whole in the coming years. According to the International Energy Agency’s Sustainable Development Scenario, renewable energies will represent more than 35% of the world’s energy mix in 2040. Vivier said there is a huge potential to develop the solar production capacity in Qatar. TotalEnergies would support Qatar in this regard. “We want to use our experience in Qatar and our expertise to develop a PV plant in Iraq,” Vivier said. He said, “I know Qatar has a lot of focus on renewable energy now. I think Qatar will inspire many other energy-rich countries also to consider sustainable energy.” “By using solar energy for electricity generation, you can free up some natural gas that can be utilised in the international market,” he noted. TotalEnergies continues to expand across the entire renewable energy value chain based on an integrated approach. The energy major designs and finances photovoltaic solar plants, and builds and operates them as well. To ensure success and meet the growing demand for electricity, TotalEnergies is strengthening its expertise in renewable energies, especially in solar energy, given its many advantages. Combating climate change is an integral part of both TotalEnergies’ long-term growth strategy and its ambition to get to net-zero emissions for all its businesses by 2050, together with society. On Total’s transformation into TotalEnergies, Vivier said, “Our ambition is to be a world-class player in the energy transition. In the last one year, we have seen QP also becoming QatarEnergy.” In Qatar, TotalEnergies has been present since 1936, and is active in exploration and production, refining and petrochemicals, and marketing of lubricants, and renewable energies.