MENA energy investments to exceed $805bln over the next five years

Region is also expected to add 3GW of installed solar power capacity in 2021 alone

  
Petrochemical engineers work slowly and heavily with smart tablets in the oil and gas industry at night. Image used for illustrative purpose.

Petrochemical engineers work slowly and heavily with smart tablets in the oil and gas industry at night. Image used for illustrative purpose.

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RIYADH: Energy investments across the Middle East and North Africa (MENA) will exceed $805 billion over the next five years, said the Arab Petroleum Investments Corporation (APICORP).

The growth is expected to be driven by a rebound in the global economy, rising energy demand and the return of Libyan energy projects, it said.

The region is also expected to add 3GW of installed solar power capacity in 2021 alone – double that of 2020 – and 20GW over the next five years.

However, economies remain under fiscal strains due to unprecedented high debt levels and decline in oil prices.

“We anticipate a slow but steady recovery of the energy sector from the fallout of the COVID-19 pandemic, supported by continued investment from the public sector and an upswing in demand,” said CEO Ahmed Ali Attiga.

Committed gas investments in MENA for the period 2021-2025 are expected to total $75 billion – $9.5 billion less than the previous outlook.

Planned investments in the MENA petrochemicals sector are forecast to increase to $109 billion in 2021-2025, a $14.2 billion jump compared to last year’s outlook.

MENA is also a strong candidate for becoming a major hydrogen-exporting region thanks to its combination of low-cost gas resources and renewable energy, said APICROOP.

A few countries, such as Saudi Arabia and Morocco, have already made headway as low-cost exporters of blue and green hydrogen, net-zero ammonia and other low-carbon products.

Copyright: Arab News © 2021 All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

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