Arabian Gulf energy exporters are looking for their main energy partner in Asia. Like the protagonist in Vikram Seth’s “A Suitable Boy”, all of the candidates appeal but none are perfect. A flurry of activity in recent weeks has moved exciting India ahead of reliable Japan and lucrative China.
Indian Prime Minister Narendra Modi arrived in Abu Dhabi on Friday, his third trip in four years. Sheikh Mohammed bin Zayed visited India in February, when Adnoc chief executive Dr Sultan Al Jaber signed an agreement for oil storage in the country. ONGC Videsh, the main Indian government oil company, along with state firms Bharat Petroleum and Indian Oil Corporation (IOC), have taken stakes in Abu Dhabi’s oil production and exploration licences.
Saudi Aramco and Adnoc are planning a $60 billion (Dh220.4bn) refinery and petrochemicals complex in India, in partnership with Bharat, IOC and a third state company, Hindustan Petroleum. Initially to be at Ratnagiri in Maharashtra state on India’s west coast, land acquisition problems seem to have pushed it to Raigad, 250 kilometres further north and closer to Mumbai.
Last week, Aramco’s inaugural earnings call covered preliminary plans to pay $15bn for 20 per cent of Indian private conglomerate Reliance Industries’ refining and petrochemicals business. The reported price for the stake in Reliance, significantly above multiples for comparable deals, shows the importance of Aramco’s introduction to India. This urgency would be reinforced if the Maharashtra refinery is further delayed.
While China has been wooed for years, and Aramco already has joint-venture refineries there, India is increasingly the key future energy market. The US has largely disappeared as an oil and gas importer because of its shale boom, while environmental pressures and mature economies and demographics see the appetites of Europe and Japan for hydrocarbons slipping. Other Asian markets such as Vietnam, Indonesia, Pakistan and the Philippines are fast growing, but none can compare in scale with the two continental giants.
India’s population of 1.3 billion will likely outstrip China’s as early as 2024. After lagging China for more than a decade, Indian economic growth has been a little higher than its Asian rival since 2014, and estimated expansion this year of 6.2 per cent would match the Middle Kingdom’s. China’s economy is maturing and growth is slowing, even before the current escalating trade war with the US.
India remains much less wealthy, and uses barely a quarter of the energy per person, and less than a quarter of the petrochemicals that are used to make plastics in many consumer and construction products. Officially, there are only 22 motor vehicles (excluding motorcycles) per thousand Indians, compared to 179 in China.
Several of Mr Modi’s aims are likely to boost energy demand. His government has not quite achieved its goal of tripling road building, but highway construction has doubled. Poorer and rural households have been offered loans and subsidies to switch to using bottled gas for cooking instead of polluting wood, dung and kerosene. In April last year, it was announced that all villages in the country had been connected to electricity, though around 200 million people remain without.
All these statistics suggest that, while China remains the incumbent, India offers brighter long-term energy prospects. Yet there are several challenges in the way.
In the immediate future, the fears of global recession and trade barriers are affecting India too, with its growth prospects downgraded. Despite the “Make in India” aim of boosting manufacturing to a quarter of the economy, it remains stubbornly stuck around 15 per cent.
Its lively and fractious democracy and federal structure should be more sustainable than its northern neighbour’s authoritarian capitalism, but can hinder big infrastructure and industrial projects, such as the Maharashtra refinery. Crowded cities and gridlock limit the practical number of private vehicles, and fuel prices are significantly higher than in the US and China.
While China has moved boldly in the past couple of years to replace coal with natural gas to clean up its notoriously filthy air, India’s cities have become the most polluted in the world, occupying 22 out of the bottom 30 slots. Annual gas consumption has not grown since 2010, held back by insufficient domestic supply, high prices for imports and a preference for cheap domestic coal.
With rival Pakistan, insecure Afghanistan and US-sanctioned Iran to the north-west effectively barring land access to Middle Eastern and Central Asian gas, Delhi has to rely on liquefied natural gas (LNG) imports that are usually more expensive and perceived as less secure. The current glut of LNG might be gas’s opportunity finally to make some inroads.
India’s energy dowry will not be paid solely in fossil fuels. Since 2017, the country has added 11.1 gigawatts of coal power, but 30.4 gigawatts of solar and wind. Electric rickshaws and motorbikes are popular. Larger battery vehicles have struggled for traction, but policies to encourage local manufacturing of electric cars, offer subsidies and cut sales taxes may lead to progress towards the impossibly ambitious target of phasing out oil-fuelled vehicle sales by 2030.
In the longer term, climate change threatens the reliability of the monsoon, and the Himalayan glaciers that supply the Ganges, the Brahmaputra and the rivers of Indian-administered Kashmir that join the Indus. Agriculture still employs more than two-fifths of Indians, making climate a direct issue of jobs, economics and votes.
India’s tremendous economic and energy future explains its assiduous courting by leading national oil companies. However, its political and regional complexities, environmental and infrastructure challenges mean its energy story will not repeat China’s trajectory. Prospective partners can prosper, if they prepare.
Robin Mills is CEO of Qamar Energy, and author of The Myth of the Oil Crisis
LAST-16 EUROPA LEAGUE FIXTURES
Wednesday (Kick-offs UAE)
FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm
Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm
Inter Milan v Getafe (one leg only) 11pm
Manchester United (5) v LASK (0) 11pm
Thursday
Bayer Leverkusen (3) v Rangers (1) 8.55pm
Sevilla v Roma (one leg only) 8.55pm
FC Basel (3) v Eintracht Frankfurt (0) 11pm
Wolves (1) Olympiakos (1) 11pm
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
TWISTERS
Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
Rating: 2.5/5
The five pillars of Islam
UJDA CHAMAN
Produced: Panorama Studios International
Directed: Abhishek Pathak
Cast: Sunny Singh, Maanvi Gagroo, Grusha Kapoor, Saurabh Shukla
Rating: 3.5 /5 stars
RACE CARD
6.30pm Al Maktoum Challenge Round-1 Group 1 (PA) Dh119,373 (Dirt) 1,600m
7.05pm Handicap (TB) Dh102,500 (D) 1,200m
7.40pm Handicap (TB) Dh105,000 (Turf) 1,800m
8.15pm UAE 1000 Guineas Trial (TB) Dh183,650 (D) 1,400m
9.50pm Handicap (TB) Dh105,000 (D) 1,600m
9.25pm Handicap (TB) Dh95,000 (T) 1,000m
MATCH INFO
Southampton 0
Manchester City 1 (Sterling 16')
Man of the match: Kevin de Bruyne (Manchester City)
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ETelr%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%2C%20UAE%3Cbr%3E%3Cstrong%3ELaunch%20year%3A%3C%2Fstrong%3E%202014%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E65%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20and%20payments%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3Enearly%20%2430%20million%20so%20far%3C%2Fp%3E%0A
Sinopharm vaccine explained
The Sinopharm vaccine was created using techniques that have been around for decades.
“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.
"What is left is a skeleton of the virus so it looks like a virus, but it is not live."
This is then injected into the body.
"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.
"You have to be exposed more than one time to what we call the antigen."
The vaccine should offer protection for at least months, but no one knows how long beyond that.
Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.
“Since it is inactivated, it will not last forever," she said.
Sweet%20Tooth
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3EJim%20Mickle%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EChristian%20Convery%2C%20Nonso%20Anozie%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
UAE currency: the story behind the money in your pockets
