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Market Daily Report: Bursa Malaysia Ends Nearly Flat As Construction Stocks Attract Buying

 KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.

Aramco Cancels Saudi Chemical Project, Shifts Focus to Asia

Saudi Aramco has canceled plans to build a 400,000 barrel-per-day refinery and chemicals project at Ras Al Khair on Saudi Arabia’s Gulf coast and has shelved proposals to move the project to Jubail , according to sources familiar with the decision. This move reflects Aramco’s recalibration of its spending plans , with a greater focus on expanding its presence in Asia , particularly China, where it is pursuing several deals to secure long-term demand for Saudi crude . The cancellation of the Ras Al Khair project underscores Aramco’s shift in strategy toward chemicals production , particularly as the demand for plastics is expected to outlast that for gasoline and diesel, driven by the energy transition . Aramco is already expanding other chemical facilities in Saudi Arabia and is reviewing the viability of three additional chemical projects in Jubail and Yanbu . Aramco’s decision is also influenced by uncertainty regarding domestic demand and the scale of Crown Prince Mohammed Bin S...

US Loan Backs Petrochemical Plant in Malaysia Despite Biden's Climate Pledge

The US Export-Import Bank (Ex-Im Bank) has authorized a US$690 million loan to support the construction of a petrochemical plant in Malaysia , despite objections from climate activists. Critics argue that the project contradicts the Biden-Harris administration's promise to halt public financing for overseas fossil fuel projects. In 2021, President Joe Biden issued an executive order to curb such financing, and the US signed an international pledge with 33 nations to cease supporting fossil fuel ventures. Nevertheless, the Ex-Im Bank, an independent agency, has continued to back such projects, authorizing US$2.2 billion in new oil, gas, and coal-related projects abroad since May 2023 . Environmental groups have criticized the Ex-Im Bank’s focus on fossil fuel investments, arguing in a letter to US Treasury Secretary Janet Yellen and the bank’s chair Reta Jo Lewis that this undermines the US’s climate credibility. Despite this, the Pengerang Energy Complex in Malaysia, which ...