JULYASIA BUSINESS OUTLOOK8NEWSROOMSAUDI ARAMCO SECURES $25 BILLION CONTRACTS FOR JAFURAH GAS PROJECTChina's BYD inaugurated its first electric vehicle plant in Southeast Asia, located in Thailand, on Thursday, July 4. This marks a significant milestone for the automaker as it solidifies its dominant position in the region's rapidly growing EV market. During the opening ceremony, BYD CEO and president Wang Chuanfu highlighted Thailand's progressive stance on EVs, stating, "Thailand has a clear EV vision and is entering a new era of auto manufacturing. We will bring technology from China to Thailand."The establishment of the BYD plant is part of a broader wave of investments from Chinese EV manufacturers, totaling over $1.44 billion, facilitated by Thai government subsidies and tax incentives. This investment wave reflects the strategic shift of Chinese automakers towards expanding their footprint in Southeast Asia. Following the announcement, BYD's Hong Kong-listed shares saw a notable increase, rising 3.2 percent to HK$237.60, marking their biggest intraday jump since June 13.Thailand aims to transform 30 percent of its annual vehicle production, which stands at 2.5 million units, into EVs by 2030 as part of its ambitious government plan. Traditionally a regional auto assembly and export hub, Thailand has been dominated by Japanese carmakers such as Toyota Motor, Honda Motor, and Isuzu Motors. However, the entry of BYD signifies a shift in the automotive landscape. Saudi Aramco, a leading energy company in the world has awarded $25 billion worth of contracts for the development of its Jafurah gas project to increase production capacity and cut emissions that contribute to global warming, as per sources.The contracts that were presented include $12.4 billion for increasing production at the Jafurah gas field and $8.8 billion for expanding the master gas system, which delivers natural gas to buyers across the nation. Gas rig contracts worth $2.4 billion were also awarded by Aramco, as per company statement,"These contract awards demonstrate our firm belief in the future of gas as an important energy source, as well as a vital feedstock for downstream industries," reported Bloomberg quoting Amin Nasser, chief executive officer of Aramco from a company statement on Sunday.Saudi Arabia has the greatest gas reserves across the globe, and the improvement of such a reserve in the Jafurah field, which is assessed to hold 200 trillion cubic feet of flammable gas will cost almost $100 billion. This will expand Aramco's natural gas production more than 60 percent by 2030 which is important for the rising interest, as indicated by the company executive."The scale of our ongoing investment at Jafurah and the expansion of our Master Gas System underscores our intention to further integrate and grow our gas business to meet anticipated rising demand," said Nasser. BYD OPENS FIRST EV FACILITY IN SEAJULYASIA BUSINESS OUTLOOK8
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