The cement manufacturers expect gas prices to rise from $1.50 per million British thermal unit (mmBtu) to $3 per mmBtu. Oman Cement therefore predicted its gas costs to rise by some $17.1 million in 2015, with Raysut Cement forecasting a gas expenditure hike of about $12.4 million for the year ahead.
The decision comes a week after the <a href=’https://theenergyyear.com/companies-institutions/opec/’>OPEC decision on Thursday 27 November to maintain its planned oil production levels, in the face of plunging oil prices.
Oman has been hit hard by OPEC’s decision amidst the oil price slump, with the sultanate predicted to rein in state spending as a result. In November, the state-run Oman News Agency predicted that the country was likely to record a deficit of $7.9 billion in 2015.
Although a gas price of $3 per mmBtu still compares favourably to rates in many countries, particularly those outside the GCC region, Oman Cement has appealed against the price rise. Both companies expect the ministry to increase prices of their feedstock gas annually.
Last Friday, ratings agency Standard & Poor’s downgraded its outlook for the country from “stable” to “negative” because of the recent fall in oil prices amplifying fiscal risk.
Spain's Iberdrola plans to triple its offshore wind assets in the coming years, bringing their value to USD 18 billion,… Read More
Saipem has been awarded a USD 850-million contract for subsea works in Angola by local BP-Eni joint venture Azule Energy,… Read More
Arrow Exploration has spud a new production well on the Tapir block in Colombia’s Llanos Basin, the company announced on… Read More
Petronas has made a third oil and gas discovery in Suriname's offshore Block 52, the Malaysian company announced on Wednesday Read More
Japanese power generation player JERA on Thursday announced plans to invest USD 32 billion in LNG, renewables and new fuels… Read More
Chevron is planning to exit its North Sea operations after 55 years of activity in the oil hotspot, Reuters reported… Read More
This website uses cookies.