Japan will test its first $35 million hydrogen train next month
RIYADH: Energy investments in the Middle East and North Africa are expected to continue to boom throughout 2022 due to high oil and gas prices, according to The Arab Petroleum Investment Corporation.
APICORP’s MENA Energy Investment Outlook 2021-2025 forecasts $805 billion in investments; however, new projections indicate that investments will increase beyond this figure.
“Investments in the power sector in the MENA region are also expected to continue to flourish, with an accelerated transition to renewable energy,” the statement said, quoting Ahmed Ali Attiga, CEO of APICORP, a multilateral development finance institution. .
The region is expected to add about 20 gigawatts of solar power over the next five years, Attiga revealed.
In addition, strong investment pipelines are directed towards downstream projects, particularly in brownfield petrochemicals. This signals the region’s willingness to support the sector.
In light of the energy transition, sustainable and comprehensive policies are essential to achieve an adequate balance between emission reductions, energy affordability and energy security, the statement points out.
Additionally, due to the pandemic, macroeconomic policy uncertainty and supply chain issues, volatility in commodity markets is expected to persist through 2022.
The energy market, on the other hand, will remain relatively stable due to increased oil production from OPEC+ and non-OPEC countries as well as increased gas production and LNG supply.