Changes in Energy Consumption Cause the Middle East to Reorient its Oil & Gas Supply Chain

Ti is just days away from hosting the Emerging Markets Logistics Conference which will take place in Dubai over June 4th and 5th 2014. As the market leader in knowledge provision on Emerging Markets, Ti has designed a conference programme which will look at the major challenges and opportunities facing logistics service providers in the Middle East and help today’s industry leaders better understand the dynamics of operating in the region. Ahead of the conference, we at the Ti Blog are taking the opportunity to bring you several recently published articles focussing on the region as well as the conference and its sessions that first appeared as part of Ti’s free Logistics Briefing service. For more information on the conference, you can visit www.ticonferences.com. To sign up for Ti’s Logistics Briefing service, click here.

Long known as the global focal point for oil and petroleum exports, the Middle East remains rich in oil reserves and enjoys a geographic advantage close to its key customers. However, focus is shifting to the growing needs of Asia as the US lessens its dependence on oil imports. In fact, according to the International Energy Agency (IEA), Asian countries will consume up to 90% of oil produced in the GCC region – in particular China and India.

The IEA further points out that along with Asia, emerging markets will collectively consume more oil than developed countries, as will the Middle East itself as the region promotes its social and economic development plans.

How will these changes affect the Middle East oil and gas supply chain? Be sure to join us at Ti’s Emerging Markets Conference where we will discuss one of the Middle East’s most important industries. Scheduled for June 4 and 5 in Dubai, Joel Ray, Ti Head of Consulting, will lead a discussion on not only changes within the Middle East oil and gas supply chain but also on current and future strategies being implemented concerning supply chain risks surrounding this important industry.

“The region is set to see massive investment over the coming years. In terms of logistics, the local heroes are likely to be the main beneficiaries as they already have long standing relationships with the major oil and gas producers and the infrastructure already in place,” said Joel Ray – Head of Consulting at Transport Intelligence.

Indeed, within the Middle East, logistics providers are expanding on relationships within the oil and gas industry and are providing solutions to meet changing needs. For example, in 2013, Emirates National Oil Company (ENOC), a retailer of fuel in the UAE, and Tristar Transport, a Dubai–based subsidiary of Agility providing multimodal liquid logistics services, established a new joint venture in Saudi Arabia focused on specialised logistics services for the Kingdom’s petroleum and chemicals sectors.

The joint venture will initially operate a small fleet of vehicles for supporting the logistics requirements of the oil, gas and chemicals sectors in Saudi Arabia. According to the companies, there are plans to expand its fleet strength to 500 vehicles by 2017. The company will also operate open and covered warehousing facilities for storage of oil and chemicals, and an ISO tank cleaning facility to support the growing requirements from the industry.

Also in 2013, Hoyer, a German-based chemicals logistics provider, established a joint venture with the Globe Marine Group of Saudi Arabia and the Sharaf Group of the UAE. The new company, Hoyer Saudi Arabia, will coordinate and implement intermodal bulk liquid transport operations in Saudi Arabia and other GCC countries as well as a third-party drumming plant in Al Jubail. It will also offer on-site logistics for the region’s petrochemical industry.

To learn more about the oil and gas supply chain, Ti published a report on this fascinating topic. For information, please click here for the report brochure.

Of course, please also join us on Twitter to keep up with the latest in conference news as well as to share your thoughts at #TiDubai2014.

For additional information and to register for the event, please visit www.ticonferences.com or contact Sarah Smith, head of marketing and events at ssmith@transportintelligence.com.

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