Countries in the Middle East and North Africa (MENA) region have a total of US$1 trillion in committed and planned investments in the energy sector over the next five years as electricity demand grows and regional economies invest more in natural gas, petrochemicals, and renewable energy.
This is the gist of new research from the Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, which has just published its ‘MENA Annual Energy Investment Outlook 2019’ with estimates for planned and committed investments between 2019 and 2023. As per APICORP, committed investments are investments in projects currently under execution, while planned investments refer to a country’s spending target.
Investments in the MENA region are expected to be nearly US$1 trillion in 2019-2023, up by 5 percent compared to APICORP’s investment outlook from last year, as the energy sector in those countries is set to see a greater transition towards gas, downstream, and petrochemicals sectors, plus significant renewable energy additions.
Of this US$1 trillion, planned investments make up the majority - US$613 billion - while committed investments in projects underway account for the rest, according to the bank.
Of all investments through 2023, the largest share - 36 percent or US$348 billion - is set to be spent in the power sector, followed by the oil sector with US$304 billion in upstream, midstream, and refining investments, US$138 billion of which are committed investments. Investments in the gas sector across the MENA region are set to reach US$186 billion, of which US$87 billion are in committed investments. The petrochemical sector will see investments exceeding US$123 billion, including US$33 billion in projects underway.
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