The Kingdom is moving to enhance its capabilities in producing gas and liquefied gas, through the expansion of facilities and infrastructure related to the sector, in the context of the growing demand for gas and its role in the energy mix, as Saudi Aramco aims to increase gas sales by 80 percent by 2030, compared to the levels of 2020 and 2021.
This is what was revealed by the Executive Vice President of the Gas Business Sector at Saudi Aramco, Abdul Karim Al-Ghamdi, during the dialogue session within the work of the World Petroleum Conference, in Riyadh, today, revealing the establishment and start of operation of between 6 and 7 gas and liquefied gas facilities during the period from 2025 to 2027.
He said that oil production assets and export capabilities are distributed in different regions of Saudi Arabia, which enhances the ability to deal with unrest and unexpected scenarios, and that his country has an extensive gas network, in addition to the main gas system that extends thousands of kilometers from east to west.
He explained that more than 90 percent of the materials needed by Aramco were provided from local sources during the turmoil associated with global conflicts, and that his company relies on partnerships in a number of assets and facilities, including refining facilities and pipeline networks.
According to Al-Ghamdi, the flexibility of the energy sector is not limited to dealing with crises after they occur, but rather includes anticipating potential failures, protecting assets, diversifying their locations geographically, and ensuring their ability to work in exceptional circumstances.
He added that Aramco relies on integrated operating systems, interconnected supply chains, and advanced data analysis solutions to help protect facilities and reduce the risks of disruption.
The pound sterling fell slightly against the euro on Tuesday, after recording in the previous session its highest level in about 16 months, supported by a decline in financial concerns and increasing expectations of a rise in interest rates by the Bank of England.
The pound rose against the dollar, which in turn declined, with oil prices falling and market expectations that geopolitical tensions would remain under control ahead of the US congressional midterm elections, according to Reuters.
The pound increased by 0.19 percent to 1.334 dollars, while it fell by 0.05 percent against the euro to 84.48 pence per euro, after reaching 84.45 pence on Monday, which is its highest level since June 2025.
ING currency strategist, Francesco Pizzoli, said that the special risks surrounding the euro are unlikely to disappear soon, adding that the Bank of England has sent clear enough signals of its willingness to raise interest rates.
He added: “We still believe that interest rate expectations in Britain for 2027 tend to be overly stringent, as they indicate increases of 100 basis points by July, but the possibility of implementing one or two increases is becoming stronger.”
For her part, policymaker at the Bank of England, Megan Green, said on Tuesday that the International Monetary Fund raising its forecast for the growth of the British economy this year reinforces indications that monetary policy is not imposing sufficiently large restrictions.
The British budget expected on October 28 represents one of the potential risks for the pound, in light of the limited concerns expressed by investors about the financial outlook. The Governor of the Bank of England, Andrew Bailey, recently warned of the need for governments to intensify their efforts to restore confidence in public financial conditions.
Analysts pointed to Prime Minister Andy Burnham's statements on Monday that he would seek to reach an agreement to improve trade relations with the European Union during a summit scheduled for next month, in a move seen as a supportive factor for the outlook for the British pound.
Rabobank noted that net short positions on the pound sterling increased for the third week in a row, reaching the highest level since June, in a reflection of investors’ concerns about the British budget.
On the other hand, net short positions on the euro increased further, reaching the highest level since February 2020, while the euro was the worst-performing currency among the major G10 currencies since the beginning of the month.
On Tuesday, the International Monetary Fund warned Britain of the need to adhere to plans to reduce the fiscal deficit, at a time when government borrowings are increasing in other economies, more than two weeks before Finance Minister John Healey presented his first annual budget.
The Fund praised Britain as the only major advanced economy that has set clear plans to reduce government borrowing in the coming years. But the Fund's new chief economist, Silvana Tenrero, stressed the importance of not deviating from these plans, in light of the rising debt service costs and pressures to increase spending on defense and energy support, according to Reuters.
Tenrero said, during a press conference in Bangkok on the sidelines of the Fund's annual meetings, that Britain has already begun the path of consolidating public financial conditions, adding that the message addressed to her is to continue on this path and adhere to it.
Britain recorded a budget deficit equivalent to 4.4 percent of GDP last year, while aiming to achieve a balance between current spending and tax revenues by the fiscal year 2029-2030. However, previous governments have repeatedly failed to achieve similar goals.
High energy costs and debt are putting pressure on growth
The IMF expects that rising energy costs and higher long-term interest rates will slow the growth of the British economy next year, despite raising its growth forecast for the current year.
Despite the deficit reduction plans, Britain's government borrowing costs are still the highest among the G7 countries, and they rose last week to their highest levels since 1998, as part of a global sell-off in bond markets.
The Fund raised its forecast for British economic growth in 2026 to 1.3 percent, compared to its previous estimates of 1 percent in July and 0.8 percent in April. But he expects growth to slow to 1.2 percent in 2027, which would put Britain in the middle of the rankings of major advanced economies.
The Fund said, in updating the “World Economic Outlook” report, that the rise in energy prices and long-term interest rates will negatively affect consumption and investment.
For his part, Healey said that the expectations reflect the ability of the British economy to show strong flexibility, despite the conflicts in the Middle East and Ukraine.
The Bank of England expects that the global increase in energy prices will push inflation to a peak of more than 4 percent early next year.
Megan Green sees justification for raising interest rates
For her part, a member of the Monetary Policy Committee at the Bank of England, Megan Green, said that the IMF’s expectations reinforce her view that the key interest rate of 3.75 percent does not play a major role in curbing inflation.
Megan Green, who has voted in favor of raising interest rates at the bank's meetings since June, added that the Fund's review of its expectations for British GDP growth to an increase does not surprise her, considering that this reflects that monetary policy does not impose sufficient restrictions on economic activity.
The IMF expects inflation in Britain to average 3.3 percent in 2026 and 2.8 percent in 2027, levels close to its expectations for the eurozone and the United States.
The Fund called on central banks around the world to move quickly to raise interest rates when public confidence in their ability to achieve inflation targets declines, and to resist pressures aimed at accepting inflation that exceeds the target or excessive levels of borrowing.
Unlike the European Central Bank and the US Federal Reserve, the Bank of England has not raised interest rates since the outbreak of the US-Iran war in February, despite inflation exceeding its 2 percent target during most of the past five years.
Financial markets are currently pricing in a 90 percent probability that the Bank of England will raise interest rates following its meeting in November, and are also anticipating three additional increases during 2027, noting that previous expectations of a similar tightening of monetary policy earlier in the year did not materialize.
