Clean Energy Trade Mission to Saudi Arabia, UAE, Qatar, and Oman, October 24-November 1, 2000

Mission Statement

Clean Energy Trade Mission

Saudi Arabia, the United Arab Emirates, Qatar, and Oman

October 24-November 1, 2000

Overview

The U.S. Department of Commerce is supporting President Clinton's International Clean Energy Initiative through the development of a dynamic trade promotion program which emphasizes the positive contribution that American companies and U.S. exports can make to a cleaner environment and energy efficiency.

The Department's Clean Energy Trade Initiative focuses on developing market opportunities for U.S. companies in the energy supply, manufacturing, commercial, residential, transportation, and environmental technology sectors.

The objectives of the Clean Energy Trade Initiative include: increasing the visibility of U.S. companies as global leaders in "clean energy" technology, deepening relationships with key developing country policymakers, participating in the policy dialogue (regulatory reform, privatization, etc.) with government officials, expanding communications with private sector organizations, trade promotion, and long-term market development.

Mission Description

This mission is being organized as part of President Clinton's Clean Energy in the 21^st Century International Initiative. The Deputy Assistant Secretary of Commerce for Basic Industries or a designee will lead a clean energy trade mission to Saudi Arabia, the United Arab Emirates, Qatar, and Oman on October 24-November 1. The mission will include representatives from U.S. energy companies and energy equipment and service providers interested in entering the Arabian Gulf energy market or in expanding their presence in the region. The focus of the mission will be natural gas infrastructure and power generation. This mission can be an excellent opportunity for small-to-medium-sized exporters new to the Saudi, UAE, Qatari, and Omani markets to gather primary information on these markets and on potential commercial opportunities in these countries.

Commercial Setting

The Kingdom of Saudi Arabia has embarked on a massive development of both the natural gas and power sectors. While a natural gas extraction and distribution network has been constructed in the past 10 years, demand for gas has become so great that the system will double in size over the next 5 years. Greatly expanded gas supplies are needed for a similarly massive expansion of the petrochemical industry sector and for power generation. Saudi Arabian power needs are projected to expand by 30,000 megawatts in the next 10 years, requiring an investment of more than $20 billion. Most of this power will be generated by combined-cycle gas turbines. Petrochemical and other downstream gas-supplied industries ranging from steel to plastics to fertilizer to a whole range of primary and intermediary petrochemical products are expected to require an additional several billion cubic feet of gas per day. Gas pipeline networks, massive processing facilities and the above noted industries will all require environmental controls and services.

In the United Arab Emirates (UAE), the enactment two years ago of the Federal Environmental Protection Law has created unsurpassed export opportunities for specialized international and U.S. companies to enter the UAE market. The UAE Government is seriously considering the application and adoption of the most effective environmental protection measures in the world. In the area of natural gas and power generation, some major power projects coming up in Abu Dhabi and Dubai are the Taweelah A1 Plant, Taweelah C Plant, Al-Shwaihat Plant, Mirfa Power Plant, Jabal Ali K Plant, Al-Dhabbiyah Plant, and a 400 kilovolt substation in Mussafa Free Industrial Zone. The estimated cost of these projects will exceed $100 billion over the next 10 years. Work has started on the $8 billion Dolphin Gas Project which covers Qatar, the UAE, and Oman. The project is expected to be the world's largest gas program and a major strategic initiative designed to stimulate industrial investments in the UAE and develop an extensive gas supply and infrastructure system in the Gulf region. The project is expected to deliver Qatari gas to the UAE, Oman, and eventually South Asia via an undersea pipeline.

Qatar, which has immense natural gas reserves, has undertaken ambitious plans to develop the liquefied natural gas industry (LNG) and to export LNG to the rest of the world. The locally produced gas is also used as feed for petrochemical, chemical fertilizers, vinyl, fuel additives plants in Qatar, in addition to fueling the power generation and water desalination plants. Other industries are yet to make large-scale utilization of natural gas.

Oman's near term development strategy centers on expansion of LNG exports and domestic gas-based industries and power, creating significant potential opportunities for U.S. companies in natural gas development and power generation. Later this year, Oman will inaugurate its USD 2 billion Oman LNG Plant, a 6.6 MTPA facility that will deliver LNG in long-term contracts to Korea, Japan, and India. New gas-driven power projects expected to be completed in the coming years include a USD 250 million 200 MW plant in Salalah, a 200 MW plant in Sharkiya, and a 400 MW power/desal plant in Barka.

Mission Goals

The mission will seek to increase U.S. exports of clean energy products and services to the Gulf region. The mission will further U.S. commercial policy objectives, advance U.S. clean energy business interests, and address market access issues in the region. The mission will focus on U.S. company exploration of new business opportunities. The mission will also strategically position delegation members for potential upstream opportunities in the countries visited.

Mission Scenario

The mission will visit Muscat, Oman (October 24); Doha, Qatar (October 25); Abu Dhabi and Dubai, United Arab Emirates (October 28-29); and Riyadh, Dhahran, and Jubail, Saudi Arabia (October 30 - November 1).

The mission will expose the U.S. company delegation to:

Up-to-date information on the economic/commercial climates;
Meetings with senior level government officials;
Meetings with the U.S. business community in Saudi Arabia, UAE, Qatar, and Oman;
Forums, roundtables, and other policy-focused discussions with senior officials and key decision-makers.

Timetable

The mission is scheduled to arrive in Muscat, Oman on Monday, October 23, 2000 and conclude in Saudi Arabia on Wednesday, November 1 after a full day of activities. Official events in connection with the mission are planned for October 24-November 1, 2000 (including a weekend [October 26-27] in Dubai, as the work week in the Arabian Gulf is Saturday to Wednesday). The precise schedule will depend on the availability of the Arab government and company officials, as well as the specific goals and interests of the mission participants.

Criteria for Company Participation

Eligibility

Eligible companies must demonstrate a capacity to deliver relevant equipment or services to Saudi Arabia, the United Arab Emirates, Qatar, and Oman.

Participating companies must be incorporated in the United States.

A company is eligible to participate only if the products and/or services that it will promote on the relevant mission are either (a) manufactured or produced in the United States; or (b) if manufactured or produced outside the United States, are marketed under the name of a U.S. firm and have U.S. content representing at least 51 percent of the value of the finished good or service.

Selection Criteria

Companies will be selected on the basis of:

Consistency of the company's market development goals with the scope and desired outcome of the mission as described.

Past, present, or prospective business in Saudi Arabia, the United Arab Emirates, Qatar, and Oman.

Diversity of company size, type, location, demographics, and traditional under-representation in business.

Timely receipt of signed mission application, participation agreement, and participation fee of $3,000, and $500 for each additional representative.

Whether the company's overall business objectives, including those of any U.S. or overseas affiliates, are fully consistent with the mission's foreign and commercial policy objectives.

Mission recruitment will be conducted in an open and public manner, including publication in the Federal Register, posting on the Internet, press releases to the general and trade media, direct mail and broadcast fax, e-mail, notices by industry trade associations and other multiplier groups, and at industry meetings, symposia, conferences, trade shows, etc.

An applicant's partisan political activities (including political contributions) are irrelevant to the selection process.

Time Frame for Applications

Applications may be submitted immediately to Joseph Ayoub, Energy Division - Basic Industries, U.S. Department of Commerce, Room H4056, Washington, DC 20230; telephone: (202) 482-0313; facsimile: (202) 482-0170 or 5361; Internet: Joseph_Ayoub@ita.doc.gov

All applications must be received by June 1, 2000.