New base energy news issue 882 dated 28 june 2016

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Energy News 28 June 2016 - Issue No. 882 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: DEWA picks Masdar-led group to build 800 MW solar park
The National + ArabianBusiness
Abu Dhabi’s clean energy company, Masdar, will spearhead Dubai’s third phase of its mega-solar
park, shattering global records.
The Dubai Electricity and Water Authority (Dewa) announced on Monday that a Masdar-led
consortium won the contract for the 800 megawatt phase for the Mohammed bin Rashid Al
Maktoum solar park. Masdar will team up with Spanish firms, Fotowatio Renewable Ventures
(FRV) - an Abdul Latif Jameel company, and Gransolar Group.
“The selection of the Masdar-led consortium to develop this project is a testament to the
company’s experience and track record over the last decade," said Sultan Al Jaber, chairman of
Masdar, said that the announcement reinforced “Abu Dhabi and Masdar’s growing contribution to
the development of the renewable energy industry, both domestically and internationally".
The park will be the largest single-site solar project in the world with a planned capacity of
5,000MW by 2030. This is enough to power 800,000 homes with a total investment of Dh50
billion.
The Abu Dhabi and Saudi Arabian consortia beat four contenders for the third phase at a record
breaking bid of 2.99 US cents per kilowatt hour (kWh). This follows the second phase, which

totalled 200MW - and also saw a then world record broken at 5.84 cents per kWh from Saudi
Arabia’s Acwa Power and its Spanish partner TSK.
Dewa managing director and chief executive,
Saeed Al Tayer, said that the project had
attracted “huge interest".
“Dewa received several offers from international
solar energy companies, reflecting the trust and
interest from investors in large projects adopted
by the Dubai government," he said, adding that
the emirate had favourable existing regulations
and legislation that permitted private sector
partnerships.
The utility has increased the capacity of the park
twice from its initial 1,000MW plan given that the price to generate solar energy has steadily fallen.
While there are various components to pricing electricity, one big factor is that the cost of solar PV
panels has dropped by 75 per cent in the five years to 2014 and further reductions are expected.
The International Renewable Energy Agency (Irena), headquartered in the capital, released a
report last week that showed the technology costing, on average, between 5 to 10 cents per kWh
in Europe, China, India, South Africa and the US. The organisation said that with these costs
continuously dropping, solar energy could meet up to 13 per cent of global power needs by 2030.
“Recent analysis from
Irena finds that cost
reductions for solar
and wind will continue
into the future, with
further declines of up
to 59 per cent possible
for solar PV in the next
10 years," said Irena
director general Adnan
Amin. “This
comprehensive
overview of the solar
industry finds that
these cost reductions,
in combination with
other enabling factors,
can create a dramatic
expansion of solar
power globally. The renewable energy transition is well underway, with solar playing a central
role."
Earlier this month, Dewa released another tender for advisory firms for the Mohammed bin Rashid
Al Maktoum solar park - this time looking to deploy concentrated solar power (CSP). The utility
plans to see 1,000MW of the solar park to house CSP - which has storage capabilities unlike PV.
Dubai is looking to have 7 per cent of its total power output from clean energy sources in the next
four years, followed by 25 per cent by 2030 and 75 per cent by 2050.

Abu Dhabi solar project could match Dubai record-low prices
LeAnne Graves
Bids for the upcoming 350 megawatt solar project in Abu Dhabi’s Sweihan could match the
record-low prices or come even lower than the one announced in Dubai on Monday, industry
experts said.
The third phase of Dubai’s Mohammed bin Rashid Al Maktoum solar park set a new benchmark
for the industry at 2.99 US cents a kilowatt-hour. Abu Dhabi’s
Masdar and its partners Fotowatio Renewable Ventures (FRV)
and Gransolar Group won the contract to build the 800MW
plant.
Since a Masdar-led consortium submitted such a low bid, it’s
possible for a lower bid for the Sweihan project, which is due to
come online in 2019. It will be capable of producing enough
electricity to power more than 50,000 homes in the capital.
“The nature of bids is specific," said Bader Al Lamki, the director of clean energy at Masdar. “If
similar parameters are available, there will be a good probability that the [Dubai] number is
achieved."
Those factors include the type of land, visibility and financing. Sources close to the Abu Dhabi
project say that the land is flat, unlike the rolling hills of the Dewa mega-solar park. This would
indicate an easier installation with better visibility – driving down costs. The other important factor,
particularly for low-cost financing, is the credit rating. Credit ratings agencies have assigned a high
AA rating to Abu Dhabi.
“It will be hard to justify why Abu Dhabi would be more expensive than Dubai because the off-
taker has an equally solid rating and there is little difference in terms of capital and operational
expenditures," said Frank Wouters, a former director of Masdar Clean Energy.
“The other thing is the cost of financing. I don’t think there’s been a major change in the cost of
borrowing and Masdar will be able to tap into international banking relationships through
Mubadala – and costs are still low."
Nathan Weatherstone, the head of sustainable business at NBAD, said that in the solar PV sector,
up-sizing projects has allowed economies of scale to drive down solar panel costs and cyclically
low commodity prices have helped to minimise the costs that make up the balance of plant.
“Other drivers have also been important, such as the availability of low cost, long tenor capital and
the emergence of an ultra-competitive market of regional clean energy developers. Based on
these parameters, it is entirely reasonable to think that the UAE’s next large scale PV project will
continue the trend of ever-decreasing tariffs," Mr Weatherstone said.
The advisers for the bid were chosen in March, with Akin Gump Strauss Hauer & Feld selected to
handle legal, Alderbrook Finance taking on finance and Fichtner Consulting Engineering as the
technical adviser. Bids were supposed to be submitted next month with the shortlisted contenders
expected in September, but sources said that it had been pushed back at the request of
companies.
Jenny Chase, a solar analyst for Bloomberg New Energy Finance, said that she did not predict
much downwards flexibility in the Abu Dhabi tender pricing if it had a fundamental link to
economics. “The Dubai tender already stretches all reasonable economic assumptions," she said,
adding that the Sweihan project would likely have the same price.

Qatar: Total wins 30 percent stake in Al-Shaheen oilfield
reuters
France's Total (TOTF.PA) has won a 30 percent stake in a new contract to operate Qatar's largest
offshore oilfield, a source familiar with the matter told Reuters on Monday.
The source said state-owned Qatar Petroleum (QP) will keep the
remaining 70 percent in the new joint venture for the Al-Shaheen field,
which is 80 km (50 miles) off Qatar's coast and currently produces
around 300,000 barrels per day (bpd).
Six international oil firms including BP (BP.L) and Royal Dutch Shell
Plc (RDSa.L) have bid to operate the oilfield. For years it was
expected that Denmark's A.P. Moller-Maersk would renew its 25-year production agreement on
Al-Shaheen field when its license runs out in 2017.
But the Gulf state surprised the company last year by putting out a tender for the field which
Maersk Oil has been operating since 1992. An official announcement and a signing ceremony
was expected on Monday night at around 1830 GMT.
Winning Al-Shaheen stake is the second major upstream development deal struck by Total with a
Gulf oil producer in the past couple of years. In January last year, Total became the first oil major
to renew a 40-year onshore concession in Abu Dhabi, putting its peers under pressure to improve
terms after the French firm made the best offer and signed an agreement for 10 percent stake to
help operate the United Arab Emirates' biggest oilfields.

Oman: Phase 1 of Ras Markaz park set for 2019 launch
Oman Observer -Conrad Prabhu –
A contract for initial construction work on a major crude oil storage terminal planned at Ras
Markaz on the Sultanate’s Wusta coast could be floated as early as before the end of this year,
according to a high-ranking official associated with the project.
Hilal bin Ali al Kharusi, Chairman of Oman Tank Terminal Company LLC (OTTCO) — a subsidiary
set up by Oman Oil Company to execute the landmark venture — was quoted as saying that a
team is currently working on the final engineering design of the terminal.
Speaking to Duqm Economist, a quarterly news magazine of the Special Economic Zone Authority
at Duqm (SEZAD), Al Kharusi said OTTCO was also studying a possible pipeline link between
Ras Markaz and Saih Nihada in central Oman where it will tie-in with the Main Oil Line carrying
Oman Export Blend crude to Mina Al Fahal.
An investment estimated between $300 — 400 million is proposed to be ploughed into the
construction of around six million tonnes of crude storage capacity as part of Phase 1 of the
ambitious project. The capacity’s is proposed to be gradually ramped up to reach a world-scale
200 million barrels over several years depending upon demand.
Royal Decree 5/2016, promulgated earlier this year, formally placed the giant Ras Markaz Crude
Oil Park project within the remit of the Special Economic Zone Authority at Duqm (SEZAD), a
world-scale industrial hub under development around 70 kilometres to the north of the terminal.
Commenting on planned linkages between the Raz Markaz terminal and the Duqm Refinery,
currently under early stages of development within the SEZ, Al Kharusi said the refinery will
receive its feedstock via a pipeline that connects with the crude oil park at Ras Markaz.
OTTCO, he said, will also invest in offshore facilities to support, among other things, the import of
crude to feed the refinery. The offshore facilities will be designed to handle Suezmax and
Panamax carriers, as well as Very Large Crude Carriers (VLCCs), he said.

Furthermore, OTTCO has been working to promote the project globally with a view to securing the
refinery’s feedstock requirements as well as attracting customers to Ras Markaz. “We are working
to attract different types of oil from other countries, in addition to Omani oil in line with the Duqm
Refinery’s plan for the (processing) of different types of crude oil,” the Chairman was quoted as
saying.
OTTCO’s project director Said bin
Hamoud al Maawali noted that Phase 1 of
the crude oil park will be brought into
operation in 2019. This capacity is
primarily earmarked for the storage of
crude shipped in by sea.
Additionally, the terminal will be designed
to allow for the blending of different types
of crude oil, and the swift handling of
tankers. Operational availability of the
terminal is expected to be in excess of 99
per cent, Al Maawali added.

Malaysia: SapuraKencana signs gas sales agreement for B15
gas field… Source: SapuraKencana
SapuraKencana Energy Sarawak ('SKE'), a wholly-owned subsidiary ofSapuraKencana Petroleum
Berhad ('SKPB') has signed theSK310 Upstream Gas Sales Agreement ('UGSA') in relation to the
production of gas from the B15 Gas Field on Thursday, 23 June 2016, between PETRONAS as
Gas Buyer and the SK310 Production Sharing Contract ('PSC') Contractors as Joint Sellers.
SKE is the Operator of Block SK310 PSC which was awarded by PETRONAS on 17 June 2008.
SKE has participating interest of 30%, PETRONAS Carigali, 40%, and Diamond Energy Sarawak,
a subsidiary of Mitsubishi Corporation, 30%.
The B15 Gas Field which
was discovered in
December 2010 is located
within the SK310 PSC area,
offshore East Malaysia. The
development will comprise a
central processing platform
with a 35km gas evacuation
pipeline to be tied into the
existing infrastructure.
The B15 Gas Field will
deliver gas to the Malaysia
Liquefied Natural Gas
(MLNG) complex in Bintulu,
Sarawak. The first gas
delivery is targeted to be in
the fourth quarter of 2017.
'I would like to thank PETRONAS and the SK310 JV partners for their efforts in getting the project
to realisation. The SK310 UGSA marks SKE’s first participation in a Gas Sales Agreement for
East Malaysia,' said Tan Sri Dato’ Seri Shahril Shamsuddin, President & Group CEO of SKPB.

Tanzania: Aminex extends licence term for the Mtwara Licence
in the Ruvuma PSA… Aminex
Aminex has announced that it has completed discussions with the Tanzanian Petroleum
Development Corporation (‘TPDC’) in relation to extending the licence term for the Mtwara
Licence of the Ruvuma Production Sharing Agreement (‘Ruvuma PSA’) which was due to expire
late December 2016. A one-year extension has been approved by the TPDC, which is processing
the extension for Ministerial approval and signature.
Furthermore, the Company has completed discussions with the TPDC with regards to transferring
the drilling obligations in the northern Lindi Licence covered by the Ruvuma PSA into the southern
Mtwara Licence, which includes the
appraisal area for the Ntorya
discovery.
With the support of the TPDC, the
transfer of the Lindi drilling
obligations to the Mtwara licence
area is also being processed for
Ministerial approval and signing.
Thereafter, the Company intends to
drill the Ntorya-2 well to satisfy the
appraisal drilling obligation and
then to apply for a 25-year
development licence subject to its
success.
The Company also announces that
its lender has granted an 18-month
extension until 31st January 2018
to the repayment date of its
corporate loan facility on existing
terms.
As recently announced, the power
generation system and other
auxiliary facilities at Kiliwani North
have been completed and
commissioning of the gas plant and
sub-sea pipeline commenced on 4
April 2016. The Company continues to be the sole producer to the TPDC gas processing plant
during the commissioning process and is expected to reach production levels of up to 30mmcfd.
Jay Bhattacherjee, CEO commented:
'With over a decade of in-country experience and the opportunity to build long lasting relationships
with the TPDC and the Tanzanian government, we are grateful for the support we have received
in extending and transferring our work obligations. We are also pleased to have signed an 18-
month extension to our corporate loan with no other variation in terms. We continue to make
significant progress at Kiliwani North and to focus on our development of the Ruvuma basin.'

India: Modi’s $27 Billion Oil Quest Offers Lifeline to Services Firms
Bloombergg - Saket Sundria Dhwani Pandya Debjit Chakraborty
India is offering global oilfield service providers starved of new contracts a $27 billion lifeline as
the government’s ambition to cut fuel imports drives fresh investment.
Spending plans are ratcheting up and stalled projects restarting after the government in March
announced pricing freedom for natural gas from deep sea fields that begin production this year.
Coming at a time when the cost of rigs and services has halved, that’s prompted India’s largest
explorer Oil and Natural Gas Corp. to launch its biggest development
campaign yet. Reliance Industries Ltd. is preparing to restart work at
four offshore oil and gas blocks.
The flurry of activity is providing some respite to services companies
including Schlumberger Ltd., Technip SA and Halliburton Co. that
were stung last year by more than $100 billion in slashed spending by
explorers as oil collapsed. Investments in India are growing to meet
Prime Minister Narendra Modi’s target of cutting import dependence by 10 percent over six years
as increased consumption puts the nation on track to become the world’s third-largest oil
consumer.
“In India, there are two to three major identified projects and they are probably bigger than
anything else going on in rest of the world,” Technip India’s Managing Director Bhaskar Patel
said in an interview. “India is a place where there is work available.”
India’s hydrocarbon resources still remain highly undeveloped and the government’s new liberal
approach is nudging companies to invest in tapping them. The measures are expected to boost
gas output by 35 million standard cubic meters a day and unshackle projects worth 1.8 trillion

rupees ($27 billion), Oil Minister Dharmendra Pradhan had said when the policy changes were
announced.
About 90 percent of the new spending would go to companies that provide services from drilling
to testing and the laying of infrastructure.
Halliburton is positioned to participate in “the country’s ambitious plans to increase its domestic
production,” the company said in an e-mailed response to questions. “India plays a crucial role
for sustained development in the region for Halliburton.”
The Indian government’s initiatives will increase the pace of exploration, ONGC Chairman
Dinesh Kumar Sarraf said.
ONGC will contract deepwater drill ships and dozens of jack-up rigs for a $5-billion development
program in the Krishna-Godavari Basin, he said. The company intends to spend 11 trillion rupees
by 2030 to raise output.
Reliance has held meetings with oilfield-services companies to restart work at four offshore oil
and gas blocks, including one of India’s biggest natural gas discoveries, people with knowledge
of the plan said in May. It plans to drill 21 wells in four offshore areas, including the deepwater
KG-D6 block in the Bay of Bengal, the people said.
ONGC shares rose up 0.8 percent to 210.15 rupees in Mumbai on Monday, while Reliance
gained 0.4 percent to end at 955.65 rupees.
India’s exploration binge still won’t be enough to compensate for canceled projects around the
world as oil prices settle around $50-a-barrel of crude from more than $100 two years ago.
Worldwide, the oil and gas industry will cut $1 trillion from planned spending on exploration and
development because of the price slump, consultant Wood Mackenzie Ltd. said this month.

NewBase 28 June 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices rise on looming Norway strike, but Brexit still weighs
Reuters + NewBase
Oil prices rose in early trading in Asia on Tuesday as a looming strike in Norway threatened to cut
output in western Europe's biggest producer, although Britain's vote to leave the European Union
was still weighing on markets.
About 755 Norwegian workers on seven oil and gas fields could go on strike from Saturday, hitting
output from the North Sea's top producer, if a new wage deal is not agreed before a Friday
deadline.
A final round of mandatory talks will be hosted by a state mediator on June 30 and July 1 in an
effort to avoid disruption that could start the following day. The affected fields account for nearly
18 percent of Norway's oil output and a little more than 17 percent of its natural gas, Reuters
calculations show.
Combined oil output was about 285,000 barrels per day in the first four months of the year, with
natural gas output at 48.5 million cubic meters (mcm) per day. London Brent crude futures were
trading at $47.58 per barrel at 0032 GMT (8:32 p.m. ET), up 42 cents from their previous
settlement.
But the price rises came after oil fell to 7-week lows in the previous session on the back of a
soaring dollar, which makes fuel imports more expensive for countries using other currencies and
potentially hits demand, and as market turmoil over Britain's vote to leave the EU continued to
cause market turmoil.
Oil price special
coverage

"Crude oil led the sector lower as investors continued to dump risky assets. Oil was also weighed
down by news that a successful ceasefire in Nigeria has allowed repairs to oil pipelines that has
restricted the country's ability to export oil," ANZ Bank said.
Oil production in Nigeria has risen to about 1.9 million bpd from 1.6 million bpd due to repairs and
more than a week having passed since a major pipeline attack in the Niger Delta, a state oil
company spokesman said on Monday.
Crude could be in ‘purgatory’ come fall: Analyst
CNBC - Pei Annie PeiAssociate Producer
Oil has hovered around the $50 range since mid-May, and with summer travel almost in full swing
one analyst thinks that rising demand will keep crude fairly stable for the next few months.
Come fall, however, a different story may start to emerge.
Tom Kloza, Global Head of Energy Analysis at the Oil Price Information Service, believes that
high demand for gasoline means that crude will sit at a $50 "comfort point" for the next two
months or so. Still, Kloza thinks there could be a fairly sizable drop after September rolls around
"We saw the highest demand ever, we used something on the order of 59 million gallons a day of
gasoline," he said last week on CNBC's "Futures Now." "That will prove as something that will
help crude out for the next 8 or 10 weeks."
The problem will surface after that period he said, when buoyant oil will "go into purgatory in the
fall," he added.
"You have lower refinery runs, you have a lot of gasoline because there are a lot of cheap
hydrocarbons, and you have a drop of maybe 4 to 5 percent in demand even if the
macroeconomic background is very steady," he added.
A whole host of international events could also derail oil's current stability. Kloza describedthe
reaction to the Brexit results as "orderly and predictable" in an email Friday to CNBC. Yet he sees
other global troubles as being more directly threatening to oil than the U.K.'s exit out of the
European Union.
"In the fall, there's no question there's going to be a challenge in the marketplace, particularly if
you see production in some of the places like Nigeria and Kurdistan will ramp higher," said Kloza.
"I think we [also] have to worry about Gulf Coast hurricanes, which could knock out Gulf of Mexico
production crude-side and really wreak havoc on the refined products side," the analyst added.
Investors with their eye on oil shouldn't discount the timeline leading up to the U.S. election this
November, especially when trying to gauge demand in the fall.
"The question is really whether or not it's a driving season thing and what happens after Labor
Day," Kloza explained. "You've got an election where people aren't very happy with the choices,
and they may show that it may not be to vote with [their] feet, but to vote with [their] cars in traffic."
Oil dropped by more than 4 percent during Friday trading following the U.K.'s referendum results.
Risk assets opened sharply lower in early trading on Sunday as investors continued to grapple
with the fallout.

NewBase Special Coverage
News Agencies News Release 28 June 2016
Air Pollution Seen Costing Trillions to Save Millions, IEA Says
Bloomberg - Anna Hirtenstein ahirtens
Air pollution will continue rising in the next decades unless nations around the world invest trillions
in cleaner energy and emissions controls, the International Energy Agency said.
The Paris-based agency is calling for governments to adopt a strategy to cut pollutants by half, a
plan that would add about 7 percent to the total energy investment needed through 2040,
according to a report Monday. That includes $4.8 trillion for advanced pollution control and
accelerating the transformation of the energy industry.
“Clean air is a basic human right that most of the world’s population lacks,” said Executive Director
Fatih Birol. “We need to revise our approach to energy development so that communities are not
forced to sacrifice clean air in return for economic growth.”
The IEA’s strategy pushes for cleaner fuels, energy efficiency, better cooking facilities and
emissions controls. It also calls for a collective long-term air quality goal, policies for
implementation and regulations to monitor and enforce it. The agency said the efforts may cut
pollution-related deaths by more than 3 million a year.
Source: IEA

Poor air quality is affecting the entire planet, with 80 percent of cities that monitor levels failing to
meet standards set by the World Health Organization. Public pressure is mounting in countries
such as China, prompting ambitious renewable energy agendas. The developed West also has its
fair share of smog, with London surpassing the EU’s annual limits on air pollution just eight days
into 2016.
The energy industry is the single largest man-made contributor to poor air quality, the IEA report
said. Most of it comes from unregulated and inefficient fuels. The agency sees air pollution as the
fourth-largest threat to human health, after high blood pressure, poor diet and smoking.
What’s actually clogging up our air? These three pollutants have the biggest impact on health.
1. Particulate matter
Tiny particles that float in the air, and can be either liquid and solid. They’re linked to detrimental
health impacts, such as chronic lung diseases. The severity depends on the size of the particles.
The bigger they are, the more damage they can do to your respiratory system. About 85 percent
of PMs comes from the energy industry, according to the IEA.
2. Sulfur dioxide
A gas made from burning fossil fuels. Most of it comes from power plants and industrial processes
such as metals processing with almost all from the energy industry. It causes adverse health
effects and can also be dissolved into water, resulting in acid rain.
2. Nitrogen oxide
A greenhouse gas that contributes to climate change. Almost all of it comes from the
transportation sector and power plants that burn fossil fuels. It’s a toxic gas that causes lung
inflammation and other health problems when inhaled.

What are the main causes of air pollution?
1. Poverty
There are 2.7 billion people in the world who burn biomass for cooking. Smoke inhalation from
this, as well as burning kerosene for lighting, is estimated to cause 3.5 million premature deaths a
year, mostly women and children in developing Asia and Sub-Saharan Africa.
2. Fossil-fuel intensive industries
Power plants that burn fossil fuels and industrial facilities are major emitters. Burning coal is
responsible for 60 percent of combustion-related sulfur dioxide emissions.
3. Urbanization
Tightly-packed cities with roads full of traffic lead to dirty air. Two thirds of the $2.3 trillion
investment into pollution control technologies recommended by the IEA is to comply with elevated
vehicle emissions standards.

Proposed standards for medium- and heavy-duty vehicles
would reduce diesel consumption
Proposed fuel economy and greenhouse gas emissions standards would increase fuel economy
and reduce diesel consumption in medium- and heavy-duty vehicles. Unlike light-duty vehicles,
which have been subject tofuel economy standards since the 1970s, the first phase of medium-
and heavy-duty vehicle standards was recently implemented, starting with model year 2014.
The proposed Phase 2 standards—issued jointly by the U.S. Environmental Protection Agency
and the National Highway Traffic Safety Administration—would take effect in model year 2021 for
most medium- and heavy-duty vehicle classes and increase in stringency through model year
2027. These standards are projected to reduce diesel consumption by 0.5 million barrels of oil
equivalent per day (boe/d) by 2040.
As described in an Issues in Focus analysis as part of EIA's Annual Energy Outlook
2016 (AEO2016), the proposed Phase 2 standards address specific vehicle categories, including
combination tractors, heavy-duty pickup trucks and vans, vocational vehicles, and, for the first
time, trailers.
Vehicles are divided into different classes based on their gross vehicle weight rating (GVWR).
Light-duty cars and trucks (typical passenger vehicles) weighing 8,500 pounds or less make up
classes 1 and 2a (Class 2 is divided into 2a and 2b), and are not regulated by the proposed Phase
2 standards.
These light-duty vehicles make up most of the vehicles on the road and accounted for 59% of
2015 transportation energy consumption in the United States. The Phase 2 standards
affect classes 2b through 8, covering the medium- and heavy-duty vehicles that accounted for
about 20% of U.S. transportation energy consumption in 2015.
Heavy-duty pickups and vans, such as 3/4- and 1-ton pickup trucks used on construction sites,
include class 2b and 3 vehicles with a GVWR between 8,501 and 14,000 pounds. They would be
required to meet an annual 2.5% per year reduction in allowable emissions from model years
2021 to 2027.

Vocational vehicles include a wide range of truck styles, such as delivery, refuse, utility, dump,
and cement trucks, as well as school buses, ambulances, and tow trucks. This category includes
class 2b through 8 vehicles with a GVWR of 8,501 pounds and above. A 16% reduction in carbon
dioxide (CO2) emissions for diesel-powered vehicles would be required, with lower reductions in
emissions for gasoline-powered vehicles and exceptions for certain vehicle types.
Combination tractors—semitrucks that typically pull trailers—are class 7 and 8 vehicles with a
GVWR of 26,001 pounds and above. They would be required to reduce CO2 emissions by up to
24% compared to the model year 2017 baseline. Trailers were not regulated in Phase 1, but they
would need to improve aerodynamics and rolling resistance with different stringency depending on
the type.
By 2040 the average fuel economy of new medium- and heavy-duty vehicles across all regulated
classes would reach 10.6 miles per gallon gasoline equivalent, representing a 33% improvement
compared to the Reference case.
Because vehicles can last for decades, the turnover of the vehicle fleet is relatively slow, although
newer vehicles are often driven more intensively than older ones. Consequently, the average fuel
economy of the entire fleet increases more gradually. In the Reference case, total fleet medium-
and heavy-duty vehicle fuel economy only increases slightly as vehicles manufactured under
Phase 1 standards become fully adopted.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2016
Small changes in fuel economy measured in terms of miles per gallon (mpg) at the lower end of
the range can have outsized effects. For instance, switching from an 8-mpg vehicle to a 10-mpg
vehicle provides a fuel consumption savings of 0.025 gallons per mile of travel—the difference
between 0.125 gallons used to travel a mile in the 8-mpg vehicle and 0.1 gallons used by the 10-
mpg vehicle to travel the same distance.

In contrast, starting with a 20-mpg vehicle, fuel economy must increase to 40 mpg to produce the
same savings per mile—the difference between 0.05 gallons per mile used by the 20-mpg vehicle
and 0.025 gallons per mile used by the 40-mpg vehicle. This illustrates how seemingly small
changes in fuel economy for large trucks can save a significant amount of fuel. For medium- and
heavy-duty vehicles, the amount of vehicle travel is not expected to change significantly compared
with the Reference case, so changes in fuel economy tend to be directly reflected in fuel
consumption.
Unlike light-duty fuel economy standards, which mainly affect gasoline consumption, standards for
medium- and heavy-duty vehicles will primarily affect diesel fuel consumption. As such, diesel
consumption by medium- and heavy-duty vehicles in the Phase 2 Standards case is 18% lower
(0.5 million boe/d) in 2040 compared to the Reference case. Gasoline and alternative fuel
consumption is also reduced, but to a lesser extent, because fuels other than diesel account for
only about 10% of consumption from medium- and heavy-duty vehicles.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2016
Note: LNG is liquefied natural gas. CNG is compressed natural gas.

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MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering & regulating stations
and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation, operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 28 June 2016 K. Al Awadi

New base energy news issue 882 dated 28 june 2016

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New base energy news issue 882 dated 28 june 2016