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NewBase Energy News 21 April 2022 No. 1506 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Arabia's Red Sea tourism project counts on biofuel in
sustainability push
The National - Alvin R Cabral
Saudi Arabia’s Red Sea Development Company, which is building a mega tourism destination in
the kingdom, will use biofuel generators to operate its facilities, reinforcing its sustainability drive.
Germany's MAN Energy Solutions will provide 25 sets of generators with a total production capacity
of 112 megawatts for the Red Sea Project, the developer said in a statement to the Saudi Press
Agency.
Developer of mega coastal resort will use generators from Germany's MAN Energy Solutions
The Red Sea Project is on track to welcome its first guests by the end of 2022 when its first hotels
will open. Photo: Red Sea Development . Red Sea Development plans to continue investing in clean
energy resources, which, in turn, will help it set new global standards in the renewable tourism field,
chief executive John Pagano said.
“Even if solar energy is not available, the energy source will continue to be completely climate-
neutral thanks to our engines," he said. The Red Sea Project is among key developments being
built in Saudi Arabia as the kingdom continues its diversification drive under its Vision 2030 agenda,
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steering away from its reliance on oil, tapping other high-growth industries to boost its economy,
create more job opportunities and attract private investment to boost economic development.
It extends more than 200 kilometres on the shores of the Red Sea, encompassing an archipelago
of more than 90 islands with an area of 28,000 square kilometres.
Saudi Arabia, the Arab world's biggest economy, last month unveiled a new strategy under
its National Development Fund, where it aims to support the sustainable development
goals of all economic sectors by transforming it into an integrated national financial institution.
The sustainable infrastructure of the Red Sea Project banks on renewable energy supplies without
relying on the national electric grid. It will be operated on solar energy stations that include storage
batteries with the system of MAN GenSets, which use climate-neutral biofuel, in six locations.
The infrastructure was developed by a consortium led by utility Acwa Power in Riyadh.
Red Sea Development, an entity wholly owned by Saudi Arabia's Public Investment Fund, was
established to drive the development of the Red Sea Project, a luxury tourism destination that aims
to set new standards in sustainable development and enhance the kingdom's position on the global
tourism map.
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The development has progressed rapidly in 2021, with the project's international
airport on track to open by the end of this year, the company's website says.
Enabling infrastructure — including roads, jetties and bridges — are also well under
way.
Essential infrastructure is already under way, with about 80km of new roads
complete, including the new airport road.
The project's first phase has already passed a number of milestones and work is on
track to welcome the first guests by the end of this year, when the first hotels will also
open, the company said. All 16 hotels planned for this phase will be opening by the
end of 2023.
Upon completion in 2030, the Red Sea Project will comprise about 50 resorts, up to
8,000 hotel rooms and more than 1,000 residential properties across 22 islands
resorts, mountain retreats and desert hideaways. The destination will include
marinas, golf courses, entertainment and leisure facilities as well as luxury residential
properties and commercial, retail and recreational facilities.
In January, Red Sea Development announced it had achieved financial close on its
14.12 billion Saudi riyal ($3.76bn) term loan facility and a revolving credit facility with
a number of banks in the kingdom.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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U.A.E: Enec, World Utilities Congress sign strategic agreement
TradeArabia News Service
The Emirates Nuclear Energy Corporation (Enec) and the World Utilities Congress have signed a
strategic agreement, in which Enec will play a central role in supporting the Nuclear Energy
Leadership Forum.
Taking place on May 9 and 10, the
Forum will focus on the role of
nuclear energy in tackling the
parallel challenges of energy
security and sustainability, the
deployment of safe and reliable
nuclear energy for clean electricity
generation, technological
advancements in nuclear energy,
the latest updates in research and
development of nuclear science
and more.
The Forum will highlight how
nuclear energy is a powerhouse
for the sustainable development of
the UAE and around the world,
providing 24/7 baseload clean electricity today, and offering a bridge to new clean technologies
such as SMR development, synthetic fuels and clean hydrogen.
Cristopher Hudson, President of dmg events, organisers of the World Utilities Congress, said: "We
are delighted to collaborate with the Emirates Nuclear Energy Corporation, the organisation that is
leading the development of the Barakah Nuclear Energy Plant, a major engine of growth for the
UAE’s sustainable development. This partnership embodies the UAE’s commitment to driving
decarbonization and sustainable growth through nuclear energy.”
The Forum will commence with a keynote address from H.E. Mohamed Al Hammadi, Managing
Director and CEO of Enec. The Forum will include panel discussions about delivering net zero with
clean baseload technologies, formulating and implementing robust licensing and regulatory
frameworks, and the successful delivery of the nuclear megaproject, the Barakah Nuclear Energy
Plant.
On May 10, the Forum will kick off with a keynote address from Nasser Al Nasseri, Chief Executive
Officer of Barakah One Company, Enec’s subsidiary managing the commercial interests of the
Barakah Plant.
The panel discussions will tackle topics including securing Environmental, Social, and Governance
(ESG) investments for a net zero economy, the latest innovations and advances within the nuclear
sector and an overview of the industry’s future, with nuclear being a vital resource to bolster energy
security. The Forum will also discuss the importance of attracting talent for the clean energy
transition, and new avenues in nuclear supply chain management.
The World Utilities Congress provides an unrivalled platform to explore the latest products,
innovations and technological advancements across the global utilities landscape. It will bring
together water and power leaders to provide insights on building resilient low carbon business
models with agile automated digital operations. –
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Egypt: SDX spudding of SD-12 East appraisal well at South Disouq
Source: SDX Energy
AIM-listed SDX Energy, the MENA-focused energy company, has announced the spudding of
the SD-12 East appraisal well (SDX WI 75%), targeting additional reserves to the east of the SD-
12X discovery well on the Sobhi field located in the Ibn Yunus North development lease. SD-12
East spudded on 16 April 2022 and is expected to reach TD in approx. three weeks.
The primary target, which has already been encountered in the Ibn Yunus and Sobhi reservoirs, is
the basal Kafr El Sheikh sand at around 6,480 ft TVDSS. The well is targeting an estimated gross
unrisked P50 EUR of 7 Bcf and has a 80% chance of success.
In a success case, SD-12 East will be tied-in to the CPF via the existing SD-12X flow-line and is
expected to be on production by mid-July 2022.
SD-12 East is the second of three wells to be drilled in the South Disouq area during 2022. The third
well in the campaign will be the MA-1X well (Mohsen) targeting an estimated gross unrisked P50
EUR of 21 Bcf. The Mohsen well is planned to spud mid-to-late May.
Mark Reid, CEO of SDX, commented:
'I am pleased to announce the spudding of SD-12 East, the second well in the South Disouq drilling
campaign. This campaign is further exploring the potential in the South Disouq area and, with the
recent success of the SD-5X discovery well, it has already enabled us to plan for an increase in our
production guidance in the coming months. So far in 2022, SDX has had three discoveries from
three wells drilled and I look forward to updating the market further as our very busy drilling
campaign progresses throughout the year.'
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U.S: LNG exports to lead growth in U.S. natural gas exports
Source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)
Since the United States began exporting more natural gas than it imports on an annual basis in
2017, natural gas exports both by pipeline and as liquefied natural gas (LNG) have grown
significantly.
In our Short-Term Energy Outlook (STEO), we forecast that LNG exports will continue to lead the
growth in U.S. natural gas exports and average 12.2 billion cubic feet per day (Bcf/d) in 2022. If
realized, the United States would surpass Australia and Qatar and become the world’s top LNG
exporter this year.
We expect annual U.S. LNG exports to increase by 2.4 Bcf/d in 2022 and 0.5 Bcf/d in 2023. We
forecast that natural gas exports by pipeline to Mexico and Canada will increase slightly, by 0.3
Bcf/d in 2022 and by 0.4 Bcf/d in 2023, primarily as a result of more exports to Mexico. The United
States currently ranks second in the world in natural gas exports, behind Russia.
U.S. LNG exports exceeded pipeline exports of natural gas for the first time on an annual basis in
2021. Monthly LNG exports continued to set new records in 2021 and averaged 11.3 Bcf/d this
winter, 2.2 Bcf/d more than last winter.
In March 2022, U.S. LNG exports reached a new high of 11.9 Bcf/d. U.S. LNG export capacity
increased in 2021 with the addition of Sabine Pass Train 6 and capacity expansions at Sabine
Pass and Corpus Christi LNG export terminals.
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By the end of 2022, once the new Calcasieu Pass LNG export facility is placed in service, the United
States will have more LNG export capacity than any other country in the world. We expect that
relatively high LNG demand in Asia and Europe will support continued U.S. LNG exports.
U.S. exports by pipeline also increased in 2021 as Mexico continued to expand its domestic pipeline
network. The increase in flows via Sur de Texas-Tuxpan Pipeline and the Trans-Pecos
Pipeline (part of the Wahalajara system) allowed more natural gas to flow to the Mérida markets in
the Yucatán Peninsula and to power plants in the Mexico City and Guadalahara regions in central
and west-central Mexico.
We expect U.S. natural gas imports to decrease by 0.5 Bcf/d in 2022 and by 0.2 Bcf/d in 2023
because natural gas production from the Appalachia region will likely continue to displace imports
from Canada in the midwestern states. We expect LNG imports, primarily into New England in
the winter months, to remain essentially unchanged in the next two years.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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NewBase April 22-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil extends losses on growth concerns and Shanghai lockdown
Reuters + NewBase
Summary – Key Points
 Shanghai lockdown raises concern over Chinese demand
 Fed Chair says half-point rate increase on table at next meeting
 Libya losing 550,000 bpd in oil output
Oil slipped on Friday, burdened by the prospect of weaker global growth, higher interest rates and
COVIDlockdowns in China hurting demand even as the European Union considers a ban on
Russian oil that would further tighten supply.
Oil price special
coverage
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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The International Monetary Fund this week cut its global economic growth forecast while the U.S.
Federal Reserve Chair on Thursday said that a half-point increase to interest rates "will be on the
table" at the next Fed policy meeting in May. read more
Brent crude was down $1.69, or 1.6%, at $106.64 a barrel by 1311 GMT. U.S. West Texas
Intermediate (WTI) crude declined $1.77, or 1.7%, to $102.02.
"At this stage, fears over China's growth and overtightening by the Fed, capping U.S. growth, seem
to be balancing out concerns that Europe will soon widen sanctions on Russian energy imports,"
said Jeffrey Halley, analyst at brokerage OANDA.
The outlook for demand in China, the world's biggest oil importer, continues to weigh. Shanghai
announced a new round of measures including daily coronavirus testing from Friday, adding to strict
measures to curb the latest outbreaks. read more
Brent hit $139 a barrel last month, its highest since 2008, but both oil benchmarks were heading for
weekly declines of more than 4%.
Ongoing support is provided by supply tightness after disruptions in Libya, which is losing 550,000
barrels per day (bpd) of output, and supply could be squeezed further if the European Union
imposes an embargo on Russian oil. read more
An EU source told Reuters this week the European Commission is working to speed up availability
of alternative energy supplies to try to cut the cost of banning Russian oil and persuade reluctant
nations to accept the measure. read more
"An EU boycott of Russian energy would inevitably lead to higher energy prices, at least in the
immediate term," said Stephen Brennock of oil broker PVM. "It looks to be a case of if, not when."
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 10
U.S. Oil Exports Soar as World Works to Replace Russian Supplies
Bloomberg
he U.S. exported the most oil and petroleum products in history last week as countries across the
world work to replace Russian supplies in the wake of the war in Ukraine.
Exports of U.S. crude and petroleum products surged to a weekly record of 10.6 million barrels a
day during the week ending April 15, according to data from the U.S. Energy Information
Administration. The country’s exports also outweighed its imports by the most ever in government
data going back to 1990.
The U.S. is becoming the energy supplier of last resort after Russia’s invasion of Ukraine drove
buyers to turn to it for everything from crude to motor fuel and liquefied natural gas. Western
companies pulled investments from Russia and cut ties with its energy and trading firms and multiple
governments including the U.S., U.K., and Canada imposed sanctions on oil imports.
“Strong exports have been driven by a pull to Europe and we should expect strength in the weeks
ahead,” Matt Smith, oil analyst at market intelligence firm Kpler.
Appetite for U.S. diesel has remained elevated from countries in Latin America as well as Europe.
The jump in exports across the board is also helping to drain inventories in the U.S. and elevating
prices. U.S. crude stocks last week plunged by more than 8 million barrels, the most since January
of 2021.
Weekly U.S. government data tends to fluctuate, some traders said but noted demand for U.S. oil
remains robust, pointing to strong exports heading into the summer. Relatively weak prices for U.S.
crude could also entice more buyers, they said.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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NewBase Special Coverage
The Energy world –April -01 -2022
CLEAN ENERGY
EU wants staff to work from home in grand plan to slash use of
Russian oil and gas
By SOPHIE HUSKISSON FOR THE DAILY MAIL
Key Points:
 EU chiefs are asking employees to work from home at least three days a week
 The International Energy Agency hopes it will reduce use of Russian oil and gas
 The EU cannot find alternative supplies and wants citizens to adjust lifestyles
EU chiefs are asking workers to buck the trend of returning to the office after the pandemic – to help
defeat Vladimir Putin.
They want employees to work from home at least three days a week to reduce the consumption of
imported Russian oil and gas. The money Moscow makes from its exports is helping to fund Putin’s
war in Ukraine.
The EU cannot find alternative supplies at the moment, so it wants citizens to adjust their lifestyles.
The nine-point plan called Playing My Part, drawn up with the International Energy Agency, asks
workers to avoid commuting and drive more slowly to use less fuel.
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The EU imports 90 per cent of the natural gas used to generate electricity, heat homes and supply
industry, with Russia supplying almost 40 per cent of EU gas and a quarter of its oil
It encourages them to heat homes less in winter and turn air conditioning down in summer. It is
estimated the range of measures would save a typical household £375 a year.
The IEA calculates that if every citizen followed the plan, it could save 220million barrels of oil and
17billion cubic metres of gas a year. Fatih Birol, of the IEA, said the aim was to ‘reduce the flow of
money to Russia’s military and help put us on a path to a cleaner and more sustainable planet’.
The nine-point plan called Playing My Part, drawn up with the International Energy Agency, asks
workers to avoid commuting and drive more slowly to use less fuel. Pictured, the Russian-flagged
oil tanker Pegas in January
In March, the EU announced a plan to become independent from Russian energy imports by 2030.
This week the German energy minister Christian Lindner said it would be impossible to stop oil
imports immediately.
Germany is facing speed limits on its famously unregulated autobahns - federal motorways - to save
fuel and cut Russian imports.
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Germany’s Green Party, which is in a three-party governing coalition, is pushing for a ‘temporary’
80mph limit. Austria has cut all fares on public transport to three euros per day and is introducing
a programme to help low-income households replace old inefficient appliances.
How to implement an EU embargo on Russian oil
Anette Hosoi, Simon Johnson 20 April 2022
The Russian war on Ukraine is financed in large part by the export of oil, and while countries have
intensified various sanctions on Putin’s leadership group and the Russian economy, Russian oil
export revenues since the invasion on 24 February have risen.
A new CEPR Policy Insight argues that if the objective is to reduce Western financing of the Russian
military effort, the only logical next step is for the US, the EU, the UK, and others to prohibit all
Russian oil and oil product exports, and to make it illegal to carry such cargo in European-owned
tankers.
Rüdiger Bachmann, David Baqaee, Christian Bayer, Moritz Kuhn, Andreas Löschel, Benjamin Moll,
Andreas Peichl, Karen Pittel, Moritz Schularick
The Russian war on Ukraine is financed in large part by the export of oil. The US, the EU, the UK,
and other countries have intensified various sanctions on Putin’s leadership group and their
economy (Berner et al. 2022), but Russian export revenues since the invasion on 24 February have
risen: the volume of oil exported has not fallen, and the world price of oil is up.
Most notably, the EU buys 2.2 million barrels of oil and 1.2 million barrels of petroleum product from
Russia every day (IEA 2022). According to press reports, much of Russia’s hard currency revenue
is now being spent on re-equipping the Russian military and preparing for the next offensive.
There is also an unseemly and morally appalling scramble by some European and Asian countries
to increase their purchases of Russian oil. According to publicly available data, as shown in Figure
1, some nations that claim to be fully in support of Ukrainians appear to have significantly increased
their purchases of Russian oil since the invasion.
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Countries importing Russian oil
In a new CEPR Policy Insight (Hosoi and Johnson 2022), we argue that if our objective is to reduce
Western financing of the Russian military effort, the only logical next step is for the US, the EU, the
UK, and others to prohibit all Russian oil and oil product exports, and to make it illegal to carry such
cargo in European-owned tankers.
This blanket provision would trigger force majeure clauses in most contracts for vessel owners, oil
traders, insurance companies, and other providers of financial services – allowing them to break
existing contracts without penalty.
The key point is to avoid a situation in which the EU imposes an embargo on the import of Russian
oil, resulting only in more of that oil flowing to Asian markets. Given the large market share of EU-
owned tanker fleets, a prohibition on those vessels carrying Russian oil and oil products is essential
for sanctions to be meaningful.
An EU embargo and associated system of sanctions could be combined with a tightly controlled
and centralised system of waivers. These waivers would allow limited purchases of Russian oil by
designated countries and in specified tankers. The prices charged should be monitored and
preferably set below the world price for oil.
In addition, all payments for Russian oil under the waiver programme would go into supervised
escrow accounts. The funds in these accounts should be available to Russia only once there is a
ceasefire and, even in that case, should be used to buy food and medicine only – no weapons or
industrial components that can be used to make weapons or military equipment of any kind.
As an additional safeguard, all approved imports into Russia would also need to be supervised
carefully to ensure that only humanitarian supplies are getting through. In addition to all standard
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border controls, Ukrainian-appointed inspectors should participate in checking every shipment of
freight to Belarus or Russia.
This would require hiring many inspectors, but there are currently more than two million adult
Ukrainian refugees in European countries – so there is no shortage of people who need a job and
who are willing to work. Their salaries should be paid from the Russian oil escrow accounts.
Any country that receives a permit to buy Russian oil should also publicly commit to reduce its
consumption of fossil fuels over time. To facilitate these energy transitions, all forms of appropriate
technology should be shared widely. As we discuss in the appendix to our Policy Insight, the
development of offshore windfarms is among the most appealing ways to reduce oil consumption
in the medium run.
Taking these factors and market conditions into consideration suggests the following general
approach:
1. All Russian oil and oil products should be sanctioned by the US, the EU, the UK, and any other
countries that are willing to stop Putin’s war on Ukraine. (Similar sanctions should be applied to
Belarus.)
2. The carrying of Russian-origin oil and oil products in any US, European, British, and other vessel
should also be prohibited.
3. The provision of financial services in any form to any entity involved in the Russian oil and gas
value chain should also be prohibited.
4. The combination of 1, 2, and 3 would trigger force majeure in all commercial contracts for the
buying, transportation, and financing of Russian oil cargo.
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5. The EU should declare a complete embargo on all Russian oil and seek alternative suppliers of
crude oil and refined products. The available spare capacity in Saudi Arabia and the United Arab
Emirates is roughly equal to the amount of crude oil that the EU currently buys from Russia daily.
6. A system of waivers should be put in place to allow the controlled export of some Russian crude
and refined products subject to centrally issued permits.
7. Administering this permit system will be costly, and appropriate fees should be charged. An initial
user fee of $50 per barrel, paid for by Russia, seems plausible.
8. International permits would allow energy exports subject to the following conditions:
 All proceeds from these transactions go into escrow accounts.
 These accounts are frozen until Russian forces withdraw from Ukraine.
 Once unfrozen, these accounts can be used to buy food, medicine, and other humanitarian
supplies only.
d. The supplies purchased under license are shipped to Russia only through a few tightly
controlled land crossings (vehicle and train), for example on the Poland-Belarus border and
on the Finland-Russia border. In addition to local and EU border officials, there should also
be Ukrainian inspectors present for every inspection of all cargo. All shipments need to be
inspected, without exceptions.
9. Ukrainian refugees should be hired and trained as cargo inspectors. Their salaries should be paid
out of the escrow accounts. In addition to assisting with the immediate task of ensuring no weapons
or parts for weapons are smuggled into Russia, training these workers will help rebuild the Ukrainian
customs service in line with EU best practices.
10. The central authority to provide licenses and authorise inspections could be administered by the
International Energy Agency (IEA) acting under the authority of the governments involved.
11. To the extent that additional specialists are needed to staff any dimension of this effort, including
monitoring tankers, determining whether sanctions are being violated, and assessing potentially
questionable financial transaction, highly qualified Ukrainians are available. Given that the Russian
invasion is estimated to have caused a nearly 50% decline in Ukraine’s GDP (Tsyrennikov 2022),
employing these talented people in this fashion seems entirely appropriate. Again, their salaries can
be paid from the escrow accounts.
12. In effect, the proposed structure would create an ‘Inverse OPEC’, comprised of countries that
are willing to limit the ability of Russia to buy destructive weapons. This arrangement is obviously a
violation of competitive market principles, but so is OPEC.
13. All participating countries should agree to taper their purchases of Russian fossil fuels as quickly
as possible. Measures to reduce consumption of oil should be put in place everywhere, with sharing
of all relevant technology. Industrial country governments should ensure that poorer countries have
expedited access to any technology that would be helpful.
14. At the same time, all countries should work towards long-term solutions to reduce their
dependence on oil (see the appendix in our Policy Insight). These efforts gain great urgency
considering the national security implications that the Russian invasion of Ukraine highlights.
The current crisis emphasises that it is in the long-term interests of Europe to remove the
vulnerability associated with energy production that EU countries cannot control. Although the EU,
the US, and other countries have made great strides towards energy independence, Russia’s
invasion of Ukraine illustrates that we need more flexibility to absorb large shocks to the system.
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NewBase Energy News 22 April 2022 - Issue No. 1507 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20

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NewBase April 22-2022 Energy News issue - 1507 by Khaled Al Awadi.pdf

  • 1. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 21 April 2022 No. 1506 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi Arabia's Red Sea tourism project counts on biofuel in sustainability push The National - Alvin R Cabral Saudi Arabia’s Red Sea Development Company, which is building a mega tourism destination in the kingdom, will use biofuel generators to operate its facilities, reinforcing its sustainability drive. Germany's MAN Energy Solutions will provide 25 sets of generators with a total production capacity of 112 megawatts for the Red Sea Project, the developer said in a statement to the Saudi Press Agency. Developer of mega coastal resort will use generators from Germany's MAN Energy Solutions The Red Sea Project is on track to welcome its first guests by the end of 2022 when its first hotels will open. Photo: Red Sea Development . Red Sea Development plans to continue investing in clean energy resources, which, in turn, will help it set new global standards in the renewable tourism field, chief executive John Pagano said. “Even if solar energy is not available, the energy source will continue to be completely climate- neutral thanks to our engines," he said. The Red Sea Project is among key developments being built in Saudi Arabia as the kingdom continues its diversification drive under its Vision 2030 agenda,
  • 2. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 steering away from its reliance on oil, tapping other high-growth industries to boost its economy, create more job opportunities and attract private investment to boost economic development. It extends more than 200 kilometres on the shores of the Red Sea, encompassing an archipelago of more than 90 islands with an area of 28,000 square kilometres. Saudi Arabia, the Arab world's biggest economy, last month unveiled a new strategy under its National Development Fund, where it aims to support the sustainable development goals of all economic sectors by transforming it into an integrated national financial institution. The sustainable infrastructure of the Red Sea Project banks on renewable energy supplies without relying on the national electric grid. It will be operated on solar energy stations that include storage batteries with the system of MAN GenSets, which use climate-neutral biofuel, in six locations. The infrastructure was developed by a consortium led by utility Acwa Power in Riyadh. Red Sea Development, an entity wholly owned by Saudi Arabia's Public Investment Fund, was established to drive the development of the Red Sea Project, a luxury tourism destination that aims to set new standards in sustainable development and enhance the kingdom's position on the global tourism map.
  • 3. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 The development has progressed rapidly in 2021, with the project's international airport on track to open by the end of this year, the company's website says. Enabling infrastructure — including roads, jetties and bridges — are also well under way. Essential infrastructure is already under way, with about 80km of new roads complete, including the new airport road. The project's first phase has already passed a number of milestones and work is on track to welcome the first guests by the end of this year, when the first hotels will also open, the company said. All 16 hotels planned for this phase will be opening by the end of 2023. Upon completion in 2030, the Red Sea Project will comprise about 50 resorts, up to 8,000 hotel rooms and more than 1,000 residential properties across 22 islands resorts, mountain retreats and desert hideaways. The destination will include marinas, golf courses, entertainment and leisure facilities as well as luxury residential properties and commercial, retail and recreational facilities. In January, Red Sea Development announced it had achieved financial close on its 14.12 billion Saudi riyal ($3.76bn) term loan facility and a revolving credit facility with a number of banks in the kingdom.
  • 4. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 U.A.E: Enec, World Utilities Congress sign strategic agreement TradeArabia News Service The Emirates Nuclear Energy Corporation (Enec) and the World Utilities Congress have signed a strategic agreement, in which Enec will play a central role in supporting the Nuclear Energy Leadership Forum. Taking place on May 9 and 10, the Forum will focus on the role of nuclear energy in tackling the parallel challenges of energy security and sustainability, the deployment of safe and reliable nuclear energy for clean electricity generation, technological advancements in nuclear energy, the latest updates in research and development of nuclear science and more. The Forum will highlight how nuclear energy is a powerhouse for the sustainable development of the UAE and around the world, providing 24/7 baseload clean electricity today, and offering a bridge to new clean technologies such as SMR development, synthetic fuels and clean hydrogen. Cristopher Hudson, President of dmg events, organisers of the World Utilities Congress, said: "We are delighted to collaborate with the Emirates Nuclear Energy Corporation, the organisation that is leading the development of the Barakah Nuclear Energy Plant, a major engine of growth for the UAE’s sustainable development. This partnership embodies the UAE’s commitment to driving decarbonization and sustainable growth through nuclear energy.” The Forum will commence with a keynote address from H.E. Mohamed Al Hammadi, Managing Director and CEO of Enec. The Forum will include panel discussions about delivering net zero with clean baseload technologies, formulating and implementing robust licensing and regulatory frameworks, and the successful delivery of the nuclear megaproject, the Barakah Nuclear Energy Plant. On May 10, the Forum will kick off with a keynote address from Nasser Al Nasseri, Chief Executive Officer of Barakah One Company, Enec’s subsidiary managing the commercial interests of the Barakah Plant. The panel discussions will tackle topics including securing Environmental, Social, and Governance (ESG) investments for a net zero economy, the latest innovations and advances within the nuclear sector and an overview of the industry’s future, with nuclear being a vital resource to bolster energy security. The Forum will also discuss the importance of attracting talent for the clean energy transition, and new avenues in nuclear supply chain management. The World Utilities Congress provides an unrivalled platform to explore the latest products, innovations and technological advancements across the global utilities landscape. It will bring together water and power leaders to provide insights on building resilient low carbon business models with agile automated digital operations. –
  • 5. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 Egypt: SDX spudding of SD-12 East appraisal well at South Disouq Source: SDX Energy AIM-listed SDX Energy, the MENA-focused energy company, has announced the spudding of the SD-12 East appraisal well (SDX WI 75%), targeting additional reserves to the east of the SD- 12X discovery well on the Sobhi field located in the Ibn Yunus North development lease. SD-12 East spudded on 16 April 2022 and is expected to reach TD in approx. three weeks. The primary target, which has already been encountered in the Ibn Yunus and Sobhi reservoirs, is the basal Kafr El Sheikh sand at around 6,480 ft TVDSS. The well is targeting an estimated gross unrisked P50 EUR of 7 Bcf and has a 80% chance of success. In a success case, SD-12 East will be tied-in to the CPF via the existing SD-12X flow-line and is expected to be on production by mid-July 2022. SD-12 East is the second of three wells to be drilled in the South Disouq area during 2022. The third well in the campaign will be the MA-1X well (Mohsen) targeting an estimated gross unrisked P50 EUR of 21 Bcf. The Mohsen well is planned to spud mid-to-late May. Mark Reid, CEO of SDX, commented: 'I am pleased to announce the spudding of SD-12 East, the second well in the South Disouq drilling campaign. This campaign is further exploring the potential in the South Disouq area and, with the recent success of the SD-5X discovery well, it has already enabled us to plan for an increase in our production guidance in the coming months. So far in 2022, SDX has had three discoveries from three wells drilled and I look forward to updating the market further as our very busy drilling campaign progresses throughout the year.'
  • 6. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 U.S: LNG exports to lead growth in U.S. natural gas exports Source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO) Since the United States began exporting more natural gas than it imports on an annual basis in 2017, natural gas exports both by pipeline and as liquefied natural gas (LNG) have grown significantly. In our Short-Term Energy Outlook (STEO), we forecast that LNG exports will continue to lead the growth in U.S. natural gas exports and average 12.2 billion cubic feet per day (Bcf/d) in 2022. If realized, the United States would surpass Australia and Qatar and become the world’s top LNG exporter this year. We expect annual U.S. LNG exports to increase by 2.4 Bcf/d in 2022 and 0.5 Bcf/d in 2023. We forecast that natural gas exports by pipeline to Mexico and Canada will increase slightly, by 0.3 Bcf/d in 2022 and by 0.4 Bcf/d in 2023, primarily as a result of more exports to Mexico. The United States currently ranks second in the world in natural gas exports, behind Russia. U.S. LNG exports exceeded pipeline exports of natural gas for the first time on an annual basis in 2021. Monthly LNG exports continued to set new records in 2021 and averaged 11.3 Bcf/d this winter, 2.2 Bcf/d more than last winter. In March 2022, U.S. LNG exports reached a new high of 11.9 Bcf/d. U.S. LNG export capacity increased in 2021 with the addition of Sabine Pass Train 6 and capacity expansions at Sabine Pass and Corpus Christi LNG export terminals.
  • 7. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 By the end of 2022, once the new Calcasieu Pass LNG export facility is placed in service, the United States will have more LNG export capacity than any other country in the world. We expect that relatively high LNG demand in Asia and Europe will support continued U.S. LNG exports. U.S. exports by pipeline also increased in 2021 as Mexico continued to expand its domestic pipeline network. The increase in flows via Sur de Texas-Tuxpan Pipeline and the Trans-Pecos Pipeline (part of the Wahalajara system) allowed more natural gas to flow to the Mérida markets in the Yucatán Peninsula and to power plants in the Mexico City and Guadalahara regions in central and west-central Mexico. We expect U.S. natural gas imports to decrease by 0.5 Bcf/d in 2022 and by 0.2 Bcf/d in 2023 because natural gas production from the Appalachia region will likely continue to displace imports from Canada in the midwestern states. We expect LNG imports, primarily into New England in the winter months, to remain essentially unchanged in the next two years.
  • 8. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 NewBase April 22-2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil extends losses on growth concerns and Shanghai lockdown Reuters + NewBase Summary – Key Points  Shanghai lockdown raises concern over Chinese demand  Fed Chair says half-point rate increase on table at next meeting  Libya losing 550,000 bpd in oil output Oil slipped on Friday, burdened by the prospect of weaker global growth, higher interest rates and COVIDlockdowns in China hurting demand even as the European Union considers a ban on Russian oil that would further tighten supply. Oil price special coverage
  • 9. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 The International Monetary Fund this week cut its global economic growth forecast while the U.S. Federal Reserve Chair on Thursday said that a half-point increase to interest rates "will be on the table" at the next Fed policy meeting in May. read more Brent crude was down $1.69, or 1.6%, at $106.64 a barrel by 1311 GMT. U.S. West Texas Intermediate (WTI) crude declined $1.77, or 1.7%, to $102.02. "At this stage, fears over China's growth and overtightening by the Fed, capping U.S. growth, seem to be balancing out concerns that Europe will soon widen sanctions on Russian energy imports," said Jeffrey Halley, analyst at brokerage OANDA. The outlook for demand in China, the world's biggest oil importer, continues to weigh. Shanghai announced a new round of measures including daily coronavirus testing from Friday, adding to strict measures to curb the latest outbreaks. read more Brent hit $139 a barrel last month, its highest since 2008, but both oil benchmarks were heading for weekly declines of more than 4%. Ongoing support is provided by supply tightness after disruptions in Libya, which is losing 550,000 barrels per day (bpd) of output, and supply could be squeezed further if the European Union imposes an embargo on Russian oil. read more An EU source told Reuters this week the European Commission is working to speed up availability of alternative energy supplies to try to cut the cost of banning Russian oil and persuade reluctant nations to accept the measure. read more "An EU boycott of Russian energy would inevitably lead to higher energy prices, at least in the immediate term," said Stephen Brennock of oil broker PVM. "It looks to be a case of if, not when."
  • 10. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 U.S. Oil Exports Soar as World Works to Replace Russian Supplies Bloomberg he U.S. exported the most oil and petroleum products in history last week as countries across the world work to replace Russian supplies in the wake of the war in Ukraine. Exports of U.S. crude and petroleum products surged to a weekly record of 10.6 million barrels a day during the week ending April 15, according to data from the U.S. Energy Information Administration. The country’s exports also outweighed its imports by the most ever in government data going back to 1990. The U.S. is becoming the energy supplier of last resort after Russia’s invasion of Ukraine drove buyers to turn to it for everything from crude to motor fuel and liquefied natural gas. Western companies pulled investments from Russia and cut ties with its energy and trading firms and multiple governments including the U.S., U.K., and Canada imposed sanctions on oil imports. “Strong exports have been driven by a pull to Europe and we should expect strength in the weeks ahead,” Matt Smith, oil analyst at market intelligence firm Kpler. Appetite for U.S. diesel has remained elevated from countries in Latin America as well as Europe. The jump in exports across the board is also helping to drain inventories in the U.S. and elevating prices. U.S. crude stocks last week plunged by more than 8 million barrels, the most since January of 2021. Weekly U.S. government data tends to fluctuate, some traders said but noted demand for U.S. oil remains robust, pointing to strong exports heading into the summer. Relatively weak prices for U.S. crude could also entice more buyers, they said.
  • 11. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 NewBase Special Coverage The Energy world –April -01 -2022 CLEAN ENERGY EU wants staff to work from home in grand plan to slash use of Russian oil and gas By SOPHIE HUSKISSON FOR THE DAILY MAIL Key Points:  EU chiefs are asking employees to work from home at least three days a week  The International Energy Agency hopes it will reduce use of Russian oil and gas  The EU cannot find alternative supplies and wants citizens to adjust lifestyles EU chiefs are asking workers to buck the trend of returning to the office after the pandemic – to help defeat Vladimir Putin. They want employees to work from home at least three days a week to reduce the consumption of imported Russian oil and gas. The money Moscow makes from its exports is helping to fund Putin’s war in Ukraine. The EU cannot find alternative supplies at the moment, so it wants citizens to adjust their lifestyles. The nine-point plan called Playing My Part, drawn up with the International Energy Agency, asks workers to avoid commuting and drive more slowly to use less fuel.
  • 12. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 The EU imports 90 per cent of the natural gas used to generate electricity, heat homes and supply industry, with Russia supplying almost 40 per cent of EU gas and a quarter of its oil It encourages them to heat homes less in winter and turn air conditioning down in summer. It is estimated the range of measures would save a typical household £375 a year. The IEA calculates that if every citizen followed the plan, it could save 220million barrels of oil and 17billion cubic metres of gas a year. Fatih Birol, of the IEA, said the aim was to ‘reduce the flow of money to Russia’s military and help put us on a path to a cleaner and more sustainable planet’. The nine-point plan called Playing My Part, drawn up with the International Energy Agency, asks workers to avoid commuting and drive more slowly to use less fuel. Pictured, the Russian-flagged oil tanker Pegas in January In March, the EU announced a plan to become independent from Russian energy imports by 2030. This week the German energy minister Christian Lindner said it would be impossible to stop oil imports immediately. Germany is facing speed limits on its famously unregulated autobahns - federal motorways - to save fuel and cut Russian imports.
  • 13. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 Germany’s Green Party, which is in a three-party governing coalition, is pushing for a ‘temporary’ 80mph limit. Austria has cut all fares on public transport to three euros per day and is introducing a programme to help low-income households replace old inefficient appliances. How to implement an EU embargo on Russian oil Anette Hosoi, Simon Johnson 20 April 2022 The Russian war on Ukraine is financed in large part by the export of oil, and while countries have intensified various sanctions on Putin’s leadership group and the Russian economy, Russian oil export revenues since the invasion on 24 February have risen. A new CEPR Policy Insight argues that if the objective is to reduce Western financing of the Russian military effort, the only logical next step is for the US, the EU, the UK, and others to prohibit all Russian oil and oil product exports, and to make it illegal to carry such cargo in European-owned tankers. Rüdiger Bachmann, David Baqaee, Christian Bayer, Moritz Kuhn, Andreas Löschel, Benjamin Moll, Andreas Peichl, Karen Pittel, Moritz Schularick The Russian war on Ukraine is financed in large part by the export of oil. The US, the EU, the UK, and other countries have intensified various sanctions on Putin’s leadership group and their economy (Berner et al. 2022), but Russian export revenues since the invasion on 24 February have risen: the volume of oil exported has not fallen, and the world price of oil is up. Most notably, the EU buys 2.2 million barrels of oil and 1.2 million barrels of petroleum product from Russia every day (IEA 2022). According to press reports, much of Russia’s hard currency revenue is now being spent on re-equipping the Russian military and preparing for the next offensive. There is also an unseemly and morally appalling scramble by some European and Asian countries to increase their purchases of Russian oil. According to publicly available data, as shown in Figure 1, some nations that claim to be fully in support of Ukrainians appear to have significantly increased their purchases of Russian oil since the invasion.
  • 14. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 Countries importing Russian oil In a new CEPR Policy Insight (Hosoi and Johnson 2022), we argue that if our objective is to reduce Western financing of the Russian military effort, the only logical next step is for the US, the EU, the UK, and others to prohibit all Russian oil and oil product exports, and to make it illegal to carry such cargo in European-owned tankers. This blanket provision would trigger force majeure clauses in most contracts for vessel owners, oil traders, insurance companies, and other providers of financial services – allowing them to break existing contracts without penalty. The key point is to avoid a situation in which the EU imposes an embargo on the import of Russian oil, resulting only in more of that oil flowing to Asian markets. Given the large market share of EU- owned tanker fleets, a prohibition on those vessels carrying Russian oil and oil products is essential for sanctions to be meaningful. An EU embargo and associated system of sanctions could be combined with a tightly controlled and centralised system of waivers. These waivers would allow limited purchases of Russian oil by designated countries and in specified tankers. The prices charged should be monitored and preferably set below the world price for oil. In addition, all payments for Russian oil under the waiver programme would go into supervised escrow accounts. The funds in these accounts should be available to Russia only once there is a ceasefire and, even in that case, should be used to buy food and medicine only – no weapons or industrial components that can be used to make weapons or military equipment of any kind. As an additional safeguard, all approved imports into Russia would also need to be supervised carefully to ensure that only humanitarian supplies are getting through. In addition to all standard
  • 15. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 border controls, Ukrainian-appointed inspectors should participate in checking every shipment of freight to Belarus or Russia. This would require hiring many inspectors, but there are currently more than two million adult Ukrainian refugees in European countries – so there is no shortage of people who need a job and who are willing to work. Their salaries should be paid from the Russian oil escrow accounts. Any country that receives a permit to buy Russian oil should also publicly commit to reduce its consumption of fossil fuels over time. To facilitate these energy transitions, all forms of appropriate technology should be shared widely. As we discuss in the appendix to our Policy Insight, the development of offshore windfarms is among the most appealing ways to reduce oil consumption in the medium run. Taking these factors and market conditions into consideration suggests the following general approach: 1. All Russian oil and oil products should be sanctioned by the US, the EU, the UK, and any other countries that are willing to stop Putin’s war on Ukraine. (Similar sanctions should be applied to Belarus.) 2. The carrying of Russian-origin oil and oil products in any US, European, British, and other vessel should also be prohibited. 3. The provision of financial services in any form to any entity involved in the Russian oil and gas value chain should also be prohibited. 4. The combination of 1, 2, and 3 would trigger force majeure in all commercial contracts for the buying, transportation, and financing of Russian oil cargo.
  • 16. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 5. The EU should declare a complete embargo on all Russian oil and seek alternative suppliers of crude oil and refined products. The available spare capacity in Saudi Arabia and the United Arab Emirates is roughly equal to the amount of crude oil that the EU currently buys from Russia daily. 6. A system of waivers should be put in place to allow the controlled export of some Russian crude and refined products subject to centrally issued permits. 7. Administering this permit system will be costly, and appropriate fees should be charged. An initial user fee of $50 per barrel, paid for by Russia, seems plausible. 8. International permits would allow energy exports subject to the following conditions:  All proceeds from these transactions go into escrow accounts.  These accounts are frozen until Russian forces withdraw from Ukraine.  Once unfrozen, these accounts can be used to buy food, medicine, and other humanitarian supplies only. d. The supplies purchased under license are shipped to Russia only through a few tightly controlled land crossings (vehicle and train), for example on the Poland-Belarus border and on the Finland-Russia border. In addition to local and EU border officials, there should also be Ukrainian inspectors present for every inspection of all cargo. All shipments need to be inspected, without exceptions. 9. Ukrainian refugees should be hired and trained as cargo inspectors. Their salaries should be paid out of the escrow accounts. In addition to assisting with the immediate task of ensuring no weapons or parts for weapons are smuggled into Russia, training these workers will help rebuild the Ukrainian customs service in line with EU best practices. 10. The central authority to provide licenses and authorise inspections could be administered by the International Energy Agency (IEA) acting under the authority of the governments involved. 11. To the extent that additional specialists are needed to staff any dimension of this effort, including monitoring tankers, determining whether sanctions are being violated, and assessing potentially questionable financial transaction, highly qualified Ukrainians are available. Given that the Russian invasion is estimated to have caused a nearly 50% decline in Ukraine’s GDP (Tsyrennikov 2022), employing these talented people in this fashion seems entirely appropriate. Again, their salaries can be paid from the escrow accounts. 12. In effect, the proposed structure would create an ‘Inverse OPEC’, comprised of countries that are willing to limit the ability of Russia to buy destructive weapons. This arrangement is obviously a violation of competitive market principles, but so is OPEC. 13. All participating countries should agree to taper their purchases of Russian fossil fuels as quickly as possible. Measures to reduce consumption of oil should be put in place everywhere, with sharing of all relevant technology. Industrial country governments should ensure that poorer countries have expedited access to any technology that would be helpful. 14. At the same time, all countries should work towards long-term solutions to reduce their dependence on oil (see the appendix in our Policy Insight). These efforts gain great urgency considering the national security implications that the Russian invasion of Ukraine highlights. The current crisis emphasises that it is in the long-term interests of Europe to remove the vulnerability associated with energy production that EU countries cannot control. Although the EU, the US, and other countries have made great strides towards energy independence, Russia’s invasion of Ukraine illustrates that we need more flexibility to absorb large shocks to the system.
  • 17. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 NewBase Energy News 22 April 2022 - Issue No. 1507 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 18. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18
  • 19. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19
  • 20. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20