Microsoft word new base 11 june energy news issue - 1041 by khaled al awadi

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NewBase 11 June 2017 - Issue No. 1041 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
QATAR AND THE NORTH FIELD DEVELOPMENT: A GAS
INDUSTRY VIEW .. Morten Frisch (all images added by NewBase)
This article, by Morten Frisch, explains the development of the North Field, how the LNG market
has developed since 2005, Qatari sales of pipeline gas to the UAE and Oman and how these
North Field based activities have formed Qatar’s relationship with Iran; all from oil and gas
upstream and gas industry points of view.
Lifting the North Field moratorium
During a press conference April 3, Qatar Petroleum’s president and CEO Saad Sherida al-Kaabi
announced the lifting of the moratorium on North Field developments imposed more than 11 years
back in the autumn of 2005. What is the significance of this for Qatar and the global LNG
industry? To answer this question one needs to look at the years building up to this decision for
Qatar and what has happened
in the global LNG market in this
period.
More than a decade had passed
since the imposition of the
moratorium and these years
have been anything but
uneventful for Qatar and its role
as a global LNG producer. A
large part of its 77mn metric
tons/yr of flexible production
capacity, originally developed
for the “import-hungry” US and
European markets, was at
grave peril back in 2009 when
US and European gas market
developments led to this no
longer being attractive.
On one hand, UK and continental European gas demand was slowing down by a combination of
economic recession, cheap US and Russian coal imports and substitution of gas – previously the
power industry’s fuel of choice – with a high volume of subsidy-supported renewable energy.

On the other hand, the US was experiencing its shale gas revolution, and overseas LNG volumes
were no longer required. During the summer of 2010, LNG spot prices in Far East Asia had fallen
to $5.00- 5.50/mn Btu. This LNG spot price recovered to some $10/mn Btu during the winter of
2010/11, but likely would again have fallen to around $5.00/mn Btu during the summer of 2011.
The expected economic returns from Qatar’s LNG exports were potentially at stake.
But then, the devastating Fukushima tsunami came on March 11, 2011 and Japan’s shift to gas to
replace lost nuclear generation capacity signalled a new era for the Qatari merchant LNG export
industry. In the aftermath, spot LNG traded at above $20/mn Btu, a far cry from the situation the
previous summer.
In addition to Japan’s increased LNG purchases after March 2011, Egypt became a net LNG
importer. LNG supply-side problems elsewhere and rising demand, not only from the “new”
markets of South America, but also China, India, southeast Asia and the Middle East, further
contributed to the re-balancing of Qatar’s export position.
Spot LNG prices rose to levels signalling higher returns for LNG developers and a number of LNG
projects were born as a result. A flood of new LNG is now coming on stream, but its impact will be
most notably felt in the 2018-2021 period as project delays and increased Asian demand has
delayed the expected LNG supply/demand imbalance caused by a combination of these new
projects and production from existing projects coming off contract.
GasTech 2017 in Japan – the world’s No 1 buyer
At the time of the Qatar Petroleum (QP) press conference in Doha on 3 April 2017, on the eve of
the GasTech 2017 conference in Japan, the main gas industry topics were LNG buying
consortiums, LNG pricing in an oversupplied and therefore low priced LNG market, the need for
more flexible long term LNG contracts and how the commercial structure
of US LNG supplies could be used
as an example of how the
international LNG market was
changing. Furthermore, these topics
were then, and still are today,
actively being discussed among
LNG buyers at a time when Qatar
has long term sales of 7.2mn mt/yr
of LNG with Japanese buyers
expiring in 2021.
This represents a volume of LNG not
only Qatar, but also Australia, Papua
New Guinea, the US and even Nigeria would like to supply. The timing of the QP press
conference announcing the lifting of the North Field gas development moratorium which also
included the statement Qatar was planning to add some 2bn ft³/d of additional feed gas supplies,
was no coincidence. The announcement was likely meant to deflect attention away from the
above topics.

It is understood the Qataris, at least to some degree, managed to achieve this objective. The
announcement admittedly gave the CEO of QatarGas, Sheikh Khalid Bin Khalifa Al-Thani a
positive platform for his key note address to the conference.
The North Field/South Pars balance
Al Kaabi’s announcement of the lifting of the North Field development moratorium the day before
GasTech 2017 started was not as unexpected as some might think. To understand this, one
would need to first go back to the 2003
– 2005 period and the reasons behind the introduction of the North Field moratorium in the
autumn of 2005:
The North Field is a gas/gas condensate field with retrograde condensation. Due to its size, the
field was initially developed for production without a full field development plan. The field is part of
the same structure as the South Pars Field in Iran but the two fields have never been unitised. If
the North Field/South Pars Field should be produced in such a way that large pressure drops
developed in local areas, then retrograde condensation would set in and such a development
likely would have led to the loss of large gas and condensate reserves.
Qatar and Iran have maintained regular technical meetings about the North Field/South Pars but
sanctions have stopped Iran from developing its share of the reservoir at the same speed as the
North Field and this for many years caused concerns in Iran. The Iranians were stating prior to the
Qatari announcement of the moratorium in autumn 2005: “Qatari production might lead to a
pressure drop in the South Pars field north of the median line and this in turn could lead to the loss
of Iranian gas reserves.” They had a point.
In the early 1990’s and over a period of some 15 years thereafter, Qatar made at least three
serious attempts to sell pipeline gas from the North Field to neighbouring countries. These
projects were stranded as a result of a border dispute, problems with obtaining permits for the gas
export pipeline to cross a third party country and on one occasion the base price offered by the
buyer was insufficient for the non-Qatari project promoters to get the gas export project approved
by their parent companies.
These experiences led the Qataris down the LNG route which at that point in time already had
given the country positive gas export experiences. As a result in late February/early March 2005 a

number of new gas production and LNG projects based on North Field gas were entered into.
Examples are QatarGas 2, 3 and 4 and RasGas III.
The Pearl gas to liquids project, the world’s largest, was sanctioned at the same time. The location
in the North Field of the gas production wells for some of these projects had a high concentration
towards the median line with Iran.
It is understood work on a reservoir model for the North Field had started prior to these big project
signings in early 2005. However, this proved much more time consuming and complex than had
been anticipated, a view confirmed with the drilling of production wells.
The combination of an increasingly acute need for a reliable reservoir model, political pressure
from Iran and also what prudent operators in the oil and gas upstream industry would call “good
housekeeping” led to the introduction of the
moratorium in late 2005. For the reasons stated above, the moratorium was initially meant to be in
place for some three years, but actually lasted in excess of eleven years.
So why lift the moratorium now? Technical and political developments in the last few years seem
to have facilitated this decision. It has been observed that QP now has a much better knowledge
of the reservoir itself, and has an advanced ability to optimise the hydrocarbon recovery and
production from the North Field. For an overall economic optimisation to be possible, technical
and commercial optimisation decisions need go hand in hand as will be discussed below. The
Qataris have clearly been making such decisions already, and the further development of the
North Field should enhance their position.
On the Iranian side, the development of South Pars is now also gaining pace following the lifting of
the nuclear sanctions. However, Al Kaabi’s statement that the [inshore part of the North] field the
company is developing is the furthest from Iranian border underlines the Iranian sensitivity.
Using more of North Field
How will gas from new North Field developments be utilised? It is no secret that Qatar is running
low on gas for domestic use. The last development of the North Field, the $10bn Barzan Gas
Project operated by RasGas, has been rationed for power generation and desalination projects;

the new airport; football stadiums for the 2022 World Cup; and related infrastructure such as
hotels.
It is understood that industrial projects such as expansion of Qatar Steel has not been given a gas
allocation, and therefore did not go ahead. The new gas production projects when available for
consumption could potentially support new industrial projects.
Both RasGas and QatarGas have experienced feed gas shortages, particularly during winter
months when the capacity of LNG trains at Ras Laffan can increase by some 10%-15% during
periods of low ambient temperatures. As a result of this feed gas shortage, it is understood Qatar,
at least during some winters, has been missing out on winter opportunities to boost LNG
production at Ras Laffan when spot LNG prices have peaked. With the new gas production
projects on stream this can be corrected.
Furthermore, the UAE has been importing increasing volumes of LNG, particularly during the hot
summer months given its shortage of gas. Qatar is connected to the UAE by the Dolphin gas
export pipeline with a capacity of 3.2bn ft³/d. The Dolphin pipeline serves two long-term gas export
deals: The UAE with 1.8bn ft³/d and Oman with 0.2bn ft³/d.
Qatar has also during recent years operated additional short term gas supply deals with the UAE.
When the new North Field production comes on stream likely in some five years’ time, Qatar will
be in a position to further increase pipeline gas exports to the UAE through the Dolphin pipeline.
Such an increase is likely to be concentrated during summer months when gas demand in the
region is at its highest. On October 4, 2016 QP, and Dolphin Energy signed a new gas sales
agreement for additional supplies of pipeline gas to the UAE via the Dolphin pipeline, with the
additional amount earmarked for Sharjah Electricity and Water Authority (SEWA) and Ras Al
Khaimah.
To support these new gas deliveries, Dolphin is in the process of expanding its gas pipeline
system in the Northern Emirates of the UAE. The quantities involved and the time table for the
expanded gas deliveries were not announced during the signing of this new gas supply
agreement.

During summer months which normally have low seasonal spot LNG prices, Qatari exports of
pipeline gas to the UAE are likely to yield a higher return than short term and spot LNG sales.
Increased export of pipeline gas during summer
months when LNG trains normally undergo maintenance and feed gas requirements for LNG
production as a result are reduced, could be balanced by increased LNG feed gas requirements at
winter time; hence this is likely to be a good commercial optimisation of available Qatari gas
production.
One should not assume that additional gas production from the North Field will lead to the
construction of new LNG liquefaction capacity other than de-bottlenecking and modernisation of
existing trains. This view was confirmed by QP’s al-Kaabi at a press conference in Doha May 31,
when he announced the signing of an agreement with Chiyoda Corporation to conduct a detailed
study to identify the modifications that are required for debottlenecking the capacity of Qatar’s
LNG trains, located in Ras Laffan Industrial City.
The LNG train upgrades resulting from this engineering study which is due to be completed by
year end 2017, could increase the LNG production capacity at Ras Laffan potentially by up to a
tenth, giving Qatar a total LNG export capacity of some 85mn mt/yr. This together with the
maximising of LNG production during the winter could potentially help Qatar retain its position as
the largest LNG producer in the world at the time of the year when this matters most. In the
current crude oil price environment, building more GTL capacity is unlikely to be economic.
Finally, the additional gas production will lead to increased natural gas liquids (NGLs) and
condensate production. Condensate is a light crude oil which can be exported outside Opec
quotas. In the current oil market environment this is also an important economic consideration for
Qatar.
Iran’s reaction
Qatar no doubt had discussed the lifting of the North Field development moratorium with the
Iranians prior to the press conference April 3. It would make sense for the lifting of the moratorium
to have previously been agreed with Iran. Iran’s inauguration of South Pars Phases 17 through 21
which took place on 16 April – just a few weeks later – is further evidence in support of this view. It
would have been difficult for Qatar to lift the moratorium had Iran not been able to make good
progress with South Pars Phases 17 through 21.
According to press reports from the South Pars inauguration ceremony last April, the Iranian
minister of petroleum Bijan Zangeneh welcomed the lifting of the North Field development
moratorium and QP’s announcement that a development of the Southern and inshore part of the
field would now be planned.
Qatar’s future position as a world class LNG supplier
The current LNG market environment is challenging for all producers, and Qatar is no exception.
However, compared to new LNG producers, Qatar has a clear cost advantage. By lifting the North
Field moratorium and making additional gas production of some 2bn ft³/d from new North Field
developments available, Qatar should be in a position through low cost de-bottlenecking and up-

grades of its existing LNG infrastructure to better optimise the utilization of its gas resources and
the economic returns from these.
Furthermore, the new North Field gas production should in the future enable Qatar to defend its
position not only as a reliable, but also as a flexible supplier of LNG to evolving world markets. If
the Chiyoda study confirms the debottlenecking and modernisation potential for Qatar’s LNG
trains and the project is sanctioned in early 2018, the new LNG liquefaction capacity should be
available in 5-7 years’ time. Based on current LNG projections of LNG supply and demand, the
2023 to 2025 period could prove an optimum time for Qatar to bring additional LNG production to
market.
Morten Frisch is the Senior Partner of Morten Frisch Consulting (MFC) (www.mfcgas.com). Over
the last 25 years he has on a regular basis been involved with pipeline gas and LNG issues in the
Arabian Gulf area. He can be contacted by email sent to office@mfcgas.com.

Saudi Sadara starts Butyl Glycol Ether production in Jubail
Sadara Chemical Co.
Saudi-based Sadara Chemical Company, a joint venture between Saudi Arabian Oil Company
(Saudi Aramco) and The Dow Chemical Company, has announced the production of commercial
quantities of butyl glycol ether (BGE) at its plant, one of the largest of its kind in the world.
The BGE will be refined into several specialty chemicals that Sadara will be producing in Saudi
Arabia for the first time.
The single-train plant, one of 26 ones located in the company’s chemical complex in Jubail
Industrial City II, will enable new manufacturing facilities to be established in the kingdom, which
will create new job opportunities for locals, it said.
The Sadara Butyl Glycol Ethers plant produces multiple grades of liquid derivatives including
BGE, Butoxy DiGlycol Ether, Butoxy Tri Glycol Ether and Butoxy Poly Glycol Ether. These
derivatives have a wide range of commercial and industrial applications, including the production
of industrial solvents, stain removers, plasticizers as well as agricultural crop protection
applications
The plant will produce multiple grades of liquid derivatives including butoxy glycol ether, butoxy
diGlycol ether, butoxy tri glycol ether and butoxy poly glycol ether, it added.
These derivatives have a wide range of commercial and industrial applications, including the
production of industrial solvents, stain removers, plasticizers as well as agricultural crop protection
applications, said a statement.
Commenting on the announcement, CEO Ziad Al Labban said: "This is yet another major
milestone for Sadara made possible thanks to the dedication and hard work of Sadara’s highly-
talented workforce."
"Over the next couple of months, we expect to start up our remaining manufacturing plants,
steadily moving towards the realization of full operations," he added.

Egypt:Utec awarded by Saipemwins support services for Zohor
Saipem
Leading subsea construction company Saipem has awarded a major contract to Utec, a major
independent offshore and onshore survey company, to support its operations as part of the Zohr
offshore gas field development in Egypt.
A leading global survey company in subsea services group Acteon, Utec said as per the deal it
will work with Saipem in performing surface positioning on-board its operated barges, Bautino and
Castoro 10, and associated Anchor Handling Vehicles (AHVs).,
It will also provide
trenching support,
including trench
monitoring services
and as-trenched
surveys utilising Utec’s Teledyne Gavia Autonomous Underwater Vehicles (AUVs) in water depths
ranging from 2.5m to 20m. The contract is expected to last around five months, said the company
in a statement.
As the largest global operator of low logistics systems, Utec will bring its experience in AUVs to
the project, which is expected to be one of the biggest gas field discoveries in the Mediterranean
Sea, with an estimated 850 billion cu m of gas in place.
According to Utec, the company has been deploying AUV systems on a range of projects around
the world since 2010 and, upon becoming part of the Acteon group, has become the single largest
commercial user of the system with seven AUVs in their fleet.
Cory Goodyear, Utec's business unit director, Europe and Africa, said: "The award of this
significant contract underlines Utec’s core values of performance and excellence by providing our
clients with the ability to achieve more powerful results, while remaining focused on executing
these projects safely and in a cost-effective manner."
“Utec has built up a strong relationship with Saipem utilising AUV solutions in Africa, and we look
forward to continuing our close working relationship to remain at the forefront of emerging
technology and ensure that all of our customers continue to receive world-class service and
solutions,” he noted.
Paul Smith, Utec's global director for projects and operations, said: "At a time when our industry
is challenging conventional methods of survey, the use of low logistic AUVs is a great example of
how our global clients can optimise their offshore operations and reduce costs to projects."
"By deploying AUVs from vessels already in field, Saipem has been able to eliminate the
requirement for a dedicated survey vessel to support this phase of the project," he added.

Ghana:ENI To Open Oil And Gas Field Three Months Early
by Reuters|Kwasi Kpodo|Friday, June 09, 2017
Italy's ENI will start commercial oil and gas production at its Sankofa field off the coast of Ghana in
July, three months ahead of schedule, project partners said on Friday.
The Sankofa field, which will pump 45,000 barrels per day, is phase one of the $7.9 billion
Offshore Cape Three Points (OCTP) project that will also produce up to 180 million standard cubic
feet of gas daily from nearby Gye Nyame reserve by the end of next year.
"ENI has launched production
from the integrated oil and gas
development project in the
OCTP block, off Ghana's
western coast, in just two and
half years, and three months
ahead of schedule," the
company said in a statement
emailed to Reuters.
The government of President
Nana Akufo-Addo hopes
OCTP will more than double
domestic gas supply and help
restore rapid economic growth
in a country that also produces
gold and cocoa.
The gas is fuelling the production vessel and the excess will be reinjected as output rises after
commissioning, said an ENI spokesman who declined to be identified. ENI holds a 44.44 percent
stake in OCTP, representing the largest foreign direct investment in Ghana's history.
Upstream trader Vitol holds 35.56 percent while state oil company Ghana National Petroleum
Corporation has a combined carried and participating interest of 20 percent.
The project could raise Ghana's oil output to around 200,000 barrels per day and gas production to more
than 300 million standard cubic feet, a senior GNPC official told Reuters. "We have started production but
not officially ... It marks the beginning of Ghana's journey towards petroleum-driven sustained economic
growth," the official said.
Ghana is recovering from a power crisis caused by lack of funds to buy oil in the absence of domestic gas
to power thermal plants. The government estimates gas from OCTP will boost generation by 1,000
megawatts, enough to ensure stable supply.
The West African country began pumping oil in 2010 from its flagship offshore Jubilee field, followed by
production from the Tweneboa, Enyenra, Ntomme (TEN) field in August last year. Both fields are operated
by UK firm Tullow Oil.

N.Korea: U.N. cap on North Korean coal exports could decrease
North Korean export earnings
U.S. EIA, based on reported trade data from North Korea's trade partners, as accessed through Global Trade Tracker
In 2016, the almost $1.2 billion value of North Korea’s coal exports accounted for about 40% of
their total export revenue. A cap imposed by the United Nations (U.N.) on imports of coal from
North Korea would limit North Korea’s coal export earnings to about US $400 million in 2017,
about one-third of the previous five-year average.
In March 2016, U.N. Resolution 2270 condemned North Korea’s January 2016 nuclear test and its
February 2016 ballistic missile launch. As part of the resolution, the U.N. decided that all member
nations should prohibit imports of coal from North Korea.
However, Resolution 2270 included two exclusions: first, U.N. members are permitted to import
coal that originates outside of North Korea and transits North Korea’s port of Rajin, and second,
U.N. members are permitted to import coal for humanitarian purposes.
In November 2016, U.N. Resolution 2321 reaffirmed the earlier imposed sanctions, and it placed a
cap on total coal imports for humanitarian purposes to all U.N. member countries. For December

2016, this cap was 1.1 million short tons or $53.5 million, whichever is lower. Beginning January 1,
2017, total annual coal imports for humanitarian purposes was capped at 8.3 million short tons or
$400.9 million, whichever is lower.
More than 99% of reported coal exports from North Korea went to China in 2016. According to
Chinese trade data, Chinese imports of coal from North Korea from April through November
2016—after the March U.N. resolution—were 13% higher than in 2015.
In December 2016, the first month when U.N. Resolution 2321 was in effect, China reported
importing slightly more than 2.2 million short tons of coal originating in North Korea, an amount
more than twice the United Nations’ volume limit, with a total value of $184 million, a value more
than three times the United Nations’ value limit. China attributed the excess December imports to
a time lag between the issuance and implementation of the sanctions.
In the first two months of 2017, China’s reported imports of coal originating in North Korea were
more than one-third of the annual U.N. volume cap and more than half of the annual U.N. value
cap. In late February, China announced that it was banning imports of North Korean coal for the
rest of the year. U.N. data indicate that one unidentified country imported a minimal amount of
coal from North Korea in March.

Russia is also a significant trading partner for North Korea. In 2014, the railroad line between
Russia and the North Korean port of Rajin was renovated, and the coal facilities at the port were
modernized. Rajin, near North Korea’s border with Russia and China, is part of the Rason Special
Economic Zone.
After completion of the rail and port project, the level of Russian coal transiting North Korea
increased sharply, from 0.1 million short tons in 2014 to 1.1 million short tons in 2015 and 1.5
million short tons in 2016. Reported North Korean imports of Russian coal in the first quarter of
2017 were slightly higher than in the first quarter of 2016.
EIA does not have a basis for assessing the accuracy of reported trade data or determining
whether or not all of the coal moving through Rajin that is sold pursuant to the exemption for coal
originating outside of North Korea is actually sourced from abroad.

Global access to electricity has increased over the past two decades
Source: U.S. Energy Information Administration, based on the World Bank Population and Access to Electricity datasets
According to the most recent data from the World Bank, 15% of the world’s population—
approximately 1.1 billion people—lacked access to electricity in 2014. However, access to
electricity has been generally increasing over the past two decades. In 1994, approximately 25%
of the world’s population lacked access to electricity.
Part of the increased share of access to electricity is attributable to the faster rate of population
growth in urban areas; the share of the world’s population living in urban areas grew from 44% in
1994 to 53% in 2014.
Urban areas tend to be more electrified, but most of the world’s population without access to
electricity live in rural areas. In 2014, 27% of the world’s rural population did not have electricity
access compared with 4% of urban populations.

The electrification rate grew the fastest from 1994 to 2014 in Africa, the Middle East, and South
and Southeast Asia. Investments to increase electricity access have significant implications for
economic development and quality of life as well as the energy consumption and energy-related
emissions for each country.

NewBase 11 June 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil closes the week at WTI $45.83 & Brent at 47.99, all Worries
Reuters + NewBase
Oil prices rose on Friday, bouncing a bit from steep falls earlier in the week as a declaration of
force majeure in Nigeria prompted some buying in a market still worried about the global crude
glut.
Brent crude oil was up 30 cents at $48.16 a barrel by 2:40 p.m. EDT. U.S. crude gained 19 cents,
or 0.4 percent, to settle at $45.83 a barrel. U.S. crude and Brent benchmarks remained on track
for weekly declines of more than 3 percent, pressured by big U.S. inventories and heavy
worldwide flows.
Prices held gains after Baker Hughes said eight more rigs came online in the U.S. this week,
marking a record 21 straight weeks of increases, Baker Hughes said.
The Shell Development Company of Nigeria declared force majeure on Nigerian Bonny light crude
oil after someone drilled a hole into the Trans Niger Pipeline, causing a leak.
Rebel activity and government mismanagement have frequently interrupted crude production in
Nigeria, generally Africa's largest oil exporter.
Oil price special
coverage

The leak shows "the production trend in Nigeria is far from stable," said Carsten Fritsch, senior
commodity analyst at Commerzbank.
Prior to that incident, oil markets had been under pressure in part because of evidence showing
Nigeria and Libya, the two OPEC producers exempt from output cuts, were boosting production.
Last month the Organization of the Petroleum Exporting Countries and other key producers
agreed to extend a November agreement to decrease production by almost 1.8 million barrels per
day (bpd), and hold output there until the first quarter of 2018.
Libya's 270,000-bpd Sharara oilfield has reopened after a workers' protest and should return to
normal production within three days, the National Oil Corp said on Friday.
"Libyan production is still very uneven, theres no sign of any stable trend," said Fritsch. He said
Libya's target of 1.25 million bpd was "wishful thinking," saying 850,000-900,000 bpd by year-end
was more realistic.
U.S. data this week showed a surprise 3.3-million-barrel build in commercial crude oil stocks to
513.2 million barrels. Inventories of refined products were also up, despite the start of the peak-
demand summer season.
U.S. refined product inventories are now back above 2016 levels and well above their five-year
range, reflecting an unexpected slowdown in U.S. demand, Jefferies said.
Asian markets are also oversupplied, with traders putting excess crude into floating storage, an
indicator of a glut.Thomson Reuters Eikon shipping figures show at least 25 supertankers sitting in
the Strait of Malacca and the Singapore Strait, holding unsold fuel.
Those are similar amounts to May and April, indicating that even in Asia, with its strong demand
growth, traders are struggling to clear inventories.

NewBase Special Coverage
News Agencies News Release 11 June 2017
Paris Agreement has more problems than just Trump: Clean
technology isn't advancing fast enough
• Just 3 out of 26 energy technology categories the International Energy Agency tracks are on pace to help meet global climate goals.
• The IEA has a fairly straightforward solution: implement policies that will encourage investment in these technologies and work across borders to develop them.
Tom DiChristopher | @tdichristopher
The technologies needed to meet the Paris Agreement's climate goals are not developing quickly
enough, according to a new report from the International Energy Agency.
Nearly every country in the world has committed to take action under the Paris Agreement to slow
global warming. But only 3 out of 26 technology categories tracked by the IEA are on pace to help
do that, the agency concluded in this year's Energy Technology Perspectives report.

The IEA, which advises countries on energy strategy, has a fairly straightforward — if not easy —
solution: implement policies that will encourage investment in these technologies and work across
borders to develop them.
"Many technology areas suffer from a lack of policy support, and this impedes their scaled-up
deployment," IEA said. "Energy efficiency, bioenergy and carbon capture and storage (CCS) are
notable examples of where significant potential for technology progress remains, but strong policy
signals will be required to trigger the appropriate investments."

The IEA assessment on Tuesday came just days after President Donald Trump announced he
would pull the United States out of the Paris Agreement. Trump has already moved to roll back
many Obama-era initiatives aimed at mitigating planet-warming emissions, claiming they will hold
back economic growth and job creation.
The technology categories that are on track to deliver results — electric vehicles, solar and
onshore wind power, and energy storage — have all benefited from government support and clear
policies, IEA notes.
But all 26 technology categories need to be developed and deployed in tandem in the coming
years in order to ensure energy supply is affordable, secure and sustainable, according to IEA.
On the supply side, IEA said governments need to develop policies that encourage the spread of,
while discouraging the continued use of the most inefficient coal-fired technology. It also says
technology to capture carbon from power plants and other industrial facilities — so-called carbon
capture and storage — needs support in order to encourage large-scale projects.
The agency also urges policies that would help speed along technology that decreases energy
demand from industrial facilities, buildings and the transportation sector. Those include policies
that cap the amount of carbon companies are allowed to emit. These systems are already used in
the European Union and are being developed in China, Mexico and Canada.

Questions over U.S. commitment to green tech
A coalition of American states, cities, businesses and colleges have vowed to take action so the
country — the world's second-largest emitter of greenhouse gases — meets its commitments to
the Paris Agreement.
While cities and states can certainly reduce their emissions from existing sources, energy
technology innovation is a critical part of combating climate change, said Akshaya Jha, a
professor at Carnegie Mellon University who specializes in energy and environmental economics.
For every year that new advances fail to hit the market, businesses and states must rely on
existing technology. Once a power plant is built or technology is integrated into an industrial
facility, it may last for years or decades, creating an entrenched competitor to new green energy
technologies, he explained.
"New technologies don't just change the current landscape, they change the landscape potentially
for 20, 30, 40 years," Jha told CNBC. In the United States, the federal government has
traditionally underwritten investment in early stage energy technology, but the White House has
proposed cutting that spending.
Last month, the Trump administration's
2018 budget slashed $2.3 billion from
the Department of Energy's R&D
programs — a 54 percent decline from
2016. Offices that will see deep cuts
include those responsible for promoting
energy efficiency, bringing carbon
capture and storage to market, and
extending the life of nuclear power
plants.
This is despite the United States joining
21 other nations and the European
Union in a pledge to double spending
on energy research and development in
a bid to bring about a clean power
revolution. Under a plan the Obama
administration submitted in 2015, the
U.S. would have raised funding to $6.4
billion by 2021.
This week, all of the countries except the United States reaffirmed or increased their commitments
to raise R&D spending at the second Mission Innovation meeting in Beijing. "United States
Mission Innovation activities are currently under review. The U.S. remains committed to prudent
investment in early stage R&D that underlies technology breakthroughs," the U.S. delegation led
by Energy Secretary Rick Perry said in statement.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
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 May 2017 K. Al Awadi

Microsoft word new base 11 june energy news issue - 1041 by khaled al awadi

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