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NewBase Energy News 07 May 2021 - Issue No. 1430 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: PGNiG prepares to drill its first well in Ras Alkhaimah,May2021
Source: PGNiG
PGNiG starts the s econd stage of exploration works in Ras Al Khaimah Emirate. The company is
at the stage of making design and location arrangements for the first exploration well, which will
provide an answer to the question about the production potential of the licence where PGNiG
operates.
The project assumes drilling an exploration well to a maximum depth of about 3,500 metres. Its
location will be determined on the basis of the results of the analysis of the three-dimensional
seismic image. PGNiG is beginning preparations for tenders, which will select contractors for drilling
and other services. The drilling is planned to commence in Q3 2022.
'The seismic surveys confirmed the probability of the presence of hydrocarbon deposits in the area
of our licence. Detailed interpretation of the data will allow us to select a location which will give the
best chance for a positive outcome of the drilling works,' said Pawel Majewski, President of the
Management Board of PGNiG SA. 'I am glad that thanks to our close cooperation with RAK GAS
LLC, which is our licence partner, and the Ras Al Khaimah Petroleum Authority (RAKPA), which is
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the petroleum administration of the Emirate of Ras Al Khaimah, we can prepare a drilling plan and
commence the second stage of exploration works on our licence,' added President Majewski.
Preparatory works connected with the organization of tenders were one of the topics discussed at
the meeting of representatives of PGNiG and RAK GAS LLC held on Wednesday, May 5th in
Warsaw.
'We are very pleased to have had PGNiG exploring for oil and gas in Ras Al Khaimah for over 2
years and very much value the strong relationship we have built with PGNiG over this time. Having
successfully acquired high quality 3D seismic, the oil and gas potential is now very clear, and we
are delighted that PGNiG will be following up with a plan to drill an exploration well,' said Nishant
Dighe, Chief Executive of RAKPA and CEO of RAK GAS LLC, after the meeting with PGNiG
representatives.
PGNiG's concession in Ras Al Khaimah has an area of 619 sq kms and its scope includes
exploration, appraisal and production of hydrocarbons. Work is being carried out over three 2-year
exploration periods, with the possibility of an extension to the final exploration period if appraisal is
still ongoing. This is followed by a 30-year production period. After each exploration period, the
licence interest may be relinquished.
The ongoing work is based on an Exploration and Production Sharing Agreement (EPSA), which
PGNiG signed with RAKPA and RAK GAS LLC in January 2019. A PGNiG Branch was established
in the Emirate and was granted an operating license in April 2019.
The first phase of the exploration work consisted of a 3D seismic survey. Geofizyka Torun, a PGNiG
Group company, was responsible for its implementation.
About PGNIG:-
PGNiG Upstream Norway AS is an oil and gas company with the head office located in Sandnes, Norway. The sole
owner is Polskie Górnictwo Naftowe i Gazownictwo SA, which is the largest exploration and production company in
Poland. PGNiG is the leader in the natural gas industry in Poland, responsible for maintaining energy security in the
country. It is has been listed on the Warsaw Stock Exchange since 2005, with the Polish State Treasury as the main
shareholder.
Despite the challenges of year 2020, the decrease of hydrocarbon prices and decrease in business related to Covid-
19, the company remains in good condition and plans further investments on NCS.
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Masdar makes first investment in Greece by developing solar
plant with Taaleri Energia https://www.eyeofriyadh.com/news/newsdetail.php?newsid=119386
Masdar, one of the world’s leading renewable energy companies, and Taaleri Energia, which invests
in utility-scale wind and solar assets, have agreed to develop a 65-megawatt (MW) solar
photovoltaic (PV) project in Greece. The project will be managed through the companies’ joint
venture Masdar-Taaleri Generation (MTG).
The co-development was announced at a virtual signing ceremony, attended by His Excellency
Dionyssios Zois,Ambassador of the Hellenic Republic to the UAE, and His Excellency Sulaiman
Hamed Salem AlMazroui, Ambassador of the United Arab Emirates to the Hellenic Republic.
The project is Masdar’s first investment in the Greek market and will be developed by MTG
alongside local partners, theConstantakopoulos family and Autohellas S.A.
“We are extremely pleased for today’s virtual signing of the agreement between two prominent
Greek business groups, the Constantakopoulos family and Autohellas S.A., and the joint venture
between Masdar, the UAE’s renewable energy leader, and Finland’s Taaleri Energia, a prominent
international player in clean energy, with the purpose of establishing a solar photovoltaic project in
Greece,” said His Excellency Zois.
“We congratulate all the business groups involved and specifically Masdar on their very first
investment in the Greek renewable energy sector and we hope that this agreement will pave the
way for additional Emirati investments in Greece, either from Masdar or other UAE entities,” he
added.
“Today’s signing is a milestone occasion that will enhance the longstanding cooperation between
Greece and the United Arab Emirates. We are pleased to support the country’s climate change
efforts and contribute to their goal of producing 35 percent of their energy mix from renewables by
2030. We look forward to strengthening our relationship further by expanding our bilateral
collaboration in the near future,” said His Excellency AlMazroui.
The project is located in the region of Viotia, approximately 65 kilometers north of the Greek capital,
Athens, and is in the advanced development stage, with construction expected to be completed in
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2023. It is intended that the project will participate in Greece’s feed-in-tariff premium auction scheme
in late 2021.
“As we celebrate our fifteenth anniversary in the renewable energy sector, Masdar is proud to be
expanding its global presence by making its first investment in Greece. We look forward to working
with our partners and leveraging our international expertise in clean energy projects to support the
diversification of the country’s energy mix, while advancing our common climate change mitigation
goals,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar.
“This is a high quality solar PV development project in one of the Taaleri SolarWind II fund’s key
markets for solar investments and further demonstrates the value of our joint venture and
cooperation with Masdar,” said Kai Rintala, Managing Director of Taaleri Energia. When complete,
the solar PV plant will produce over 100 gigawatt-hours (GWh) of electricity annually.
“We are proud to be part of this multi-stakeholder venture for the development of a significant
photovoltaic project in our country, and to join reputable groups which are leaders in their respective
fields. Together, we can contribute to Greece’s and to our group’s sustainability targets, in
maximizing the use of renewable energy,” said Achilles V. Constantakopoulos.
According to Greece’s National Energy and Climate Plan (NECP), the country aims to produce 35
percent of its energy from renewable sources by 2030. The plan also targets production of over 60
percent of the country’s electricity consumption through renewables by the same year, doubling its
current contribution.
“Autohellas is honored to be making its first investment in the renewable energy sector alongside
reputable, international and local partners with significant expertise in developing solar photovoltaic
projects,” said Eftichios Vassilakis, Chief Executive Officer of Autohellas S.A.
The Masdar-Taaleri JV, MTG, was announced at Abu Dhabi Sustainability Week 2019, and is a
development vehicle for renewable energy projects in Central and South Eastern Europe.
Masdar and funds managed by Taaleri Energia are co-investment partners in the 158 MW Čibuk 1
wind farm in Serbia, and recently acquired an equal share in two ready-to-build wind farms in
Poland, the 37.4 MW Mlawa Wind Farm and the 14 MW Grajewo Wind Farm.
In the Middle East, the two companies have jointly invested in the development and construction of
the Baynouna Solar Energy Project, a 200 MW solar PV plant in Jordan, the largest single-site solar
PV project in the country.
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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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Bahrain May Follow Gulf States by Selling Oil, Pipeline Assets
Bloomberg + NewBase
Bahrain may follow other Persian Gulf states and sell energy assets to bolster its economy after last
year’s crash in oil prices.
“We’ve got a lot of infrastructure assets that can easily be” structured to raise funding, Oil Minister
Mohammed bin Khalifa Al Khalifa said in an interview on Wednesday. “We’ve been looking at this
for some time. We haven’t made a decision yet.”
The government is in talks with international firms about them investing in a petrochemical plant
that will cost as much as $2 billion to build, he said. A pipeline connecting the island-nation to Saudi
Arabia would be “ideal” for a private-equity transaction, while a ship for importing liquefied natural
gas and upstream assets could also be used to raise money, he said.
In recent weeks, Saudi Arabia, the United Arab Emirates, Qatar, Oman and Kuwait have all
accelerated multi-billion-dollar plans to sell energy assets or issue bonds off the back of them.
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The region’s state energy producers are in a strong position because demand for infrastructure
assets, which tend to have steady returns, is high, Al Khalifa said. “There seems to be a large pool
of capital interested in this, despite all the challenges with the environmental drive,” he said.
Last month, state firm Saudi Aramco said a U.S.-led group would invest $12.4 billion in its oil
pipelines. It may offer a stake in its natural-gas network next. Abu Dhabi’s Adnoc is planning initial
public offerings of drilling and fertilizer units, after raising around $15 billion in the past year through
deals that saw the likes of Brookfield Asset Management Inc. and Apollo Global Management Inc.
buy into gas pipelines and real estate.
Shale Oil
Bahrain’s new petrochemical plant will use naphtha from a nearby refinery, whose capacity is being
expanded from 270,000 oil barrels a day to 400,000. The expansion should be finished in around
18 months, said Al Khalifa.
The government plans to invite international oil companies to develop the Khaleej al Bahrain shale
field this year, once it knows the cost and how many of the deposit’s 82 billion barrels can be
recovered, he said.
Italy’s Eni SpA, meanwhile, will drill its first Bahraini exploration well within weeks, the minister said.
Eni meant to start last year but the coronavirus pandemic caused a delay. Bahrain will open bids
for three other offshore blocks by the end of 2021, he said.
Bahrain is one of the Gulf’s smallest energy producers. It pumps about 50,000 barrels a day of
crude from wholly owned fields and shares a deposit with Saudi Arabia that produces roughly
150,000 barrels a day.
Big Deficit
The country has more than 30 trillion cubic feet of gas reserves, according to the minister.
Bahrain’s budget deficit soared to 18% of gross domestic product last year, according to the
International Monetary Fund. Brent crude’s 35% rise since December to almost $70 a barrel will
help narrow the gap to 9% this year, but that will still be one of the highest levels in the Middle East,
the IMF estimates.
Moody’s Investors Service cut the outlook on Bahrain’s B2 rating to negative on April 29.
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Morocco: SDX Energy commencement of drilling operation in
SDX
The British oil and gas exploration company SDX Energy Plc has announced the commencement
of its 2021 drilling campaign in Morocco, with three wells in the Gharb basin in a first phase, and up
to five wells over the year. The results of the first phase of this operation will be known next July.
The first phase of SDX Energy’s drilling campaign in Morocco began this week with the drilling of
the OYF-3 well in the Gharb. This first phase, which is due to end next July, involves the drilling of
3 wells, with a target of 1.8 billion cubic feet of recoverable gas, the MENA-focused energy company
said in a press release.
“The goal of these wells is to add reserves to allow us to continue delivering gas to our customers
in accordance with their contractual requirements. The start of this campaign has been deferred by
about a month due to travel restrictions linked to COVID-19, delaying the mobilization of equipment
and personnel in Morocco,” said Mark Reid, CEO of SDX Energy.
The London-headquartered company is optimistic and says it expects the three wells of the first
phase to encounter shallow, biogenic gas accumulations near to the Company’s existing
infrastructure, thus enabling tie-ins to be completed quickly and at low cost. The Company says it
will utilize the drilling rig that is already stacked in its yard in Morocco, thereby incurring minimal
mobilization cost.
The second phase of the drilling campaign in Morocco, which concerns two other wells, will begin
in September-October 2021, according to the company. SDX holds a direct stake of 75% in the
Sebou concession, located in the Gharb basin. These producing gas assets are characterized by
exceptionally low operating costs and fixed price gas contracts.
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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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Oil prices set for weekly gain despite India virus surge
Reuters + NewBase
Oil prices eased on Friday but were set for a weekly gain against the backdrop of optimism over a
global economic recovery, though the COVID-19 crisis in India weighed.
Brent crude futures were down 19 cents, or 0.3%, at $67.90 a barrel by 1210 GMT and U.S. West
Texas Intermediate (WTI) crude fell by 21 cents, or 0.3%, to $64.50.
Both Brent and WTI are on track for second consecutive weekly gains as easing restrictions on
movement in the United States and Europe, recovering factory operations and coronavirus
vaccinations pave the way for a revival in fuel demand.
In China, data showed export growth accelerated unexpectedly in April while a private survey
pointed to strong expansion in service sector activity. read more
However, crude imports by the world's biggest buyer fell 0.2% in April from a year earlier to 40.36
million tonnes, or 9.82 million barrels per day (bpd), the lowest since December.
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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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In the United States, the world's largest oil consumer, jobless claims have dropped, signalling the
labour market recovery has entered a new phase as the economy recovers. read more
The recovery in oil demand, however, has been uneven as surging COVID-19 cases in India reduce
fuel consumption in the world's third-largest oil importer and consumer. read more
"Brent came within a whisker of breaking past $70 a barrel this week but failed at the final hurdle as
demand uncertainty dragged on prices," said Stephen Brennock at oil brokerage PVM.
The resurgence of COVID-19 in countries such as India, Japan and Thailand is hindering gasoline
demand recovery, energy consultancy FGE said in a client note, though some of the lost demand
has been offset by countries such as China, where recent Labour Day holiday travel surpassed
2019 levels.
"Gasoline demand in the U.S. and parts of Europe is faring relatively well," FGE said.
"Further out, we could see demand pick up as lockdowns are eased and pent-up demand is released
during the summer driving season."
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U.S. crude oil imports from OPEC are down, but imports from
Canada remain highSource: U.S. Energy Information Administration, Petroleum Supply Monthly
Voluntary OPEC production cuts have been contributing to reduced U.S. crude oil imports from
OPEC so far in 2021. Comparatively stable U.S. crude oil imports from Canada, however, have
been mostly the result of longer-term trends.
Between 2005 and 2020, U.S. crude oil imports from OPEC members decreased rapidly, but imports
from non-OPEC members remained relatively high. In particular, U.S. crude oil imports from Canada
more than doubled to average 3.6 million b/d in 2020, which was more than the combined total of
crude oil imports from all other countries.
Because of increased domestic production of light crude oil, U.S. imports of medium and light crude
oils have decreased while U.S. imports of heavier crude oils have remained comparatively stable.
This trend has resulted in declining crude oil imports from OPEC member countries because OPEC
has historically exported medium and light crude oil grades to the United States. In contrast, imports
from Canada and other non-OPEC countries that have historically exported heavy crude oil grades
have remained relatively stable.
In 2020, crude oil imports from OPEC averaged 816,000 b/d, the lowest level in annual EIA data
(which dates back to 1973), while imports of 3.6 million b/d from Canada were the third-highest on
record, after 2019 and 2018.
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U.S. imports of crude oil from Canada have generally had lower landed costs (the price at the port
of discharge, including charges associated with the purchase, transportation, and insurance) than
crude oil imports from other countries.
These low costs have encouraged U.S. crude oil imports from Canada. However, pipeline capacity
to deliver crude oil from Canada to the Gulf Coast is limited, and the final delivery point for most
U.S. imports of crude oil from Canada has been the Midwest.
Note: Heavy crude oil has an API gravity of lower than or equal to 27.0, medium crude oil is between
27.1 and 34.9, and light crude oil is higher than or equal to 35.0.
Canada produced record amounts of crude oil in 2019, which supported record U.S. crude oil
imports from Canada of 3.8 million b/d. In 2020, U.S. crude oil imports from Canada fell 6% as total
U.S. crude oil imports fell by 14%.
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NewBase May 01-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Edges Toward $70 Amid Uneven Recovery in Worldwide Demand
Oil edged toward $70 a barrel as traders assessed an uneven recovery in global demand, with
falling U.S. stockpiles pointing to rising consumption even as virus-hit India struggles.
Global benchmark Brent, which just failed to top that level on Wednesday, was 0.4% higher after
erasing an early decline. While major crude importer India is battling a record coronavirus wave
that’s sapped economic activity, there are signs of rising oil consumption in the U.S., Europe and
China. Data Wednesday showed American stockpiles declined last week to the lowest since
February.
Oil price special
coverage
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Oil has rallied in 2021 as key economies including the U.S. and China rebound from the impact of
the pandemic, fanning energy demand. The strength in crude forms part of a broad advance in raw
materials, with the Bloomberg Commodity Spot Index surging to the highest level in almost a
decade.
Still, the outbreak has rapidly worsened in India since the start of April, and the country is now
reporting more than 350,000 cases every day. Saudi Arabia’s state energy firm, Saudi Aramco,
reduced June pricing to Asia by between 10 and 30 cents per barrel. The key Arab Light grade for
the region was cut to $1.70 a barrel above the benchmark, from $1.80 for May.
“The failure of Brent to break above $70 per barrel highlights that there is still plenty of concern over
the demand outlook,” said Warren Patterson, head of commodities strategy at ING Group. “India is
a worry for the market, particularly if we eventually see a national lockdown.”
PRICES:
Brent for July settlement was 0.4% higher at $69.20 a barrel on the ICE Futures Europe
exchange at 11:29 a.m. in Singapore.
On Wednesday, prices hit $69.95.
WTI for June delivery was up 0.2% at $65.79 a barrel on the New York Mercantile
Exchange.
Elsewhere in Asia, the Tokyo Metropolitan Government is making arrangements to seek an
extension of a virus state of emergency for the capital, Jiji reported, citing an unidentified person.
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Oil prices are at risk of a correction, according to Bloomberg Intelligence analyst Henik Fung, who
cited the threat posed by India’s crisis as well as higher OPEC+ supply. The Organization of
Petroleum Exporting Countries and its allies are raising output by about 2 million barrels a day
through to July.
In the U.S., government data showed crude stockpiles contracted by nearly 8 million barrels last
week and exports surged, but gasoline inventories rose for the fifth straight week. Separately, pent-
up travel demand in the country is seen spurring a 30% jump in jet fuel use this summer.
Brent’s prompt timespread was 39 cents a barrel in backwardation on Thursday, compared with 31
cents a month ago. That’s a bullish pattern, with near-term prices trading above those further out.
“While we continue to hold a constructive view on the market over the second half of this year, we
do believe that in the near term that the market is getting a bit ahead of itself given the current risks,”
said ING’s Patterson.
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NewBase Special Coverage
The Energy world – May - 01- -2021
The Chinese Government to Become a Clean Energy Supermajor
Bloomberg - Dan Murtaugh
China is turning to its state-owned coal power companies to helm the next stage of the country’s
renewables push, as the sector becomes less attractive to other investors. Government-controlled
utilities will drive the renewables push, as returns sour for private firms.
Private firms have helped the top-polluting nation become the world’s largest generator of clean
energy. Now, as China chases a target to zero out carbon emissions by 2060, and with subsidies
for renewables investments ending, government-controlled utilities need to take the lead.
The five biggest state-backed power firms have announced plans to develop about 305 gigawatts
of new wind and solar capacity in the next five years, according to BloombergNEF, almost twice the
amount it estimates the U.S. will install over the same period. At peak generation, the total being
added would be about enough to power the whole of Japan.
“Carbon neutrality is a central responsibility of state-owned enterprises,” Li Peng, director of
strategic management at one of the companies, State Power Investment Corp., told the Clean
Energy Expo in Beijing last month. “We must provide society with green power. Our industry must
empower others to reduce carbon and reach carbon neutrality.”
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Renewables Rush
China's 5 biggest power companies plan major investments in wind and solar that'll see new
renewables capacity eclipse coal additions
Collectively known as the Big Five, the key utilities are SPIC, China Energy Investment Corp., which
is also the country’s biggest coal miner, China Huaneng Group, China Datang Corp. and China
Huadian Corp. While the firms plan to more than double their wind and solar capacity, they will also
continue to add new domestic coal power projects, and pursue some fossil fuels developments
overseas.
They’ll also benefit as China is forecast to burn a record amount of coal this year as its economy
rebounds from the pandemic. Together, the major utilities control about half of China’s total coal
power fleet. China thermal coal futures surged to a new record Thursday and held close to that
level in early Beijing trading Friday.
The firms are accelerating renewable energy plans as government subsidies end and as
authorities refuse to pay billions of dollars in past-due wind and solar fees. That’s made returns
uninviting for private developers, but still palatable for state-owned ones that can borrow money
more cheaply and need to meet social obligations like helping achieve climate targets, said
Jonathan Luan, a BloombergNEF analyst in Beijing.
By pressing power firms to transition to renewables, policy makers will be hoping to accelerate coal’s
demise. Utilities rely mostly on China’s vast reserves of the mineral to fire their plants, and
consumption of the dirtiest fossil fuel is expected to grow for at least the next five years as the
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economy expands. President Xi Jinping wants the country to start reducing coal use from 2026 on
its way to peaking emissions by 2030 and reaching carbon neutrality by 2060.
Green Goliaths
China's state-owned power giants have big plans for clean energy
At the same time, coal’s role in ensuring national energy security becomes far less of an obstacle if
its replacement is both domestically produced -- China is the world's leading manufacturer of wind
turbines and solar panels -- and effectively inexhaustible.
“Renewable energy is built in China, and doesn’t rely on fuel that’s imported, so security on that
front is pretty set,” Luan said.
The plan to co-opt coal-fired generators is the strongest manifestation yet of Beijing’s top-down
approach to ensuring net-zero emissions, a contrast with others including the U.S. and the European
Union, that need to rely on massaging market rules to accelerate the shift to green energy.
In December, Xi said China would have 1,200 gigawatts of wind and solar capacity by 2030,
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implying new additions of about 350 gigawatts through 2025. The country is also set to add about
130 gigawatts of new coal capacity in that period, according to Wood Mackenzie Ltd.
Coal Dominated
China's power giants still get most of their power from burning fossil fuels
In addition to the Big Five's plans, smaller state companies including China Three Gorges Corp.,
China Resources Holdings Co. and China Power Construction Corp. have also pledged to add more
renewables through 2025. It means the current pipeline is enough to meet China’s energy targets
even without any new projects from the private sector.
“State-owned generation companies will dominate China’s future renewable investments, as they
optimize fuel mix and achieve organic growth by using their strong funding capability,” Fitch Ratings
analyst Diana Xia said in an April 26 note.
Copyright © 2021 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
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NewBase Energy News 07 May 2021 - Issue No. 1430 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 Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, 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 more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management 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.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2021 K. Al Awadi
Copyright © 2021 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
Copyright © 2021 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 21
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Ne base 07 may 2021 energy news issue 1430 by khaled al awad

  • 1. Copyright © 2021 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 07 May 2021 - Issue No. 1430 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: PGNiG prepares to drill its first well in Ras Alkhaimah,May2021 Source: PGNiG PGNiG starts the s econd stage of exploration works in Ras Al Khaimah Emirate. The company is at the stage of making design and location arrangements for the first exploration well, which will provide an answer to the question about the production potential of the licence where PGNiG operates. The project assumes drilling an exploration well to a maximum depth of about 3,500 metres. Its location will be determined on the basis of the results of the analysis of the three-dimensional seismic image. PGNiG is beginning preparations for tenders, which will select contractors for drilling and other services. The drilling is planned to commence in Q3 2022. 'The seismic surveys confirmed the probability of the presence of hydrocarbon deposits in the area of our licence. Detailed interpretation of the data will allow us to select a location which will give the best chance for a positive outcome of the drilling works,' said Pawel Majewski, President of the Management Board of PGNiG SA. 'I am glad that thanks to our close cooperation with RAK GAS LLC, which is our licence partner, and the Ras Al Khaimah Petroleum Authority (RAKPA), which is
  • 2. Copyright © 2021 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 the petroleum administration of the Emirate of Ras Al Khaimah, we can prepare a drilling plan and commence the second stage of exploration works on our licence,' added President Majewski. Preparatory works connected with the organization of tenders were one of the topics discussed at the meeting of representatives of PGNiG and RAK GAS LLC held on Wednesday, May 5th in Warsaw. 'We are very pleased to have had PGNiG exploring for oil and gas in Ras Al Khaimah for over 2 years and very much value the strong relationship we have built with PGNiG over this time. Having successfully acquired high quality 3D seismic, the oil and gas potential is now very clear, and we are delighted that PGNiG will be following up with a plan to drill an exploration well,' said Nishant Dighe, Chief Executive of RAKPA and CEO of RAK GAS LLC, after the meeting with PGNiG representatives. PGNiG's concession in Ras Al Khaimah has an area of 619 sq kms and its scope includes exploration, appraisal and production of hydrocarbons. Work is being carried out over three 2-year exploration periods, with the possibility of an extension to the final exploration period if appraisal is still ongoing. This is followed by a 30-year production period. After each exploration period, the licence interest may be relinquished. The ongoing work is based on an Exploration and Production Sharing Agreement (EPSA), which PGNiG signed with RAKPA and RAK GAS LLC in January 2019. A PGNiG Branch was established in the Emirate and was granted an operating license in April 2019. The first phase of the exploration work consisted of a 3D seismic survey. Geofizyka Torun, a PGNiG Group company, was responsible for its implementation. About PGNIG:- PGNiG Upstream Norway AS is an oil and gas company with the head office located in Sandnes, Norway. The sole owner is Polskie Górnictwo Naftowe i Gazownictwo SA, which is the largest exploration and production company in Poland. PGNiG is the leader in the natural gas industry in Poland, responsible for maintaining energy security in the country. It is has been listed on the Warsaw Stock Exchange since 2005, with the Polish State Treasury as the main shareholder. Despite the challenges of year 2020, the decrease of hydrocarbon prices and decrease in business related to Covid- 19, the company remains in good condition and plans further investments on NCS.
  • 3. Copyright © 2021 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 Masdar makes first investment in Greece by developing solar plant with Taaleri Energia https://www.eyeofriyadh.com/news/newsdetail.php?newsid=119386 Masdar, one of the world’s leading renewable energy companies, and Taaleri Energia, which invests in utility-scale wind and solar assets, have agreed to develop a 65-megawatt (MW) solar photovoltaic (PV) project in Greece. The project will be managed through the companies’ joint venture Masdar-Taaleri Generation (MTG). The co-development was announced at a virtual signing ceremony, attended by His Excellency Dionyssios Zois,Ambassador of the Hellenic Republic to the UAE, and His Excellency Sulaiman Hamed Salem AlMazroui, Ambassador of the United Arab Emirates to the Hellenic Republic. The project is Masdar’s first investment in the Greek market and will be developed by MTG alongside local partners, theConstantakopoulos family and Autohellas S.A. “We are extremely pleased for today’s virtual signing of the agreement between two prominent Greek business groups, the Constantakopoulos family and Autohellas S.A., and the joint venture between Masdar, the UAE’s renewable energy leader, and Finland’s Taaleri Energia, a prominent international player in clean energy, with the purpose of establishing a solar photovoltaic project in Greece,” said His Excellency Zois. “We congratulate all the business groups involved and specifically Masdar on their very first investment in the Greek renewable energy sector and we hope that this agreement will pave the way for additional Emirati investments in Greece, either from Masdar or other UAE entities,” he added. “Today’s signing is a milestone occasion that will enhance the longstanding cooperation between Greece and the United Arab Emirates. We are pleased to support the country’s climate change efforts and contribute to their goal of producing 35 percent of their energy mix from renewables by 2030. We look forward to strengthening our relationship further by expanding our bilateral collaboration in the near future,” said His Excellency AlMazroui. The project is located in the region of Viotia, approximately 65 kilometers north of the Greek capital, Athens, and is in the advanced development stage, with construction expected to be completed in
  • 4. Copyright © 2021 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 2023. It is intended that the project will participate in Greece’s feed-in-tariff premium auction scheme in late 2021. “As we celebrate our fifteenth anniversary in the renewable energy sector, Masdar is proud to be expanding its global presence by making its first investment in Greece. We look forward to working with our partners and leveraging our international expertise in clean energy projects to support the diversification of the country’s energy mix, while advancing our common climate change mitigation goals,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “This is a high quality solar PV development project in one of the Taaleri SolarWind II fund’s key markets for solar investments and further demonstrates the value of our joint venture and cooperation with Masdar,” said Kai Rintala, Managing Director of Taaleri Energia. When complete, the solar PV plant will produce over 100 gigawatt-hours (GWh) of electricity annually. “We are proud to be part of this multi-stakeholder venture for the development of a significant photovoltaic project in our country, and to join reputable groups which are leaders in their respective fields. Together, we can contribute to Greece’s and to our group’s sustainability targets, in maximizing the use of renewable energy,” said Achilles V. Constantakopoulos. According to Greece’s National Energy and Climate Plan (NECP), the country aims to produce 35 percent of its energy from renewable sources by 2030. The plan also targets production of over 60 percent of the country’s electricity consumption through renewables by the same year, doubling its current contribution. “Autohellas is honored to be making its first investment in the renewable energy sector alongside reputable, international and local partners with significant expertise in developing solar photovoltaic projects,” said Eftichios Vassilakis, Chief Executive Officer of Autohellas S.A. The Masdar-Taaleri JV, MTG, was announced at Abu Dhabi Sustainability Week 2019, and is a development vehicle for renewable energy projects in Central and South Eastern Europe. Masdar and funds managed by Taaleri Energia are co-investment partners in the 158 MW Čibuk 1 wind farm in Serbia, and recently acquired an equal share in two ready-to-build wind farms in Poland, the 37.4 MW Mlawa Wind Farm and the 14 MW Grajewo Wind Farm. In the Middle East, the two companies have jointly invested in the development and construction of the Baynouna Solar Energy Project, a 200 MW solar PV plant in Jordan, the largest single-site solar PV project in the country.
  • 5. Copyright © 2021 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 Bahrain May Follow Gulf States by Selling Oil, Pipeline Assets Bloomberg + NewBase Bahrain may follow other Persian Gulf states and sell energy assets to bolster its economy after last year’s crash in oil prices. “We’ve got a lot of infrastructure assets that can easily be” structured to raise funding, Oil Minister Mohammed bin Khalifa Al Khalifa said in an interview on Wednesday. “We’ve been looking at this for some time. We haven’t made a decision yet.” The government is in talks with international firms about them investing in a petrochemical plant that will cost as much as $2 billion to build, he said. A pipeline connecting the island-nation to Saudi Arabia would be “ideal” for a private-equity transaction, while a ship for importing liquefied natural gas and upstream assets could also be used to raise money, he said. In recent weeks, Saudi Arabia, the United Arab Emirates, Qatar, Oman and Kuwait have all accelerated multi-billion-dollar plans to sell energy assets or issue bonds off the back of them.
  • 6. Copyright © 2021 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 The region’s state energy producers are in a strong position because demand for infrastructure assets, which tend to have steady returns, is high, Al Khalifa said. “There seems to be a large pool of capital interested in this, despite all the challenges with the environmental drive,” he said. Last month, state firm Saudi Aramco said a U.S.-led group would invest $12.4 billion in its oil pipelines. It may offer a stake in its natural-gas network next. Abu Dhabi’s Adnoc is planning initial public offerings of drilling and fertilizer units, after raising around $15 billion in the past year through deals that saw the likes of Brookfield Asset Management Inc. and Apollo Global Management Inc. buy into gas pipelines and real estate. Shale Oil Bahrain’s new petrochemical plant will use naphtha from a nearby refinery, whose capacity is being expanded from 270,000 oil barrels a day to 400,000. The expansion should be finished in around 18 months, said Al Khalifa. The government plans to invite international oil companies to develop the Khaleej al Bahrain shale field this year, once it knows the cost and how many of the deposit’s 82 billion barrels can be recovered, he said. Italy’s Eni SpA, meanwhile, will drill its first Bahraini exploration well within weeks, the minister said. Eni meant to start last year but the coronavirus pandemic caused a delay. Bahrain will open bids for three other offshore blocks by the end of 2021, he said. Bahrain is one of the Gulf’s smallest energy producers. It pumps about 50,000 barrels a day of crude from wholly owned fields and shares a deposit with Saudi Arabia that produces roughly 150,000 barrels a day. Big Deficit The country has more than 30 trillion cubic feet of gas reserves, according to the minister. Bahrain’s budget deficit soared to 18% of gross domestic product last year, according to the International Monetary Fund. Brent crude’s 35% rise since December to almost $70 a barrel will help narrow the gap to 9% this year, but that will still be one of the highest levels in the Middle East, the IMF estimates. Moody’s Investors Service cut the outlook on Bahrain’s B2 rating to negative on April 29.
  • 7. Copyright © 2021 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 Morocco: SDX Energy commencement of drilling operation in SDX The British oil and gas exploration company SDX Energy Plc has announced the commencement of its 2021 drilling campaign in Morocco, with three wells in the Gharb basin in a first phase, and up to five wells over the year. The results of the first phase of this operation will be known next July. The first phase of SDX Energy’s drilling campaign in Morocco began this week with the drilling of the OYF-3 well in the Gharb. This first phase, which is due to end next July, involves the drilling of 3 wells, with a target of 1.8 billion cubic feet of recoverable gas, the MENA-focused energy company said in a press release. “The goal of these wells is to add reserves to allow us to continue delivering gas to our customers in accordance with their contractual requirements. The start of this campaign has been deferred by about a month due to travel restrictions linked to COVID-19, delaying the mobilization of equipment and personnel in Morocco,” said Mark Reid, CEO of SDX Energy. The London-headquartered company is optimistic and says it expects the three wells of the first phase to encounter shallow, biogenic gas accumulations near to the Company’s existing infrastructure, thus enabling tie-ins to be completed quickly and at low cost. The Company says it will utilize the drilling rig that is already stacked in its yard in Morocco, thereby incurring minimal mobilization cost. The second phase of the drilling campaign in Morocco, which concerns two other wells, will begin in September-October 2021, according to the company. SDX holds a direct stake of 75% in the Sebou concession, located in the Gharb basin. These producing gas assets are characterized by exceptionally low operating costs and fixed price gas contracts.
  • 8. Copyright © 2021 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 Oil prices set for weekly gain despite India virus surge Reuters + NewBase Oil prices eased on Friday but were set for a weekly gain against the backdrop of optimism over a global economic recovery, though the COVID-19 crisis in India weighed. Brent crude futures were down 19 cents, or 0.3%, at $67.90 a barrel by 1210 GMT and U.S. West Texas Intermediate (WTI) crude fell by 21 cents, or 0.3%, to $64.50. Both Brent and WTI are on track for second consecutive weekly gains as easing restrictions on movement in the United States and Europe, recovering factory operations and coronavirus vaccinations pave the way for a revival in fuel demand. In China, data showed export growth accelerated unexpectedly in April while a private survey pointed to strong expansion in service sector activity. read more However, crude imports by the world's biggest buyer fell 0.2% in April from a year earlier to 40.36 million tonnes, or 9.82 million barrels per day (bpd), the lowest since December.
  • 9. Copyright © 2021 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 In the United States, the world's largest oil consumer, jobless claims have dropped, signalling the labour market recovery has entered a new phase as the economy recovers. read more The recovery in oil demand, however, has been uneven as surging COVID-19 cases in India reduce fuel consumption in the world's third-largest oil importer and consumer. read more "Brent came within a whisker of breaking past $70 a barrel this week but failed at the final hurdle as demand uncertainty dragged on prices," said Stephen Brennock at oil brokerage PVM. The resurgence of COVID-19 in countries such as India, Japan and Thailand is hindering gasoline demand recovery, energy consultancy FGE said in a client note, though some of the lost demand has been offset by countries such as China, where recent Labour Day holiday travel surpassed 2019 levels. "Gasoline demand in the U.S. and parts of Europe is faring relatively well," FGE said. "Further out, we could see demand pick up as lockdowns are eased and pent-up demand is released during the summer driving season."
  • 10. Copyright © 2021 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. crude oil imports from OPEC are down, but imports from Canada remain highSource: U.S. Energy Information Administration, Petroleum Supply Monthly Voluntary OPEC production cuts have been contributing to reduced U.S. crude oil imports from OPEC so far in 2021. Comparatively stable U.S. crude oil imports from Canada, however, have been mostly the result of longer-term trends. Between 2005 and 2020, U.S. crude oil imports from OPEC members decreased rapidly, but imports from non-OPEC members remained relatively high. In particular, U.S. crude oil imports from Canada more than doubled to average 3.6 million b/d in 2020, which was more than the combined total of crude oil imports from all other countries. Because of increased domestic production of light crude oil, U.S. imports of medium and light crude oils have decreased while U.S. imports of heavier crude oils have remained comparatively stable. This trend has resulted in declining crude oil imports from OPEC member countries because OPEC has historically exported medium and light crude oil grades to the United States. In contrast, imports from Canada and other non-OPEC countries that have historically exported heavy crude oil grades have remained relatively stable. In 2020, crude oil imports from OPEC averaged 816,000 b/d, the lowest level in annual EIA data (which dates back to 1973), while imports of 3.6 million b/d from Canada were the third-highest on record, after 2019 and 2018.
  • 11. Copyright © 2021 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 U.S. imports of crude oil from Canada have generally had lower landed costs (the price at the port of discharge, including charges associated with the purchase, transportation, and insurance) than crude oil imports from other countries. These low costs have encouraged U.S. crude oil imports from Canada. However, pipeline capacity to deliver crude oil from Canada to the Gulf Coast is limited, and the final delivery point for most U.S. imports of crude oil from Canada has been the Midwest. Note: Heavy crude oil has an API gravity of lower than or equal to 27.0, medium crude oil is between 27.1 and 34.9, and light crude oil is higher than or equal to 35.0. Canada produced record amounts of crude oil in 2019, which supported record U.S. crude oil imports from Canada of 3.8 million b/d. In 2020, U.S. crude oil imports from Canada fell 6% as total U.S. crude oil imports fell by 14%.
  • 12. Copyright © 2021 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 NewBase May 01-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil Edges Toward $70 Amid Uneven Recovery in Worldwide Demand Oil edged toward $70 a barrel as traders assessed an uneven recovery in global demand, with falling U.S. stockpiles pointing to rising consumption even as virus-hit India struggles. Global benchmark Brent, which just failed to top that level on Wednesday, was 0.4% higher after erasing an early decline. While major crude importer India is battling a record coronavirus wave that’s sapped economic activity, there are signs of rising oil consumption in the U.S., Europe and China. Data Wednesday showed American stockpiles declined last week to the lowest since February. Oil price special coverage
  • 13. Copyright © 2021 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 Oil has rallied in 2021 as key economies including the U.S. and China rebound from the impact of the pandemic, fanning energy demand. The strength in crude forms part of a broad advance in raw materials, with the Bloomberg Commodity Spot Index surging to the highest level in almost a decade. Still, the outbreak has rapidly worsened in India since the start of April, and the country is now reporting more than 350,000 cases every day. Saudi Arabia’s state energy firm, Saudi Aramco, reduced June pricing to Asia by between 10 and 30 cents per barrel. The key Arab Light grade for the region was cut to $1.70 a barrel above the benchmark, from $1.80 for May. “The failure of Brent to break above $70 per barrel highlights that there is still plenty of concern over the demand outlook,” said Warren Patterson, head of commodities strategy at ING Group. “India is a worry for the market, particularly if we eventually see a national lockdown.” PRICES: Brent for July settlement was 0.4% higher at $69.20 a barrel on the ICE Futures Europe exchange at 11:29 a.m. in Singapore. On Wednesday, prices hit $69.95. WTI for June delivery was up 0.2% at $65.79 a barrel on the New York Mercantile Exchange. Elsewhere in Asia, the Tokyo Metropolitan Government is making arrangements to seek an extension of a virus state of emergency for the capital, Jiji reported, citing an unidentified person.
  • 14. Copyright © 2021 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 Oil prices are at risk of a correction, according to Bloomberg Intelligence analyst Henik Fung, who cited the threat posed by India’s crisis as well as higher OPEC+ supply. The Organization of Petroleum Exporting Countries and its allies are raising output by about 2 million barrels a day through to July. In the U.S., government data showed crude stockpiles contracted by nearly 8 million barrels last week and exports surged, but gasoline inventories rose for the fifth straight week. Separately, pent- up travel demand in the country is seen spurring a 30% jump in jet fuel use this summer. Brent’s prompt timespread was 39 cents a barrel in backwardation on Thursday, compared with 31 cents a month ago. That’s a bullish pattern, with near-term prices trading above those further out. “While we continue to hold a constructive view on the market over the second half of this year, we do believe that in the near term that the market is getting a bit ahead of itself given the current risks,” said ING’s Patterson.
  • 15. Copyright © 2021 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 NewBase Special Coverage The Energy world – May - 01- -2021 The Chinese Government to Become a Clean Energy Supermajor Bloomberg - Dan Murtaugh China is turning to its state-owned coal power companies to helm the next stage of the country’s renewables push, as the sector becomes less attractive to other investors. Government-controlled utilities will drive the renewables push, as returns sour for private firms. Private firms have helped the top-polluting nation become the world’s largest generator of clean energy. Now, as China chases a target to zero out carbon emissions by 2060, and with subsidies for renewables investments ending, government-controlled utilities need to take the lead. The five biggest state-backed power firms have announced plans to develop about 305 gigawatts of new wind and solar capacity in the next five years, according to BloombergNEF, almost twice the amount it estimates the U.S. will install over the same period. At peak generation, the total being added would be about enough to power the whole of Japan. “Carbon neutrality is a central responsibility of state-owned enterprises,” Li Peng, director of strategic management at one of the companies, State Power Investment Corp., told the Clean Energy Expo in Beijing last month. “We must provide society with green power. Our industry must empower others to reduce carbon and reach carbon neutrality.”
  • 16. Copyright © 2021 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 Renewables Rush China's 5 biggest power companies plan major investments in wind and solar that'll see new renewables capacity eclipse coal additions Collectively known as the Big Five, the key utilities are SPIC, China Energy Investment Corp., which is also the country’s biggest coal miner, China Huaneng Group, China Datang Corp. and China Huadian Corp. While the firms plan to more than double their wind and solar capacity, they will also continue to add new domestic coal power projects, and pursue some fossil fuels developments overseas. They’ll also benefit as China is forecast to burn a record amount of coal this year as its economy rebounds from the pandemic. Together, the major utilities control about half of China’s total coal power fleet. China thermal coal futures surged to a new record Thursday and held close to that level in early Beijing trading Friday. The firms are accelerating renewable energy plans as government subsidies end and as authorities refuse to pay billions of dollars in past-due wind and solar fees. That’s made returns uninviting for private developers, but still palatable for state-owned ones that can borrow money more cheaply and need to meet social obligations like helping achieve climate targets, said Jonathan Luan, a BloombergNEF analyst in Beijing. By pressing power firms to transition to renewables, policy makers will be hoping to accelerate coal’s demise. Utilities rely mostly on China’s vast reserves of the mineral to fire their plants, and consumption of the dirtiest fossil fuel is expected to grow for at least the next five years as the
  • 17. Copyright © 2021 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 economy expands. President Xi Jinping wants the country to start reducing coal use from 2026 on its way to peaking emissions by 2030 and reaching carbon neutrality by 2060. Green Goliaths China's state-owned power giants have big plans for clean energy At the same time, coal’s role in ensuring national energy security becomes far less of an obstacle if its replacement is both domestically produced -- China is the world's leading manufacturer of wind turbines and solar panels -- and effectively inexhaustible. “Renewable energy is built in China, and doesn’t rely on fuel that’s imported, so security on that front is pretty set,” Luan said. The plan to co-opt coal-fired generators is the strongest manifestation yet of Beijing’s top-down approach to ensuring net-zero emissions, a contrast with others including the U.S. and the European Union, that need to rely on massaging market rules to accelerate the shift to green energy. In December, Xi said China would have 1,200 gigawatts of wind and solar capacity by 2030,
  • 18. Copyright © 2021 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 implying new additions of about 350 gigawatts through 2025. The country is also set to add about 130 gigawatts of new coal capacity in that period, according to Wood Mackenzie Ltd. Coal Dominated China's power giants still get most of their power from burning fossil fuels In addition to the Big Five's plans, smaller state companies including China Three Gorges Corp., China Resources Holdings Co. and China Power Construction Corp. have also pledged to add more renewables through 2025. It means the current pipeline is enough to meet China’s energy targets even without any new projects from the private sector. “State-owned generation companies will dominate China’s future renewable investments, as they optimize fuel mix and achieve organic growth by using their strong funding capability,” Fitch Ratings analyst Diana Xia said in an April 26 note.
  • 19. Copyright © 2021 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 NewBase Energy News 07 May 2021 - Issue No. 1430 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 Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder of NewBase Energy news articles issues, 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 more than 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management 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. NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE NewBase 2021 K. Al Awadi
  • 20. Copyright © 2021 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
  • 21. Copyright © 2021 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 21
  • 22. Copyright © 2021 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 22 For Your Recruitments needs and Top Talents, please seek our approved agents below