New base 05 april 2021 energy news issue 1422 by khaled 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,
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NewBase Energy News 05 April 2021 - Issue No. 1422 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Abu Dhabi meet pledges to accelerate climate action
Wam
The summit also sought to enable the Mena region to discuss ways of initiating a new low carbon
development path.
Climate leaders from across the Mena region have pledged to take collective efforts to accelerate
climate action, and to work together for the success of the Paris Agreement.A call for enhanced
Nationally Determined Contributions and net zero commitments ahead of 26th United Nations
Climate Change Conference of the Parties (COP26) was also heard at the UAE Regional Dialogue
for Climate Action that concluded in Abu Dhabi on Sunday.
Participants, including US Climate envoy John Kerry, issued a group statement affirming their
commitment to the Paris Agreement, building momentum ahead of US President Biden’s Leaders
Summit on Climate, taking place in Washington, D.C. later this month, and the COP26.
The summit also sought to enable the Mena region to discuss ways of initiating a new low carbon
development path and enhancing cooperation with the international community to transform the
climate challenge into economic opportunity.
Dr Sultan Al Jaber, the UAE’s special envoy for Climate Change and Minister of Industry and
Advanced Technology, said that accelerating climate action is both necessary and a huge
opportunity.

“Coming just weeks before the Leaders Summit on Climate in Washington DC, today’s gathering
could not be more timely. In fact, this principle has driven the UAE’s expansion in clean tech and
sustainable development for the last 15 years.”
Dr Jaber said the clean energy investments “simply make good business sense” as backed by
market trends and hard facts.
“Last year, for instance, set a record for newly installed renewable energy capacity at 260 GW. And
this was achieved despite the economic headwinds of the Covid-19 pandemic,” said the minister.
“Our region has enormous potential to contribute to tackling the global challenge of climate change.
By coming together, we can maximize our contribution, leverage the latest technologies and focus
smart investment to ensure truly sustainable development that facilitates economic growth.”
The UAE has ambitious plans to rapidly increase its clean energy resources. The UAE was the first
country in the region to sign and ratify the Paris Agreement. Its Nationally Determined Contribution
(NDC) also makes it the first country in the region to c ommit to an economy-wide reduction in
greenhouse gas emissions by 2030.
The UAE’s second NDC includes an emissions reduction of 23.5 percent compared to business as
usual for the year 2030. The enhanced target is expected to translate into an absolute emissions
reduction of about 70 million tons.
The UAE is committed to working with its partner countries in the region and around the world to
ensure that COP26 is both a political and a practical success, because just as with COVID-19, no
country is safe from climate change until everyone is safe.
The group statement issued at the end of the dialogue highlighted the participants’ collective efforts
to accelerating climate action, stating “we will work together to ensure the success of the Paris
Agreement and will cooperate with our global partners to strengthen climate ambition”.
It went on to say that “we are committed to reducing emissions by 2030 and working collectively to
help the region adapt to the serious impacts of climate change, to collaborating on mobilizing
investment in a new energy economy”.
The following countries are signatories to the statement from the UAE Regional Climate Dialogue:
UAE, Oman, Kuwait, Bahrain, Qatar, Egypt, Jordan, Morocco, Iraq, Sudan and the US.
COP26 President-Designate Alok Sharma said: “We all need to act with urgency to address climate
change. Which is why I welcome the commitment today from our partners across the Middle East,
at the UAE Regional Climate Dialogue, to accelerate climate action.
“There are huge investment opportunities in the transition to renewable energy – to grow our
economies, create jobs and reduce the risk of climate disaster.”

“Ahead of COP26, I urge countries to follow this commitment with net zero targets and furthering
ambition in this crucial decade to 2030.”
The dialogue covered core themes, such as stepping up the deployment of renewable energy,
exploring the potential of new zero-carbon energy sources, maximizing the impact of mitigation
technologies, including investments in new and emerging innovative solutions, as well as carbon
capture, and reducing the carbon emission intensity of hydrocarbon fuels.
The conversation focused on the need to ramp up adaptation efforts to reduce the impacts of
accelerating climate change, as well as on trends that are of particular concern to the region,
including food and water security, combating desertification, and environmental conservation.

Oman:OQ sells its stake in Indian Bharat oil refinery
Oman Observer + NewBase
OQ, the Sultanate’s integrated global energy group, announced on Thursday that it had inked a key
agreement effectively formalising the sale of its minority stake in Bharat Oman Refineries Limited
(BORL), a major refinery located at Bina in the central Indian state of Madhya Pradesh.
The buyer is Bharat Petroleum Corporation Limited (BPCL), the second largest oil marketing
company in India.
“To help drive our businesses towards creating better value from our local and international
investment portfolio, we signed a Share Purchase Agreement #SPA with Bharat Petroleum
Corporation Limited @BPCLimited to sell our 36.62 per cent share in Bharat Oman Refineries
Limited (BORL)’’, OQ stated in a tweet on Thursday.
In a regulatory filing in February, BPCL had revealed the deal was worth Rs 2,399.26 crore (approx.
RO 125 million). BORL was incorporated in 1994 as a public limited company with equal equity
participation of Bharat Petroleum Corporation Limited and OQ (formerly known as Oman Oil
Company).
Since March 2020, BPCL and OQ have been holding 63.4 per cent and OQ 36.6 per cent equity
stakes respectively in the company owning the 7.8 million tonnes per annum capacity refinery. A
minor stake was also held by the local government of Madhya Pradesh through compulsorily
convertible warrants.
Following the transaction, BORL has become a wholly owned subsidiary of BPCL. N Vijayagopal,
Director (Finance) of BPCL, commented: “With the acquisition of OQ’s entire stake in BORL, BPCL
will establish control over BORL. This is expected to bring immense advantages to both the
companies in terms of synergies and optimisation of returns and will facilitate any future expansion
or diversification in Bina.”
The stake acquisition comes as part of a consolidation exercise ahead of the Indian government’s
plans to privatise BPCL by selling its stake to a strategic player. Local Indian media cited the
government as affirming that it is hopeful about completing the privatisation of BPCL in the first half
of the next financial year.

Global LNG Demand Jumps the Most Since Pandemic Dashed Trade
Bloomberg - Stephen Stapczynski
Liquefied natural gas deliveries expanded the most in a year as Asia and Europe refilled inventories
drained over the winter, and as pandemic-ravaged economies slowly begin to reopen.
Imports jumped 5.8% in March from
a year earlier, the biggest increase
since March 2020, ship-tracking
data compiled by Bloomberg
showed. Demand for the fuel used
in heating and power generation
had been steadily growing before
Covid-19, as nations shift away
from coal-fired power over climate
concerns.
While European imports rebounded
as dwindling stockpiles and strong
spot prices attracted cargoes from
U.S. export projects, Asian importers anchored the growth. Chinese shipments surged more than
30% in March amid an effort by the nation’s new pipeline operator to open terminals to gas
distributors. Supplies to Bangladesh and Pakistan also rose on the back of spot buying.
Demand Growth is Back
LNG imports jumped the most in a year as buyers refilled inventories

LNG imports into western Europe in March reached the highest levels since record volumes
delivered in December 2019. Supplies from the U.S. made up nearly 30% of shipments. Global
exports of the fuel in March rose 4.2% from year-ago levels.
American Gas
U.S. LNG exports have surged to rival the world's top suppliers
Output from the U.S. surged to a record high as projects ramped up production, while exports from
Algeria, Oman and Egypt also expanded.

Russian gas exports to Europe surge 30% in 2021
RT + NewBase
as harsh winter forces foreign consumers to boost energy purchases Russian state-run energy giant
Gazprom increased shipments of natural gas to Europe by 30.7% in the first quarter of the current
year, preliminary data shows.
The impressive year-on-year surge, to nearly 53 billion cubic meters, is reportedly due to the cold
(in European terms) winter season. In March, the shipments totaled 18.2 billion cubic meters,
reaching an all-time high, the company said.
Paris asks Berlin to suspend Nord Stream 2, Gazprom reveals France has increased its own
purchases of Russian gas by almost 50%
Germany, the biggest importer of Russian gas, nearly tripled its purchases in the first three months
of 2021. Most of supplies were reportedly delivered via the Nord Stream gas pipeline, which runs
under the Baltic Sea from Russia directly to Germany, bypassing the neighboring states.
Exports to Serbia saw a significant boost of 71.3%, while sales to Bulgaria and Greece surged
52.4% and 23.4% respectively once the Turkish Stream gas pipeline became operational.
Romania, which has repeatedly spoken of its energy self-sufficiency, increased purchases of
Russian gas by an enormous 90%. The supplies are carried out through Ukraine and Moldova, a
much more expensive method than the possible delivery via the Turkish Stream.
Gazprom’s exports to Turkey more than doubled in the first quarter of 2021. A surge of 106.6% left
the company the country’s number one energy supplier, despite diversification efforts undertaken
by Ankara. So far, energy imports from Azerbaijan have failed to squeeze Russian gas from the
Turkish market.
In 2020, Gazprom cut gas exports to 179.3 billion cubic meters, as the Covid-19 pandemic had a
high negative impact on demand for energy among international consumers.

U.S. residential heating oil prices averaged 16% lower than last
winter but ended higher..: U.S. Energy Information Administration, State Heating Oil and Propane Program
According to the U.S. Energy Information Administration’s (EIA) State Heating Oil and Propane
Program (HOPU), the price of residential heating oil averaged $2.86/gal in the United States as of
March 29, which is 44 cents/gal higher than at the same time last year.
U.S. average residential heating oil prices increased by more than 73 cents per gallon (gal), or 35%,
during the 2020–2021 heating season (October 1–March 31). On average, prices were almost 15%
lower than last season.
Although the increase in residential heating oil prices during the season was the largest on a
percentage basis since the 2007–2008 season, prices were almost 15% lower than last season on
average. The recent increase in prices is primarily a result of higher crude oil prices and lower
distillate inventory levels.
U.S. prices for petroleum products, such as heating oil and propane, tend to follow changes in Brent
crude oil spot prices, the most widely used global benchmark crude oil price. The monthly Brent
crude oil spot price has been increasing since October 2020, and EIA expects crude oil prices to
continue rising through April because of lower OPEC production.
Last winter, Brent crude oil prices averaged $57 per barrel, but they have since increased to about
$63 per barrel for the week ending March 26, 2021.
Distillate heating oil is the primary home heating fuel in 4.4% of U.S. homes and tends to be more
common in the Northeast, according to the U.S. Census Bureau’s 2019 American Community
Survey.

More than half of the homes in Maine and at least 30% of the homes in New Hampshire, Vermont,
Connecticut, and Alaska use heating oil as their primary heating fuel.
Source: U.S. Energy Information Administration, based on U.S. Census Bureau American Community Survey 2019
Although distillate fuel oil inventories saw typical seasonal withdrawals for winter home heating
demand, they remain well above their levels from last year and within the recent five-year average
range. As of March 26, total distillate fuel oil inventories in the Northeast (PADD 1A and 1B), where
most heating oil is consumed, was 32.7 million barrels, 47% higher than at the same time last year.
EIA’s Heating Oil and Propane Update is published as part of the State Heating Oil and Propane
Program (SHOPP), a joint effort between EIA and several state energy offices to collect state-level
residential heating oil and propane price data for October through March in states where heating oil
and propane use is common.
SHOPP collects residential heating oil prices for 21 states and the District of Columbia and provides
wholesale heating oil prices for 25 states. EIA publishes weekly SHOPP price data each Wednesday
at 1:00 p.m. Eastern Time on the Winter Heating Fuels and Heating Oil and Propane Update web
pages.

NewBase April 05-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices fall after prior gains driven by OPEC+ move
Reuters + NewBase
Oil prices slipped on Monday, paring strong gains made in the previous session that was driven by
the decision by OPEC+ to gradually ease some of its production cuts between May and July.
Brent crude futures for June fell 127 cents, or 1.96%, to $63.59 a barrel by 0915 GMT while U.S.
West Texas Intermediate crude for May was at $60.31 a barrel, down 114 cents, or 1.86%.
Both contracts settled up more than $2 a barrel on Thursday as investors viewed the OPEC+
decision as an affirmation of demand-led recovery, and optimism was boosted by U.S. President
Joe Biden’s $2 trillion infrastructure spending plan.
Murban Crude Oil Future for June fell $1.29, or 2.066%, to $62.58 a barrel by 08:22 GMT
Oil price special
coverage

The Organization of the Petroleum Exporting Countries, Russia and their allies, a group known as
OPEC+, agreed to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000
bpd in June and further 400,000 bpd or so in July.
The decision came after the new U.S. administration called on Saudi Arabia, the world’s top oil
exporter, to keep energy affordable for consumers despite demand concerns as parts of Europe
remained under lockdown while Japan could expand emergency measures as needed to contain a
new wave of coronavirus infections.
Under Thursday’s agreement, OPEC+ cuts would be just above 6.5 million bpd from May, compared
with slightly below 7 million bpd in April.
In addition, Saudi Arabia said it was phasing out its extra voluntary cuts by July, a move that will
add 1 million bpd. Following that, Saudi Aramco raised official selling prices (OSPs) for May to Asia
on Sunday.
“The raised output was followed by an increase in the OSP, which I think in tandem shows the
confidence the bloc has in demand recovery,” Singapore-based OCBC economist Howie Lee said.
Goldman Sachs analysts said the decision pointed to a cautious and orderly ramp-up from OPEC+,
allowing for a tight oil market. The bank expects a large rebound in oil demand this summer that will
require an additional 2 million bpd of OPEC+ production from July to October.
This week, investors are focused on indirect talks in Vienna between Iran and the United States as
part of broader negotiations to revive the 2015 nuclear deal between Tehran and global powers.
Ahead of the talks, Iran’s foreign ministry said it wanted the United States to lift all sanctions and
rejected any “step-by-step” easing of restrictions.
Eurasia analyst Henry Rome said he expected U.S. sanctions, including restrictions on the sale of
Iranian oil, to be lifted only after these talks are completed and Iran returns to compliance.
Iran has already ramped up exports to world’s largest crude importer China to about 1 million bpd
in March despite sanctions, Reuters reported last month.
ING analysts said global oil inventories are expected to fall even as Iranian supplies are assumed
to reach 3 million bpd in fourth quarter.
OPEC+ decides to gradually curb output cuts as demand concerns persist
Sam Meredith@SMEREDITH19
A group consisting of some of the world’s most powerful oil producers on Thursday decided to
gradually curb existing output cuts beginning next month. Starting in May an additional 350,000
barrels per day will be added to production, with another 350,000 coming on the market in June.
Come July output will be increased by 450,000 barrels per day.
The OPEC+ alliance is currently cutting by just over 7 million barrels per day in an attempt to prop
up prices and reduce oversupply. OPEC kingpin Saudi Arabia has voluntarily added an additional
1 million barrels per day to those cuts. Saudi Arabia said that it will begin curbing its voluntary output
cuts in May.
KEY POINTS
 OPEC and non-OPEC partners, a group sometimes referred to as OPEC+, met on Thursday
to discuss the group’s production policy going forward.
 The alliance decided to gradually curb production cuts beginning in May.

 The OPEC+ alliance is currently cutting by just over 7 million barrels per day in an attempt to
prop up prices and reduce oversupply. OPEC kingpin Saudi Arabia has voluntarily added an
additional 1 million barrels per day to those cuts.
 The ongoing coronavirus crisis continues to cloud the outlook for the remainder of the year,
and analysts expect this to reaffirm Saudi Arabia’s caution about the global economic
recovery.
The meeting comes shortly after the Suez Canal reopened to traffic and as the coronavirus
continues to spread worldwide, with French President Emmanuel Macron ordering the country into
its third national lockdown to alleviate some of the pressure on hospitals.
The ongoing coronavirus crisis continues to cloud the demand outlook and analysts expect this to
reaffirm Saudi Arabia’s caution about the global economic recovery.
Ahead of the meeting, analysts thought the group would keep production levels consistent.
Analysts at Eurasia Group noted that the last month in global oil markets “featured a significant level
of volatility” and a sell-off that brought Brent crude futures down to $62 a barrel from $70, before
stabilizing around $64 in recent days.
“The Suez Canal incident probably helped many oil producers, as it prevented a further slide in
prices,” analysts at Eurasia Group said in a research note published Wednesday.
“Once again, it is far from clear that a sustainable recovery would justify a strong cycle of OPEC+
tapering to be followed each month. Saudi Arabia’s caution about the global economic recovery was
in many respects warranted,” they added. International benchmark Brent crude futures gained
$2.38, or 3.8%, to trade at $65.08 per barrel.
“I think if you look into the second half of the year, with demand potentially increasing by 4 to 5
million barrels as we get into 3Q and 4Q, I think this is really when the tightness in the oil market is
going to really reappear again,” Neil Beveridge, a senior oil and gas analyst at Bernstein, told
CNBC’s “Capital Connection” on Thursday.
“At the moment it feels too early to raise production but as we go into the second half, there’s a lot
of pent-up demand and OPEC is going to need to put oil in the market if they are going to control
pricing.”
U.S.-Saudi call
U.S. Energy Secretary Jennifer Granholm said via Twitter on Thursday that she spoke with Saudi
Arabia’s Energy Minister Prince Abdulaziz bin Salman to reaffirm “the importance of international
cooperation to ensure affordable and reliable sources of energy for consumers.”
It was thought to be the first call to Riyadh from a U.S. official ahead of an OPEC meeting since
President Joe Biden took office.
OPEC+ initially agreed to cut oil production by a record of 9.7 million barrels per day last year,
before easing cuts to 7.7 million and eventually 7.2 million from January.
Saudi Arabia has since taken on cuts of 1 million from the beginning of February through March,
although these are due to expire unless further measures are announced on April 1.

NewBase Special Coverage
The Energy world – April- 05- -2021
U.S. LNG export bonanza reshapes energy map in Asia
Reuters - Aaron Sheldrick
U.S. exports of liquefied natural gas (LNG) to China, Japan and South Korea, the biggest importers
of the fuel, have surged to record highs in recent months as the heavily industrialised region
recovers from the COVID-19 pandemic, Eikon trade data shows.
As with the ramp-up of U.S. oil exports that forced heavyweights like Saudi Arabia to find other
buyers, what was dubbed Freedom Gas by the administration of President Donald Trump is also
changing global energy flows and quietly gaining a stranglehold on key markets in Asia.
Such is the speed of growth of imports into Japan, the U.S. is running neck and neck this year with
Qatar - a long-term key exporter to Japanese utilities - as a major supplier to the world’s third-largest
economy, official data showed this week. That comes despite U.S. LNG being nearly 40% more
expensive than Qatar gas on a per heating unit basis.

And more gas is on the way. Natural gas flows to export terminals in the U.S. where gas is chilled
to -160 C (-260 F) before shipment overseas totalled 11.8 billion cubic feet (334 million cubic metres)
on Wednesday, according to one source.
That’s a daily record and up from the daily average of 10.8 billion cubic feet recorded in March.LNG
shipments from the U.S. to Japan, China and South Korea totalled 3.2 million tonnes in February,
almost two and a half times the highest monthly levels before the recent surge.

“The U.S. has got more export trains running so it is exporting more and demand has been relatively
strong in northeast Asia,” said one long-time gas industry participant.
Record cold temperatures and snow this winter pushed demand for heating through the roof and
sent frenzied buyers into the spot market to seek cargoes. While March shipments of U.S. LNG into
Asia have tailed off due to warmer weather they are still well above typical levels for the month,
according to the Eikon data.
The export bonanza being experienced by the U.S. caps the completion of the first generation of
export terminals that the shale gas revolution allowed. But the next round of projects being
developed will face tough competition from Qatar, which has announced plans for a massive
expansion of export capacity and is enticing buyers with sweet deals.
A recent 2 million tonne annual supply deal with China’s Sinopec was priced at 10.19% of prevailing
Brent crude prices, one of the lowest levels on record, according to the industry participant. “I think
American projects are now going to have to review their costs. The new projects will not be able to
compete with the Qataris,” he said.

NewBase Energy News 05 April 2021 - Issue No. 1422 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

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