Adnoc in talks to split offshore concession

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NewBase August 09 2017 - Issue No. 1060 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:Adnoc in partnership talks for offshore oil concession
Gulf News - Fareed Rahman, Senior Reporter
Existing Adma-Opco concession will be split into two or more concessions,
with new terms, to unlock greater value
The Abu Dhabi National Oil Company (ADNOC) announced it is in advanced discussions with
more than a dozen potential partners who have expressed a significant interest in the offshore
concession, currently operated by the Abu Dhabi Marine Operating Company (ADMA-OPCO) that
expires next March. The potential partners are a mix of existing concession holders in ADNOC’s
offshore fields and new participants.

Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) said on Monday it is in advanced
discussions with more than a dozen potential partners in awarding an offshore oil concession,
currently operated by the Abu Dhabi Marine Operating Company (Adma-Opco), that expires next
March.
The existing Adma-Opco concession will be split into two, or more, concessions with new terms to
unlock greater value and increase partnership opportunities, Adnoc said in a statement. The
company said potential partners are a mix of existing concession holders in Adnoc’s offshore
fields and new participants.
Adnoc, on behalf of the Abu Dhabi government, will retain a 60 per cent shareholding in the new
concession areas while the remaining 40 per cent will be given to different selected firms.
The existing concession area operated by Adma-Opco produces around 700,000 barrels a day of
oil and is expected to have a production capacity of about 1.0 million barrels per day by 2021.
Adnoc further said it is planning to boost oil production capacity to 3.5 million barrels per day in
2018.
The current shareholders in Adma-Opco are BP (14.67 per cent), Total (13.33 per cent) and
Jodco (Japan Oil Development Company — 12 per cent). The concession will comprise a mix of
the Lower Zakum field, Umm Shaif, Nasr, Umm Lulu and Satah Al Razboot fields.
“We have received great interest in the concessions from both existing and potential new partners.
Discussions are progressing well and companies have been drawn by our stable investment
environment and Adnoc’s reliability as a partner, as well as the attractive and sustainable returns
that will be generated,” Dr Sultan Ahmad Al Jaber, UAE Minister of State and Group CEO of
Adnoc, said in a statement.
As part of Adnoc’s new partnership approach, we look forward to working with partners who will
bring new and innovative thinking to the table, he said. “Partners who can demonstrate tangible
value-add to our operations through technology, expertise, long term capital and market access,

as well as a shared commitment to drive operational performance and efficiency to deliver smart
growth and strong financial returns,” he added.
Russian energy company Lukoil, which is looking to expand its operations in the Middle East, is
keen to participate in Abu Dhabi offshore concession, the company’s vice-president in the region,
Gati Al Jebouri, told Gulf News in a recent interview. Japan Oil Development Company and Total
also have expressed their intentions to renew offshore concession.
Adnoc earlier this year finalised a mix of existing and new partners in onshore oil concession
including firms from France, UK, Japan, South Korea and China.
An analyst who did not wish to be named said there will not be any surprise announcements in
awarding offshore concession. “The UAE will want to send a strong signal of business and it will
be whoever they can get the best terms from, which probably means the Chinese at the moment,”
he said.
The Abu Dhabi oil giant is also looking to float some of its services businesses and enter tie-ups
with global investors to help it create new revenue streams and secure more market access.

Egypt: Acwa Power to build three solar PV projects in Egypt
Acwa Power, a major developer and operator of power and desalinated water plants, has been
awarded three solar photovoltaic power projects by Egypt. The projects to be built in Benban are
under Egypt's Round 2 of the Feed-in-Tariff (FiT) programme, said a statement.
Acwa Power will develop,
finance, build, own and
operate the three projects
with an aggregate capacity
of 165.5 MW and total
investment value of $190
million.
Gamal Abd-Al Rehem,
chairman of the Egyptian
Electricity Transmission
Company (EETC), and
Mohammad Abunayyan,
chairman of Acwa Power,
signed the power purchase
agreement in the presence
of Egypt's Prime Minister Dr
Sherif Ismail, Saudi Arabia's ambassador Ahmed Al Qattan, Electricity and Renewable Energy
Minister Dr Mohamed Shaker and other ministry officials.
The projects, which are located in the Aswan Province in Benban, will have capacity to generate
67.5 MW, 70 MW and 28 MW individually. The projects are expected to achieve financial close
and commence construction by the fourth quarter of this year. Once the projects start operations
in 2018, they will power 80,000 houses while saving around 156,000 tons of carbon dioxide a
year, said the statement.
The Government of Egypt and the Ministry of Electricity and Renewable Energy (MoERE) have
set a target of achieving 20 per cent of Egypt's energy generation from renewable sources by
2022. The feed-in-tariff programme aims to secure an initial generation of 2,000 MW of solar
capacity and 2,000 MW of wind capacity.
Commenting on the signing, Paddy Padmanathan, president and CEO of Acwa Power, said: “We
are proud to partner with the Egyptian Government as the government pursues an ambitious goal
to ensure reliable lowest-cost electricity generation capacity to increase quality of life of the people
of Egypt and support continuous industrial expansion of the country, without compromising on its
commitment to protect the planet by reducing carbon emission through deployment of increasing
levels of renewable energy in the generation portfolio mix.”
ACWA Power is partnering with Tawakol and Hassan Allam Holding, two reputable local
companies in Egypt, on the project. - TradeArabia News Service

Oman: GlassPoint Solar achieves safety milestone at PDO plant
GlassPoint Solar, a leading supplier of solar power to the oil and gas industry, has celebrated the
successful completion of one million man-hours without a lost time injury (LTI) on the Miraah solar
plant that it is building for Petroleum Development Oman (PDO) in the south of Oman.
Miraah, a 1,021-MW solar thermal project, will be one of the world’s largest solar plants, delivering
over one gigawatt of peak thermal energy.
This achievement is a result of GlassPoint’s
unrelenting commitment to safety and the
adoption of rigorous oil and gas industry best
practices, the company said. It is also a
reflection of the excellent performance of
employees across the company and its
contractors, it added.
“On behalf of GlassPoint, I would like to thank
everyone involved in this ground-breaking
project for their commitment to reaching this
important safety milestone. Safety is at the
heart of GlassPoint and all its operations around the world. Our solar thermal technology was
designed from the ground up to minimise risks at each stage of construction. One million hours
with zero LTIs is a significant achievement as Miraah advances towards the generation of first
steam this year,” said Ben Bierman, chief operating officer of GlassPoint.
He added: “In planning Miraah, we applied both GlassPoint’s own rigorous standards, as well as
those demanded by PDO. With that, we developed innovative solutions to safeguard the health
and safety of our workforce, especially in challenging desert conditions.
Careful engineering, for example, reduces overhead lifting and component fabrication is
completed without mechanical aids and with no hazardous or flammable liquids. Additionally,
much of the solar collectors are assembled and installed at night, where we’ve established a
mobile factory on site within the greenhouse structure, to mitigate the effects of extreme
temperatures on the construction crew.”
The Miraah project will be one of the world’s largest solar plants, delivering over one gigawatt of
peak thermal energy. Once complete, the facility will generate 6,000 tonnes of solar steam per
day, delivering a significant portion of the steam requirements at PDO’s Amal oilfield.
Once complete, the Miraah project will deliver the largest peak energy output of any solar plant in
the world. The scale of this landmark project underscores the massive market for deploying solar
in the oil and gas industry, the company said.
The 1 GW project will reduce the amount of natural gas used to generate steam for thermal enhanced oil
recovery (EOR). In thermal EOR, steam is injected into an oil reservoir to heat the oil, making it easier to
pump to the surface. Miraah will generate an average of 6,000 tons of solar steam each day, providing a
substantial portion of the steam required at the Amal oilfield operated by PDO.
The mega project dwarfs all previous solar EOR installations and is more than 100 times larger than the
pilot project built by GlassPoint for PDO in 2012.

Pakistan Energy Explorers Search drill Areas as Fields Dry
BLOOMBERG -By Faseeh Mangi and Ismail Dilawar
Pakistan’s state-owned companies are spending record amounts on energy exploration, including
in areas more known for separatist insurgency, as old fields start to dry up.
While global producers negotiate on further production cuts, Oil and Gas Development Co., the
nation’s largest explorer, has more than doubled seismic activity, and Pakistan Petroleum Ltd. has
almost doubled wells drilled in the past two years as it becomes cheaper after the global crude
plunge.
“In exploration, there is absolutely no let up,” Zahid Mir, chief executive officer at OGDC, said by
email on July 27. “Cost of services has come down. We see an opportunity here to do things a bit
cheaply.”
The need for greater energy security and to end chronic shortages is key to the re-election
prospects of Nawaz Sharif’s ruling party ahead of the national poll next year. Sharif stepped down
as prime minister after the Supreme Court last month ordered his disqualification from office with a
caretaker leader set up until his brother, Shehbaz, takes the helm.
Power Shortages
As South Asia’s second-largest economy imports most of its fuel and its oil refining sector
depends mainly on overseas crude supplies, any drop in local crude output will further stress a
current account deficit that has doubled to $12 billion in the year ended June. Pakistan spent $11
billion, or a fifth of the total import bill in the past fiscal year, on petroleum products.

Despite a reduction of power shortages since Sharif came to power in 2013, Pakistan continues to
deal with daily blackouts. The government is trying to bolster its generation capacity, with China
financing the construction of power plants fueled by coal or imported liquefied natural gas.
Pakistan has also ramped up oil production by about 32,000 barrels-a-day, that is about a third of
the nation’s total output, and also added 944 million cubic feet a day of gas in the past four years,
according to petroleum minister in the Sharif government and interim Prime Minister, Shahid
Khaqan Abbasi. Most of Pakistan’s oil and gas fields are old and the new findings are replacing
natural declines, he said.
That need is becoming critical as Pakistan hasn’t made a discovery as large as 1 trillion cubic feet
of gas in decades. Sui, the nation’s largest gas field in the restive province of Balochistan, was
discovered in 1955. At that time its reserves were 8 trillion cubic feet, which was third largest in
the world, Khalid Zaki, director at the Petroleum Institute of Pakistan said in an interview in
Karachi.
Investment by the national oil companies is likely to be sustained but this will not be matched by
international counterparts, which are increasingly choosing to disengage from Pakistan in favor of
higher-priority assets elsewhere, according to BMI Research. Pakistan ranks behind smaller,
emerging markets such as Timor-Leste, Cambodia and Papua New Guinea due to severe safety
and logistical challenges, a poor legal environment, unfavorable licensing terms and inefficient
bureaucracy, BMI Research said in a note on July 28.

Premier Oil Plc sold its business to Al-Haj Energy Ltd. this year while Tullow Oil Plc offloaded
stakes in many blocks to Mari Petroleum Ltd. last month but both are small players in terms of
production.
BMI Research forecast Pakistan’s gas output to drop 1 percent annually for the next decade but
concedes there are upside risks to the estimate due to the active exploration projects pipeline,
which is one of the most robust in Asia-Pacific, according to the BMI note. Gas makes the largest
part of the nation’s energy mix.
Pakistan’s exploration companies have also become more aggressive with higher gas prices
offered by the government for new discoveries. Those have almost doubled to $6 per million
British thermal units in 2014 from $2.4-$3.7 in 2001, said Wajid Rizvi, energy analyst at Fortune
Securities Ltd.
“Activity has to go up substantially,” Syed Wamiq Bokhari, chief executive officer at Pakistan
Petroleum, the nation’s biggest gas producer, said in an interview in Karachi. “When you are living
off gas fields from the 50s and 60s you are at the trailing end. You can’t be happy whipping a
dead horse.”
‘Wild Cat’ Areas
Bokhari plans to enter “wild cat areas” in Balochistan now that the province has become more
accessible after the military pushed back against a long-running militant and separatist
insurgency. The impetus came after China announced two years ago its intention to build a
trading route through Pakistan to the Arabian Sea, using Balochistan’s port in Gwadar as part of
its vast ‘One Belt, One Road’ project. Pakistan Petroleum plans to drill 12 new wells in the region
by end of the next fiscal year.
So far Pakistan Petroleum has
managed to stem a three-year decline
in gas production. Drilling costs have
fallen to $2,600 per square foot from
$3,600, which is helping boost activity,
according to Bokhari.
The exploration efforts may help lift the
nation’s gas output that has been
stagnant around 4 billion cubic feet a
day for eight years, according to
Karachi-based Topline Securities Ltd.
Oil output rose 3 percent to about
88,000 barrels a day in the fiscal year
ended June.
“Generally the overall dynamics are
really strong for E&P companies
especially looking at the overall output
which is expected to shore up,” said Fortune Securities’ Rizvi. There is “massive upside. Even
with current market dynamics, taking a stable $50 oil price for year started July, I still think that
with additional flows and the overall pricing theme that is being played out, they really seem
attractive.”

Chinese Gas Sellers Sidestep State Giants to Exploit Demand Surge
Bloomberg News
China’s independent energy firms are seeking to circumvent its state-backed giants as they cash
in on swelling natural gas use, buoyed by President Xi Jinping’s drive for cleaner fuels and nimbler
companies.
New import facilities developed by firms including Guanghui Energy Co. and ENN Group offer
direct access to cheap liquefied natural gas and cut their reliance on supply and infrastructure
controlled by the the country’s national oil companies. That may help new players tap China’s
booming gas demand, up 15 percent in the first half of the year.
“The key thing about having your own terminal is that you can take advantage of potentially lower
pricing in the market,” said Neil Beveridge, an analyst at Sanford C. Bernstein & Co. in Hong
Kong. “Also, it’s very difficult to get supply through the infrastructure of the Chinese oil majors
because the access rules and regulations are not terribly transparent and not terribly well
enforced.”
Smaller gas distributors and importers have found an opening as Xi’s government seeks
alternatives to coal and encourages private competition in the energy sector. They’re poised to
follow a similar trend in the oil industry, where independent refiners known as “teapots” have been
allowed greater freedom to import crude, helping push China ahead of the U.S. this year as the
world’s biggest importer.
Guanghuai Energy last month received the second LNG cargo at its Qidong terminal, about 100
kilometers (62 miles) north of Shanghai. At least three more terminals are under construction or
proposed including a port by ENN Group that’s scheduled to start next year. Guangzhou

Development Group Inc. has proposed a new import terminal, as has China Huadian Corp., one of
the nation’s biggest power generators, according to Bloomberg New Energy Finance.
New private ports enhance the bargaining power for distributors, which will lower downstream
sales prices and boost China’s consumption, ENN Energy Holdings Ltd., the listed unit of ENN
Group, said in an emailed response to questions. It declined to comment specifically on the
Zhoushan LNG terminal owned by its parent, which didn’t respond to a separate request for
comment.
Xinjiang-based Guanghui, which was one of the first non-state companies to receive a license to
import crude, plans to allow third parties to deliver and store LNG at the Qidong site, chief
engineer Xue Wenting said last month. The terminal’s annual capacity will be expanded to 3
million metric tons by 2019 from 650,000 tons now, he said.
Jovo Energy Co., which was the first private Chinese company to begin importing LNG, began
operating its Dongguan facility in Guangdong in 2012. The company also stores and sells liquefied
petroleum gas and has an oil and chemicals business, according to its website.
China, which is forecast to more than double LNG purchases by 2022, has more than a dozen
import terminals owned by its three state energy giants, which buy most of their cargoes on long-
term contracts. But given the current global gas glut, new buyers can pick up cheaper shipments
on the spot market, where analysts at SCI International estimate costs are about 50 percent less
than average rates under the country’s existing term contracts.
“Those companies can get cheaper LNG prices from the spot market on a more flexible basis and
they can meet demand from their widespread distribution networks,” said Maggie Kuang, an
analyst with BNEF in Singapore.

China’s LNG demand will expand by 5 million to 6 million tons annually over the next few years
and private investors may account for about 20 percent of that growth, according to Michal
Meidan, an analyst with Energy Aspects Ltd. in London. Bernstein’s Beveridge estimates that
share to be less than 10 percent of the 60 million tons of LNG he forecasts the country will be
importing annually by the end of the decade.
China’s national oil companies account for about 92 percent of the country’s long-term contracts
and “still firmly dominate the LNG import market,” said BNEF analyst Nannan Kou. While
Guanghui Energy has been buying spot LNG, it’s seeking to sign long-term contracts with
suppliers, including Malaysia’s Petroliam Nasional Bhd, chief engineer Xue said.
The Chinese government is encouraging private capital to help construct LNG receiving facilities
and pipelines, according to guidelines published last month by the country’s National
Development and Reform Commission. China’s top economic planner also said LNG import
capacity and natural gas pipeline length will more than double in the 10 years to 2025.
Opening Up
“This is part of the government’s efforts to open up the sector to non-state actors and increase
efficiencies through greater competition,” said Meidan at Energy Aspects.
China National Offshore Oil Corp. and China National Petroleum Corp., the country’s first and
second-largest LNG importers, didn’t respond to calls seeking comment. A spokesman for China
Petrochemical Corp., known as Sinopec Group, said Monday he couldn’t immediately respond to
questions.
LNG imports in June hit the highest on record for that month, in line with the country’s booming
demand, offering a boost for gas distributors. China Gas Holdings Ltd. has gained 85 percent this
year while ENN Energy has climbed 69 percent. That compares with a 27 percent gain for the
benchmark Hong Kong Hang Seng Index.
The Chinese government has set a goal of getting as much as 10 percent of its energy from gas
by 2020 and 15 percent by 2030, up from 6 percent in 2015. To meet these goals, demand will
grow by an average of 15 percent annually between 2016 and 2020, according to Macquarie
Group Ltd.
Enough Supply?
The country’s natural gas production, which is dominated by CNPC and Sinopec Group, rose 8
percent in the first half of 2017 compared to the same period a year ago. Meanwhile, imports have
jumped 21 percent in the first seven months of the year, according to data released Tuesday.
Fast-growing supply may be needed, as Sinopec Group has already flagged a possible “big”
increase in gas demand this coming winter compared to last year, particularly in the country’s
north, Shanghai Securities News reported Tuesday, citing a company meeting.
Even after independent gas distributors build LNG facilities, they’re often still reliant on pipeline
networks operated by the state-backed giants, according to Bernstein’s Beveridge. “It’s still all
about access with the majors” for an independent distributor, he said. “There are still more
regulatory rules that are needed, so these companies are very much pioneers.”

NewBase August 09 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil edges higher above $52 before U.S. inventory report
Reuters + NewBase
Oil rose further above $52 a barrel on Wednesday ahead of a U.S. inventory report expected to
show crude stocks dropped for a sixth week, although gains were capped by doubts about
compliance with OPEC-led supply cuts.
Crude inventories last week fell by 7.8 million barrels, more than expected, but gasoline stocks
rose unexpectedly, data from the American Petroleum Institute (API) showed on Tuesday before
the release of Wednesday's official numbers.
Brent crude, the global benchmark, was up 34 cents at $52.48 at 1159 GMT, after two days of
decline. U.S. West Texas Intermediate (WTI) crude added 30 cents to $49.47.
Wednesday's focus will be on the U.S. government report at 1430 GMT to see whether it confirms
the figures from the API, an industry group. Analysts expect crude stocks to have fallen by 2.7
million barrels and gasoline by 1.5 million barrels. [EIA/S]
"They are also likely to show a significant inventory reduction due to lower imports,"
Commerzbank's Carsten Fritsch said of the Energy Information Administration report.
"It seems to be toppish and prices are struggling to rise on bullish news," he added.
A further drop in U.S. crude stocks would raise hopes that an OPEC-led effort to wipe out a three-
year, price-sapping supply glut is working.
Oil price special
coverage

The Organization of the Petroleum Exporting Countries, Russia and other producers are cutting
output by about 1.8 million barrels per day (bpd) from Jan. 1, 2017 until March 2018.
The deal has supported prices but an output recovery in Libya and Nigeria, OPEC members
exempt from the cut, has complicated the effort. U.S. shale oil drillers have also ramped up
production.
OPEC officials met on Monday and Tuesday in Abu Dhabi in an effort to boost producers'
adherence to the supply cuts, which has been high on average despite relatively low compliance
by Iraq and the United Arab Emirates.
In a statement after the meeting, OPEC said the conclusions reached would help boost
compliance. Still, it gave little detail and some analysts remained sceptical.
"The statement on the OPEC website following the Abu Dhabi meeting was short on substance,"
Vienna-based JBC Energy said.
Top OPEC exporter Saudi Arabia, keen to get rid of the glut, has shown one of OPEC's highest
rates of compliance and in September will cut crude allocations to customers by at least 520,000
bpd, an industry source said on Tuesday.
Oil Above $49 as Market Weighs Lower Stockpiles, Higher Output
Futures added 0.7 percent in New York after dropping 0.8 percent the previous two sessions. U.S.
inventories slid by 7.8 million barrels last week, the American Petroleum Institute was said to
report Tuesday, while a Bloomberg survey also forecast a decline. The Energy Information
Administration marginally boosted its estimates for American productionin 2017 and 2018.
Prices have fluctuated around $49 a barrel this month as investors weigh rising global supply
against output reductions from the Organization of Petroleum Exporting Countries and its allies.
OPEC said Tuesday that Iraq, the United Arab Emirates and Kazakhstan, which have lagged
behind in their pledged curbs, reaffirmed their commitment to cuts at a meeting in Abu Dhabi.

“The recovery this morning is most likely in anticipation of a sixth inventory decline in crude oil”
when the EIA releases its weekly stockpiles report later Wednesday, said Ole Sloth Hansen, head
of commodity strategy at Saxo Bank A/S in Copenhagen.
West Texas Intermediate for September delivery rose 35 cents to $49.52 a barrel on the New
York Mercantile Exchange at 8:41 a.m. local time. Total volume traded was about 20 percent
below the 100-day average. Prices lost 22 cents to $49.17 on Tuesday.
See also: Shale Drillers Spend Less, Produce More in Glut-Gorging Push
Brent for October settlement advanced 38 cents to $52.52 a barrel on the London-based ICE
Futures Europe exchange, after sliding 23 cents on Tuesday. The global benchmark crude traded
at a premium of $2.85 to October WTI.
U.S. crude output will average 9.35 million barrels a day this year, according to the EIA’s monthly
Short-Term Energy Outlook released Tuesday. That’s up from a July projection of 9.33 million.
Production will average 9.91 million barrels a day next year, up from 9.9 million forecast
previously.
Saudi Arabia to cut crude allocations in Sept by at least 520,000 bpd: Source
State oil company Saudi Aramco will cut crude oil allocations to its customers worldwide in
September by at least 520,000 barrels per day (bpd), an industry source familiar with the matter
told Reuters on Tuesday.
The cuts in allocations are in line with Saudi Arabia's commitments with the OPEC-led supply
reduction pact, under which the top oil exporter is required to cut 486,000 bpd. Saudi Arabia will
cut supplies to most buyers in Asia by up to 10 percent in September, multiple sources with
knowledge of the matter have said.
"The Saudi decision to take an ax to its Asian crude allocations shows it means business (and)
gives credence to its pledge to do 'whatever it takes' to normalize bulging global oil inventories,"
PVM oil analyst, Stephen Brennock, told CNBC on Tuesday.
Brennock argued Asian buyers would soon be forced to become increasingly reliant on producers
in the Atlantic Basin in order to meet their crude oil requirements. He also suggested that Russia
would most likely gain further market share from Saudi Arabia as a result of the Middle Eastern
country's self-imposed cut to crude oil allocations.
"(While) it helps to lift sentiment in the short term, there's no guarantee of long-term price support
as other oil exporters including Russia, the U.S. and Iran rush to fill the shortfall," Brennock said.
Benchmark Brent crude was up around 0.5 percent at $52.63 a barrel by 11.00 a.m. London time.
U.S. light crude was 0.6 percent higher at $49.68.
'Swinging cuts towards Asia'
"The real key here is that they are swinging the cuts more towards Asia," Sam Alderson, analyst at Energy
Aspects, told CNBC on Tuesday. "With the allocation cuts reportedly focused on the lighter grades such as
Arab Light and Arab Extra Light, the impact could have a clearer impact on benchmark grades in the west
as Asian buyers look to spot cargoes out of the Atlantic Basin and U.S. to ease any shortfall," Alderson
added.
The news emerged ahead of a joint OPEC and non-OPEC technical committee meeting in Abu Dhabi on
Tuesday. Officials are expected to discuss ways to bolster compliance among those producers committed
to cut 1.8 million b/d in production. OPEC output had hit a 2017-high in July with exports at record levels.

NewBase Special Coverage
News Agencies News Release August 09 2017
In new trend, U.S. natural gas exports exceeded imports in 3 of
the first 5 months of 2017,,,,,,,, Source: U.S. Energy Information Administration, Natural Gas Monthly
The United States exported more natural gas than it imported in February, April, and May of 2017
according to the latest EIA’s Natural Gas Monthly. The United States has been a net natural gas
importer (on an average annual basis) for nearly 60 years.
Declining net pipeline imports from Canada, growing natural gas pipeline exports to Mexico, and
increasing exports of liquefied natural gas (LNG) are all contributing to the nation’s ongoing shift
toward being a net exporter.
The United States began importing more natural gas than it exported in 1958, when total natural
gas trade volumes were much smaller. In October of that year, the TransCanada pipeline was
completed, allowing Western Canadian natural gas to enter northeastern U.S. markets. Net U.S.
natural gas imports from Canada peaked in 2007, averaging over 10 billion cubic feet per day
(Bcf/d).
More recently these volumes have been declining as domestic natural gas production from shale
gas and tight oil formations has increased and displaced Canadian natural gas. Border crossings

in Idaho and Montana make up the largest portions of natural gas entering the United States from
Canada by pipeline, making up about 25% and 20%, respectively, in 2016.
While the United States remains a net importer of natural gas from Canada, U.S. exports to
eastern Canada have been increasing steadily since 2000, when the Vector pipeline began
service.
The Vector pipeline, with a capacity of 1.3 Bcf/d, originates in Chicago and is currently supplied by
natural gas from western Canada, Texas, Louisiana, and Oklahoma. It delivers natural gas at the
border in St. Clair, Michigan, and into Ontario’s Dawn hub. U.S. natural gas exports from
Michigan, mainly through the Vector pipeline, make up most of the natural gas export volumes by
pipeline to Canada.

Source: U.S. Energy Information Administration, Natural Gas Monthly
Since 2011, several pipeline reversals have contributed to the growing volume of natural gas
delivered into Canada from both the Midwest and Northeast. In March 2017, total U.S. natural gas
exports to Canada were 3.21 Bcf/d, near the monthly record of 3.25 Bcf/d reached in December
2012; U.S. exports declined in both April and May.
Source: U.S. Energy Information Administration, Natural Gas Monthly

Natural gas exports to Mexico from the United States also reached near-record levels in the first
five months of 2017, averaging 4.04 Bcf/d. Since 2010, when U.S. natural gas exports by pipeline
to Mexico averaged 0.91 Bcf/d, these volumes have been steadily increasing, reaching an annual
average of 3.78 Bcf/d in 2016.
This growth in trade with Mexico has been the result of several factors, including growth in U.S.
natural gas production, declines in domestic natural gas production in Mexico, increased use of
natural gas in Mexico for industrial use and in electric power generation, and the
ongoing expansion of the natural gas pipeline network at the United States-Mexico border and
within Mexico.
The transition of the United States from a net importer of natural gas to a net exporter is also
marked by the emergence of liquefied natural gas (LNG) exports from Sabine Pass, Louisiana,
which set a new record of 1.96 Bcf/d in May 2017.
Since U.S. LNG exports from the Lower 48 states began in February 2016, Sabine Pass has
commissioned three liquefaction trains, with the fourth train coming online in the next few months.
The United States still imports LNG from overseas, primarily at Everett, Massachusetts, but these
volumes averaged only 0.20 Bcf/d over the first 5 months of 2017.

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khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 27 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase August 2017 K. Al Awadi

Adnoc in talks to split offshore concession

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Adnoc in talks to split offshore concession