New base 16 october 2021 energy news issue 1463 by khaled al awadi

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NewBase Energy News 16 October No. 1463 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: Dubai Supreme Council of Energy launches Circular
Economy Committee
WAM/ /Rola Alghoul
The Dubai Supreme Council of Energy has launched the Circular Economy Committee to bring
public and private entities together to support the circular economy. The Committee will develop
actionable initiatives to upscale current applications and introduce best international practices in
circular economies.
"The UAE attaches great importance to achieving sustainable and effective use of natural resources
by transitioning to a green economy and increasing the share of clean and renewable energy
sources.
Ahmad Buti Al Muhairbi, Secretary-General of the Dubai Supreme Council of Energy and Chairman
of The UAE Circular Economy Policy identifies the country’s priorities in terms of a circular economy.
Priorities include infrastructure, sustainable transportation, manufacturing, food production and
consumption," Saeed Mohammed Al Tayer, Vice Chairman of the Dubai Supreme Council of
Energy, said.

Al Tayer stated that the Committee aims to encourage investment in the circular economy and
propose viable suggestions that support the upscaling of current applications and best international
practices in this regard. This achieves economic growth while protecting the environment and
ensuring the sustainability of natural resources.
"We aim to develop and launch innovative tools and initiatives in collaboration with our strategic
partners to promote the adoption of the circular economy model across different sectors and ensure
its application according to methodologies that link all effective players.
We also strive to support start-ups and develop the capabilities of entrepreneurs in this vital sector
in addition to encouraging the utilisation of modern technologies capabilities by enhancing the
efficiency of natural resources and promoting sustainable practices to reuse resources, reduce
waste, limit carbon emissions, and build a better future for generations to come," he added.
Ahmad Buti Al Muhairbi, Secretary-General of the Dubai Supreme Council of Energy and Chairman
of the Energy Demand Side Management Executive Committee, chaired the Circular Economy
Committee kick-off meeting.
Members included representatives from Dubai Electricity and Water Authority (DEWA), Dubai
Municipality, Dubai Economy, Dubai Science Park, Emaar Properties, and Diamond Developers.
"We are pleased with the response to suggestions discussed in the first meeting of the Circular
Economy Committee. We already see several excellent examples of circularity that can be scaled
up across Dubai. The Committee discussed the report on the State of Circular Economy that was
reviewed and aligned with the UAE Circular Economy Policy.
The Committee discussed some examples of global best practices, with next steps in developing
initiatives and tools to support further the circular economy across different sectors in Dubai," Al
Muhairbi said.
A circular economy is an economic system that focuses on reducing the extraction of natural
resources, minimising waste, and regenerate natural systems. In a circular economy, raw materials,
components and products keep their value for as long as possible, while renewable energy sources
are used

Saudi Mining Plan Gets $3 Billion EV Boost From Australian Firm
©2021 Bloomberg L.P.
An Australian company plans to invest $3 billion in Saudi Arabia in a bet on the metals used in
batteries for electric vehicles.
EV Metals Group Plc’s spending will be on building plants to process minerals including lithium and
nickel, and later expand into exploring for the battery metals, Managing Director and Chief Executive
Officer Michael Naylor said. It would be one of the first major deals since Saudi Arabia passed a
law to attract investments in mining as it looks to diversify its oil-dominated economy.
“We’re the first mover and we’ve got the know-how, the technology and the technical capabilities to
bring to the kingdom to explore for these metals,” Naylor said in an interview. Based on its studies,
EV Metals is “optimistic” it will find significant deposits of the materials used for electric car batteries
in Saudi Arabia, he said.
The processing facilities will be developed over the next nine years, Naylor said. The company also
has more than 15 applications for exploration licenses in the kingdom, and is looking for deposits of
lithium, nickel and cobalt, he said.
If successful, it would be the first to unlock the metals in the kingdom. The rush to secure these raw
materials as the world looks for cleaner modes of transport in the energy transition has pushed up
demand and driven prices higher. Nickel in London has increased 82% in the past five years, and
is up 16% in 2021 amid a wider surge in commodities. Lithium carbonate prices in China have risen
to record highs.
Promoting Mining
Already a large producer of aluminum, and with expanding gold output, the Saudi government says
the kingdom has over $1 trillion of untapped minerals. It is looking to attract foreign investors, and
last year’s mining law offers a package of incentives including royalty-free periods and financing for
new projects.
EV Metals is developing the battery chemicals processing facility with a view to supplying a potential
automotive manufacturing cluster in the kingdom, Naylor said. The first stage of the project, which
was announced last month, will produce 50,000 tons a year of high-purity lithium hydroxide
monohydrate, with the plant initially processing feedstock imported from its mine in Western
Australia.
Lucid Motors, which is part owned by Saudi Arabia’s sovereign wealth fund, is looking to build a
manufacturing plant as part of a strategy to develop an auto-making hub in the country, people familiar with
the plan said in January. The Public Investment Fund is also considering starting its own electric carmaker,
other people familiar said in April.

Azerbaijan has increased natural gas production and added a
connection to Europe U.S. Energy Information Administration, Azerbaijan Country Analysis Brief
Azerbaijan, a Eurasian country at the border of Eastern Europe and western Asia, increased its
production of natural gas by 36%, or more than 200 billion cubic feet (Bcf), between 2017 and 2019.
In addition, a new pipeline connection, completed in October 2020, increased the country’s access
to European markets, according to our analysis of Azerbaijan’s energy sector.
Much of the growth in Azerbaijan’s natural gas production was driven by the second phase of
development of the Shah Deniz natural gas and condensate field. Located offshore in the Caspian
Sea, Shah Deniz began production from its first development phase in 2006 and from its second
phase in mid-2018.
According to BP Azerbaijan, the first phase of Shah Deniz produced around 175 Bcf in the first half
of 2018. In the first half of 2021, total Shah Deniz production doubled to around 350 Bcf of natural
gas.
To facilitate the export of the increased production at the Shah Deniz field, several international
natural gas pipelines were constructed, collectively referred to as Azerbaijan’s Southern Gas
Corridor.
The first section of the Southern Gas Corridor is the South Caucasus Pipeline (SCP), which
connects to the Shah Deniz field and goes through Azerbaijan and neighboring Georgia to Georgia’s
border with Turkey. From there, the SCP connects to the Trans-Anatolian Natural Gas
Pipeline (TANAP), which sends natural gas west, through Turkey.
The TANAP connects to the Trans Adriatic Pipeline (TAP) at the Turkey-Greece border and sends
natural gas from there to Greece, through Albania, and to Italy.

The TAP was completed in October 2020, and commercial deliveries began on December 31, 2020.
With the completion of the TAP, the total length of the three pipelines in the Southern Gas Corridor
is around 2,000 miles (3,200 kilometers).
Source: Map created by the Southern Gas Corridor.
According to the Southern Gas Corridor project, the TAP has the capacity to transport approximately
350 Bcf per year, the equivalent of 10 billion cubic meters (Bcm).
The increase in production at Shah Deniz and the completion of the TAP allowed for growth in
Azerbaijan’s natural gas export volumes and markets. From 2017 to 2019, Azerbaijan’s natural gas
exports increased by over 120 Bcf, and the majority of Azerbaijan’s exports went to Turkey and
Georgia.
Export volumes to Turkey and Georgia have continued to grow through the first half of 2021. In
addition, with the completion of the TAP at the end of 2020, Azerbaijan began exporting natural gas
to Greece and Italy and smaller volumes to Bulgaria via Greece. The TAP company announced on
September 16, 2021, that around 175 Bcf (5 Bcm) of natural gas has already been delivered to
Europe through the new TAP.
The Southern Gas Corridor was built to diversify the European Union’s (EU) natural gas supply and
reduce the number of EU countries that have a single supply source. In 2019, more than 38% of
total net natural gas imports to the 28 countries in the EU (the 27 current members plus then-
member United Kingdom) came from Russia, according to Eurostat data. For EU-member Bulgaria,
Russia supplied more than two-thirds of the country’s natural gas imports in 2019.

China's energy woes pile up as winter comes early and coal
prices hit record highs…. Reuters + NewBase
China's energy crisis deepened on Friday as cold weather swept into much of the country and power
plants scrambled to stock up on coal, sending prices of the fuel to record highs.
Electricity demand to heat homes and offices is expected to soar this week as strong cold winds
move down from northern China. Forecasters predict that average temperatures in some central
and eastern regions could fall by as much as 16ºC in the next two to three days.
A China Energy coal-fired power plant in Shenyang, Liaoning province. Beijing has taken measures
to contain coal price increases, including raising domestic coal output. Reuters
Shortages of coal, high fuel prices and booming post-pandemic industrial demand have sparked
widespread power shortages in the world's second-largest economy. Rationing has already been in
place in at least 17 of mainland China's more than 30 regions since September, forcing some
factories to suspend production and disrupting supply chains.
The most active January Zhengzhou thermal coal futures hit a record high of 1,669.40 yuan
($259.42) per tonne early on Friday. The contract has risen more than 200 per cent year to date.
The three north-eastern provinces of Jilin, Heilongjiang and Liaoning – among the worst hit by the
power shortages last month – and several regions in northern China including Inner Mongolia and
Gansu have started winter heating, which is mainly fuelled by coal, to cope with the colder-than-
normal weather.
Power shortages are expected to continue into early
2022 as Beijing assures users that energy supplies will
be secured for the winter heating season

Beijing has taken measures to contain coal price rises including raising domestic coal output and
cutting power to power-hungry industries and some factories during periods of peak demand. It has
repeatedly assured users that energy supplies will be secured for the winter heating season.
But power shortages are expected to continue into early next year, with analysts and traders
forecasting a 12 per cent drop in industrial power consumption in the fourth quarter as coal supplies
fall short and local governments give priority to residential users.
Earlier this week, China in its boldest step in a decades-long power sector reform said it would allow
coal-fired power prices to fluctuate by up to 20 per cent from base levels from October 15, enabling
power plants to pass on more of the high costs of generation to commercial and industrial end-
users.
Steel, aluminium, cement and chemical producers are expected to face higher and more volatile
power costs under the new policy, pressuring profit margins. Data on Thursday showed factory-gate
inflation in September hit a record high.
China aims to be "carbon neutral" by 2060 and Beijing has been trying to reduce its reliance on
polluting coal power in favour of cleaner wind, solar and hydro. But coal is expected to provide the
bulk of its electricity needs for some time.
China is not the only nation struggling with power supplies, which have led to fuel shortages and
blackouts in some countries. The crisis highlights the difficulty in cutting the global economy's
dependency on fossil fuels as world leaders seek to revive efforts to tackle climate change at talks
next month in Glasgow.
China will strive to achieve carbon peaks by 2030, Vice Premier Han Zheng said in a video message
at the Russian Energy Week International Forum, according to state-run news agency Xinhua late
on Thursday. He also said that China and Russia are important forces leading the energy transition
and they should co-operate and ensure smooth progress of major oil and gas pipeline and nuclear
power projects.

India’s largest PEM based hydrogen project won by Technip Energies
NTPC + NewBase
Technip Energies has been awarded an Engineering, Procurement, Construction and
Commissioning (EPCC) contract by NTPC for its Proton Exchange Membrane (PEM) based
hydrogen generation plant project at Vindhyachal, Madhya Pradesh, India.
The EPCC contract covers the delivery of a 5 MW Hydrogen Generation Plant using Proton
Exchange Membrane (PEM) Electrolysis technology at a Super Thermal Power station. This project
is suited for a large scale green hydrogen production facility as power to Electrolyser can be
replaced with renewable electricity in the future.
NTPC is setting up this plant along with two other units – the first, a CO2 capture facility that
captures CO2 from flue gas stream of the coal fired power plant and the second being a Methanol
unit that uses the captured CO2 and the Hydrogen through PEM Electrolyser being supplied by
Technip Energies to convert it into green Methanol.
Davendra Kumar, Senior Vice President India Business Unit at Technip Energies commented: “We
are pleased to have been awarded this PEM based hydrogen project by NTPC.
This award illustrates our commitment to Energy Transition and our strong project management
capabilities in carbon-free energies. It is an honour to be part of one of the first ever PEM based
hydrogen project in India of this scale in the country, marking a significant step towards
decarbonisation of the Indian energy sector.”
Technip Energies is ready to lead the hydrogen wave in both decarbonised and carbon-free
applications. With our 50-year track record in the sector, we are leveraging our expertise, proprietary
technologies, wide-ranging partnerships and execution excellence to accelerate the energy
transition and our commitment to a low-carbon society.--

U.S. N. gas prices likely to remain elevated through the winter
Source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)
In our October Short-Term Energy Outlook (STEO), we forecast that natural gas spot prices at the
U.S. benchmark Henry Hub will average $5.67 per million British thermal units (MMBtu) between
October and March, the highest winter price since 2007–2008.
The increase in Henry Hub prices in recent months and in our forecast reflect below-average
storage levels heading into the winter heating season and strong demand for U.S. liquefied natural
gas (LNG), even though we’ve seen relatively slow growth in U.S. natural gas production.
We expect Henry Hub prices will decrease after the first quarter of 2022, as production growth
outpaces growth in LNG exports, and will average $4.01/MMBtu for the year.
U.S. exports of LNG are establishing a record high this year, and we expect them to set a new
record high next year. We expect LNG exports to average 9.7 billion cubic feet per day (Bcf/d) this
year (3.2 Bcf/d more than the 2020 record high of 6.5 Bcf/d) and to exceed annual pipeline exports
of natural gas for the first time.
The year-on-year increase in LNG exports coincides with slight growth in U.S. natural gas
production. We expect U.S. dry natural gas production to average 92.6 Bcf/d this year, which is 1.1
Bcf/d more than in 2020 but 0.3 Bcf/d less than in 2019.
Because U.S. LNG exports have grown faster than domestic natural gas production, inventories are
lower than average. As of the end of September, we estimate that total U.S. natural gas inventories
are 5.5% below the five-year (2016–2020) average.
We forecast that U.S. inventories of natural gas will begin the winter heating season on November
1 at 3,572 Bcf, or 4.8% below the five-year average. Lower U.S. inventories could contribute to more
natural gas price volatility, particularly if any area in the United States experiences a severe cold
snap, which makes the price outlook for this winter very uncertain.

Source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)
Note: The annual average for liquefied natural gas (LNG) in 2021 includes forecast values from
the STEO for October–December, and the dry natural gas production annual average for 2021
includes forecast values from the STEO for August–December.
In the second quarter of 2022, we forecast decreasing Henry Hub natural gas prices as anticipated
growth in domestic natural gas production begins to outpace growth in U.S. LNG exports.
We expect U.S. production to average 96.4 Bcf/d in 2022, or 3.9 Bcf/d more than in 2021, and U.S.
LNG exports to rise by a smaller amount, 1.4 Bcf/d, during this time period. We forecast that faster
growth in production will put downward pressure on natural gas prices.

NewBase October 16-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices rise to 7 year high as demand surpasses supplies
NewBase + Reuters
Oil prices settled at a three-year high above $85 a barrel on Friday, boosted by forecasts of a supply
deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.
Brent crude futures settled up 86 cents, or 1%, at$84.86 a barrel. Front-month prices, which touched
their highest level since October 2018 at $85.10, hit a weekly rise of 3%, its sixth straight weekly
gain.
Oil price special
coverage
Summary
 Brent set to rise for sixth consecutive week
 Brent at highest price since July 2014
 WTI on track to post 8th straight weekly gain

U.S. West Texas Intermediate (WTI) crude futures rose 97 cents, or 1.2%, to $82.28 a barrel. The
was up 3.5% on the week in an eighth consecutive weekly rise.
Demand has picked up with the recovery from the COVID-19 pandemic, with a further boost from
power generators who have been turning away from expensive gas and coal to fuel oil and diesel.
The White House said it will lift COVID-19 travel restrictions for fully vaccinated foreign nationals
effective Nov. 8, which should boost jet fuel demand. read more
Meanwhile, a sharp drop in oil stockpiles in the United States and the member countries of the
Organisation of Economic Co-operation and Development is expected to keep global supply tight.
"It will take a trifecta of events to derail this oil price rally: OPEC+ unexpectedly boosts output, warm
weather hits the Northern Hemisphere, and if the Biden administration taps the strategic petroleum
reserves," said Edward Moya, senior market analyst at OANDA.
U.S. energy firms this week added oil and natural gas rigs for a sixth week in a row as soaring crude
oil prices prompted drillers to return to the wellpad.

The U.S. oil and gas rig
count, an early indicator of
future output, rose 10 to
543 in the week to Oct. 15,
its highest since April
2020, energy services firm
Baker Hughes
Co (BKR.N) said in its
closely followed report on
Friday. read more
The International Energy
Agency on Thursday said
the energy crunch is
expected to boost oil
demand by 500,000
barrels per day (bpd).
That would result in a supply gap of around 700,000 bpd through the end of this year, until the
Organization of the Petroleum Countries and allies, together called OPEC+, add more supply, as
planned in January.
NewBase Special Coverage
The Energy world – Oct - 16- -2021
Asia’s Coal Mining Revival Doesn’t Mean the Energy Crisis Is Over
Bloomberg - Dan Murtaugh and Rajesh Kumar Singh
A crunch on coal production from key hubs in China and India is beginning to ease, but that won’t
be enough to halt Asia’s energy crisis.
Major industries in the region, including steelmakers to chemical producers, are expected to
continue to face power disruptions through the winter, as fuel supply remains tight and as
governments prioritize heating demand from households.
Coal India Ltd., the world’s top miner of the commodity, has temporarily stopped deliveries to all
consumers in the country other than power stations, even as it boosts deliveries from mines.
“Markets may barely get by this winter on supply,” said Natalie Biggs, head of thermal coal research
for Wood Mackenzie Ltd. “If we experience colder than normal temperatures in the Northern
Hemisphere, like we did last year, we could see some severe shortages in some areas.”

China, the largest producer and consumer of the fuel, could boost mine output by an extra 100
million tons in the fourth quarter. Reserves are slowly rising in India after more than three weeks of
daily declines, while Indonesia -- the top exporter -- is finally recovering from a rain-soaked
slowdown in production.
The three nations are the world’s top coal producers, while China and India are by far the largest
consumers, burning nearly two-thirds of the world’s supply combined. Even as mining activity ramps
up, global coal production will remain below levels in 2019 and at a time when demand is increasing,
according to Biggs.
Asia is home to the world's three largest coal mining nations
Safety issues in China, heavy rains in Indonesia and Australia and logistics issues in Russia and
South Africa have hampered coal supply all year. Combined with a post-pandemic recovery in
industrial activity, that’s created a global shortage which is pushing prices to record levels and has
caused blackouts and electricity curtailments.
Miners are finally starting to catch up. Indonesia, which had an unusually long and heavy rainy
season, has now accelerated output and expects to meet an annual target of 625 million tons,
according to Sunindyo Suryo Herdadi, director of mineral and coal program fostering, at the Energy
and Mineral Resources Ministry.

Coal is loaded onto a barge at a terminal in East Kalimantan, Indonesia.
Photographer: Dimas Ardian/Bloomberg
In China, monthly output is already about 18 million tons higher than last year and authorities are
clearing bureaucratic hurdles to help producers add significantly more volumes, Sun Qingguo,
senior safety supervisor with the National Mine Safety Administration, said at a briefing Wednesday.
In total, that could add an extra 100 million tons of supply this quarter.
While that should help China heat homes and keep the economy running smoothly, energy-hungry
industries will face power curtailments. Output from sectors like steel and cement could decline 30%
through year’s end, according to UBS Group AG.

“Energy shortage remains a distinct risk over the winter in China and power rationing will be one of
the policy measures to address the issue,” said Lara Dong, head of greater China power and
renewables research at IHS Markit. Heating demand is expected to rise with temperatures forecast
to drop from this weekend in regions including Inner Mongolia.
During a visit to a facility run by a home-appliance producer in Guangdong province Thursday,
Premier Li Keqiang pledged to ensure power supplies for factories. The government has given coal
miners permission to surpass annual quotas, will allow electricity prices to rise and has moved to
limit exports of other fuels and lifted diesel imports.
In India, coal stocks at power plants are rising, though inventories still remain almost 80% lower
than a year earlier. Several states are witnessing long outages and spot power prices jumped this
week to a 12-year high. State-run Coal India is also continuing to divert supply away from industrial
consumers, prompting complaints from sectors including aluminum producers.
“The government will do anything to prevent a widespread blackout, even if it means curtailing
supplies to some other consumers,” said Somesh Kumar, leader for power and utilities at EY India.
NewBase Energy News 16 October 2021 - Issue No. 1463 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.

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