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NewBase Energy News 19 October 2021 Issue No. 1464 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, UK agree on new action plan to drive sustainable
development, boost economic partnership
WAM/Amjad Saleh/Hazem Hussein
DUBAI, 18th October, 2021 (WAM) -- The governments of the UAE and the United Kingdom (UK)
have agreed on a new action plan to strengthen their economic ties across a wide range of vital and
future sectors, including clean energy, research and development, innovation, infrastructure,
tourism, food security, new technologies, artificial intelligence (AI), space and the Fourth Industrial
Revolution.
The two sides also agreed on practical steps to reinforce their economic ties and support sustainable
development strategies in both countries.
Their discussion took place during the seventh meeting of the UAE-British Joint Economic
Committee, held on the sidelines of Expo 2020 Dubai.
At the meeting, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, represented
the UAE Government, and Ranil Jayawardena, UK's Minister for International Trade, represented
the UK Government.
The meeting was also attended by Mansour Abdullah Khalfan Belhoul, UAE Ambassador to the UK,
via video conferencing, in the presence of Juma Al Keet, Assistant Under-Secretary of Foreign
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Trade Affairs at the Ministry of Economy, as well as several officials and private sector
representatives from both countries. Dr. Al Zeyoudi highlighted the close strategic ties between the
UAE and UK, noting that their economic relations are a key pillar of their growing cooperation.
He referred to the recent visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince
of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to the UK, which
crowned the efforts aimed at boosting the strategic relations between the two countries.
"There are promising prospects for enhancing our economic cooperation, and we will coordinate
with our partners in the UK to expand and diversify opportunities for accessing our markets,
eliminate obstacles to trade, and identify new opportunities in strategic sectors, including trade,
investment, health and life sciences, energy and renewable energy, environmental preservation,
agriculture, food security, financial services, education, scientific research and advanced
technology," he added.
During the meeting, Al Zeyoudi briefed the British delegation about the recent developments in the
UAE’s business community, including the 'Projects of the 50' and new economic legislation and
initiatives launched by the UAE.
Al Zeyoudi called on British investors, entrepreneurs and companies to visit Expo 2020 Dubai and
leverage the promising opportunities in the UAE’s economic sector.
Jayawardena underscored the UK’s keenness to bolster its economic ties with the UAE. He noted
that the committee provides a key opportunity to expand their economic ties to cover new sectors
and deepen the partnership between the two countries, as well as attract investments, create new
job opportunities, and facilitate access for British and Emirati companies to both markets.
The two sides also approved practical steps to enhancing access for SMEs to each other's markets.
They drafted a plan to promote cooperation in the fields of healthcare, biotechnology and
pharmaceuticals, besides discussing ways to enhance cooperation across clean energy, maritime
sciences, climate change, sustainable agriculture, among other sectors.
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Saudi: Huawei wins Red Sea energy storage project, 1300MW
TradeArabia News Service
Huawei Digital Power has signed a key contract with SepcoIII for the Red Sea Project with 400 MW
PV plus 1300 MWh battery energy storage solution (BESS), which is currently the world's largest
energy storage project.
The contract was announced at the Global Digital Power Summit 2021 in Dubai, UAE. The two
parties will cooperate to help Saudi Arabia build a global clean energy and green economy centre,
said a statement.
This 1300 MWh off-grid energy storage project is the largest of its kind in the world and represents
a milestone in the global energy storage industry.
The Red Sea Project has been listed in the Saudi Vision 2030 as a key project. Its developer is
Acwa Power, and the general contractor of EPC is SepcoIII. Located on the Red Sea coast, Neom
is also known as the city of the future, powered entirely by renewable energy. It will lead a new way
of life and drive new economic growth, as resources such as oil are increasingly depleted.
With more than 10 years of experience in researching and developing energy storage systems as
well as more than 8 GWh energy storage system applications, Huawei Digital Power is committed
to integrating the digital information technology with PV and energy storage technologies to build a
more efficient, stable, and safe smart string energy storage system using the string, intelligent, and
modular designs, aiming to help PV become the main energy source and build a green and bright
future. -
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South Africa is turning to nuclear energy to plug its power shortage
Bloomberg + The National
South Africa is looking to step up its power generation capacity and commission new coal and
nuclear plants as it deals with an energy crisis. Coal is the single most valuable export commodity,
making it harder for the country to wean itself off the fuel
Scheduled power cuts, or "load shedding" as national electricity utility Eskom calls it, have darkened
homes and shut down industries for up to nine hours a day during the past week.
South Africa is not the only country grappling with power shortages; India and China too are dealing
with an energy crunch. However, while these are largely due to the shortage of coal, South Africa’s
power crisis stems from a fleet of ageing coal power stations that are prone to breakdowns.
Environmentalists have been pushing to transition to clean energy to solve the country’s energy
crisis but Mineral Resources Minister Gwede Mantashe told the Joburg Indaba mining conference
last week that both new coal and nuclear plants will be part of future plans.
“I am not saying coal for ever,” Mr Mantashe said. “I am saying let us manage our transition step by
step, rather than being emotional. We are not a developed economy. We do not have all alternative
sources of electricity.”
Mr Mantashe’s words came as a disappointment to many who were hoping the government was
headed exclusively towards wind and solar. “South Africa is one of the world’s highest emitters of
carbon and greenhouse gasses,” said Ayodele Odusola, Resident Representative for the UN
Development Programme in South Africa.
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The country is at a similar development level to economies such as India, Vietnam and Mexico,
which had been making strides to move away from fossil-based energy.
For the ruling African National Congress, it is not so simple. The country is struggling with record
unemployment, with more than a third of its workforce sitting at home, and coal is the single largest
employer.
About 90,000 workers depend on the coal industry, and they, in turn, support as many as half a
million people, according to government statistics. “A transfer of skills to coal workers, preparing
them for work in the renewable industry would be required,” Mr Odusola said.
South Africa is also a major coal exporter, sending about 80 million tonnes abroad annually, to
customers such as Pakistan and India. Coal is also the single most valuable export commodity,
bringing in revenue of 51 billion rand ($3.5bn) in 2019, industry figures show.
Still, the country is officially committed to reducing emissions amid plans to be carbon neutral by
2050. One way to do this would be to build more nuclear plants, Mr Mantashe said. Renewable
generation cannot be relied on alone because of the large amount of downtime experienced by
solar and wind.
“Nuclear is going to be the saviour because renewables have no baseload,” he said while speaking
at the same event. South Africa already has the continent’s only operating nuclear power plant,
outside Cape Town, that has been running since the early 1980s.
“Nuclear will be part of South Africa’s climate change mitigation,” said Zizamele Mbambo, deputy
head of nuclear at the Department of Mineral Resources and Energy. He said it was government’s
plan to procure nuclear power at a scale and pace the country can afford. “It is a ‘no regret’ option.
We expect the procurement process to begin early next year and be completed by 2024.”
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Apart from the usual objections to nuclear energy, the technology has an especially bad rap in the
country as it is also associated with an attempt to irregularly procure a fleet of nuclear plants from
Russia, during the administration of former president Jacob Zuma.
The deal, which would have cost the country $76bn, was personally signed by Mr Zuma and Russian
president Vladimir Putin in 2014. However, it was overturned in court in 2017, after it was found to
have bypassed the country’s large capital procurement processes.
A subsequent judicial commission of inquiry into corruption related to the Zuma years heard that the
Russian deal had under-calculated the cost to South Africa and that the eventual bill would have
ended up as high as $100bn.
However, Mr Mbambo believes that the nuclear procurement programme would be different this
time around. “The process will be transparent and cost competitive,” he said.
South Africa nuclear power plant: Koeburg Nuclear Power Station
Koeburg is located about 20 miles from Cape Town on the west coast of South Africa. The plant is
formed of two pressurised water reactors (PWR) which have a capacity of 970MW, offering a
combined capacity of 1.94GW. It is the only nuclear power plant in Africa and is the most southerly
nuclear plant in the world.
Construction on the plant began in 1976, with unit 1 being added to the grid on 4 April 1984 and unit
2 on 25 July 1985. Built during the height of Apartheid, the plant was attacked by members of the
then underground African National Congress (ANC), who detonated four bombs at the site on 20
December 1982.
It has also been the target for anti-nuclear groups like Greenpeace Africa and has been the site of
continuous protests in recent years. The plant is owned by the state energy company Eskom,
which states that Koeburg is one of the safest of the top-ranking PWRs of its class in the world.
In April 2019, Eskom announced that the plant would be revamped to expand its lifespan by 20
years to 2044.
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U.K. Gloomy Outlook recovery with multi economical crisises
NewBase + Bloomberg + CNBC
Economists are growing increasingly pessimistic about the outlook for the U.K. recovery, leaving
them at odds with markets on the prospects for rapid Bank of England interest rate hikes.
The outlook for U.K. growth next year was trimmed by 0.4 percentage points to 5.1%, the sharpest
reduction for any major European economy, according to a monthly survey by Bloomberg published
Monday. Analysts expect no increase in the BOE’s key rate, currently at 0.1%, until May, with
another hike coming in November.
While that’s more aggressive than previously forecast, the findings still mark a sharp contrast with
the outlook from financial markets, where investors have loaded up on bets for tighter BOE policy
in recent weeks. A flurry of hawkish comments from some officials have left traders anticipating the
first post-pandemic increase from the central bank coming by the end of this year, and rates hitting
1% by December 2022.
Economists also boosted their inflation forecasts, predicting readings above the BOE’s 2% target
through the first quarter of 2023. The central bank expects inflation to exceed 4% later this year and
then fall back to 2.6% by the third quarter of 2022.
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The GDP forecasts mean Britain’s economy would reach its pre-Covid level of output in the first
quarter of 2022, three months later than previously anticipated. Unemployment is expected to peak
at 5% in the first half of next year, slightly later and lower than previously thought. That indicates
that most of the around 1 million people estimated to have been on furlough when government
support ended last month will find work.
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Gas crisis, labor shortages and supply chain chaos: Post-Brexit Britain faces a difficult winter
The U.K. has emerged from the Covid-19 pandemic to find itself faced with an onslaught of new
economic crises that have left the country in “a precarious position,” experts have warned.
A perfect storm of labor shortages, skyrocketing natural gas prices and global supply chain
constraints have put the country in prime position for a difficult winter. Rising demand as economies
reopen has created similar problems all over the world, but economists argue that Brexit has
exacerbated these issues for Britain.
Labor shortages
Britain has an estimated shortage of 100,000 truck drivers, which haulage organizations have
largely attributed to a post-Brexit exodus of EU nationals. The lack of truck drivers has disrupted
deliveries, leading to empty store shelves, backlogs at ports and dry gas stations, which sparked
a panic buying frenzy in September that lasted weeks.
Other sectors have also warned of deepening labor shortages that are expected to damage the
availability and price of goods in the runup to Christmas.
Britain’s National Pig Association has warned that up to 120,000 pigs face being culled within weeks
because of a lack of butchers and abattoir workers.
In a statement on Friday, the vice president of the U.K.’s National Union of Farmers said labor
shortages across the food supply chain remained acute, while the CEO of the U.K. Warehousing
Association said in September that industries including warehousing, engineering and transport
were all experiencing severe worker shortages.
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At the end of September, the Confederation of British Industry — which represents 190,000
businesses — said its latest data showed 70% of companies were planning pay rises in a bid to
tackle labor shortages.
The U.K. government has issued thousands of temporary visas for truck drivers, butchers and
agricultural workers, but some critics have argued that this is insufficient to lure foreign workers.
Risk to future growth
Riccardo Crescenzi, a professor of economic geography at the London School of Economics,
expressed some skepticism about the solutions being offered by the government.
“Offering three-month [visas] might not work while the rest of the EU is booming because of the
injection of resources allowed for its recovery plan,” he told CNBC in a phone call. “And there is not
really an unemployment problem in the U.K., so I struggle to see where drivers would come from in
the domestic economy.”
Crescenzi said it was hard to know if the issues were temporary. “Some of these shortages could
become structural, and this is a problem that can seriously constrain future growth.”
The Ripple Effect of the UK Gas Shortage
Sam Roscoe, senior associate professor in operations and supply chain management at the
University of Sussex, warned that shortages would persist in the U.K. unless there were
fundamental changes to the country’s immigration system.
“Brexit was sold as a vote on immigration independence, the U.K. labor market and making sure
that everybody in the U.K. had jobs to go to, but the issue is we have 5% unemployment,” he said
via telephone. “We’ve lost access to 27 member countries and the labor pool that was once available
there, especially in terms of so-called low-skilled labor. I think that definitely puts us in a precarious
position.”
Roscoe said it would take years to get enough Brits trained and licensed to drive heavy goods
vehicles. “In the meantime, the reality is we’re going to have labor shortages unless the visa rules
change.”
Spending power threatened
In a note on Thursday, Credit Suisse economists warned that U.K. consumers “face headwinds in
the next few months,” including elevated inflation, supply shortages and the tightening of monetary
policy.
“We think real disposable incomes for the U.K. consumer can fall by about 1.5% in 2022, the biggest
fall since 2011,” the note’s authors predicted.
Helen Dickinson, head of the British Retail Consortium, told ITV News Thursday that three in five
CEOs said they would have to raise prices by the end of the year due to supply chain problems.
Some 10% said they had already done so.
Charalambos Pissouros, head of research at JFD Group, said he believed panic buying and supply
shortages in the U.K. might also impact spending power by damaging sterling’s value.
“I see the risk surrounding the future of the British pound as tilted to the downside,” he told CNBC.
“How severe any further tumble may be depends on how long the situation stays unresolved. Quick
responses like the involvement of the British military could restore economic performance sooner
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than thought and halt sterling’s fall, and this could also allow the Bank of England to proceed freely
with its tightening plans.”
Government response to crises ‘alarming’
It comes as Britain also faces an energy crisis. Several U.K. energy suppliers have collapsed since
September as wholesale gas prices climbed to record highs. While the problem has affected
markets worldwide, the U.K. is particularly vulnerable because of its reliance on gas; more than 22
million households are connected to the British gas grid.
Meanwhile in Europe — which is also battling rising prices — the European Commission on
Wednesday published a “toolbox” that member states could use “to address the immediate impact
of current [gas] price increases, and further strengthen resilience against future shocks.”
Crescenzi told CNBC that the EU can count on the strength of its single market, “which means
global shocks like the gas price crisis can be dealt with more effectively with significantly more room
for manoeuvre.”
“Following Brexit, the U.K. could still coordinate its response to the crisis with its most important
trade and investment partner to ensure the best possible protection for its firms and citizens,” he
added. “However, measures put out by the U.K. government remain unclear, let alone a strategy to
coordinate with external partners. This is alarming.”
EU-U.K. relations have been under strain in recent weeks amid disputes over the Northern Ireland
protocol, a special trade deal introduced to avoid a hard border between Northern Ireland and the
Republic of Ireland. Officials have publicly argued on Twitter over the proposals — dubbed the
“biggest source of mistrust” between both sides by U.K. Brexit Minister David Frost — and met to
discuss proposed changes in Brussels on Friday.
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China:Early Freeze Adds to the Nation’s Energy Crisis
Bloomberg + NewBase
Plunging temperatures across parts of China have sparked an early start to the winter heating
season, likely lifting power demand and intensifying the nation’s energy crisis.
Temperatures have dropped more than 10 degrees Celsius (50 Fahrenheit) in recent days across
most of eastern China, and snow has begun to fall in parts of Inner Mongolia and Heilongjiang,
according to the China Meteorological Administration. The agency initiated a level four emergency
response on Friday because of the cold wave.
China thermal coal futures extended a stratospheric rally in Monday trading as some provinces
signaled they’ll bring forward the start of the traditional heating season, when local government-
controlled systems -- typically powered by coal or gas -- are fired up to warm residents’ homes
through the winter months.
Jilin, a northeast province that suffered blackouts last month amid low coal supplies, began winter
heating operations on Oct. 15, earlier than usual, with coal inventories at about 85% of capacity,
according to local reports.
Thermal coal futures on the Zhengzhou Commodity Exchange rose as much as 8% to 1,828 yuan
a ton ($284) Monday, the highest intraday price on record.
China has been pushing coal miners to boost output and expects to continue curtailing power
supplies to large, energy-intensive users through the winter to make sure supplies can meet winter
heating demands.
Leaders are also speeding up market reforms, allowing electricity prices to rise higher to incentivize
power plants to keep generating despite lofty coal prices. Rates have risen by the maximum of 20%
in provinces including Jiangsu and Shandong since the reforms went into effect on Friday, Securities
Daily reported.
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NewBase October 19-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices reverse earlier losses on China energy demand concerns
Reuters + NewBase
Oil prices rose on Tuesday, recouping earlier losses, as falling temperatures in China, the world's
biggest energy consumer, revived concerns about its ability to meet heating demand needs amid
power and coal shortages.
Brent crude rose 24 cents, or 0.3%, to $84.57 a barrel by 0541 GMT after falling 0.6% on Monday.
The contract is still up nearly 7% this month. U.S. West Texas Intermediate futures gained 35 cents,
or 0.4%, to $82.79 a barrel, having risen 0.2% in the previous session and nearly 10% this month.
Brent fell on Monday after China released growth figures that disappointed the market but with
temperatures falling as the northern hemisphere winter approaches and heating demand increasing,
prices of oil, coal and natural gas are likely to remain elevated, traders and analysts said.
Colder weather has already started to grip China, with the temperature forecast to fall to near
freezing in northern areas, according to AccuWeather.com.
Oil price special
coverage
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"Tightness in energy markets meant supply side issues remain prevalent and commodities prices
remain supported," said an energy derivatives trader based in Singapore.
Coal futures in China rose as much as 7.8% on Tuesday, while riskier assets like equities were also
higher. The rising coal and natural gas prices in Asia are expected to cause some end-users to
switch to lower-cost oil as an alternative.
However, the power crunch that is sending prices higher is also hurting Chinese economic growth,
which fell to the lowest in a year, according to official data on Monday. read more
China's daily crude oil processing rate also fell again last month to the lowest level since May last
year. read more
Helping keep a lid on prices, U.S. oil output is set to rise. Production in the largest shale formation
in the U.S., the world's biggest oil producer, is expected to gain further next month, according to an
official report.
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NewBase Special Coverage
The Energy world – Oct - 07- -2021
Renewables will account for most global generation increases,
but coal use remains high by 2050……. …..U.S. EIA, International Energy Outlook 2021 (IEO2021)
In the Reference case of our International Energy Outlook 2021 (IEO2021), where we assume
current laws and regulations continue into the future, we project that renewable resources—
particularly solar and wind—will be the largest contributor to the growth in electricity generation
through 2050. However, certain regions will still mainly use coal resources for electricity generation.
Of the world’s existing coal-fired generating capacity, 99% consists of boilers and steam turbine
units that are as much as 30% less efficient than natural gas-fired combined-cycle units that use the
latest technology.
Because natural gas-fired generators are more efficient than coal-fired generators at converting fuel
to electricity, natural gas-fired generation is often a lower-cost option, even if the fuel price of natural
gas is slightly higher than the fuel price of coal.
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However, the absence of regional carbon policies or regulations along with rising natural gas prices
after 2030—particularly in Asia and in regions that rely on higher-cost liquefied natural gas (LNG)—
is likely to make coal the most economical generation fuel to pair with increased intermittent
generation from wind and solar.
This shift reverses the trend observed over recent decades. Although the cost of mining coal will
likely raise coal prices after 2030, we project that coal prices will remain low relative to natural gas
prices and provide a cost-competitive option to natural gas-fired generation.
Increases in coal-fired generation in Other non-OECD Asia—which includes Indonesia, Vietnam,
and Thailand, among other countries—will account for over 75% of our projected increase in global
coal-fired generation from 2030 to 2050.
For Other non-OECD Asia, we project that renewable energy sources will account for about 60% of
the generation increase over the projection period, primarily from wind and solar. Coal-fired
generation will account for nearly all of the remaining growth.
Source: U.S. Energy Information Administration, International Energy Outlook 2021 (IEO2021) Reference case
Other non-OECD Asia is a geographically diverse region. Several countries in the region have
limited domestic natural gas resources and have constrained access to natural gas pipelines and
LNG regasification terminals.
In 2030, we project that coal-fired generation will start displacing some natural gas-fired generation
in Other non-OECD Asia because of abundant coal resources that can be competitively mined,
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natural gas prices that are projected to increase after 2030, and a lack of carbon policies or
regulations in the region.
Coal-fired generation will steadily increase in Other non-OECD Asia through 2050; coal’s share of
the region’s generation mix is projected to increase from 33% in 2020 to almost 50% in 2050.
Today’s pledges cover less than 20%
The APS sees a doubling of clean energy investment and financing over the next decade, but this
acceleration is not sufficient to overcome the inertia of today’s energy system. In particular, over the
crucial period to 2030, the actions in this scenario fall well short of the emissions reductions that
would be required to keep the door open to a Net Zero Emissions by 2050 trajectory.
One of the key reasons for this shortfall is that today’s climate commitments, as reflected in the
APS, reveal sharp divergences between countries in the pledged speeds of their energy transitions.
Global emissions by scenario, 2000-2050
Alongside its achievements, this scenario also contains the seeds of new divisions and tensions, in
the areas of trade in energy-intensive goods, for example, or in international investment and finance.
Successful, orderly and broad-based energy transitions depend on finding ways to lessen the
tensions in the international system that are highlighted in the APS.
All countries will need to do more to align and strengthen their 2030 goals and make this a
collaborative global transition in which no one is left behind.
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Risk of more turbulence ahead for energy markets
The world is not investing enough to meet its future energy needs, and uncertainties over policies
and demand trajectories create a strong risk of a volatile period ahead for energy markets.
Transition-related spending is gradually picking up, but remains far short of what is required to meet
rising demand for energy services in a sustainable way.
The deficit is visible across all sectors and regions. At the same time, the amount being spent on oil
and natural gas, dragged down by two price collapses in 2014-15 and in 2020, is geared towards a
world of stagnant or even falling demand for these fuels.
Oil and gas spending today is one of the very few areas that it is reasonably well aligned with the
levels seen in the NZE to 2030.
IEA analysis has repeatedly highlighted that a surge in spending to boost deployment of clean
energy technologies and infrastructure provides the way out of this impasse, but this needs to
happen quickly or global energy markets will face a turbulent and volatile period ahead.
Clear signals and direction from policy makers are essential. If the road ahead is paved only with
good intentions, then it will be a bumpy ride indeed.
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 19 October 2021 - Issue No. 1464 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.
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,
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
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 23
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 24
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New base 19 october 2021 energy news issue 1464 by khaled al awadi

  • 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 19 October 2021 Issue No. 1464 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, UK agree on new action plan to drive sustainable development, boost economic partnership WAM/Amjad Saleh/Hazem Hussein DUBAI, 18th October, 2021 (WAM) -- The governments of the UAE and the United Kingdom (UK) have agreed on a new action plan to strengthen their economic ties across a wide range of vital and future sectors, including clean energy, research and development, innovation, infrastructure, tourism, food security, new technologies, artificial intelligence (AI), space and the Fourth Industrial Revolution. The two sides also agreed on practical steps to reinforce their economic ties and support sustainable development strategies in both countries. Their discussion took place during the seventh meeting of the UAE-British Joint Economic Committee, held on the sidelines of Expo 2020 Dubai. At the meeting, Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, represented the UAE Government, and Ranil Jayawardena, UK's Minister for International Trade, represented the UK Government. The meeting was also attended by Mansour Abdullah Khalfan Belhoul, UAE Ambassador to the UK, via video conferencing, in the presence of Juma Al Keet, Assistant Under-Secretary of Foreign
  • 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 Trade Affairs at the Ministry of Economy, as well as several officials and private sector representatives from both countries. Dr. Al Zeyoudi highlighted the close strategic ties between the UAE and UK, noting that their economic relations are a key pillar of their growing cooperation. He referred to the recent visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, to the UK, which crowned the efforts aimed at boosting the strategic relations between the two countries. "There are promising prospects for enhancing our economic cooperation, and we will coordinate with our partners in the UK to expand and diversify opportunities for accessing our markets, eliminate obstacles to trade, and identify new opportunities in strategic sectors, including trade, investment, health and life sciences, energy and renewable energy, environmental preservation, agriculture, food security, financial services, education, scientific research and advanced technology," he added. During the meeting, Al Zeyoudi briefed the British delegation about the recent developments in the UAE’s business community, including the 'Projects of the 50' and new economic legislation and initiatives launched by the UAE. Al Zeyoudi called on British investors, entrepreneurs and companies to visit Expo 2020 Dubai and leverage the promising opportunities in the UAE’s economic sector. Jayawardena underscored the UK’s keenness to bolster its economic ties with the UAE. He noted that the committee provides a key opportunity to expand their economic ties to cover new sectors and deepen the partnership between the two countries, as well as attract investments, create new job opportunities, and facilitate access for British and Emirati companies to both markets. The two sides also approved practical steps to enhancing access for SMEs to each other's markets. They drafted a plan to promote cooperation in the fields of healthcare, biotechnology and pharmaceuticals, besides discussing ways to enhance cooperation across clean energy, maritime sciences, climate change, sustainable agriculture, among other sectors.
  • 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 Saudi: Huawei wins Red Sea energy storage project, 1300MW TradeArabia News Service Huawei Digital Power has signed a key contract with SepcoIII for the Red Sea Project with 400 MW PV plus 1300 MWh battery energy storage solution (BESS), which is currently the world's largest energy storage project. The contract was announced at the Global Digital Power Summit 2021 in Dubai, UAE. The two parties will cooperate to help Saudi Arabia build a global clean energy and green economy centre, said a statement. This 1300 MWh off-grid energy storage project is the largest of its kind in the world and represents a milestone in the global energy storage industry. The Red Sea Project has been listed in the Saudi Vision 2030 as a key project. Its developer is Acwa Power, and the general contractor of EPC is SepcoIII. Located on the Red Sea coast, Neom is also known as the city of the future, powered entirely by renewable energy. It will lead a new way of life and drive new economic growth, as resources such as oil are increasingly depleted. With more than 10 years of experience in researching and developing energy storage systems as well as more than 8 GWh energy storage system applications, Huawei Digital Power is committed to integrating the digital information technology with PV and energy storage technologies to build a more efficient, stable, and safe smart string energy storage system using the string, intelligent, and modular designs, aiming to help PV become the main energy source and build a green and bright future. -
  • 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 South Africa is turning to nuclear energy to plug its power shortage Bloomberg + The National South Africa is looking to step up its power generation capacity and commission new coal and nuclear plants as it deals with an energy crisis. Coal is the single most valuable export commodity, making it harder for the country to wean itself off the fuel Scheduled power cuts, or "load shedding" as national electricity utility Eskom calls it, have darkened homes and shut down industries for up to nine hours a day during the past week. South Africa is not the only country grappling with power shortages; India and China too are dealing with an energy crunch. However, while these are largely due to the shortage of coal, South Africa’s power crisis stems from a fleet of ageing coal power stations that are prone to breakdowns. Environmentalists have been pushing to transition to clean energy to solve the country’s energy crisis but Mineral Resources Minister Gwede Mantashe told the Joburg Indaba mining conference last week that both new coal and nuclear plants will be part of future plans. “I am not saying coal for ever,” Mr Mantashe said. “I am saying let us manage our transition step by step, rather than being emotional. We are not a developed economy. We do not have all alternative sources of electricity.” Mr Mantashe’s words came as a disappointment to many who were hoping the government was headed exclusively towards wind and solar. “South Africa is one of the world’s highest emitters of carbon and greenhouse gasses,” said Ayodele Odusola, Resident Representative for the UN Development Programme in South Africa.
  • 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 The country is at a similar development level to economies such as India, Vietnam and Mexico, which had been making strides to move away from fossil-based energy. For the ruling African National Congress, it is not so simple. The country is struggling with record unemployment, with more than a third of its workforce sitting at home, and coal is the single largest employer. About 90,000 workers depend on the coal industry, and they, in turn, support as many as half a million people, according to government statistics. “A transfer of skills to coal workers, preparing them for work in the renewable industry would be required,” Mr Odusola said. South Africa is also a major coal exporter, sending about 80 million tonnes abroad annually, to customers such as Pakistan and India. Coal is also the single most valuable export commodity, bringing in revenue of 51 billion rand ($3.5bn) in 2019, industry figures show. Still, the country is officially committed to reducing emissions amid plans to be carbon neutral by 2050. One way to do this would be to build more nuclear plants, Mr Mantashe said. Renewable generation cannot be relied on alone because of the large amount of downtime experienced by solar and wind. “Nuclear is going to be the saviour because renewables have no baseload,” he said while speaking at the same event. South Africa already has the continent’s only operating nuclear power plant, outside Cape Town, that has been running since the early 1980s. “Nuclear will be part of South Africa’s climate change mitigation,” said Zizamele Mbambo, deputy head of nuclear at the Department of Mineral Resources and Energy. He said it was government’s plan to procure nuclear power at a scale and pace the country can afford. “It is a ‘no regret’ option. We expect the procurement process to begin early next year and be completed by 2024.”
  • 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 Apart from the usual objections to nuclear energy, the technology has an especially bad rap in the country as it is also associated with an attempt to irregularly procure a fleet of nuclear plants from Russia, during the administration of former president Jacob Zuma. The deal, which would have cost the country $76bn, was personally signed by Mr Zuma and Russian president Vladimir Putin in 2014. However, it was overturned in court in 2017, after it was found to have bypassed the country’s large capital procurement processes. A subsequent judicial commission of inquiry into corruption related to the Zuma years heard that the Russian deal had under-calculated the cost to South Africa and that the eventual bill would have ended up as high as $100bn. However, Mr Mbambo believes that the nuclear procurement programme would be different this time around. “The process will be transparent and cost competitive,” he said. South Africa nuclear power plant: Koeburg Nuclear Power Station Koeburg is located about 20 miles from Cape Town on the west coast of South Africa. The plant is formed of two pressurised water reactors (PWR) which have a capacity of 970MW, offering a combined capacity of 1.94GW. It is the only nuclear power plant in Africa and is the most southerly nuclear plant in the world. Construction on the plant began in 1976, with unit 1 being added to the grid on 4 April 1984 and unit 2 on 25 July 1985. Built during the height of Apartheid, the plant was attacked by members of the then underground African National Congress (ANC), who detonated four bombs at the site on 20 December 1982. It has also been the target for anti-nuclear groups like Greenpeace Africa and has been the site of continuous protests in recent years. The plant is owned by the state energy company Eskom, which states that Koeburg is one of the safest of the top-ranking PWRs of its class in the world. In April 2019, Eskom announced that the plant would be revamped to expand its lifespan by 20 years to 2044.
  • 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 U.K. Gloomy Outlook recovery with multi economical crisises NewBase + Bloomberg + CNBC Economists are growing increasingly pessimistic about the outlook for the U.K. recovery, leaving them at odds with markets on the prospects for rapid Bank of England interest rate hikes. The outlook for U.K. growth next year was trimmed by 0.4 percentage points to 5.1%, the sharpest reduction for any major European economy, according to a monthly survey by Bloomberg published Monday. Analysts expect no increase in the BOE’s key rate, currently at 0.1%, until May, with another hike coming in November. While that’s more aggressive than previously forecast, the findings still mark a sharp contrast with the outlook from financial markets, where investors have loaded up on bets for tighter BOE policy in recent weeks. A flurry of hawkish comments from some officials have left traders anticipating the first post-pandemic increase from the central bank coming by the end of this year, and rates hitting 1% by December 2022. Economists also boosted their inflation forecasts, predicting readings above the BOE’s 2% target through the first quarter of 2023. The central bank expects inflation to exceed 4% later this year and then fall back to 2.6% by the third quarter of 2022.
  • 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 The GDP forecasts mean Britain’s economy would reach its pre-Covid level of output in the first quarter of 2022, three months later than previously anticipated. Unemployment is expected to peak at 5% in the first half of next year, slightly later and lower than previously thought. That indicates that most of the around 1 million people estimated to have been on furlough when government support ended last month will find work.
  • 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 Gas crisis, labor shortages and supply chain chaos: Post-Brexit Britain faces a difficult winter The U.K. has emerged from the Covid-19 pandemic to find itself faced with an onslaught of new economic crises that have left the country in “a precarious position,” experts have warned. A perfect storm of labor shortages, skyrocketing natural gas prices and global supply chain constraints have put the country in prime position for a difficult winter. Rising demand as economies reopen has created similar problems all over the world, but economists argue that Brexit has exacerbated these issues for Britain. Labor shortages Britain has an estimated shortage of 100,000 truck drivers, which haulage organizations have largely attributed to a post-Brexit exodus of EU nationals. The lack of truck drivers has disrupted deliveries, leading to empty store shelves, backlogs at ports and dry gas stations, which sparked a panic buying frenzy in September that lasted weeks. Other sectors have also warned of deepening labor shortages that are expected to damage the availability and price of goods in the runup to Christmas. Britain’s National Pig Association has warned that up to 120,000 pigs face being culled within weeks because of a lack of butchers and abattoir workers. In a statement on Friday, the vice president of the U.K.’s National Union of Farmers said labor shortages across the food supply chain remained acute, while the CEO of the U.K. Warehousing Association said in September that industries including warehousing, engineering and transport were all experiencing severe worker shortages.
  • 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 At the end of September, the Confederation of British Industry — which represents 190,000 businesses — said its latest data showed 70% of companies were planning pay rises in a bid to tackle labor shortages. The U.K. government has issued thousands of temporary visas for truck drivers, butchers and agricultural workers, but some critics have argued that this is insufficient to lure foreign workers. Risk to future growth Riccardo Crescenzi, a professor of economic geography at the London School of Economics, expressed some skepticism about the solutions being offered by the government. “Offering three-month [visas] might not work while the rest of the EU is booming because of the injection of resources allowed for its recovery plan,” he told CNBC in a phone call. “And there is not really an unemployment problem in the U.K., so I struggle to see where drivers would come from in the domestic economy.” Crescenzi said it was hard to know if the issues were temporary. “Some of these shortages could become structural, and this is a problem that can seriously constrain future growth.” The Ripple Effect of the UK Gas Shortage Sam Roscoe, senior associate professor in operations and supply chain management at the University of Sussex, warned that shortages would persist in the U.K. unless there were fundamental changes to the country’s immigration system. “Brexit was sold as a vote on immigration independence, the U.K. labor market and making sure that everybody in the U.K. had jobs to go to, but the issue is we have 5% unemployment,” he said via telephone. “We’ve lost access to 27 member countries and the labor pool that was once available there, especially in terms of so-called low-skilled labor. I think that definitely puts us in a precarious position.” Roscoe said it would take years to get enough Brits trained and licensed to drive heavy goods vehicles. “In the meantime, the reality is we’re going to have labor shortages unless the visa rules change.” Spending power threatened In a note on Thursday, Credit Suisse economists warned that U.K. consumers “face headwinds in the next few months,” including elevated inflation, supply shortages and the tightening of monetary policy. “We think real disposable incomes for the U.K. consumer can fall by about 1.5% in 2022, the biggest fall since 2011,” the note’s authors predicted. Helen Dickinson, head of the British Retail Consortium, told ITV News Thursday that three in five CEOs said they would have to raise prices by the end of the year due to supply chain problems. Some 10% said they had already done so. Charalambos Pissouros, head of research at JFD Group, said he believed panic buying and supply shortages in the U.K. might also impact spending power by damaging sterling’s value. “I see the risk surrounding the future of the British pound as tilted to the downside,” he told CNBC. “How severe any further tumble may be depends on how long the situation stays unresolved. Quick responses like the involvement of the British military could restore economic performance sooner
  • 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 than thought and halt sterling’s fall, and this could also allow the Bank of England to proceed freely with its tightening plans.” Government response to crises ‘alarming’ It comes as Britain also faces an energy crisis. Several U.K. energy suppliers have collapsed since September as wholesale gas prices climbed to record highs. While the problem has affected markets worldwide, the U.K. is particularly vulnerable because of its reliance on gas; more than 22 million households are connected to the British gas grid. Meanwhile in Europe — which is also battling rising prices — the European Commission on Wednesday published a “toolbox” that member states could use “to address the immediate impact of current [gas] price increases, and further strengthen resilience against future shocks.” Crescenzi told CNBC that the EU can count on the strength of its single market, “which means global shocks like the gas price crisis can be dealt with more effectively with significantly more room for manoeuvre.” “Following Brexit, the U.K. could still coordinate its response to the crisis with its most important trade and investment partner to ensure the best possible protection for its firms and citizens,” he added. “However, measures put out by the U.K. government remain unclear, let alone a strategy to coordinate with external partners. This is alarming.” EU-U.K. relations have been under strain in recent weeks amid disputes over the Northern Ireland protocol, a special trade deal introduced to avoid a hard border between Northern Ireland and the Republic of Ireland. Officials have publicly argued on Twitter over the proposals — dubbed the “biggest source of mistrust” between both sides by U.K. Brexit Minister David Frost — and met to discuss proposed changes in Brussels on Friday.
  • 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 China:Early Freeze Adds to the Nation’s Energy Crisis Bloomberg + NewBase Plunging temperatures across parts of China have sparked an early start to the winter heating season, likely lifting power demand and intensifying the nation’s energy crisis. Temperatures have dropped more than 10 degrees Celsius (50 Fahrenheit) in recent days across most of eastern China, and snow has begun to fall in parts of Inner Mongolia and Heilongjiang, according to the China Meteorological Administration. The agency initiated a level four emergency response on Friday because of the cold wave. China thermal coal futures extended a stratospheric rally in Monday trading as some provinces signaled they’ll bring forward the start of the traditional heating season, when local government- controlled systems -- typically powered by coal or gas -- are fired up to warm residents’ homes through the winter months. Jilin, a northeast province that suffered blackouts last month amid low coal supplies, began winter heating operations on Oct. 15, earlier than usual, with coal inventories at about 85% of capacity, according to local reports. Thermal coal futures on the Zhengzhou Commodity Exchange rose as much as 8% to 1,828 yuan a ton ($284) Monday, the highest intraday price on record. China has been pushing coal miners to boost output and expects to continue curtailing power supplies to large, energy-intensive users through the winter to make sure supplies can meet winter heating demands. Leaders are also speeding up market reforms, allowing electricity prices to rise higher to incentivize power plants to keep generating despite lofty coal prices. Rates have risen by the maximum of 20% in provinces including Jiangsu and Shandong since the reforms went into effect on Friday, Securities Daily reported.
  • 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 NewBase October 19-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices reverse earlier losses on China energy demand concerns Reuters + NewBase Oil prices rose on Tuesday, recouping earlier losses, as falling temperatures in China, the world's biggest energy consumer, revived concerns about its ability to meet heating demand needs amid power and coal shortages. Brent crude rose 24 cents, or 0.3%, to $84.57 a barrel by 0541 GMT after falling 0.6% on Monday. The contract is still up nearly 7% this month. U.S. West Texas Intermediate futures gained 35 cents, or 0.4%, to $82.79 a barrel, having risen 0.2% in the previous session and nearly 10% this month. Brent fell on Monday after China released growth figures that disappointed the market but with temperatures falling as the northern hemisphere winter approaches and heating demand increasing, prices of oil, coal and natural gas are likely to remain elevated, traders and analysts said. Colder weather has already started to grip China, with the temperature forecast to fall to near freezing in northern areas, according to AccuWeather.com. Oil price special coverage
  • 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 "Tightness in energy markets meant supply side issues remain prevalent and commodities prices remain supported," said an energy derivatives trader based in Singapore. Coal futures in China rose as much as 7.8% on Tuesday, while riskier assets like equities were also higher. The rising coal and natural gas prices in Asia are expected to cause some end-users to switch to lower-cost oil as an alternative. However, the power crunch that is sending prices higher is also hurting Chinese economic growth, which fell to the lowest in a year, according to official data on Monday. read more China's daily crude oil processing rate also fell again last month to the lowest level since May last year. read more Helping keep a lid on prices, U.S. oil output is set to rise. Production in the largest shale formation in the U.S., the world's biggest oil producer, is expected to gain further next month, according to an official report.
  • 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 – Oct - 07- -2021 Renewables will account for most global generation increases, but coal use remains high by 2050……. …..U.S. EIA, International Energy Outlook 2021 (IEO2021) In the Reference case of our International Energy Outlook 2021 (IEO2021), where we assume current laws and regulations continue into the future, we project that renewable resources— particularly solar and wind—will be the largest contributor to the growth in electricity generation through 2050. However, certain regions will still mainly use coal resources for electricity generation. Of the world’s existing coal-fired generating capacity, 99% consists of boilers and steam turbine units that are as much as 30% less efficient than natural gas-fired combined-cycle units that use the latest technology. Because natural gas-fired generators are more efficient than coal-fired generators at converting fuel to electricity, natural gas-fired generation is often a lower-cost option, even if the fuel price of natural gas is slightly higher than the fuel price of coal.
  • 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 However, the absence of regional carbon policies or regulations along with rising natural gas prices after 2030—particularly in Asia and in regions that rely on higher-cost liquefied natural gas (LNG)— is likely to make coal the most economical generation fuel to pair with increased intermittent generation from wind and solar. This shift reverses the trend observed over recent decades. Although the cost of mining coal will likely raise coal prices after 2030, we project that coal prices will remain low relative to natural gas prices and provide a cost-competitive option to natural gas-fired generation. Increases in coal-fired generation in Other non-OECD Asia—which includes Indonesia, Vietnam, and Thailand, among other countries—will account for over 75% of our projected increase in global coal-fired generation from 2030 to 2050. For Other non-OECD Asia, we project that renewable energy sources will account for about 60% of the generation increase over the projection period, primarily from wind and solar. Coal-fired generation will account for nearly all of the remaining growth. Source: U.S. Energy Information Administration, International Energy Outlook 2021 (IEO2021) Reference case Other non-OECD Asia is a geographically diverse region. Several countries in the region have limited domestic natural gas resources and have constrained access to natural gas pipelines and LNG regasification terminals. In 2030, we project that coal-fired generation will start displacing some natural gas-fired generation in Other non-OECD Asia because of abundant coal resources that can be competitively mined,
  • 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 natural gas prices that are projected to increase after 2030, and a lack of carbon policies or regulations in the region. Coal-fired generation will steadily increase in Other non-OECD Asia through 2050; coal’s share of the region’s generation mix is projected to increase from 33% in 2020 to almost 50% in 2050. Today’s pledges cover less than 20% The APS sees a doubling of clean energy investment and financing over the next decade, but this acceleration is not sufficient to overcome the inertia of today’s energy system. In particular, over the crucial period to 2030, the actions in this scenario fall well short of the emissions reductions that would be required to keep the door open to a Net Zero Emissions by 2050 trajectory. One of the key reasons for this shortfall is that today’s climate commitments, as reflected in the APS, reveal sharp divergences between countries in the pledged speeds of their energy transitions. Global emissions by scenario, 2000-2050 Alongside its achievements, this scenario also contains the seeds of new divisions and tensions, in the areas of trade in energy-intensive goods, for example, or in international investment and finance. Successful, orderly and broad-based energy transitions depend on finding ways to lessen the tensions in the international system that are highlighted in the APS. All countries will need to do more to align and strengthen their 2030 goals and make this a collaborative global transition in which no one is left behind.
  • 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 Risk of more turbulence ahead for energy markets The world is not investing enough to meet its future energy needs, and uncertainties over policies and demand trajectories create a strong risk of a volatile period ahead for energy markets. Transition-related spending is gradually picking up, but remains far short of what is required to meet rising demand for energy services in a sustainable way. The deficit is visible across all sectors and regions. At the same time, the amount being spent on oil and natural gas, dragged down by two price collapses in 2014-15 and in 2020, is geared towards a world of stagnant or even falling demand for these fuels. Oil and gas spending today is one of the very few areas that it is reasonably well aligned with the levels seen in the NZE to 2030. IEA analysis has repeatedly highlighted that a surge in spending to boost deployment of clean energy technologies and infrastructure provides the way out of this impasse, but this needs to happen quickly or global energy markets will face a turbulent and volatile period ahead. Clear signals and direction from policy makers are essential. If the road ahead is paved only with good intentions, then it will be a bumpy ride indeed.
  • 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 19 October 2021 - Issue No. 1464 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.
  • 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
  • 23. 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 23
  • 24. 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 24 For Your Recruitments needs and Top Talents, please seek our approved agents below