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NewBase Energy News 22 September - Issue No. 1457 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oman: PDO’s Yibal Khuff mega project comes on stream
Oman Observer + NewBAse
Petroleum Development Oman’s (PDO) Yibal Khuff Project (YKP) has started production, marking
a key milestone for the landmark facility. The installation’s first sour wells were opened earlier this
month introducing sour oil to the YKP Central Processing Facility, and the project has already
started exporting crude oil to the Main Oil Line.
The plant’s capacity will be ramped up over the coming months. Spanning an area of 1.68km2, YKP
is the second largest, and most technically complex project in PDO’s history – with Covid-19 adding
another layer of complexity over the past two years of construction and commissioning activities.
YKP is of a high strategic value towards meeting Oman’s growing medium and long- term oil and
gas demands, as well as reducing PDO’s net non-associated gas import.
The mega project will be delivering – when fully operational – five million cubic metres of gas per
day and around 20,000 bpd of crude.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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PDO Managing Director Steve Phimister said: “The YKP coming on stream is a source of great
pride for PDO. Despite the challenging environment and scale of this project, the project team were
able to stay the course and deliver the project with an amazing HSE record, exceeding 46 million
Lost Time Injury-free manhours. Both Company and contractor staff have shown outstanding
dedication and commitment to overcome many hurdles to reach this stage of the project.”
Around 1,200 Omanis have been employed on site in the construction of the facilities, with a further
200 nationals deployed as fully qualified welders. Around $400 million were also awarded to Omani
companies for the provision of goods and services.
This project has achieved several significant firsts, including the first to deliver the tallest column
ever fabricated for PDO in Oman. This ‘Made in Oman’ acid gas recovery unit absorber stands at
48 metres high, four metres in
diameter, and weighs 291 tonnes.
It has also delivered one of PDO’s first
Steam Turbine Generators, taking the
heat from some of the facilities’
processes and using it to generate
steam. The plant will be able to
generate 13MW of electrical power,
supplementing the 45MW of the Yibal
Khuff Power plant.
YKP Project Manager Munir al
Hammadi said: “In addition to safety,
the project team maintained quality as
another main driver throughout the
execution of the project, ensuring an
elaborate Quality Assurance and
Control scheme was in place resulting
in a world-class quality delivery of the
project.
The project is also considered the first
to allocate a scope for SMEs whilst
ensuring the full development of the
deployed 200 Omani welders
including their redeployment to other
projects. It is worth highlighting that
this team of Omani welders have
managed to successfully complete
the highest diameter welds in the
project.
“We are very proud of this milestone and thank the all the teams as well as individuals who stood
up to the challenges to achieve this major milestone.”
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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U.A.E: Gas to play pivotal role in powering UAE's economic
growth for next 50 years: Al Jaber. Wam/Dubai
Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing
Director and Group CEO of Adnoc. The UAE is strengthening its position as a regional leader in
natural gas and the emerging blue Hydrogen market.
Natural gas is set to play a pivotal role in powering economic growth in the UAE over the next 50
years, according to Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and
Managing Director and Group CEO of the Abu Dhabi National Oil Company (Adnoc).
Delivering the opening address of Gastech 2021, Dr Al Jaber highlighted the UAE's leadership in
natural gas and said "natural gas will support the nation’s vision for economic growth as set out by
the Leadership in the 'Principles of the Fifty'."
"The Principles of the Fifty is a mandate for progress driven by 10 guiding principles aimed at making
the UAE the most dynamic economy in the world. Gas will play a pivotal role in this blueprint for
growth, as the essential fuel stock for our downstream hub in Ruwais and our industrial joint venture,
TA’ZIZ," Dr Al Jaber said.
Speaking virtually, he explained that the UAE is strengthening its position as a regional leader in
natural gas and the emerging blue Hydrogen market. He attributed this leadership position to the
foresight of the Founding Founder of the UAE, the late Sheikh Zayed bin Sultan Al Nahyan, who
recognised the enormous potential natural gas offered and the need to balance economic growth
with environmental protection.
"Our Founding Father Sheikh Zayed's commitment to the environment and truly sustainable
development was the key driver. In 1973, at his direction, ADNOC stopped burning the associated
gas from all its operations, and instead captured it and shipped it.
"In short," Dr. Al Jaber added, "we turned an environmental liability into a commercial opportunity.
From that moment, when it came to gas, we never looked back. For almost fifty years the UAE has
viewed gas in all its forms as one big opportunity, and we've built our gas business on a number of
firsts."
He pointed out that the country was the first in the region to stop flaring and find economic uses for
gas, the first to build a Liquefied Natural Gas (LNG) plant, the first to produce ultra-sour gas at an
industrial scale, and the first to store carbon dioxide and use it in Enhanced Oil Recovery (EOR) to
liberate more gas.
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The UAE is on track to achieve gas self-sufficiency as Adnoc leverages advanced technologies to
expand into unconventional gas, tap into gas caps and unlock new reservoirs, as part of the
company’s integrated gas strategy launched in 2018.
"At the heart of this goal, is the expansion of our producing assets, like Shah and the development
of new ones, like the unique Umm Shaif gas cap and the Hail, Ghasha and Dalma project," Dr Al
Jaber stated, as he provided an update on Adnoc’s progress.
"Construction of artificial islands is underway and we are leveraging our experience in world-class
developments to ensure costs are minimised and commercial benefits maximized for all our
partners. Together, these projects will deliver over 3 billion standard cubic feet of gas per day,
enough to power several million homes."
He went on to share his perspectives on natural gas markets and the role natural gas will play in
the energy transition.
"As the world consolidates its recovery from the Covid-19 pandemic, LNG and broader gas markets
globally are tightening, with demand outpacing supply. Longer-term, the outlook is also robust,
driven particularly by markets in Asia. Today, gas provides almost one-quarter of the world’s energy
supply and will continue to play a critical role in the global energy system. No other fuel source can
reliably supply the baseload power to heat and cool homes, drive heavy industry and expand
economies, all while keeping emissions at a minimum."
Dr Al Jaber added that as innovations are helping to make gas even cleaner and more sustainable,
the UAE is applying technology to create zero-carbon fuels from gas such as Hydrogen. "Already
at Adnoc, we produce about 300,000 tons of hydrogen a year. By leveraging our existing gas
infrastructure and commercial-scale CCUS capabilities, the UAE can and will become a major
player in the emerging blue hydrogen market."
Concluding his remarks, Dr Al Jaber extended an open invitation for partnership in the UAE’s gas
industry, noting that building strong partnerships across the world is one of the key principles for the
UAE’s economic vision. "This has always been at the center of our approach to growth and it will
remain the key to the future."
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Germans’ Green Energy Resolve Faces Pain in Post-Election Winter
Bloomberg - Vanessa Dezem, William Wilkes and Birgit Jennen
Germany’s clean-energy leanings will be tested as Europe’s largest economy starts
facing the bill, and an initial reckoning could come as soon as this winter.
A rebound in demand and tight supplies have driven power, gas and carbon prices in Europe to a
string of records. Wholesale gas doubled in the last three months, power jumped more than 60%,
while oil rose about 10%. The combination has helped boost inflation in the euro area and is due to
hit consumers in the coming months as prices get passed on.
Yet ahead of Sunday’s election to determine Chancellor Angela Merkel’s successor, the turmoil has
barely caused a blip in campaign rhetoric, despite Germany already burdened with the highest
electricity prices in Europe.
In a debate between the three candidates over the weekend, there was widespread agreement that
the country needs to accelerate its expansion of renewable power. The biggest dissent was over
the pace of the transition and how to share the burden.
That could change in the coming months if the energy crunch squeezes businesses and makes it
tough for some Germans to afford heating, posing a challenge just as the new government gets up
and running.
“It could become dangerous politically,” said Hanns Koenig, head of the Berlin office for Aurora
Energy Research.
Germany’s Social Democrats are leading in the polls and have voiced a strong preference to form
an alliance with the Greens, which want solar panels on every new roof and 2% of land set aside
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for wind power. While the parties will probably need a third partner, they’re unlikely to compromise
on the environment.
“We need more tempo” on climate protection, Olaf Scholz -- the Social Democratic candidate who’s
the front-runner to succeed Merkel -- said during the debate on Sunday, calling clean electricity the
most important resource for the future.
That long-term vision could cause pain in the short term, with the energy squeeze set to make
Germany’s high prices even worse. The country has committed to phase out coal power, just as its
last nuclear plants are being shut down.
That means more natural gas will be needed to bridge the gap, while power grids are upgraded to
handle volatile swings in renewable generation when the sun doesn’t shine and the wind doesn’t
blow. Adding to the strain is the fact that demand is set to surge as Germany replaces combustion-
powered cars with electric vehicles.
For business people like Dieter Mannheim, the disruption could prove too much to handle.
Operations at his family-owned company -- Kärlicher Ton- und Schamottewerke Mannheim & Co.
KG, which refines and prepares high-grade clays for chemicals, building materials and other
industries -- are energy intensive.
Clay pits near the Rhine river need diesel-powered excavators, wheel loaders and bulldozers.
Refining plants use natural gas and electricity, as does a tunnel kiln, which fires clay at 1,200
degrees Celsius (2,200 degree Fahrenheit).
“The imprudence of politics consists above all in the fact that it punishes us for using the only
available energy without offering us an alternative,” he said. Pointing to growing competition from
Egypt, he added that “it’s foreseeable that this business will leave Germany.”
The costs of the energy transition could also disproportionately hit poorer Germans, a key
constituency for the SPD, which is already burdened by rising rents and fallout from the coronavirus
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pandemic. Around 2.1 million Germans have been pushed into a precarious economic situation,
according to a study by the Humboldt University in Berlin.
While energy poverty -- defined as an inability to heat one’s home or use basic appliances like
lighting -- is lower in Germany than in other European countries, there’s still around 2 million people
who can’t afford adequate heating, according to the country’s federal statistics office.
Inflation in Germany jumped in August to the highest level since 2008, mostly driven by energy
prices, with gasoline spiking due to summer travel. Germans paid 25% more to refuel their cars than
last year, and if the trend continues, it could intensify the sense that government policy has gone
awry.
“Gasoline prices are symbolic, and voters are typically very sensitive to it,” Stefan Kooths, director
of business cycle and growth at the Kiel Institute for the World Economy, an economic think tank in
Germany.
Aside from broader market trends, a national surcharge on transport and heating took effect in
January to nudge consumers to buy battery-powered cars and electric heat pumps.
To ease the burden, Merkel’s government has floated the prospect of an intervention, with Transport
Minister Andreas Scheuer earlier this month proposing a price break if gasoline and diesel exceed
2 euros a liter. Armin Laschet, the candidate from Merkel’s conservative bloc, rejected the plan but
said reducing fuel taxes could help soften the blow.
Despite all the tension, Germans are staunch supporters of climate protection with more than 80%
of voters saying more needs to be done. And the new government could use the looming crisis as
an opportunity to accelerate the country’s energy transition.
“This election is about setting the agenda and no longer accepting half measures on climate
protection,” Annalena Baerbock, the Greens candidate, said during the debate. “The next German
government needs to be a climate government.”
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U.K: energy firms fear collapse as Europe’s gas prices surge 250%
CNBC - Chloe Taylor@CHLOETAYLOR141 + NewBase
Britain’s energy industry could be headed for a significant shake-up, industry insiders have warned,
as countries all over Europe grapple with an unprecedented crisis in the power sector. Wholesale
gas prices have spiked across the region, with the U.K. being hit particularly hard.
The front-month gas price at the Dutch TTF hub, a European benchmark for natural gas trading,
gained on Monday to trade at 73.150 euros ($85.69) per megawatt-hour, hovering close to the
record high seen last week.
In the U.K., day-ahead energy prices for Monday reached an average of 291.18 euros per
megawatt-hour, according to energy analysis firm LCP Enact. However, the maximum price for the
U.K. on Monday could be as high as 1,083.78 euros per megawatt-hour, LCP Enact’s analysis
showed.
Impact for energy firms
Robert Buckley, head of relationship development at Cornwall Insight, told CNBC that the crisis was
being caused by a “cocktail of pretty potent things” that were outside of suppliers’ control.
These included strong competition for natural gas deliveries between Europe and Asia, some
outages at U.S. production facilities, and a tightening of EU carbon market rules, as well as various
other factors.
“All suppliers will be finding it very tough at the moment,” Buckley said. “Some of them are bigger
and more resilient than others. But scale doesn’t automatically equal resilience.”
He added that “it looks like it’s going to get worse before it gets better” in terms of suppliers leaving
the British electricity and gas market.
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″[Suppliers are] caught between this rapture of the rising energy price wholesale market and the
default tariff cap, and depending on who you believe, this is anywhere up to £200, £250 [$273,
$341] below what a market-related cost would be at the moment, so that’s 20% of the total bill,” he
said, referring to a cap on consumer energy prices in Britain. “That’s -20% of gross margins. Very
few [companies] can sustain that for any length of time.”
Meanwhile, Bill Bullen, founder of U.K. supplier Utilita Energy, warned that surging wholesale prices
would inevitably lead to more insolvencies in the energy sector. “We’re heading back to an oligopoly
at this rate and going backwards,” he said in an email Monday.
According to a report from Cornwall Insight, in the fourth quarter of 2010, the six largest energy
firms supplied 99.5% of the domestic energy market in the U.K. By the second quarter of 2021, that
figure had fallen to 69.1%.
Start-up Bulb, the country’s sixth-largest supplier, is seeking a bailout, while four smaller competitors
recently ceased trading, the BBC reported.
According to industry body OGUK, wholesale energy prices have surged with a 70% rise since
August alone. “OGUK predicts that UK North Sea output will roughly halve by 2027 unless new
fields are opened, making the U.K. even more reliant on imports,” Will Webster, the organization’s
energy policy manager, told CNBC via email.
A spokesperson for British energy regulator Ofgem told CNBC in an emailed statement, “This is a
global issue … Ofgem is working closely with government to manage the wider implications of the
global gas price increase.”
2021
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U.S: World’s longest-operating solar thermal facility is retiring
most of its capacity. Source: U.S. Energy Information Administration, Preliminary Electric Generator Inventory
The Solar Energy Generating Systems (SEGS) facility in California’s Mojave Desert retired five of
its solar plants (SEGS 3 through 7) in July 2021 and plans to retire a sixth (SEGS 8) in September
2021, based on information submitted to EIA and published in our Preliminary Electric Generator
Inventory.
After SEGS 8 is retired, only one solar thermal unit at SEGS will remain operating (SEGS 9). SEGS,
which began operating in 1984, is the world’s longest-operating solar thermal power facility.
Note: SEGS 1 and SEGS 2 were replaced by photovoltaic systems Sunray 2 and Sunray 3, respectively, in 2017
aftebeing decommissioned. They appear in EIA data as Sunray 2 and Sunray 3.
Solar thermal power plants use mirrors to focus sunlight onto a receiver, which absorbs and
converts the sunlight into thermal energy (heat). The heat is used to drive a turbine, which produces
electricity.
The SEGS units are parabolic trough concentrating solar thermal power (CSP) systems, meaning
that parabolic (u-shaped) mirrors capture and concentrate sunlight to heat synthetic oil in a central
tube, which then boils water to create steam. The steam drives the turbine, generating electricity.
The 356-megawatt (MW) SEGS facility was originally made up of nine solar thermal plants. SEGS
1 and 2 were retired in 2015 and replaced with two solar photovoltaic (PV) farms, Sunray 2 and
Sunray 3. SEGS 3 through 7 (each with 36 MW of capacity) came online from 1986 to 1988. SEGS
8 and 9 (each with 88 MW of capacity) came online in 1989 and 1990, respectively.
Solar thermal plants account for a relatively small share of utility-scale U.S. solar electric generating
capacity. As of June 2021, the United States had about 52,600 MW of utility-scale solar capacity.
Of that total, 3.3% was solar thermal; the remaining 96.7% was utility-scale solar PV.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Although solar capacity in the United States is increasing rapidly, most of the capacity additions in
recent years have been solar PV. About 42,000 MW of utility-scale PV capacity was added to the
U.S. power grid between 2015 and June 2021; no additional solar thermal capacity has been added
since the Crescent Dunes plant came online in 2015.
Based on data that developers and power plant owners have reported to EIA, one utility-scale solar
thermal plant is planned to come online in the next five years in the United States: Arizona’s 200-
MW La Paz Solar Tower. According to trade press and announced projects, several CSP projects
are planned or are in development in other countries.
Solar Energy Generating Systems (SEGS)
is a concentrated solar power plant in California, United States. With the combined capacity from
three separate locations at 354 megawatt (MW), it is the world's second largest solar thermal
energy generating facility, after the commissioning of the even larger Ivanpah facility in 2014.
It consists of nine solar power plants in California's Mojave Desert, where insolation is among the
best available in the United States. SEGS I–II (44 MW) are located
at Daggett (34°51′45″N 116°49′45″W), SEGS III–VII (150 MW) are installed at Kramer
Junction (35°00′43″N 117°33′32″W), and SEGS VIII–IX (160 MW) are placed at Harper
Lake (35°01′55″N 117°20′50″W).
NextEra Energy Resources operates and partially owns the plants located at Kramer Junction. On
January 26, 2018, the SEGS VIII and IX at Harper Lake were sold to renewable energy company
Terra-Gen, LLC. A tenth plant (SEGS X, 80 MW) had been in construction and SEGS XI and SEGS
XII had been planned by Luz Industries, but the developer filed for bankruptcy in 1992, because it
was unable to secure construction financing.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase September 22-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises over 1% after report of big draw in U.S. crude stocks
Reuters + NewBase
Oil prices climbed more than 1% on Wednesday, extending overnight gains after industry data
showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes,
highlighting tight supply as demand improves.
U.S. West Texas Intermediate (WTI) crude futures rose 89 cents, or 1.65%, to $71.65 a barrel at
07.36 GMT, adding to a 35 cent gain from Tuesday. Brent crude futures climbed 110 cents, or
1.48%, to $75.46 a barrel, after gaining 44 cents on Tuesday.
After coming under pressure on Monday on broad market jitters over the possible default of Chinese
property developer China Evergrande Group, the oil market’s focus turned to tight supply issues.
Oil price special
coverage
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“Crude is supported by API weekly report which noted a bigger-than-expected decline in U.S. crude
oil stocks,” said Ravindra Rao, vice president of commodities at Kotak Securities.
“Prices are still rangebound ahead of EIA weekly report due later today and ahead of U.S. Federal
Reserve’s monetary policy decision ... In the near term, crude may move with larger markets with
focus on China and Fed policy.”
U.S. crude stocks fell by 6.1 million barrels for the week ended Sept. 17, market sources said, citing
figures from the American Petroleum Institute on Tuesday. That was a much bigger decline than
the 2.4 million-barrel drop in crude inventories that 10 analysts polled by Reuters had expected on
average.
The market will be watching for data from the U.S. Energy Information Administration on Wednesday
to confirm the big drops in crude and fuel stocks. [EIA/S]
“Given the variety of supportive factors in the energy space, notably sky high natural gas prices,
which increase oil’s appeal as a substitute, and robust physical demand, dips in prices right now
are likely to be short-lived,” said Jeffrey Halley, analyst at brokerage OANDA.
Global gas prices are expected to break records this winter as a hot northern hemisphere summer
leaves inventories low in key markets.
Supply is expected to remain tight after Royal Dutch Shell, the largest U.S. Gulf of Mexico producer,
said damage to its offshore transfer facilities would cut production into early next year.
Further supporting the market, some producers in the Organization of the Petroleum Exporting
Countries and their allies, together called OPEC+, are struggling to increase output up to their
targeted levels, sources told Reuters. Most of the shortfall is from Nigeria, Angola and Kazakhstan.
Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Special Coverage
The Energy world – Sep - 22- -2021
Here’s Why Europe, Desperate for Gas, Isn’t Buying LNG
Bloomber - Anna Shiryaevskaya
A record rally in natural gas prices in Europe doesn’t mean it’s become lucrative to send every
available molecule to the region.
Even though European prices have more than tripled this year, they are yet to beat rates for the
liquefied fuel delivered to Asia, the biggest importing region. That’s because countries from Japan
to India are panic-buying before the winter, heightening competition for the small fraction of the
supply that trades freely in the spot market and isn’t tied to long-term contracts.
Gas markets in Europe, Asia and the U.S. are connected through the LNG trade, so moves in one
region could redirect flows.
As the world’s biggest traders and producers meet in Dubai for the Gastech conference -- the first
major in-person event for the industry since the onset of the coronavirus pandemic -- LNG
purchases will be a key topic of discussion as nations seek to keep the lights on and people warm
this winter.
Here are five charts explaining why Europe hasn’t been getting enough LNG and what it will take to
turn that around.
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1. Where Is the LNG?
Europe went from surplus to scarcity in just two years. That’s because of soaring demand in Asia,
as China quickly emerged from the global pandemic. The worst drought in a decade in Brazil also
compounded to the shortfall, as the nation turned to LNG to produce electricity normally generated
by hydropower dams. All of that left very few cargoes for Europe, with imports slumping since the
start of June.
2. Long-term Contracts
Most LNG is locked in long-term contracts and the majority is destined for Asia. So, what traders
have to play with is actually less than half of total supply. These contracts are usually linked to crude
oil, which is currently cheaper than gas prices at European hubs or LNG in Asia. That means
countries are likely to stick to their contracts, leaving less available for the spot market.
“Long-term contractual volumes are in the money and you will definitely bring that cargo,” said
Ciaran Roe, global director for LNG at S&P Global Platts.
3. Mind the Gap
The first step to figuring out who wins the battle for cargoes is watching the gap between prices in
Europe and Asia. In the financial world, that means watching the spread between futures traded in
the Netherlands and the Japan-Korea Marker, the spot price in northeast Asia.
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“If you have a spot cargo, you will deliver it wherever you see the best netback,” said Stacey Morris,
director of research at Dallas-based index provider Alerian. “It is going to be very competitive.”
4. Beyond the Spread
But it’s not all about the spread. What really matters is the cost of the cargo when it actually lands
in Europe. At the moment, the premium of 16 cents over the futures makes LNG purchases unlikely.
“Unless this changes, you won’t have much spot LNG in Europe,” Roe said.
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5. Shipping Costs
The best market for LNG is also determined by how much it costs to bring a cargo to Europe or to
Asia. For example, if freight rates for LNG are high, there is a higher chance that Atlantic LNG will
stay in the region rather than taking longer journeys to Asia, Roe said.
To avoid last winter’s shortage of vessels and unprecedented costs to secure a spot tanker, traders
have been booking ships earlier this year.
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
NewBase Energy News 22 September 2021 - Issue No. 1457 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 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 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
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New base 22 septempber 2021 energy news issue 1457 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 22 September - Issue No. 1457 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oman: PDO’s Yibal Khuff mega project comes on stream Oman Observer + NewBAse Petroleum Development Oman’s (PDO) Yibal Khuff Project (YKP) has started production, marking a key milestone for the landmark facility. The installation’s first sour wells were opened earlier this month introducing sour oil to the YKP Central Processing Facility, and the project has already started exporting crude oil to the Main Oil Line. The plant’s capacity will be ramped up over the coming months. Spanning an area of 1.68km2, YKP is the second largest, and most technically complex project in PDO’s history – with Covid-19 adding another layer of complexity over the past two years of construction and commissioning activities. YKP is of a high strategic value towards meeting Oman’s growing medium and long- term oil and gas demands, as well as reducing PDO’s net non-associated gas import. The mega project will be delivering – when fully operational – five million cubic metres of gas per day and around 20,000 bpd of crude.
  • 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 PDO Managing Director Steve Phimister said: “The YKP coming on stream is a source of great pride for PDO. Despite the challenging environment and scale of this project, the project team were able to stay the course and deliver the project with an amazing HSE record, exceeding 46 million Lost Time Injury-free manhours. Both Company and contractor staff have shown outstanding dedication and commitment to overcome many hurdles to reach this stage of the project.” Around 1,200 Omanis have been employed on site in the construction of the facilities, with a further 200 nationals deployed as fully qualified welders. Around $400 million were also awarded to Omani companies for the provision of goods and services. This project has achieved several significant firsts, including the first to deliver the tallest column ever fabricated for PDO in Oman. This ‘Made in Oman’ acid gas recovery unit absorber stands at 48 metres high, four metres in diameter, and weighs 291 tonnes. It has also delivered one of PDO’s first Steam Turbine Generators, taking the heat from some of the facilities’ processes and using it to generate steam. The plant will be able to generate 13MW of electrical power, supplementing the 45MW of the Yibal Khuff Power plant. YKP Project Manager Munir al Hammadi said: “In addition to safety, the project team maintained quality as another main driver throughout the execution of the project, ensuring an elaborate Quality Assurance and Control scheme was in place resulting in a world-class quality delivery of the project. The project is also considered the first to allocate a scope for SMEs whilst ensuring the full development of the deployed 200 Omani welders including their redeployment to other projects. It is worth highlighting that this team of Omani welders have managed to successfully complete the highest diameter welds in the project. “We are very proud of this milestone and thank the all the teams as well as individuals who stood up to the challenges to achieve this major milestone.”
  • 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 U.A.E: Gas to play pivotal role in powering UAE's economic growth for next 50 years: Al Jaber. Wam/Dubai Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of Adnoc. The UAE is strengthening its position as a regional leader in natural gas and the emerging blue Hydrogen market. Natural gas is set to play a pivotal role in powering economic growth in the UAE over the next 50 years, according to Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (Adnoc). Delivering the opening address of Gastech 2021, Dr Al Jaber highlighted the UAE's leadership in natural gas and said "natural gas will support the nation’s vision for economic growth as set out by the Leadership in the 'Principles of the Fifty'." "The Principles of the Fifty is a mandate for progress driven by 10 guiding principles aimed at making the UAE the most dynamic economy in the world. Gas will play a pivotal role in this blueprint for growth, as the essential fuel stock for our downstream hub in Ruwais and our industrial joint venture, TA’ZIZ," Dr Al Jaber said. Speaking virtually, he explained that the UAE is strengthening its position as a regional leader in natural gas and the emerging blue Hydrogen market. He attributed this leadership position to the foresight of the Founding Founder of the UAE, the late Sheikh Zayed bin Sultan Al Nahyan, who recognised the enormous potential natural gas offered and the need to balance economic growth with environmental protection. "Our Founding Father Sheikh Zayed's commitment to the environment and truly sustainable development was the key driver. In 1973, at his direction, ADNOC stopped burning the associated gas from all its operations, and instead captured it and shipped it. "In short," Dr. Al Jaber added, "we turned an environmental liability into a commercial opportunity. From that moment, when it came to gas, we never looked back. For almost fifty years the UAE has viewed gas in all its forms as one big opportunity, and we've built our gas business on a number of firsts." He pointed out that the country was the first in the region to stop flaring and find economic uses for gas, the first to build a Liquefied Natural Gas (LNG) plant, the first to produce ultra-sour gas at an industrial scale, and the first to store carbon dioxide and use it in Enhanced Oil Recovery (EOR) to liberate more gas.
  • 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 The UAE is on track to achieve gas self-sufficiency as Adnoc leverages advanced technologies to expand into unconventional gas, tap into gas caps and unlock new reservoirs, as part of the company’s integrated gas strategy launched in 2018. "At the heart of this goal, is the expansion of our producing assets, like Shah and the development of new ones, like the unique Umm Shaif gas cap and the Hail, Ghasha and Dalma project," Dr Al Jaber stated, as he provided an update on Adnoc’s progress. "Construction of artificial islands is underway and we are leveraging our experience in world-class developments to ensure costs are minimised and commercial benefits maximized for all our partners. Together, these projects will deliver over 3 billion standard cubic feet of gas per day, enough to power several million homes." He went on to share his perspectives on natural gas markets and the role natural gas will play in the energy transition. "As the world consolidates its recovery from the Covid-19 pandemic, LNG and broader gas markets globally are tightening, with demand outpacing supply. Longer-term, the outlook is also robust, driven particularly by markets in Asia. Today, gas provides almost one-quarter of the world’s energy supply and will continue to play a critical role in the global energy system. No other fuel source can reliably supply the baseload power to heat and cool homes, drive heavy industry and expand economies, all while keeping emissions at a minimum." Dr Al Jaber added that as innovations are helping to make gas even cleaner and more sustainable, the UAE is applying technology to create zero-carbon fuels from gas such as Hydrogen. "Already at Adnoc, we produce about 300,000 tons of hydrogen a year. By leveraging our existing gas infrastructure and commercial-scale CCUS capabilities, the UAE can and will become a major player in the emerging blue hydrogen market." Concluding his remarks, Dr Al Jaber extended an open invitation for partnership in the UAE’s gas industry, noting that building strong partnerships across the world is one of the key principles for the UAE’s economic vision. "This has always been at the center of our approach to growth and it will remain the key to the future."
  • 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 Germans’ Green Energy Resolve Faces Pain in Post-Election Winter Bloomberg - Vanessa Dezem, William Wilkes and Birgit Jennen Germany’s clean-energy leanings will be tested as Europe’s largest economy starts facing the bill, and an initial reckoning could come as soon as this winter. A rebound in demand and tight supplies have driven power, gas and carbon prices in Europe to a string of records. Wholesale gas doubled in the last three months, power jumped more than 60%, while oil rose about 10%. The combination has helped boost inflation in the euro area and is due to hit consumers in the coming months as prices get passed on. Yet ahead of Sunday’s election to determine Chancellor Angela Merkel’s successor, the turmoil has barely caused a blip in campaign rhetoric, despite Germany already burdened with the highest electricity prices in Europe. In a debate between the three candidates over the weekend, there was widespread agreement that the country needs to accelerate its expansion of renewable power. The biggest dissent was over the pace of the transition and how to share the burden. That could change in the coming months if the energy crunch squeezes businesses and makes it tough for some Germans to afford heating, posing a challenge just as the new government gets up and running. “It could become dangerous politically,” said Hanns Koenig, head of the Berlin office for Aurora Energy Research. Germany’s Social Democrats are leading in the polls and have voiced a strong preference to form an alliance with the Greens, which want solar panels on every new roof and 2% of land set aside
  • 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 for wind power. While the parties will probably need a third partner, they’re unlikely to compromise on the environment. “We need more tempo” on climate protection, Olaf Scholz -- the Social Democratic candidate who’s the front-runner to succeed Merkel -- said during the debate on Sunday, calling clean electricity the most important resource for the future. That long-term vision could cause pain in the short term, with the energy squeeze set to make Germany’s high prices even worse. The country has committed to phase out coal power, just as its last nuclear plants are being shut down. That means more natural gas will be needed to bridge the gap, while power grids are upgraded to handle volatile swings in renewable generation when the sun doesn’t shine and the wind doesn’t blow. Adding to the strain is the fact that demand is set to surge as Germany replaces combustion- powered cars with electric vehicles. For business people like Dieter Mannheim, the disruption could prove too much to handle. Operations at his family-owned company -- Kärlicher Ton- und Schamottewerke Mannheim & Co. KG, which refines and prepares high-grade clays for chemicals, building materials and other industries -- are energy intensive. Clay pits near the Rhine river need diesel-powered excavators, wheel loaders and bulldozers. Refining plants use natural gas and electricity, as does a tunnel kiln, which fires clay at 1,200 degrees Celsius (2,200 degree Fahrenheit). “The imprudence of politics consists above all in the fact that it punishes us for using the only available energy without offering us an alternative,” he said. Pointing to growing competition from Egypt, he added that “it’s foreseeable that this business will leave Germany.” The costs of the energy transition could also disproportionately hit poorer Germans, a key constituency for the SPD, which is already burdened by rising rents and fallout from the coronavirus
  • 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 pandemic. Around 2.1 million Germans have been pushed into a precarious economic situation, according to a study by the Humboldt University in Berlin. While energy poverty -- defined as an inability to heat one’s home or use basic appliances like lighting -- is lower in Germany than in other European countries, there’s still around 2 million people who can’t afford adequate heating, according to the country’s federal statistics office. Inflation in Germany jumped in August to the highest level since 2008, mostly driven by energy prices, with gasoline spiking due to summer travel. Germans paid 25% more to refuel their cars than last year, and if the trend continues, it could intensify the sense that government policy has gone awry. “Gasoline prices are symbolic, and voters are typically very sensitive to it,” Stefan Kooths, director of business cycle and growth at the Kiel Institute for the World Economy, an economic think tank in Germany. Aside from broader market trends, a national surcharge on transport and heating took effect in January to nudge consumers to buy battery-powered cars and electric heat pumps. To ease the burden, Merkel’s government has floated the prospect of an intervention, with Transport Minister Andreas Scheuer earlier this month proposing a price break if gasoline and diesel exceed 2 euros a liter. Armin Laschet, the candidate from Merkel’s conservative bloc, rejected the plan but said reducing fuel taxes could help soften the blow. Despite all the tension, Germans are staunch supporters of climate protection with more than 80% of voters saying more needs to be done. And the new government could use the looming crisis as an opportunity to accelerate the country’s energy transition. “This election is about setting the agenda and no longer accepting half measures on climate protection,” Annalena Baerbock, the Greens candidate, said during the debate. “The next German government needs to be a climate government.”
  • 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 U.K: energy firms fear collapse as Europe’s gas prices surge 250% CNBC - Chloe Taylor@CHLOETAYLOR141 + NewBase Britain’s energy industry could be headed for a significant shake-up, industry insiders have warned, as countries all over Europe grapple with an unprecedented crisis in the power sector. Wholesale gas prices have spiked across the region, with the U.K. being hit particularly hard. The front-month gas price at the Dutch TTF hub, a European benchmark for natural gas trading, gained on Monday to trade at 73.150 euros ($85.69) per megawatt-hour, hovering close to the record high seen last week. In the U.K., day-ahead energy prices for Monday reached an average of 291.18 euros per megawatt-hour, according to energy analysis firm LCP Enact. However, the maximum price for the U.K. on Monday could be as high as 1,083.78 euros per megawatt-hour, LCP Enact’s analysis showed. Impact for energy firms Robert Buckley, head of relationship development at Cornwall Insight, told CNBC that the crisis was being caused by a “cocktail of pretty potent things” that were outside of suppliers’ control. These included strong competition for natural gas deliveries between Europe and Asia, some outages at U.S. production facilities, and a tightening of EU carbon market rules, as well as various other factors. “All suppliers will be finding it very tough at the moment,” Buckley said. “Some of them are bigger and more resilient than others. But scale doesn’t automatically equal resilience.” He added that “it looks like it’s going to get worse before it gets better” in terms of suppliers leaving the British electricity and gas market.
  • 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 ″[Suppliers are] caught between this rapture of the rising energy price wholesale market and the default tariff cap, and depending on who you believe, this is anywhere up to £200, £250 [$273, $341] below what a market-related cost would be at the moment, so that’s 20% of the total bill,” he said, referring to a cap on consumer energy prices in Britain. “That’s -20% of gross margins. Very few [companies] can sustain that for any length of time.” Meanwhile, Bill Bullen, founder of U.K. supplier Utilita Energy, warned that surging wholesale prices would inevitably lead to more insolvencies in the energy sector. “We’re heading back to an oligopoly at this rate and going backwards,” he said in an email Monday. According to a report from Cornwall Insight, in the fourth quarter of 2010, the six largest energy firms supplied 99.5% of the domestic energy market in the U.K. By the second quarter of 2021, that figure had fallen to 69.1%. Start-up Bulb, the country’s sixth-largest supplier, is seeking a bailout, while four smaller competitors recently ceased trading, the BBC reported. According to industry body OGUK, wholesale energy prices have surged with a 70% rise since August alone. “OGUK predicts that UK North Sea output will roughly halve by 2027 unless new fields are opened, making the U.K. even more reliant on imports,” Will Webster, the organization’s energy policy manager, told CNBC via email. A spokesperson for British energy regulator Ofgem told CNBC in an emailed statement, “This is a global issue … Ofgem is working closely with government to manage the wider implications of the global gas price increase.” 2021
  • 10. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 U.S: World’s longest-operating solar thermal facility is retiring most of its capacity. Source: U.S. Energy Information Administration, Preliminary Electric Generator Inventory The Solar Energy Generating Systems (SEGS) facility in California’s Mojave Desert retired five of its solar plants (SEGS 3 through 7) in July 2021 and plans to retire a sixth (SEGS 8) in September 2021, based on information submitted to EIA and published in our Preliminary Electric Generator Inventory. After SEGS 8 is retired, only one solar thermal unit at SEGS will remain operating (SEGS 9). SEGS, which began operating in 1984, is the world’s longest-operating solar thermal power facility. Note: SEGS 1 and SEGS 2 were replaced by photovoltaic systems Sunray 2 and Sunray 3, respectively, in 2017 aftebeing decommissioned. They appear in EIA data as Sunray 2 and Sunray 3. Solar thermal power plants use mirrors to focus sunlight onto a receiver, which absorbs and converts the sunlight into thermal energy (heat). The heat is used to drive a turbine, which produces electricity. The SEGS units are parabolic trough concentrating solar thermal power (CSP) systems, meaning that parabolic (u-shaped) mirrors capture and concentrate sunlight to heat synthetic oil in a central tube, which then boils water to create steam. The steam drives the turbine, generating electricity. The 356-megawatt (MW) SEGS facility was originally made up of nine solar thermal plants. SEGS 1 and 2 were retired in 2015 and replaced with two solar photovoltaic (PV) farms, Sunray 2 and Sunray 3. SEGS 3 through 7 (each with 36 MW of capacity) came online from 1986 to 1988. SEGS 8 and 9 (each with 88 MW of capacity) came online in 1989 and 1990, respectively. Solar thermal plants account for a relatively small share of utility-scale U.S. solar electric generating capacity. As of June 2021, the United States had about 52,600 MW of utility-scale solar capacity. Of that total, 3.3% was solar thermal; the remaining 96.7% was utility-scale solar PV.
  • 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 Although solar capacity in the United States is increasing rapidly, most of the capacity additions in recent years have been solar PV. About 42,000 MW of utility-scale PV capacity was added to the U.S. power grid between 2015 and June 2021; no additional solar thermal capacity has been added since the Crescent Dunes plant came online in 2015. Based on data that developers and power plant owners have reported to EIA, one utility-scale solar thermal plant is planned to come online in the next five years in the United States: Arizona’s 200- MW La Paz Solar Tower. According to trade press and announced projects, several CSP projects are planned or are in development in other countries. Solar Energy Generating Systems (SEGS) is a concentrated solar power plant in California, United States. With the combined capacity from three separate locations at 354 megawatt (MW), it is the world's second largest solar thermal energy generating facility, after the commissioning of the even larger Ivanpah facility in 2014. It consists of nine solar power plants in California's Mojave Desert, where insolation is among the best available in the United States. SEGS I–II (44 MW) are located at Daggett (34°51′45″N 116°49′45″W), SEGS III–VII (150 MW) are installed at Kramer Junction (35°00′43″N 117°33′32″W), and SEGS VIII–IX (160 MW) are placed at Harper Lake (35°01′55″N 117°20′50″W). NextEra Energy Resources operates and partially owns the plants located at Kramer Junction. On January 26, 2018, the SEGS VIII and IX at Harper Lake were sold to renewable energy company Terra-Gen, LLC. A tenth plant (SEGS X, 80 MW) had been in construction and SEGS XI and SEGS XII had been planned by Luz Industries, but the developer filed for bankruptcy in 1992, because it was unable to secure construction financing.
  • 12. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase September 22-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil rises over 1% after report of big draw in U.S. crude stocks Reuters + NewBase Oil prices climbed more than 1% on Wednesday, extending overnight gains after industry data showed U.S. crude stocks fell more than expected last week in the wake of two hurricanes, highlighting tight supply as demand improves. U.S. West Texas Intermediate (WTI) crude futures rose 89 cents, or 1.65%, to $71.65 a barrel at 07.36 GMT, adding to a 35 cent gain from Tuesday. Brent crude futures climbed 110 cents, or 1.48%, to $75.46 a barrel, after gaining 44 cents on Tuesday. After coming under pressure on Monday on broad market jitters over the possible default of Chinese property developer China Evergrande Group, the oil market’s focus turned to tight supply issues. Oil price special coverage
  • 13. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 “Crude is supported by API weekly report which noted a bigger-than-expected decline in U.S. crude oil stocks,” said Ravindra Rao, vice president of commodities at Kotak Securities. “Prices are still rangebound ahead of EIA weekly report due later today and ahead of U.S. Federal Reserve’s monetary policy decision ... In the near term, crude may move with larger markets with focus on China and Fed policy.” U.S. crude stocks fell by 6.1 million barrels for the week ended Sept. 17, market sources said, citing figures from the American Petroleum Institute on Tuesday. That was a much bigger decline than the 2.4 million-barrel drop in crude inventories that 10 analysts polled by Reuters had expected on average. The market will be watching for data from the U.S. Energy Information Administration on Wednesday to confirm the big drops in crude and fuel stocks. [EIA/S] “Given the variety of supportive factors in the energy space, notably sky high natural gas prices, which increase oil’s appeal as a substitute, and robust physical demand, dips in prices right now are likely to be short-lived,” said Jeffrey Halley, analyst at brokerage OANDA. Global gas prices are expected to break records this winter as a hot northern hemisphere summer leaves inventories low in key markets. Supply is expected to remain tight after Royal Dutch Shell, the largest U.S. Gulf of Mexico producer, said damage to its offshore transfer facilities would cut production into early next year. Further supporting the market, some producers in the Organization of the Petroleum Exporting Countries and their allies, together called OPEC+, are struggling to increase output up to their targeted levels, sources told Reuters. Most of the shortfall is from Nigeria, Angola and Kazakhstan.
  • 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 NewBase Special Coverage The Energy world – Sep - 22- -2021 Here’s Why Europe, Desperate for Gas, Isn’t Buying LNG Bloomber - Anna Shiryaevskaya A record rally in natural gas prices in Europe doesn’t mean it’s become lucrative to send every available molecule to the region. Even though European prices have more than tripled this year, they are yet to beat rates for the liquefied fuel delivered to Asia, the biggest importing region. That’s because countries from Japan to India are panic-buying before the winter, heightening competition for the small fraction of the supply that trades freely in the spot market and isn’t tied to long-term contracts. Gas markets in Europe, Asia and the U.S. are connected through the LNG trade, so moves in one region could redirect flows. As the world’s biggest traders and producers meet in Dubai for the Gastech conference -- the first major in-person event for the industry since the onset of the coronavirus pandemic -- LNG purchases will be a key topic of discussion as nations seek to keep the lights on and people warm this winter. Here are five charts explaining why Europe hasn’t been getting enough LNG and what it will take to turn that around.
  • 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 1. Where Is the LNG? Europe went from surplus to scarcity in just two years. That’s because of soaring demand in Asia, as China quickly emerged from the global pandemic. The worst drought in a decade in Brazil also compounded to the shortfall, as the nation turned to LNG to produce electricity normally generated by hydropower dams. All of that left very few cargoes for Europe, with imports slumping since the start of June. 2. Long-term Contracts Most LNG is locked in long-term contracts and the majority is destined for Asia. So, what traders have to play with is actually less than half of total supply. These contracts are usually linked to crude oil, which is currently cheaper than gas prices at European hubs or LNG in Asia. That means countries are likely to stick to their contracts, leaving less available for the spot market. “Long-term contractual volumes are in the money and you will definitely bring that cargo,” said Ciaran Roe, global director for LNG at S&P Global Platts. 3. Mind the Gap The first step to figuring out who wins the battle for cargoes is watching the gap between prices in Europe and Asia. In the financial world, that means watching the spread between futures traded in the Netherlands and the Japan-Korea Marker, the spot price in northeast Asia.
  • 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 “If you have a spot cargo, you will deliver it wherever you see the best netback,” said Stacey Morris, director of research at Dallas-based index provider Alerian. “It is going to be very competitive.” 4. Beyond the Spread But it’s not all about the spread. What really matters is the cost of the cargo when it actually lands in Europe. At the moment, the premium of 16 cents over the futures makes LNG purchases unlikely. “Unless this changes, you won’t have much spot LNG in Europe,” Roe said.
  • 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 5. Shipping Costs The best market for LNG is also determined by how much it costs to bring a cargo to Europe or to Asia. For example, if freight rates for LNG are high, there is a higher chance that Atlantic LNG will stay in the region rather than taking longer journeys to Asia, Roe said. To avoid last winter’s shortage of vessels and unprecedented costs to secure a spot tanker, traders have been booking ships earlier this year.
  • 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 NewBase Energy News 22 September 2021 - Issue No. 1457 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.
  • 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
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  • 21. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 21
  • 22. Copyright © 2021 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 22 For Your Recruitments needs and Top Talents, please seek our approved agents below