New base 24 october 2017 energy news issue 1089 by khaled al awadi

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NewBase Energy News 24 October 2017 - Issue No. 1089 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Wetex kicks off in Dubai, draws over 2,000 exhibitors
showcasing Energy innovations
More than 2,000 exhibitors from 50 different countries are participating at the 19th edition of the
Water, Energy, Technology, and Environment Exhibition (Wetex), which opened today (October
23) in Dubai, UAE.
Dubai Electricity and Water Authority (Dewa) invited the general public, UAE nationals, and
visitors to attend and participate in activities of the event.
The event will be held under the umbrella of the fourth session of Green Week, under the
directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of
the UAE and Ruler of Dubai, and under the patronage of HH Sheikh Hamdan bin Rashid Al
Maktoum, Deputy Ruler of Dubai, Minister of Finance and president of Dewa.
The three-day event will take place at the Dubai International Convention and Exhibition Centre,
and will conclude on October 25. Wetex aims at promoting the concept of environmental

citizenship and raise more awareness on latest technologies in water, energy and environment,
said a statement. This year’s theme is ‘At the forefront of sustainability’, and coincides with the
2nd Dubai Solar Show and the 4th World Green Economy Summit, it added. At this year’s
summit, at least 60 speakers from all over the world will focus on key topics like smart cities,
green economy, innovation, and sustainable development, it said.
Saeed Mohammed Al Tayer, managing director and CEO of Dewa, founder and chairman of
Wetex, said: “We are eager to engage the public in promoting a culture of sustainability,
preserving the environment, protecting natural resources, adopt green technologies and increase
reliance on clean energy.”
“The event plays a vital role in supporting the efforts of the leadership of Dubai and the UAE on
the global green economy and sustainable development map,” he said. “This event is a
comprehensive, integrated and specialised global exhibition in the areas of energy production and
rationalisation, renewable energy, desalination, sustainability, technology and green
development,” he added.
Al Tayer continued: “Since its launch, the exhibition
has established itself as the largest of its kind in the
world. This year, we are expecting a larger audience
turnout, especially after our success last year, with
great participation from the public, sponsors,
exhibitors and participants from all over the world.”
“Through this event, we seek to educate and involve
the public in our efforts to implement the long term
national initiative to build a green economy in the
UAE under the theme ‘Green economy for
sustainable development’, and the Dubai Clean
Energy Strategy 2050, which aims to make Dubai a
world centre for clean energy and green economy,
by providing 7 per cent of Dubai's energy from clean energy sources by 2020,” he said.
“This target will increase to 25 per cent by 2030; and 75 per cent by 2050, in addition to the Dubai
Integrated Energy Strategy 2030, that aims to cut energy consumption by 30 per cent by 2030,”
he stated.
Al Tayer further added that show is an ideal platform for organisations operating in the fields of
energy, renewable energy, water, environment, oil and gas to display their technologies, projects,
green products and solutions.
“It also serves as a forum for decision makers, investors, buyers, and enthusiasts from all around
the world to gain insight into the leading projects in renewable and clean energy in the region and
the world,” he said.
Al Tayer also explained that the fourth session of the Green Week also includes events designed
to raise community awareness and inspire individuals to be more responsible towards the
environment — highlighting the urgent need to replace irrational consumption habits; follow a
sustainable lifestyle and to promote awareness among new generations like school and university
students and motivate them to invent new solutions towards a green economy.

The events include a variety of lectures about sustainability, promoting efficient consumption, and
many other environmental issues, plus interactive workshops with the public. Green Week also
includes a Green Corner for school and university students to be innovators, inventors and
creators and display their green and sustainable projects, it stated.
Schneider Electric showcases innovative solutions at WETEX
Schneider Electric, a global player in energy management and automation sector, is showcasing
its comprehensive portfolio of state-of-the-art technologies at the ongoing Wetex 2017 expo in
Dubai, UAE. Innovative solutions for every
level of the value chain – from IoT products
and local control to software suites and
digital services are on display, said a
statement from the company.
A major highlight at Schneider Electric's
stand this year is the recently-launched
EcoStruxure Industrial Software Platform –
an integrated, modular software suite that
delivers rich functionality to address
operational and business imperatives of the
industrial and infrastructure markets.
The platform can be deployed in a scaled
fashion, enabling companies to protect their
investments in systems while expanding their
technology. Visitors can also catch a glimpse of the IoT-enabled EcoStruxure Water and
Wastewater Solutions that boost operational efficiency by up to 25 per cent while enhancing the
overall safety and sustainability of water systems. Also on display is the EcoStruxure Grid
architecture covering a wide range of digital applications and analytics, edge control, and
connected products.
Emirates Insolaire to install coloured solar panels in Dubai
Dubai Investments, a leading, diversified investments company, said it will soon start installing
coloured solar panels on buildings across Dubai through its joint venture Emirates Insolaire. Dubai
Investments, a leading, diversified investments company, said it will soon start installing coloured
solar panels on buildings across Dubai through its joint venture Emirates Insolaire, as the emirate
reinforces its commitment to a sustainable future.
Emirates Insolaire, which manufactures and markets Kromatix coloured solar glass in Dubai – the
first-of-its-kind in the world, is in advanced negotiations with authorities and companies on
installation plans.

This will be the first time that coloured solar panels will dress up buildings in Dubai, said the
company in a statement. Dubai has already installed photovoltaic panels on 433 buildings with a
total capacity of 14.6 megawatts (MW). The number of panels is expected to double in the future
to eventually cover all buildings in the emirate by 2030.
GE showcases 'Future of Power Generation’ at Dubai expo
GE Power is showcasing a wide range of its industry-leading solutions at the ongoing Water,
Energy, Technology and Environment Exhibition (Wetex 2017) expo in Dubai.
These include GE’s 9EMax gas turbine upgrade solution, which can help cut annual fuel costs by
as much as $5 million, while creating the potential for up to $6 million in additional revenue, as
well as its cross-fleet portfolio of solutions that support more than 90 original equipment
manufacturers’ (OEM) brands of gas and steam turbines, generators, boilers and other balance-
of-plant equipment.
GE said it has supported the development of the energy sector in the GCC region for over 80
years, providing innovative technologies that complement the UAE Energy Strategy 2050 and the
Dubai Clean Energy Strategy 2050.
Today, GE-built technologies can generate up to 50 per cent of the GCC’s electricity, supporting
the energy sector’s transformation by utilizing various fuel sources, working across the electricity
value network and deploying advanced digital industrial solutions, said the company in a
statement.
A strategic sponsor of Wetex 2017, GE Power is showcasing these industry-leading technologies
under the theme ‘The Future of Power Generation’ for greater efficiency, flexibility, sustainability
and savings for the power sector, it stated.
Special focus is being laid on GE’s digital industrial solutions, which are enhancing efficiency,
reliability and operational performance across the entire electricity value network, from the point of
power generation, to transmission and distribution, to consumption, it added.
Joseph Anis, the president and chief executive of GE’s Power Services business in the Middle
East & Africa, said: "The power generation industry in the UAE and wider Gulf region is focused
on enhancing efficiency, diversifying the energy mix, lowering costs and modernizing operations
through digitization to meet the region’s growing energy needs."

Indonesia: Sonoro strike gas on LG-1 well West Sulawesi drilling
Sources: Sonoro
Sonoro Energy Ltd. (“Sonoro” or “the Company”) (TSX-V: SNV), is pleased to announce that
drilling operations at its LG-1 Up-dip well site in West Sulawesi, Indonesia have advanced to a
depth of 297 meters, where a gas kick to surface occurred as the drill string was pulled out of the
hole.
While drilling through the upper hole section on Sunday, Oct. 22, personnel from Sonoro’s drilling
contractor PT Advanced Services Indonesia (“ASI”) encountered hydrocarbons in the C1-C5
range in the return mud across several thin sands to a depth of 297m, while operations continued
to weight up to about 9.9 ppg.
The gas kick was encountered as crews pulled the string out of the hole to prepare for logging and
intermediate casing operations. Gas flowed to the surface and was diverted to the flare. Oil shows
were also present in the mud.
Sonoro is encouraged by these early signs of oil and gas, and now plans to stabilize the well
before logging and casing the well to 297m, so that ASI can then proceed to coring from 300 to
500m where the three main target sands are expected.
“While it’s still too early to assume what we may encounter between 300 and 500m, we’re excited
to see the presence of hydrocarbons prior to reaching our zones of interest below 300m. So far
our geological drilling prognosis has been correct but further coring, logging and testing are
needed to determine the commercial viability of the Budong Budong project,” says Richard
Wadsworth, Sonoro’s Chief Executive Officer.

Equatorial Guinea: Kosmos Energy gets 3 new oil and gas contracts
Source: Ministry of Mines, Industry and Energy Equatorial Guinea
Dallas-based Kosmos Energy will enter Equatorial Guinea via three new oil and gas licences
following the EG Ronda 2016 licensing round. Block EG-21, Block S and Block W are located
offshore Equatorial Guinea. Kosmos Energy is an established oil and gas explorer in West Africa.
The Ministry of Mines and Hydrocarbons of Equatorial Guinea, Kosmos Energy of the US and
national oil company GEPetrol have signed three new production sharing contracts (PSC)
for Block EG-21, Block Sand Block W offshore Rio Muni. The deal marks Kosmos’ first PSCs in
Equatorial Guinea.
Block EG-21 was offered for tender during the EG Ronda 2016 oil and gas licensing round. Block
S and Block W, previously operated by CNOOC and PanAtlantic Energy respectively,
were negotiated directly with Kosmos and were not offered under the open bidding round. Block
EG-21 covers 2,495 sq kms, Block S covers 1,245 sq kms and Block W is 2,254 sq kms. In each
block, Kosmos will hold an 80 percent stake and GEPetrol will
control the remaining 20 percent.
Minister of Mines and Hydrocarbons H.E. Gabriel Mbaga Obiang Lima said:
'Kosmos Energy has demonstrated extraordinary and consistent success in frontier exploration
projects in West Africa. We trust Kosmos will bring important knowledge and technology to
Equatorial Guinea, an established oil and gas producer in Africa with proven potential. We look
forward to working with Kosmos as we continue to push the boundaries in oil and gas exploration.'
Dallas-Based Kosmos Energy has already earned a reputation as a top frontier explorer in West
Africa, having made mega-discoveries off the coasts of Senegal and Mauritania. Kosmos made
one of the largest finds in a decade in West Africa with Ghana’s Jubilee field in 2010. Triton
Energy, where Kosmos co-founder Brian Maxted served as senior vice president for exploration,
was responsible for a series of discoveries in the Rio Muni basin in Equatorial Guinea, including
the Ceiba field in 1999.
The PSCs for the block are
based on Equatorial Guinea’s
model PSC, and stipulate
minimum work programs that
comprise a first exploratory
period of three years, which
include acquiring seismic data;
a second exploratory period of
two years, which includes
drilling an exploratory well; and
the possibility of two one-year
extensions, which include
requirements to conduct
seismic interpretation and drill
another exploration well,
respectively. The PSC also
stipulates spending on local
content and social
responsibility.

NewBase October 24 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices inch up, support from drop in southern Iraq exports
Reuters + NewBase
Oil prices inched up on Tuesday, getting support from a decline in oil exports from OPEC’s
second-biggest producer Iraq and a projected extended fall in U.S. commercial oil stocks.
London Brent crude for December delivery was up 10 cents at $57.47 a barrel by 0651 GMT after
settling down 38 cents on Monday. U.S. crude for December delivery was up 6 cents at $51.96.
Iraqi oil exports have fallen more than 200,000 barrels per day (bpd) so far this month, as
shipments from both the north and the south of the country declined.
“The market is currently weighing supportive materials more, such as the Kurdistan situation, the
slowdown in shale-related (U.S.) rig counts and the possible extension in OPEC (output) cuts,”
said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.
Oil price special
coverage

Crude oil exports through the Iraqi Kurdistan controlled-pipeline to the Turkish port of Ceyhan rose
13 percent to 288,000 barrels per day (bpd) on Monday afternoon, but that was still less than half
normal levels due to tensions in the region, a shipping source told Reuters.
Iraqi Oil Minister Jabar al-Luaibi said on Saturday southern exports were increasing by 200,000
bpd to make up for the northern shortfall.
U.S. Secretary of State Rex Tillerson urged the Iraqi government and the Kurdistan region on
Monday to resolve their conflict over Kurdish self-determination and disputed territories through
dialogue.
The drop in supplies from Iraq comes as the Organization of the Petroleum Exporting Countries,
Russia and other producers are cutting output by about 1.8 million bpd until March 2018 in an
effort to drain a glut and support prices.
In September OPEC and non-OPEC countries achieved the highest compliance on planned cuts
since the deal kicked off in January - at a rate of 120 percent - helping reduce oil stocks further at
Organisation for Economic Cooperation and Development nations, OPEC said.
Russia held on to its position as China’s top crude oil supplier, ahead of Saudi Arabia, for the
seventh month in September, with shipments hitting a record 1.545 million bpd, customs data
showed on Tuesday.
Meanwhile U.S. crude inventories likely fell by 2.5 million barrels last week, while gasoline and
distillate stockpiles also fell, a preliminary Reuters poll showed on Monday ahead of data by the
American Petroleum Institute later on Tuesday.
The U.S. oil rig count fell by seven to the lowest level since June, Baker Hughes data showed last
week.

NewBase Special Coverage
News Agencies News Release October 24-2017
IEA sees Southeast Asia oil demand growing until at least 2040
Southeast Asian demand for oil will keep growing until at least 2040 as emerging nations there
rely on the fossil fuel to transport their rapidly growing populations, ship goods and make plastics,
the International Energy Agency said on Tuesday.
Oil usage in the region will expand to around 6.6 million barrels per day by 2040 from 4.7 million
bpd now, with the number of road vehicles increasing by two-thirds to around 62 million, the
agency said in a report. It did not make any forecasts beyond 2040.
A global push to replace combustion engines in vehicles with electric-powered ones to fight
climate change has raised concerns in the oil industry that demand for the commodity could peak
in the next 10-20 years.
But oil will continue to meet around 90 percent of transport-related demand in Southeast Asia,
especially for trucks and ships, Keisuke Sadamori, the IEA’s director of energy markets and
security, said at the Singapore International Energy Week.
“Unless there are any drastic technological changes that can decarbonize these areas, we do not
expect oil demand to fall,” he said.
Oil demand from the petrochemicals sector, one of the largest users of the fossil fuel, will also
grow fairly substantially, Sadamori said. Oil can be used as a raw material for plastics and textiles.
The IEA expects electricity to account for only 1 percent of transport energy demand in 2040,
saying there will be only about 4 million electric cars in a total passenger vehicle stock of 62
million.
Meanwhile, Southeast Asia’s overall energy demand is expected to climb nearly 60 percent by
2040 from now, led by power generation, as rising incomes in the region spur more people to buy
electric appliances including air conditioners, the IEA said.

The region will have universal access to electricity in the early 2030s and is expected to install
more than 565 gigawatts (GW) of power-generation capacity in 2040, from 240 GW today, the
agency said. Coal and renewables account for almost 70 percent of new output, it added.
Coal alone will account for almost 40 percent of the growth while renewables will quadruple by
2040 to become the second largest source of electricity after coal, overtaking gas, IEA forecasts
showed.
Southeast Asia will become a key driver for energy demand globally as its economy triples in size
and its total population grows by a fifth, the IEA said. But the region’s net energy import bill is also
climbing as oil production declines, raising concerns over energy security.
Southeast Asia will have to fork out more than $300 billion in 2040 for net energy imports,
equivalent to about 4 percent of the region’s total gross domestic product, the IEA said.
“Apart from the mounting import bill, the region’s increasing dependence on imported energy
raises significant energy security concerns,” the agency said.
Southeast Asia Energy Outlook 2017
The ten countries of the Association of Southeast Asian Nations (ASEAN) represent
one of the most dynamic parts of the global energy system and their energy demand
has grown by 60% over the past 15 years.
ASEAN countries are at various stages of economic development and have different
energy resource endowments and consumption patterns. But they share a common
challenge to meet rising demand in a secure, affordable and sustainable manner.
There are many encouraging signs: countries across the region have made major
efforts in recent years to upgrade policy frameworks, reform fossil-fuel consumption
subsidies, increase regional co-operation and encourage greater investment in the
region’s considerable renewable energy potential.
But much more remains to be done. Access to modern energy is incomplete. With a
total population of nearly 640 million, an estimated 65 million people remain without
electricity and 250 million are reliant on solid biomass as a cooking fuel.
Investment in upstream oil and gas has been hit by lower prices since 2014 and the
region faces a dwindling position as a gas exporter, and a rising dependency on
imported oil. At the same time, energy-related air pollution, both indoor and outdoor,
also presents major risks to public health, while rising carbon-dioxide (CO2) emissions
are contrary to the objectives of the Paris Climate Change Agreement, which has been
ratified by all the countries in the region.
Our new World Energy Outlook (WEO) Special Report confirms that Southeast Asian
countries are looking towards a future in which energy demand is set to grow strongly.
The full report provides a detailed framework for understanding the region’s energy
choices, examining the pitfalls and opportunities that lie ahead and what different
pathways might imply for future energy security, the environment and economic
development.
Robust economic and demographic growth pushes energy demand higher

In our main scenario to 2040, Southeast Asia’s energy demand grows by almost two-
thirds. This represents one-tenth of the rise in global demand, as the region’s economy
triples in size, the total population grows by a fifth with the urban population alone
growing by over 150 million people.
This scenario reflects the impact of existing energy policies in Southeast Asia as well
as an assessment of the results likely to stem from the implementation of announced
policy intentions, such as the country pledges made as part of the Paris Agreement.
There is strong growth in low-carbon energy, but increased energy needs lead to rising
consumption of all fuels. Coal alone accounts for almost 40% of the growth, and
overtakes gas in the electricity mix.
Oil demand expands from 4.7 million barrels per day (mb/d) today to around 6.6 mb/d
in 2040, as rising demand for mobility means the number of road vehicles increases by
two-thirds to around 62 million.
Demand for natural gas also grows strongly, by around 60% to 2040, due to rising
consumption in power generation and industry. The share of renewables, excluding
solid biomass but including hydro, solar photovoltaic (PV) and wind power, almost
doubles as their deployment helps to meet rising electricity demand and to extend
energy access.
The future looks electric
Electricity is the main source of growth in final energy use
Electricity accounts for the largest share of the increase in final consumption, as rising incomes in
the region translate into higher ownership of appliances and increasing demand for cooling. Two-

thirds of the increase in Southeast Asia’s electricity demand comes from the residential and
services sectors, largely due to a rising urban middle class.
Industrial electricity demand more than doubles, pushed higher by the lighter industrial branches
that are a mainstay of the region’s economic activity. One area where electrification makes less
progress is the transport sector.
In the absence, for the moment, of supportive policies, electric mobility does not gain much of a
foothold in our projections. Instead, energy use in the transport sector remains dominated by oil
products, with policy efforts to diversify the mix focusing on biofuels.
Biofuels can bring energy security and environmental benefits, although that would require that
palm oil production is managed sustainably, an important policy issue for the main producers,
Indonesia and Malaysia.
Renewables and high-efficiency coal, followed by gas, lead the charge for new power gen
Meeting increasing electricity demand requires a huge expansion in the region’s power
system, with coal and renewables accounting for almost 70% of new capacity. Installed
power generation capacity rises to more than 565 gigawatts (GW) in 2040 in our main scenario,
from 240 GW today.
The mix of fuels and technologies varies country-by-country, but overall reflects an emerging
preference for a combination of high efficiency coal plants and increased deployment of
renewables.
By 2040, renewables account for the largest share of installed capacity (nearly 40%), but coal
takes the most prominent role in the generation mix (40%) and 70% of the new coal-fired capacity
uses high efficiency supercritical or ultra-supercritical technologies. Output from natural gas-fired
plants rises by 60% in absolute terms, but the share of gas in the power mix falls back from the
current 43% to 28% by 2040.

The large penetration of renewables and wider deployment of more efficient coal-fired plants
results in the carbon intensity of power sector declining by almost one-fifth, but it remains
significantly higher than the world average.
The road to universal energy access
Electrification is a success story in Southeast Asia
Extending connections to those without access to electricity is a top priority for policy-makers in
Southeast Asia. The large number of people living in island communities and remote areas makes
the challenge more difficult.
Countries across the region have made great strides in addressing the issue, with the
electrification rate rising by 28 percentage points since 2000, and is now at 90%. The declining
cost of renewables is opening new opportunities to achieve access and reduce reliance on costly
diesel generators in isolated areas.
But achieving universal access across a very diverse region requires careful consideration of the
specific situation of different communities. The WEO Special Report includes a detailed geo-
spatial analysis that considers population density and resource availability to determine the least-
cost connection type and fuel technology for the four countries – Indonesia, Philippines, Myanmar
and Cambodia – where 95% of those without electricity are concentrated.

Universal access to electricity is achieved in all parts of Southeast Asia by the early-2030s
In our main scenario, all countries in Southeast Asia achieve universal access by the early-2030s,
using a wide range of fuels and technologies, as well as both centralised and decentralised
solutions. Varying resource distribution, distance from existing demand centres and population
density means that there is no one-size-fits-all approach.
In Indonesia, nearly 40% of those who gain access do so through extension of the existing grids,
with mini-grid and off-grid approaches playing a prominent role in areas of the country, including
Papua, which are more sparsely populated.
The Philippines, which fulfils its goal of universal access well before 2030, relies more heavily on
grid connections that account for around 90% of new connections, while renewables-based mini-
grid and off-grid also play a role, providing access to around 1.6 million people.
In Cambodia, grid connections are the least-cost solution for all but 3% of the 7.6 million new
connections on the path to full electrification. Myanmar has ample scope to rely on renewables in
its electrification strategy. Solar PV provides the least-cost connection to around 11.8 million
people, around half of new connections by 2030.
A reversal of fortune for net energy trade
A challenging outlook for the region’s producers
Southeast Asia remains an important producer of oil, gas and coal, but faces several challenges,
especially in the near term. The oil supply outlook in our main scenario continues the recent
trajectory of decline, falling from 2.5 mb/d today to 1.7 mb/d in 2040; offsetting production declines
from mature fields becomes all the more difficult in the current period of lower prices and
investment.
A slight rise in production in Brunei Darussalam and the Philippines is not enough to offset
declines in Indonesia, Malaysia and Viet Nam. Natural gas fares better, with the region as a whole

successfully keeping production at around the same level as today in the period to 2040. The
production outlook would be brighter still if investment in Indonesia’s East Natuna field were
secured, though this is contingent on finding a suitable solution for the very high levels of
CO2 associated with the field’s production. Coal production, centred in Indonesia, falls marginally,
although this reflects policy choices rather than resource constraints.
Falling output and rising demand turns Southeast Asia into a significant importer of all fossil fuels
by 2040
Decreasing domestic supply and increasing demand pushes Southeast Asia’s annual net import
bill to over $300 billion in 2040, equivalent to around 4% of the region’s total gross domestic
product. Oil is by far the largest tranche of projected imports; net imports of 6.9 mb/d in 2040
require $280 billion in annual outlays by 2040.
While the region as a whole becomes a net importer of coal, Indonesia remains an important
producer as well as an exporter to its Southeast Asian neighbours and India. Southeast Asia plays
an increasingly prominent role as a market for liquefied natural gas (LNG), benefiting in the near
term from prices depressed by the strong global supply outlook.
The use of LNG extends to smaller scale projects in Indonesia and the Philippines, and plays an
important role in displacing diesel-based generation in some island communities. Apart from the
mounting import bill, the region’s increasing dependence on imported energy raises significant
energy security concerns.
The road ahead for Southeast Asia is not set in stone
Some warning signs for the future
The projections in our main scenario show that Southeast Asia is on track to achieve some key
energy policy goals, including the difficult task of bringing universal electricity access and greater
diversification of the energy mix. Yet they also highlight major potential risks. Despite the respite
afforded by lower prices on oil import bills, energy security remains high on the agenda as the

impact of lower upstream spending works its way into regional supply, while imports continue to
grow. Concerns about air pollution in several of the region’s largest cities amplify as urban
populations and demand for mobility increase. Strong growth in fossil-fuel consumption leads to a
75% increase in energy-related CO2 emissions.
A transition to a more sustainable energy system holds multiple benefits
Policy choices can help mitigate these risks, and our new Sustainable Development Scenario
describes an alternative pathway for the region that meets global sustainable development goals
as well as putting the world on a trajectory consistent with the objectives of the Paris Agreement.
In this new scenario, Southeast Asia’s energy demand is 16% lower in 2040 than in the central
scenario, helped by a broader adoption of more stringent efficiency standards. The reduced
demand and increased use of renewables (around 20 percentage points higher as a share of
primary energy demand versus our main scenario) helps reduce reliance on imported oil and gas,
and by 2040, the import bill is lower by almost $180 billion.
The transition in the Sustainable Development Scenario has profound impacts on greenhouse-gas
and air pollutant emissions, with energy-related CO2 emissions 50% lower than in our main
scenario.
Efficiency and increased renewables deployment are vital for a more sustainable energy future
Rising energy needs and changing supply-demand dynamics are creating tough challenges for
Southeast Asia’s policy-makers, but the energy transition is also opening up new affordable policy
and technology options. Energy-efficient and low-carbon technologies offer a way to pursue
multiple objectives of energy security, affordability and environmental goals.
The rapidly declining cost of wind and solar PV provides an opportunity to help meet growing
electricity demand in a cost-effective and sustainable manner, while also helping spur local
manufacturing industries. Malaysia is already the world’s third-largest producer of photovoltaic

cells, while investment in Thailand’s solar manufacturing industry is increasing PV output for
global markets.
Three ingredients to put the energy sector on a more secure footing
Adequate energy investment
Southeast Asia’s cumulative energy investment requirement (in energy supply and efficiency) to
2040 is estimated at $2.7 trillion in our main scenario. It is slightly higher in the Sustainable
Development Scenario at $2.9 trillion, although greater attention to energy efficiency in this
scenario reduces the call for new supply infrastructure.
In either case, mobilising investment on this scale will require significant participation from the
private sector and international financial institutions.
Attracting investment will be contingent on the incentives available to investors, which may be
dampened by the presence of electricity price controls or fossil-fuel consumption subsidies, or
terms that are unfavourable compared with other investment opportunities worldwide.
There is also a strategic choice to be made regarding the direction of investment flows. Realising
the Sustainable Development Scenario requires a major shift towards low-carbon options and
efficiency, with the savings in energy consumption and the lower fossil-fuel import bill more than
offsetting the increased investment.
More efficient energy use
Efficiency policies in place or under consideration today can curtail energy demand in end-use
sectors in Southeast Asia by 10% by 2040, but this far from exhausts the potential gains. For
instance, the limited adoption of fuel-economy standards for passenger vehicles means that
average fuel economy in the region is projected to be 20% worse than the global average in 2040
in our main scenario.
With growing economies and expanded road infrastructure, freight activity more than doubles by
2040 and fuel consumption by trucks (less than 15% of road transport fuel use today) accounts for
around 40% of transport energy demand growth to 2040.
Rising electricity demand means that reform of electricity subsidies, which are prevalent in some
countries in Southeast Asia, becomes imperative in order to prevent wasteful consumption,
incentivise investments in efficiency and avoid a drain on fiscal resources.
National budgets would face a cumulative electricity subsidy bill of more than $350 billion over the
period to 2040 if they fail to achieve the subsidy reforms anticipated in our main scenario.
More integrated gas and electricity markets
Better interconnection of natural gas supply networks, underpinned by harmonised regulation
towards flexible and transparent markets, can enhance gas security in the region. In the power
sector, realising the long-planned regional grid would make large-scale renewables-based
projects more viable. It would also provide benefits to the power system as a whole, aiding the
integration of rising shares of wind and solar power.

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

NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase October 2017 K. Al Awadi

New base 24 october 2017 energy news issue 1089 by khaled al awadi

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New base 24 october 2017 energy news issue 1089 by khaled al awadi