Sparrows strengthens UAE ops

Copyright © 2015 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 Energy News 26 October 2017 - Issue No. 1091 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Sparrows Group strengthens Middle East operations
with Dubai Petroleum contract awards
Source: Sparrows Group
Sparrows Group has strengthened its operations in the Middle East, securing two crane
contracts with Dubai Petroleum, one for maintenance services and the other for the delivery of
rental cranes.
The first contract, for five-year’s crane maintenance services, covers 76 cranes across all of Dubai
Petroleum’s offshore fields. Sparrows will provide maintenance and engineering support for all
cranes and associated systems and deliver a maintenance strategy, with technical personnel
working on-site including a dedicated crane operator instructor.
The contract has been re-awarded to Sparrows after they previously held it for 14 years until
earlier this year. The second contract, a new three-year agreement, is for the provision of rental
cranes to support Dubai Petroleum’s well intervention activities. Sparrows will deliver modular
temporary cranes and all associated equipment, including skidding systems.
As part of the scope, the company’s specialist engineering personnel will support the
commissioning, operations and decommissioning of the cranes. This includes the delivery of
installation plans and post set up structural assessments, as well as preventive maintenance
programmes to maximise reliability and ensure safety.
The cranes will be supplied with a variety of boom sections which will allow them to be easily
modified to suit different lifting requirements across Dubai Petroleum’s offshore operations.
Stewart Mitchell, Sparrows chief executive officer, said:
'Sparrows has a successful history with Dubai Petroleum, having worked with the operator for a
number of years. It’s great to be able to get back to work on the maintenance contract and the
addition of the new crane rental project is testament to our team’s experience, knowledge and
skills. We look forward to continuing to implement the high quality and safety standards we are
recognised for across Dubai Petroleum’s assets.'

UAE ENOC's updates on Jabal Ali Condensate refinery expansion
(WAM) + NewBase
The Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin
Rashid Al Maktoum, has received a briefing from Saeed Mohammed Al Tayer, Vice Chairman of
the Emirates National Oil Group, ENOC, about the latest developments of ENOC's Jebel Ali
refinery expansion project.
H.H, Sheikh Mohammed was given key details about the expansion project, including the
refinery's production capacity and its expected contribution to the development of the country's oil
industry. Commercial production of the expanded refinery is expected to commence in Q4 2019.
The US$1.1 billion expansion project will play a leading role in raising the production capacity of
Jebel Ali refinery from 140,000 bpd ( 2 trains 70,000 bpd each ) to 210,000 bpd, which can help
meet the requirements of local, regional and international markets.
"The expansion of the Jebel Ali refinery reflects ENOC's continuing commitment to play a key role
to achieve the vision of the UAE's wise leadership and to drive in more infrastructure
development, which falls in line with Dubai 2021 Plan, and the need to meet the growing demand
for energy in the emirate. ENOC's expansion strategy also complements the continuing effort to
achieve sustainable development in Dubai, while also looking to improve and enhance the
efficiency of the energy sector," said Al Tayer.
Saif Al Falasi, CEO of ENOC, also talked about the initiatives that ENOC has undertaken to
promote the rationalisation of energy consumption, which is part of the recently-released second
report on energy efficiency and management from ENOC.
"The expansion of the Jebel Ali refinery represents our continuing efforts to develop the petroleum
industry market, particularly in light of the growing demand for energy in the UAE and the move to
develop the refinery project as part of our five-year strategy to provide continuous energy, as
efficiently and reliably as possible, in the UAE," said Al Falasi.

Oman: Talks gas supply to China-Oman Industrial Park in Duqm
Oman Observer - Conrad Prabhu
Oman Wanfang LLC, the developer and operator of the China-Oman Industrial Park under
implementation at Duqm Special Economic Zone (SEZ), says it is in discussion with the Ministry of
Oil & Gas for the gas requirements of the multibillion-dollar industrial investments planned at the
Park.
Gas availability, supply and cost remain a ‘bottleneck’ that would need to be resolved if a number
of large petrochemical and industrial schemes envisioned at the Park are to progress, said a key
executive of Oman Wanfang.
“We have had several rounds of negotiations between the investors, the
SEZ Authority at Duqm (SEZAD) and the Ministry of Oil & Gas,” said Liao
Zhenhua (pictured), Deputy General Manager — Oman Wanfang. “The
bottleneck is for gas supply — how we can get the required capacity, the
timeframe for supply, and at what price,” he added.
Zhenhua made the comments in a presentation at the 2017 Dossier
Construction Infrastructure Awards & Summit, organised by UMS Events, at
Sheraton Oman Hotel yesterday.
The issue of gas supply for some of the $10.7 billion in Chinese investments
planned at the Park was also discussed during a joint roadshow staged by
SEZAD and Oman Wanfang in Dalian, China last month, he said.
Later, in comments to the Observer, Zhenhua said locally sourced and competitively priced
natural gas is imperative to the success of a slew of heavy industrial and petrochemical schemes

due to come up at the Park. He ruled out imported and regasified LNG as an alternative energy
source for these ventures, arguing that energy imports would hurt the viability of the projects in
question.
Among the first major investments lined up for implementation at the Park is an integrated
Methanol and Methanol to Olefin (MTO) complex promoted by China’s Mingyuan Holdings Group
Ltd, said Zhenhua. Natural gas is the primary feedstock for the giant scheme, which is proposed
to be built with an investment of around $2.8 billion in Phase 1. It includes a roughly 1.8 million
tonnes per annum (tpa) capacity methanol plant, 700K tpa methanol-to-olefin plant, 300K tpa
polyethylene plant and 450K tpa polypropylene plant.
Gas will also be required to power a 300MW captive power plant jointly planned by Hebei Electric
Power Design Research Institute and Ningxia Electric Power Design Institute with an investment
of around $400 million. Also envisaged as part of the complex is a 50,000 tonnes per day capacity
seawater desalination plant proposed by Ningxia Water Treatment Co Ltd with an investment of
around $80 million.
Part of the 1,172 hectare site earmarked for the China-Oman Industrial Park has already been
prepared for the laying of the infrastructure and utilities ahead of the actual commencement of
construction work on the industries, says Zhenhua.
“Detailed drawings were submitted for approval last week, which will pave the way for the
development of utilities and infra to commence,” the Deputy General Manager said. “We hope for
Phase 1 of the Park to be completed within the next five years.”

Saudi Arabia ‘truly transforming the energy system,’ says ABB
Sam Meredith | @smeredith19
Speaking at Riyadh's Future Investment Summit on Wednesday, ABB CEO Ulrich Spiesshofer
said, "Saudi is truly transforming the energy system."
The kingdom aims to raise about $100 billion by taking a portion of its state oil giant Saudi Aramco
public next year. The funds will underwrite an effort led by Crown Prince Mohammed bin Salman
to diversify the nation's economy through a plan called Vision 2030.
Swiss power grid maker ABB is "ideally
positioned" to support Saudi Arabia's
transformative bid to become a more
environmentally friendly nation, Chief
Executive Ulrich Spiesshofer told CNBC
Wednesday.
Speaking at Riyadh's Future Investment
Summit, Spiesshofer said, "Saudi is truly
transforming the energy system."
"Renewables will play a major role, major
plans on the solar side have been announced,
wind will follow … That requires smarter,
greener and more digitalized grids to manage the complexity and we are really working there," he
added.
The kingdom aims to raise about $100 billion by taking a portion of its state oil giant Saudi Aramco
public next year. The funds will underwrite an effort led by Crown Prince Mohammed bin Salman
to diversify the nation's economy through a plan called Vision 2030.
The precipitous drop of oil prices from more than $100 a barrel in 2014 to roughly $55 to date has
hastened Saudi Arabia's transition from a petrostate to a Gulf nation built on a broader range of
industries.
ABB currently has three major manufacturing hubs based in Saudi Arabia and Spiesshofer said
the firm would continue to help Riyadh on a range of issues, spanning from robotics to renewable
energy.
The Swiss company previously supplied Saudi Arabia with high voltage switch gear in 2016 to
support the country's first integrated solar and natural gas power plant. More recently, the Zurich-
based firm provided uninterruptible power supplies to Saudi Arabia's North-South railway project –
the world's largest railway construction undertaking.

Iraq Works With Kurdish Company to Help Restart Two Oil Fields
Bloomberg - Khalid Al Ansary
Iraq’s North Oil Co. is working with the Kurdish Kar Group to resume pumping at two disputed oil
fields that halted output after government troops recaptured them from Kurdish forces, according
to two people with knowledge of the situation.
Bai Hassan and Avana oil fields are still not exporting since forces of the central government in
Baghdad overtook areas in Kirkuk province from Kurdish troops last week, said the people, who
asked not to be identified because the matter isn’t public. The fields had been pumping an
estimated 275,000 barrels a day before the Iraqi offensive.
NOC and Kar officials were not immediately available for comment. NOC is owned by the central
government in Baghdad, and Kar Group is based in Erbil in the semi-autonomous Kurdistan
Regional Government region of northern Iraq. Kar operates the crude pipeline that exports crude
from the Kurdish region to Turkey.
Kirkuk, home to Iraq’s oldest-
producing oil field, is a flashpoint
in the power struggle between
the central government and the
Kurds. The government sent
troops this month to retake
disputed areas, including the oil-
rich city of Kirkuk, that Kurdish
fighters had seized in 2014 after
Islamic State routed Iraqi forces.
The latest military operation
followed a Kurdish referendum
on independence from Iraq on
Sept. 25. The KRG included
Kirkuk in the referendum despite
competing claims to the
ethnically mixed area, which lies
outside the boundaries of the
KRG-ruled Kurdish region.
On Wednesday, the KRG issued a statement to say it’s prepared to freeze the results of the
independence referendum, observe an immediate cease-fire and hold talks with the central
government.
Flows by pipeline from northern Iraq to the port of Ceyhan, Turkey, fell to 252,000 barrels a day on
Wednesday from about 300,000 barrels the previous day and far below their normal daily level of
600,000 barrels, according to a port agent report and Bloomberg tanker tracking. Iraq’s central
government piggybacks its exports from Kirkuk with Kurdish shipments through the Kar-operated
pipeline to Turkey.
Iraq, the second-largest producer in OPEC, pumps most of its 4.47 million barrels a day from
fields in the south and ships it from the Persian Gulf port of Basra. But with Iraq supplying about
14 percent of total production from the Organization of Petroleum Exporting Countries, a recovery
of curtailed exports from the north could affect crude markets. Brent crude was 18 cents lower at
$58.15 a barrel on Wednesday at 4:28 p.m. in London.

UK: Angus Energy update on Brockham oil field operations
Source: Angus Energy
Angus Energy, a conventional oil and gas development company, has received a letter from the
Surrey County Council ('SCC') suggesting that the Company submit a planning application for the
operations at the Brockham oil field associated with well BR-X4 and its inclusive sidetrack BR-
X4Z.
This is the first formal request or formal notice received by Angus Energy either prior to or in the 7
months since 9 March 2017. Angus Energy’s guidance from its RNS 23 October 2017, 22
September 2017 and 11 May 2017 remains unchanged.
After a careful and considered review, the Management team and Board of Directors of Angus
Energy will, as Operator of the license, submit a normalisation application for the continued
surface activities of the production plant required for well BR-X4 and notably, its inclusive
sidetrack BR-X4Z. The Board has determined this application - submitted without predjudice - is a
prudent and pragmatic step in the best interests of all stakeholders.
The Company reiterates it has all the required permissions from all of its regulators to continue
production at the Brockham oil field including the Kimmeridge layers. In taking this intermediate
step, the Company has not relinquished any rights or further options at its disposal to protect
shareholders.
The Company has worked with the SCC throughout this process and will continue to do so without
exception. Both parties continue to maintain a professional relationship and on-going
communications. Subsequent to the Company’s RNS of 23 October 2017, Angus Energy will
perform conventional oil production at Brockham oil field from the Kimmeridge Layers in Q1
2018.
Statement from The Board of Directors:
'The Board of Angus Energy does not take any decision concerning our shareholders lightly. We are
confident our actions today have been given thoughtful consideration and fully expect this intermediate
step to have minimal impact on our current business plan. We look forward to continued communication
and cooperation between Angus Energy and the Surrey County Council.'

US : Three Things to monitor in the US Gas Driller Earnings
Bloomberg - Ryan Collins
Hurricane disruptions, new pipelines and see-sawing natural gas prices contributed to an eventful
third quarter for the companies that extract the fuel from shale basins across the U.S. Here are
three things to keep an eye out for this earnings season:
Production
Though Hurricane Harvey temporarily cut gas output from Texas shale reservoirs in August and
September, production is poised to rebound in the fourth quarter led by producers in the U.S.
Northeast after pipelines like Energy Transfer Partners LP’s Rover project start service. These
new lines will probably come close to operating at full capacity, Subash Chandra, managing
director and senior analyst at Guggenheim Securities LLC in New York, said by phone.
“You can’t just really fill the new pipes by just redirecting prior gas flows,” Chandra said. “You’re
going to have to drill more.”
Gas production in the Northeast hit a record 24 billion cubic feet a day in September. This month,
production has fluctuated as stiff competition for service crews delayed drilling in some areas,
James Sullivan, an analyst at Alembic Global Advisors in New York, said by phone.
Seeking Returns
While gas output is set to climb, gone are the days when production growth is enough to appease
shareholders. Now investors want returns, pushing companies to spend within cash flow in order
to repair balance sheets, Matthew Portillo, managing director of E&P research at Tudor Pickering
Holt & Co. in Houston, said by phone.
“Capital discipline is a huge thematic conversation with investors today,” Portillo said. “It’s really
the driver of equity performance in our view over the last five to six months.”

Hedging Boost
Until recently, there were few conduits to carry gas from the Marcellus shale basin in the
Northeast to markets in other parts of the country. That meant that production from the region has
historically been priced at local hubs like Dominion South Point in western Pennsylvania, where
prices tumbled as pipeline bottlenecks left a glut of supply.
That’s about to change as the Rover line and other links begin service, allowing producers like Range
Resources Corp. and Cabot Oil & Gas Corp. to hedge production -- or lock in prices for future output in
case of a slump -- using gas for delivery at Louisiana’s Henry Hub, the benchmark for U.S. supply.
Pipeline expansions will allow producers “greater ability to hedge their production profile on a Henry Hub”
basis, Portillo said. “Historically, they have not been able to access Henry Hub. Three dollars is kind of the
new target for management teams

China leads the growth in projected global natural gas consumption
Source: U.S. Energy Information Administration, International Energy Outlook 2017
Global natural gas consumption is expected to grow from 340 billion cubic feet per day (Bcf/d) in
2015 to 485 Bcf/d by 2040, primarily in countries in Asia and in the Middle East, based on
projections in EIA’s latest International Energy Outlook 2017 (IEO2017). China accounts for more
than a quarter of all global natural gas consumption growth between 2015 and 2040.
The projected growth in natural gas consumption in China is driven by environmental policies,
relative cost competiveness of natural gas in the industrial and transportation sectors, and
relatively high economic growth.
China’s environmental policies are designed to reduce air pollution and carbon emissions by
promoting natural gas in the country’s energy mix—replacing some coal and oil use with natural
gas.
In China’s 13th Five-Year Plan and the latest Energy Production and Consumption Revolution
Strategy (2016-30), the Chinese government set targets to increase the share of natural gas in the
primary energy mix from 5.9% in 2015 to 10% by 2020 and 15% by 2030.
EIA projects China’s natural gas consumption to grow from 19 Bcf/d in 2015 to 57 Bcf/d in 2040,
surpassing all other countries except the United States.
In the IEO2017 Reference case, U.S. natural gas consumption is projected to grow at a more
modest rate, from 75 Bcf/d in 2015 to 88 Bcf/d in 2040, with the United States remaining the
world’s largest natural gas consumer.

Source: U.S. EIA, International Energy Outlook 2017, China Development and Reform Commission, China Customs
China’s domestic natural gas production reached 13 Bcf/d in 2016, accounting for 64% of China’s
total natural gas supply. The IEO2017 Reference Case projects that China’s domestic natural gas
production will reach 39 Bcf/d by 2040, driven primarily by the development of shale gas
resources. EIA estimates that China holds the largest reserves of technically recoverable shale
gas in the world, and China was among the first countries outside of North America to develop its
shale resources.
The IEO2017 Reference case projects China’s shale gas production will grow from 0.7 Bcf/d in
2016 to 10 Bcf/d by 2030 and 19 Bcf/d by 2040, when shale gas is projected to account for a third
of China’s total natural gas supply. China’s natural gas production from other sources, such as
coalbed methane, tight formations, and more traditional natural gas reservoirs, is projected to
increase more modestly, from 12 Bcf/d from these sources in 2016 to 20 Bcf/d by 2040.
Pipeline natural gas and liquefied natural gas (LNG) imports make up the rest of China’s supply,
collectively accounting for 36% of the 2016 total and projected to account for 32% of the 2040
total. China’s LNG imports tripled between 2010 and 2016, reaching 3.5 Bcf/d (17% of total
supply) in 2016. By 2018, China is projected to surpass South Korea as the world’s second-
largest LNG importer. By 2040, China is expected to import about 11 Bcf/d, as much as the
world’s largest LNG importer, Japan.
China’s pipeline imports increased to 3.7 Bcf/d in 2016, accounting for 19% of the total natural gas
supply. Although the IEO2017 Reference Case expects China’s imports of natural gas by pipeline
to rise in absolute terms to 7.3 Bcf/d in 2040, their share of China’s total supply is projected to fall
to 12% by that year. China began importing natural gas by pipeline from Turkmenistan in 2010
and has since begun importing natural gas from Uzbekistan, Kazakhstan, and Myanmar. EIA
expects natural gas imports from Russia on the new 3.7 Bcf/d Power of Siberia pipeline to begin in
late 2019.
More information about international energy consumption and production is available in
EIA’s International Energy Outlook 2017.

NewBase October 26 - 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 lower on increases in U.S. crude inventories, production
Reuters + NewBase
Oil prices inched lower on Thursday, pressured by an unexpected increase in U.S. crude
inventories and as oil output and exports from the United States rose last week. Brent crude for
December delivery was down 8 cents at $58.36 a barrel by 0646 GMT, after settling up 0.2
percent in the previous session.
Brent stood about a dollar off a 26-month high of $59.49 hit in late September, supported by
comments from Saudi Arabia’s energy minister on Tuesday reiterating the kingdom’s
determination to end a global supply glut.
U.S. West Texas Intermediate crude for December delivery was down 14 cents at $52.04, after
ending the last session down 29 cents, or 0.6 percent.
U.S. crude inventories rose by 856,000 barrels last week, U.S. Energy Information Administration
data showed on Wednesday. Analysts had expected a decrease of 2.6 million barrels. [EIA/S]
Oil price special
coverage

U.S. gasoline and heating oil futures contracts rallied after the EIA data showed inventories of
gasoline and distillate fuel, which includes heating oil and diesel, both fell by more than 5 million
barrels. The fuel inventories dropped despite a rise in refining output.
“The market is losing its direction a little bit due to a mix of positive and negative factors,” said
Takayuki Nogami, Chief Economist at Japan Oil, Gas and Metals National Corp in Tokyo. Bullish
factors include the big fall in U.S. gasoline and distillate stockpiles at a time when the Northern
Hemisphere enters winter heating season, he said.
On the other hand, a 1.1 million barrel per day (bpd) rebound in U.S. crude production to 9.5
million bpd after the falloff due to Hurricane Nate the week before fueled a sustained strong
production outlook that weighed on oil prices, he added.
Some of the concern around oil exports from the northern part of Iraq may ease after Kurdish
authorities offered to suspend their independence referendum and proposed an immediate
ceasefire, Nogami said.
Crude shipments from northern Iraq, the second-largest producer in the Organization of the
Petroleum Exporting Countries, to Turkey have declined after Iraqi government forces took back
the city of Kirkuk last week after the referendum.
Southeast Asia’s net crude oil imports will more than double to 5.5 million bpd by 2040 as the
region adds new refining capacity to meet rising demand while regional oil output falls, according
to the International Energy Agency (IEA).
Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S.
oil-storage hub, fell by 237,000 barrels to 63.7 million, the first drop in nine weeks,
according to the EIA report Wednesday. Gasoline supplies slid by 5.47 million barrels,
the first decline since mid-September.

NewBase Special Coverage
News Agencies News Release October 06-2017
GCC countries are turning to Renewables, what are the reasons?
Bloomberg + NewBase
Solar power is getting so cheap that even Gulf Arab states awash in crude oil are embracing the
renewable resource. Their motive is as much to keep selling fossil fuels as it is to rein in their
carbon emissions.
With almost 30 percent of the world’s oil reserves and some of the lowest costs of production,
Arab countries in the Persian Gulf will probably rely for years to come on crude exports as a pillar
of their prosperity. But improvements in solar technology mean it will be cost effective to exploit
the region’s abundant sunshine instead of burning their oil and natural gas to run power plants.
That could allow them to export more and boost their haul of petrodollars.
Why would oil-rich countries shift to renewables?
Electricity use in Gulf Arab nations has surged by 6 percent a year on average since 2000, driven
by expanding populations and growth in energy-intensive industries, Ada Perniceni, a Dubai-
based partner at consultant A.T. Kearney, said in a May report. Governments are seeking more

efficient ways of satisfying this rising demand, and the increasing afford ability of renewables is
making solar and wind power a bigger part of the region’s energy mix.
By the end of 2020, the Middle East and North Africa are forecast to have 24.1 gigawatts of wind
and solar capacity –- almost six times the 4.2 gigawatts installed as of last year, according to
Bloomberg New Energy Finance. The additions will require $27.4 billion of investment, BNEF said
in May.
The risk that oil prices may fall adds to the pressure on Gulf Arab producers to maximize their
earnings by exporting more of their crude instead of burning it. Saudi Arabia’s use of electricity
and desalinated water is so high that the country burns crude to meet half of its domestic power
and water demand, according to A.T. Kearney’s Perniceni. If the kingdom doesn’t curb demand or
invest in alternative energy sources, local needs could absorb most of its hydrocarbon production
within 10 to 20 years, she said.
The shift toward renewables by the six member states of the Gulf Cooperation Council would also
help diversify their economies. Saudi Arabia is seeking to curb its reliance on crude exports under
its Vision 2030 strategic plan, on which Crown Prince Mohammed bin Salman has staked his
personal prestige.
What plans do Gulf Arab countries have for renewables?
Here’s what each of the GCC countries is doing to harness greener sources of energy:
Saudi Arabia: The world’s biggest oil exporter aims to build about 3.45 gigawatts of solar and wind
plants by 2020. It wants to be able to produce 9.5 gigawatts, or some 10 percent of its generating
capacity, from renewables by 2023. The energy ministry targets an estimated $30 billion to $50
billion in renewables investment over the next six years.
United Arab Emirates: The U.A.E. plans for renewables to make up 44 percent of its energy mix
by 2050, with gas, coal and nuclear contributing the rest. It’s earmarking 600 billion dirhams ($163
billion) in spending to diversify its supply. In March, the emirate of Dubai completed the second
phase of what it expects will be the world’s largest solar park by 2030.

Kuwait: The Ministry of Electricity and Water foresees a tripling of domestic energy demand by
2030 and targets producing 15 percent of its electricity from solar and wind power by then.
Qatar: The biggest exporter of liquefied natural gas aims to get 1.8 gigawatts, or 16 percent, of its
power generation from solar by 2020, rising to 10 gigawatts by 2030, BNEF reported in May. It
currently has no utility-scale solar projects.
Bahrain: The smallest of the GCC countries needs to increase its generating capacity by 6 percent
a year to keep pace with demand, according to the multilateral Arab Petroleum Investments Corp.
Bahrain aims for renewables to contribute 5 percent of its electricity by 2020, IRENA says.
Oman: Oman has several solar projects underway, including a program encouraging the use of
rooftop solar panels. California-based GlassPoint Solar Inc. is building a 1-gigawatt solar-thermal
facility to turn water into steam for injection into oil fields to enhance the recovery of crude.
Why the regional race for cheapest renewables?
Saudi Arabia has received the world’s cheapest offer for supply of solar power. Electricite de
France SA and Abu Dhabi’s Masdar made a joint bid to provide electricity from a 300-megawatt
photovoltaic plant for as little as 1.79 cents a kilowatt hour, the Saudi energy ministry said in
October. If awarded, that would beat the previous record low of 2.42 cents a kilowatt-hour set
in Abu Dhabi in March. The Abu Dhabi offer had in turn beaten Dubai’s record from May 2016 for
solar power at 2.99 cents a kilowatt-hour.
These rates may not capture the full cost of supplies in the peak summer season, but they do
reflect improvements in technology that are leading to better cost savings globally. Rivalries
among Arab Gulf monarchies to secure the cheapest deals for solar power may also put pressure
on providers to low-ball bids.

In Saudi Arabia, companies are looking to solar as a way to hedge the risk of rising power prices if
the government cuts energy subsidies as part of its planned economic reforms, according to one
of the kingdom’s biggest plant developers. “Everybody is very convinced that electricity prices are
going to be reformed over the next three years,’’ ACWA Power International Chief Executive
Officer Paddy Padmanathan said in an Oct. 20 interview in Paris. “That means only one thing: that
tariffs are going to go up.’’
What about Middle East countries outside the oil patch?
Oil-importing nations elsewhere in the Middle East are also pushing into renewables, mostly to
pare bills for imported fossil fuels. Egypt, the most populous Arab nation, plans to generate 20
percent of its electricity from renewables by 2022, with wind providing 12 percent, hydropower 5.8
percent, and solar 2.2 percent. Egypt’s solar industry alone has attracted $1.8 billion of
investment. Jordan seeks to boost its renewables capacity by almost five times in the next three
years. Morocco plans to generate 42 percent of its energy from renewables by 2020, much of it
wind power, and 52 percent by 2030, the country’s former energy minister said in October 2016.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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Khaled Malallah Al Awadi,
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MS & BS Mechanical Engineering (HON), USA
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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

Sparrows strengthens UAE ops

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