New base 30 septempber 2021 energy news issue 1459 by khaled al awadi

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NewBase Energy News 30 September - Issue No. 14579 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
OPEC DoC Joint Technical Committee discusses oil market
WAM/Tariq alfaham
The Joint Technical Committee (JTC) convened for its 55th meeting via videoconference to examine
oil market developments.
The meeting was held in preparation for the 33rd Meeting of the Joint Ministerial Monitoring
Committee (JMMC) and the 21st OPEC and non-OPEC Ministerial Meeting (ONOMM) planned for
Monday, 4 October 2021.
OPEC Secretary General, Mohammad Sanusi Barkindo, in his remarks underscored the importance
of the efforts by the Declaration of Cooperation (DoC) Participating Countries in accelerating the
rebalancing process in the global oil market. "As we approach the final quarter of 2021, it is clear
that this has been a year of recovery," he stated.
"The commitment by all DoC Participating Countries to reach their voluntary production adjustment
levels and ensure that compensation volumes are met is contributing to the positive market
momentum we are seeing this year," Barkindo said.

The Secretary General noted that the latest decisions of the DoC continue to help balance the
market fundamentals, by addressing rising demand while guarding against potential excess in
supply.
Barkindo also stressed the need to remain cautious and attentive to an ever-evolving market
situation, emphasizing, "Constructive engagements in a transparent fashion based on mutual
respect among all Participating Countries remain key to our success."
Next OPEC Ministerial meeting

Kuwait: Gulf Cryo & KOC recover natural gas by Injection Co2
KOC + Gulf Cryo
Gulf Cryo, a leading provider of industrial gas solutions, has completed two groundbreaking
energised CO2 foam acid fracking pilots at Kuwait Oil Company’s (KOC) Raudhatain oilfield,
marking a new era of the company’s contribution towards reducing carbon emissions and enhancing
gas recovery.
The company, which is also a key CO2 (green) manufacturer in the region, teamed up with two
global oilfield service providers Halliburton and Schlumberger, and mobilised more than 1,000
metric tons of liquid CO2 into the KOC oilfield. Each reservoir consumed more than 400 metric tons
within a few hours, which in return dissolved the calcium carbonate masses and released the natural
gas entrapped in the rock layers.
Part of the CO2 injected into the KOC reservoirs will remain safely and securely stored within the
geologic formation. This process of capturing the CO2 and utilising it in the oilfield reinforces the
perception of carbon capturing and utilization storage (CCUS) and enhanced oil recovery (EOR).
These unprecedented pilots paved the way for a mitigating global carbon emissions and sustainable
development of the oilfields. Gulf Cryo’s operational excellence in handling and mobilising the
energised CO2 into the oilfield lies in the distinct planning for production, logistical practices and
mobilisation of special assets and equipment, and its highly trained personnel.
According to Abdallah Dalab, General Manager at Gulf Cryo Kuwait: “The collaboration with KOC,
Halliburton and Schlumberger fits perfectly with Gulf Cryo’s long history of immense achievements
and commitment towards introducing innovative technologies.
The energized CO2 fracking is a key solution globally for reducing CO2 emissions and increasing
oil and gas productivity. We are proud to build on our deep-rooted experience and be able to offer
such solutions that help reduce the global carbon footprint and thus contribute to the environment
overall.”
With industrial gas solutions as its core business, Gulf Cryo manufactures and supplies industrial,
medical and specialty gases to a wide range of industries and end markets including healthcare,
food and beverage, manufacturing and primary metals, oil and gas, refineries, and many others.
The company’s industrial gases are used in countless applications from oxygen for hospitals to specialty
gases for electronics manufacturing, and hydrogen for clean fuels. Gulf Cryo is headquartered in Dubai,
UAE, and operates in over 10 countries across the Middle East and the Gulf region. –

Azerbaijan: LUKOIL acquires interest in Caspian Sea from bp
Source: LUKOIL
LUKOIL has signed an agreement on acquiring a 25% participating interest in the Shallow Water
Absheron Peninsula (SWAP) exploration project in the Azerbaijan sector of the Caspian Sea
from bp. The deal is expected to complete before the end of 2021, following its approval by the
government of Azerbaijan.
After the completion of the sale, bp will remain operator of the project, holding a 25% interest. The
third party to the project is SOCAR, the State Oil Company of th e Azerbaijan Republic, with a 50%
share.
'LUKOIL's joining of the project of bp and SOCAR falls in line with both Russia's and Azerbaijan's
national interests related to the evolvement of international cooperation in energy domain. I am
convinced that all the scientific and technical resources gathered by the partners will boost
development of the prospective area in the shallow waters of the Absheron Peninsula,' said Vagit
Alekperov, PJSC LUKOIL President.
'We are pleased to welcome LUKOIL to the SWAP partnership, building on our successful
relationship in the Shah Deniz project. We look forward to working closely with them and SOCAR
on the exploration work programme, which, if successful, will deliver value to Azerbaijan and to our
partnership,' said Gary Jones, bp's regional president for Azerbaijan, Georgia and Turkey.
Shallow Water Absheron Peninsula (SWAP) exploration project
The SWAP project area is located in the shallow waters south of the Absheron Peninsula in the
Azerbaijan sector of the Caspian Sea. The SWAP production sharing agreement was signed
between bp and SOCAR in December 2014.
In 2016, a 3D seismic acquisition programme was conducted in the area, which resulted in defining
three prospective areas – North Khali, Bibi-Heybat East and Garabatdag. The areas feature water
depths of up to 40 metres.
The first exploration well in the North Khali prospective area was spudded in August 2021.

Asia could accelerate its transition to renewable energy
CNBC- Yen Nee Lee@YENNEE_LEE
Aerial view of a wind-solar hybrid photovoltaic power station on Sept. 12, 2020 in Zaozhuang,
Shandong province of China.
Asia could move more quickly in its transition to renewable energy, said an executive
from Sembcorp Industries, a Singapore-based power and urban development company.
“Definitely in terms of accelerating the transition, we could go faster,” Eugene Cheng, the company’s
group chief financial officer, told CNBC’s “Squawk Box Asia” on Thursday from the climate
conference Ecosperity Week.
Cheng was asked if surging gas prices in Europe and an ongoing power crunch in China indicated
that the world is moving too slowly toward renewable energy and net-zero carbon emissions.
The executive said renewable energy accounts for more than 20% of average energy generation
across Asia, compared with more than 40% in Europe.
“So, I think we do need to drive a transition quicker and that will take a combination between
governments and also the private sector,” he said.
Sembcorp launched a “sustainability-linked bond” on Wednesday to raise 675 million Singapore
dollars ($496 million). The 10.5-year bond has a coupon rate of 2.66%, which will be raised by 25
basis points if the company doesn’t meet its target to cut the intensity of carbon emissions.
To meet the target, Sembcorp aims to increase by four times its capacity to generate energy from
renewable sources to 10 gigawatts by 2025, said Cheng.
The company is stepping up renewable energy projects across Asia, with a particular focus on solar
and wind projects in China, India and Southeast Asia, he added.

High global demand, low global supply contribute to rising U.S.
propane spot prices…Source: U.S. EIA , based on data from Refinitiv, an LSEG business
Since mid-September 2020, wholesale propane prices at Mont Belvieu, Texas, the main U.S.
hydrocarbon gas liquids (HGL) hub, increased to an average of $1.33 per gallon (gal) during the
week ending September 24, 2021, the highest weekly average since February 2014.
Wholesale propane prices have increased because of high international demand and low global
propane supply. The United States exported an average of 1.3 million barrels per day (b/d) of
propane in the first half of 2021, 100,000 b/d more than in the first half of 2020, despite relatively
flat production and domestic consumption.
The U.S. propane market has tightened because of the increase in exports, and wholesale U.S.
propane prices have risen in line with wholesale propane prices in overseas markets. U.S. exports
of propane during the first half of 2021 accounted for 60% of total U.S. propane demand when we
combine domestic consumption and exports, up from 58% in the first half of 2020.
We forecast that net exports of HGLs from the United States will remain high through the end of the
year and then gradually decline as OPEC+ crude oil production rises, resulting in increased global
production of associated propane and other natural gas plant liquids.
The general imbalance between growing global propane demand and reduced global propane
production has contributed to wholesale propane prices in Northwest Europe and East Asia that
have more than doubled in the past year.
Because Northwest Europe and East Asia are net importers of propane, which is used in both
markets for domestic space heating and as a petrochemical feedstock, the supply and demand
imbalance has driven up prices in both regions as importers aim to secure supplies.

Relatively high international prices and strong integration between the U.S. propane market and the
global market through exports have resulted in U.S. wholesale propane prices rising alongside
prices in major international markets.
U.S. imports of propane from Canada have also decreased this year because producers in Canada
have developed new export outlets where propane can be exported from Canada directly to major
importers in the Pacific Basin by tanker.
Two new export terminals were completed in British Columbia on the west coast of Canada: the
AltaGas Ridley Island Propane Export Terminal and the Pembina Prince Rupert Terminal, which
together can export more than 70,000 b/d of propane overseas, rather than into the U.S. Midwest
by rail.

NewBase September 30-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil mixed after U.S. inventories post surprise gain
Reuters NewBase
Oil prices were mixed on Thursday as selling prompted by an unexpected rise in U.S. inventories
eased, with analysts predicting supply may not keep up with a recovery in demand.
Brent crude was down 8 cents at $78.56 a barrel by 0615 GMT, after falling 0.6% on Wednesday.
U.S. oil rose 11 cents to $74.94 a barrel, having also declined by 0.6% in the previous session.
U.S. oil and fuel stockpiles increased last week, the U.S. Energy Department’s Energy Information
Administration (EIA) said on Wednesday.
Crude inventories were up by 4.6 million barrels in the week to Sept. 24 to 418.5 million, EIA data
showed, compared with analysts’ expectations in a Reuters poll for a 1.7 million-barrel drop. [EIA/S]
Oil price special
coverage

Both contracts tilted into higher territory earlier in the session, following two days of losses, with oil
bulls possibly looking for the next barrier to breach after Brent rose above $80 for the first time in
three years on Tuesday.
“The underlying physical fundamentals remain supportive, with the gradual ramp-up of OPEC+
supply still lagging the demand recovery,” Citigroup Global Markets analysts said in a note.
Citigroup is forecasting oil balances to be in a 1.5 million-barrel-per-day deficit on average over the
next six months, even with continued supply increases.
Next week, the Organization of the Petroleum Exporting Countries and allies including Russia, a
grouping known as OPEC+, are expected to hold to a pact on adding 400,000 barrels per day (bpd)
to their output for November.
The rise in U.S. inventories came as production in the Gulf returned to around the levels they were
before Hurricane Ida hit about a month ago. Output rose to 11.1 million barrels per day last week,
but U.S. drillers haven’t been so quick to turn the taps on after being slammed by shareholders for
fast and loose expansion in the past.
The power crisis and housing market concerns in China have also hit sentiment recently because
any fallout for the world’s second-biggest economy would likely have meant a hit on oil demand,
analysts have said.
“Demand from fuel-switching into the power generation sector could even increase the deficit,”
Citigroup anlysts noted.
China is the world’s biggest crude importer and its second-largest user after the United States.

NewBase Special Coverage
The Energy world – Sep - 30- -2021
Chinese Mining Law Is Hobbling Global Energy Security
(Bloomberg)
China’s current energy crisis can be traced back in part to a legal amendment targeting miners that
garnered little notice when it went into effect in March.
Article 134 in China’s criminal law elevated penalties for a series of violations from fines to possible
jail time in response to an increase in mining-related accidents.
However, that law led to a newfound hesitancy among miners to boost production and intensified a
supply deficit that could not come at a worse time for President Xi Jinping as the country faces a
severe power crunch amid a surge in energy demand. The crisis also threatens to slow economic
growth and snarl global supply chains.
The heightened punishments are a key reason that miners were hesitant to increase their output
despite government calls to ameliorate the power crisis, according to five traders and analysts who
spoke to Bloomberg this week on the condition of anonymity.
The industry’s ability to flexibly respond to demand surges has been further stymied by increased
safety inspections and an anti-corruption campaign in a major coal-producing region.
China’s current power crunch is affecting about 20 provinces and regions, representing over 66%
of its GDP. Coal has long been central to China’s power generation, and broader economy -- the
country produced around 3.8 billion tons of coal every year in past decade, the same level as the
rest of the world combined.
Prior to the enactment of the legal amendment, the miners were able to respond more nimbly. For
example, when the industrial recovery from the pandemic caught miners by surprise last winter and

led to coal shortages and power cuts during a December freeze, miners drove production to an all-
time record that month amid orders to boost output. The surge in prices cooled by the end of
February.
But that ramped up production came at a cost. Mining deaths reversed a years-long trend and rose.
Officials later placed the blame on companies for allowing unsafe practices in their rush to benefit
from higher prices. Article 134, aimed at reducing casualties, came following those tragedies.
Along with the stricter penalties
came increased safety inspections
ahead of the Communist Party 100th
anniversary celebrations in July. The
party has long been associated with
coal miners, as a young Mao Zedong
helped organize a historic strike
among coal miners in the city of
Anyuan in Jiangxi province, an effort
that was immortalized in one of the
most famous paintings of the iconic
leader.
Further exacerbating the problems
for coal miners is a corruption probe
that begin in early 2020 in the
autonomous region of Inner Mongolia, which was once the top producer of coal in China. Output
there has fallen for two straight years since 2019, while a nationwide effort to reduce overcapacity
in the past decade forced closures of many outdated and dirty coal mines.

The result: Coal production overall has stalled. Output was up 16% year-over-year at the end of the
first quarter, but that has dropped to just 4.4% at the end of August. Meanwhile, thermal power
demand is up 14%, leaving coal inventories shriveled and prices soaring to record levels.
Coal is now so expensive in China that most power plants are operating at a loss. Some are running
at reduced levels or shutting for maintenance to avoid hemorrhaging more cash, contributing to the
electricity shortages.
A possible La Nina weather event this winter, which would bring colder-than-usual temperature,
would further worsen the crisis.
China’s Coal Shortage Means Higher Prices for the World
China, the world’s top coal consumer, is in dire need of more supply and is willing to pay any price
-- a move that threatens to leave less fuel for energy-starved rivals.
With winter on the way for much of the world and natural gas prices at record levels, economies
across the globe are competing for a finite supply of coal. At the center of the scramble is China,
where stockpiles are low and demand is at an all-time high.
The dirtiest fossil fuel, which was struggling against cleaner energy sources, is now seeing its
biggest comeback ever, complicating international climate talks set to begin in just a few weeks.
China will expand coal procurement at “any price to ensure heating and power generation in winter,”
the China Electricity Council said in a statement on Monday. While more than 90% of the fuel the
country uses is mined locally, it’s difficult to raise local output at short notice.
European coal has risen to a 13-year high, and Australian Newcastle coal has more than tripled
over the past year to within range of the record set in 2008. Chinese thermal coal futures on the

Zhengzhou Commodity Exchange rose as much as 3.6% Wednesday to reach an intraday record
for a third straight session.
A few months ago, Chinese buyers were on the sidelines of the spot market, complaining about
prices being too high and noting that they could weather the storm with domestic inventories,
according to traders with knowledge of the matter. Now those buyers are singing a different tune,
as power plant operators have turned frantic, asking traders and importers to source overseas
cargoes, they said.
Meanwhile, coal use in Europe is expect to increase through winter amid lower renewable power
output, record-high natural gas prices and planned closures of nuclear reactors. India’s massive
fleet of coal plants is running dangerously low on stockpiles, with more than half of the nation’s
plants with less than a week of inventories. It will need more overseas supplies to make up for weak
domestic production, further tightening the already thin spot market.
“Asia doesn’t have enough coal,” said Saad Rahim, chief economist at major commodity trading
house Trafigura Group.
Australia Dispute
China has traditionally purchased nearly all of its coal supplies from producers within Asia, but that
changed last year when it stopped buying from Australia amid a political dispute between the once-
close trading partners, leading to sporadic shortages.
As an alternative, China began steadily boosting coal imports from some of South Asia and Europe’s
mainstay suppliers.
The country has imported 4.4 million tons of thermal and coking coal from South Africa so far this
year, compared to zero from 2015 to 2020, according to customs data. Imports from Russia, a key
supplier to Europe, have doubled so far this year, while deliveries from the U.S. are up seven-fold.

At the same time, Europe has been trying to snag shipments away from Asia. Importers in Eastern
Europe have been buying supplies from Australia -- a rare move that illustrates how desperate they
are for coal, according to traders, who requested anonymity to discuss private details.
Inventories at six major Chinese power groups are down 31.5% from last year and at the lowest
seasonal level since 2017, Morgan Stanley analysts including Sara Chan said in a Sept. 27 research
note. “Independent power producers’ low inventory has quickly driven up stocking demand for coal,
leading to coal price spikes in seasonally weak period,” they said.
Breakneck Demand
While China mines half of the world’s coal, its supply hasn’t been able to keep up with its breakneck
demand. Thermal power generation in the year through August is 14% higher than last year, while
coal production is up 4.4%, in large part because of safety crackdowns after a spate of high-profile
deadly accidents. Imports have risen more than 20% since the start of June, but the country still
needs more to fill that gap.
“Given the coal shortage in the country, we can expect China to ramp up its buying activity,” said
Abhinav Gupta, a dry cargo research analyst at Braemar ACM Shipbroking.
To make matters worse, global coal supplies have fallen as major producers Colombia and
Indonesia have struggled with heavy rain, while some mines elsewhere have closed because of the
pandemic. Investment in new mining projects has almost come to a halt in recent years, with banks
cutting lending to coal companies as the world seeks to avert the worst effects of climate change.
“We’re seeing a shortage of coal in some markets” following Europe’s energy crunch, Colombia
Energy and Mining Minister Diego Mesa Puyo said in an interview. The Dominican Republic has

been facing issues contracting for coal because of the crises abroad, and Colombia is working to
secure some supply for the nation from its own mines, he said.
Labor shortages are making it hard to hire additional miners to add shifts, according to Ernie
Thrasher, chief executive officer of Xcoal Energy & Resources LLC. Some of Xcoal’s current
deliveries are running two to four weeks late amid surging demand, though Thrasher described the
disruptions as “nothing out of the ordinary.”
For China, the options to deal with the global supply crunch are limited. Beijing could decide to ease
the ban on Australian coal imports, although that may not be politically palatable. Or the government
could decide to curb supply to factories at the expense of economic growth.
“If you look at China, they have not been able to restock in the period they should be restocking,”
Jan Dieleman, head of Cargill International’s ocean transportation business, said earlier this month.
“You have a very strong energy market, which is probably going to be moving a lot of coal around
in the next winter period at least.”

NewBase Energy News 30 September 2021 - Issue No. 1459 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.
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About: Khaled Malala 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 Energies program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.

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