NewBase 601 special 11 May 2015

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,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 1
NewBase 11 May 2015 - Issue No. 601 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Qatar eyeing 2% of its power output from solar by 2020
Gulf Times + NewBase
Qatar plans to have 2% of its power output or 1.8 giga watts (GW), accounted for by renewable
resources by 2020, a new report has shown . “Qatar solar energy has a three-phase plan to
subsequently increase Qatar’s solar energy output to 2.5GW per year,” said
Qatar Solar Technologies (QSTec) chairman and CEO Dr Khalid K Al-
Hajri in an interview with The Business Year, whose 2015 Qatar Edition was
launched in Doha yesterday.
He stressed that these plans “have come one step closer to fruition” with the
June 2014 unveiling of the state-of-the-art solar panel manufacturing factory
in Ras Laffan Industrial City, which produces photovoltaic cells with
singularly efficient solar energy needs.
“The near future is very exciting. We will start the production of high-quality
polysilicon for solar panels in early 2015. At the same time, we will be conducting a number of
activities related to awareness of the solar industry,” al-Hajri said.
Al-Hajri noted that the factory complements Qatar’s first
world-class solar test facility at the Qatar Science and
Technology Park (QSTP), which was inaugurated in 2012. In
collaboration with GreenGulf and Chevron, the QSTP-based
facility tests emerging solar technologies from around the
world in order to identify those best suited to the climate of the
Gulf region.
According to Al-Hajri, the solar panel factory aims to reduce
Qatar’s dependence on fossil fuels. At present estimates, the
facility will produce 8,000 tonnes per annum of high-grade
polysilicon for export to the world’s solar energy markets,
which have seen exponential growth in the past decade.
“This demonstrates Qatar’s commitment both to the
alternative energy sector and to being on the cutting edge of
renewable energy,” Al-Hajri said . He noted that the cells
being produced in the country are setting a new benchmark
for the economic sustainability of solar power in Qatar.
“The solar panels take about 12 months to produce the same
amount of energy required to be manufactured, and can then
be expected to continue producing solar energy for another
25 to 30 years,” he said.

He also said the facility will reinforce local photovoltaic systems, citing the recently completed
Solar Smart-Grid Project at the Education City. With 1.68MW of photovoltaic systems, it is capable
of powering a range of
buildings inside the
Qatar Foundation (QF)
campus.
Al-Hajri said demand for
the types of cells being
produced at Ras Laffan
will increase further in
the coming years as
Qatar continues its
process of powering its
desalination plants using
solar energy.
Also, to guarantee a
carbon-neutral World
Cup in 2022, al-Hajri
said Qatar plans to have
the new air-conditioned
stadiums draw the
greater portion of their energy load from 100MW grid of photovoltaic and solar thermal panels.
“Qatar’s own solar needs promise to make the investment in photovoltaic cell production a
profitable one – and even if they didn’t, international solar demand would provide a growing export
market,” al-Hajri said.
According to studies conducted by the UN Environmental Programme, a single square kilometre
of land in Qatar receives as much solar energy in one year as is contained in 1.5mn barrels of oil.
“Unlike 1.5mn barrels of oil, solar energy isn’t exhaustible,” al-Hajri stressed.

Dubai is stronger for steering clear of oil-based economy
Robin Mills +The National + NewBase
Dubai, with its modest oil resources, long ago realised it had to become a post-oil economy. The
sharp drop in oil prices from the middle of last year highlights the wisdom of this decision. But how
insulated is the emirate’s economy from oil? And what, if anything, can its Arabian Gulf
neighbours learn from it?
Speakers at a
Bloomberg
conference, who
gathered recently to
discuss the impact of
falling oil prices on
Dubai, were quite
sanguine. With falling
output since the early
1990s and rapid
expansion of other
sectors such as
tourism, trade,
aviation and finance,
oil now makes up
less than 2 per cent
of the emirate’s GDP.
Dubai has the
busiest international
airport, the largest
artificial port, and
what will probably
soon be the biggest airline in the world.
Oddly enough, Dubai has perhaps not made as much of its energy sector as it might have done. It
has, for example, not become a major hub for oil trade and equity listings in the same way as
Singapore or London, nor a centre for refining and petrochemicals such as Singapore.
But part of Dubai’s genius has been to attract business and capital from the rest of the region, just
as Singapore and Hong Kong previously played the role of windows into China. Visitors from oil-
exporting areas such as Saudi Arabia, Abu Dhabi, Iran and, farther afield, Russia and Nigeria,
have flocked to the city to do business and spend, enjoy or invest their money.
Apart from Russia, where recession, sanctions and currency collapse had already led to a sharp
drop in visitors to Dubai, the oil price fall has not yet sharply curtailed spending in other major
trade partners.
But some impact is inevitable. Confidence in the wider Middle East economy has already suffered,
probably contributing to Dubai’s property market slowdown. And if oil prices stay low for an
extended period, budget cuts in major Gulf neighbours will translate to fewer visitors spending
their oil-funded bonuses in The Dubai Mall or Downtown real estate brokerages.

However, this test of lower oil prices may come at a good time for Dubai — when national banks
are in better shape, the emirate’s debt restructuring is largely complete, and when regulatory
action has already cooled off a nascent real estate boom in 2013.
Dubai’s recent trajectory has aligned
perfectly with dominant global trends
that will give it a measure of
protection against oil prices. World
transport and trade benefit from lower
fuel bills — bringing down the cost of
airline tickets. Major energy-importing
trade and tourism partners — China,
India, Pakistan, Turkey and Egypt —
will benefit from reduced oil costs.
And close trade links with Iran should
revive if United States-led sanctions
on Tehran are lifted.
The city also benefits directly from
lower energy bills. It will save about
$1.2 billion annually on cheaper
liquefied natural gas imports.
Government-owned Enoc said it
spent $735 million on subsidising
petrol sales in 2011, a figure that
should also fall. Dubai has since 2013 moved faster than any of its neighbours to embrace solar
power.
In general, the Emirate is one of a few — almost the only — of the Mena constituents to use its
favourable geography to ride the wave of globalisation and the rise of Asia. In turn, that lifts the
whole UAE and gives the country greater resilience. But the Middle East’s major oil exporters are
less favourably placed. They cannot all be finance and tourism hubs. High-tech manufacturing,
reduced subsidies and greater regional integration are all parts of the answer.
Ultimately, perhaps the question should not be whether Dubai’s model can cope with lower oil
prices. Oil will always be a volatile commodity, and its future is uncertain. Instead, the key task is
to make the bold and sometimes difficult choices to ensure continuing success, regardless of the
vagaries of energy markets.

Saudi Electricity forges deal to bolster efficiency of power plant
Saudi Gazette + NewBase
Saudi Electricity Company (SEC) has named Black & Veatch as Owner’s Engineer for the Qassim
II &III Conversion. The project will generate additional power without using significantly more fuel.
This comes at a time when Saudi Arabia is seeking to improve its power generation efficiency.
Qassim Power Plant serves the people of Buraydah, the capital of Qassim region, in the heart of
the Arabian Peninsula. The power
plant is being expanded to meet
the increasing demand of power
in this region through a
conversion from simple cycle
operation to combined cycle
operation.
“We are helping SEC enhance
Qassim to meet the local
community’s increasing need for
power,” said Mazen Alami,
Managing Director, Middle East at
Black & Veatch.
“Black & Veatch is a recognized
leader in the best practices and
technology shaping power
generation. In addition to helping
the utility meet its goal of more efficient power generation infrastructure, our role will help develop
local skills through knowledge transfer to SEC’s engineers,” he added.
The project will convert 12 oil fired simple cycle combustion turbines to combined cycle operation;
this will increase generation capacity by approximately 360 MW. The conversion project was
tendered on an engineer, procure, construct (EPC) basis. Black & Veatch’s role is to work closely
with SEC to provide engineering, procurement, and construction oversight and supervision and to
provide theoretical and practical training for SEC engineers.
Black & Veatch has been serving the Middle East since 1920s, undertaking projects that enhance
quality of life: power generation to support economic development, and water sanitation to
improve health. Black & Veatch’s energy business has been working in Saudi Arabia since the
1970s. Before the signing of the Qassim contract, the company’s most recent work for SEC was
Power Plant 3 (PP3) expansion project in Jeddah.
Demand for electricity in Saudi Arabia is growing at a significant annual rate of approximately 8%.
It is expected that, the demand for 2030 will be about 120 GW. Meeting this demand requires a
significant investment in new power plants as well as an upgrade using advanced transmission
technologies, the goal of which is to increase transmission capacity. The estimated investment
over the next 10 years is expected to be more than SR50 billion.
Based on the current electricity generation, which relies solely on oil and natural gas, by year
2030, this amounts to a consumption of approximately 3 million barrels of oil each day. Because
oil exports are the country’s primary source of revenue, the increase in oil consumption in order to

meet the ever-growing demand for electricity will have significant negative ramifications for the
Saudi Arabian economy for generations to come. There is a real and urgent need for strategic and
comprehensive planning to adopt
alternative sources of energy.
The Arab Petroleum Investment
Corporation estimates that Gulf states will
require as much as $316 billion by 2020 to
meet its growing power needs. To date,
the Gulf’s power sector has leveraged its
strength as a fossil fuel producer to source
cheap and plentiful power for the domestic
economy. But that is an expensive and
increasingly unsustainable strategy.
Crude oil is seen as an inefficient energy
source for power generation and most
economies have moved away from oil and
focused on natural gas, hydro, nuclear or renewables to generate electricity.
But countries like Saudi Arabia still depend on crude oil for power – and that’s a trend that’s likely
to continue in the absence of alternatives. Oil-fired generation is forecast to gain 27 percent over
2013-19 on the back of insufficiently growing gas production and the very low efficiency of Saudi
power plants, according to the International Energy Agency.
Saudi Arabia is the world’s 12th largest consumer of energy, accounting for 9 quadrillion British
thermal units – of which 60 percent was sourced from petroleum and the rest from natural gas.
The country now consumes three million barrels per day of crude oil domestically – roughly a third
of its production. If the country can switch to renewable or natural gas, those three million bpd
can generate as much as $180 million per day at today’s spot Brent prices.

Oman’s crude oil production falls 1.7% to 29MB in April”15
BYTIMES NEWS SERVICE + NewBase
Oman's production of crude oil and condensate stood at 28.81 million barrels in April this year, a
1.67 per cent fall in production compared to the previous month.
Average daily crude oil production stood at 960,300 barrels in April, according to a monthly report
released by the Ministry of Oil and Gas here on Sunday.
Similarly, total crude oil exports were 23.7 million barrels, which was equivalent to 790,132 barrels
per day, a decrease of 9.31 per cent, compared to March 2015.
Asian markets imported the major share of the Sultanate's crude oil. China continued to maintain
its lead among top importers of Omani crude oil in April 2015. However, imports declined by 5 per
cent in April, compared to March, to settle at a level of 82.94 per cent.
Meanwhile, imports of Omani crude by both Japan and Thailand increased by 3 per cent and 1
per cent, respectively.
Taiwan was responsible for the largest rise in April, as purchases of imported crude oil rose by 11
per cent, compared to the previous month, to settle the total exports of Omani crude oil at 12.4 per
cent.
With regard to the movement of the price of oil in April 2015, the average oil price of West Texas
American on the New York Mercantile Exchange stood at $55.65 per barrel, an increase of $6.56
a barrel.
Average Brent crude
Also, the average Brent crude at the London market was $61.77, up $4.59 per barrel, compared to
the previous month.
It is worth noting that the volatility experienced by the world oil markets, which continued through
this month, may be overshadowed by the character of the marked rise in prices, as well as several
other factors, such as the important signs of a slight decline in US oil production, and the declining
value of the US dollar and continuing tensions in the Middle East, particularly in Yemen.
Rises in prices was also attributable to the continued decline witnessed in crude oil platforms in
the United States, a reference to the affected mass production processes that are unprecedented
in North America, thus it
is anticipated that there
will be a return of some
balance between a global
supply and demand for
crude oil.
The average price of
Omani crude for June
delivery stood at $58.68
per barrel, up $3.59 a
barrel. Also, the Oman
Oil Futures Contract on
the Dubai Mercantile
Exchange rose along
with other brands
throughout the world.

Oman: Sebacic acid project to come up in Duqm
Times of Oman + NewBase
An usufruct agreement for setting up a sebacic acid project was signed by Yahya bin Said bin
Abdullah Al Jabri, chairman of the Special Economic Zone Authority at Duqm (SEZAD), and
representatives of the company. Photo: Ismail Al Farsi/Times of Oman
A first-of-its kind sebacic acid production plant is planned to be built in the Duqm Special
Economic Zone with an investment of $62.7 million, according to the officials involved in the
project.
An usufruct agreement for the establishment of the facility was signed on Sunday by Yahya bin
Said bin Abdullah Al Jabri, chairman of the Special Economic Zone Authority at Duqm (SEZAD),
and representatives of Sebacic Oman Company.
The plant will be spread over 400,000 square metres of land. Sebacic acid is extracted from
castor oil and is used in a wider range of chemical industries including plastics and
pharmaceuticals.
The ceremony witnessed the signing of partnership agreement between Sheikh Hilal bin Khalid Al
Mawali as local investor and the foreign partner Pradeep Nair as well as the signing of the
financing agreement between Sebacic Oman and Meethaq Islamic Banking.
Ismail bin Ahmed Al Balushi, deputy chief executive officer of SEZAD, said that partnerships
represent another step towards realising the vision of SEZAD to become an important economic
engine in meeting the Su ltanate's goals to diversify the sources of national income.

He explained that the plant would be the first of its kind in the Middle East and will create 450
employment opportunities in its first phase. The second phase, which is expected to begin during
the next five years, shall witness an investment of around $250 million and will provide 250 jobs,
bringing the total of employment opportunities to around 700 jobs.
SEZAD officials mentioned during the event that the available investment opportunities in Duqm
are numerous and diversified.
The last few years have witnessed the signing of many usufruct agreements with local and foreign
companies.
It was also stated that having foreign investors contributes to the development of local
experiences and promotes local capabilities to work in major projects such as the ones that are
currently being implemented.
Al Mawali, the local partner in Oman Sebacic Company, said that entering into such eco-friendly
strategic projects has always been a priority for the company.
The project would allow citizens to benefit by planting trees that produce the necessary feedstock
in the Sultanate, he said, adding that the tree is known in the Sultanate for thousands of years as
the 'castor oil plant' and that its oil has many usages and is easy to plant in different areas. Al
Mawali also confirmed the company's commitment to purchasing the farmer's produce, pointing
out that the company has begun carrying out a study that aims to encourage local Omani farmers
to grow this tree in a scientific way, especially in untapped agricultural areas.

Tanzania to finalise land acquisition for LNG project
Reuters + NewBase
Tanzania plans to spend 12 billion shillings ($6 million) in the next fiscal year to buy land for the
planned construction of a liquefied natural gas (LNG) terminal, raising hopes it is speeding up
progress of the long-delayed project. The two-train onshore LNG export terminal, which the
government says could cost up to $30 billion, has run into delays mainly due to complex land
acquisition procedures and an uncertain legal and regulatory framework.
Along with neighbouring Mozambique, Tanzania is in a race with Russia, Australia, the United
States and Canada to build LNG export plants, aiming to exploit a gap in global supply that is
expected to open up by 2020.
'The government has set aside 12 billion shillings in 2015/16 for assessment and compensation
of 450 people ... where the (LNG) terminal will be built,' the government's planning commission
said in a report seen by Reuters on Saturday. The 2015/2016 fiscal year starts on July 1, 2015.

The terminal would be built in the small southern town of Lindi, located close to an offshore deep-
sea region where huge natural gas discoveries have been made.
Tanzania is estimated to have more than
53.2 trillion cubic feet (tcf) of gas reserves
off its southern coast, but its energy
sector has long been dogged by
allegations of graft and other problems.
Tanzania's parliament last year accused
senior government officials of fraudulently
authorising the transfer of at least $122
million of public funds to a private energy
company. Three cabinet officials,
including the energy minister, lost their
jobs.Analysts said the graft accusations,
coupled with delays in passing new gas
legislation, are holding back the
development of the sector.
British gas company BG Group, together
with partners Statoil, Exxon
Mobil and Ophir Energy, plans to build an LNG export terminal, expected to start operating in
the early 2020s, but a final investment decision is only set for 2016.
Royal Dutch Shell agreed to buy BG Group last month for $70 billion in the first large oil merger
in more than a decade, giving the Anglo-Dutch company access to BG's multi-billion dollar
projects in Tanzania.

Oil Price Drop Special Coverage
Oil steady, little help from Chinese interest rate cut
Reuters + NewBase
Crude futures were little changed on Monday as moves by China to bolster its flagging economy
failed to instil confidence that oil demand in the world's largest energy consumer would improve
quickly to absorb a global supply glut and lift prices.
China cut interest rates for the third time in six months on Sunday to stoke its sputtering economy,
which is headed for its worst year in a quarter of century. "There's been limited response in the oil
markets today," said Ric Spooner, chief analyst at CMC Markets in Sydney.
"The stimulus is probably seen as helping to soften a decline rather than really turn things
around." Data on Friday showing record crude imports by China in April did not support oil prices,
either. ANZ analysts said the imports in April were "likely in response to opportunistic buying and
stockpiling".
June Brent crude edged down 3 cents to $65.36 a barrel by 0351 GMT after dropping 1.6 percent
last week. June West Texas Intermediate (WTI) dropped 12 cents to $59.27 a barrel after rising
for eight straight weeks, the longest winning stretch since late 2012 to early 2013.
U.S. crude price gains may have encouraged shale producers to resume drilling again as they
added rigs to the Permian Basin for the first time this year, oil services company Baker Hughes
Inc said on Friday.

Brent's four-week advance to hit 2015 highs halted late last week as excess European and African
crude supply dragged prices down, with a rally technically exhausted.In Libya, oil production
remained volatile after a protest closed the Nafoura oilfield, cutting output at Libya's Arabian Gulf
Oil Co (AGOCO) by some 35,000 barrels per day (bpd).

Steady oil price fall blurs GCC construction outlook
Saudi gazette + NewBase
Government spending continues to drive strong project and construction activity across the GCC
despite lower oil prices, business intelligence service MEED said.
However the outlook is increasingly uncertain as governments review their capital spending plans.
The implications of these reviews will be the central theme of discussions at the annual MEED
Construction Leadership Summit on May 27.
“The construction market in 2015 is beset with mixed signals,” said MEED News Editor Colin
Foreman. “There is a negative backdrop of lower oil prices, a cooling property market and conflict
on the GCC’s borders.
But, so far there has been no evidence of projects being cancelled, and while some schemes in
the planning stages may have slowed, many clients are still pushing ahead and tendering new
work. That said, if the macroeconomic backdrop remains a concern for the rest of 2015 and into
2016 then spending will start to be reduced and tendering activity will slow.’’
While governments across the region remain committed to delivering massive investment
programs to develop the region’s infrastructure, the change in economic landscape is forcing them
to focus on their strategic priorities. And, as a result, creating uncertainty for the construction
industry.

The MEED Construction Leadership Summit (MCLS) 2015 will be held at The Address Dubai
Marina on May 27 and the outlook for GCC construction will be the main issue under discussion.
MEED’s projects database MEED Projects figures show about $172 billion worth of project
contracts are scheduled to be awarded in 2015, the highest ever with the market being driven by
government investment in major infrastructure schemes.
“Construction work on the region’s largest projects such as Abu Dhabi International airport and the
Riyadh and Doha metros is continuing as planned, and for future work new contracts are still
being tendered, notably in Dubai,” said Foreman.
“Government and government-related clients have a mandate to develop new infrastructure and
for the most part have the financial reserves to proceed with their capital spending plans despite
the somewhat negative economic backdrop.’’
“As ever, the primary challenge for construction companies in the region is securing work, getting
paid and making a healthy margin,” Foreman further said. “For the rest of 2015 securing new work
will become an issue if the economic outlook remains subdued. If that trend continues into 2016
then cash flow and payments could start to become an issue.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 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 11 May 2015 K. Al Awadi

NewBase 601 special 11 May 2015

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (10)

Similar to NewBase 601 special 11 May 2015

Similar to NewBase 601 special 11 May 2015 (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

NewBase 601 special 11 May 2015