New base energy news 03 september 2020 issue 1370 by senior editor khaled alawadi

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NewBase Energy News 03 September 2020 - Issue No. 1370 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: ADNOC signs $B5.5 real estate deal with Apollo-led consortium
Reuters + NewBase
Abu Dhabi National Oil Company (ADNOC) said on Wednesday it had entered into a $5.5 billion
real estate investment partnership with a consortium led by Apollo Global Management Inc (APO.N).
ADNOC, the state-owned oil company of Abu Dhabi in the United Arab Emirates, said in a statement
that the transaction will result in upfront proceeds of $2.7 billion and is expected to close before
year-end.
“The strategic investment will leverage the rental income streams from select ADNOC real estate
assets under a 24-year master lease agreement,” it added.
Under the real estate transaction, which ADNOC said was one of the region’s largest, private equity
firm Apollo led a consortium of institutional investors to acquire a 49% stake in Abu Dhabi Property
Leasing Holding Company, a wholly owned ADNOC affiliate.
ADNOC will retain a 51% majority stake, maintaining full ownership and control over the select real
estate and social infrastructure assets, it added.
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“This strategic partnership allows ADNOC to unlock and monetise significant value from its non-oil
and gas strategic infrastructure assets and reinvest into our core business to deliver further growth
and realise greater returns,” ADNOC’s Chief Executive Officer Sultan al-Jaber said
, “We are pleased to partner with Apollo and leverage their world-class real estate asset
management expertise to achieve international best practice standards in managing and driving
cost efficiencies across our real estate portfolio. This strategic partnership allows ADNOC to unlock
and monetise significant value from its non-oil and gas strategic infrastructure assets and reinvest
into our core business to deliver further growth and realise greater returns.
“The innovative and flexible deal structure ensures ADNOC maintains full ownership and control
over its real estate assets, while further strengthening our balance sheet and allowing for greater
capital flexibility. This transaction builds on our highly successful and ongoing track-record of
attracting leading global institutional capital into the UAE and Abu Dhabi, further solidifying the
country’s position as a credible and trusted go-to investment destination for global investors, even
in the current unprecedented environment.”
For Apollo, the investment presents a unique opportunity to access high-quality lease assets with a
superior, risk-adjusted return profile, and lock in long-term, recurring and stable cash flows from a
tenant that is one of the world’s leading and most creditworthy energy companies and a portfolio of
assets which is expected to achieve strong occupancy and rental rates. Apollo originated and
structured the transaction, drawing upon its ability to navigate complex global market environments
and leveraging expertise across its integrated investment platform, including real estate,
infrastructure and insurance solutions.
Leon Black, Apollo Chairman, Chief Executive Officer and Founder commented, “We are pleased
to invest in ADNOC’s real estate portfolio, simultaneously supporting achievement of their strategic
plans while presenting our investors with a highly attractive risk-reward opportunity. S
ourcing and structuring a long-term institutional investment of this nature is demonstrative of
Apollo’s unique ability to embrace complexity and tailor investments to a company’s specific
objectives. In a market where high-quality, long-dated yield is scarce, this transaction allows our
institutional and insurance clients, including Athene, to participate in a proprietary investment
alongside a world-class company like ADNOC.”

Indian Oil Corp-chartered VLCC oil tanker on fire off Sri Lanka
Reuters + NewBase
A fully loaded oil tanker has caught fire off the east coast of Sri Lanka, which has dispatched an
aircraft and two navy ships to help in the rescue, a Sri Lankan navy spokesman said on Thursday.
The New Diamond, a very large crude carrier (VLCC) chartered by Indian Oil Corp (IOC), was
heading to the port of Paradip in India, where the state-run firm operates a 300,000 barrel-per-day
refinery.
The ship had sailed from the port of Mina Al Ahmadi in Kuwait, carrying Kuwait Export Crude,
Refinitiv Eikon ship tracking data showed.
The Sri Lankan spokesman, Commander Ranjith Rajapaksa, said the VLCC was ablaze about 20
nautical miles off the east coast. Earlier, sources had put the vessel’s location off Colombo, the
capital of the Indian Ocean nation.
“The Sri Lanka air force have scrambled an observation aircraft and the navy have sent in two ships
to help with rescue efforts,” Rajapaksa told Reuters.
Sri Lanka’s Marine Protection Authority said it would take measures to prevent any possible oil leak
from the tanker, which was carrying 270,000 tonnes or the equivalent of about 2 million barrels of
oil, domestic media said.

An industry source said oil product tanker Helen M, on a time charter with India’s Reliance
Industries, had also joined the rescue operations.
“The fire happened at 7.45 a.m. India time,” added the source, who spoke on condition of anonymity.
“The nature is explosion and fire and serious injury to the crew. The crew wants to abandon the
ship.”
Reuters could not immediately confirm these details independently. There was no immediate
comment from IOC, Reliance Industries and Kuwait Petroleum Corp.

China’s Record Oil Imports Slowing as Teapots Use Up Quotas
Bloomberg News
China’s record haul of crude is poised to end as state-issued allowances for imports dwindle,
potentially taking the wind out of the uneven recovery across global oil markets.
The world’s biggest importer will ship in much less crude in September and October than it did in
May and June, with private refiners seeing purchases drop as much as 40%, according to analysts
from ICIS-China and FGE. The drop-off is coming as the plants known as teapots run out
of quotas following a buying binge earlier this year.
The reduction will test the resiliency of the oil market, which has seen prices recover from the lows
of April but is still contending with virus lockdowns in major markets and OPEC+ members adding
supplies after cutbacks. China’s independent refiners were the first to recover from the virus and
have been among the most active buyers supporting oil’s rebound.
“Some active buyers have used up the import oil allowance,” said Li Li, an analyst with commodities
researcher ICIS-China. “That could shut the channel for them to further process imported oil for rest
of the year.”
Market participants had expected extra quotas for teapots to be issued for use in the fourth quarter.
But with nothing done less than a month to go before the quarter begins, refinery executives and
traders supplying these processors now say they’re not confident that it will happen.
Refiners operated by state-owned companies such as Sinopec and PetroChina Co. do not require
import quotas.
Teapots faced with quota restrictions have already begun crimping their crude purchases and
turning to alternative feedstocks such as light cycle oil and diluted bitumen, prompting spot
differentials for certain oil grades to plunge. Run rates at Shandong independent refiners rose to

about 76% of capacity as of Aug. 28, highest since June 5, according to data by industry consultant
SCI99.
In September and October, arrival of new crude cargoes purchased by private refiners, excluding
delayed shipments, could fall to 40 percent of that in May and June, according to Chen Jiyao, head
of China client advisory with FGE.
The nation’s oil imports hit a record 13 million barrels a day in June, customs data showed. Foreign
purchases are poised to fall in the coming weeks as oil-laden tankers continue to wait off major
ports and as refiners work through the overhang of crude and fuels.
Quotas aside, the recovery in China’s oil demand in the coming months will hinge on the strength
of gasoline and diesel demand during the seasonal peak period -- usually in September and
October -- and whether it’s enough to draw down record-high stockpiles. As of end July, inventories
for the two fuels were nearing the 85% threshold that’s considered the maximum safe level,
according to SCI99.
Although domestic demand for gasoline, diesel, jet fuel and fuel oil is inching higher, the overall
consumption isn’t keeping up with the “stellar recovery that crude buying or refinery runs would
imply”, according to Michal Meidan, head of China research at the Oxford Institute for Energy
Studies.
“Even with demand returning, stockpiles are building in China suggesting that the nation’s crude
buying will slow and product exports will rise,” Meidan said in an August research report.

U.S: Demand for jet fuel in the U.S. is recovering faster than in
many other markets … Source: U.S. Energy Information Administration, using raw flight data from Cirium
U.S. jet fuel consumption has been particularly affected by responses to the 2019 novel coronavirus.
However, analysis of flight-level data provided by Cirium on commercial passenger flights—a
category of aircraft that the U.S. Energy Information Administration (EIA) estimates accounted for
73% of total U.S. jet fuel consumption in January 2020—suggests that demand for jet fuel in the
United States has, so far, recovered faster than in many other major aviation markets.
Note: China* inclusive of Hong Kong and Macau; consumption assigned to the region from which each flight departed.
EIA estimates that as of August 16, 2020, consumption of jet fuel by U.S. commercial passenger
flights was approximately 612,000 barrels per day (b/d), 43% of the estimated amount consumed
on the same date one year earlier.
This estimate is considerably higher than the estimate of jet fuel consumption compared with year-
ago levels as of August 16, 2020, from Europe (36%), the rest of Africa (31%), the Middle East and
North Africa (30%), the rest of Asia (28%), and in the rest of the Americas (24%).
Relative jet fuel consumption in China (including its Special Administrative Regions Hong Kong and
Macau) was, however, higher in August; China consumed 60% of the amount used in the previous
year.
As discussed in greater detail in a previous EIA analysis, differences in the speed and degree of a
region’s commercial jet fuel consumption recovery can be attributed to a couple of key factors.
First, each market’s or country’s exposure and response to COVID-19 has been different,
particularly with respect to the timing of the disease’s arrival, the extent of government-required
restrictions, and the country’s ability to effectively contain the disease.
China’s relatively advanced state of recovery can be primarily attributed to its early exposure to
COVID-19 and its relatively strict government controls.

Second, regional differences can also be attributed to a market’s reliance on domestic, rather than
international, air travel. Because of the less severe restrictions on domestic travel (the U.S.
Department of State has officially limited or advised against travel with several dozen countries),
the shorter distances typically involved, and the larger share of domestic air travel that is non-
discretionary, domestic air travel has, in most markets, been relatively less affected by COVID-19
mitigation efforts than international air travel.
Within the United States, the decline in jet fuel consumption by commercial passenger flights was
overwhelmingly driven by a decline in the number of flights. Although an average of 24,900
commercial passenger flights departed U.S. airports each day in January 2020, by July 2020, flight
volume had declined to 13,700 per day—51% of the July 2019 level.

The decrease in the overall demand for U.S. commercial passenger flights—and by extension, jet
fuel—has not affected all flights equally, and domestic flights have been relatively more insulated
from declines relative to international flights.
Estimated U.S. jet fuel consumption by domestic commercial passenger flights fell by 47% between
January 2020 and July 2020 compared with a decline of 70% for international flights during the
same period. Consequently, the overall share of commercial passenger jet fuel consumed by
domestic flights increased from an average of 56% in January 2020 to an average of 69% in July
2020.
EIA’s methodology for estimating the volume of jet fuel consumed by commercial passenger flights
has some limitations.
Importantly, the estimate does not measure total jet fuel consumption because it does not
incorporate non-passenger cargo flights and general aviation, a category that consists of
unscheduled flights such as those made by recreational pilots, helicopters, or travelers on private
aircrafts.
The estimate also excludes jet fuel consumed by the U.S. military, which, depending on the year
and the branch of military service, can be a large amount.

NewBase September 03 -2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices hover around multi-week lows on demand worries
Reuters + NewBAse
Oil prices were hovering around multi-week lows on Thursday as worries about falling U.S. gasoline
demand and sluggish economic recovery from the COVID-19 pandemic dented sentiment.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were up 4 cents, or 0.10%, at $41.55 a
barrel by 0626 GMT. Brent crude dipped 48 cent, or 1.08%, to $43.95 a barrel.
Both benchmarks fell more than 2% on Wednesday, with WTI sliding to its lowest close in nearly
four weeks and Brent at its weakest since Aug. 21.
U.S. gasoline demand last week fell to 8.78 million barrels per day (bpd) from 9.16 million bpd a
week earlier. [EIA/S]
Other data, such as U.S. private employers hiring fewer workers than expected for a second straight
month in August, also fed fears that economic recovery was lagging.
Oil markets, however, drew some support from Iraq’s denial it was seeking exemption from OPEC+
oil cuts during the first quarter of next year.
Oil price special
coverage

Analysts warn that the upcoming refinery maintenance and the end of summer driving season would
also limit crude demand.
WTI crude has come under pressure “after U.S. refiners earmarked a long list of maintenance
closures over the coming months that will no doubt impact demand for crude oil”, ANZ Research
said in a note on Thursday.
“This is compounded by weak refining margins, which are their lowest in nearly a decade for this
time of the year.”
Due to shutdowns ahead of Hurricane Laura, U.S. refinery utilization rates fell by 5.3 percentage
points to 76.7% of total capacity.
“These factors suggest a seasonal drop off in refinery runs and higher oil inventory levels as we
advance through September,” AxiCorp market strategist Stephen Innes said.
Commonwealth Bank (CBA) forecasts Brent will average $46 in the fourth quarter before rising to
$55 by the end of 2021.
“There is enough spare oil capacity and enough pressure on demand growth to justify only a
gradual increase in oil prices over the next 12 months,” CBA commodities analyst Vivek Dhar said
in a note.
The Organization of the Petroleum Exporting Countries and allies, a grouping known as OPEC+, is
currently cutting output by 7.7 million barrels per day (bpd) until December to support prices as the
coronavirus crisis hammers demand.
Oil Steadies After Dollar-Driven Slump With OPEC Supply in Focus
Oil steadied in New York after the biggest plunge since July on a stronger dollar, with concerns over
OPEC supply back in focus.
Futures have been whipsawed by the dollar this week, with a rising U.S. currency helping to drive
oil 2.9% lower on Wednesday to the lowest level since early August. Meanwhile, Iraq may seek a
two-month extension to implement compensatory cuts under the OPEC+ output agreement,
indicating the producer won’t be able to curb its production as quickly as previously promised.

Oil’s rally has faltered near $43 a barrel with prices struggling to convincingly push higher as rising
coronavirus infections raised concerns about the recovery in consumption. OPEC is also testing the
appetite for demand by returning more supply to the market, while Chinese crude purchases are
slowing.
“Crude has been too range-bound for too long and that usually tends to make market participants a
little bit nervous,” said Vandana Hari, founder of consultant Vanda Insights in Singapore. “I don’t
see a sustained drop in prices from here, there are compelling factors supportive of crude” such as
a sustained decline in U.S. oil inventories, she said.
Iraq pumped above its OPEC+ quota earlier this year and as a result it’s now making deeper cuts
to compensate. Initially, Baghdad promised to resolve the matter in August and September, but it’s
signaling it may need a bit longer.
U.S. crude stockpiles fell by more than 9 million barrels last week, according to a report from the
Energy Information Administration, but the large draw likely reflected the impact from Hurricane
Laura. Output dropped below 10 million barrels a day for the first time since 2018.
Meanwhile, Saudi Arabia continued to divert its oil away from American shores, with its deliveries
in August likely to be the lowest in decades. Saudi exports to the U.S. slid to about 177,000 barrels
a day last month, tracking data shows, although that number could rise as more ships indicate their
destination.

NewBase Special Coverage
The Energy world - Special 03 - September -2020
Utilities Are Slowing Down the Clean Energy Transition
Bloomberg - Akshat Rathi and Will Mathis
A new study says most owners are standing pat in using fossil fuels even as the price of renewables
declines.
Even as the world has added a record amount of new renewable power, utilities globally have
moved too slowly to transition away from fossil fuels to generate electricity, according to a
study published today in Nature Energy.
Emissions rise from cooling towers at a coal-fired power station in Tongling, China. Photographer: Qilai Shen/Bloomberg
Between 2001 and 2018, only about 10% of the more than 3,000 utilities studied prioritized
renewable energy over fossil fuels. That accounted for 55 gigawatts of new energy-generating
capacity, largely wind.
Another 14% of the utilities put more emphasis on coal and natural gas over renewables. And the
rest essentially maintained the status quo—they didn’t show a net change in their fossil-fuel
generation or renewable power assets.

Slow Movers
Global utilities have prioritized growth in gas over renewable power.
That’s not good enough for the energy transition, said Galina Alova, a researcher at the University
of Oxford and the author of the study. “It’s not only about adding renewables to the system but also
getting rid of fossil fuels or, at a minimum, not growing them.”
Renewables have grown rapidly despite the lack of interest from utilities in owning those assets. As
governments around the world provided subsidies or laid down policy mandates to increase the
share of renewables, independent power producers (IPPs) jumped at the opportunity of the high
risk, high reward game. IPPs built wind and solar farms, then signed long-term power purchase
agreements with utilities.
Exponential Growth
Solar and wind now produce as much carbon-free power as nuclear.

As a result, by the end of 2018, utilities owned only 18% of renewable power assets like wind and
solar farms, compared to about 75% for IPPs. Those owners have been key to doubling the
global share of renewables in the electricity mix in the last five years.
At some point, however, more utilities will have to clean up their acts or face a “significant risk of
stranded assets,” said Alova. That’s because clean energy is already the cheapest source in
much of the world and set to get cheaper. Many fossil fuel power plants could become uneconomical
sooner than utilities think.
“All the markets are saying where the growth is will be in the clean stuff,” said Albert Cheung, head
of analysis at BloombergNEF. “So it should matter to them if they’re not well represented in this
picture.”
Biggest U.S. Utility Says Going Green May Cost You $58 a Month
Duke Energy Corp., the nation’s largest electric utility, says it can cut greenhouse gas emissions
more than 70% in the next 15 years in North and South Carolina -- but doing so could cost
customers up to $58 a month.
The company has drafted six roadmaps for cleaning up its energy mix. One would close Duke’s
remaining coal-burning plants as quickly as possible, replacing them with new natural gas plants,
along with wind and solar backed by batteries.
Another would eschew new gas plants for batteries, offshore wind farms and small nuclear reactors.
All would have a cost to consumers, adding between $21 and $58 to monthly electricity bills in 2035.

Duke, which supplies electricity in six states, isn’t championing any particular plan, according to Cari
Boyce, the company’s senior vice president of enterprise strategy and planning. Instead, the
proposals are meant to illustrate the various ways the company can achieve its goal of net-zero
emissions by 2050, while highlighting the trade-offs.
“We wanted to have a real clear-eyed view of what the implications are,” Boyce said.
How the company fares in its plan to deeply slash emissions will help inform other utilities charting
their own transitions to cleaner energy amid mounting concerns about climate change. Democratic
presidential nominee Joe Biden has set a 15-year timetable for eliminating emissions from the
electric system, while states from New York to California have established their own mandates to
hasten the shift from fossil fuels to renewables.
All of the scenarios drafted by Duke and presented to state regulators in North and South Carolina
Tuesday would put the company on a path to net-zero emissions, although some would go further
than others.
They would all require massive infrastructure investments in new power plants and transmission
lines. The least expensive option would call for nearly $80 billion in revenue through 2050, while the
most expensive would require $108 billion.
The cheapest option – adding new gas plants, solar and batteries to the grid – would cut emissions
53% below 2005 levels by 2035 and boost monthly bills by $21 for residential customers of Duke
Energy Progress, one of the company’s two utilities in the region. The most expensive, blocking
all new gas plants, would reduce emissions 73% and add $58 per month.
For customers of Duke Energy Carolinas, bills would rise $23 per month in the lowest-cost
scenario, and $45 in the highest.
While the scenarios are intended to help shape future conversations, they also reflect debates well
underway. North Carolina regulators, for example, asked the company to study retiring all remaining
coal plans as fast as possible, regardless of cost, Boyce said. A clean energy plan drafted last year
by the state’s Department of Environmental Quality calls for a 70% cut in emissions from the energy
sector by 2030, the focus of two of Duke’s scenarios.
Other parties wanted to see the costs of meeting future energy needs without new gas plants.
Although that possibility is included in the filing, it is the most expensive of the six scenarios
presented, and all of the others include building at least 6 gigawatts of new gas-burning plants.

NewBase Energy News 03 September 2020 - Issue No. 1370 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. 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, and an international consultant, advisor, ecopreneur and
journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-
to-energy, renewable energy, environment protection and sustainable development.
His geographical areas of focus include Middle East, Africa and Asia. Khaled has
successfully accomplished a wide range of projects in the areas of Gas & Oil with
extensive works on Gas Pipeline Network Facilities & gas compressor stations.
Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2020 K. Al Awadi

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New base energy news 03 september 2020 issue 1370 by senior editor khaled alawadi