New base energy news 04 may 2020 issue no. 1335 senior editor eng. khaled al awadi (1)

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NewBase Energy News 04 May 2020 - Issue No. 1335 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:Dewa signs power purchase deal for MBR solar park Phase V
ME Constructions news + NewBase
Dubai Electricity and Water Authority (Dewa) has signed a 25-year power purchase agreement
(PPA) for the fifth phase of the Mohammed bin Rashid Al Maktoum Solar Park with a capacity of
900 MW, supporting its efforts to achieve the Dubai Clean Energy Strategy 2050 to provide 75 per
cent of Dubai’s total power output from clean energy by 2050.
This phase will use photovoltaic solar panels and will be commissioned in stages starting from the
third quarter of 2021, said a statement from Dewa. On completion, it will become the largest single-
site solar park in the world, based on an independent power producer (IPP) model with a planned
capacity of 5,000 MW in 2030.
In November last year, Dewa had announced the consortium led by Acwa Power and Gulf
Investment Corporation as the preferred bidder to build and operate the fifth phase of the solar
park. The Dewa had achieved a world record by receiving the lowest bid of $1.6953 cents per
kilowatt-hour for this phase and 60 Requests for Qualification from international developers for this
project.
www.linkedin.com/in/khaled-al-awadi-38b995b

To implement the project, the Dewa had established Shuaa Energy 3 in partnership with the
consortium led by Acwa Power and GIC. The Dubai utility owns 60 per cent of the company, and
the consortium owns the remaining 40 per cent.
The project will use the latest solar photovoltaic bifacial technologies, which allows solar radiation
to reach the front and back of the panels, with single-axis tracking to increase generation," remarked
Saeed Mohammed Al Tayer, MD & CEO of Dewa after signing the agreement with Mohammad
Abunayyan, the Chairman of Acwa Power, via video conferencing.
"At Dewa, we are guided by the vision and directives of HH Sheikh Mohammed bin Rashid Al
Maktoum, Vice President, Prime Minister and Ruler of Dubai to make the emirate a global hub for
clean energy and green economy. We are building major renewable and clean energy projects,"
stated Al Tayer.
"The current operational capacity at the solar park is 1,013MW from photovoltaic solar panels. We
have 1,850MW under construction from photovoltaic and Concentrated Solar Power, with future
phases to reach 5,000MW by 2030," he noted.
"The current operational capacity at the solar park is 1,013MW from photovoltaic solar panels. We
have 1,850MW under construction from photovoltaic and Concentrated Solar Power, with future
phases to reach 5,000MW by 2030," Al Tayer added.
On the key agreement, Abunayyan said: "The signing of today’s agreement is a testament to the
robust strategic partnership we have established with the Dewa, which we are immensely proud of."
"The Mohammed bin Rashid Al Maktoum Solar Park is the most ambitious and largest project of its
kind worldwide that aims to reduce the carbon footprint in Dubai and transform it into a global model
in the clean energy and sustainable green economy," stated the top official.
Abunayyan said the delivery of the project reinforces the durability and competitiveness of Dubai’s
economic landscape, which continues its steady and pioneering plans despite the current
circumstances, and reconfirms the confidence and attractiveness of the investment environment
that Dubai spearheads internationally.
"We are delighted to have been a reliable and trusted partner for Dewa’s ambitious goals. The fifth
phase will witness a prosperous collaboration with Gulf Investment Corporation and Shanghai
Electric which will undoubtedly mark a milestone in the renewable energy sector – not only at a
regional level – but on an international scale as well," he added.-

Oman’s first private power project transfers to state ownership
Oman Observer - Conrad Prabhu
Ownership of Manah Power – the first privately procured Independent Power Project (IPP) in Oman
and the wider Middle East region at the time – transferred to the Omani government on May 1,
2020, marking a key milestone in the history of this pioneering venture.
Major milestone: State-owned Nama Holding acquires 25-year-old Manah power plant following
expiry of Power Purchase Agreement.
It follows the expiry of a Power Purchase Agreement (PPA) between United Power Company (UPC),
a publicly traded joint stock entity, and state-owned Oman Power and Water Procurement Company
(OPWP), the sole offtaker of all electricity and related water output under the sector law in the
Sultanate.
The Build-Own-Operate-Transfer (BOOT) model under which Manah IPP was developed in the
nineties stipulated an eventual transfer of assets to the government – a feature that was
conspicuously absent from subsequent IPP procurements.
On Sunday, Muscat-based UPC announced that OPWP – part of Nama Group (formerly The
Electricity Holding Company) — had exercised its prerogative on behalf of the Omani government
to acquire the 264-megawatt (MW) gas-powered facility in line with the terms of the PPA.

It follows an earlier effort, albeit unsuccessful, by the state-owned procurer to negotiate an ‘Ancillary
Services Agreement’ designed to maintain the status quo beyond the contractual transfer date of
May 1, 2020.
“After a detailed discussion, OPWP has now decided to pursue their right under the PPA for the
transfer of the plant and staff to its nominee, Nama Holding Company, on 1 May 2020. We have
initiated all necessary work to process the transfer as per the aspiration of the Government of
Oman,” said Murtadha bin Ahmed Sultan, Chairman of the Board of Directors, United Power
Company, in a filing to the Capital Market Authority (CMA).
Located in Wilayat of Manah in Al Dakhiliyah Governorate, the gas-fired facility was the first privately
developed and owned power plant when it was brought into operation in stages starting in 1996.
The project provided a useful template for the procurement of new privately developed and financed
power and water schemes that underscore the success of the Omani government’s pioneering
efforts to unbundle, restructure and privatize this critical sector.
Unlike subsequent IPPs that were developed under the Build-Own-Operate (BOO) model, Manah
was conceived and implemented under the BOOT model at a time when Oman was blazing a new
trail in privately procured power projects in the region.
“Manah is a unique case, because the asset transfers to the Government at the expiration of the
current PPA in April 2020. OPWP is considering several options to allow operations to continue
under a new PPA, including a possible sale of the asset in a competitive tender,” the power procurer
had announced in 2017. “After transfer to the Government, Manah is expected to continue in service
under a new PPA, although ownership options are still under consideration.”

Algeria leader vows to develop new resources beyond energy
Reuters + NewBase
Oil and gas exporter Algeria plans to develop other natural resources including uranium, gold and
phosphate with the help of foreign investors after the end of the health crisis caused by the novel
coronavirus, President Abdelmadjid Tebboune said on Friday.
The North African country’s economy still relies heavily on energy earnings despite promises in
previous years to carry out reforms and develop the non-hydrocarbon sector. A sharp fall in oil and
gas revenue in recent years has deepened the country’s financial problems, widening the budget
and trade deficits.
The coronavirus outbreak has worsened the situation with energy earnings dropping further, forcing
the government to cut spending and planned investment for 2020.
“The novel coronavirus has frozen several plans and projects. But these plans will be launched after
overcoming the health crisis,” Tebboune said on state television. “Several resources are still
untapped. The list includes for example uranium, gold and phosphate. We are ready to develop
them with foreign partners.”
A large proportion of Algeria’s energy export revenue is used to pay for imports of goods including
food with a bill estimated annually at $45 billion. “We are determined to develop our agriculture and
reduce significantly the value of purchases from abroad,” Tebboune said.
Elected in December last year after mass protests demanding political and economic reforms and
the removal of the ruling elite, Tebboune has vowed to open up the economy and amend the
constitution to give a greater role to parliament.
But the demonstrations, which forced former president Abdelaziz Bouteflika to resign in April last
year and drop a plan to seek a fifth term in office, have continued as many protesters see Tebboune
as part of the old guard.
The protests were banned earlier this year as part of government measures to try to limit the spread
of the novel coronavirus.
“A political change will take place and strong institutions will be created,” Tebboune said, referring
to demands by the protest movement known as Hirak.
The government has decided to postpone loan payments for state and private firms financially hit
by the novel coronavirus, and Tebboune said more measures would be taken to benefit companies
and the self-employed.
“Losses of firms are being assessed. We are ready to provide financial support. Even self-employed
people such as taxi drivers and hairdressers will be helped,” he said.
The oil and gas sector accounts for most of the federal income and almost all of its
export income (over 90% of total exports). Algeria is among the top five largest gas
exporters in the world. It ranks 16th in oil reserves and 11th in confirmed gas
reserves. The ores mined in large quantities are iron, lead, phosphate, uranium,
zinc, salt and coal. The main activities of the manufacturing sector are industrial
food processing, textile products, chemical products, metals and construction
materials.

Senegal: FAR to sell all or part of its interest in the Sangomar
Source: FAR Limited
FAR Limited reports that debt financing for the Sangomar field development offshore Senegal is not
proceeding as expected due to COVID-19 and oil price impact on debt markets and the Company
has commenced a process to sell all or part of its working interest in the Senegal Rufisque Offshore,
Sangomar Offshore and Sangomar Deep Offshore (RSSD) project in parallel with investigating
alternative sources of finance.
In January, The Government of Senegal
approved the Rufisque Offshore,
Sangomar Offshore and Sangomar Deep
Offshore (RSSD) joint venture
Exploitation Plan and granted the
Exploitation Authorisation for the
Sangomar Field Development offshore
Senegal.
Woodside, as Operator of the RSSD joint
venture executed the purchase contract
for the floating production storage and
offloading (FPSO) facility and issued full
notices to proceed for the drilling and
subsea construction and instalment
contracts, including:
MODEC Inc for the purchase of an FPSO
Subsea Integration Alliance for the
construction and installation of the
integrated subsea production systems
and subsea umbilicals risers, and
flowlines
Diamond Offshore for two well-based contracts for the drill rigs Ocean BlackRhino and Ocean
BlackHawk
Following the grant of the Exploitation Authorisation, the RSSD joint venture executed the Host
Government Agreement with the Government of Senegal and took an unconditional final investment
decision (FID) for the Sangomar Field Development phase 1.
The Development and Exploitation Plan outlines the full field multi-phase development of oil and
gas and details how the Sangomar Field (formerly SNE Field) will be developed in a series of phases
using a stand-alone floating production storage and offloading facility with an initial 23 subsea wells
and supporting subsea infrastructure planned for Phase 1. The FPSO is sized for the integration of
potential future development phases, including gas export to shore and future subsea tie-backs.First
oil is targeted in 2023.
A high-definition 3D marine seismic survey across the SNE North, Spica area was completed in
February 2020.
On 27 March 2020, the Sangomar Operator, Woodside, announced the joint venture was taking
early action to manage the impacts of COVID-19 on the supply chain and project schedule. The

joint venture continues to evaluate options to reduce the total cost and near-term spend whilst
protecting the overall value of the investment.
Financing Update
COVID-19 and the recent oil price collapse adversely impacted FAR’s financing plans for the
Sangomar Field Development.
The severe tightening of global debt markets, especially for oil and gas companies, resulted in the
debt arrangements FAR had put in place at the beginning of the year being unable to close or
complete. FAR has been taking action to seek to preserve shareholder value from this world class
asset in the intervening weeks.
FAR is contractually committed to the Sangomar Field Development and the approved 2020 work
program and budget of US$163M (net to FAR). FAR recognises that it is unlikely to be able to fund
its future share of the substantial project commitments based on its current cash reserves and future
equity raises alone. The process has commenced to sell all or part of the FAR working interest and
investigate alternative sources of finance.
In addition, the joint venture is working together with our contractors to cut CAPEX and rephase
expenditure into the future to ease the pressure on all partners’ cash flow at this time. The Sangomar
Development was running US$117M under budget for the year to end of March and we expect this
trend to continue.
FAR’s Managing Director Cath Norman said:
Reaching FID on Sangomar was a momentous milestone for the joint venture and the people of Senegal and
FAR is proud to have played an integral part in the discovery, appraisal and now commitment to develop the
significant oil resource offshore Senegal. We thank all our stakeholders and assure you the joint venture is
working tirelessly with our partners to manage the impact of COVID-19 on supply chain, costs, and schedule.
The key challenge for FAR over the coming weeks is managing the fallout of the COVID-19 epidemic and oil
price rout with respect to our ongoing commitment to the Sangomar Field Development and associated work
program and budget approved for 2020. FAR thanks its shareholders for their support in the capital raise and
SPP at the beginning of the year and welcomes new shareholders to our company.
Progressing a sell down of FAR’s working interest in Senegal or arranging alternative financing for FAR’s
share of the development and at the same time preserving cash and shareholder value in our assets remain
clear objectives of the Board at this time.

Germany: Pipe vessel reaches Baltic for Russia's Nord Stream 2
Reuters + NewBase
A special pipe-laying vessel that could be used by Russia to complete construction of the Nord
Stream 2 gas pipeline to Germany has arrived in the Baltic Sea, a Reuters witness said on
Sunday.The arrival of the Academic Cherskiy suggests that the pipeline project remains a priority
for Moscow despite U.S. sanctions on Russia.
The Nord Stream 2 pipeline was designed by Moscow to increase gas supplies via the Baltic Sea
to Germany, Russia’s biggest energy customer. Russia’s energy ministry said in December that the
pipeline was expected to be launched before the end of 2020.
Footage taken by Reuters from the coast showed the Academic Cherskiy idle in a bay near the
Kaliningrad region, which is separated from Russia’s mainland and is sandwiched between Poland
and Lithuania.
The Academic Cherskiy, which Russian gas company Gazprom bought in 2016, was in the Russian
Pacific port of Nakhodka in December when the United States imposed sanctions on Nord Stream2.
The United States says the pipeline would make the continent too reliant for energy on Russia,
leaving it in Moscow’s political grip. Washington has touted exports of U.S. liquefied natural gas, or
LNG, to provide Europe with alternatives to gas pipelined from Russia.
As a result of the sanctions, the Swiss-Dutch company Allseas, which was laying the pipeline,
suspended work on it. Russia then said it was preparing to use an alternative vessel for the project,
as 160-km (100-mile) stretch near the Danish island of Bornholm has not yet been completed.
Russia did not name the vessel at the time but said it was docked at a port in its far east. Another
vessel that could potentially be used was in another location at the time, pointing to the use of the
Academic Cherskiy. It would take less than two days for the Academic Cherskiy to reach the
Bornholm area from the Kaliningrad region if it started heading that way, according to a Reuters
estimate.

U.S. crude oil inventories are approaching record-high levels
Source: U.S. Energy Information Administration, Weekly Petroleum Status Report
Recent declines in demand for petroleum products have contributed to record increases in U.S.
commercial crude oil inventories. Transportation fuel demand has decreased as a result of reduced
economic activity and stay-at-home orders aimed at slowing the spread of the 2019 novel
coronavirus disease (COVID-19).
Refiners have been able to reduce the amount of material they run through refineries (as measured
by gross inputs, which includes crude oil, unfinished oils, and natural gas plant liquids) relatively
quickly in response to falling demand, but crude oil production has not responded as quickly, leading
to large crude oil inventory increases.
From March 13 (when a national emergency was declared in the United States) to April 24, U.S.
commercial crude oil inventories increased by 74 million barrels (16%) and are now 8 million barrels
below the record-high value set in March 2017, according to data in the U.S. Energy Information
Administration’s (EIA) weekly series that dates back to 1982. Commercial crude oil inventories for
the week ending April 10 increased by 19.2 million barrels, the largest weekly change in EIA’s data.

The U.S. Gulf Coast region, home to more than half of U.S. refining capacity, typically has the most
crude oil inventories. From March 13 to April 24, Gulf Coast inventories increased by 36.4 million
barrels (20%) to 221.6 million barrels. The increase of 10.2 million barrels in the week ending April
10 was the fourth-largest increase in the Gulf Coast region on record.
Inventories in the crude oil storage hub in Cushing, Oklahoma, increased by 24.9 million barrels
(69%) from March 13 to April 24. The weekly inventory builds in Cushing for the weeks ending April
3, 10, and 17 are the three largest weekly inventory builds on record.
Because market participants that hold West Texas Intermediate (WTI) futures contracts to expiration
must take physical delivery of WTI crude oil in Cushing, the availability of crude oil storage there is
important to facilitate the physical transfer.
On April 20, 2020, the scarcity of available crude oil storage at Cushing meant several market
participants sold their futures contracts at negative prices, in effect paying counterparties to close

out of their contracts for them. Another important factor is that a portion of unused space at terminals
is required for normal functioning of petroleum storage and transportation systems, and the unused
space could be held for incoming crude oil or other operational considerations.
To help stakeholders better assess crude oil storage and capacity, EIA began providing weekly
estimates of U.S. crude oil storage capacity utilization in the Weekly Petroleum Status
Report (WPSR). EIA surveys inventory levels weekly, but because capacities rarely change, crude
oil storage capacities are surveyed less often.
EIA’s most recent Working and Net Available Shell Storage Capacity Report was released in
November 2019 with data through September 2019; the next release will be on May 29, 2020, with
data through March 2020.
In EIA’s Weekly Petroleum Status Report published yesterday, U.S. crude oil storage has reached
61% of working capacity, up from 60% the previous week. In the Gulf Coast and Midwest, storage
capacity utilization rose to 60% and 65%, respectively. Within the Midwest region, storage utilization
at Cushing, Oklahoma, rose to 81%.

NewBase May 04-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices slide on demand concerns, US-China trade tension
Bloomberg + Reuters + NewBase
Oil prices fell on Monday, paring last week’s gains, on worries a global oil glut may persist amid
slumping demand and U.S.-China trade tensions that could restrict an economic recovery even as
coronavirus pandemic lockdowns start to ease.
U.S. West Texas Intermediate (WTI) crude futures fell as low as $18.10 a barrel earlier in the
session and were down $1.14, or 5.8%, at $18.64 at 0506 GMT. The benchmark contract rose 17%
last week.
Brent crude futures were down 24 cents, or 0.9%, at $26.20, after touching a low of $25.50. Brent
rose about 23% last week following three consecutive weeks of losses.
Oil price special
coverage

The market found support last week on signs of reduced infection rates and as major oil producers
led by Saudi Arabia and Russia were set to begin cutting production on May 1. The top two U.S.
producers, Exxon Mobil Corp and Chevron Corp, each said they would cut output by 400,000 barrels
per day this quarter.
The output cuts combined with the loosening of business restrictions in some U.S. states and cities
around the world were expected to ease the global fuel glut and pressure on storage tanks, helping
to drive prices up last week.
However, a threat by U.S. President Donald Trump late last week to consider raising tariffs on China
to retaliate for the spread of the coronavirus renewed fears that trade tensions could crimp an
economic recovery, putting a lid on oil price gains.
“The resumption of the trade war will be detrimental to oil prices over the long term,” said Stephen
Innes, chief global market strategist at financial services firm AxiCorp. U.S drillers cut 53 oil rigs in
the week to May 1, bringing the total count down to 325, the lowest since June 2016, energy services
firm Baker Hughes said on Friday.
Oil fell after a three-day rebound as a number of funds shifted away from near-term contracts,
fearing a repeat of the meltdown last month that saw prices plunge below zero. Futures fell 8%
toward $18 a barrel in New York as investors worried that a massive supply overhang while the
coronavirus shatters demand will send the market tumbling again.
Last week, crude rallied almost 50% in three days on early signs of improving consumption and the
start of output curbs from OPEC+ and other producers. While there are signals the plunge in
demand might have bottomed out in some markets, traders believe it’s likely to take more than a
year and perhaps longer to return to pre-coronavirus levels.
Even with fuel use recovering, the market will still need to digest the extra inventory dumped by the
Organization of Petroleum Exporting Countries last month. OPEC production surged by the most in
almost 30 years in April as members waged a price war, and kept supplies high even after reaching
a cease-fire in the middle of the month.
OPEC's Price War Surge
Production soared by the most in 30 years last month
Source: Bloomberg

“The market is having a bit of a reality check this morning,” said Ole Sloth Hansen, head of
commodities strategy at Saxo Bank A/S in Copenhagen. “The fundamental outlook has improved,
with supply cuts meeting a pick-up in demand. But given the risk that the global economic outlook
will continue to deteriorate, it is much too soon to begin speculating about a recovery.”
Brent for July settlement fell 2.6% to $25.75 a barrel on London’s ICE Futures Europe exchange
after advancing 23% last week. The price of Dated Brent, a reference for two-thirds of the world’s
physical crude, was $19.36 on Friday, according to traders monitoring prices from S&P Global
Platts.
Algerian Energy Minister Mohamed Arkab, who holds OPEC’s rotating presidency, called on
members of the cartel to implement more than 100% of their agreed output cuts under the deal that
took effect from May 1. There’s evidence production is also falling in countries which are not party
to the OPEC+ deal. In the U.S., the world’s largest producer, the oil rig count fell for a seventh
straight week.
U.S. drillers cut oil rigs for seventh week in a row: Baker Hughes
U.S. energy firms cut oil rigs for a seventh week in a row as major producers slam the brakes on
shale oil production at a time when crude prices and fuel demand have plunged due to global
lockdowns to fight the coronavirus pandemic.
Drillers cut 53 oil rigs in the week to May 1, bringing the total count down to 325, the lowest since
June 2016, energy services firm Baker Hughes Co said in its closely followed report on Friday.
The oil rig count, an early indicator of future output, is down 60% from the same week a year ago
when 807 oil rigs were active.

More than half of the total U.S. oil rigs are in the Permian basin in West Texas and eastern New
Mexico, where active units dropped by 27 this week to 219, the lowest since November 2016.
The total number of oil and gas rigs active in the United States was down 57 to 408 this week, just
above the all-time low of 404 rigs during the week ended May 20, 2016, according to Baker Hughes
data going back to 1940.
Analysts at Raymond James projected total U.S. oil and natural gas rigs would collapse from around
800 at the end of 2019 to a record low of around 400 by the middle of the year and around 200 at
the end of 2020. The investment bank forecast the rig count would average a mere 225 rigs in 2021.
Exxon Mobil Corp and Chevron Corp on Friday outlined deep cuts in output and investments in the
Permian shale basin, the top U.S. oilfield where growth in recent years made America the world’s
top oil producer and a net exporter for the first time in decades.
ConocoPhillips, the world’s largest independent oil and gas producer, plans to accelerate output
cuts by 40,000 barrels per day (bpd) in May and bring its reduction in North America by June to
460,000 bpd, the largest cut by any producer.
U.S. crude futures traded around $19 per barrel on Friday, on track to rise for the first time in four
weeks as the Organization of the Oil Exporting Countries (OPEC) and its allies embarked on record
output cuts to tackle a supply glut due to the coronavirus crisis. [O/R]
Looking ahead, U.S. crude was trading higher at around $25 a barrel for the balance of 2020 and
$32 for calendar 2021 on expectations demand will jump in coming months as the economy snaps
back after governments loosen travel and work restrictions once the spread of coronavirus slows.
That compares with an average of $57.04 in 2019.
U.S. financial services firm Cowen & Co said 34 of the independent exploration and production
(E&P) companies it tracks have cut their spending plans since the initial failed OPEC+ oil production
cut agreement between Russia and Saudi Arabia on March 6, implying a 42% year-over-year
decline in 2020 capex.
Before the failure of the OPEC+ agreement, Cowen said the independent E&Ps had expected to
cut spending by an average of 11% in 2020 from 2019 levels. In 2019, those companies cut
spending by around 10% from 2018 levels.

NewBase Special Coverage
The Energy world - Special 01- May-2020
Global energy demand to plunge this year as a result of the
biggest shock since the Second World War
IEA
The Covid-19 pandemic represents the biggest shock to the global energy system in more than
seven decades, with the drop in demand this year set to dwarf the impact of the 2008 financial crisis
and result in a record annual decline in carbon emissions of almost 8%.
A new report released today by the International Energy Agency provides an almost real-time view
of the Covid-19 pandemic’s extraordinary impact across all major fuels. Based on an analysis of
more than 100 days of real data so far this year, the IEA’s Global Energy Review includes estimates
for how energy consumption and carbon dioxide (CO2) emissions trends are likely to evolve over
the rest of 2020.
“This is a historic shock to the entire energy world. Amid today’s unparalleled health and economic
crises, the plunge in demand for nearly all major fuels is staggering, especially for coal, oil and gas.
Only renewables are holding up during the previously unheard-of slump in electricity use,” said Dr
Fatih Birol, the IEA Executive Director. “It is still too early to determine the longer-term impacts, but
the energy industry that emerges from this crisis will be significantly different from the one that came
before.”
The Global Energy Review’s projections of energy demand and energy-related emissions for 2020
are based on assumptions that the lockdowns implemented around the world in response to the
pandemic are progressively eased in most countries in the coming months, accompanied by a
gradual economic recovery.

The report projects that energy demand will fall 6% in 2020 – seven times the decline after the 2008
global financial crisis. In absolute terms, the decline is unprecedented – the equivalent of losing the
entire energy demand of India, the world’s third largest energy consumer.
Advanced economies are expected to see the biggest declines, with demand set to fall by 9% in the
United States and by 11% in the European Union. The impact of the crisis on energy demand is
heavily dependent on the duration and stringency of measures to curb the spread of the virus. For
instance, the IEA found that each month of worldwide lockdown at the levels seen in early April
reduces annual global energy demand by about 1.5%.
Changes to electricity use during lockdowns have resulted in significant declines in overall electricity
demand, with consumption levels and patterns on weekdays looking like those of a pre-crisis

Sunday. Full lockdowns have pushed down electricity demand by 20% or more, with lesser impacts
from partial lockdowns. Electricity demand is set to decline by 5% in 2020, the largest drop since
the Great Depression in the 1930s.
At the same time, lockdown measures are driving a major shift towards low-carbon sources of
electricity including wind, solar PV, hydropower and nuclear. After overtaking coal for the first time
ever in 2019, low-carbon sources are set to extend their lead this year to reach 40% of global
electricity generation – 6 percentage points ahead of coal. Electricity generation from wind and solar
PV continues to increase in 2020, lifted by new projects that were completed in 2019 and early
2020.
This trend is affecting demand for electricity from coal and natural gas, which are finding themselves
increasingly squeezed between low overall power demand and increasing output from renewables.
As a result, the combined share of gas and coal in the global power mix is set to drop by 3
percentage points in 2020 to a level not seen since 2001.
Coal is particularly hard hit, with global demand projected to fall by 8% in 2020, the largest decline
since the Second World War. Following its 2018 peak, coal-fired power generation is set to fall by
more than 10% this year.
After 10 years of uninterrupted growth, natural gas demand is on track to decline 5% in 2020. This
would be the largest recorded year-on-year drop in consumption since natural gas demand
developed at scale during the second half of the 20th century. The massive impact of the crisis on
oil demand has already been covered in detail in our April Oil Market Report.
Renewables are set to be the only energy source that will grow in 2020, with their share of global
electricity generation projected to jump thanks to their priority access to grids and low operating
costs. Despite supply chain disruptions that have paused or delayed deployment in several key

regions this year, solar PV and wind are on track to help lift renewable electricity generation by 5%
in 2020, aided by higher output from hydropower.
“This crisis has underlined the deep reliance of modern societies on reliable electricity supplies for
supporting healthcare systems, businesses and the basic amenities of daily life,” said Dr Birol. “But
nobody should take any of this for granted – greater investments and smarter policies are needed
to keep electricity supplies secure.”
Despite the resilience of renewables in electricity generation in 2020, their growth is set to be lower
than in previous years. Nuclear power, another major source of low-carbon electricity, is on track to
drop by 3% this year from the all-time high it reached in 2019. And renewables outside the power
sector are faring less well. Global demand for biofuels is set to fall substantially in 2020 as
restrictions on transport and travel reduce road transport fuel demand, including for blended fuels.
As a result of these trends – mainly the declines in coal and oil use – global energy-related CO2
emissions are set to fall by almost 8% in 2020, reaching their lowest level since 2010. This would
be the largest decrease in emissions ever recorded – nearly six times larger than the previous record
drop of 400 million tonnes in 2009 that resulted from the global financial crisis.
“Resulting from premature deaths and economic trauma around the world, the historic decline in
global emissions is absolutely nothing to cheer,” said Dr Birol. “And if the aftermath of the 2008
financial crisis is anything to go by, we are likely to soon see a sharp rebound in emissions as
economic conditions improve.
But governments can learn from that experience by putting clean energy technologies – renewables,
efficiency, batteries, hydrogen and carbon capture – at the heart of their plans for economic
recovery. Investing in those areas can create jobs, make economies more competitive and steer
the world towards a more resilient and cleaner energy future.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” 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
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 a total of 28 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 2020 K. Al Awadi

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