New base energy news 08 august 2020 - issue no. 1361, senior editor eng. khaled al awadi

Copyright © 2020 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 endeavors 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 Energy News 08 August 2020 - Issue No. 1361 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: ADNOC L&S and Wanhua Chemical Group form strategic
shipping joint venture
Source: ADNOC
ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics subsidiary of
the Abu Dhabi National Oil Company (ADNOC), announced today the formation of a new strategic
joint venture (JV) with Wanhua Chemical Group. The new company named AW Shipping is
incorporated in Abu Dhabi Global Market (ADGM) in the United Arab Emirates (UAE).
This strategic JV agreement further strengthens the collaboration between ADNOC and Chinese
companies and builds on the deep-rooted bilateral relations between China and the UAE. The JV
underscores ADNOC’s focus on value-creating deals and will support the delivery of its 2030 smart
growth strategy.
www.linkedin.com/in/khaled-al-awadi-38b995b

AW Shipping will own and operate a fleet of very large gas carriers (VLGCs) and modern product
tankers. The company will be responsible for transporting LPG cargoes and other petroleum
products, sourced from the ADNOC Group and global suppliers, to Wanhua Group’s manufacturing
bases in China and around the world. To deliver maximum fleet efficiency, the company may also
pursue other market opportunities.
H.E. Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC
Group CEO, said:
'We are very pleased to establish this strategic joint venture with Wanhua Chemical Group. This
creative win-win partnership strengthens our growing relationship and will deliver greater value and
efficiency for both our organizations. Importantly, the JV further solidifies ADNOC L&S’ position as
the largest, fully integrated logistics and shipping company in the UAE and paves the way for the
transportation of greater LPG volumes to China, in line with market demand.
'The establishment of AW Shipping supports ADNOC’s smart growth and value creation strategy
and is another example of how ADNOC is stretching the margin from every molecule that we
produce, refine, ship and sell, while also forging stronger partnerships in key growth markets.'
The formation of AW Shipping follows a 10-year liquefied petroleum gas (LPG) supply contract
signed between ADNOC and Wanhua in November 2018.
ADNOC L&S is a crucial enabler in the ADNOC value chain, delivering oil, gas, and petroleum
products to customers across the world. It owns and operates the UAE’s largest shipping fleet,
which it expects to grow further in the coming years as ADNOC increases its upstream and
downstream production capacity, and enters into trading.
Mr. Liao Zengtai, Chairman of Wanhua Chemical Group, said:
'We are very glad that joint venture has been established with the concerted efforts of both parties.
The new company will strengthen the strategic cooperation between ADNOC and Wanhua and will
also ensure the stable supply of LPG cargoes and other petroleum products for Wanhua system.
More importantly, the cooperation will make contribution to the 'One Belt, One Road' project.'

ADNOC L&S was formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and
ESNAAD.
The integration created synergies between shipping, marine services, offshore logistics, and
onshore logistics to create the largest integrated shipping and maritime logistics company in the
GCC. ADNOC L&S provides safe, reliable and cost-competitive maritime and logistic solutions to
ADNOC Group companies and to more than 100 global customers.
The company creates value for its customers and partners through four major activities; firstly,
shipping activities, either with its own vessels or via chartering, which includes crude and refined
products, dry bulk, and LNG transport. Secondly, marine service activities which comprise
petroleum port operations, diving, and oil spill response.
Thirdly, offshore logistics activities that include offshore support vessels and an integrated logistics
base in Mussafah, Abu Dhabi, one of the largest in the region. Finally, onshore activities which
consist of a marine passenger terminal and a container terminal.
Last year, ADNOC L&S transported over 20 million metric tonnes of various oil & gas products and
dry bulk commodities.
Wanhua Group is one of the world's leading producers for methylene diphenyl diisocyanate (MDI)
a key ingredient in the manufacture of high-performance adhesives and synthetic fibers, which go
into a wide range of industries.

Oman:Solar, wind energy are best alternatives to fossil fuel
Oman Observer - Jomar Mendoza
A study conducted by researchers of the Department of Geography, College of Arts and Social
Sciences at Sultan Qaboos University (SQU) has found that both solar radiation and wind are
promising and substantial renewable energy alternatives to fossil fuel resources in Oman.
The study entitled, ‘Exploring the potential of solar, tidal, and wind energy resources in Oman using
an integrated climatic-socioeconomic approach’, was published recently by ScienceDirect, a leading
platform of peer-reviewed literature and a website which provides subscription-based access to a
large database of scientific and medical research.
According to the authors, , Mohamed Hereher and Ahmed M el Kenawy, the study presents for the
first time, a comprehensive assessment of the potential renewable energy resources in Oman, with
a particular focus on solar, wind and tidal energy resources.
The study adopts a novel approach to assess the potential of these energy resources, in which
information from multiple climatic indicators is coupled with socioeconomic drivers of energy
development. Specifically, based on a daily dataset of the National Centers for Environmental
Prediction (NCEP) Climate Forecast System Reanalysis (CFSR), three climate indicators were
employed to characterize the frequency, intensity, and duration of solar radiation and wind speed.
The authors introduced a new overall assessment index (OAI) based on these three climatic
indicators to explore the best localities – from a climatic perspective-for generating solar and wind
energies. The validity of the recommended sites was discussed in the context of important
physiographic, environmental, and socioeconomic constraints (e.g. population density, urban
settlements, distance to water bodies, transportation network, and so on).
The results demonstrate that both solar radiation and wind can be seen as promising and substantial
alternative sources of fossil fuel resources in Oman, with almost 3.2 per cent and 4.4 per cent of
the Omani territory being valid for sustainable use of wind and solar radiation, respectively, the
authors stated.
The most recommended sites for wind generation are located mainly along Al-Jazir and Duqm
coasts of southeastern Oman, where a promising wind energy center can be constructed. The best
localities for the development of hybrid solar radiation generation centres are likely to be placed in
Suhar and Thamrait, where solar intensity approaches 8.1 kWh/m2, with a high frequency of
occurrence throughout the year.

Last year, the Oman Power and Water and Procurement Company (OPWP) — the country’s sole
buyer of electricity — unveiled its renewable energy development plan which envisions the
procurement of 3,050 megawatts (MW) of renewables-based capacity by 2025.
The first 500 MW of this capacity will come into operation in 2021 when the Ibri II Solar Independent
Power Project (IPP) is completed. By 2023, an extra 1,000 MW will be added to the portfolio when
Manah Solar 1 and Manah Solar II are brought into operation. OPWP’s plan also envisions private-
driven investments in wind-based projects
The study provides a solid base for national and local decisionmakers in Oman for a reliable
assessment, monitoring, and sustainable exploitation of clean and renewable energy resources,
especially with high population growth, accelerated urbanization, and rapid economic growth over
the past few decades, which can pose more challenges to future energy demand in this country,
the authors added.
Global electricity generation mix to 2040.

OPEC Middle East Oil Flows Edge Higher on Easing of Output Cuts
By Julian Lee
Oil exports from OPEC’s Middle East producers rose in July after Saudi Arabia and key Arabian
Gulf allies reversed the voluntary production cuts they had made the previous month. The figures
excludes Iran.
Kuwait and the United Arab Emirates led the gain in last month’s oil supplies to international
markets, with Saudi Arabia increasing less quickly and Iraq barely changed. Saudi producers
boosted shipments by 190,000 barrels a day, far less than its increase in production, possibly
signaling domestic crude use has soared with summer temperatures.
The four nations boosted crude and condensate shipments last month by 758,000 barrels a day, or
6%, to a combined 13.68 million barrels a day, tanker-tracking data compiled by Bloomberg show.
The increase reversed the previous month’s drop, as the region’s producers restored more than 1
million barrels a day of production that they removed from the market in June.
Flows from the four producers -- which account for about 72% of production among members of the
Organization of Petroleum Exporting Countries -- rose to India and China. Shipments to South Korea
slumped, possibly due to refiners opting for supply from the U.S. Gulf Coast.
Exports from Kuwait jumped in July, rising by 294,000 barrels a day, or 18%. Last month’s flows
included a first shipment of crude from the Mina Saud terminal since the restart of the Wafra field in
the Neutral Zone shared with Saudi Arabia. Production from the field halted in 2015 due to a dispute
between the two countries.
Shipments from the U.A.E., which include condensates that are outside the scope of the OPEC+
deal, rose by 263,000 barrels a day, or 10%, in July. Shipments from Iraq, which has come under
pressure from Saudi Arabia after failing to meet its target in May and June, slid by just 11,000 barrels
a day.
Observed flows from Iran have been excluded, as tankers often disappear from tracking for weeks.
In July, signals from eight tankers carrying an estimated 11 million barrels of Iranian crude or

condensate appeared. The time and position at which the ships appeared suggest that two of them
departed in June, with the other six leaving in July.
With nearly 16 million barrels of oil on ships from OPEC’s Middle East exporters yet to signal a final
destination, estimates of flows to individual countries are subject to revision.
Flows to South Korea fell sharply in July, dropping by almost 550,000 barrels a day, or 27%, from
the previous month. Shipments of Arabian Gulf crude to South Korea had been remarkably resilient,
even increasing in the depth of the Asian Covid-19 outbreak between March and May.
The slump in July loadings bound for to South Korea could be linked to an earlier surge in purchases
of of U.S. crude for August arrival. According to tanker-tracking data monitored by Bloomberg, 7.8
million barrels of crude from the U.S. Gulf coast are due to arrive at South Korean ports in August,
up from 4.6 million barrels in June and none in July.
Aggregate Arabian Gulf crude flows to India, the closest major market, continued to recover in July,
although they remained
almost 480,000 barrels a
day, or more than 18%,
below their average level in
the twelve months to April
2020. Shipments increased
month-on-month by
139,000 barrels a day, or
7%. The biggest increases
in shipments, in both
volume and percentage
terms, came from Kuwait,
up by 91,000 barrels a day,
or 59%, and the UAE, whose shipments to India rose by 86,000 barrels a day, or 30%.

Flows to the U.S. continued to fall, with shipments from Saudi Arabia dropping to 226,000 barrels a
day in July, their lowest on record, from a revised 350,000 barrels a day in June. The volume of
crude leaving OPEC’s biggest exporter for American ports was less than a fifth of the amount
shipped in April, when the kingdom embarked on its short-lived production surge. Those April-
loading cargoes have now been offloaded at terminals on the Gulf and West Coasts of the U.S. and
imports of Saudi crude have slumped as a result.
Observed shipments from Arabian Gulf OPEC countries, excluding Iran, to China edged higher in
July and remain in line with levels seen between September and February. Much of the surge in
Arabian Gulf

exports to China during April and May, which averaged 5 million barrels a day, appears to have
ended up in storage tanks and ships idling off Chinese ports. Tankers full of Kurdish crude from
northern Iraq that were still anchored off Chinese ports at the end of July are beginning to discharge
their cargoes after being at anchor for between 42 and 60 days.
Crude and condensate flows to Japan rebounded by 20% in July from the prior month, with Iraq
making its first shipment to the Asian nation since March. Still, flows were almost 720,000 barrels a
day, or 32%, below pre-virus levels. The nation’s refinery runs in the third quarter will probably
remain unchanged from the previous three-month period, according to the head of the Petroleum
Association of Japan.

NewBase August 08-2020 Khaled Al Awadi
Oil below $45/bbl on demand concerns but posts weekly rise
Reuters + NewBase
Oil prices fell nearly 2% on Friday, limiting their weekly gain due to concerns the global recovery
could falter from a resurgence of coronavirus cases.
The rise in infections remains the dominant issue for the fuel demand outlook. Cases in the United
States are still rising in a number of states, while India recently reported a record daily jump in
infections. More than 700,000 people have died in the worldwide pandemic.
Brent crude LCOc1 fell 69 cents, or 1.5%, to settle at $44.40 a barrel. U.S. West Texas Intermediate
(WTI) crude CLc1 fell 73 cents, or 1.7%, to end at $41.22 a barrel.
Brent rose 2.5% for the week, while WTI gained 2.4%.
Oil price special
coverage

Talks between U.S. lawmakers over another round of stimulus have stalled, meanwhile. U.S.
President Donald Trump has threatened to pull White House representatives out of talks and instead
issue executive orders to address economic needs.
“The U.S. Congress can’t seem to come up with a plan for the next round of stimulus and it’s
creating doubt for U.S. economic recovery,” said Gary Cunningham, director of market research at
Tradition Energy.
OPEC member Iraq pledged to cut output further in August, which helped support prices. The nation
has been a laggard in fully meeting its pledge as part of an April deal to reduce supply.
Crude has recovered from lows reached in April, when Brent slipped below $16, a 21-year low.
“Keeping the price levels would be unrealistic,” Bjornar Tonhaugen of Rystad Energy said of this
week’s rise. “Traders rushed to the task today to correct the gains, remembering the invisible enemy,
COVID-19.”
U.S. non-farm payrolls for July came in slightly better than expected, but still showed employment
growth slowed. U.S. Democratic leaders said the jobs report showed more investments were
needed.
U.S. energy companies cut the number of oil and natural gas rigs this week to a record low for a
14th week. U.S. oil rigs fell by four to 176 this week, their lowest since July 2005, according to data
from energy services firm Baker Hughes Co (BKR.N).
Money managers raised their net long U.S. crude futures and options positions in the week to Aug.
4 by 8,096 contracts to 368,643, the U.S. Commodity Futures Trading Commission (CFTC) said.

The Collapse in Global Oil and Gas Drilling Deepened in July
The number of rigs drilling for oil and gas set a fresh record low in July, as activity continues to
collapse outside of North America.
The Baker Hughes worldwide rig count dropped by 43 to 1,030 in monthly data, with regions
beyond the U.S. and Canada accounting for almost 90% of the drop. The international rig count fell
to 743 in July, meaning the number of active rigs outside of North America was at its lowest since
2003.
Drilling collapsed after crude prices plunged earlier in the year due to the pandemic. Though weekly
data suggest activity in the U.S. may have bottomed out in recent weeks, the decline outside of
North America appears to have continued.
The biggest drop in July was in the Middle East. This month many producers in the region have
been adding supply back to the market, due to an agreed easing of OPEC+ production curbs.

NewBase Special Coverage
The Energy world - Special 081- August -2020
COVID-19’s impact on commercial all fuels (Jet, Gasoline & Diesel)
demand has been significant and uneven
U.S. EIA, International Civil Aviation Organization, and aircraft manufacturers
Efforts to contain the 2019 novel coronavirus disease (COVID-19) have dramatically changed global
commercial passenger flight volumes. These flights averaged a little more than 70,000 flights per
day in January and February, fell to an average of less than 25,000 flights per day in April, and then
started to increase again in May.
Commercial jet fuel consumption showed a similar pattern, falling from an average of 4.3 million
barrels per day (b/d) in January and February to 1.0 million b/d in April.
To estimate global changes in jet fuel consumption, the U.S. Energy Information Administration
(EIA) recently began using data from aviation company Cirium that detail each scheduled
commercial passenger flight, including the type of aircraft flown and its route, since January 2019.
Using data on each flight’s origin and destination, EIA estimated the volume of jet fuel consumed
by each flight and summed these flights to estimate the total volume of jet fuel consumed globally
by commercial passenger flights.
EIA estimates that consumption of jet fuel by commercial passenger flights averaged 1.6 million b/d
during the first two weeks of July, 69% less than the level one year ago. The largest decline in global
demand for jet fuel occurred during March and April, coinciding with the initial, intensified efforts to
mitigate the spread of COVID-19.
Globally, consumption of jet fuel by commercial passenger flights declined by 0.7 million b/d
between February and March and by 2.4 million b/d between March and April, although demand

grew by only 0.1 million b/d in May and 0.3 million b/d in June. Similar trends are also occurring at
the region and country levels.
Source: U.S. Energy Information Administration, Cirium, EUROCONTROL
Although the timing of a market’s initial decline and low point varies (largely reflecting the timing of
the spread of COVID-19), jet fuel demand in nearly every major market has increased from the lows
of April and May. The extent of this recovery has not been equal, however.
Although average June 2020 consumption of jet fuel by commercial flights in China (including Macau
and Hong Kong) was down 43% relative to the same time last year, consumption was down
significantly more in other parts of the world:
 70% in the countries of the former Soviet Union
 75% in the United States
 77% in the Middle East and North Africa
 80% in the rest of the Asia-Pacific region
 85% in the rest of Africa
 87% in Europe
 88% in the rest of the Americas
The share of air travel that occurs within a country’s borders is one key driver of declines in demand
for jet fuel.
Because of the less severe restrictions on domestic travel, the shorter distances typically involved,
and the larger share of domestic air travel for business or non-recreational purposes, interior
airports that cater primarily to domestic air travel have generally recovered faster than their typically
coastal, more internationally oriented peers.

Evidence of this recovery is in the relative resurgence of jet fuel consumption by domestic flights.
Despite constituting 30% of all jet fuel consumed globally by commercial passenger flights in June
2019, as of June 2020, the domestic flight share had grown to 56%. This trend has been particularly
true in China, where the share of jet fuel consumed by domestic flights rose from 53% to 83% during
the same period.
Source: U.S. Energy Information Administration, Cirium, EUROCONTROL, Mapbox, OpenStreetMap
EIA’s methodology for estimating the volume of jet fuel consumed by commercial passenger flights
is not without its limitations. Importantly, the estimate does not measure total jet fuel consumption
because it excludes consumption by military aircraft, non-passenger cargo flights, and general
aviation.
Gasoline and diesel refining margins that diverged in March have moved closer together
U.S. gasoline and diesel crack spreads diverged sharply in March and April as a result of the
mitigation efforts aimed at slowing the spread of the 2019 novel coronavirus disease (COVID-19),
but they have moved closer since May.
Crack spreads are the difference between the price of crude oil and the wholesale price of a refined
petroleum product, and they are used by industry to estimate refining margins.
As COVID-19 mitigation efforts and travel restrictions were put in place, gasoline demand (as
measured by product supplied) fell from 9.7 million barrels per day (b/d) in the week ending March
20 to a record low of 5.1 million b/d in the week ending April 3.
This record low demand caused gasoline prices to fall lower than oil prices, making gasoline crack
spreads go negative. At the time, the gasoline crack spread fell to a low of -8 cents per gallon, the
lowest since January 2019.

In contrast to gasoline demand, distillate demand in the United States in March and April did not
decrease as sharply. The consistent demand for diesel contributed to an increase of diesel refining
margins because the price of crude oil dropped faster than the price of diesel, allowing refiners to
potentially refine low cost crude oil into a higher cost diesel.
In April, U.S. refiners curtailed runs and shifted yields to increase distillate production and decrease
gasoline production in response to the changing demands of each product. Inputs of crude oil to
refineries fell steeply beginning in late March, reaching a low of 12.8 million b/d the week ending
April 17, the lowest level since 2008.
Since its low points in late April and early May, U.S. gasoline demand has been generally increasing,
and distillate demand has varied. The increased gasoline demand led gasoline crack spreads to
rise higher than distillate crack spreads in late April and supported higher refinery runs overall. Gross
inputs into refineries have been generally increasing since the week ending May 8, and refiners
have shifted back to producing more gasoline to meet the increasing gasoline demand.

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

For Your Recruitments needs and Top Talents, please seek our approved agents below

New base energy news 08 august 2020 - issue no. 1361, senior editor eng. khaled al awadi

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to New base energy news 08 august 2020 - issue no. 1361, senior editor eng. khaled al awadi

Similar to New base energy news 08 august 2020 - issue no. 1361, senior editor eng. khaled al awadi (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base energy news 08 august 2020 - issue no. 1361, senior editor eng. khaled al awadi