New base energy news 11 june 2020 issue no. 1346 senior editor eng. khaled al awadi

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NewBase Energy News 11 June 2020 - Issue No. 1346 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: Masdar to develop 500MW wind project in Uzbekistan
The National - Fareed Rahman
Abu Dhabi’s clean energy company Masdar signed a power purchase agreement with
the government of Uzbekistan to design, finance, build and operate a 500 megawatt,
utility-scale wind project.
The wind farm will be built in the in the Zarafshon district of the Navoi region and
commercial operations are targeted to start in 2024. Masdar did not disclose the total
investment in the project.
“The wind farm supports Uzbekistan’s long-term renewable energy ambitions and its
strong commitment to not only modernise its power sector, but also invest in energy
security,” Mohamed Jameel Al Ramahi, chief executive of Masdar said.
This is the second project for Masdar in the central Asian republic. In November last
year, it signed an agreement to develop the country’s first public-private partnership solar
power plant in the Navoi region with a total investment of $100 million (Dh367m). Masdar
www.linkedin.com/in/khaled-al-awadi-38b995b

submitted the lowest bid of 2.679 US cents per kilowatt hour in the programme’s
competitive auction to win the 100 megawatt capacity project.
“Masdar is our long-term trusted partner in expanding our renewable energy capacities
and bringing their well-known international expertise to the country,” said Uzbekistan’s
deputy prime minister Sardor Umurzakov.
Uzbekistan is aiming to
develop 5 gigawatts of
renewable energy by
2030. Masdar, fully
owned by Mubadala
Investment Company, is a
major player in the
renewable energy sector
across the globe.
The power generating
capacity of renewable
energy projects in which
Masdar is a partner
exceeds 5 gigawatts,
representing a combined
investment of
approximately $14.3
billion spanning more than 30 countries.
Earlier this year, Masdar signed a deal in neighbouring Azerbaijan to develop, build and
operate a 200 megawatt solar PV project located 75 kilometres southwest of Baku.
The company also agreed to develop its first venture in South-East Asia – a 145
megawatt floating solar photovoltaic plant for Indonesia’s state electricity company,
Perusahaan Listrik Negara.
Masdar is also aiming to expand its operations in Africa.
The company agreed to establish a joint venture with Egypt’s Infinity Energy to develop
renewable energy projects. The new firm, named Infinity Power, will develop utility-scale
solar and wind power projects for clean energy generation across Africa.
Renewable energy projects are gaining traction across the world as costs reduce due to
advancements in technology. Around half of renewable energy capacity added in 2019
was cheaper than the least expensive coal plants, according to the International
Renewable Energy Agency.
Solar photovoltaic energy saw the steepest declines in cost between 2010 and 2019,
declining 82 per cent, while concentrated solar power fell 47 per cent, according to Irena.
The cost of deploying wind projects also fell during this period, with onshore wind
declining 47 per cent, while offshore wind schemes were 29 per cent cheaper.

UAE: Molten salt receiver installed at MBR Solar Park Dubai
Gulf Times + NewBase
The Mohammed bin Rashid Al Maktoum Solar Park on Wednesday witnessed the installation of
the Molten Salt Receiver (MSR) on top of the world's tallest solar power tower at 262.44 metres.
Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy,
accompanied by Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority
(Dewa), witnessed the lifting and installation of the Molten Salt Receiver at the largest Concentrated
Solar Power (CSP) project in the world.
The CSP project is part of the fourth phase of the Mohammed bin Rashid Al Maktoum Solar Park.
The 950MW fourth phase is based on the Independent Power Producer (IPP) model with
investments totalling Dh15.78 billion.
Sheikh Ahmed bin Saeed Al Maktoum, accompanied by Al Tayer, checked the progress of
construction of the fourth phase.
Abdul Hamid Al Muhaidib, executive managing director of Noor Energy 1, briefed Sheikh Ahmed
bin Saeed Al Maktoum on the progress and installation of the MSR. Noor Energy 1 is owned by
Dewa, the Silk Road Fund, which is owned by the Chinese Government and ACWA Power from
Saudi Arabia.
"We congratulate His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and
Prime Minister of the UAE and Ruler of Dubai, on this historic achievement for Dubai: the installation
of the Molten Salt Receiver on the world's tallest solar power tower, which stands at 262.44 metres
tall and we seek to increase it, at the largest Concentrated Solar Power project in the world.
This is part of the 4th phase of the Mohammed bin Rashid Al Maktoum Solar Park, with investments
totalling Dh15.78 billion. This demonstrates the UAE's leadership in the use of clean and renewable
energy," said Al Tayer.

"We promise His Highness Sheikh Mohammed bin Rashid Al Maktoum that we will continue to build
clean and renewable energy projects, guided by his vision and directives to achieve the Dubai Clean
Energy Strategy 2050's objectives to provide 75 per cent of Dubai's total power output from clean
energy by 2050," he added.
Al Tayer thanked Sheikh Ahmed bin Saeed Al Maktoum for witnessing this major milestone, which
underlines the UAE's contribution to building the future of the world with environment-friendly
solutions for sustainable development.
Al Tayer stated that the smoothness and
continuity of construction work over the past
period for this strategic project, despite the
coronavirus pandemic. It has taken one and a
half years to complete 60 per cent of the CSP
tower and without injuries. The concrete part of
the solar power tower is now complete at a
height of 222 metres. The MSR was built and
assembled while the tower was being built.
"ACWA Power is proud to partner with Dewa
and Silk Road Fund and support all efforts to
make the Dubai Clean Energy Strategy 2050 a
reality. Today, we reached another significant
milestone in the world's largest CSP plant, Noor Energy 1.
We have completed the lifting of the Molten Salt Receiver in a record time, keeping the highest
standards of safety despite the impact of the COVID-19 pandemic and many other challenges. This
is yet another demonstration of ACWA Power's commitment in to the solar industry and the
endeavours made in the region to achieve a clean energy future," said Mohammad Abunayyan,
chairman of ACWA Power.
The MSR is the centre and the most important part of the CSP plant. It receives solar radiation and
turns it into thermal energy. Up to 50% of the overall project's first phase has been completed. This
includes the solar power tower, the parabolic basin complex, and the photovoltaic solar panels.
The fourth phase of the solar park combines CSP and photovoltaic technology and is rated for
950MW. It will use 700MW of CSP, 600MW from a parabolic basin complex, 100MW from the solar
power tower and 250MW from photovoltaic solar panels. On its completion, the project will have the
largest thermal storage capacity in the world of 15 hours, allowing for energy availability around the
clock.
The fourth phase will provide clean energy for 320,000 residences and will reduce 1.6 million tonnes
of carbon emissions a year. This project covers 44 square kilometres and has broken many world
records, including the lowest Levelised Cost of Electricity (LCOE) of USD 7.3 cents per kilowatt-
hour (kW/h) for the 700MW CSP and $2.4 cents per kW/h for the 250MW photovoltaic solar panels.
The Mohammed bin Rashid Al Maktoum Solar Park is the largest single-site solar park in the world
based on the IPP model, with a planned capacity of 5,000 MW by 2030 and investments of up to
Dh50 billion. The 13MW photovoltaic first phase of the solar park became operational in 2013.
The 200MW photovoltaic second phase was commissioned in March 2017. The photovoltaic third
phase has a capacity of 800MW. A Power Purchase Agreement was signed in March 2020 for the
900MW photovoltaic fifth phase based on the IPP model. It will become operational in stages
starting in the third quarter of 2021.

Oman: Award for solar-diesel hybrid power projects by Q3
Oman Observer - Conrad Prabhu
An award for the development of a portfolio of small-scale solar photovoltaic (PV) / diesel hybrid
projects in remote areas of the Sultanate will be finalised by the third quarter of this year, according
to the Rural Areas Electricity Company (Tanweer), which is overseeing the procurement of the
scheme via a competitive tender.
Tanweer, a wholly-owned
subsidiary of The Electricity
Holding Company (Nama
Group), is responsible to
electricity generation (and
water desalination),
transmission, supply and
distribution in areas that are
not connected to the
country’s main grids. These
areas encompass the
Governorates of
Musandam, Al Wusta, parts
of Al Dakhliyah and Al
Sharqiyah and most of
Dhofar.
As many as 14 international
groups and their local partners are competing for the contract to develop the hybrid power projects
in 11 different locations across Tanweer’s sprawling license. The selected bidder will implement all
11 small-scale ventures as one Independent Power Project (IPP) with Tanweer as the offtaker of
electricity output under a 15-year Power Purchase Agreement.
“The financial bidder selection and evaluation are expected by Quarter 3 of 2020 (subject to
approval of the Authority for Electricity Regulation (AER) Oman,” said Tanweer in its newly
published 2019 Annual Report.
Competing for the prestigious award are:
(1) EDF Renewables AS with Petroleum Development Oman and Alawi (2) Alfanar (3) Voltalia (4)
Fotowatio Renewable Ventures with Aggreko (5) Total Solar with Altaaqa (6) Scatec Solar (7)
Mainstream Renewable Power with Tesla and FG Wilson (8) Engie with Multitech (9) Mytilineos SA
(10) Jinko Solar (11) Bahwan Renewable Energy with Canadian Solar (12) Wartsila with MB Holding
and Arket International (13) Shell with Entertech, Enerwhere and HTC, and (14) NTPC Limited.
The successful developer will install a total of 37 megawatts-peak (MWp) of solar photovoltaic
capacity at the 11 sites, in addition to 28 MW of battery energy storage capacity. Selected sites
are:-
Madha (Musandam Governorate), Masrooq (Al Dhahirah), Al Khuwaimah and Masirah (Al
Sharqiyah South), Al Hitam and Al Khadrah (Wusta), and Mittan, Al Mazyunah and Farshat Qatbeet
(Dhofar).
The successful bidder will also be responsible for the financing, operation, maintenance and
despatch of the complete hybrid system. The construction timeline for all 11 sites is 24 months,
Tanweer added.

India: Adani Green Energy wins the world’s largest solar award
Source: Adani Green Energy
Adani Green Energy (AGEL) has won the first of its kind manufacturing linked solar agreement from
the Solar Energy Corporation of India (SECI). As a part of the award, AGEL will develop 8 GW of
solar projects along with a commitment that will see Adani Solar establish 2 GW of additional solar
cell and module manufacturing capacity.
This award, the largest of its type, ever, in the world, will entail a single investment of Rs. 45,000
crores (US $6 billion) and will create 400,000 direct and indirect jobs. It will also displace 900 million
tonnes of carbon dioxide over its lifetime.
Summary:
 AGEL wins the single largest solar development bid ever awarded, totaling 8 GW to be
delivered over a period of 60 months.
 The $6 billion investment announced is the single largest since the launch of the Atma
Nirbhar Bharat Abhiyan (Self Reliant India program) by Hon’ble PM Shri Modi
 The investment will lead to the creation of 400,000 direct and indirect jobs.
 The renewable energy generated will displace 900 million tonnes of CO2.
 AGEL now has 15 GW capacity under operation, construction or contract and moves closer
to achieving its 25 GW renewable power target by 2025.
With this win, AGEL will now have 15 GW capacity under operation, construction or under contract
thereby accelerating its journey towards becoming the world’s largest renewables company by
2025. This award will take the Company closer to its target of achieving an installed generation

capacity of 25 GW of renewable power by 2025 which in turn will see it committing an investment
of Rs. 112,000 crores ($15 billion) in the renewable energy space over the next 5 years.
This is the single biggest investment announced since the launch of the Hon’ble Prime Minister of
India, Shri Narendra Modi’s Atma Nirbhar Bharat Abhiyan (Self Reliant India Program). It is also
another significant step in India continuing to lead the world in battling climate change and furthering
the commitment the Hon’ble Prime Minister of India made to the world at the COP 21 summit in
Paris in 2015.
Commenting on the win, Mr. Gautam Adani, Chairman of the Adani Group said:
'We are honoured to be selected by SECI for this landmark solar award. In today’s world, climate
adaptation cannot be considered independent of economic development priorities and both, job
creation as well as decarbonization must be simultaneous objectives.
India made a commitment at the 2015 United Nations Climate Change Conference in Paris that it
would lead the Climate Change revolution and today is the leader among the just eight nations on
track to meet their COP21 commitments.
The fact that renewable power will transition into becoming the world’s cleanest and most
economical fuel is a foregone conclusion and the Adani Group intends to play a leading role in this
journey. This award is yet another step in our nation’s climate change promise to the world as well
as enabling our nation’s Atma Nirbhar Bharat Abhiyan (Self Reliant India Program). It is another
step towards fulfilling our Group’s Nation Building vision.'
Based on the award agreement the 8 GW of solar development projects will be implemented over
the next five years. The first 2 GW of generation capacity will come online by 2022 and the
subsequent 6 GW capacity will be added in 2 GW annual increments through 2025.
The projects will include a variety of locations, including a 2 GW single-site generation project that
is tied for the rank of the largest single-site project announced globally. The solar cell and module
manufacturing capacity of 2 GW will be established by 2022 and along with the existing 1.3 GW of
capacity will further consolidate the Group’s position as India’s largest solar manufacturing facility.
Adani Green Energy’s business model of focusing on long-term contracts with investment grade
counterparties, rapidly constructing large projects, and thereafter building solar development
partnerships with major global integrated energy players that seek to reduce their carbon footprint
has enabled it to expand rapidly since its public listing less than two years ago. This new contract
will further help strengthen this model.

Germany: RWE, Thyssenkrupp plan hydrogen production JV
Reuters + NewBase
Germany’s RWE plans to produce hydrogen from renewable energy to supply steelmaker
Thyssenkrupp, the two companies told Reuters. The alliance between two of Germany’s heaviest
polluters comes as Europe’s largest economy maps out a future without nuclear or coal power.
RWE is currently heavily reliant on coal but is able to enter the hydrogen business due to changes
to Germany’s laws as the government looks to boost hydrogen production.
The planned cooperation between the two sector leaders is aimed at using green hydrogen, where
the electricity used in the electrolysis that separates hydrogen from water comes from renewable
sources.
RWE plans to build a 100 megawatt hydrogen plant in the state of Lower Saxony to supply
Thyssenkrupp’s steel operations in Duisburg by the middle of the decade, the companies said,
responding to a Reuters request for comment.
Steelmaking accounts for 7-9% of global emissions and has long been considered an ideal use
case for hydrogen. The plant will be able to deliver 1.7 tonnes of hydrogen gas per hour, or about
70% of that required by a blast furnace which Thyssenkrupp plans to install, they said.
This could produce 50,000 tonnes of climate-neutral steel per year, enough needed to make as
many cars, they said.
Thyssenkrupp produces 11 million tonnes of steel a year but the partnership would mark a start and
reflects an industry-wide shift toward greener energy as rivals, including heavyweight ArcelorMittal,
start to explore the technology.
“Climate neutrality in the steel sector is possible and we’re accelerating the switch with regard to
our production,” said Bernhard Osburg, CEO of Thyssenkrupp Steel Europe.
Germany has committed 9 billion euros ($10.2 billion) to expand hydrogen capacity at home and
abroad as part of a national strategy to make the country a key supplier of the technology worldwide.

The companies said the partnership was dependent on the development of a hydrogen transport
network.
Roger Miesen, CEO of RWE’s Generation division, said the government’s strategy needed to be
implemented fast to ensure an effective hydrogen expansion. “Investment decisions require
planning certainty.”
Germany paints hydrogen energy future in green, grey, blue and turquoise
Germany’s cabinet passed a national hydrogen strategy on Wednesday as part of a wider push to
decarbonize Europe’s largest economy, government sources said. Sectors
such as steelmaking, heating, transportation and chemicals are beginning
to develop large-scale hydrogen applications to gradually replace fossil
fuels.
Germany ultimately aims to use renewable energy such as wind or solar
to power the electrolysis used to extract hydrogen from water. The
government has proposed boosting electrolysis capacity by 5,000
megawatts (MW) by 2030 and adding 10,000 MW by 2040.
Hydrogen falls into four categories denoted by color:
1. Green hydrogen
Derived from renewable sources which could include offshore wind operators developing floating
electrolysis plants.
Green hydrogen can be stored, piped, or carried by tankers to consumers, for example to serve
hydrogen filling stations.
Hydrogen can also be turned into synthetic methane with qualities identical to natural gas, but this
process is at an early stage.
Biomethane derived from fermented crops can also play a role.
2. Grey hydrogen
Using steam-methane reforming, currently the standard industry process, it involves extracting
hydrogen from fossil fuels such as coal or gas while releasing carbon monoxide and carbon dioxide.
3. Blue hydrogen
Blue hydrogen is grey hydrogen but separates the CO2 emissions for re-use or underground or
subsea storage. Seen as a transitional approach while demand cannot be met fully by green
hydrogen, some environmentalists oppose this option.
4. Turquoise hydrogen
Also called low-carbon hydrogen and so far very small scale, this is hydrogen generated from natural
gas but using pyrolysis where the gas is passed through molten metal, producing solid carbon as a
byproduct with useful applications.

NewBase June 11-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices SLIGHTLY drop on concerns about patchy demand
recovery, record U.S. stocks Reuters + NewBase
Oil prices fell more than 2% on Thursday on worries about slow demand growth with coronavirus
cases rising, U.S. crude stockpiles hitting an all-time high and the U.S. Federal Reserve projecting
recovery from the pandemic would take years.
U.S. West Texas Intermediate (WTI) crude futures erased gains from Wednesday, falling as low as
$38.42 a barrel. The benchmark contract was down 3.9%, or 154 cents, at $38.01 at 08.45 GMT.
Brent crude futures fell 3.26%, or 136 cents, to $40.37 / B, also giving up gains from Wednesday.
U.S. crude inventories rose unexpectedly by 5.7 million barrels in the week to June 5 to 538.1 million
barrels — a record — as imports were boosted by the arrival of supplies bought by refiners when
Oil price special
coverage

Saudi Arabia flooded the market in March and April, data from the Energy Information Administration
showed.
At the same time, gasoline stockpiles grew more than expected to 258.7 million barrels. Distillate
stockpiles, which include diesel and heating oil, rose by 1.6 million barrels, but the increase was
smaller than in previous weeks.
The market took a negative view on the stock build, even though there were signs of improving
gasoline demand in the data, too, said Commonwealth Bank commodities analyst Vivek Dhar.
Adding to the negative sentiment, the U.S. Federal Reserve said the world’s largest economy would
shrink 6.5% this year and the unemployment rate would be at 9.3% at the end of 2020 in its first
projections of the pandemic era.
“Short-term and fast money traders are very much inclined to sell outright or to take profits on any
hint of bearish data,” said Stephen Innes, chief global market strategist at Axicorp.
In a further sign that recovery will continued to be overshadowed by the coronavirus, total U.S.
cases topped 2 million on Wednesday, with new infections rising slightly after five weeks of declines,
according to a Reuters analysis.
U.S. crude stockpiles surge to record high on big Saudi imports: EIA
U.S. crude oil stockpiles rose unexpectedly last week to an all-time high as refiners boosted imports,
particularly from Saudi Arabia, while exports dropped to lows not seen since November.
The Energy Information Administration also said on Wednesday that refined product demand ticked
up, but still remained far below normal levels. Crude inventories rose 5.7 million barrels in the week
to June 5 to 538.1 million barrels, most in history, not including the U.S. strategic reserves, EIA data
showed.

Shipments booked during the Saudi-Russia price war from March and April, when the kingdom
ramped up exports sending U.S. prices to negative-$40 a barrel, have been arriving in the United
States. Refiners’ imports of Saudi barrels have averaged more than 1.5 million barrels per day (bpd)
for three consecutive weeks, which has not happened since 2013.
Crude inventories in the Gulf Coast import-export and refining hub jumped 6.9 million barrels to a
record 303.7 million barrels. U.S. exports fell to 2.4 million bpd, their lowest since November, so
overall net crude imports rose by 1 million bpd, the EIA said.
“These are bearish numbers really. Crude (stocks) rose again despite being stymied by subdued
demand. We are down significantly from a year ago today and saw builds in products as well,” said
Matt Smith, director of commodity research at Clipper Data.
Gasoline inventories rose 866,000 barrels, compared with analysts’ expectations for a 71,000-barrel
rise. Distillate stockpiles, which include diesel and heating oil, increased by 1.6 million barrels.
Product supplied, a proxy for demand, showed gasoline consumption rebounded to 7.9 million bpd,
still roughly 20% below the year-ago period, but an improvement from recent weeks. Overall
gasoline demand is down 16% from a year ago.
Refinery utilization rates rose by 1.3 percentage points to 73.1% of capacity. The market was lower
after the data. U.S. crude futures fell 2% to $38.18 a barrel, while Brent was down 1.4% to $40.60
a barrel.

NewBase Special Coverage
The Energy world - Special 01- June -2020
The pandemic and a mild winter have delivered a historic shock
to the global natural gas market
The combination of the Covid-19 crisis and an exceptionally mild winter in the northern hemisphere
have put global demand for natural gas on course for its largest annual decline in history, the
International Energy Agency said today in a new report. Global gas demand is expected to fall by
4%, or 150 billion cubic metres (bcm) – twice the size of the drop following the 2008 global financial
crisis.
As of early June, all major gas markets worldwide are experiencing falls in demand or slumps in
growth, according to the IEA’s latest annual market report Gas 2020. For the full year, more mature
markets across Europe, North America and Asia are forecast to see the biggest drops, accounting
for 75% of the total decline in gas demand in 2020.
Global oversupply is pushing major natural gas indices to record lows, while the oil and gas industry
is cutting spending and postponing investment decisions to make up for the significant shortfall in
revenue. Although a rebound is expected in 2021, the IEA report does not assume a rapid return to
the pre-crisis trajectory.
After 2021, most of the increase in demand takes place in emerging Asia, led by China and India
where gas benefits from strong policy support. In both countries, the industrial sector is the main
Global gas demand is expected to fall by 4%, or 150 billion cubic metres (bcm), to 3,850
bcm this year .The IEA forecasts 75 bcm of lost annual demand by 2025 - the same
amount as the increase in global demand in 2019.

source of demand growth, making it highly dependent on the pace of the recovery in domestic and
export markets for industrial goods. Repercussions from the Covid-19 crisis are set to result in 75
bcm of lost annual demand by 2025, which is the same amount as the increase in global demand
in 2019.
The main drivers of future supply growth – US shale and large conventional projects in the Middle
East and Russia – are also under pressure from the current oil price collapse and uncertainty
surrounding demand trends over the short and medium term.
Liquefied natural gas (LNG) is set to remain the main driver of the international gas trade. The wave
of investment in LNG projects during 2018 and 2019 will bring additional export capacity in North
America, Africa and Russia. Slower growth in global gas demand in the coming years is likely to
result in capacity outpacing LNG imports through 2025, limiting the risk of a tight LNG market for
the time being.

New production and infrastructure projects are likely to come online amid growth trends that are
markedly below earlier expectations, reinforcing the prospect of overcapacity and low prices. This
casts a shadow over future investments, which will be needed in the long term to ensure the renewal
of production sources and global security of supply.
2021-2025: Rebound and beyond
Demand - After a 4% drop in 2020, natural gas demand is expected to progressively recover in
2021 as consumption returns close to its pre-crisis level in mature markets, while emerging markets
benefit from economic rebound and lower natural gas prices.
The impact of the 2020 crisis is, however, expected to have repercussions on the medium-term
growth potential, resulting in about 75 bcm of lost growth over the forecast period, 2019 to 2025.
This forecast expects an average growth rate of 1.5% per year during this period.
The Asia Pacific region accounts for over half of incremental global gas consumption in the coming
years, driven principally by the development of gas in China and India. While the prospects of natural
gas remain strong for these two markets, the outlook is highly dependent on China’s and India’s
future policy direction and recovery path in the post-crisis environment.
In spite of the current economic headwinds and uncertainty, natural gas still benefits from strong
policy support in both countries, with ongoing reforms to increase the role of gas in the energy mix.
Future growth in the industry sector, which constitutes the main driver of incremental gas demand

in both countries, will however highly depend on the pace of economic recovery, both for domestic
and export markets for industrial goods.
Supply – If almost all regions are expected to contribute to the growth in natural gas production in
the next five years, half of the net increase in supply comes from North America and the Middle
East. The US shale industry, the main driver of global gas output growth over the recent years, is
particularly vulnerable in the current crisis context – the IEA report World Energy Investment
2020 estimates that upstream spending on shale tight oil and gas is set to decline by 50% y-o-y in
2020.

The sector’s ability to rebound in a post-crisis environment will be pivotal to deliver the incremental
gas production needed by the US market to replace its declining conventional production and supply
its additional LNG export capacity under development.
Production growth in the Middle East is driven by the ramping up of large conventional projects in
Saudi Arabia, Iran, Israel, Iraq and Qatar – for which the oil price collapse and uncertainty represent
a substantial downside risk in the first years of the forecast.
Gas production in Russia, the other large contributor to incremental supply, is almost entirely driven
by export-oriented projects; while most of the additional production is expected for the second half
of the forecast, shorter-term uncertainty on demand growth could negatively impact its development
schedule.
Trade – LNG remains the main driver of international gas trade, as the 2018-19 wave of investment
in liquefaction projects delivers additional export capacity in North America, Africa and Russia.
However slower growth in gas demand post-2020 results in liquefaction capacity additions
outpacing incremental LNG import through 2025, thus limiting the risk of a tight LNG market over
the forecast period.
China, India and emerging Asian markets account for most of the growth in future LNG imports,
while Europe should return to its pre-2019 levels after reaching record levels as a balancing market.
Additional pipeline trade comes principally from the progressive ramp-up of export infrastructure
from Eurasia (TANAP and TAP to Europe, and Power of Siberia to China).

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
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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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