New base energy news 12 june 2019 issue no 1251 by khaled al awadi

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NewBase Energy News 12 June 2019 - Issue No. 1251 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: Dubai invites bids for floating solar farm, in Arabian Gulf
Gulf News + NewBase
Solar panels might soon float on a section of the Arabian Gulf to produce clean energy for Dubai to
add to the emirate’s energy mix as Dubai has floated the tender to get experts to study, develop
and construct a floating solar farm.
The Dubai Electricity and Water Authority (Dewa) on Sunday issued a request for proposal (RFP)
for appointing consultants to study, develop and construct floating solar photovoltaic plants in the
Arabian Gulf.
The new and innovative initiative supports the objectives of the Dubai Clean Energy Strategy 2050
(DCES 2050) to diversify the energy mix in Dubai, to make the emirate a global hub for clean energy
and green economy, and provide 75 per cent of Dubai’s total power output from clean energy by
2050.
Floating solar farms are currently the latest trend in the solar industry. The first such kind was built
in 2007 in Aichi, Japan followed by some small-scale projects in France, Italy, South Korea, Spain
and the US, according to the World Bank’s Floating Solar Market Report ‘Where Sun Meets Water’.
Other countries have since adapted the technology with China being the largest player and other
countries such as Australia, Brazil, Canada, India, Indonesia, Israel, Italy, Malaysia, Maldives, the
Netherlands, Norway, among others.
Floating solar farms are the best option for countries where availability of space is a consideration.
These farms can be built on dams, lakes, and water reservoirs. The solar panels are built on stable
floating system that has mooring device to adjust to adapt to changing water levels.

In Dewa’s tender, the consultancy services include a feasibility study, the technical requirements
for a floating solar photovoltaic plant, an environmental impact assessment report, a study of the
marine requirements, and other necessary studies on setting up electrical transmission, a safety
plan, and a seawater feasibility studies, including tidal and system specifications, and system
performance.
“At Dewa, we launch innovative initiatives and solutions in line with our vision to provide an
innovative and sustainable world for generations to come. Floating photovoltaic systems are one of
the most prominent emerging technologies that rely on installing solar photovoltaic systems directly
above water,” said Saeed Mohammad Al Tayer, managing director and CEO of Dewa.
Achieving the objectives of the Dubai Clean Energy Strategy 2050 will require a production capacity
of 42,000 megawatts (MW) of clean and renewable energy by 2050.
Dubai is already home to the Mohammad Bin Rashid Al Maktoum Solar Park, the largest single-site
solar park in the world based on the Independent Power Project model, with a planned capacity of
5,000MW by 2030 at a total investment of Dh50 billion.

U.K: Total starts up production of North Sea’s Culzean field
Reuters + NewBase
French energy group Total said it had started up production of the Culzean field in the North Sea,
adding that the project had been delivered ahead of schedule and under budget. Culzean will
account for around 5 per cent of Britain’s gas consumption, bringing to 18 per cent the proportion
of the country’s gas demand supplied by Total. Total has a 49.99 per cent stake in Culzean, while
BP has 32 per cent and JX Nippon has 18 per cent.
“The Culzean project is delivered ahead of schedule and more than 10 per cent below the initial
budget, which represents capex savings of more than $500 million. This has been achieved thanks
to the excellent performance of the project teams in charge of the construction and drilling
operations,” said Arnaud Breuillac, President of Exploration & Production at Total.
“For the French major, production from Culzean will play a big part in it being the biggest UK gas
producer for the foreseeable future,” said Wood Mackenzie research associate Glenn Morrall.

India: Reliance & BP work on 3rd gas project in Bay of Bengal
Reuters + NewBase
India’s Reliance Industries Ltd and partner BP said on Tuesday they would start developing a third
gas field off India’s east coast. The Reliance and BP consortium, in which BP has a 30% stake,
are already developing two gas blocks off India’s east coast.
The three projects, developing 3 trillion cubic feet (tcf) of discovered gas, would cost 350 billion
rupees ($5 billion) to develop and could produce about 30 million standard cubic meters of gas per
day (mscmd) phased over 2020-2022, Reliance said.
At peak production, the
three fields together
could meet up to 10% of
India’s demand by
2022, analysts say.
Prime Minister
Narendra Modi
previously set a target to
raise the share of gas in
India’s energy mix to
15% by 2030 from
below 6.5% now.
Experts say the slow
pace of development so
far makes that target
difficult to achieve.
“The gas will satiate the
increasing demand for
clean fuel in the country,
save foreign exchange
and reduce dependency
on imported gas,” Reliance Chairman Mukesh Ambani said.
Reliance was the first company in India to start large-scale gas production from the Krishna-
Godavari basin, also known as the KG Basin, in the Bay of Bengal, beginning in 2008-2009.
But output from its first project fell sharply within three years, starving gas-fired power plants of fuel
and leaving them unable to service their bank loans taken out in 2007-2008. The latest projects will
mark Reliance’s return to exploration and production.
“We are building an important upstream business in India, helping to supply the country’s growing
gas market,” BP Group Chief Executive Bob Dudley said in the statement.
India’s biggest oil and gas explorer, Oil and Natural Gas Corporation Ltd, is also developing reserves
off India’s east coast. At peak production, also expected to be around 2022-2023, the company will
produce 15 mscmd of gas.
Experts say India could produce up to 50 mscmd of gas, or almost one-third of India’s total gas
demand, from the east coast.

Australia: First LNG Cargo shipped from Prelude FLNG
Source: Shell
Shell, along with its Joint Venture Partners INPEX, KOGAS and OPIC, has announced that the first
shipment of Liquefied Natural Gas has sailed from Shell’s Prelude Floating Liquefied Natural Gas
(FLNG) facilitylocated 475kms North East of Broome in Western Australia. This shipment will be
delivered by the Valencia Knutsen to customers in Asia.
Maarten Wetselaar, Integrated Gas and New Energies Director said: 'Today’s first shipment of LNG
departed from Prelude FLNG, safely. Everyone involved should be very proud of the work taken to
reach this important milestone.
'Prelude forms an integral part of our global portfolio and plays an important role in meeting the
growing demand for more and cleaner energy for our customers around the world.'
Zoe Yujnovich, Chairman Shell Australia said: 'Prelude FLNG combines human endeavour and
ingenuity from across the globe and here in Australia. We are proud to work with our local
communities, suppliers and partners to ensure its safe, reliable operations into the future.'
About Prelude:
The Shell-operated Prelude FLNG facility is an offshore development that will produce natural gas
from a remote field approx. 475km north-north east of Broome in Western Australia.
The Prelude FLNG facility will produce 3.6 million tonnes per annum (mtpa) of LNG, 1.3 mtpa of
condensate and 0.4 mtpa of LPG. The Prelude FLNG facility is operated by Shell in joint venture
with INPEX (17.5%), KOGAS (10%) and OPIC (5%).

U.S: Sempra Energy Export first LNG cargo from Cameron facility
Source: U.S. Energy Information Administration, U.S. liquefaction capacity database
On May 31, 2019, Sempra Energy, the majority owner of the Cameron liquefied natural gas (LNG)
export facility, announced that the company had shipped its first cargo of LNG, becoming the fourth
such facility in the United States to enter service since 2016. Upon completion of Phase 1 of the
Cameron LNG project, U.S. baseload operational LNG-export capacity increased to about 4.8 billion
cubic feet per day (Bcf/d).
Cameron LNG’s export facility is located in Hackberry, Louisiana, next to the company’s existing
LNG-import terminal. Phase 1 of the project includes three liquefaction units—referred to as trains—
that will export a projected 12 million tons per year of LNG exports, or about 1.7 Bcf/d.

Train 1 is currently producing LNG, and the first LNG shipment departed the facility aboard the
ship Marvel Crane. The facility will continue to ship commissioning cargos until it receives approval
from the Federal Energy Regulatory Commission to begin commercial shipments.
Commissioning cargos refer to pre-commercial cargo loaded while export facility operations are still
undergoing final testing and inspection. Trains 2 and 3 are expected to come online in the first and
second quarters of 2020, according to Sempra Energy’s first-quarter 2019 earnings call.
Cameron LNG has regulatory approval to expand the facility through two additional phases, which
involve the construction of two additional liquefaction units that would increase the facility’s LNG
capacity to about 3.5 Bcf/d. These additional phases do not have final investment decisions.
Cameron LNG secured an authorization from the U.S. Department of Energy to export LNG to Free
Trade Agreement (FTA) countries as well as to countries with which the United States does not
have Free Trade Agreements (non-FTA countries). A considerable portion of the LNG shipments is
expected to fulfill long-term contracts in Asian countries, similar to other LNG-export facilities located
in the Gulf of Mexico region.
Cameron LNG will be the fourth U.S. LNG-export facility placed into service since February
2016. LNG exports rose steadily in 2016 and 2017 as liquefaction trains at the Sabine Pass LNG-
export facility entered service, with additional increases through 2018 as units entered service at
Cove Point LNG and Corpus Christi LNG. Monthly exports of LNG exports reached more than 4.0
Bcf/d for the first time in January 2019.
Currently, two additional liquefaction facilities are being commissioned in the United States—the
Elba Island LNG in Georgia and the Freeport LNG in Texas. Elba Island LNG consists of 10 modular
liquefaction trains, each with a capacity of 0.03 Bcf/d.
The first train at Elba Island is expected to be placed into service in mid-2019, and the remaining
nine trains will be commissioned sequentially during the following months. Freeport LNG consists
of three liquefaction trains with a combined baseload capacity of 2.0 Bcf/d. The first train is expected
to be placed in service during the third quarter of 2019.

NewBase June 12 – 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices fall on weaker demand growth, surprise gain in US crude stocks
Reuters + NewBase
Oil prices fell nearly 2% on Wednesday, weighed down by a weaker demand outlook and a rise in
U.S. crude inventories despite growing expectations of ongoing OPEC-led supply cuts.
Brent crude futures, the international benchmark for oil prices, were down $1.30, or 2.09%, at $60.99
a barrel by 0816 GMT. U.S. West Texas Intermediate (WTI) crude futures were down $1.24, or
2.33%, at $52.03 per barrel.
The U.S. Energy Information Administration (EIA) cut its forecasts for 2019 world oil demand growth
and U.S. crude oil production in a monthly report released on Tuesday. The EIA lowered its 2019
world oil demand growth forecast by 160,000 barrels per day (bpd) to 1.22 million bpd and wound
back its forecast for 2019 U.S. crude production to 12.32 million bpd, 140,000 bpd less than the
May forecast.
A surprise increase in U.S. crude stockpiles also kept oil prices under pressure. “Investors have
been concerned about the recent rise in stockpiles in the U.S.,” ANZ bank said in a note.
Oil price special
coverage

U.S. crude inventories rose by 4.9 million barrels in the week ended June 7 to 482.8 million barrels,
according to data from the American Petroleum Institute (API) on Tuesday. That compared with
analyst expectations for a decrease of 481,000 barrels. Official data from the Energy Information
Administration (EIA) is due at 10:30 a.m. EDT (1430 GMT) on Wednesday.
Alongside concerns about rising supply, ongoing trade tensions between the United States and
China, the world’s two biggest oil consumers, weighed on prices. U.S. President Donald Trump said
on Tuesday he was holding up a trade deal with China.
“Oil prices have struggled to retain bullish gains as traders stay cautious over heightened
geopolitical risks and persistent weakness in the global economic backdrop,” said Benjamin Lu,
commodities analyst at Phillips Future in Singapore. With the next meeting of the Organization of
the Petroleum Exporting Countries (OPEC) set for the end of June, the market is looking to whether
the world’s major oil producers prolong their supply cuts.
OPEC, along with non-members including Russia in a group called OPEC+, have limited their oil
output by 1.2 million bpd since the start of the year to prop up prices. Goldman Sachs said in a note
that an uncertain macroeconomic outlook and volatile oil production from Iran and others could lead
OPEC to roll over supply cuts.
“We expect such an outcome to only be modestly supportive of prices with our third quarter Brent
forecast at $65.5 per barrel,” Goldman added. The Energy Minister for the United Arab Emirates
Suhail bin Mohammed al-Mazroui said on Tuesday that OPEC members were close to reaching an
agreement on continuing production cuts.
OPEC is set to meet on June 25, followed by talks with its allies led by Russia on June 26. But
Russia suggested a date change to July 3 to 4, sources within the group previously told Reuters.

NewBase Special Coverage
News Agencies News Release June 12-2019
Demand from Asia is set to power the growth of the global gas
industry over the next five years … IEA
After another record year, global demand for natural gas is set to keep growing over the next five
years, driven by strong consumption in fast-growing Asian economies and supported by the
continued development of the international gas trade.
Demand for natural gas grew 4.6% in 2018, its fastest annual pace since 2010, according to the
IEA’s latest annual market report, Gas 2019. Gas accounted for almost half the increase in primary
energy consumption worldwide. Demand is expected to rise by more than 10% over the next five
years, reaching more than 4.3 trillion cubic metres (tcm) in 2024.
“Natural gas helped to reduce air pollution and limit the rise in energy-related CO2 emissions by
displacing coal and oil in power generation, heating and industrial uses,” said Dr Fatih Birol, the
IEA’s Executive Director. “Natural gas can contribute to a cleaner global energy system. But it faces
its own challenges, including remaining price competitive in emerging markets and reducing
methane emissions along the natural gas supply chain.”

China is expected to account for more than 40% of global gas demand growth to 2024, propelled
by the government’s goal of improving air quality by shifting away from coal. Chinese natural gas
consumption grew 18% in 2018 but is expected to slow to an average annual rate of 8% to 2024 as
a result of slower economic growth.

The IEA also sees strong growth in gas consumption in other Asian countries, particularly in South
Asia. In Bangladesh, India and Pakistan, the industrial sector is the main contributor to growth,
especially for fertilisers to meet the needs of growing populations.
Industrial use of natural gas, both as a fuel and a feedstock, is set to expand at an average annual
rate of 3% and account for almost half of the rise in global consumption to 2024. Power generation
remains the largest consumer of natural gas, in spite of slower growth due to strong competition
from renewables and coal.
Gas 2019 also focuses on the role of liquefied natural gas (LNG) at sea, which is set to emerge as
a fast-growing alternative fuel because of stricter rules on sulphur content that take effect in January
2020.
Supplies to meet growing global demand for natural gas will come from both new domestic
production in fast-growing economies but also increasingly from major exporting countries, led by
the development of abundant shale gas resources in the United States.
The strong growth in LNG export capacity will enable international trade to play a growing role in
the development of natural gas markets as they move towards greater globalisation.
Investment in LNG projects have rebounded in 2018 after several years of decline, and the large
number of projects due to take final investment decision in 2019 is likely to further support trade and
market expansion. However, more investment will be needed in the future.

The recent convergence in market prices in major regions gives an indication of the increasing
globalisation of the natural gas trade. Establishing market-driven pricing mechanisms in fast-
growing economies remains a challenge, however. Recent reforms in major markets are sending
encouraging signals, but more will be required to ensure the sustainable market-driven development
of natural gas in these economies.
European supply security
While European gas consumption is set to remain almost flat in the coming years, domestic
production is set to fall at an average rate of 3.5% per year, primarily driven by the Groningen
phase-out in the Netherlands and declining production in the North Sea.
This structural decline in domestic production, combined with the expiry of several long
term pipeline contracts, opens opportunities for new sources of supply, including LNG.

A global price convergence?
Prices of gas markets in major regions are converging. Differences in regional prices
have sharply decreased since the final quarter of 2018 (especially between Asia and
Europe) thanks to well-supplied markets. But the Asian spot market still faces a higher
degree of price volatility because of stronger seasonal patterns.
The expansion of the LNG trade is likely to encourage greater price convergence, while
the debottlenecking of pipeline capacity in the Permian Basin is likely to keep low US
gas prices in the future? However, in the absence of further investment in LNG
capacity, the prospect of a tighter market would also imply a return to higher regional
price differentials.

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
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For additional free subscription emails please contact Hawk
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Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 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 June 2019 K. Al Awadi

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