New base energy news 23 august 2020 - issue no. 1366, senior editor eng. khaled al awadi

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NewBase Energy News 23 August 2020 - Issue No. 1366 Senior Editor Eng. Khaled Al Awadi
61
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Dubai’s Electricity peak load in hits eight-year high
The National + NewBase
Dubai's peak load of electricity rose 6.6 per cent on annual basis to its highest level in eight years,
signifying economic growth in the emirate and a potential for further expansion, according to the
Dubai Electricity and Water Authority (Dewa).
The peak load, which refers to a period when electricity is in high demand, climbed to 9,074
megawatts, Saeed Mohammed Al Tayer, managing director of Dewa, said in a statement. This
increase in the peak load is a testimony to the boost of social and economic activities in Dubai.
“This increase in the peak load is a testimony to the boost of social and economic activities in
Dubai,” said Mr Al Tayer. Dewa has an installed capacity of 11,700MW of electricity and 470MIG
of water per day.
The Barakah nuclear energy plant – the Arab world’s first nuclear facility – successfully connected
to the UAE power grid a few days ago.
www.linkedin.com/in/khaled-al-awadi-38b995b

The UAE is diversifying its energy mix and turning to renewable and nuclear energy as it looks to
free up hydrocarbons for export markets and generate up to 44 per cent of its energy from clean
sources by 2050.
Mr Al Tayer said the firm is continuously working to enhance its production capacity of electricity
and water and the efficiency of its transmission and distribution grids to keep pace with the urban
and economic expansion of Dubai.
Mr Al Tayer, who is also the chief executive of the utility, said the company has “surpassed similar
top utilities in Europe and America in terms of efficiency and reliability”.
Major milestone reached in Dubai solar power mega project , What the UAE's energy mix will look
like in the decades to come . The firm said it has reduced losses in electricity transmission and
distribution networks to 3.2 per cent, compared to 6 to 7 per cent recorded in Europe and the US.
Water network losses decreased to 6.6 per cent, compared to 15 per cent in North America, Mr Al
Tayer added.
Dewa has also clinched a new world record in electricity customer minutes lost per year. The utility
recorded 1.86 minutes in Dubai, compared to around 15 minutes recorded by leading electricity
companies in the European Union, he added.

Oman:Submission date for biodiesel project extended to Aug 31
Oman observer - Conrad Prabhu
Oman Environmental Services Holding Company SAOC (be’ah), the Sultanate’s solid waste
management flagship, has announced a two-week extension in the deadline for the submission of
proposals from interested investors in a landmark project that seeks to convert used-cooking oil
(UCO) into environmentally friendly biodiesel.
Offers, originally due by August
16, may now be handed in by
August 31, 2020, the state-run
utility said in an email to
companies that had registered
their interest in the initiative.
Last month, be’ah invited
interest investors to prequalify
for a competitive tender
leading to the award of a
contract for the management
and recycling of UCO in the
Sultanate. The initiative is
expected to lead to the
production and sale of
biodiesel in Oman, said be’ah.
“The purpose of this pre-
qualification document is to
assess international and local
interest from developers with
relevant experience to manage the collection and/or the treatment of generated (used cooking oil)
from local generators to be utilised as feedstock into biodiesel production, on a Design, build, own
and operate (DBOO) basis,” it stated. The utility is allocating a 25,000 sq metre plot of land within
the Barka landfill for the establishment of the biodiesel facility.
According to studies by researchers and experts, significant quantities of used cooking oil are
produced daily as part of food preparations across an array of sectors and institutions in the
Sultanate. They include hotels, restaurants, fast food outlets, school cafeterias, catering companies,
camps and even residential homes. While a portion of this waste is collected by firms for onward
export to overseas-based recyclers, the remainder is understood to be disposed of in drains and
landfills. Additionally, there are concerns that waste cooking oil is being resold to the detriment of
public health.
In response to queries from interested bidders, be’ah clarified that it is currently in the process of
“assessing” the quantity of used cooking oil that may become available as feedstock for conversion
into biodiesel.
Asked by bidders for details of “organisations, companies, factories and other establishments” that
may have committed to providing be’ah with their waste oil output, the state-owned holding company
noted: “As of now, be’ah currently has no commitments with any entities working in the UCO stream;
however, be’ah is working in close collaboration with the ministries to force all commercial UCO
generators to register with be’ah for a collection system. This will be initiated in phases starting with
Muscat Governorate.”

be’ah also pointed out that it would support successful bidders in tying up with “potential biodiesel
off-takers”, but would leave it open to the bidders themselves to forge alliances with off-takers of
their own choosing.
Separately, an Omani technological initiative dubbed Wakud has announced that it is pressing
ahead with the establishment of a facility for recycling waste cooking oil into biofuels at Khazaen
Economic City near Barka.
Wakud has roped in UK-based biofuels specialist Green Fuels as a joint venture partner in the
project. Green Fuels is a pioneer in renewable fuels founded in 2003 and has supplied biofuel
equipment with aggregate capacity equating to $500bn in fuel sales to customers in more than 80
countries.

Oman secures global markets for its urea output
Oman Observer - Conrad Prabhu
Swiss-based international agri-business trader Ameropa has announced that it has struck a deal
with OQ Trading Limited (OQT), the trading arm of OQ – the Sultanate’s global integrated energy
company – to lift a sizable proportion of the urea output of the Oman-India Fertilizer Company’s
(OMIFCO) fertilizer project at Sur.
Basel-headquartered Ameropa, which specialises in the marketing of fertilisers and grains around
the world, said it has entered into a three-year offtake agreement covering part of the granular urea
output of the OMIFCO plant.
As part of this pact, an initial shipment of 49,500 metric tons of granular urea was loaded on board
a bulk carrier at OMIFCO’s Qalhat jetty earlier this month, with the vessel currently en route to Brazil
– representing a promising new market for Omani urea.
“This ground-breaking deal with OQT, which is being supported by OMIFCO (Oman India Fertiliser
Company SAOC), further solidifies our role as the leading urea trading company in the world and
helps us gain additional market share in strategic regions,” said Ameropa in a statement.
A joint Omani-Indian venture, OMIFCO was launched in 2005 at Sur Industrial City with a capacity
to produce 1.65 metric tons/year of urea and 350,000 tons/year of ammonia. Wholly Omani
government-owned OQ has a 50 per cent stake in the project. Indian state-owned cooperatives
Indian fertiliser cooperatives Krishak Bharati Cooperative (25 per cent) and Indian Farmers
Fertilisers Cooperative (25 per cent) are also shareholders in the project. When it commenced
operations on July 15, 2005, it heralded an era of petrochemicals production in the Sultanate.
Under a long-term offtake pact signed with the Indian government, urea output from the plant –
averaging around 2 million metric tons annually – had been shipped to Indian markets from the
outset of operations 15 years ago.

But, according to recent media reports, that agreement effectively came to an end last month, on
the 15th anniversary of OMIFCO’s inauguration — prompting the company and its trading arm –
OQ Trading Limited – to explore alternative markets for the plant’s urea production. The ammonia
output, however, is sold internationally via an offtake arrangement with another trader.
Also on the occasion of the 15th anniversary, OMIFCO and its shareholders announced the launch
of its ‘OQ’ brand of Omani bagged urea for the local, regional and internationally markets. The high-
quality product, marketing in 50kg bags, promises to provide new impetus to Oman’s efforts to boost
agricultural production as part of a national strategy to strengthen food security and reduce the
country’s longstanding dependence on imports for its food requirements.

China up to Record-Breaking U.S. Crude Haul in September
Bloomberg - Sheela Tobben
U.S. oil exports to China are set to reach a record next month in a sign that Beijing is stepping up
purchases to meet its commitments under a landmark trade deal reached earlier this year.
Chinese crude buyers have chartered about 19 tankers for September to send roughly 37 million
barrels of oil to China, according to provisional tanker fixtures. If these proceed as planned, the
exports would surpass a record set in May at 35.2 million barrels, according to U.S. Census data
compiled by Bloomberg. The May volume was also the most by any U.S. oil buyer for a given month,
data show.
Under phase one of the deal, the world’s largest oil importer promised to buy an additional $200
billion of U.S. goods and services in 2020 and 2021, including $52 billion in energy products, in an
agreement signed in January. Purchases so far have lagged that target. A review of the deal that
was set for for August 15 was canceled, and has yet to be rescheduled.
Taking stock
China’s purchases under the phase-1 deal continue to fall substantially short
All but one of the tankers, which can carry about 2 million barrels each, will originate on the U.S.
Gulf Coast. Unipec, the trading arm of Chinese’s largest refiners Sinopec, has booked some of
those tankers, while a few others were chartered by PetroChina Co Ltd, a subsidiary of China
National Petroleum Corp.
Still, fixtures can get canceled or rerouted if market fundamentals change.

NewBase August 23-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil falls 1% on sluggish coronavirus recovery, supply concerns
Reuters + Bloomberg + NewBAse
Oil prices lost about 1% on Friday as the economic recovery worldwide runs into stumbling blocks
due to renewed coronavirus lockdowns and on worries about rising crude supply.
The euro zone’s economic recovery from its deepest downturn on record stalled this month as pent-
up demand unleashed by the easing of lockdowns in July dwindled, a survey showed. By contrast,
U.S. housing and manufacturing survey data came in better than expected.
Brent crude futures settled at $44.35 a barrel, down 55 cents, 1.2%. U.S. West Texas Intermediate
(WTI) crude futures settled at $42.34 a barrel, falling 86 cents, or 1.1%.
Brent fell about 1% for the week, while WTI saw a weekly rise of nearly 1%.
India’s crude oil imports fell in July to their lowest level since March 2010, while U.S. motorists drove
13% fewer miles in June than a year earlier, according the U.S. Department of Transportation.
Oil price special
coverage

Libya’s national oil company said it could restart oil exports after the North African country’s
internationally recognized government in Tripoli announced a ceasefire, putting further pressure on
oil prices.
“This is a market that can’t afford to absorb any additional barrels,” said John Kilduff, partner at
Again Capital LLC in New York. “While I’m happy for them in striking a peace deal, it’s problematic
for the global supply situation and so that’s a big part of today’s selloff.”
Those barrels would add to the output from OPEC+, which consists of the Organization of the
Petroleum Exporting Countries and allies, including Russia. That group has been focused on
ensuring members that had overproduced against their commitments would cut output.
An internal report showed the group wanted oversupply between May and July compensated for
with cuts this month and next, Reuters reported.
The report also showed OPEC+ expects oil demand in 2020 to fall by 9.1 million barrels per day,
and by as much as 11.2 million bpd if there is a resurgence of coronavirus infections.
The U.S. oil and natural gas rig count, an indication of future supply, increased this week for the first
time since March, energy services firm Baker Hughes Co (BKR.N) said
Permian Oil Drillers Bounce Back with Biggest Rig Hike This Year
Number of active U.S. oil rigs up by 11 to 183: Baker Hughes
Explorers in the world’s biggest shale patch are roaring back, putting an additional 10 rigs to work
this week for the biggest jump in activity since a price crash triggered an unprecedented collapse in
drilling.
Drillers in the Permian Basin of West Texas and New Mexico led the rest of the nation in expanding
the rig count. With crude stabilizing above $40 a barrel, the total number of active U.S. oil rigs rose
by 11 to 183 this week, according to Baker Hughes Co. data released Friday.
The increase in the Permian was the biggest since December. But despite the jump, overall drilling
is still mired at levels not seen since the early days of the shale boom more than a decade ago.

Halliburton Co., the world’s biggest fracking provider, expects the worst-ever slump in oil exploration
to end soon. Almost three fourths of the nation’s active oil rigs have been sidelined this year on the
heels of pandemic-driven lockdowns that decimated energy demand and sent prices plummeting in
March and April.
“We do see some recovery in the back half” of this year, Halliburton Chief Executive Officer Jeff
Miller said during a recent interview on Bloomberg TV. “Frack activity reached a bottom in the
second quarter. I think we’ll see drilling activity reach a bottom in the third quarter and then some
modest recovery.”
West Texas Intermediate, the U.S. benchmark, fell 0.8% to $42.58 a barrel at 1:23 p.m. in New
York.
Oil in Retreat With U.S. Economic Data Flagging Spotty Rebound
By Andres Guerra Luz
Oil fell the most in a week with a sluggish U.S. labor market compounding concerns that demand
will remain weak.
Futures in New York declined 0.8% on Thursday, retreating from a five-month high. Applications for
U.S. unemployment benefits unexpectedly increased last week, boding poorly for fuel consumption
as millions of Americans remain out of work.
Magnifying the dour view for a pickup in demand, minutes from the U.S. Federal Reserve said the
pandemic would weigh heavily on economic activity. OPEC+ also warned at a meeting Wednesday
that the pace of the demand rebound was slower than expected and at risk from a prolonged second
wave of the coronavirus.
The rise in U.S. jobless claims “put a damper on sentiment,” weighing on crude futures, said Harry
Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London. “The faster the
recovery in the job market, the quicker U.S. gasoline demand will get back on its feet.”

U.S. benchmark futures have rebounded from negative territory in April, but are still having difficulty
rallying past the mid-$40 a barrel range. While U.S. government data this week showed shrinking
stockpiles, the demand picture remains murky as countries struggle to contain surging coronavirus
infections. Energy Aspects Ltd. lowered its global jet fuel demand forecasts for August and
September, citing slower than anticipated growth in Europe, Asia and the U.S.
“With all the bullish headlines that we’ve seen over the last weeks regarding inventories,” the lack
of a stronger rally in prices is a troubling sign, said Tariq Zahir, managing member of the global
macro program at Tyche Capital Advisors LLC. “Crude fails to break to the upside and you’re in a
contango market, so risk is toward the downside.”
Brent’s prompt spread -- the difference between the prices of the front-month contract and that of
the following month -- weakened to its widest contango structure since May, signaling oversupply.
In physical markets, the average premiums for U.S. Gulf Coast sour crudes Mars, Poseidon and
Southern Green Canyon traded at the lowest levels in nearly a month in response to weak refinery
demand. Nationwide refinery runs were at 80.9% last week, the weakest seasonally in decades.
Meanwhile, Exxon Mobil Corp.’s Baton Rouge refinery in Louisiana is idling one of two fluid catalytic
cracking units due to low demand, according to a person familiar with operations. The plant already
idled one of three cokers earlier this month and poor margins may mean more U.S. Gulf
refiners reduce coker runs, taking less heavy crude in August and September, according to traders.
OPEC+ needs to fix daily oversupply of more than two million barrels, document shows
Some members of the OPEC+
group of oil-producing nations
would need to slash output by
an extra 2.31 million barrels
per day (bpd) to make up for
their recent oversupply, an
internal OPEC+ report seen
by Reuters shows. The
surplus seen between May
and July ought to be
compensated for in August
and September, the report
said.
OPEC+ - which includes
members of the Organization
of the Petroleum Exporting
Countries and other
producers including Russia -
stepped up their joint output
cuts to a record 9.7 million bpd
in May before tapering them to
7.7 million bpd this month.
In April the impact of the new
coronavirus on air and road
travel and other areas of the
global economy sent

benchmark oil prices LCOc1 below $16 a barrel.
The ongoing spread of the virus is now threatening oil demand recovery forecasts.
AUGUST-SEPTEMBER
The internal report seen by Reuters did not say how the additional cuts would be distributed over
August and September. But if the 2.31 million bpd figure is adopted and spread equally over the
two months, it would take OPEC+ oil cuts to about 8.85 million bpd.
The report shows OPEC+ expects oil demand in 2020 to fall by 9.1 million bpd, 100,000 bpd more
than in its previous forecast, before rising by 7 million bpd in 2021.
However, OPEC+ also see an alternative scenario in which a stronger and more-prolonged second
wave of infections hits Europe, the United States, India and China in the second half of the year.
Under this scenario, demand is forecast to fall by 11.2 million bpd in 2020, sending OECD
commercial oil inventories in the fourth quarter to 233 million barrels above the latest 5-year
average, the report showed.
Stocks would stand at 250 million barrels above the latest 5-year average in 2021.
COMPLIANCE
Data shows among OPEC members, Iraq and Nigeria were the least compliant and even the United
Arab Emirates, which made additional voluntary cuts in June, overproduced by around 50,000 bpd
over the May-July period.
Among non-OPEC participants, Russia and Kazakhstan overproduced by 280,000 bpd and 190,000
bpd, respectively.

NewBase Special Coverage
The Energy world - Special 23- August-2020
Monthly U.S. energy-related CO2 emissions in April were the
lowest in decades… Source: U.S. Energy Information Administration, Monthly Energy Review
Monthly U.S. energy-related carbon dioxide (CO2) emissions fell to 307 million metric tons (MMmt)
in April 2020, the lowest value in the U.S. Energy Information Administration’s (EIA) monthly series
for CO2 emissions, which dates back to 1973.
Travel restrictions and other measures to mitigate the spread of coronavirus in April resulted in
sudden and significant changes in energy consumption, resulting in lower energy-related emissions.

Changes in U.S. energy-related CO2 emissions in April largely mirror the changes in energy
consumption described in previous Today in Energy articles: a sudden drop in petroleum
consumption, shifts in electricity consumption from the commercial and industrial sectors to the
residential sector (and lower overall electricity use), and relatively smaller changes in natural gas
consumption across sectors.
More than 99% of energy-related CO2 emissions come from the consumption of fossil fuels:
petroleum, coal, and natural gas.
From March to April 2020, CO2 emissions from petroleum consumption decreased 25%, and CO2
emissions from coal consumption decreased 16%. Both changes resulted in the lowest monthly
CO2 emission values on record for those fuels.
Despite the 25% decline in petroleum-related CO2 emissions, the United States still emitted more
CO2 from petroleum (133 MMmt) in April than from natural gas (122 MMmt) or coal (51 MMmt).
Energy-related CO2 emissions from natural gas consumption decreased 17% between March and
April 2020. However, unlike CO2 emissions from petroleum and coal, which reached record lows,
CO2 emissions from natural gas in April 2020 were 22% greater than the previous April, largely
because natural gas-fired power plants gained market share in the U.S. electric power sector.
The largest decreases in CO2 emissions in April occurred in the transportation sector. Consumer
responses to the coronavirus, stay-at-home orders, and other travel restrictions that were in place

throughout the country in April reduced consumption of motor gasoline (the most-consumed
petroleum fuel in the United States) and jet fuel (the third-most consumed petroleum fuel).
CO2 emissions from motor gasoline consumption, which accounted for 57% of transportation sector
emissions in 2019, fell to a record-low 59 MMmt of CO2 in April 2020. CO2 emissions from jet fuel,
which accounted for 13% of 2019 U.S. transportation-sector emissions, also fell to a record low in
April 2020.
U.S. electric power sector CO2 emissions in April 2020 also decreased to the lowest monthly levels
on record. Total electricity generation was 7% lower in April 2020 than in April 2019, but energy-
related CO2 emissions were 16% lower.
As coal-fired power plants have retired or been used less often, a larger share of electricity
generation has been coming from lower-emitting combined-cycle natural gas-fired power plants, as
well as power plants fueled by nuclear, solar, and wind, which do not emit any CO2 as they generate
electricity.
Source: U.S. Energy Information Administration, Monthly Energy Review and Short-Term Energy Outlook
In the August 2020 Short-Term Energy Outlook, EIA estimated that U.S. energy-related CO2
emissions reached their lowest level for the year 2020 in April and that forecast emissions will
generally increase through the remainder of the year.
On an annual basis, EIA expects that U.S. energy-related CO2 emissions will total 4,543 MMmt in
2020, or 11% lower than their 2019 level. EIA expects energy-related CO2 emissions in 2021 to
increase to 4,798 MMmt, or 6% lower than their 2019 level.

NewBase Energy News 23 August 2020 - Issue No. 1366 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy, and an international consultant, advisor, ecopreneur and
journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-
to-energy, renewable energy, environment protection and sustainable development.
His geographical areas of focus include Middle East, Africa and Asia. Khaled has
successfully accomplished a wide range of projects in the areas of Gas & Oil with
extensive works on Gas Pipeline Network Facilities & gas compressor stations.
Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2020 K. Al Awadi

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