New base energy news 31 january 2019 issue no 1228 by khaled al awadi

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NewBase Energy News 31 January 2019 - Issue No. 1228 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: Sharjah Electricity award GE, Sumitomo power plant Ups
Saudi Gazette + NewBase
GE and Japan’s Sumitomo Corporation have reached a public-private partnership milestone by
signing a 25 year Power Purchase Agreement (PPA) with the Sharjah Electricity and Water Authority
(SEWA) to develop, build and operate a 1.8 gigawatt (GW) combined cycle power plant located in
Hamriyah.
Equipped with GE’s HA technology, including the world’s largest and most efficient heavy-duty gas
turbine, the flagship project is expected to be the most efficient power plant in the Middle East’s
utilities sector upon completion and will enable SEWA to substantially improve the overall efficiency
of its operations.
The project will consist of three combined cycle blocks, the first of which is expected to come online
in May 2021. Chairman Dr. Rashid Alleem of SEWA said “we are committed to strengthen Sharjah’s
electricity infrastructure and provide seamless, affordable power.
The proposed plant underlines our focus to promote public-private partnerships to drive a robust
power production and management plan that is aligned with local energy needs, as well as the
optimal utilization of natural resources.”
Co-sponsors Sumitomo and GE Capital’s Energy Financial Services will partner with Shikoku
Electric Power Company, and Sharjah Asset Management (SAM), the investment arm of the
Government of Sharjah, to form an equity consortium for the project.
This will establish the project as the first independent combined cycle power plant in Sharjah, which
demonstrates the strength of the emirate’s economy and its attractiveness for foreign direct
investment (FDI). SEWA will purchase power from the consortium over 25 years under the PPA. —
SG
GE will supply three HA gas turbines, three steam turbines, six generators, three heat recovery
steam generators (HRSG) and turnkey engineering, procurement and construction (EPC) services
for the power plant. GE will also provide parts, repairs and maintenance services for the power
generation assets at the site for a period of 25 years.

Saudi Arabia unveils $1.5bn renewable energy projects
ArabianBusiness + NewBase
Saudi Arabia has launched the second phase of its renewable energy programme, comprising
seven solar projects worth $1.5 billion, according to a report.
The combined generation capacity will be 1.51 gigawatts (GW), enough to power 226,500
households, said Arab News, citing a statement from the Renewable Energy Project Development
Office of Saudi Arabia’s Ministry of Energy, Industry and Mineral Resources.
The projects will be tendered by mid-2019, after expressions of interest were first invited at
Monday’s National Industrial Development and Logistics Program launch in Riyadh, it stated.These
projects are expected to create more than 4,500 jobs during construction, operations and
maintenance, it added.
The new renewable energy programme seeks to achieve more than 25GW of wind and solar power
generation in the next five years, and close to 60GW over the next decade; of which 40GW will be
generated from solar energy, with a further 16GW of onshore wind, said the Arab News.report.
Overall, Saudi Arabia aims to create a renewable energy capability of more than 200GW over the
next decade, it added.

Oman: Siemens wins $230m contract for Duqm power, water
29/01/2019 Oman Observer
International technology giant Siemens has received an order to supply the Duqm Integrated Power
and Water project (DIPWP) with gas and steam turbines, long-term power generation services and
digital solutions.
The total order volume of the contract is in the range of 200 million euros, representing Siemens’
largest contract in the Sultanate of Oman. Spanning a period of 25 years, the service contract for
the project marks also one of the company’s longest contracts in the oil and gas sector globally.
The DIPWP power and associated SWRO desalination facility is located in the Duqm Special
Economic Zone, Duqm, Al Wusta Governorate, and is being developed by Duqm Power Company
LLC, a joint venture, between Oman Oil Company and Gulf Energy of Thailand. It is set to meet the
requirements of the new adjacent DRPIC Refinery and Petrochemical complex, complementing the
country’s economic diversification plan and the focus on building up its industrial sector.
Following completion of the project in 2022, Duqm Integrated Power and Water plant (DIPWP) will
have an installed generating capacity of 326 megawatts (MW) in combined-cycle duty and 36,000
cubic meters of desalinated water for Duqm refinery and petrochemical facilities per day.
The Siemens scope of supply includes a combined cycle power plant consisting of five SGT-800
industrial gas turbines, five SST-300 industrial steam turbines, and the corresponding control
system. Additionally, the project scope includes Siemens’ cybersecurity solutions to improve asset
visibility, reliability and security, while decreasing operation and maintenance costs.
Eng Abdullah al Hashimi, Project Director, of DIPWP, said: “Oman aims to build a robust and
diversified energy system that can support its long-term, sustainable economic development. We
are committed to supporting the country in realising this vision with projects that set new standards
in efficiency and reliability, and can serve as blueprints for other national and regional projects. We

are pleased to partner with Siemens on this significant project that will support the industrial zones
in the country while preserving natural resources.”
“This is the biggest order ever Siemens achieved in Oman for medium-size gas turbines and the
first one in Oman for our SGT-800. Currently, Siemens supports the generation of more than half of
Oman’s power supply, enabling the country to optimise gas consumption,” said Jean-Claude Nasr,
Senior Executive Vice President, Power Generation at Siemens in the Middle East and North Africa.
“Siemens reiterates its firm commitment to continue its support to the growing Omani market with
focus on the expansion of localisation and Omanisation in the long term, strengthening the country’s
economy and creating more jobs for the Omanis,” Nasr added.
“The advanced monitoring and diagnostics services provided to Duqm plant will help maximise
performance, lower operating costs and deliver better and more reliable business outcomes for the
plant operator,” added Claudia Massei, CEO of Siemens Oman. “We are looking forward to
contributing further to Oman’s long-term energy and water strategy, in a sustainable manner.”
Siemens has been operating in Oman since 1972. Today, the company is actively supporting the
Sultanate’s diversification plan and executing a number of key projects in different sectors. The
company is actively supporting Oman’s long-term economic growth through the application of
technology in the fields of electrification, automation, and digitalisation along with the proactive
transfer of knowledge and technical expertise.

U.S: ExxonMobil to Expand Beaumont Oil Refinery by 65%
Exxonmobil + NewBase
ExxonMobil said today that it has reached a final investment decision and started construction on a
new unit at its Beaumont, Texas refinery that will increase crude refining capacity by more than 65
percent, or 250,000 barrels per day.
The third crude unit within the facility’s existing footprint will expand light crude oil refining, supported
by the increased crude oil production in the Permian Basin.
 Crude-processing capacity to increase by more than 65 percent
 Expansion will enhance Beaumont refinery’s position as a leader in the U.S.
 Construction on track for production startup by 2022
“With access to terminals, railways, pipelines and waterways nearby, the Beaumont refinery is
strategically positioned to benefit from Permian production growth,” said Bryan Milton, president of
ExxonMobil Fuels and Lubricants Company. “The addition of a third crude unit in Beaumont will
enhance the refinery’s competitive position and truly establish it as a leader in the U.S. refining
industry.”
Startup of the new unit is anticipated by 2022. The project is expected to create up to 1,850 jobs
during construction and between 40 and 60 permanent jobs once completed. ExxonMobil previously
announced plans to build and expand manufacturing facilities in the U.S. Gulf region as part of
its Growing the Gulf initiative.

Growing the Gulf projects include expansion of Beaumont’s polyethylene capacity by 65 percent, a
new unit in Beaumont that increases production of ultra-low sulfur fuels, and a new 1.5 million ton-
per-year ethane cracker at the company’s integrated Baytown chemical and refining complex in
Texas.
ExxonMobil and SABIC have also created a new joint venture to advance development of the Gulf
Coast Growth Ventures project, a 1.8 million metric ton ethane cracker currently planned for
construction in San Patricio County, Texas.
ExxonMobil’s integrated operations in Beaumont include a 366,000 barrel-per-day capacity refinery,
as well as chemical, lubricants and polyethylene plants. ExxonMobil has approximately 2,100
employees in the Beaumont area and its operations account for approximately 1 in every 7 jobs in
the region.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and gas company, uses technology and
innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is one of the largest refiners and marketers of petroleum products and its
chemical company is one of the largest in the world. For more information,
visit www.exxonmobil.com or follow us on Twitter www.twitter.com/exxonmobil.

Uk:Discovery of biggest gasfield in a decade raises industry hopes
The Guardian - Adam Vaughan
A Chinese-led consortium has discovered the UK’s biggest gasfield in more than a decade, leading
experts to say there is life yet in the country’s offshore sector.
Drilling found the equivalent of about 250m barrels of oil could be recovered from the Glengorm
reservoir in the central North Sea, about 5% of the UK’s annual gas demand.
The find was hailed as significant by industry and the regulator of the region’s last oil and gas
reserves, where production has been declining since the turn of the century.
But environmental groups said it was a disgrace that new oil and gas prospects were being found
and developed, given their contribution to climate change.
The Chinese firm CNOOC owns 50% of the Glengorm project, with a subsidiary of the Italian
company Edison holding another 25% and the French oil firm Total owning the other 25%. The size
of the find is the biggest since the Culzean find in 2008, and 11th largest of any kind in the UK in
the past 30 years.
Total, which made another large gas discovery last September in west Shetland, has been behind
many of the basin’s big discoveries in recent years.
The company said it would use existing platforms and infrastructure nearby to extract the gas, and
the Glengorm prospect demonstrated its “capacity to create value in a mature environment”. Total
tried to find gas in the area twice before, in 2017, but without success.
Kevin Swann, a senior analyst with the consultancy group Wood Mackenzie, said the size of find
was “pretty significant” and he believed the field could be producing gas within 4 to 5 years via the
existing Elgin–Franklin rigs.

The gas is in a reservoir with high pressure and high temperatures, meaning it will be more costly
to produce than other gasfields. But Swann said the scale of the reservoir meant it would be
economically viable to extract.
“The company needs to spend a lot more money on safety features and processing,” he said.The
Oil and Gas Authority, said the the discovery was “very exciting news”.
Andy Samuel, the chief executive of the regulator, said the UK continental shelf still held an
estimated 10bn-20bn barrels of oil and gas, “so there is every chance of yet more significant finds”.
The number of new wells being drilled has fallen in recent years; in 2018 it fell to a level last seen
in 1965. However, the amount of oil and gas found has increased from 83m barrel of oil equivalent
in 2014 to 175m in 2017. Experts said the industry was experiencing an uptick as it recovered from
the 2014-2016 slump in oil prices.
Two of the potential big new finds in 2019 are the Leon and Blackrock projects being drilled by the
private equity-backed firm Siccar Point. “There’s certainly a rejuvenation. Companies are focusing
on better prospects, rather than drilling everything,” said Swann.
Friends of the Earth called on the government to stop supporting new fossil fuel infrastructure. “It’s
a disgrace that oil and gas exploration is still going ahead in the seas off Scotland,” said Caroline
Rance, a climate campaigner at the group.

The United States is expected to export more energy than it
imports by 2020…… Source: U.S. Energy Information Administration, Annual Energy Outlook 2019
EIA projects that, for the first time since the 1950s, the United States will export more energy than
it imports by 2020 as increases in crude oil, natural gas, and natural gas plant liquids production
outpace growth in U.S. energy consumption.
Different assumptions about crude oil prices and resource extraction affect how long EIA projects
that the United States will export more energy than it imports. The United States has been a net
exporter of coal and coke for decades, began exporting more natural gas than it imports in 2017,
and is projected to export more petroleum and other liquids than it imports within the decade.

The United States has imported more energy than it exports on an annual basis since 1953, when
trade volumes were much smaller. Since then, when imports of energy totaled 2.3 quadrillion British
thermal units (Btu), gross energy imports generally grew, reaching a peak of 35 quadrillion Btu in
2005.
Gross energy exports were as low as 4 quadrillion Btu as recently as 2002 but have since risen to
more than 20 quadrillion Btu in 2018, largely because of changes in liquid fuels and natural gas
trade.
EIA’s projected changes in net energy trade are driven mostly by evolving trade flows of liquid fuels
and natural gas. In the Reference case of EIA’s newly released Annual Energy Outlook (AEO), the
United States exports more petroleum and other liquids than it imports after 2020 as U.S. crude oil
production increases and domestic consumption of petroleum products decreases. Near the end of
the projection period,
the United States returns to importing more petroleum and other liquids than it exports on an energy
basis as a result of increasing domestic gasoline consumption and falling domestic crude oil
production in those years.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2019
Note: Net trade series in physical units may be different than those shown in energy units (British
thermal units) because of differences in energy content of the components.
U.S. natural gas trade in the AEO Reference case, which includes shipments by pipeline from and
to Canada and to Mexico as well as exports of liquefied natural gas (LNG), is increasingly dominated
by LNG exports to more distant destinations.
Increasing natural gas exports to Mexico are a result of more pipeline infrastructure to and within
Mexico, allowing for increased natural gas-fired power generation. As natural gas demand grows in
Asia and U.S.

natural gas prices remain competitive, LNG export capacity increases further before leveling off
after 2030 when additional suppliers enter the global LNG market and U.S. LNG is no longer as
competitive. EIA projects the difference between natural gas exports and imports to increase
throughout the AEO projection period, reaching a high of 23 billion cubic feet per day (Bcf/d) in
2050.
The United States continues to export more coal than it imports (including coal coke) through 2050
in the Reference case, but coal exports do not increase because of competition from other global
suppliers closer to major world markets. Trade of electricity with neighboring Canada and Mexico is
a relatively small part of U.S. net energy trade flows.
In the AEO Reference case, which reflects current laws and regulations, the United States begins
exporting more energy than it imports on an annual basis in 2020 and maintains that status through
2050. In some side cases, the United States again imports more energy than it exports by the mid-
to late-2030s.
Source: U.S. Energy Information Administration, Annual Energy Outlook 2019
Note: Net trade series in physical units may be different than those shown in energy units (British
thermal units) because of differences in energy content of the components.
In the AEO’s Low Oil Price case, lower crude oil prices lead to lower crude oil and natural gas
production, and the United States returns to importing more energy than it exports by 2035.
Similarly, in the Low Oil and Gas Resource and Technology case, crude oil and natural gas
production is lower than in the Reference case, and the United States becomes a net energy
importer again in 2039.

NewBase 31 January 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil rises as Saudi Arabia cuts supply to U.S., Venezuela struggles
to keep up exports ….. Reuters + NewBase
Oil prices rose for a third day on Thursday, pushed up by lower imports into the United States amid
OPEC efforts to tighten the market, and as Venezuela struggles to keep up its crude exports after
Washington imposed sanctions on the nation.
U.S. West Texas Intermediate (WTI) crude futures were at $54.63 per barrel at 0445 GMT, up 40
cents, or 0.7 percent, from their last settlement. International Brent crude oil futures were up 59
cents, or 1 percent, at $62.24 per barrel.
Oil price special
coverage

The price rise came after a report from the U.S. Energy Information Administration (EIA) on
Wednesday showed a drop in Saudi crude supply to the United States.
“Crude oil prices were stronger after signs emerged that OPEC cuts are impacting trade. EIA’s
weekly report showed that U.S. imports from Saudi Arabia fell by more than half from the previous
week to 442,000 barrels per day (bpd). This is the
second lowest level in weekly data going back to 2010,” ANZ bank said.
Saudi Arabia is the de-facto leader of the Organization of the Petroleum Exporting Countries
(OPEC), which together with some non-OPEC producers, including Russia, announced supply cuts
late last year aimed at tightening the market and propping up prices.
U.S. sanctions imposed on Venezuela’s state-oil firm PDVSA this week are also causing some
supply disruptions.
Venezuela’s oil inventories have started to build up at the country’s ports and terminals as PDVSA
is finding it cannot export crude at its usual rate due to U.S. sanctions imposed earlier this week.
As of Wednesday, Venezuela had 25 tankers with nearly 18 million barrels of crude - representing
about two weeks of the country’s production - either waiting to load or expecting authorization to set
sail, shipping data showed.
Despite these disruptions, oil remains in ample supply, not least because of soaring U.S. crude oil
production, which jumped by more than 2 million bpd last year to a record 11.9 million bpd.
This shows in high U.S. commercial crude oil stockpiles, which rose by 919,000 barrels in the week
to Jan. 25, to 445.94 million barrels, EIA data showed. Stockpiles are 6.6 percent higher than a year
ago.

NewBase Special Coverage
News Agencies News Release 07 January 2019
The Oil Shock That Never Was: How Shortage Warnings Missed
the Mark … By Grant Smith
Three years ago, influential figures in the oil industry were sounding a clear warning: prices were
too low, investment was collapsing and by the end of the decade the world would face a shortage.
In reality, the market today is looking at several more years of plenty, so much so that OPEC is
beginning its third year of production cuts just to prevent a surplus.
“We’re in an age of abundance,” said Ed Morse, head of commodities research at Citigroup Inc. in
New York. “A supply crunch is not likely at all.”
The Oil Shock That Wasn't
Supply growth is looking much stronger than expected
Source: IEA
So what happened?
Oil’s biggest slump in a generation earlier this decade forced companies to slash spending, leading
to a flurry of warnings that there wouldn’t be enough growth in oil supplies to meet rising demand
and also offset production lost from aging fields.

Investment in oil and gas production collapsed by about $350 billion, or more than 40 percent, from
2014 to 2016 -- the sharpest contraction since the 1980s -- after crude fell from over $120 a barrel
to less than $30, according to the International Energy Agency. The number of new projects
approved in 2017 dwindled to the lowest in 70 years, the Paris-based agency said.
‘Alarm Bells’
In November 2015, the IEA cautioned that supply growth outside OPEC would grind to a halt by
2020. Three months later it was ringing “alarm bells” for a coming crisis. Total SA Chief Executive
Officer Patrick Pouyanne foresaw a shortfall of as much as 10 million barrels a day, about the
volume Saudi Arabia was pumping at the time. The concerns were echoed across the industry,
from Royal Dutch Shell Plc executives to hedge fund veteran Andy Hall.
Instead, supply has turned out to be plentiful. The U.S. is estimated to produce about 12 million
barrels a day of crude this year, a level it was earlier forecast to reach only in 2042. Russia has
raised output to a record and Iraq’s is near unprecedented levels. Brazil is set to pump at the fastest
pace in at least 15 years in 2019, according to the IEA.
Bank of America Corp. estimates three-quarters of non-shale projects over the next five years will
be profitable at just $40 oil, bringing new crude from the North Sea to Guyana even if prices stay
low.

These have kept oil prices in check, despite a brief surge to a four-year high above $86 in October
as American President Donald Trump’s sanctions against Iranian exports threatened to disrupt the
market. Brent was at $61.87 a barrel at 11 a.m. in London.
Pushed Back
Forecasts of a supply gap persist, but they’re being pushed further out into the future.
The world still needs to add another 10 million barrels a day of production capacity -- effectively
another Saudi Arabia -- by the first part of the next decade, and investment in the industry outside
shale isn’t sufficient to ensure this, IEA Executive Director Fatih Birol said in Davos, Switzerland, on
Jan. 22. OPEC officials regularly say their current policy is aimed at encouraging enough investment
to prevent a supply crunch.
Risks such as the U.S. sanctions on Venezuela and Iran still remain. But as America’s shale surge
continues, and oil majors squeeze costs and deploy new technologies, the dangers of a prolonged
shortfall are abating.
Though the shale boom has recently shown signs of slowing, the U.S. government forecasts that
crude production will continue to hit new records into the next decade, turning a country once reliant
on imports into an exporter to rival many OPEC members. Consultant Rystad Energy AS projects
that the U.S. will be producing more oil than Saudi Arabia and Russia combined by 2025.
“The shale story is a story of the triumph of technology, and all the signs are that that process will
continue,” said Paul Stevens, a fellow at the Chatham House think tank in London. “History suggests
you don’t turn that back. It may continue at a slower rate than before, but you don’t tend to reverse
it.’’

Reset Costs
The expansion isn’t limited to shale. Oil’s crash forced companies to trim excesses, become more
efficient and reset industry costs. So, while they were cutting expenditure, most were also learning
how to keep the production taps open at far lower prices.
That’s resulted in costs in the deepwater Gulf of Mexico and Brazil falling by 50 percent as they
make use of previously built infrastructure and deploy new technology like robotics, according to
Citigroup’s Morse.
Norway’s Equinor ASA has reduced the break-even price of its portfolio of new projects to $21 a
barrel, a figure that was closer to $70 in 2013. BP Plclast year started output from a Gulf of Mexico
project after spending 15 percent below its budget, and is working on a $9 billion expansion of
its Mad Dog project, having more than halved the original cost.
Cost Deflation
“The view that there’s been inadequate spending is based on an assumption about cost structures,”
said Morse. “Costs continue to
deflate, not increase, and they
deflate everywhere.” There are
even signs of a revival in spending,
which would only boost production
further. Capital expenditure in shale
is set to increase by 20 percent this
year, the IEA’s Birol said.
“There is no sign of a shortage so
far,” said Amy Mayers Jaffe, a senior
fellow at the Council on Foreign
Relations in New York. “People who
believe there have to be higher oil
prices in the future, like OPEC or
Saudi Arabia, still suggest that the
supply gap is still three years away.
It is continuously three years in the
future.”

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
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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 January 2019 K. Al Awadi

New base energy news 31 january 2019 issue no 1228 by khaled al awadi

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New base energy news 31 january 2019 issue no 1228 by khaled al awadi