New base energy news issue 893 dated 26 july 2016

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NewBase Energy News 26 July 2016 - Issue No. 893 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Solar Impulse 2 lands in Abu Dhabi completing first zero-
fuel flight around the world
The National + News Agencies
A dream that started 17 years ago was fulfilled when Solar Impulse 2 landed at 4am on Tuesday
morning in Abu Dhabi, after flying around the world without a single drop of fuel.
Solar Impulse completed its circumnavigation of the globe using only solar energy after what
proved to be the one of the journey’s most difficult legs, as pilot Bertrand Piccard had to battle
turbulence throughout the flight.
Mr Piccard arrived back in Abu Dhabi, where Solar Impulse started in March last year, after taking
off from Cairo on Sunday and flying for about 48 hours. With co-pilot Andre Borschberg, he has
flown more than 40,000 kilometres and for more than 500 hours
during 16 legs of the Masdar-sponsored journey.
"This was a life-long journey for me. This was a moment that I
dreamt about and that I wanted to share with everyone in a
message that the future is clean," Mr Piccard said.
Along the way, the Swiss duo broke eight records, and the
landing in Abu Dhabi was put in the books as the ninth – the first
round-the-world flight using zero fossil fuels and only the power
of the Sun.
On Monday, Masdar chief executive spoke to Mr Piccard, telling
him that Sheikh Mohammed bin Zayed, Crown Prince of Abu
Dhabi and Deputy Supreme Commander of the Armed Forces,
"has been following up on all steps taken since the departure of
Solar Impulse from Abu Dhabi, and he sends you his best

regards and welcomes you back to Abu Dhabi".
The return to Abu Dhabi proved to be one of the most difficult flights, Mr Piccard said. Aside from
not sleeping, Mr Piccard had to stabilise the plane at less-than-ideal situations throughout the
flight. At one point, the pilot responded to a request to increase the speed, saying "for your
information, I am still on the toilet".
To calm his nerves, the team held a small concert with violinist Zhang Zhang performing live in the
mission control room in Monaco, and broadcasted it live to the pilot.
However, the flight was more emotional than it was difficult, Mr Piccard said. He addressed the
team directly to expressed his gratitude.
"I thank you so much for having trusted me in something that was completely crazy," he said."You
are always with me in the cockpit. You chose adventure, you chose exploration, you chose to do
something amazing, and I thank you so much.
"In the beginning, I did not know if it was a good idea. I think it became a great idea, thanks to you,
and thanks for all the people who came with me."
Mr Borschberg also addressed his colleague during the flight. "I think you will spend the next
hours thinking about the flight, all the human moments and all the energy we have," he said. "I
think you will enjoy it."
Mr Piccard reflected on the significance of the solar aircraft.
"I can look at the four motors, I can see them energised on nothing but the Sun," he said moments
before landing. "I look at it and it is like science fiction, it is like magic, but this is the reality and the
future."
After landing, Mr Piccard made his rounds hugging the members of his team at Al Bateen
Executive Airport as the Solar Impulse was pulled into the makeshift hangar for the last time.
By landing back in Abu Dhabi after a total of 21 days of flight travelled in a 17-leg journey, Si2 has
proven that clean technologies can achieve the impossible. Beyond this historic milestone, the two
Swiss pioneers will continue to urge the global implementation of energy efficient solutions
through the creation of the International Committee for Clean Technologies and leverage the
expertise and technology gained over the years in Solar Impulse by launching new innovative
projects, such as the development of solar powered drones.

UAE:Ipic, Mubadala merger to give Abu Dhabi competitive edge
Energy minister says company has successfully positioned Abu Dhabi as the world’s fifth largest
producer in petrochemicals … Gulf News
The merger between International Petroleum Investment Company (Ipic) and Mubadala will create
a global investment champion that will act as an engine for sustainable economic development,
Suhail Al Mazroui, UAE minister of energy and Ipic managing director, has said.
“The combined entity will give Abu Dhabi a competitive advantage on an international stage, and
at the same time, provide the company with investment opportunities that contribute to a
diversified UAE economy,” Al Mazroui said.
He said over three decades, Ipic has invested in major energy and petrochemical assets across
the world through its strategic local and international partnerships with entities such as Adnoc.
“The company has successfully positioned Abu Dhabi as the world’s fifth largest producer in
petrochemicals,” he said.
Al Mazroui made the remarks while commenting on Ipic’s participation at this year’s Abu Dhabi
International Petroleum Exhibition and Conference, to be held from November 7 to 10.
Ipic, which has stakes in a number of companies across the globe, posted a net loss of $2.5 billion
(Dh9.18 billion) in 2015 due to low oil prices. The combined assets of the two companies are
worth $130 billion, with operations in Europe, Asia and the US.

Norway: Golar and Schlumberger form OneLNG joint venture
Source: Schlumberger
Golar LNG and Schlumberger have announced the creation of OneLNG, a joint venture to rapidly
develop low cost gas reserves to LNG. The combination of Schlumberger reservoir knowledge,
wellbore technologies and production management capabilities, with Golar’s low cost FLNG
(Floating LNG) solution, will offer gas resource
owners a faster and lower cost development thereby
increasing the net present value of the resources.
Golar and Schlumberger have 51/49 ownership of the
joint venture. Golar and Schlumberger have agreed
an initial investment commitment to cover the
estimated equity needed to develop the first project.
In addition, the parties will on a project-by-project
basis discuss additional debt capital as required. This
future financing will take into account Golar’s FLNG
intellectual property through an equitable contribution
mechanism to be agreed between the parties.
Golar Vice Chairman, Tor Olav Troim said:
'Our new venture with Schlumberger provides a powerful union of their oilfield services technology
and production management business, and our low cost FLNG solution. It leverages Golar’s LNG
expertise, and builds upon our industry leading position as a midstream solutions provider.'
Schlumberger, President Operations, Patrick Schorn commented:
'This new joint venture is uniquely positioned to optimize the development of low cost gas
reserves. The technology platform and production management capability that Schlumberger
brings will enable a total system approach, leading to a simpler and fast-tracked FID process, and
reliable operational execution for the benefit of the gas resource owners.'
OneLNG will be the exclusive vehicle for all projects that involve the conversion of natural gas to
LNG, which require both Schlumberger Production Management services and Golar’s FLNG
expertise. After reviewing the current market opportunities where 40% of the world’s gas reserves
can be classified as stranded, both parties are excited at the future prospects of OneLNG and are
confident that it would conclude 5 projects within the next 5 years.

Mozambique closes in on huge gas deal after years of delays
Source: Reuters via Yahoo! Finance
Mozambique's long-delayed offshore gas project with Italy's Eni could be approved within months,
sources close to the deal said, sparking investments with the potential to transform one of the
world's poorest countries into a major energy player.
Mozambique made one of the world's biggest gas finds in a decade in 2010 but negotiations with
operators Eni and U.S. firm Anadarko have dragged on for years due to disputes over terms and
concerns about falling energy prices. But Eni has in recent weeks struck deals with contractors
and Mozambique's government which could help it to make a final investment decision (FID) on
Oct. 31, industry sources said.
Eni declined to comment. The
company's Mozambique concession
is split between two huge gas fields,
called Coral and Mamba. Eni has
previously said it expects to make
FID on Coral this year and Mamba in
2017.
Reserves in Mozambique's Rovuma
Basin amount to some 85 trillion
cubic feet -- enough to supply
Germany, Britain, France and Italy for
nearly two decades. It is likely to take
at least five years after FID before
gas production begins.
Samsung Heavy said last week it
was in exclusive talks with Eni to
provide a floating liquefied natural
gas (LNG) platform as part of a
consortium with Technip and
Japan's JGC, in a contract worth
around $5.4 billion. General
Electric has also been approved as a
contractor, two sources said.
Negotiations with government over
tax terms and the funding of the
Mozambique national gas company
have also made moved forward in the
last two months, the sources said.
Eni has already reached a deal to sell
the gas to BP.
'There has been significant progress
in the last few weeks. It's making
investors a lot more optimistic FID
isn't too far away,' one banker involved in the deal told Reuters.

The last major sticking point is how Eni will finance the $11 billion development, the sources said.
Eni is expected to raise several billion dollars by splitting its concession in two and selling up to 20
percent of its Mamba gas field, and the operating rights, to Exxon Mobil, sources involved said.
Any sale by Eni would provide a much-needed capital gains tax windfall for the Mozambican
government during a period of economic crisis and as it struggles to make repayments on $1.35
billion in controversial foreign loans. The
International Monetary Fund suspended aid
to Mozambique in April because of the
hidden debt.
'There's definitely been more urgency on the
government side to get these gas deals
moving,' one industry source said.
While Eni will drill and process gas from
floating offshore platforms, Anadarko is
building sprawling LNG facilities on the
northern Mozambican mainland, causing
complications due to local residents who will
need to be relocated.
Anadarko submitted a plan to resettle
thousands of mostly farmers and fishermen
who will be displaced by the LNG project last
month, one of the last hurdles to jump before
getting the go-ahead on a $24 billion project,
two sources said.
Mitch Ingram, who was previously with BG, was hired by Anadarko last year to head its LNG
business. Ingram's experience has given investors more confidence about Anadarko's ability to
raise financing, the sources said.
Anadarko's project is expected to lag Eni's and its final investment decision is unlikely this year,
the sources said. Anadarko did not respond to request for comment.

India: NGV India Summit 2016: ENGIE's 'LNG to Delhi' Concept
Natural Gas Asia
Conditions in India are favourable for LNG to succeed as transport fuel and the only thing that the
sector needs is proper implementation of ideas. This was the message that French major ENGIE
delivered during the NGV India Summit held in New Delhi on July 14-15.
Natural Gas Vehicle (NGV) program is now close to two decades old in India. The 1990s
witnessed relentless campaign to improve local air quality. This led the Supreme Court of India in
1995 to mandate the switch over to natural gas and resulted in installation of a body called The
Environmental Pollution
(Prevention and Control)
Authority. Subsequent, in 2001
the body recommended the
use of Compressed Natural
Gas (CNG) among users and
paved way for India’s first large
scale CNG program in New
Delhi. Since then India has
seen significant growth of NGV
population with more than 2.8
million vehicles now on the
roads.
Although first generation CNG
program in Delhi as well as
Mumbai resulted in apparent
benefits, time is right for next
generation of gas program as environment debate has again started grabbing headlines in the
country. It was precisely in this context that ENGIE presented its concept ‘LNG to Delhi’ at the
summit. The idea is to develop LNG fueling stations along Mundra-Delhi corridor for heavy-duty
vehicles. The plan envisages four LNG stations, one every 400 km. Stakeholders would be
authorities, transporters, industrials, energy suppliers and truck manufacturers.
“The genesis of ‘LNG to Delhi’ concept lies in the debate revolving around pollution in Delhi. LNG-
fuelled trucks can easily ply inside Delhi, where currently no diesel trucks are allowed. The
Mundra-Delhi corridor at 1200 km is long enough for this concept to be put into practice. We are
ready to work with various stakeholders,” ENGIE’s Maneesh Varma, who is Senior Vice President,
Business Development in India told Natural Gas Asia.
ENGIE believes it can leverage its European experience where it is partner to the ‘LNG Blue
Corridors’ project. The French major has developed three LNG stations for the project, two of
which are operational since 2015 (South of Paris, South of France) and one is under
development. Five other LNG stations are being developed by ENGIE under the ‘Connecting
Europe Facility’ to link France, Germany and The Netherlands.
Conditions right for widespread use of LNG as transport fuel
Ovarith Troeung, Business Development Executive, Green Mobility, Decentralized Solutions for
Cities and Regions, ENGIE said conditions in India at the moment are right for expansion in
demand for LNG in transportation sector. “India has everything. LNG terminals as well as large
consumer base. Only thing that is needed is proper implementation which can happen if
ENGIE's Ovarith Troeung (left) & Maneesh Varma

government facilitates the process by adequate legislation and regulatory framework,” Troeung,
who is based in Paris, toldNatural Gas Asia.
Till about three years ago, Europe did not have many LNG stations but growth in numbers has
been fast. Troeung believes this can happen in India as well if government legislation provides
structure to the industry so that stakeholders such as consumers, vehicle manufacturers, energy
suppliers and authorities can put in a collective effort.
India currently has four LNG terminals with close to 22 million metric tons/year of re-gasification
capacity. Oil ministry expects country’s LNG import terminal capacity to double in next six
years.According to a document released by the ministry on June 3, country’s LNG terminal
capacity will likely rise to 47.5mn mt/yr by 2022. Currently, there are four LNG terminals at Dahej
and Hazira in Gujarat, Dabhol in Maharashtra and Kochi in the state of Kerala. Capacity
expansion of Dahej LNG terminal is expected from 10mn mt/yr to 15mn mt/yr by end of 2016.
Further, a firm plan is in place to add another 2.5mn mt/yr at Dahej.
Space for both CNG and LNG
Despite the fact that CNG sector in India has grown rapidly since its take off in early part of this
century and has attained a certain level of maturity, it is still plagued by severe infrastructural
problems. An important reason why CNG use has not spread beyond tier one and tier two cities.
At about 15,000 km, the pipeline grid is insufficient to reach wider pockets of a country of India’s
size. Although, further expansion in the network is in progress, the pace continues to be slow due
to reasons such as cumbersome land acquisition process.
Varma said that this vacuum can be filled by LNG which can be supplied by trucks to the final
consumer. “Just do not talk about gas grid as there are other ways available to transport gas as
well. I believe India will see growth in both CNG and LNG. On one hand pipeline network can
expand and on the other hand LNG can be supplied to areas not connected with pipeline. What
we call virtual LNG pipeline,” he said.
Last month, Petronet LNG said it is looking to sell about 1.5mn mt/yr in India by transporting it via
trucks to customers not connected by pipelines. Initially, Petronet would deploy the trucks from
Kochi to Mangalore. This is primarily because its 5mn mt/yr re-gasification terminal at Kochi
remains underutilised at mere 5% capacity due to lack of pipeline connectivity.
With projection that LNG prices will remain benign in medium to long term, Varma believes this
would be the right time for Indian government to devise a full-fledged plan for adoption of LNG as
transport fuel. He said ENGIE is ready to work with various stakeholders in developing the
requisite plan.

India-Led Joint Expedition Finds Large Gas Hydrate Deposit in
Bay of Bengal.. Rig-Zone ,Chee Yew Cheang
The U.S. Geological Survey (USGS) reported Monday that it has assisted India in discovering a
large, highly enriched accumulations of natural gas hydrate in the Bay of Bengal -- the first of its
kind in the Indian Ocean that has the potential to be producible -- with Japan's Chikyu deep water
drilling vessel during the Indian National Gas Hydrate Program Expedition 02 (INGHPR-02).
According to USGS, the find is the result of the most comprehensive gas hydrate field venture in
the world to date, with participation of scientists from India, Japan and the U.S. The expedition
conducted ocean drilling, conventional sediment coring, pressure coring, downhole logging and
analytical activities to assess the geologic occurrence, regional context and characteristics of gas
hydrate deposits in offshore India.
"Advances like the Bay of Bengal discovery will help unlock the global energy resource potential of
gas hydrates as well help define the technology needed to safely produce them ... The USGS is
proud to have played a key role on this project in collaboration with our international partner, the
Indian Government," USGS Energy Resources Program coordinator Walter Guidroz said in a
press release.
The international team of scientists that participated in INGHPR-02 was led by India's state-owned
Oil and Natural Gas Corp. Ltd. (ONGC), acting on behalf of India's Ministry of Petroleum and
Natural Gas. Other scientists in the INGHPR-02 team were from the USGS, Japan Drilling Co.
and the Japan Agency for Marine-Earth Science and Technology (JAMESTEC). The USGS also
worked closely with Japan's National Institute of Advanced Industrial Science and Technology
(AIST) on the analysis of pressure core samples collected from sand reservoirs with high gas
hydrate concentrations.

INGHPR-02 is the second joint exploration for gas hydrate potential in the Indian Ocean after the
first, also a partnership between scientists from India and the United States, discovered gas
hydrate accumulations, albeit in in formations that are currently unlikely to be producible.
The USGS noted that while it is possible to produce natural gas from gas hydrates, there are
significant technical challenges, depending on the location and type of formation. Previous studies
revealed that gas hydrate at high concentrations in sand reservoirs is the type of occurrence that
can be most easily produced with existing technologies.
INGHPR-02 therefore focused the exploration and discovery of highly concentrated gas hydrate
occurrences in sand reservoirs. The USGS noted that the gas hydrate discovered during the
expedition are located in coarse-grained sand-rich depositional systems in the Krishna-Godavari
Basin and is made up of a sand-rich, gas-hydrate-bearing fan and channel-levee gas hydrate
prospects. The research team will now proceed to production testing in these sand reservoirs to
determine if natural gas production is practical and economic.
"The results from this expedition mark a critical step forward to understanding the energy resource
potential of gas hydrates ... The discovery of what we believe to be several of the largest and most
concentrated gas hydrate accumulations yet found in the world will yield the geologic and
engineering data needed to better understand the geologic controls on the occurrence of gas
hydrate in nature and to assess the technologies needed to safely produce gas hydrates," USGS
Senior Scientist Tim Collett said in the press release.
There has been rising interest in the search for natural gas hydrates, which are a naturally
occurring, ice-like combination of natural gas and water found in the world’s oceans and polar
regions, as it could potentially be an alternative energy source given that the amount of gas within
the world’s gas hydrate accumulations is estimated to exceed the volume of all known
conventional gas resources.
Energy deficit Japan has an ongoing methane hydrate project which seeks to tap the alternative
fuel found under the sea floor off the country's southeast coast. Japan's Ministry of Economy,
Trade and Industry is now progressing plans for a second round of production testing for methane
hydrates off the coast of Aichi and Mie prefectures, which is believed to hold sufficient reserves to
provide the country with a decade's supply of natural gas, in 2017. If the production test is
successful, Japan plans to commence commercial methane hydrate production in 2013.

Bangladesh: Excelerate Energy, Petrobangla Sign Final
Agreements for First LNG Import Terminal
Petrobangla Chairman Mr. Istiaque Ahmad, Excelerate Energy Chief Development Officer Mr.
Daniel Bustos, and United States Ambassador Ms. Marcia Bernicat at the signing of the
Moheshkhali Floating LNG Terminal
Excelerate Energy, Petrobangla, and the Government of Bangladesh have signed the final
agreement for the construction and operation of Bangladesh's first LNG import terminal –
Moheshkhali Floating LNG.
Located offshore near Moheshkhali Island in the Bay of Bengal, the terminal will provide the
crucial infrastructure required for the country to access natural gas from global markets. The
signing of the agreements signals the commencement of the project and the approval to move
forward to implementation. The terminal is expected to be in operation in 2018, Excelerate said in
a statement.
Moheshkhali Floating LNG will be the world's first fully integrated turnkey floating LNG terminal
whereby all services will be provided under a single contract by a single provider – Excelerate
Energy. Excelerate will fully develop, design, construct, install, finance, and operate the terminal.
This structure will allow for a single point of interface and responsibility to Petrobangla and provide
seamless operations for the Bangladeshi market.
Excelerate will operate the terminal for 15 years, after which the company will transfer ownership
to Petrobangla.
The terminal will include the provision of one of Excelerate's existing floating storage and
regasification units (FSRU), the installation of a subsea buoy system anchored offshore, and the
employment of port service vessels during operation. The FSRU will have 138,000 cubic meters of
LNG storage capacity and a base regasification capacity of 500 million standard cubic feet per
day.

Panama:Picture of the day: first LNG tanker passing through
expanded Panama Canal… LNG World News Staff
The 161,870-cbm Maran Gas Apollonia, chartered by the Hague-based LNG giant
Shell, is the first LNG tanker to transit the newly expanded Panama Canal connecting
the Atlantic and Pacific oceans.
As previously reported by LNG World News, the Greek-flagged LNG tanker was scheduled to
transit through the canal on July 25, loaded with a cargo from Cheniere’s Sabine pass liquefaction
plant, the first of its kind to export U.S. shale gas to overseas markets.
Maran Gas Apollonia (Image courtesy of the Panama Canal)
The LNG carrier is currently transiting the expanded canal, according to the Panama Canal, and
as shown in the image above.
BP’s 135,500-cbm British Merchant, that was previously expected to be the first LNG vessel to
pass trough the expanded canal, is scheduled to transit the new locks on July 26, carrying a cargo
from Trinidad and Tobago to Mexico.
A third LNG tanker is expected to transit the canal in early August.
The expanded canal will be able to accommodate about 90% of the world’s current LNG tankers.
Only the Q-Flex and Q-Max tankers used for exports from Qatar, will not be able to use the canal.

NewBase 26 July 2016 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices edge away from 3-month lows, but mood remains bearish
Reuters + NewBase
Oil prices edged away from three-month lows on Tuesday, supported by a weaker dollar, but
concerns of ongoing oversupply weighed on markets and many traders are raising their bets on
further price falls.
International Brent crude oil futures were trading at $44.80 per barrel at 0134 GMT, up 8 cents from
their last close. U.S. West Texas Intermediate (WTI) crude were at $43.16, up just 3 cents per barrel.
Brent hit its lowest level since May the previous day, while WTI hit its lowest level since April.
Traders said the higher prices were partly a correction after the previous day's sharp falls, and
also reflected a dip in the dollar against other leading currencies away from March highs.
As oil is traded in dollars, a cheaper greenback makes fuel imports cheaper for countries using
other currencies, potentially spurring demand.
Despite the slightly higher oil prices, analysts said the overall mood in oil markets had turned
bearish.
"Ongoing fears of oversupply are encouraging hedge funds to liquidate their recent record bullish
position; at the same time, we are also seeing a corresponding increase in speculative short
positions," said Matt Smith of U.S.-based ClipperData in a note.
Hedge funds have been liquidating bullish positions in crude futures and options, putting
downward pressure on oil prices in recent weeks.
Now the liquidation of old long positions, which profit from rising prices, is being replaced by the
establishment of short positions, which make money out of lower prices, as fund managers try to
capitalize on the downward cycle in prices.
Hedge funds and other money managers cut their net long position in Brent and WTI futures and
options by 31 million barrels to 453 million in the week ending on July 19.
Oil price special
coverage

Experts agree that rebalancing the market will take strengthening demand, as crude from shale
formations and deepwater fields has continued to come into production despite lower prices.
"There's got to be a reckoning that we only have a few weeks left of peak gasoline demand, and
then we hit a shoulder season," said Michael Cohen, head of energy commodities research at
Barclays. In the so-called shoulder season during the autumn, diesel usually drives petroleum
demand.
European diesel demand also may be weaker than expected because of Britain's Brexit vote to
leave the European Union, Cohen said. In China, stockpiles have built, which may limit Asian
demand growth.
Without a surge in demand, the market will be unable to use up the gasoline that refiners
stockpiled ahead of a summer driving season that shaped up to be more lackluster than expected.
Cohen said he did not expect to see prices fall into the $20s or $30s as in January and February.
However, he said, "our view continues to be slightly lower than where we are."

As market sours, LPG-carrying ships anchor off Singapore
Reuters + NewBAse
Last year, liquefied petroleum gas (LPG) supplied to Asia was being snapped up by petrochemical
makers. Now, after a flood of U.S. exports into the region, the market is awash with LPG and
supplies are being stored in ships anchored off Singapore.
At least four Very Large Gas Carriers (VLGCs) are parked off Singapore, including the "BW
Carina" and "Berge Nantong", both of which have been there for at least a week, shipping data
carried on Thomson Reuters Eikon showed.
Some of the vessels are expected to stay until September, traders said.
Middle East supply is also high with at least four other vessels, of between 53,000 and 59,000
deadweight tonnage, provisionally booked to load LPG from Qatar, Yanbu and Ras Tanura,
according to shipping sources.
There are options for the ships to be floating storage, at an average cost of $16,000 a day, the
sources said, with the LPG likely to be stored around Singapore. The emerging glut, the latest
product to be hit by oversupply, comes amid a wave of supplies from the United States, where
LPG is a byproduct of fracking.
"The global LPG market has generally become longer, ever since the U.S. started ramping up
LPG exports in 2011," said Yanyu He, Director of NGL research at consulting firm IHS.

"Nonetheless, it is amazing to see how oversupplied the market has developed in the past few
weeks." U.S LPG exports to Asia hit a high of 1.5 million tonnes in May, breaking a previous
record of 1.1 million tonnes in February, IHS data showed.
Although slipping to around 870,000 tonnes in June, this was still sharply above the monthly
average of 495,000 tonnes for 2015. U.S. exports have triggered a price war with traditional
Middle Eastern sellers like Saudi Arabia, and also Iran, which is returning to the market after
sanctions against it were lifted in January.
Last month, Saudi Aramco set its July 2016 propane contract price at $295 a tonne, down $100
from a year ago. LPG is also referred to as propane or butane.
It now cost at most $320 a tonne to deliver a propane cargo to Japan from the Middle East versus
up to $350 for a U.S. cargo, said an LPG buyer in North Asia.
Chinese buyers, mostly in the petrochemical business, are now cancelling deals or trying to
renegotiate prices. Petrochemical plants use LPG to produce propylene in order to make plastics.

NewBase Special Coverage
News Agencies News Release 21 July 2016
Goldman's Hopeful Oil Call , look at Russian production ability
Blomberg - Julian Lee
International oil companies aren't spending enough on the extra capacity needed to meet demand
by the end of the decade. So it will fall to countries like Russia to provide the additional production
on which we will all depend.
GOLDMAN'S ESTIMATE FOR RUSSIA'S DAILY PRODUCTION 11.7 million barrels
Can Russia do it?
In a July 19 report, Goldman Sachs analysts painted a hopeful picture for Russian oil production --
putting the bank at odds with the forecast made earlier this year by the International Energy
Agency. The latter, though, is more likely to be correct.
Divergent Views
Goldman Sachs and the IEA have very different views on the future of Russian oil production
Goldman expects growth in Russian production to accelerate, with output hitting 11.7 million
barrels a day by 2018, an increase of almost 600,000 barrels a day from 2015. By contrast, the
IEA expects output to fall by 160,000 barrels a day over the same period.
Rosneft accounts for more than a third of Russia's output, so the oil giant's performance over the
coming years will be a big driver of what happens in Russia as a whole.
Worryingly, the company's output has been steadily declining ever since it acquired TNK-BP in
2013. Production has fallen by 120,000 barrels a day, or 3 percent, since then.
Rosneft in Retreat

Rosneft's production has fallen by 120,000 barrels a day, or 3%. since December 2013
More than half of the decline has come at Yuganskneftegaz, the oil production business it
acquired from Yukos. Output there declined 5 percent in the period.
Two of Rosneft's other key legacy assets are also in decline: Samotlor, once Russia's most prolific
field, is pumping just 400,000 barrels a day -- 14 percent less than in 2013. Orenburgneft's
production also fell to less than 1.2 million barrels a day last month.
Even projects that had been helping Rosneft's output to increase are beginning to falter. Look at
production from the Vankor field, which has slipped 5 percent from its peak of about 445,000
barrels a day.
Vankor in Decline
Production from nearby fields may only offset falling output from Vankor
Goldman Sachs expects a slew of new projects -- among them the Suzun, Tagul, Yurubcheno-
Tokhomskoye and Messoyakha projects -- will increase output to 850,000 barrels a day by 2018
from 470,000 barrels a day last year.

But output from all of these fields will be limited by available pipeline capacity -- and it's far from
clear that there will be enough of it to support a 380,000 barrel-a-day increase in production over
the next two-and-a-half years.
Suzun and Tagul are two fields close to Vankor that Rosneft acquired when it bought TNK-BP.
Rosneft plans to ship the
combined output from
Vankor, Suzun and Tagul
through its 500,000 barrel-
a-day pipeline. That
suggests that the new
fields can't add more than
77,000 barrels a day to
production -- the difference
between the line's capacity
and Vankor's current
production. Any output
above that level would
merely be offsetting further
declines at Vankor.
There is a similar problem
at the Yurubcheno-
Tokhomskoye and
Kuyumbinskoye projects. Peak output from the fields, due to commence production this year and
next, could total about 400,000 barrels a day. But the pipeline that will connect them to the export
network will have an initial capacity of just 180,000 barrels a day. That's not expected to rise to
310,000 barrels until 2023, according to Goldman.
Meanwhile, Russia's crude oil production should be higher this year than last. Production in the
first half was up 180,000 barrels a day from the year-earlier period. But the figure for June was
80,000 down on January as output fell almost every month. That could make it more difficult to
sustain year-on-year growth in 2017.
Managing the decline in output from Russia's ageing fields in the swamps of West Siberia will be
crucial in determining whether the country will be able to boost production in coming years.
Nowhere is that more important than at Rosneft.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
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 25 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 26 July 2016 K. Al Awadi

New base energy news issue 893 dated 26 july 2016

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New base energy news issue 893 dated 26 july 2016