New base special 03 february 2014

Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained
in this publication. However, no warranty is given to the accuracy of its content . Page 1
NewBase 03 February 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
News Summary for this day
Saudi Arabia to boost Empty Quarter, South Ghawar & Jafurah shale gas
Etihad Rail signs MoU with ZonesCorp.
Dana Gas overcome setbacks with Kurdish & Egyptian governments
US shale no ‘game changer’ for LNG say Qatar energy minister.
What’s happing in US LNG Fueling station growth plans .
Gulf Petrochems exports on track to rise.
Keystone pipeline , Making head line in US Goverment Agenda
Abu Dhabi will be hosting the 4th Pipeline Integrity.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 03 February 2014 K. Al Awadi

Saudi Arabia to boost Empty Quarter, South Ghawar & Jafurah shale gas
http://www.2b1stconsulting.com/
The world largest company by the size of crude oil reserves, Saudi Aramco, is planning to award the front
end engineering and design (FEED) contracts for the gas central processing facilities to support the
development of the shale gas exploration – production in three regions of Saudi Arabia.
In 2013, Saudi Arabia was the fourth largest producer of natural gas in the world, but despite this strong
position it does not meet all its needs on the domestic market covered by crude oil at high costs.
In addition the vast majority of the
gas produced in Saudi Arabia is, so
called, associated gas, meaning that the
gas production in Saudi Arabia is
directly correlated to the oil production.
So far this close link between the
gas production and the crude oil
production was not an issue but some
game changers could impact heavily this
historical situation with major
consequences in the Kingdom.
Among these game changers the
development on fast track of the shale
oil in USA comes on the top, followed
by the restoration of the trading
relationships with the neighbor Iran and
the increasing production in Iraq could exercise some pressure on the production of crude oil in Saudi
Arabia to maintain an acceptable market price of the crude oil barrel for the producing countries.
In such a context, Saudi Arabia needs to develop its production on non-associated gas in order to supply its
power generation facilities running currently with crude oil and to provide the feedstock to its newly built
petrochemical industry designed around mixed crackers accepting ethane as well as naphtha.
To do so and despite all the environmental constraints, Saudi Aramco is prioritizing the development of the
shale gas because of the available reserves in the Kingdom.
Saudi Aramco to build three central processing facilities
If we consider that the USA may become self sufficient in crude oil by 2017, this term is given as the target
for Saudi Arabia to develop three shale gas fields:
- Empty Quarter
- Jafurah in the north
- South Ghawar in the Eastern Province
For these three shale gas fields, Saudi Aramco is planning to build three corresponding:

- Gas central processing facilities (CPF)
- Offsites and utilities
After a feasibility study completed in July 2013, Saudi Aramco is evaluating the offers for the FEED work
of these packages.
The bidders belongs to the short list of the
engineering companies qualified by Saudi
Aramco for the General Engineering Services
Plus (GES+) contracts:
- Jacobs Engineering (Jacobs)
- KBR
- Mustang Engineering (Mustang)
- SNC Lavalin
- WorleyParsons
Then Saudi Aramco had also qualified Foster
Wheeler, which was originally part of the
GES+ engineering services providers, and Fluor.
These Saudi Aramco projects are so much critical for Saudi Arabia that design work out-of-Kingdom will
be accepted from the bidders. In order to meet the deadline of 2017, Saudi Aramc is planning to award the
FEED contract on mid 2014 so that the engineering, procurement and construction (EPC) contracts could be
sanctioned on early 2015 for these Empty Quarter, Jafurah and South Ghawar gas central processing
facilities and offsites – utilities packages.

Etihad Rail signs MoU with ZonesCorp
Emirates News Agency, WAM
Etihad Rail, the developer and operator of the UAE's national railway network has signed a
Memorandum of Understanding (MoU) with ZonesCorp for the joint planning of railway and
logistics facilities within the Industrial City of Abu Dhabi (ICAD).
Etihad Rail CEO Dr. Nasser Al
Mansoori and ZonesCorp CEO
Mohammed Hasan Al Qemzi,
signed the MoU in the presence
of Nasser Ahmed Alsowaidi,
Chairman of the Department of
Economic Development,
Chairman of Etihad Rail, and
Chairman of the Higher
Corporation for Special
Economic Zones (ZonesCorp).
The MoU outlines the
collaboration between the two
parties to integrate the rail network and terminal within the ICAD IV industrial area.
The Abu Dhabi Emirate's largest multimodal terminal will be centred within ICAD IV to cater to
ICAD IV's surrounding industrial and logistics customers. Strategically located in close proximity to
Abu Dhabi City, major transportation gateways, and logistics hubs, ICAD IV and the rail terminal
within will increase industrial contribution to the Emirate's GDP and contribute to economic
diversification, in line with Abu Dhabi Economic Vision 2030 and UAE Vision 2021.
Upon completion, the Etihad Rail network, which will cater to both freight and passengers, will
span approximately 1,200 kilometres across the Emirates. It will connect urban and peripheral
communities, facilitate trade, open up communication channels and foster economic development
across all Emirates in the UAE. The network will also form a vital part of the GCC Railway Network,
linking the UAE to Saudi Arabia via Ghweifat in the west and Oman via Al Ain in the east.
About ZonesCorp :-
ZonesCorp is a dynamic industrial development organization located in the heart of Abu Dhabi. Launched
in 2004 by the Abu Dhabi Government, we are the largest operator of purpose-built industrial zones in
the United Arab Emirates. Within just ten years, ZonesCorp has helped shape Abu Dhabi’s industrial
landscape through the development of six world-class, fully integrated industrial zones that generate
almost half of the manufacturing GDP of the Emirate. Our zones currently house more than 600
manufacturing facilities that are home to some of the world’s leading global industrial players in a variety of
sectors. Building on our track record and reputation for excellence, ZonesCorp continues to develop unique industrial
cities, strategically positioned across the Emirate of Abu Dhabi. This expansion will further solidify ZonesCorp’s
position as the UAE’s manufacturing hub for years to come.

Dana Gas overcome setbacks with Kurdish and Egyptian governments
April Yee , www.thenational.ae/busines
Profits at Dana Gas rose to Dh128 million last quarter, a 12 per cent increase compared with the
same period the year before, thanks to ramped-up production in Egypt and fuel sales in the
Kurdish region of Iraq.
High-margin sales of liquefied petroleum gas enabled by a newly repaired loading facility in the
semi-autonomous
region are helping the
company to wait out
about Dh2.9 billion in
late payments from the
Egyptian and Kurdish
governments, the
Sharjah-based
producer reported
yesterday.
A tribunal has been
formed for its
international arbitration
case against the
Kurdistan Regional
Government (KRG),
the company
separately disclosed on the Abu Dhabi bourse yesterday.
“If you look at the actual production and performance of the company, despite the very difficult
operating environment in Egypt, the fact is that we’ve been able to grow that production in Egypt,
and we’re hopeful that we’ll be able to sustain that growth this year,” said Patrick Allman-Ward,
the chief executive of Dana.
Net profit for the year dropped 6 per cent to Dh571m, while overall production averaged 64,000
barrels of oil equivalent per day, an increase of 8 per cent on the year before.
Dana Gas, which launched arbitration against the KRG in October, said the government owed it
Dh1.9bn and had not made any “significant” payments since July. The company said it was still in
talks with the Egyptian government, which owed Dh1bn as of the end of last year.
Dana, which won a concession at Egypt’s North Al Arish block last year, said it was open to
collaborating with other UAE companies, such as Abu Dhabi National Energy (Taqa) and
Mubadala Petroleum, that have been evaluating investments in Egypt as part of a Ministry of
Foreign Affairs-led initiative.
“Obviously the support that the Emirati government has given to Egypt is very encouraging
because that allows the Egyptian government to pay the petroleum sector,” said Mr Allman-Ward.
“We’re always interested in investigating opportunities for cooperation.”
Shares of Dana Gas closed 2.13 per cent lower at Dh0.92 on the Abu Dhabi Securities Exchange
yesterday

US shale no 'game changer' for LNG, say
Qatar energy minister
By Andrew Critchlow
Mohammed bin Saleh Al-Sada says the US shale revolution will not change Qatar's strategy of becoming an
LNG superpower
Q: What future role does Qatar envisage in supplying gas long-term to the UK and what are the investment
opportunities this will create?
Al-Sada: "The UK is an important customer of Qatar’s LNG, and we expect it to remain as such,
particularly in light of the large investment we have made in the LNG re-gasification terminal at South
Hook near Milford Haven. This was Qatar’s first participation in a foreign downstream terminal, and is
viewed as one of the major contributors to the UK’s energy diversity.
South Hook LNG Terminal, part of the Qatargas 2 integrated Value
Chain, is one of the largest Liquefied Natural Gas re-gasification
terminals in Europe. It plays a major role in strengthening the strategic
partnership between the UK and Qatar, one of the most reliable energy
suppliers. It provides the UK with a significant proportion of its natural
gas requirements, and has the capacity to process 15.6 million tonnes of
LNG annually, representing up to 20 per cent of the UK’s natural gas
demand.
A new Long-term deal was recently agreed to supply the UK with 3 million tonnes of Qatari LNG per year.
This is seen as vital for the future energy security of the UK, contributing to energy diversity of supply in
order to meet UK’s energy requirements, and offering investment opportunities to both parties.
We are also evaluating a proposal to install a combined heat and power plant at South Hook in order to use
the available heat from the re-gasification process to generate electricity for the grid."
Q: There is a great deal of concern in the UK over rising electricity and energy prices do you think the
country is paying a fair price for natural gas or is gas still cheap compared with other major fuel sources?
Al-Sada: "As a power source, gas remains extremely attractive economically. It is efficient in generating
power, and it is very clean compared to coal and oil. Price-wise it remains significantly cheaper than oil in
the UK on a thermal basis."
Q: What kind of opportunities in the UK energy industry is Qatar interested in pursuing? Would you look at
downstream ventures in terms of distribution/marketing?
Al-Sada: "Qatar is certainly interested in various investment opportunities in the UK, particularly in the
LNG and petrochemical businesses. Our international equity participation is looked after by Qatar
Petroleum International (QPI), which is Qatar Petroleum’s main vehicle for international activities, and
which is entrusted with making strategic commercial investments in the energy sector worldwide. The
company aims to acquire assets through exploration & production projects and engage in strategic
partnerships and business investments worldwide in the fields of petrochemicals, gas, power, refineries and
LNG receiving stations.

QPI is always interested in the wholesale selling and transportation of LNG to the UK, and that is Qatar’s
strength as a major LNG producer.
The distribution and marketing of downstream products is currently the responsibility of Qatar Chemical
and Petrochemical Marketing and Distribution Company (Muntajat), which holds exclusive rights to
purchase, market, distribute and sell Qatar's production of chemical and petrochemical regulated products to
the global market."
Q: How has the development of shale gas in the US changed Qatar’s long-term strategy in terms of gas?
Al-Sada: "On the long term, our strategy remains essentially unchanged, thanks to our flexibility and our
ability to respond to changes in the global gas market.
When we embarked on the massive expansion of our LNG
business some 20 years ago, a key objective was to ensure we
could respond to changes in the global gas market. This was
essential, in order for us to mitigate the risk exposure of hub-
based LNG prices such as in the US. This is something no one
else was willing to do at that time. We deliberately set out to
have the flexibility to vary the geographic balance of our sales.
Therefore, we do not consider the US shale gas revolution to be
a game changer but rather a validation of Qatar’s strategy. Global
gas demand has been growing consistently and we have had the flexibility to re-plan our LNG marketing to
meet growing demand in Asia and elsewhere.
Qatar’s role as an undisputed leader in the global energy market is set to remain for years to come."
Q: What are the current plans concerning the next round of development of the North Field and what part
could British companies hope to play?
Al-Sada: "We have achieved our initial strategy with respect to our North Field, which include achieving
our target of 77 million tonnes of LNG export capability, and supplying all the needs of local power and
industrial consumers. The commissioning of the Barzan gas project, starting in 2014, will enable us to meet
growing local demand for at least the next 20 years.
Currently, the major objective for the North Field is to conduct a comprehensive evaluation of all the
reservoir, well data and models in order to develop the optimum strategy for the long-term future of the
field.
But even though the North Field will be at plateau production, we still expect to spend around $3 billion of
capital expenditure over the next 5 years, excluding Barzan, and we hope that British companies will want
to compete for the contracts to deliver these projects."
Q: Could a natural gas version of OPEC work as a mechanism to provide stability to global gas markets?
Al-Sada: "A gas version of OPEC would not work. This is because the industry structures for gas markets
and oil markets are very different in terms of supply commitment, costs, liquidity, and competing fuels.
We currently have the Gas Exporting Countries Forum, which is a gathering of producers working together
to advance the gas industry, and to promote the use of gas and the development of resources.

The Forum has no provisions or intentions to influence or interfere in gas markets, including production
volumes and prices."
Q: What structure do you advocate in terms of gas pricing should this be somehow linked to oil?
Al-Sada: "The international natural gas trade is geographically divided between three regional markets: the
US, Europe (which is supplied mainly by pipelines), and Asia (which is supplied by LNG).
These regional markets determine natural gas prices differently, depending on the sources of supply,
geographical and political factors, and the level of market liquidity and maturity.
The discussion about the relationship between the prices of natural gas and oil is not new, however it has
intensified over the last few years as the ratio of oil to natural gas prices in certain markets reached high
levels and distorted the overall market stability.
As for LNG pricing mechanisms, Qatar has always supported the view that long term contracts based on oil
indexation are a more predictable and reliable mechanism for all concerned in the industry. What the
industry needs is a stable and fair price to justify the level of investment needed to meet future demand for
natural gas. In our view, it is the investments we make today that will determine the resources to be
available in the market tomorrow."
Q: How much of a concern is the security of LNG supply routes out of the Gulf via the Strait of Hormuz?
Are there contingencies in place if it were shut off for any reason?
Al-Sada: "I believe that no single party has an interest in closing the Straits of Hormuz, through which 17
million barrels of crude oil is shipped every day. Throughout several decades of geo-political turmoil and
three Gulf wars, never was this strategic waterway ever closed.
Any conflict that would hinder the free flow of energy supplies does not concern us in this region alone, but
would concern the entire world, which fully understands the ramifications of any action affecting the
straits.The government of the State of Qatar maintains a policy of seeking peaceful resolution to differences
and conflicts in this region and on the global level. This, among other things, will mitigate any risks or
dangers posed to international trade routes, particularly energy supplies."

Q: What are the opportunities for oil in Qatar will you be opening up new acreage?
Al-Sada: "Qatar has been and remains a relatively small producer of crude oil, compared to its neighbors.
During the 1970s, Qatar's oil production peaked at around 500,000 bpd. As fields aged, production started to
decline until it reached around 300,000 bpd in 1987. In the early 1990's, a number of production sharing
agreements were signed with various international oil companies which resulted in Qatar's total crude oil
production to exceed 800,000 bpd in 2006, before it settled in 2008 at its current level of 700,000 bpd.
The results of exploration activities were initially disappointing and some exploration blocks were
relinquished for lack of potential. However, during the last few years, a number of new exploration and
production sharing agreements were signed to explore for both oil and gas. QP is currently evaluating the
possibility of opening up new areas for further exploration.
Although Qatar's petroleum production has grown steadily for many years, its oil fields are maturing. We
look to offset further declines by the use of Improved and Enhanced Oil Recovery Techniques, which are
currently being used in several fields.
A major strategy rethink took place on the fields under Qatar Petroleum's direct operation. Major reservoir
and field-wide studies have been initiated to re-assess the reserves, and the long term production prospects
for each field. Re-development will be pursued in light of the outcome of the studies."
Q: Qatar has been an innovator in terms of LNG and most recently GTL (BSE: GTL.BO - news) will we see
more in terms of making strategic investments in terms of how you monetize the gas downstream?
Al-Sada: "Qatar Petroleum has embarked on an ambitious plan to further develop Qatar’s downstream
sector, consolidating its position as a major player in the industry. Our long term hydrocarbon development
strategy is opening new opportunities for further downstream development, which includes raising Qatar’s
petrochemical output to 23 million tones per year by 2020.
We are investing in mega-expansion schemes that are designed to add further value to our natural
hydrocarbon wealth. Such projects include Al-Karaana Petrochemical Project, a QP-Shell (LSE: RDSB.L -
news) joint venture. This world-scale steam cracker will mainly produce mono-ethylene glycol, LAO and
OXO alcohol, and is projected to start in 2018.
Another project to mention is AL-Sejeel, a JV between QP and QAPCO, which will use ethane, butane and
GTL naphtha as feedstock to produce Ethylene (1.5 million tonnes per year), High Density Polyethylene (1
million tonnes per year), Linear Low Density Polyethylene (550 thousand tonnes per year), and Poly
Propylene (540 thousand tonnes per year).
Qatar’s downstream development includes the Gasoline and Aromatics project (with a capacity of 1 million
tonnes per year of Paraxylene, 500,000 tonnes per year of Benzene, and 60,000 barrels per day of gasoline);
the Linear Alkyl Benzene (LAB) Project (with a capacity of 100,000 metric tons per year of LAB); and the
Butadiene Synthetic Rubber plant (with an approximate capacity of 170,000 tonnes per year of butadiene
and rubber derivatives).
The Laffan Condensate Refinery Project Phase 2 (LR2) is one of the important downstream projects in
Qatar. The new condensate refinery is similar to the existing LR1 refinery, and has a processing capacity of
146,000 barrels per day. The additional product capacity will feed other downstream projects, in addition to
increasing the quantity of refined products like diesel and jet fuel for the local consumption as well as for
exports."

What’s happing in US LNG Fueling station growth plans
BY NICHOLA GROOM - (REUTERS) -
Blu LNG, one of the biggest names in the move to wean U.S. trucks off diesel onto natural gas, has
laid off 20 percent of its staff, ousted several senior executives and slowed down development of
fueling stations as it waits for more truckers to embrace the switch to the cheap and cleaner-
burning fuel.
The move, confirmed by the company's Chief Executive Officer, Merritt Norton, and other people familiar
with the situation, marks an important pullback in a nascent sector that is expected to improve U.S. energy
security, lower transportation costs and create jobs.
Just three days ago, President Barack Obama threw his weight behind the industry in his State of the Union
speech. "Congress can help by putting people to work building fueling stations that shift more cars and
trucks from foreign oil to American natural gas," Obama said.
Blu a year ago pledged to build dozens of liquefied natural gas fueling stations along U.S. highways in 2013
with the help of millions of dollars from ENN Group, one of China's largest private companies.
But fueling stations need customers, and trucks that run on natural gas have been slower to hit the market
than many anticipated and are still far more expensive than their diesel equivalents, making even the allure
of far cheaper fuel difficult to swallow for many fleet owners. "This year is a year of trying to let the trucks
catch up to us," Blu CEO Norton said in an interview.
Regarding Obama's remarks this week, Blu said it appreciated the president's comments and would like to
see a federal effort to bring the fuels tax on LNG in line with that of diesel, which is far higher. The
company also said it would like to see a cap on the federal tax for new natural gas trucks, adding that any
incentives should be directed to vehicles.

Blu's retreat is coming to light months after Clean Energy Fuels Inc, the market leader in natural gas fueling
and backed by Texas billionaire T. Boone Pickens, said it had slowed development of LNG stations due to
truck availability.
There are many reasons to believe in
the market for natural gas trucks.
Companies like shipper United Parcel
Service Inc and consumer products
giant Procter & Gamble are amassing
fleets of them during a boom in U.S.
shale gas production that has kept
prices on the domestic fuel low.
IMPATIENCE OVERSEAS
Blu, formed in 2012 as a joint venture
between ENN and a small Utah
company called CH4 Energy Corp, has
built about 25 permanent stations
where trucks powered by LNG can refuel - about half the number it pledged to build in 2013, it said.
The company, whose legal name is Transfuels LLC, also appears to have tempered its longer-term
expectations. Originally, it hoped to spend more than $1 billion to build 500 natural gas fueling stations
within three years, according to sources with knowledge of the company's plans at that time.
This week Norton predicted the company will have "in the low hundreds" of both permanent and so-called
terminal stations by 2017. Terminal stations are semi-portable, and Blu is in the process of delivering 15 to
18 of them to customers so they can refuel their fleets themselves.
But ENN, which has a majority stake in Blu and controls its board of directors, last year grew increasingly
impatient with the slow pace of the market's development, according to sources close to the company who
said expectations were too high at the home office in China. That led to the ouster over the last three months
of not only key executives in charge of finance, sales and marketing, and business development, but also its
Chinese chairman, Jun Yang.
Norton would not comment on the dismissal of people from specific positions, but said "there were some
changes that our board wanted to make around how we were going to market." The company has identified
a new chairman but would not say who it is until the person's required working documents are in order. The
other vacant management positions are being filled, Norton said.
ENGINES SLOW TO REV UP
Station development has slowed down, Norton said, in part because of issues rolling out natural gas engines
for trucks.
At the end of last year engine maker Westport Innovations Inc pulled the plug on a 15-liter natural gas
engine that Norton said was the best option for trucks hauling heavy loads across mountainous terrain in the
Western United States. To make matters worse, Cummins Inc this month put plans for its own 15-liter
natural gas engine on ice indefinitely, saying "the timing of the adoption of natural gas in long haul fleets
preferring a 15-liter engine is uncertain."

An eagerly anticipated 12-liter engine by Cummins and Westport's joint venture hit the market last year
after some delay, but it is better suited to haul somewhat smaller loads on flatter terrain. As a result, Blu is
refocusing on the Midwest and Southeast markets, Norton said, and was therefore forced to slash 20 percent
of its staff. The Salt Lake City-based company still has 170 employees.
In addition, Westport spokeswoman Nicole Adams said most of the 12-liter engines that have been ordered
so far are configured for compressed natural gas (CNG) as opposed to LNG, the fuel Blu and rivals Clean
Energy Fuels and Royal Dutch Shell Plc are banking will eventually be the fuel of choice for heavy-duty
trucks running on natural gas. LNG trucks are faster to refuel, can go farther on one fillup, and have lighter
storage tanks than CNG trucks.
Clean Energy has built 80 public LNG fueling stations along U.S. highways, and it too, has slowed down
development to account for a delay of about a year in its expectations for natural gas truck availability. Only
about 22 of those stations are open for business, though the company opens a new one about once every 10
to 14 days as fleets of LNG trucks are delivered, spokesman Gary Foster said. Shell plans to open its first
LNG fueling station this year and is planning about 100 such stations over multiple years, according to a
spokeswoman.
The big issue long term, however, is cost, Norton said. A natural gas truck can run between $40,000 and
$80,000 more than an equivalent diesel vehicle. "Customers are saying the trucks need to cost less for them
to really purchase large numbers of trucks," Norton said. Within three years he expects an LNG truck to cost
the same as a diesel truck. With equivalent truck costs and lower prices for natural gas, Norton said, "it's
pretty hard for diesel to compete."

Gulf petrochems exports on track to riseApril Yee www.thenational.ae/business
Arabian Gulf petrochemical exports should increase by “a couple billion” dollars this year as Abu Dhabi completes an
output expansion and a trade agreement takes effect, said a regional industry group.
GCC producers export about US$53 billion worth of the raw materials for plastics a year, mainly
to manufacturing hubs in the East.
The Bali Package, a trade agreement to lower
barriers to trade such as import tariffs and
domestic subsidies, will also benefit Gulf
producers by cutting clearance costs and
shrinking lead times, cutting overall costs by 5
per cent, estimated Abdulwahab Al Sadoun, the
secretary general of the Dubai-based Gulf
Petrochemicals & Chemicals Association.
“We’re very pleased and excited about this and
hopefully this will be implemented in a good
spirit,” said Mr Al Sadoun. “Once this Bali
accord is implemented, we do expect that there
will be an increase of exports in terms of value
by roughly around a couple billion US dollars.”
The agreement will save the global economy
$400bn to $1 trillion by cutting the cost of trade
by as much as 15 per cent, according to the
World Trade Organisation, which is due to ratify
the agreement in July. In the petrochemicals
industry, logistics costs stemming from shipping
and customs clearance fees contribute 30 per
cent of producers’ costs, said the GPCA.
The core of the increase in GCC exports will
come from Borouge, the joint venture between
Abu Dhabi and Austria’s Borealis that is
doubling its production capacity to 4.5 million
tonnes a day from 2.5 million tonnes. It has
opened several more offices in Asia as it seeks
to increase its customer base by threefold to
find buyers for the extra polymers amid slower
economic growth in China and increased
competition from a revival of North American’s
industry driven by shale.
Its main targets are in automotives and infrastructure, riding on the urbanisation of China’s
population and the growth of population centres in western China, the company’s chief executive
has said. Borealis is owned by International Petroleum Investment Company (Ipic) and Austria’s
OMV, which is in turn part-owned by Ipic.

Last month, Saudi Basic Industries Corporation, the world’s biggest petrochemicals group by
market value, reported a fourth-quarter profit of 6.16 billion Saudi riyals (Dh6.03bn), a 5.7 per cent
increase on last year’s figure of 5.83bn riyals. “Their margins were much lower, which means they
were impacted by lower earnings,” said Iyad Ghulam, a research analyst at NCB Capital in
Riyadh.
Sabic has been hit by lacklustre demand for petrochemicals as Europe’s economy grapples to
overcome a financial crisis. Revenues at Sabic, which is cutting jobs and closing some plants in
Europe, stood unchanged at 189bn riyals last year.
“We expect 2014 results to improve as there are forecasts of solid improvements in prices,”
Bloomberg quoted the chief executive Mohammed Al Mady as saying in Riyadh yesterday. The
company plans to expand its geographic footprint to markets in North America and China.
“We have a desire to invest in North America, as we like to participate in markets that present a
challenge to us,” Mr Al Mady said. “We certainly want to invest in China as well, since it has the
biggest market globally.”
What's inside the Bali Package?
The Bali Package is a trade agreement that came out of the 9th Ministerial Conference of the World Trade
Organization in Bali, Indonesia on 3—7 December 2013. It represents the first major agreement among
WTO members since it was formed in 1995. The Bali Package includes trade facilitation, agriculture, and
development issues. Trade facilitation is a multilateral deal to simplify customs procedures by cutting red
tape and speeding up port clearances. Agriculture covers food security in developing countries while
development issues focus on preferential treatment and market access for least-developed countries (LDCs)
and developing countries.

Keystone pipeline , Making head line in US
Goverment Agenda
(Reporting by Timothy Gardner – Reuters )
Pressure for President Barack Obama to approve the Keystone XL pipeline increased after a State
Department report played down the impact it would have on climate change, irking environmentalists
and delighting the project's proponents.
But the White House signaled late on
Friday that a decision on an application
by TransCanada Corp to build the $5.4
billion project would be made "only
after careful consideration" of the report,
along with comments from the public
and other government agencies.
"The Final Supplemental Environmental
Impact Statement includes a range of
estimates of the project's climate
impacts, and that information will now
need to be closely evaluated by
Secretary (of State John) Kerry and other
relevant agency heads in the weeks
ahead," White House spokesman Matt Lehrich said. The White House comment came after proponents of
the pipeline, which would transport crude from Alberta's oil sands to refineries on the U.S. Gulf Coast,
crowed about how the State Department report cleared the way for Obama to greenlight the project.
The agency made no explicit recommendation. But the State Department said blocking Keystone XL - or
any pipeline - would do little to slow the expansion of Canada's vast oil sands, maintaining the central
finding of a preliminary study issued last year.
The 11-volume report's publication opened a new and potentially final stage of an approval process that has
dragged for more than five years, taking on enormous political significance.
With another three-month review process ahead and no firm deadline for a decision on the 1,179-mile
(1,898-km) line, the issue threatens to drag into the 2014 congressional elections in November.
Obama is under pressure from several vulnerable Democratic senators who favor the pipeline and face re-
election at a time when Democrats are scrambling to hang on to control of the U.S. Senate. The project
looms over the president's economic and environmental legacy.
Canada's oil sands are the world's third-largest crude oil reserve, behind Venezuela and Saudi Arabia, and
the largest open to private investment. The oil sands contain more than 170 billion barrels of bitumen, a tar-
like form of crude that requires more energy to extract than conventional oil.
Obama said in June that he was closely watching the review and said he believed the pipeline should go
ahead "only if this project does not significantly exacerbate the problem of carbon pollution."

NOT OVER YET
The report offered some solace to climate activists who want to stem the rise of oil sands output. It
reaffirmed that Canada's heavy crude reserves require more energy to produce and process - and therefore
result in higher greenhouse gas emissions - than conventional oil fields.
But after extensive economic modeling, it found that the line itself would not slow or accelerate the
development of the oil sands. That finding is largely in line with what oil industry executives have long
argued. "This final review puts to rest any credible concerns about the pipeline's potential negative impact
on the environment," said Jack Gerard, head of the oil industry's top lobby group, the American Petroleum
Institute.
The optimism was echoed by the chief executive of TransCanada, and Canada's Natural Resources Minister
Joe Oliver, who said he hoped Obama would approve the project in the first half of 2014. U.S. Secretary of
State John Kerry will consult with eight government agencies over the next three months about the broader
national security, economic and environmental impacts of the project before deciding whether he thinks it
should go ahead.
The public will have 30 days to comment, beginning next week. A previous comment period in March
yielded more than 1.5 million comments. Kerry has no set deadline. The open-ended review made some
pipeline supporters nervous. "The administration's strategy is to defeat the project with continuing delays,"
said Republican Senator John Hoeven of North Dakota, where the oil boom has boosted truck and rail
traffic.
Some North Dakota oil would move on the pipeline, designed to take as much as 830,000 barrels of crude
per day from Hardisty, Alberta, to Steele City, Nebraska, where it would meet the project's already complete
southern leg to take the crude to the refining hub on the Texas Gulf coast.
MORE REVIEW AHEAD
The State Department's study found that oil from the Canadian oil sands is about 17 percent more
"greenhouse gas intensive" than average oil used in the United States because of the energy required to
extract and process it. It is 2 percent to 10 percent more greenhouse gas intensive than the heavy grades of
oil it replaces.
The Sierra Club, an environmental advocacy group, said the report shows the pipeline would create as much
pollution each year as the exhaust from almost 6 million cars - evidence that it said will be hard for Obama
to ignore. "Reports of an industry victory on the Keystone XL pipeline are vastly over-stated," said Michael
Brune, the group's executive director.
The study found oil sands development could be curbed if pipelines were not expanded, oil prices were low,
and rail shipping costs soared. The study examines data from a 2010 pipeline spill in Michigan, where more
than 20,000 barrels gushed into the Kalamazoo River system. Pipeline operator Enbridge Energy Partners
was ordered last summer to do more to dredge up oil from the bottom of the river.
(Additional reporting by Thomas Ferarro and Timothy Gardner; Editing by Peter Henderson, Jonathan Leff,
Grant McCool, Mohammad Zargham and Lisa Shumaker)

Major findings of the U.S. Keystone XL environment study
The Obama administration's environmental review of the Keystone XL pipeline issued on Friday said
the project would not likely speed the development of Canada's oil sands, essentially discounting one
the major concerns of the duct's opponents.
U.S. Secretary of State John Kerry is expected to make the final decision on TransCanada Corp's 830,000
barrels per day pipeline later this year after eight federal agencies weigh whether Keystone is in the
country's national security interest.
Below are major findings of the State Department's 11-volume final environmental review it issued on
Friday.
OIL SANDS DEVELOPMENT
A single project like the Keystone XL pipeline will only speed up the pace of development of Alberta's oil
sands under a very narrow condition, the report said.
Only if U.S. oil prices fell to around $70 a barrel, about $27 less than today's price, there were long-term
constraints on new pipelines being built, and if there were higher transportation costs as a result, "there
could be a substantial impact on oil sands production levels," the study said. Essentially, the report confirms
the findings of the State Department's draft study released in March that said the oil will find its way to
market whether or not Keystone is built.
EMISSIONS FROM CANADA'S OIL SANDS
Due to the energy-intensive production of the oil sands, Canadian crude emits about 17 percent more
greenhouse gases than average oil refined in the United States, the study said. In addition, Canadian crude is
about 2 to 10 percent more greenhouse gas intensive than heavy oil from Mexico and Venezuela currently
refined in Texas and Louisiana.
The study did not conclude that the pipeline would not significantly contribute to greenhouse gas emissions.
But it does say that trains, which could be used more to transport the oil if Keystone is not built, pollute
more than pipelines.
BURYING BEETLE, ENDANGERED SPECIES
The U.S. Fish and Wildlife Services identified 11 federally protected species that could be affected by the
pipeline. The American burying beetle is the only species that is likely to be hurt by the project, the study
said. Government workers have taken steps to remove populations of the beetles from the 875-mile path of
the proposed pipeline through the middle of the country.
SPILLS
Oil spills from Keystone could reach groundwater supplies. If oil from a large spill enters a river or a lake
the extent of the spill could become "very large, potentially affecting soil, wildlife, and vegetation," the
study said. Because Canadian oil is heavy, sinking oil can become deposited in a river or stream and be a
continual source of oil release over time, it added.

Abu Dhabi will be hosting the 4th
Pipeline Inteqrity
About the Workshop:
Pipeline Integrity has become an integral issue especially with pipelines reaching their
expected or exceeding design life. Extensive processes need to be followed to make sure the
pipelines perform at their optimum. Highly complex and stringent inspection and integrity
assessment techniques are required to be implemented to make sure the pipelines are in a
healthy shape.
This workshop will uncover practical experiences from leading pipeline operators globally, and
showcase the latest innovations and technologies to allow operators to cost effectively
manage and mitigate ageing pipeline problems. It is undoubtedly the region’s best platform
for pipeliners to collate their issues and work through solutions through extensive
brainstorming with leading NOC’s, IOC’s, technology solution providers and consultants.It’s
aims are, "To promote the knowledge of pigging by providing a channel of communication
between the members themselves, and with users and other interested parties".
Practical Brainstorming Sessions:
The workshop is structured to provide the participants with an opportunity to engage, discuss
challenges and find solutions to some of the most pressing situations faced by the industry
today.
For further details see attached file with in the email .

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil &Oil &Oil &Oil & Gas sector. Currently working asGas sector. Currently working asGas sector. Currently working asGas sector. Currently working as
Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical 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 sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were sthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationspent as the Gas Operationspent as the Gas Operationspent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulof gas pipelines, gas metering & regulating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supplyating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for
the local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gasthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andConferences held in the UAE andConferences held in the UAE andConferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 03 February 2014 K. Al Awadi

New base special 03 february 2014

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