NewBase 03 May-2023 Energy News issue - 1616 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 03 May 2023 No. 1616 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Egypt: OPEC Fund wins award for Egypt’s 1.95 GW
South Helwan Power Plant
Utilities Middle East
The OPEC Fund for International Development has been awarded the first-ever “Abdlatif Y. Al-
Hamad Development Award in the Arab World” for its co-financing of the South Helwan Power Plant
in Egypt, one of the largest power projects in the region.
The award was presented during the Joint Arab Financial Institutions’ 2023 annual meetings in
Morocco. OPEC Fund Director-General Dr. Abdulhamid Alkhalifa participated in the meetings to
engage with member and partner countries and to attend a high-level policy roundtable on “Climate
Finance to Achieve Sustainable Transformation”.LN
The success of the South Helwan project, which has a total capacity of 1.95GW and created 4,000
jobs during construction, demonstrates the benefits of cooperation between development partners.
ww.linkedin.com/in/khaled-al-awadi-80201019/
The success of the South Helwan project, which has a total
capacity of 1.95GW and created 4,000 jobs during
construction, demonstrates the benefits of cooperation
between development partners.

The OPEC Fund partnered with the Arab Fund for Economic and Social Development, the Islamic
Development Bank, the Kuwait Fund for Arab Economic Development, the World Bank, and the
Government of Egypt to support the project.
It generates electricity supporting vital economic sectors and private households, with 95% of its
power being derived from natural gas.
Dr. Alkhalifa stated that the success of the South Helwan project is an example of how real progress
can be made by joining forces, as the Arab world is in great need of investment and capacity building
to achieve the 2030 Sustainable Development Goals.
He also highlighted the productive collaboration with other multilateral development banks and
cooperation with the Arab Coordination Group partners as contributing factors.
Dr. Rania Al-Mashat, Egypt’s Minister of International Cooperation, expressed gratitude towards the
OPEC Fund for its support and effective partnership in enhancing development efforts, particularly
in the energy and electricity sectors.
She added that the South Helwan project is an example of successful cooperation between
development partners, with various Arab financing institutions contributing to its financing.
Egypt aims to strengthen partnerships with multilateral and bilateral development partners to
achieve sustainable development goals and the 2030 National Development Agenda.
The OPEC Fund has a strong track record of investing in critical sectors across the Middle East and
North Africa, providing over US$4 billion in development financing to the region to date, excluding
its member countries.

U.A.E: ADNOC Gas signs LNG supply deal with TotalEnergies
SAWYA + NewBase
ADNOC Gas plc on Monday announced a three-year supply agreement valued at up
to $1.2 billion with the French multi-energy company TotalEnergies Gas and Power
Limited for the export of liquefied natural gas (LNG).
Under the terms of the agreement, through its subsidiary, ADNOC Gas will supply
TotalEnergies LNG, which will be delivered to various export markets around the
world.
TotalEnergies Gas and Power Ltd. is a subsidiary of TotalEnergies, a French
multinational energy company, which has operated in the UAE for more than 80 years.
The French company said the additional volumes "will strengthen our global LNG
portfolio, our ability to supply the growing Asian markets, and our ambition to
accompany our customers in their energy transition.”
The three-year contract is expected to commence in 2023.
ADNOC Gas has access to 95% of the UAE's natural gas reserves, estimated to be
the seventh largest globally. It supplies more than 60% of the UAE's gas needs. Early
this year, raised $2.5 billion in one of the biggest IPOs globally.
The three-year contract is expected to commence in 2023
ADNOC LNG plant in DAS Island , Abu Dhabi 2023

Adnoc to build new low-carbon LNG plant in Ruwais
Adnoc has said its planned low-carbon liquefied natural gas project will move forward in Al Ruwais
Industrial City in Abu Dhabi. The plant will run on renewable and nuclear grid power, company says
The proximity of Ruwais to Adnoc's current and future projects, as well as its established supplier
base, were key factors in the decision, the state-run energy company said on Tuesday.
“As an operational hub for Adnoc and its operating companies, the selected location offers
significant synergies and existing infrastructure that will be leveraged to deliver project efficiencies,”
the company said.
The Ruwais plant, which is
designed with electric-
powered processing facilities,
will run on renewable and
nuclear grid power, making it
one of the lowest carbon
intensity LNG projects in the
world, Adnoc said.
Ruwais, which is at the centre
of Adnoc’s downstream
ambitions, has been
earmarked for a multibillion-
dollar expansion that will
expand its refining capacity to
1.5 million barrels per day by
2025, making it the largest
refiner in terms of capacity.
Adnoc Gas, a unit of Adnoc,
has access to 95 per cent of
the UAE's natural gas reserves, estimated to be the seventh largest globally. It also supplies more
than 60 per cent of the country's gas needs.
On Monday, Adnoc Gas signed a three-year supply agreement with TotalEnergies Gas and Power,
a subsidiary of France’s TotalEnergies, to export LNG.
Europe, which is looking to reduce its reliance on Russian gas, has been boosting LNG imports
from the US and the Gulf.
In February, Adnoc and German power company RWE announced the delivery of the first shipment
of the supercooled fuel from the UAE to Germany.
In November, QatarEnergy signed two sales and purchase agreements with US oil and gas
producer ConocoPhillips to deliver up to two million tonnes per annum (mtpa) of LNG to Germany.
Global LNG trade reached a high of $450 billion in 2022 amid a surge in European demand as the
region reduced its reliance on Russian gas imports, according to the International Energy Agency.
Despite a rise in demand, LNG supply grew only 5.5 per cent last year, mostly due to maintenance
at large export terminals and as Freeport LNG’s Texas-based plant — one of the world’s largest
export centres of the supercooled fuel — was shut down after a fire in June 2022.

U.A.E: Al Tayer receives Deputy Prime Minister of Turkmenistan
Khoder Nashar & Muhammad Aamir, WAM (Emirates News Agency)
Saeed Mohammed Al Tayer, Chairman of Dragon Oil, welcomed a high-level delegation from the
Republic of Turkmenistan, headed by Ashyrguly Begliyev, Deputy Prime Minister of Turkmenistan
in Dubai.
The delegation comprised Haji Muhammad Raja Muradov, Minister of Energy of Turkmenistan,
Batyr Amanov, Chairman of the Board of Directors of Turkmen Gas, Sardar Mamed Jarajayev,
Ambassador
Extraordinary and
Plenipotentiary of
Turkmenistan to the
UAE, Jovanch
Agajanov, Chairman
of the Board of
Directors of
Turkmennebit, and
Nyazly Nyazlyyev,
Chairman of the State
Concern
(Turkmenhimiya).
Also in attendance
were Ahmed Buti Al
Muhairbi, Ahmed
Sharaf, Hussain
Lootah, and Qusay Al
Shared, Board
Members of Dragon
Oil Company, and Ali Rashid Al Jarwan, CEO of Dragon Oil.
During the meeting, the parties discussed various matters of mutual interest, including investment
in the oil and gas sector, joint projects, and opportunities for future cooperation. The Deputy Prime
Minister of Turkmenistan praised Dragon Oil's efforts in developing the energy sector and
emphasised the importance of continuing the cooperation to achieve common goals.
Al Tayer expressed his happiness with the meeting, appreciating the relations between the UAE
and Turkmenistan and highlighting the investments made by Dragon Oil. The company has been
active in oil and gas exploration in the Caspian Sea for over 20 years and has invested $8 billion in
Turkmenistan since 2000.
The company plans to invest an additional $8 billion by 2035, in light of the renewal of the production
partnership in Turkmenistan for an additional 10 years, starting from 2025.
Al Tayer emphasised that cooperation between Dragon Oil and Turkmenistan has a positive impact
on the energy industry in the region, pointing to Dragon Oil's commitment to enhancing its presence
in Turkmenistan by supporting current expansion plans and launching more sustainable discoveries
in this promising market, as well as creating long-term value that benefits everyone.
He also noted that relations between the UAE and Turkmenistan are developing significantly, with
new investments contributing to developing and consolidating relations between the two sides in
various economic and investment fields.

Saudi Aramco In Talks With Sinopec and Total on $10 Billion
Saudi Gas Deal .. Bloomberg + NewBase
Sinopec and TotalEnergies SE are among companies holding talks to invest in the Jafurah
development in Saudi Arabia, according to people familiar with the matter, as the kingdom seeks to
exploit one of the world’s largest untapped gas fields.
The Chinese and French energy giants
are in separate discussions with Saudi
Aramco about the plans that may include
the construction of facilities to export the
fuel as liquefied natural gas, some of the
people said, asking not to be identified
because the matter is private. Aramco is
seeking to raise a total of around $10
billion for the projects, the people said.
Saudi Aramco has been seeking equity
investors that could help fund midstream
and downstream projects at its more than
$100 billion Jafurah gas development in
the east of the kingdom. The state-
controlled company has been reaching
out to private equity firms and other large
funds that invest in infrastructure to offer
stakes in assets such as carbon capture
and storage projects, pipelines and
hydrogen plants, Bloomberg reported in
December. Investment bank Evercore
Inc. is advising Aramco on the plans.
Talks are ongoing and no final decisions have been made, the people said. A spokesperson for
TotalEnergies declined to comment, while a representative for Aramco didn’t immediately respond
to a request for comment. China Petroleum & Chemical Corp., as Sinopec is officially known, didn’t
respond to emailed queries during China’s Labor Day holiday.
The war in Ukraine has led to a surge in demand for natural gas, led by European nations that
traditionally got their supplies from Russia. This has led to Gulf states embarking on ambitious plans
to expand their gas output.
Saudi Arabia has some of the biggest gas reserves in the world, but has barely exploited them in
the past. Now, Jafurah is a key part of Riyadh’s strategy to diversify its exports beyond oil. The field
is estimated to hold 200 trillion cubic feet of gas, and Aramco expects to begin production there in
2025, reaching about 2 billion standard cubic feet per day of sales by 2030.
A decision to build an LNG export terminal would mark a u-turn for Aramco. The company has
recently said that the majority of the gas from Jafurah and other fields would be used for the
domestic market and to make blue hydrogen.
Since Aramco was fully nationalized in 1980, most foreign investment in the kingdom’s energy
industry has been restricted to downstream assets such as refineries and petrochemical plants. In
the past, Aramco has struck joint ventures with firms including Shell Plc and TotalEnergies for the
exploration and drilling of natural gas within its borders.

U.S: New York poised to pass first statewide law banning
natural gas in new buildings
CNBC - Emma Newburger@EMMA_NEWBURGER
New York state is poised to become the first state in the country to pass a law banning fossil fuel
combustion in most new buildings, getting rid of gas stoves, furnaces and propane heating in favor
of climate-friendly appliances like heat pumps and induction stoves.
The law would likely take effect in 2026 for most new buildings under seven stories and in 2029 for
larger buildings. Following weeks of negotiations, Gov. Kathy Hochul and state lawmakers included
the ban in the $229 billion state budget deal, with a final vote to enact the law anticipated this week.
The sun sets on the skyline of midtown Manhattan and the Empire State Building in New York City
on April 23, 2023, as seen from Jersey City, New Jersey.
While other states like California and Washington have used their building codes to advance
electrification, New York will be the first state to pass a law to advance zero-emissions new homes
and buildings. The statewide ban would follow legislation passed by New York City in 2021 that
bans natural gas hookups in new buildings by the end of this year.
New York was the sixth-largest natural gas consumer among the states in 2020, according to the
U.S. Energy Information Administration. Natural gas fuels 46% of the state’s electricity generation.
And in 2021, the residential sector — where three out of every five households use natural gas for
heating — comprised over one-third of the natural gas delivered to New York residents, the agency
found.
The New York state and New York City zero-emissions building legislation would collectively
prevent up to 6.1 million metric tons of carbon emissions by 2040 — equivalent to the annual
emissions of just over 1.3 million cars, according to studies by the think tank RMI.
 New York state is poised to become the first state in the country to pass a law banning fossil fuel
combustion in most new buildings, getting rid of gas stoves, furnaces and propane heating in favor of
climate-friendly appliances like heat pumps and induction stoves.
 The law would likely take effect in 2026 for most new buildings under seven stories and in 2029 for
larger buildings.
 Following weeks of negotiations, Gov. Kathy Hochul and state lawmakers included the ban in the $229
billion state budget deal, with a final vote to enact the law anticipated this week.

“New York state is leading the way in ending America’s devastating addiction to fossil fuels,” said
Food & Water Watch Northeast Region Director Alex Beauchamp. “The rest of the country must
now catch up.”
The law could include exemptions for emergency backup generators, hospitals, laundromats and
commercial kitchens, and would not apply to existing residences that use gas-powered appliances.
Therefore, the ban wouldn’t curb emissions from existing buildings in New York, which account for
roughly 32% of the state’s overall emissions.
A statewide ban would bolster New York’s commitment to source 70% of its electricity from
renewables like solar, wind and water power by 2030 and achieve a net-zero emissions electric
sector by 2040.
“Our budget prioritizes nation-leading climate action that meets this moment with ambition and the
commitment it demands,” Hochul said Thursday during a budget speech in Albany.
Prohibiting natural gas from buildings is part of a national movement to curb climate-changing
emissions and transition to clean energy, especially amid mounting concerns over the
environmental and health impacts related to gas appliances. Some research has found that children
in homes with gas stoves are at greater risk of asthma and other health issues.
While environmental groups have celebrated the impending legislation, Republicans have largely
condemned bans on gas in new construction as federal overreach. Oil and gas companies, labor
unions and business groups have argued that a ban would trigger higher costs for buildings that
use electricity for heat compared to those that use gas.
The mandate may also be unpopular with residents. A recent poll conducted by Siena College found
that 53% of all New York respondents said they opposed phasing out gas stoves in new homes.
“Democrats strongly support Hochul’s proposal on prohibiting fossil fuel-burning equipment in most
new construction within the next several years, however Republicans and independents are even
stronger in their opposition,” said Siena College pollster Steven Greenberg.
States including Texas and Arizona have blocked cities from implementing natural gas bans, citing
that consumers should have the right to choose their energy sources.
New York’s ban is likely to face legal challenges as well.
Last month, for instance, a federal appeals court ruled that Berkeley, California cannot enforce a
ban on natural gas hookups in new buildings, saying a U.S. federal law preempts the city’s
regulation. That decision could have ramifications for similar efforts by more than a dozen other
cities and counties, including San Francisco, San Jose, Seattle, and Cambridge, Massachusetts.

Mozambique: Sasol discovers N. gas in Bonito-1 exploration well
Source: National Petroleum Institute
Sasol Mozambique PT5-C, Limitada (SMPT5-C) has made a discovery of natural gas, in sandstone
rocks of Lower Grudja Formation age, following the drilling of the Bonito-1 exploration well, in Area
PT5-C, located in the southern part of Inhassoro District, Inhambane Province, Mozambique Basin,
whose limits cover an area of about 3142 km2, between the Pande and Temane fields.
The well was drilled between 25
March and 5 April 2023 and
reached a depth of 1934 m MD, in
Lower Cretaceous sediments
(Horizonte G-12), and the
discovery was confirmed through
drill mud log readings,
chromatographic data, electrical
diagraphy and modular dynamic
testing (MDT).
The Bonito-1 well is the second to
be drilled in the PT5-C area, as the
first was negative, and falls within
the scope of the contractual
obligations set out in the first
exploration sub-period, of the
Concession Agreement for
Exploration and Production for the
PT5-C Onshore Area, which was
signed in October 2018, under the
5th Licensing Round. SMPT5-C
will proceed with assessment work
on the deposit and its commercial
viability.
Area PT5-C concession holders
are Sasol Mozambique PT5-C
LTD, which holds a 70%
participating interest,
and Empresa Nacional de
Hidrocarbonetos, E.P (ENH), with
30%.

Tunisia: Serinus Energy announces start of N-2 well workover
Source: Serinus Energy
Serinus Energy has announced that the CTF-004 rig has completed rig-up and
commenced workover operations on the Sabria N-2 well in Tunisia. This operation will recomplete
the N-2 well and remove any wellbore restrictions.
This well was drilled in 1980 but was not able to flow oil to surface due to damage during completion.
The N-2 is in close proximity to current Sabria producing wells, in particular the prolific WIN-12bis
well.
The workover and recompletion is expected to take approx. 30-40 days. Company engineering
analysis estimates that a successful workover and recompletion will initially increase gross
production from the Sabria field by approx. 420 boe/d.
Upon the recompletion of the N-2 well, the rig will be released.
Sabria is a large, conventional oilfield which the Company’s independent reservoir engineers
have estimated to have approx. 445 million barrels of oil equivalent hydrocarbons originally-in-place,
of which only 1.6 % has been produced to date.

NewBase May 03 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil extends losses after slumping 5%, as more rate hikes expected
Reuters + NewBase
Oil prices extended losses on Wednesday, after slumping about 5% to a five-week low in the
previous session, as investors braced for more rate hikes this week that could dent energy demand.
Brent futures fell 13 cents, or 0.2%, to $75.19 a barrel by 0015 GMT, while West Texas Intermediate
crude (WTI) also fell 13 cents, or 0.2%, to $71.53.
Both benchmarks closed at their lowest since March 24 in the previous session, when they also
recorded their biggest one-day percentage declines since early January.
The U.S. Federal Reserve is expected to hike interest rates by an additional 25 basis points on
Wednesday to combat inflation, while the European Central Bank is also expected to raise rates at
its regular policy meeting on Thursday.
More hikes could slow economic growth and hit energy demand.
Oil price special
coverage

Concerns about diesel demand in recent months, meanwhile, have pushed down U.S. heating oil
futures to their lowest level since December 2021.
Energy prices are also under pressure after data from China over the weekend showed
manufacturing activity fell unexpectedly in April. China is the world's largest energy consumer and
top buyer of crude oil.
The reopening of China's economy will be pivotal for Asia, the International Monetary Fund said as
it raised its economic forecast for the region on Tuesday. But it warned of risks from persistent
inflation and global market volatility driven by Western banking-sector woes.
Meanwhile, U.S. crude stockpiles fell for a third week in a row for the first time since December,
down some 3.9 million barrels last week, according to market sources citing American Petroleum
Institute figures on Tuesday.
Official stockpile data from the U.S. Energy Information Administration (EIA) is due at 10:30 a.m.
EDT on Wednesday. EIA/A ,

NewBase Specual Coverage
The Energy world –May -03 -2023
CLEAN ENERGY
The EU's plan for a green transition – Consilium , Fit for 55
The European Council
The European climate law makes reaching the EU’s climate goal of reducing EU emissions by at
least 55% by 2030 a legal obligation. EU countries are working on new legislation to achieve this
goal and make the EU climate-neutral by 2050.
What is the Fit for 55 package?
The Fit for 55 package is a set of proposals to revise and update EU legislation and to put in
place new initiatives with the aim of ensuring that EU policies are into line with the climate goals
agreed by the Council and the European Parliament.
Why 'Fit for 55'?
Fit for 55 refers to the EU’s target of reducing net greenhouse gas emissions by at least 55%
by 2030. The proposed package aims to bring EU legislation in line with the 2030 goal.
The package of proposals aims at providing a coherent and balanced framework for reaching the
EU's climate objectives, which:
 ensures a just and socially fair transition
 maintains and strengthens innovation and competitiveness of EU industry while ensuring a
level playing field vis-à-vis third country economic operators
 underpins the EU's position as leading the way in the global fight against climate change
The Council as co-legislator
Fit for 55: how the EU will turn climate goals into law

The proposals of the Fit for 55 package were first presented and discussed at technical level within
the Council's working parties responsible for the policy area concerned.
Later these were discussed by EU member states’ ambassadors in Coreper to prepare the ground
for agreements among the 27 member states. EU ministers, in various Council configurations,
exchanged views on the proposals to reach agreement on a common position on each proposed
act.
In the ordinary legislative procedure, the Council then engages with the European Parliament in
negotiations to find a common agreement in view of the final adoption of the legislative acts.
Fit for 55: how the EU will turn climate goals into law (infographic)
What is included in the Fit for 55 package?
EU emissions trading system
Fit for 55: reform of the EU emissions trading system
The EU emissions trading system (EU ETS)
is a carbon market based on a system of
cap-and-trade of emission allowances for
energy-intensive industries and the power
generation sector. It is the EU's main tool
in addressing emissions reductions.
Since its introduction in 2005, the EU's
emissions have decreased by 41%.
The Fit for 55 package aimed to reform the
EU ETS by making it more ambitious. New
provisions include:
 extension to emissions from maritime transport
 faster reduction of emissions allowances in the system and gradual phasing-out of free
allowances for some sectors
 implementation of the global carbon offsetting and reduction scheme for international aviation
(CORSIA) through the EU ETS
 increase of funding for the modernisation fund and the innovation fund
 revision of the market stability reserve
In addition, a new self-standing emissions trading system is created for buildings, road
transport and fuels for additional sectors.
The Environment Council adopted a general approach on the revision of the EU ETS in June 2022.
In December 2022, the Council reached a provisional deal with the European Parliament. This
includes an increase in the overall ambition of emissions reductions by 2030 in the sectors covered
by the EU ETS to 62%, compared to the 61% target proposed by the Commission.

In December 2022, the Council and the European Parliament reached also a provisional political
agreement on the revision of the EU emissions trading system (EU ETS) rules applying to
the aviation sector. The agreement ensures that aviation contributes to the EU's emission
reduction objectives under the Paris Agreement.
The Council adopted a decision on the market stability reserve, part of the EU ETS, in March 2023.
It formally adopted the revision of the EU ETS in April 2023.
'Fit for 55': Council adopts key pieces of legislation delivering on 2030 climate targets (press
release, 25 April 2023)
‘Fit for 55’: Council adopts decision on market stability reserve (press release, 28 March 2023)
ETS aviation: Council and Parliament strike provisional deal to reduce flight emissions (press
release, 7 December 2022)
'Fit for 55': Council and Parliament reach provisional deal on EU emissions trading system and
the Social Climate Fund (press release, 18 December 2022)
Fit for 55 package: Council reaches general approaches relating to emissions reductions and
their social impacts (press release, 29 June 2022)
In December 2022 the Council adopted a decision on the notification of CORSIA offsetting
requirements. CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) is
a global scheme for offsetting CO2 emissions from international aviation, in which EU
member states participate.
Council adopts decision on offsetting requirements for air transport emissions (CORSIA) (press
release, 19 December 2022)
Social climate fund
Fit for 55: a fund to support the most affected citizens and businesses
The social climate fund proposal aims to address the social and distributional impact of the new
emissions trading system for buildings and road transport.

Based on social climate plans to be developed by the member states, the fund aims to provide
support measures and investments for the benefit of vulnerable:
 households
 micro-enterprises
 transport users
The fund can also cover temporary direct income support. The fund will be part of the EU budget
and be fed by external assigned revenues up to a maximum amount of €65 billion.
EU environment ministers agreed on the Council's negotiating position for the creation of the social
climate fund in June 2022. In December 2022, the Council and the European Parliament reached a
provisional political agreement on the proposal for the fund. The new rules were adopted by the
Council in April 2023.
'Fit for 55': Council and Parliament reach provisional deal on EU emissions trading system and
the Social Climate Fund (press release, 18 December 2022)
Carbon border adjustment mechanism
Fit for 55: how does the EU intend to address the emissions outside of the EU?
The carbon border adjustment mechanism (CBAM) aims to ensure – in full compliance with
international trade rules – that the emissions reduction efforts of the EU are not offset by increasing
emissions outside its borders through the relocation of production to non-EU countries (where
policies applied to fight climate change are less ambitious than those of the EU) or through
increased imports of carbon-intensive products.
CBAM targets imports of products in carbon-intensive industries. It is designed to function
in parallel with the EU’s emissions trading system (EU ETS) as well as to mirror and complement

its functioning on imported goods. It will gradually replace the existing EU mechanisms to address
the risk of carbon leakage, in particular the free allocation of EU ETS allowances.
On 15 March 2022, the Council reached agreement on the text. In December 2022, negotiators of
the Council and the European Parliament reached a provisional agreement on CBAM.
The Council formally adopted the new rules in April 2023.
EU climate action: provisional agreement reached on Carbon Border Adjustment Mechanism
(press release, 13 December 2022)
Council agrees on the Carbon Border Adjustment Mechanism (press release, 15 March 2022)
Member states’ emissions reduction targets
Fit for 55: reducing emissions from transport, buildings, agriculture and waste
The effort sharing regulation, last amended in 2018, sets binding annual greenhouse gas
emissions targets for member states in sectors that are not covered by the EU emissions

trading system (EU ETS) or the regulation on land use, land use change and forestry (LULUCF).
These sectors include:
 road and domestic maritime transport
 buildings
 agriculture
 waste
 small industries
The new rules, as part of the Fit for 55 package, will increase the EU-level greenhouse gas
emissions reduction target for 2030 from 29% to 40%, compared with 2005, in the sectors
concerned. They will also update the national targets accordingly.
EU environment ministers agreed on a Council negotiating position on the revised rules on 29 June
2022. In November 2022, the Council reached a provisional agreement with the European
Parliament. The regulation was adopted by the Council in March 2023.
Fit for 55 package: Council adopts regulations on effort sharing and land use and forestry
sector (press release, 28 March 2023)
‘Fit for 55’: EU strengthens emission reduction targets for member states (press release, 8
November 2022)
Emissions and removals from land use, land use change and forestry
Fit for 55: reaching climate goals in the land use and forestry sectors
S

The land use, land-use change and forestry (LULUCF) regulation sets a binding commitment for the
EU to reduce emissions and increase removals in the land use and forestry sectors. With
the Fit for 55 package, the provisions are made more ambitious.
The new rules set an increased EU-level target of at least 310 million tonnes of CO2 equivalent net
removals of greenhouse gases for 2030. Binding national targets are defined for each member
state.
The Environment Council adopted a general approach on the revised LULUCF regulation on 29
June 2022. A provisional agreement was reached with the European Parliament in November 2022.
The regulation was adopted by the Council in March 2023.
Fit for 55 package: Council adopts regulations on effort sharing and land use and forestry
sector (press release, 28 March 2023)
‘Fit for 55’: provisional agreement sets ambitious carbon removal targets in the land use land
use change and forestry sector (press release, 11 November 2022)
CO2 emission standards for cars and vans
Fit for 55: why the EU is toughening CO2 emission standards for cars and vans
Cars and vans account for 15% of the total EU emissions of carbon dioxide. The EU, as part of
the 55 package, is working on revising rules regulating the CO2 emissions from these vehicles.

The proposal introduces progressive EU-wide emissions reduction targets for cars and
vans for 2030 and beyond, including a 100% reduction target for 2035 for new cars and vans.
The Council adopted its general approach on the proposal in June 2022. An agreement with the
European Parliament was reached in October 2022. The regulation was adopted by the
Council in March 2023.
‘Fit for 55’: Council adopts regulation on CO2 emissions for new cars and vans (press release,
28 March 2023)
First ‘Fit for 55’ proposal agreed: the EU strengthens targets for CO2 emissions for new cars
and vans (press release, 27 October 2022)
Reducing methane emissions in the energy sector
- Fit for 55: cutting methane emissions in fossil fuels
The Commission presented the proposal for new EU rules on methane emissions reduction in the
energy sector in December 2021, as part of the Fit for 55 package. The proposal aims to track and
reduce methane emissions in the energy sector. The text is the first of its kind and is a crucial
contribution to climate action, as methane is the second most important greenhouse
gas after carbon dioxide.

The proposal follows from the strategic vision set out in the EU Methane Strategy in 2020. At the
COP26 UN Climate Conference in 2021, the EU launched the Global Methane Pledge in partnership
with the United States, whereby over 100 countries committed to reducing their methane emissions
by 30% by 2030 compared to 2020 levels.
In December 2022, the Council reached agreement (‘general approach') on this proposal.
Member States agree on new rules to slash methane emissions (press release, 19 December
2022)
Sustainable aviation fuels
Fit for 55: increasing the uptake of greener fuels in the aviation and
maritime sectors
Sustainable aviation fuels (advanced biofuels and electrofuels) have the potential to
significantly reduce aircraft emissions. However, this potential is largely untapped as such fuels
represent only 0.05% of total fuel consumption in the aviation sector.
The ReFuelEU Aviation proposal aims to reduce the aviation sector’s environmental footprint and
enable it to help the EU achieve its climate targets.
The Council agreed on a general approach on the proposal in June 2022. A provisional
agreement was reached with the European Parliament in April 2023.
Council and Parliament agree to decarbonise the aviation sector (press release, 25 April 2023)

Fit for 55 package: Council adopts its position on three texts relating to the transport sector
(press release, 2 June 2022)
Greener fuels in shipping
The goal of the proposal on the use of renewable and low-carbon fuels in maritime
transport (FuelEU Maritime) is to reduce the greenhouse gas intensity of the energy used on-
board by ships by up to 75% by 2050, by promoting the use of greener fuels by ships. Despite
progress in recent years, the maritime sector still relies almost entirely on fossil fuels and constitutes
a significant source of greenhouse gases and other harmful pollutant emissions.
The Council agreed on a general approach on the proposal in June 2022. In March 2023, the
Council and the Parliament reached a provisional deal on the new rules.
FuelEU Maritime initiative: Provisional agreement to decarbonise the maritime sector (press
release, 23 March 2023)
Transport, Telecommunications and Energy Council (Transport), 2 June 2022
Alternative fuels infrastructure
Fit for 55: towards more sustainable transport

The main objective of the proposed regulation on alternative fuels infrastructure is to ensure that
citizens and businesses have access to a sufficient infrastructure network for recharging or
refuelling road vehicles or ships with alternative fuels.
It also aims to provide alternative power supply for ships in ports and stationary aircraft. The
proposal includes targets for infrastructure deployment. It tackles interoperability and improves user-
friendliness.
The proposed rules will play an important role in speeding up the deployment of alternative fuels
infrastructure so that the adoption of zero- and low-emission vehicles and ships will not be impeded,
and in enabling the transport sector to significantly reduce its carbon footprint.
In June 2022, the Council agreed a common position (general approach) on the Commission’s
proposal for this regulation. The Council and the Parliament reached a provisional deal on the
proposal in March 2023.
Alternative fuel infrastructure: Provisional agreement for more recharging and refuelling
stations across Europe (press release, 28 March 2023)
Renewable energy
Fit for 55: how the EU plans to boost renewable energy

The Fit for 55 package includes a proposal for a revision of the renewable energy directive. The
proposal is to increase the current EU-level target of at least 32% of renewable energy sources in
the overall energy mix to at least 40% by 2030.
It also proposes the introduction or enhancement of sectorial sub-targets and measures across
sectors, with a special focus on sectors where progress with integrating renewables has been slower
to date, in particular in the fields of transport, buildings and industry.
EU energy ministers agreed their joint position on the proposal for a revised EU renewable energy
directive on 27 June 2022. In March 2023, the Council and the European Parliament reached
a provisional political agreement on the revised directive.
"Fit for 55": Council agrees on higher targets for renewables and energy efficiency (press
release, 27 June 2022)
Council and Parliament reach provisional deal on renewable energy directive (press release,
30 March 2023)
Energy efficiency
Fit for 55: how the EU will become more energy-efficient
A revision of the EU energy efficiency directive was proposed as part of the Fit for 55 package. Its
main goal is to reduce final energy consumption at EU level by 11.7% in 2030, compared to
projections made in 2020.

The proposed rules put forward several provisions to accelerate energy efficiency efforts by member
states, such as increased annual energy savings obligations and new rules aimed at decreasing the
energy consumption of public sector buildings.
On 27 June 2022, the Council adopted its 'general approach' on the proposed new rules. In March
2023, the Council presidency and the European Parliament negotiators reached a provisional
political agreement on the revision of the directive.
Council and Parliament strike deal on energy efficiency directive (press release, 10 March 2023)
"Fit for 55": Council agrees on higher targets for renewables and energy efficiency (press
release, 27 June 2022)
Energy performance of buildings
Fit for 55: making buildings in the EU greener
Buildings account for 40% of energy consumed and 36% of energy-related direct and indirect
greenhouse gas emissions in the EU. EU countries are working on the revision of the energy
performance of buildings directive to make buildings in the EU more energy efficient by
2030 and beyond.
The main objectives of the new rules are:
all new buildings should be zero-emission buildings by 2030
existing buildings should be transformed into zero-emission buildings by 2050

In October 2022, the EU member states, meeting within the Council, agreed a common position
('general approach’) on the proposal.
‘Fit for 55’: Council agrees on stricter rules for energy performance of buildings (press release,
25 October 2022)
Transport, Telecommunications and Energy Council (Energy), 25 October 2022
Hydrogen and decarbonised gas market package
Fit for 55: shifting from fossil gas to renewable and low-carbon gases
The hydrogen and decarbonised gas market package proposes revised and new rules to lower the
carbon footprint of the gas market. The goal is to shift from natural gas to renewable and low-
carbon gases and boost their uptake in the EU by 2030 and beyond.
The package consists of a regulation and a directive. The two proposals set common internal
market rules for renewable and natural gases and hydrogen. They aim at creating a regulatory
framework for dedicated hydrogen infrastructure and markets and integrated network planning.
They also set rules for consumers protection and strengthen security of supply.
The Council set its position for negotiations (general approach) with the European Parliament on
the two proposals in March 2023.
Gas package: member states set their position on future gas and hydrogen market (press
release, 28 March 2023)

Energy taxation
Fit for 55: how the EU plans to revise energy taxation
The proposal for a revision of the Council directive on the taxation of energy products and
electricity aims to:
 align the taxation of energy products and electricity with the EU's energy, environment and
climate policies
 preserve and improve the EU internal market by updating the scope of energy products and
the structure of rates and by rationalising the use of tax exemptions and reductions by
member states
 preserve the capacity to generate revenues for the budgets of the member states
The proposal is currently under discussion within the Council. In December 2022, EU finance
ministers held a policy debate on the revision of the energy taxation directive.
Economic and Financial Affairs Council, 6 December 2022
Proposal on the revision of energy taxation
8 ways life in the EU is becoming greener
Shifting to a greener way of life is crucial to address the climate emergency and reduce dependency
on fossil fuels, especially those from Russia. The EU and its 27 countries are working on new
common rules under the Fit for 55 package to reduce the EU’s carbon footprint. How will the new
rules shape the way we live, work and travel? Read our story for some examples of what life in the
EU will look like in 2030.

NewBase Energy News 03-May 2023 - Issue No. 1616 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase 03 May-2023 Energy News issue - 1616 by Khaled Al Awadi_compressed.pdf

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