NewBase 10 August 2023 Energy News issue - 1646 by Khaled Al Awadi.pdf

Copyright © 2023 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 endeavors 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 Energy News 10 August 2023 No. 1646 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: ADFD finances AED387m project to enhance energy
security in Tanzania
WAM
The Abu Dhabi Fund for Development (ADFD) has signed a loan agreement with the Government
of Tanzania worth AED387 million (US$105.4 million) to enhance energy security in the country.
The project’s objective is to fully connect the Kagera administrative region with the national
electricity grid, reducing dependency on energy imports from Uganda and providing sustainable and
safe electricity sources to communities, economic areas, and service facilities.
The agreement was signed by Mohamed Saif Al Suwaidi, ADFD Director-General, and Dr. Mwigulu
Nchemba, Minister for Finance of Tanzania, in the presence of Khalifa Abdullah Al Qubaisi, Deputy
Director-General of ADFD, and other officials from both sides.
ww.linkedin.com/in/khaled-al-awadi-80201019/

Al Suwaidi said that this strategic project was a significant step towards the development of
Tanzania’s energy sector and ensuring sufficient electricity supplies to meet the population’s needs
sustainably.
“The Fund will collaborate with Tanzanian partners to support their development programs and work
towards the United Arab Emirates’ future aspirations and the Fund’s strategic objectives of
accelerating energy projects globally for the betterment of developing countries’ societies,” he said.
Dr. Nchemba praised the longstanding relationship between the Abu Dhabi Fund for Development
and Tanzania since 1977, which has played a vital role in implementing development projects and
contributing to economic and social progress in the country.
He emphasised that the project’s financing will reduce energy import dependency, stimulate
economic activities, develop existing industries, and create job opportunities for the population.
The Abu Dhabi Fund for Development has previously financed six development projects in
Tanzania, including the Kidaho-Uvinza Road and the Kagera Sugar Project.
These projects have significantly contributed to the development process and improved the quality
of life for Tanzanian communities.

UAE: Adnoc Gas awards $3.6bn deal to expand facilities
TradeArabia News Service
Adnoc Gas, a world-class integrated gas processing company, on Wednesday announced the
award of a $3.6 billion contract to the joint venture between National Petroleum Construction
Company Co (NPCC) and Tecnicas Reunidas to expand its gas processing infrastructure in the UAE.
The scope of the contract includes the commissioning of new gas processing facilities which will
enable an optimised supply to the Ruwais Industrial Complex, said a statement.
The strategic Maximizing Ethane Recovery and Monetization (MERAM) project aims to achieve
dual objectives: First, to increase ethane extraction, by a range of 35 - 40%, from Adnoc Gas’s
existing onshore facilities in the Habshan complex through the construction of new gas processing
facilities; and second, to unlock further value from existing feedstock and deliver it to Ruwais via a
dedicated 120 km natural gas liquids (NGL) pipeline.
Over 70% of the award value will flow back into the UAE’s economy under Adnoc's successful In-
Country Value (ICV) programme, supporting local economic growth and diversification, said the
statement.
Ahmed Mohamed Alebri, Chief Executive Officer of Adnoc Gas, said: "This capital project
represents Adnoc Gas’ latest investment in its gas processing infrastructure and underscores our
commitment to responsibly meeting our customers’ current and future energy demand for natural
gas and its feedstock. The expansion of our gas processing infrastructure will also
provide additional energy to the country’s growing industrial section, while stimulating economic
growth and diversification through the significant ICV generated by the contract.”
Natural gas is an important transitional fuel with lower carbon emissions when burned compared to
other fossil fuels. It also serves as an important raw material in industrial value chains.
Adnoc Gas continues to leverage opportunities arising from Adnoc’s integrated gas masterplan
which links every part of the gas value chain in the UAE, ensuring a sustainable and economic
supply of natural gas to meet local and international demand. The plan includes new approaches
and technologies to enable increased gas recovery from existing fields and develop untapped
resources, the statement added -

China:New pumped-storage capacity is helping to integrate
growing wind and solar power…source: Global Energy Monitor, Global Hydropower Tracker,
China is building pumped-storage hydropower facilities to increase the flexibility of the power grid
and accommodate growing wind and solar power. As of May 2023, China had 50 gigawatts (GW)
of operational pumped-storage capacity, 30% of global capacity and more than any other country.
China’s pumped-storage capacity is set to increase even more, with 89 GW of capacity currently
under construction. Developers are seeking governmental approvals, land rights, or financing for an
additional 276 GW of pumped-storage projects, according to the data from Global Energy Monitor.
Pumped storage is a type of energy storage. When demand is low (or supply is high), pumped-
storage hydropower plants pump water from a lower reservoir to an upper reservoir. Later, when
electricity demand is high (or supply is low), the water is released from the upper reservoir through
a turbine into the lower reservoir, generating electricity.
Pumped storage helps balance excess electricity that is produced by solar and wind, acting like a
giant battery. Grid operators have to keep the amount of electricity produced balanced with the
amount of electricity consumed. Because wind and solar generation depend on whether the sun is
shining or the wind is blowing, they can’t be ramped up and down the way other types of power
plants can.
Any excess electricity they generate must be stored to avoid losing it. Pumped-storage plants can
store the excess wind and solar generation for later use. This supply management helps offset the
variability in solar and wind.

This flexibility is particularly important in China, which has a large and growing share of wind and
solar power in its generation mix. In 2021, wind and solar combined generated 12% of China’s
electricity, according to our International Energy Statistics. As wind and solar play an increasingly
significant role in China’s electricity mix, the surplus energy generated will need to be stored.
Otherwise, it will have to be curtailed, meaning some of the wind and solar power will not be used.
Data source: Global Energy Monitor, Global Hydropower Tracker, Global Solar Power Tracker,
Global Wind Power Tracker, May 2023
Pumped-storage projects have advantages compared with other types of storage, such as batteries.
They have low operational and maintenance costs and long operating lifespans. In addition, they
can provide large-scale, long-term energy storage.
However, they can have large upfront construction costs, the construction and operation can cause
environmental and ecological issues, and they are geographically constrained by land requirements.
Pumped storage is also subject to water availability.

U.S: Developers added 16.8 GW of U.S. utility-scale generating
capacity in first-half 2023… Data source: U.S. EIA, Preliminary Monthly Electric Generator Inventory,
In the first half of 2023, developers added 16.8 gigawatts (GW) of new utility-scale electric
generating capacity to the U.S. power grid, according to our latest inventory of electric generators.
Developers plan to bring an additional 35.2 GW of capacity online in the second half of the year.
Operating capacity: Solar power accounted for the largest share, 35% (5.9 GW) of the capacity that
came online in the first half of 2023. That new capacity is 4.6 GW less than what developers and
project planners reported expecting for the period at the beginning of the year. Supply chain
constraints were the primary cause for this shortfall.
Florida, with 25% of the national total, added the most solar capacity of any state. Florida Power
and Light, the largest power utility in Florida, added almost 80% of the solar capacity added in the
state.
Natural gas is used to fuel 34% (5.7 GW) of the U.S. capacity added in the first half of 2023, a close
second to solar power. The two largest projects that came online in the first half of 2023 were natural
gas-fired plants: the 1,836-megawatt (MW) Guernsey Power Station in Ohio and the 1,214-MW
CPV Three Rivers Energy Center in Illinois.
Wind made up 19% (3.2 GW) of capacity additions, followed by battery storage at 11% (1.8 GW).
Most of the new battery storage capacity was built in Texas and California. Vistra Energy added an
additional 350 MW of battery storage to the existing 400 MW of battery storage at Moss Landing
power station in California, making it the country’s largest battery storage facility.

Planned capacity: Developers plan to add another 35.2 GW of
new capacity in the second half of 2023. Most of the planned
capacity is solar (at 55%, or 19.3 GW), followed by battery
storage (7.8 GW) and wind (4.9 GW). Some of it—4.6 GW of
solar and 3.1 GW of battery storage capacity—was originally
scheduled for the first half of the year and was rescheduled for
the second half.
A third reactor at Georgia’s Vogtle nuclear power plant, which
was scheduled to come online in March, began commercial
operation at the end of July. The 1.1 GW reactor is the first new
U.S. nuclear reactor to start operation since Watts Bar 2 was
commissioned in 2016.
Retired capacity: Of the 15.3 GW of electric generating capacity that U.S. operators plan to retire in
2023, more than half (8.2 GW) was retired in the first half of the year.
According to operator plans, coal-fired power plants will account for 64% of the retirements by the
end of the year, followed by natural gas (30%). In 2023, operators expect 9.8 GW of coal-fired
capacity to retire, 5% of the U.S. coal-fired capacity that was operating at the start of the year.
Our Preliminary Monthly Electric Generator Inventory compiles information on all U.S. utility-scale
power plants (plants with a nameplate capacity of at least 1 MW) that are currently operating,
planning to come online, or retired. The inventory includes all utility-scale units that have retired
since 2002.

NewBase August 10 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil steadies ahead of US inflation data
Reuters + NewBase
Oil prices steadied on Thursday as investor caution ahead of U.S. inflation data softened a
protracted price rally on supply tightness.
Brent crude edged up 4 cents to $87.59 a barrel by 1057 GMT while West Texas Intermediate crude
(WTI) crept down by 4 cent to $84.36.
Oil prices have been boosted in recent days by extensions to output cuts by Saudi Arabia and
Russia, alongside supply fears driven by the potential for tensions between Russia and Ukraine in
the Black Sea region to threaten Russian oil shipments.
"At present it does not appear that there is anything untoward in the energy sector to upset this rally.
Commentators and traders alike are much concentrated on fundamentals rather than what might
be ailing the wider macroeconomic suite," said John Evans of oil broker PVM.
"The poor state of China’s manufacturing, its property sector and some stubborn world inflation
stand out as issues that the oil fraternity chooses to ignore at present."
Oil price special
coverage
 Brent and WTI benchmarks have been on rise since May
 Inflation data awaited for clues on interest rates
 Saudi and Russian output cuts add to supply concerns

All eyes are on July consumer prices data from the United States on Thursday, which should provide
a steer on the U.S. Federal Reserve's future monetary policy.
"Oil investors will be widely watching the US Inflation print which is anticipated to reflect a slight
rebound, a scenario likely to spur fears of more rate hikes," Priyanka Sachdeva, senior market
analyst at Phillip Nova, said in a note.
Capping oil gains, U.S. crude inventories (USOILC=ECI) rose by 5.9 million barrels in the past
week, eclipsing analyst expectations in a Reuters poll for a rise of 0.6 million barrels, U.S. Energy
Information Administration data showed on Wednesday.
U.S. crude oil exports fell by 2.9 million barrels per day last week, the steepest fall on record, data
showed. But the market is expecting crude exports to rise because of the U.S. crude futures and
Brent spread, said Phil Flynn, analyst at Price Futures Group.
Meanwhile, recent data showed the consumer sector in China fell into deflation and factory gate
prices extended declines in July, raising concerns about fuel demand in the world's second-largest
economy.
Reporting by Natalie Grover in London Additional reporting by Muyu Xu in Singapore and Laura
Sanicola in Washington Editing by David Goodman

NewBase Specual Coverage
The Energy world –August-03 -2023
CLEAN ENERGY
This is going to get worse before it gets better’: Panama Canal
pileup due to drought reaches 154 vessels
Lori Ann LaRocco@LORIANNLAROCCO
KEY POINTS
 There are 154 commercial vessels waiting to cross the Panama Canal, with an average wait
time of 21 days.
 Panama Canal Authority has reduced the number of ships allowed to pre-book transit through
the Panamax locks, and restrictions due to ongoing drought conditions will remain in effect
until August 21.
 40% of all U.S. container traffic travels through the Panama Canal every year.
 “This is going to get worse before it gets better,” said one marine shipping expert.
A ship navigates through the Panama Canal in the area near the Americas’ Bridge in Panama City
on April 24, 2023. The scarcity of rainfall due has forced the Panama Canal to reduce the draft of
ships passing through the interoceanic waterway, in the midst of a water supply crisis that threatens
the future of this maritime route.
The number of vessels waiting to cross the Panama Canal has reached 154, and slots for carriers
to book passage are being reduced in an effort to manage congestion caused by ongoing drought

conditions that have roiled the major shipping gateway since the spring. The current wait time to
cross the canal is now around 21 days.
The Panama Canal is a critical trade link for U.S. shippers heading to Gulf and East Coast ports. The
U.S. is the largest user of the Panama Canal, with total U.S. commodity export and import containers
representing about 73% of Panama Canal traffic. Forty percent of all U.S. container traffic travels
through the canal every year, about $270 billion in cargo.
The massive pileup is a result of water conservation measures the Panama Canal Authority
deployed in late July due to drought. The PCA has temporarily lowered the availability of booking
slots from August 8-August 21 for Panamax vessels, which are the largest vessels that can cross
the canal. These vessels can carry 4,500 twenty-foot equivalent units (TEUs). The number of pre-
booking slots was reduced to 14 daily from 23.
Satellite photos from Planet Labs detail the congestion.
Vessels waiting to cross Panama Canal from Pacific Ocean side. Red square indicates Panama
Canal
‘Planet Labs PBC’
Additional lower water level restrictions imposed by the PCA in July also require vessels to be 40%
lighter, impacting vessels that were in transit when the requirements were implemented. The Ever
Max was forced to unload 1,400 containers at the Port of Balboa in order to meet the requirements
and gain passage. The vessel is currently anchored at the Port of Savannah.
“Those containers left may need another vessel to complete the journey,” said Captain Adil Ashiq,
head of North America for MarineTraffic. “This is going to get worse before it gets better,” he said.
A canal lock loses 50 million gallons of water when a single vessel traverses the canal. Water levels
in Gatun Lake, which feeds the canal, are at a four-year low.

Ricaurte Vásquez Morales, administrator of the Panama Canal, said that considering the changing
circumstances, the canal is maintaining an open line of communication to keep customers informed
about booking slot availability. “Through regular updates, transparent dialogue, and close
collaboration with shipping lines and stakeholders, we strive to manage expectations and provide
real-time information that enables our customers to make informed decisions,” he said.
Ashiq explained that vessels have to wait longer to transit the canal or ocean carriers make a
business decision to take alternative routes, which add time and fuel costs to the journey. Shippers
using multiple vessels to move their freight adds to freight costs, and longer lead times to secure
bookings. Ultimately, he said, these costs may end up being passed down to businesses and
consumers.
Recent data released by supply chain intelligence firm Descartes shows the East Coast ports
continue to be the preference for U.S. shippers. The top five West Coast ports showed a decrease
of 4.1% in July, and the top East and Gulf Coast ports processed an increase of 4.1% during the
same timeframe.
“Now is not the time to further stress supply chains that are still straining under ongoing logistical
pressures,” said Stephen Lamar, president and CEO of the American Apparel & Footwear
Association. He said surcharges and vessel restrictions will likely mean higher clothing and shoe
prices for U.S. consumers this holiday season.
What the Panama Canal is doing to fight a severe drought challenge
This latest reduction in bookings is on the heels of the PCA reducing the number of vessels allowed
to go through the canal in a day. Starting on July 30, 2023, the daily transit capacity of the Panama
Canal was adjusted to an average of 32 vessels per day (10 vessels in the newer Neopanamax
locks, which serve the larger vessels, and 22 vessels in the older Panamax locks). Before the water
conservation measures, transits were 34 to 36 a day.

Alan Baer, CEO of logistics company OL USA, told CNBC that shippers may have to start looking
at other routes.
“With the increasing difficulty of reaching the U.S. East Coast via the Panama Canal, importers may
be looking at vessels transiting the Suez,” Baer said. He added that this can be an effective solution
for freight originating in the ASEAN region and some Southern China origins. However, for Northern
China and North Asia, deviation via the Suez can add seven to 14 days of additional transit time.
Energy sector diversions are already happening
Diversions are already happening in the energy sector. The mounting delays have clean tankers,
which carry refined petroleum products, avoiding the canal, shifting their preference to book routes
to the Atlantic Basin, according to S&P Global. Data from its Commodities at Sea unit shows that in
the combined June to July period, U.S. Gulf Coast clean petroleum product exports using the canal
and traveling to the West Coast of South America slowed by 82% year over year. Exports in July,
specifically, were down 12% year over year.
Cheniere Energy announced in July that it would avoid the Panama Canal to ship LNG because of
the wait times. The canal is the quickest route for the LNG market to reach Asia. Coal traffic is also
being impacted and making adjustments. India is a big importer of U.S. coal and vessels carrying
the commodity also use the Panama Canal.

NewBase Energy News 10-August 2023 - Issue No. 1646 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 10 August 2023 Energy News issue - 1646 by Khaled Al Awadi.pdf

Recommended

Recommended

More Related Content

Similar to NewBase 10 August 2023 Energy News issue - 1646 by Khaled Al Awadi.pdf

Similar to NewBase 10 August 2023 Energy News issue - 1646 by Khaled Al Awadi.pdf (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

NewBase 10 August 2023 Energy News issue - 1646 by Khaled Al Awadi.pdf