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NewBase Energy News 12 June 2023 No. 1628 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: Barakah Nuclear plant unit 4 set for operational test
ENEC + NewBase
The Emirates Nuclear Energy Corporation (Enec) has announced that the fourth and final unit at
the Barakah Nuclear Energy Plant in Abu Dhabi has begun its operational readiness preparations.
The Barakah team is now gearing up for the operational readiness testing, which is required to
demonstrate the unit is ready to receive the Operating Licence from the UAE’s independent nuclear
regulator, the Federal Authority for Nuclear Regulation (FANR), said Enec in a statement.
The lessons learnt from the previous three units have been effectively applied to the next unit,
ensuring the swift and safe transition to operational readiness, with each unit passing through the
phases of preparation in a more efficient manner while maintaining the same standards of quality
and safety, it stated.
The news comes following commercial operations of Unit 3 earlier in 2023, which joined Units 1 and
2 in generating 30TWh annually.
ww.linkedin.com/in/khaled-al-awadi-80201019/
The Barakah plant is an important part of the UAE’s efforts to diversify its
energy sources, and will provide clean and efficient energy to homes,
businesses and government facilities while reducing the nation’s carbon
footprint. When fully operational, the Barakah Nuclear Energy Plant is
expected to prevent up to 22 million tons of carbon emissions every year,
equivalent to removing 4.8 million cars from the roads.
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Once commercially operational, Unit 4 will raise the Barakah Plant’s total clean electricity generation
capacity to 5.6GW, equivalent to 25% of the UAE’s electricity needs, delivering more than 40TWh
of clean electricity per year.
The Barakah Plant has already had a
transformational impact on the UAE’s energy
landscape, spearheading the rapid
decarbonization of the UAE’s power sector
and over the winter months, the Plant met up
to 48% of Abu Dhabi’s electricity
requirements with zero-carbon electricity.
Enec Managing Director and CEO Mohamed
Ibrahim Al Hammadi said: "In the UAE’s Year
of Sustainability, we are demonstrating how
nuclear energy can have a real, rapid and
transformative impact on decarbonizing the power sector. Every year since 2020, we have added
another unit to deliver 10TWh of 24/7, emissions free power to the grid."
"With Unit 4 now moving towards becoming operational we will soon meet our mission to generate
25% of the nation’s electricity. Barakah offers a clear success story as we head towards COP 28 in
Dubai, where attendees will be looking for solutions to the climate crisis and are increasingly
recognizing the critical role proven nuclear energy technology will play," he added.-
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Saudi Arabia announces official launch of Iraq powergrid project
Gulf Costruction + NewBase
Saudi Arabia has announced the launch of the powergrid interconnection project with Iraq, which
entails the implementation of a dual-circuit transmission line linking the northern city of Arar in KSA
to Yusufiya in western Baghdad, boasting an initial capacity of 1000 megawatts.
The agreement for the project was signed by GCC Interconnection Authority (GCCIA) and Iraq on
the sidelines of the 'Jeddah Summit for Security and Development' in July last year. A framework
agreement was sealed between the Iraqi Ministry of Electricity and GCCIA in 2019 for the laying of
the project's foundation stone.
Once finalised and operational, the project, alongside the Gulf-Iraq electrical interconnection project,
will provide substantial assistance to the Iraqi electrical grid, augmenting its capability to meet the
growing electricity demands of the Iraqi population in the upcoming years.
The project entails the implementation of a 400 kV dual-circuit transmission line connecting the Al
Zour Substation, passing through the 400 kV Al Wafrah unit and reaching the Al Faw Substation,
running 322 km long.
The anticipated capacity to be imported through this initiative is estimated at 500MW, thereby
catering to the electricity requirements of the Basra governorate, said the statement from GCCIA.
HH Prince Saud bin Naif bin Abdulaziz, the Governor of the Eastern Province, inaugurated the
Saudi-Iraq power grid project implemented through an agreement between the GCC
Interconnection Authority and the Republic of Iraq.
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This landmark event was witnessed by Prince Abdulaziz bin Salman bin Abdulaziz, the Saudi
Minister of Energy, Prince Saud bin Naif bin Abdulaziz, the Governor of the Eastern Province, and
Engineer Ziyad Ali Fadel, the Iraqi Minister of Electricity, as well as a number of Gulf Arab ministers
of electricity, Gulf ambassadors to the Kingdom, as well as several officials from both the Gulf and
Iraq.
Speaking on the occasion, Prince
Saud said: "The launch of the Iraq
electrical interconnection project has
thrown open abundant prosperity as
well as extensive advantages to the
entire region. Additionally, this project
serves as a catalyst for a new era,
ushering in broader horizons and
expanding market opportunities."
Prince Saud said this project stands
as a testament to the unwavering
support and guidance of Saudi King
Salman bin Abdulaziz Al Saud and His
Royal Highness Prince Mohammed
bin Salman bin Abdulaziz Al Saud,
Crown Prince and Prime Minister as
well as other GCC leaders.
"Since its establishment in 2009, when the Kingdom embraced it, the project has consistently
demonstrated its impact year after year, generating numerous economic advantages for the GCC
countries. Notably, it has substantially reduced both the capital and operational expenses
associated with the Gulf electricity network," he added.
Prince Saud pointed out that the project had furnished approximately half of the overall required
energy reserves in the countries prior to the finalization of the electrical interconnection.
"Furthermore, it has established dependable, sustainable, and competitive electricity transmission
services, yielding a positive influence in supporting and streamlining all developmental endeavours
in the region," he noted.
"Through this collaboration, we achieve a multitude of objectives, elevating the stature of the GCC
countries in bolstering and enhancing the value of the regional electricity market," stated the
Governor.
"The project fulfils the aspirations of the people in the region for electricity trade and exchange, while
also serving as an integral component of the comprehensive Arab electrical interconnection project,
which aims to connect Arab nations with each other," he added.
On the launch, Prince Abdulaziz said: "The start of the implementation of the GCC-Iraq electrical
interconnection project, which was signed on the sidelines of the 'Jeddah Summit for Security and
Development' in July last year, represents one of the projects aimed at boosting cooperation with
Iraq in the economic and social fields."
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Highlighting the project's significance to Iraq, Ali Fadel said: "It is of strategic importance in terms of
Arab integration in the realm of electrical energy. This project also acts as a vital conduit linking Iraq
to its Arab Gulf counterparts."
GCC Secretary-General Jasem Al Budaiwi emphasized the significance of the Gulf Power
Interconnection Project as a crucial infrastructure initiative linking the member states.
Its primary objectives include addressing
the loss of generation capacity during
emergencies, reducing generation
reserves in member countries, mitigating
carbon emissions, minimizing costs
associated with fiber optic network
infrastructure, and facilitating the
exchange and trade of electrical energy
among member states.
GCCIA Chairman Engineer Mohsin
Hamed Al Hadhrami pointed out that the
strategic projects such as these have
consistently yielded technical and
economic benefits for the GCC countries
over the years.
"It plays a vital role in supporting
emergency situations by preventing power outages within the networks of the GCC countries. This
is achieved by promptly providing assistance during emergencies through the transmission of the
required energy via the extensive Gulf Power Interconnection network, which spans approximately
1,050km from Kuwait to Oman.
CEO Engineer Ahmed Al Ebrahim said since 2016, the GCCIA and the energy ministries of Gulf
countries have established a platform for energy exchange. "This platform sets the stage for
realizing the Arab aspiration of interconnection with Iraq, followed by Jordan and Egypt, thus
creating the ‘Arab Common Electricity Market’.
According to him, plans are afoot to increase the investments in Gulf electricity networks by
approximately $1.5 billion over the next five years.
"These investments will support three
major projects, including the expansion of
electricity interconnection with Kuwait, the
expansion of electricity interconnection
with the UAE and the establishment of
direct interconnection with the Sultanate of
Oman.
This increased investment in Gulf electricity
networks will boost the capacity for power grid interconnection. "Our forthcoming plan for
interconnection beyond the GCC system involves connecting with Jordan and Egypt, and they are
presently conducting the final feasibility study for interconnection to reach Europe," he added.-
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Europe’s Risky Plan to Avert a Winter Energy Crisis: Stash Gas
in Ukraine .. Bloomberg
About 60 miles from Ukraine’s border with the European Union, an array of pipes and pumps hints
at what stands to become an important part of the bloc’s efforts to secure energy supplies and thwart
Vladimir Putin.
Tucked between farm fields and forests, the Bilche-Volytsko-Uherske storage facility can stockpile
more than four times as much natural gas as the largest site in Germany and connects easily to the
bloc’s grids, thanks to Ukraine’s decades-long role as a transit route for Russian energy.
Support is building for the high-stakes strategy after last year’s crisis
The Bilche-Volytsko-Uherske storage facility can stockpile more than four times as much natural gas as the largest site
in Germany.
Storing vital fuel in a country subjected to missile strikes and attacks on critical energy infrastructure
may sound like a crazy idea. But it’s winning backers as the facilities are far enough from the front
line to be deemed safe, and some traders reckon it’s worth the risk.
European officials are now contemplating whether to support links to Bilche-Volytsko-Uherske and
other facilities scattered across Ukraine — home to the continent’s biggest network of underground
caverns that can hold gas for when demand and prices spike in the winter. With EU sites already
edging close to capacity — currently more than 70% full — storing the fuel in Ukraine could prevent
a glut in the coming months.
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“Ukrainian storage can help to balance supply and demand during the second half of the summer
2023, given their excellent connection to EU gas markets,” German utility RWE AG, which has used
Ukraine’s storage in the past, said in a statement to Bloomberg.
Gas Storage Facilites in Ukraine
One third of the 30 billion cubic meters of capacity is being offered to foreign traders
Sources: Institute for the Study of War and the American Enterprise Institute’s Critical Threats Project; Ukrtransgaz;
Gas Infrastructure Europe , Note: Map shows control areas as of June 5, 2023
To make storing gas in Ukraine viable, prices will need to fall low enough to justify the costs. The
EU will also likely need to step in to provide a backstop against potential losses related to the
conflict.
The evolving initiative is part of efforts to avoid the panic that led to record prices and state
intervention last year. To shield companies and consumers, EU governments rolled out €646
billion ($694 billion) in aid, according to think tank Bruegel, and they can ill afford a repeat.
While European energy companies stored gas in Ukraine before Russia’s invasion in February
2022, putting supplies in a country involved in combat would normally be unheard of, and the
deliberations reflect Europe’s narrow range of options and how the war has reset risks.
Energy has been a weapon in the conflict since the beginning. Last week’s explosion of the
Kakhovka dam on the Dnipro River is the latest example. Last year, the Kremlin gradually squeezed
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gas supplies, creating havoc on Europe’s energy markets. Those concerns remain, and Ukraine is
offering help.
Storing gas for Europe would not only generate much-needed revenue for the country, it would
strengthen ties with the bloc and serve as a snub to Russia after the Kremlin sought to use energy
to weaken support for Kyiv.
The country’s gas storage capacity — located in relative safety as much as 2 kilometers below
ground — totals more than 30 billion cubic meters. Operator Ukrtransgaz is making available a third
of that space — equivalent to about 10% of the EU’s fourth-quarter demand last year.
“The Ukrainian market offers storage at a fixed cost rate, which makes gas storage in Ukraine a
very attractive and competitive option,” said Marco Saalfrank, the head of continental Europe
merchant trading at Switzerland-based Axpo, but noting that the risk needs to be low.
With the insurance industry steering clear of Ukraine, the extent to which traders are willing to
stockpile gas in Ukraine depends on pricing and whether the EU is prepared to provide a backstop.
Talks are ongoing.
The Mechanics of Gas Storage
Source: Uniper
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The European Commission — the bloc’s executive arm — is “exploring if and how guarantees
issued by public institutions could perhaps support unlocking access to natural gas storages in
Ukraine,” Commission spokesman Tim McPhie said at a briefing with reporters last week.
For its part, Ukrtransgaz is working on implementing service guarantees to reduce war-related risks
as it seeks to become “a power bank for Europe,” the company said in an emailed response to
Bloomberg questions, adding that demand has surpassed its initial expectations.
Time is running short on getting a system in place. Europe’s storage sites are expected to reach
capacity limits as soon as early September. Heating demand typically doesn’t kick in until later
in the fall, creating risks of oversupply, which could then whipsaw if a cold snap sets in.
Without Russian pipeline deliveries — which have largely ceased — European gas markets are
more finely balanced than in the past. That means surges in demand or disruptions to supply can
have outsized impacts.
The use of Ukraine’s facilities would help avert a crash in prices ahead of the winter, but if the usage
is “unexpectedly high,” it also presents downside risks to rates next year, according to consultants
Energy Aspects Ltd. Winter contracts are trading at a premium to summer prices, making storage
in Ukraine or on tankers at sea an increasingly attractive option.
Swiss trader Axpo stockpiled gas in Ukraine before the war and is open to doing so again, but
it’s keeping a close eye on developments and government guarantees will be key.
“Since the start of the war, the risks related to energy infrastructure in Ukraine have increased
tremendously, as we’ve unfortunately seen with the recent dam explosion,” Saalfrank said.
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NewBase June 12 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls more than 1% ahead of US Federal Reserve rate decision
Reuters + NewBase
Oil prices declined on Monday ahead of a U.S. Federal Reserve meeting as investors tried to gauge
the central bank's appetite for further rate hikes, while concerns about China's fuel demand growth
and rising Russian crude supply weighed on the market.
Brent crude futures fell 97 cents, or 1.3%, to $73.82 a barrel by 0437 GMT. U.S. West Texas
Intermediate (WTI) crude was at $69.24 a barrel, also down 1.3%.
Both benchmarks notched their second straight weekly decline last week as disappointing
China economic data raised concerns about demand growth in the world's largest crude importer,
offsetting a boost in prices from Saudi Arabia pledging to cut production by 1 million barrels per day
(bpd) in July.
"Oil prices are caught in a clash between two opposing forces, bearish asset allocators who point
to monetary contraction and bullish oil speculators expecting lower inventories in 2H23," Bank of
America Global Research's Francisco Blanch said in a note.
Oil price special
coverage
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"The bearish allocators will maintain the upper hand for now, as oil prices struggle to rally until the
Fed eases money supply," Blanch said. The bank still expects Brent crude to average about $80 a
barrel in 2023.
The Fed's rate hikes have strengthened the greenback, making dollar-denominated commodities
more expensive for holders of other currencies and weighing on prices.
Most market participants expect the U.S. central bank to leave interest rates unchanged when it
concludes its two-day monetary policy meeting on Wednesday.
"We maintain our call for a soft landing in the U.S., but policy could tighten further if growth does
not slow, and funding pressures in the banking system keep risks skewed to the downside," Morgan
Stanley economist Seth Carpenter said in a note.
On the supply side, while Saudi Arabia has cut oil production four times in the past year, Russian
supply has held up as sanctions were engineered in a way to have less of an impact on output,
Blanch said.
Russian oil exports to China and India have grown despite the implementation of the European
Union's embargo and the Group of Seven's price cap mechanism that started in early December.
Goldman Sachs cut its oil price forecasts on higher-than-expected supplies from Russia and Iran
and raised 2024 supply forecasts for the two producers and Venezuela by a total 800,000 bpd.
The bank's December crude price forecast now stands at $86 a barrel for Brent, down from $95,
and at $81 a barrel for WTI, down from $89.
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NewBase Specual Coverage
The Energy world –June-02 -2023
CLEAN ENERGY
China and Russia account for 70% of new nuclear plants
Asia.nikkei + NewBase
China installed its Hualong One reactor at the Karachi nuclear power plant as part of a plan to
extend influence in Pakistan. (Photo from China National Nuclear Corporation social media)
Russia and China are building up an outsized presence in the field of nuclear power, with the
countries accounting for nearly 70% of reactors under construction or in planning worldwide.
Meanwhile, construction plans in Japan, the U.S. and Europe were largely put on hold after the
2011 disaster at the Fukushima Daiichi nuclear power plant, resulting in a stagnation of related
industries in those countries.
As of January, there were 110 third-generation nuclear reactors, for which safety measures were
strengthened in the wake of the Chernobyl nuclear accident, under construction or planning,
according to the Japan Electric Power Information Center.
China accounts for the most, with 46, followed by Russia with 30. The two countries account for
69% of the total.
Notably, 33 of the reactors are being constructed or planned outside each respective country.
Russia has the largest number of overseas reactors with 19, and despite growing opposition from
Europe and the U.S. following its invasion of Ukraine, it maintains a strong global influence in
nuclear power.
In April, Russian President Vladimir Putin participated remotely in a ceremony to mark the arrival of
the first fuel at the under-construction Akkuyu nuclear power plant in Turkey. Russian state-owned
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nuclear power company Rosatom plans to begin operations at the plant, Turkey's first, this year.
The project is a symbol of the deep ties between the countries, which are a concern for the West.
Russia's nuclear power diplomacy is extending to other countries as well. In May, Rosatom began
full-scale construction on Unit 3 of the Dabaa nuclear plant in Egypt, the country's first.
Hungarian Prime Minister Viktor Orban met with Rosatom officials this month to discuss the
company's plans to build a new nuclear power plant in the country's south. Hungary opposes
sanctions the European Union has imposed on Rosatom.
"Many developing countries take a positive view of Russia," Kacper Szulecki of the Norwegian
Institute of International Affairs told British scientific journal Nature Energy. Russia's acceptance of
spent nuclear fuel is also attractive to emerging countries.
Meanwhile, China is deepening its engagement with Pakistan. In May, the Pakistan Nuclear
Regulatory Authority issued an operating permit for the Unit 3 reactor of the Karachi nuclear power
plant. This reactor is the Hualong One, which was designed by Chinese players including the state-
owned China National Nuclear Corp.
Hualong One has an output of about 1 gigawatt and is based on U.S. and French pressurized water
reactor technology. China's involvement in Pakistan is deep, including financial assistance and
construction of the Karachi Unit 2 reactor.
China also plans to build a nuclear plant in Argentina. The U.S. asked Argentina to cancel the
project, but President Alberto Fernandez decided to go ahead with it, waving away possible threats
posed by China as something promoted by the U.S. in an interview with Chinese media.
"China is pitching Hualong One to emerging countries, and exports will definitely increase," said Yuji
Kuroda of the Japan Electric Power Information Center. If China and Russia boost their dominance
in nuclear power, a key to energy security, their influence in the international political arena will
become even stronger.
The U.S., Japan and Europe are hoping to catch up using small modular reactors (SMRs),
considered fourth-generation technology. SMRs are relatively small, with an output of 300
megawatts or less. They are considered very safe because they are designed to more easily cool
nuclear fuel in case of an accident.
A rendering of a NuScale power plant that would host small modular reactors. (Image courtesy of NuScale)
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Hitachi-GE Nuclear Energy -- a joint venture of General Electric and Hitachi -- and U.S. company
NuScale Power separately aim to bring SMRs online in the latter half of the decade.
"The U.S. government is helping to advance the development of this groundbreaking American
technology," U.S. President Joe Biden said about NuScale's plan to build an SMR in Romania.
Washington is moving to curb the rise of China and Russia in this field by promoting SMRs in such
countries as Thailand and the Philippines as well.
Japan has plans for eight new reactors, including one at the Oma nuclear power plant now under
construction in Aomori prefecture. Screenings of proposed reactors stalled after safety standards
were tightened following the Fukushima disaster, but the government changed course in light of a
power crunch. Prime Minister Fumio Kishida has called for existing reactors to be replaced with
next-generation reactors that are safer.
But Japan's competitiveness in nuclear power has waned. Its exports related to nuclear power fell
from 131.4 billion yen ($943 million at current rates) in 2010 to 21.4 billion yen in 2020. A similar
descent can be seen in the U.S. and many parts of Europe because they were wary about building
new reactors.
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"Supply chains in Japan, the U.S. and Europe have weakened due to such factors as the retirement
of engineers, so there are more cases now in which we lose to China and Russia in terms of
technology," said an official at Japan's Agency for Natural Resources and Energy.
Another issue is nuclear fuel. Uranium enrichment has become the weak link for Western nations.
Enrichment facilities are limited, and Russia is the global leader for that process.
In April, the U.S., the U.K., France, Canada and Japan formed a nuclear fuel alliance. While the aim
is to shut out Russian fuel from Western reactors, doing so will not be easy.
Sino-Russian collaboration: The two countries have a long history of nuclear
cooperation; Russia helped China build its first reactor in the late 1950s, and then in the 1990s
assisted China with a number of joint projects, “supplying the backbone of China’s nuclear industry.”
Today, Russia “continues to be the largest player in the nuclear energy export market by a wide
margin,” according to the article, and the alliance continues. “Sino-Russian nuclear energy
collaboration has been an important part of this business.” Those countries’ largest-yet joint nuclear
energy project—the installation of four new Russian VVER-1200 reactors at Chinese plants in
Lianyungang and Xudabao—began in 2021.
Sino-Russian competition: But for all their past and present partnerships, the article notes
“a shift in the Sino-Russian relationship in the realm of nuclear power,” now that China is “largely
self-sufficient in its nuclear fuel cycle” and is therefore “further weaning itself from Russia by
developing indigenous nuclear technology and diversifying its global partnerships.” As China’s own
nuclear power companies become stronger and more engaged in international business,
“cooperation has increasingly turned into competition.”
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Government-owned: The main competitive advantage that both Russia and China have in
the international nuclear energy market, according to the article, is that their nuclear enterprises are
government owned and operated. These state-owned nuclear companies in each country “can take
contracts that would be too risky or unprofitable for private companies [such as those in the United
States] and offer extremely favorable deals to clients that may not be able to afford the full cost of
nuclear power plant construction.”
Behind the competition: The dominance of Russia and China in the international nuclear
energy market also gives them certain geopolitical advantages over the West, because nuclear
power plants “take years to construct and must be maintained and refueled for decades.” As Russia
and China expand their market reach, they can develop “substantial political influence in client
countries, particularly in developing countries that lack the resources and indigenous expertise to
handle plant operation themselves.”
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NewBase Energy News 12-June 2023 - Issue No. 1628 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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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.
Copyright © 2022 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 18
Copyright © 2022 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 19

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NewBase 12 June-2023 Energy News issue - 1628 by Khaled Al Awadi.pdf

  • 1. Copyright © 2022 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 12 June 2023 No. 1628 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: Barakah Nuclear plant unit 4 set for operational test ENEC + NewBase The Emirates Nuclear Energy Corporation (Enec) has announced that the fourth and final unit at the Barakah Nuclear Energy Plant in Abu Dhabi has begun its operational readiness preparations. The Barakah team is now gearing up for the operational readiness testing, which is required to demonstrate the unit is ready to receive the Operating Licence from the UAE’s independent nuclear regulator, the Federal Authority for Nuclear Regulation (FANR), said Enec in a statement. The lessons learnt from the previous three units have been effectively applied to the next unit, ensuring the swift and safe transition to operational readiness, with each unit passing through the phases of preparation in a more efficient manner while maintaining the same standards of quality and safety, it stated. The news comes following commercial operations of Unit 3 earlier in 2023, which joined Units 1 and 2 in generating 30TWh annually. ww.linkedin.com/in/khaled-al-awadi-80201019/ The Barakah plant is an important part of the UAE’s efforts to diversify its energy sources, and will provide clean and efficient energy to homes, businesses and government facilities while reducing the nation’s carbon footprint. When fully operational, the Barakah Nuclear Energy Plant is expected to prevent up to 22 million tons of carbon emissions every year, equivalent to removing 4.8 million cars from the roads.
  • 2. Copyright © 2022 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 2 Once commercially operational, Unit 4 will raise the Barakah Plant’s total clean electricity generation capacity to 5.6GW, equivalent to 25% of the UAE’s electricity needs, delivering more than 40TWh of clean electricity per year. The Barakah Plant has already had a transformational impact on the UAE’s energy landscape, spearheading the rapid decarbonization of the UAE’s power sector and over the winter months, the Plant met up to 48% of Abu Dhabi’s electricity requirements with zero-carbon electricity. Enec Managing Director and CEO Mohamed Ibrahim Al Hammadi said: "In the UAE’s Year of Sustainability, we are demonstrating how nuclear energy can have a real, rapid and transformative impact on decarbonizing the power sector. Every year since 2020, we have added another unit to deliver 10TWh of 24/7, emissions free power to the grid." "With Unit 4 now moving towards becoming operational we will soon meet our mission to generate 25% of the nation’s electricity. Barakah offers a clear success story as we head towards COP 28 in Dubai, where attendees will be looking for solutions to the climate crisis and are increasingly recognizing the critical role proven nuclear energy technology will play," he added.-
  • 3. Copyright © 2022 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 3 Saudi Arabia announces official launch of Iraq powergrid project Gulf Costruction + NewBase Saudi Arabia has announced the launch of the powergrid interconnection project with Iraq, which entails the implementation of a dual-circuit transmission line linking the northern city of Arar in KSA to Yusufiya in western Baghdad, boasting an initial capacity of 1000 megawatts. The agreement for the project was signed by GCC Interconnection Authority (GCCIA) and Iraq on the sidelines of the 'Jeddah Summit for Security and Development' in July last year. A framework agreement was sealed between the Iraqi Ministry of Electricity and GCCIA in 2019 for the laying of the project's foundation stone. Once finalised and operational, the project, alongside the Gulf-Iraq electrical interconnection project, will provide substantial assistance to the Iraqi electrical grid, augmenting its capability to meet the growing electricity demands of the Iraqi population in the upcoming years. The project entails the implementation of a 400 kV dual-circuit transmission line connecting the Al Zour Substation, passing through the 400 kV Al Wafrah unit and reaching the Al Faw Substation, running 322 km long. The anticipated capacity to be imported through this initiative is estimated at 500MW, thereby catering to the electricity requirements of the Basra governorate, said the statement from GCCIA. HH Prince Saud bin Naif bin Abdulaziz, the Governor of the Eastern Province, inaugurated the Saudi-Iraq power grid project implemented through an agreement between the GCC Interconnection Authority and the Republic of Iraq.
  • 4. Copyright © 2022 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 4 This landmark event was witnessed by Prince Abdulaziz bin Salman bin Abdulaziz, the Saudi Minister of Energy, Prince Saud bin Naif bin Abdulaziz, the Governor of the Eastern Province, and Engineer Ziyad Ali Fadel, the Iraqi Minister of Electricity, as well as a number of Gulf Arab ministers of electricity, Gulf ambassadors to the Kingdom, as well as several officials from both the Gulf and Iraq. Speaking on the occasion, Prince Saud said: "The launch of the Iraq electrical interconnection project has thrown open abundant prosperity as well as extensive advantages to the entire region. Additionally, this project serves as a catalyst for a new era, ushering in broader horizons and expanding market opportunities." Prince Saud said this project stands as a testament to the unwavering support and guidance of Saudi King Salman bin Abdulaziz Al Saud and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister as well as other GCC leaders. "Since its establishment in 2009, when the Kingdom embraced it, the project has consistently demonstrated its impact year after year, generating numerous economic advantages for the GCC countries. Notably, it has substantially reduced both the capital and operational expenses associated with the Gulf electricity network," he added. Prince Saud pointed out that the project had furnished approximately half of the overall required energy reserves in the countries prior to the finalization of the electrical interconnection. "Furthermore, it has established dependable, sustainable, and competitive electricity transmission services, yielding a positive influence in supporting and streamlining all developmental endeavours in the region," he noted. "Through this collaboration, we achieve a multitude of objectives, elevating the stature of the GCC countries in bolstering and enhancing the value of the regional electricity market," stated the Governor. "The project fulfils the aspirations of the people in the region for electricity trade and exchange, while also serving as an integral component of the comprehensive Arab electrical interconnection project, which aims to connect Arab nations with each other," he added. On the launch, Prince Abdulaziz said: "The start of the implementation of the GCC-Iraq electrical interconnection project, which was signed on the sidelines of the 'Jeddah Summit for Security and Development' in July last year, represents one of the projects aimed at boosting cooperation with Iraq in the economic and social fields."
  • 5. Copyright © 2022 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 5 Highlighting the project's significance to Iraq, Ali Fadel said: "It is of strategic importance in terms of Arab integration in the realm of electrical energy. This project also acts as a vital conduit linking Iraq to its Arab Gulf counterparts." GCC Secretary-General Jasem Al Budaiwi emphasized the significance of the Gulf Power Interconnection Project as a crucial infrastructure initiative linking the member states. Its primary objectives include addressing the loss of generation capacity during emergencies, reducing generation reserves in member countries, mitigating carbon emissions, minimizing costs associated with fiber optic network infrastructure, and facilitating the exchange and trade of electrical energy among member states. GCCIA Chairman Engineer Mohsin Hamed Al Hadhrami pointed out that the strategic projects such as these have consistently yielded technical and economic benefits for the GCC countries over the years. "It plays a vital role in supporting emergency situations by preventing power outages within the networks of the GCC countries. This is achieved by promptly providing assistance during emergencies through the transmission of the required energy via the extensive Gulf Power Interconnection network, which spans approximately 1,050km from Kuwait to Oman. CEO Engineer Ahmed Al Ebrahim said since 2016, the GCCIA and the energy ministries of Gulf countries have established a platform for energy exchange. "This platform sets the stage for realizing the Arab aspiration of interconnection with Iraq, followed by Jordan and Egypt, thus creating the ‘Arab Common Electricity Market’. According to him, plans are afoot to increase the investments in Gulf electricity networks by approximately $1.5 billion over the next five years. "These investments will support three major projects, including the expansion of electricity interconnection with Kuwait, the expansion of electricity interconnection with the UAE and the establishment of direct interconnection with the Sultanate of Oman. This increased investment in Gulf electricity networks will boost the capacity for power grid interconnection. "Our forthcoming plan for interconnection beyond the GCC system involves connecting with Jordan and Egypt, and they are presently conducting the final feasibility study for interconnection to reach Europe," he added.-
  • 6. Copyright © 2022 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 6 Europe’s Risky Plan to Avert a Winter Energy Crisis: Stash Gas in Ukraine .. Bloomberg About 60 miles from Ukraine’s border with the European Union, an array of pipes and pumps hints at what stands to become an important part of the bloc’s efforts to secure energy supplies and thwart Vladimir Putin. Tucked between farm fields and forests, the Bilche-Volytsko-Uherske storage facility can stockpile more than four times as much natural gas as the largest site in Germany and connects easily to the bloc’s grids, thanks to Ukraine’s decades-long role as a transit route for Russian energy. Support is building for the high-stakes strategy after last year’s crisis The Bilche-Volytsko-Uherske storage facility can stockpile more than four times as much natural gas as the largest site in Germany. Storing vital fuel in a country subjected to missile strikes and attacks on critical energy infrastructure may sound like a crazy idea. But it’s winning backers as the facilities are far enough from the front line to be deemed safe, and some traders reckon it’s worth the risk. European officials are now contemplating whether to support links to Bilche-Volytsko-Uherske and other facilities scattered across Ukraine — home to the continent’s biggest network of underground caverns that can hold gas for when demand and prices spike in the winter. With EU sites already edging close to capacity — currently more than 70% full — storing the fuel in Ukraine could prevent a glut in the coming months.
  • 7. Copyright © 2022 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 7 “Ukrainian storage can help to balance supply and demand during the second half of the summer 2023, given their excellent connection to EU gas markets,” German utility RWE AG, which has used Ukraine’s storage in the past, said in a statement to Bloomberg. Gas Storage Facilites in Ukraine One third of the 30 billion cubic meters of capacity is being offered to foreign traders Sources: Institute for the Study of War and the American Enterprise Institute’s Critical Threats Project; Ukrtransgaz; Gas Infrastructure Europe , Note: Map shows control areas as of June 5, 2023 To make storing gas in Ukraine viable, prices will need to fall low enough to justify the costs. The EU will also likely need to step in to provide a backstop against potential losses related to the conflict. The evolving initiative is part of efforts to avoid the panic that led to record prices and state intervention last year. To shield companies and consumers, EU governments rolled out €646 billion ($694 billion) in aid, according to think tank Bruegel, and they can ill afford a repeat. While European energy companies stored gas in Ukraine before Russia’s invasion in February 2022, putting supplies in a country involved in combat would normally be unheard of, and the deliberations reflect Europe’s narrow range of options and how the war has reset risks. Energy has been a weapon in the conflict since the beginning. Last week’s explosion of the Kakhovka dam on the Dnipro River is the latest example. Last year, the Kremlin gradually squeezed
  • 8. Copyright © 2022 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 8 gas supplies, creating havoc on Europe’s energy markets. Those concerns remain, and Ukraine is offering help. Storing gas for Europe would not only generate much-needed revenue for the country, it would strengthen ties with the bloc and serve as a snub to Russia after the Kremlin sought to use energy to weaken support for Kyiv. The country’s gas storage capacity — located in relative safety as much as 2 kilometers below ground — totals more than 30 billion cubic meters. Operator Ukrtransgaz is making available a third of that space — equivalent to about 10% of the EU’s fourth-quarter demand last year. “The Ukrainian market offers storage at a fixed cost rate, which makes gas storage in Ukraine a very attractive and competitive option,” said Marco Saalfrank, the head of continental Europe merchant trading at Switzerland-based Axpo, but noting that the risk needs to be low. With the insurance industry steering clear of Ukraine, the extent to which traders are willing to stockpile gas in Ukraine depends on pricing and whether the EU is prepared to provide a backstop. Talks are ongoing. The Mechanics of Gas Storage Source: Uniper
  • 9. Copyright © 2022 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 9 The European Commission — the bloc’s executive arm — is “exploring if and how guarantees issued by public institutions could perhaps support unlocking access to natural gas storages in Ukraine,” Commission spokesman Tim McPhie said at a briefing with reporters last week. For its part, Ukrtransgaz is working on implementing service guarantees to reduce war-related risks as it seeks to become “a power bank for Europe,” the company said in an emailed response to Bloomberg questions, adding that demand has surpassed its initial expectations. Time is running short on getting a system in place. Europe’s storage sites are expected to reach capacity limits as soon as early September. Heating demand typically doesn’t kick in until later in the fall, creating risks of oversupply, which could then whipsaw if a cold snap sets in. Without Russian pipeline deliveries — which have largely ceased — European gas markets are more finely balanced than in the past. That means surges in demand or disruptions to supply can have outsized impacts. The use of Ukraine’s facilities would help avert a crash in prices ahead of the winter, but if the usage is “unexpectedly high,” it also presents downside risks to rates next year, according to consultants Energy Aspects Ltd. Winter contracts are trading at a premium to summer prices, making storage in Ukraine or on tankers at sea an increasingly attractive option. Swiss trader Axpo stockpiled gas in Ukraine before the war and is open to doing so again, but it’s keeping a close eye on developments and government guarantees will be key. “Since the start of the war, the risks related to energy infrastructure in Ukraine have increased tremendously, as we’ve unfortunately seen with the recent dam explosion,” Saalfrank said.
  • 10. Copyright © 2022 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 10 NewBase June 12 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil falls more than 1% ahead of US Federal Reserve rate decision Reuters + NewBase Oil prices declined on Monday ahead of a U.S. Federal Reserve meeting as investors tried to gauge the central bank's appetite for further rate hikes, while concerns about China's fuel demand growth and rising Russian crude supply weighed on the market. Brent crude futures fell 97 cents, or 1.3%, to $73.82 a barrel by 0437 GMT. U.S. West Texas Intermediate (WTI) crude was at $69.24 a barrel, also down 1.3%. Both benchmarks notched their second straight weekly decline last week as disappointing China economic data raised concerns about demand growth in the world's largest crude importer, offsetting a boost in prices from Saudi Arabia pledging to cut production by 1 million barrels per day (bpd) in July. "Oil prices are caught in a clash between two opposing forces, bearish asset allocators who point to monetary contraction and bullish oil speculators expecting lower inventories in 2H23," Bank of America Global Research's Francisco Blanch said in a note. Oil price special coverage
  • 11. Copyright © 2022 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 11 "The bearish allocators will maintain the upper hand for now, as oil prices struggle to rally until the Fed eases money supply," Blanch said. The bank still expects Brent crude to average about $80 a barrel in 2023. The Fed's rate hikes have strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies and weighing on prices. Most market participants expect the U.S. central bank to leave interest rates unchanged when it concludes its two-day monetary policy meeting on Wednesday. "We maintain our call for a soft landing in the U.S., but policy could tighten further if growth does not slow, and funding pressures in the banking system keep risks skewed to the downside," Morgan Stanley economist Seth Carpenter said in a note. On the supply side, while Saudi Arabia has cut oil production four times in the past year, Russian supply has held up as sanctions were engineered in a way to have less of an impact on output, Blanch said. Russian oil exports to China and India have grown despite the implementation of the European Union's embargo and the Group of Seven's price cap mechanism that started in early December. Goldman Sachs cut its oil price forecasts on higher-than-expected supplies from Russia and Iran and raised 2024 supply forecasts for the two producers and Venezuela by a total 800,000 bpd. The bank's December crude price forecast now stands at $86 a barrel for Brent, down from $95, and at $81 a barrel for WTI, down from $89.
  • 12. Copyright © 2022 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 12 NewBase Specual Coverage The Energy world –June-02 -2023 CLEAN ENERGY China and Russia account for 70% of new nuclear plants Asia.nikkei + NewBase China installed its Hualong One reactor at the Karachi nuclear power plant as part of a plan to extend influence in Pakistan. (Photo from China National Nuclear Corporation social media) Russia and China are building up an outsized presence in the field of nuclear power, with the countries accounting for nearly 70% of reactors under construction or in planning worldwide. Meanwhile, construction plans in Japan, the U.S. and Europe were largely put on hold after the 2011 disaster at the Fukushima Daiichi nuclear power plant, resulting in a stagnation of related industries in those countries. As of January, there were 110 third-generation nuclear reactors, for which safety measures were strengthened in the wake of the Chernobyl nuclear accident, under construction or planning, according to the Japan Electric Power Information Center. China accounts for the most, with 46, followed by Russia with 30. The two countries account for 69% of the total. Notably, 33 of the reactors are being constructed or planned outside each respective country. Russia has the largest number of overseas reactors with 19, and despite growing opposition from Europe and the U.S. following its invasion of Ukraine, it maintains a strong global influence in nuclear power. In April, Russian President Vladimir Putin participated remotely in a ceremony to mark the arrival of the first fuel at the under-construction Akkuyu nuclear power plant in Turkey. Russian state-owned
  • 13. Copyright © 2022 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 13 nuclear power company Rosatom plans to begin operations at the plant, Turkey's first, this year. The project is a symbol of the deep ties between the countries, which are a concern for the West. Russia's nuclear power diplomacy is extending to other countries as well. In May, Rosatom began full-scale construction on Unit 3 of the Dabaa nuclear plant in Egypt, the country's first. Hungarian Prime Minister Viktor Orban met with Rosatom officials this month to discuss the company's plans to build a new nuclear power plant in the country's south. Hungary opposes sanctions the European Union has imposed on Rosatom. "Many developing countries take a positive view of Russia," Kacper Szulecki of the Norwegian Institute of International Affairs told British scientific journal Nature Energy. Russia's acceptance of spent nuclear fuel is also attractive to emerging countries. Meanwhile, China is deepening its engagement with Pakistan. In May, the Pakistan Nuclear Regulatory Authority issued an operating permit for the Unit 3 reactor of the Karachi nuclear power plant. This reactor is the Hualong One, which was designed by Chinese players including the state- owned China National Nuclear Corp. Hualong One has an output of about 1 gigawatt and is based on U.S. and French pressurized water reactor technology. China's involvement in Pakistan is deep, including financial assistance and construction of the Karachi Unit 2 reactor. China also plans to build a nuclear plant in Argentina. The U.S. asked Argentina to cancel the project, but President Alberto Fernandez decided to go ahead with it, waving away possible threats posed by China as something promoted by the U.S. in an interview with Chinese media. "China is pitching Hualong One to emerging countries, and exports will definitely increase," said Yuji Kuroda of the Japan Electric Power Information Center. If China and Russia boost their dominance in nuclear power, a key to energy security, their influence in the international political arena will become even stronger. The U.S., Japan and Europe are hoping to catch up using small modular reactors (SMRs), considered fourth-generation technology. SMRs are relatively small, with an output of 300 megawatts or less. They are considered very safe because they are designed to more easily cool nuclear fuel in case of an accident. A rendering of a NuScale power plant that would host small modular reactors. (Image courtesy of NuScale)
  • 14. Copyright © 2022 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 14 Hitachi-GE Nuclear Energy -- a joint venture of General Electric and Hitachi -- and U.S. company NuScale Power separately aim to bring SMRs online in the latter half of the decade. "The U.S. government is helping to advance the development of this groundbreaking American technology," U.S. President Joe Biden said about NuScale's plan to build an SMR in Romania. Washington is moving to curb the rise of China and Russia in this field by promoting SMRs in such countries as Thailand and the Philippines as well. Japan has plans for eight new reactors, including one at the Oma nuclear power plant now under construction in Aomori prefecture. Screenings of proposed reactors stalled after safety standards were tightened following the Fukushima disaster, but the government changed course in light of a power crunch. Prime Minister Fumio Kishida has called for existing reactors to be replaced with next-generation reactors that are safer. But Japan's competitiveness in nuclear power has waned. Its exports related to nuclear power fell from 131.4 billion yen ($943 million at current rates) in 2010 to 21.4 billion yen in 2020. A similar descent can be seen in the U.S. and many parts of Europe because they were wary about building new reactors.
  • 15. Copyright © 2022 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 15 "Supply chains in Japan, the U.S. and Europe have weakened due to such factors as the retirement of engineers, so there are more cases now in which we lose to China and Russia in terms of technology," said an official at Japan's Agency for Natural Resources and Energy. Another issue is nuclear fuel. Uranium enrichment has become the weak link for Western nations. Enrichment facilities are limited, and Russia is the global leader for that process. In April, the U.S., the U.K., France, Canada and Japan formed a nuclear fuel alliance. While the aim is to shut out Russian fuel from Western reactors, doing so will not be easy. Sino-Russian collaboration: The two countries have a long history of nuclear cooperation; Russia helped China build its first reactor in the late 1950s, and then in the 1990s assisted China with a number of joint projects, “supplying the backbone of China’s nuclear industry.” Today, Russia “continues to be the largest player in the nuclear energy export market by a wide margin,” according to the article, and the alliance continues. “Sino-Russian nuclear energy collaboration has been an important part of this business.” Those countries’ largest-yet joint nuclear energy project—the installation of four new Russian VVER-1200 reactors at Chinese plants in Lianyungang and Xudabao—began in 2021. Sino-Russian competition: But for all their past and present partnerships, the article notes “a shift in the Sino-Russian relationship in the realm of nuclear power,” now that China is “largely self-sufficient in its nuclear fuel cycle” and is therefore “further weaning itself from Russia by developing indigenous nuclear technology and diversifying its global partnerships.” As China’s own nuclear power companies become stronger and more engaged in international business, “cooperation has increasingly turned into competition.”
  • 16. Copyright © 2022 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 16 Government-owned: The main competitive advantage that both Russia and China have in the international nuclear energy market, according to the article, is that their nuclear enterprises are government owned and operated. These state-owned nuclear companies in each country “can take contracts that would be too risky or unprofitable for private companies [such as those in the United States] and offer extremely favorable deals to clients that may not be able to afford the full cost of nuclear power plant construction.” Behind the competition: The dominance of Russia and China in the international nuclear energy market also gives them certain geopolitical advantages over the West, because nuclear power plants “take years to construct and must be maintained and refueled for decades.” As Russia and China expand their market reach, they can develop “substantial political influence in client countries, particularly in developing countries that lack the resources and indigenous expertise to handle plant operation themselves.”
  • 17. Copyright © 2022 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 17 NewBase Energy News 12-June 2023 - Issue No. 1628 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.
  • 18. Copyright © 2022 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 18
  • 19. Copyright © 2022 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 19