NewBase 14 September 2023 Energy News issue - 1656 by Khaled Al Awadi.pdf

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NewBase Energy News 14 September 2023 No. 1656 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE Masdar to Buy Stake in Turkish Renewables Firm Fiba
Bloomberg News
The United Arab Emirates’ clean energy producer Masdar is in talks to buy a stake in Turkey’s Fiba
Yenilenebilir Enerji, in what would be the first acquisition in a $51 billion investment push between
the two countries, according to people familiar with the matter.
The negotiations aren’t finalized, the people said, without elaborating on the potential size of the
deal. They asked not to be identified as the talks weren’t made public.
Fiba didn’t respond to requests for comment. Masdar said it doesn’t comment on market
speculation.
Fiba, owned by Turkish billionaire Husnu Ozyegin’s Fiba Group, is one of Turkey’s top five wind-
power producers, with 553 megawatts of installed capacity. Its total assets, which also include
28MW of solar power plants, were worth $1.31 billion as of December 2021 when the exchange
rate averaged 13.33 liras per dollar, according to its latest financial statement.
Masdar, owned by Abu Dhabi sovereign wealth fund Mubadala Investment Co., Abu Dhabi National
Oil Co. and Abu Dhabi National Energy Co. is one of the biggest renewable energy developers in
the world. Masdar plans to increase its power generation capacity from 20 gigawatts to 100GW by
2030.
A deal with Fiba would mark Masdar’s entry into the Turkish market and help to cement a political
rapprochement between Turkey and Gulf states including the UAE, of which Abu Dhabi is the
capital.
Turkey’s President Recep Tayyip Erdogan toured the UAE, Saudi Arabia and Qatar to attract
investment into his $1 trillion economy. The UAE committed $51 billion of support, of which around
$30 billion will be in energy.
ww.linkedin.com/in/khaled-al-awadi-80201019/

UAE Oil Giant Plans European Trading Boost in Expansion Push
(Bloomberg)
The UAE’s biggest oil producer is pushing to build its fledgling trading operations into a multibillion-
dollar business this decade by bolstering its presence in Europe and Africa, and expanding in other
forms of energy.
In a bid to catch up with long-established rivals, Abu Dhabi National Oil Co. wants to take advantage
of the hole left by Europe’s pivot from Russian fuels, according to people with knowledge of the
company’s plans. It is pursuing term contracts for crude, refined fuels and liquefied natural gas and
supplying those volumes to the region, they said, asking not to be named because the plans aren’t
public.
Over the next year, Adnoc is targeting two to three long-term contracts to purchase LNG and as
many separate supply deals with customers, according to one of the people. Expanding in LNG will
be a primary focus after it hired three traders from Litasco, a unit of Russia’s Lukoil PJSC, last year.
The moves are part of Adnoc’s wider push to secure assets around the world, including a $12 billion
pursuit of German chemical-maker Covestro AG and a $2 billion offer with BP Plc for an Israeli gas
producer. Since Chief Executive Officer Sultan Al Jaber took over in 2016, the company has shed
its previous conservative approach for an ambitious global presence.
“We’re executing a strategy where we would like to see an international expansion,” Musabbeh Al
Kaabi, who oversees global growth at Adnoc, said in an interview in Singapore on Sept. 6. “Like
integrated energy companies, we keep looking at opportunities to maximize value.”
Strategy Change
The ambition to step up trading in Europe and Africa marks a change in strategy for Adnoc, which
has traditionally contracted out most of its oil and gas to Asia since it was founded over half a century

ago. Set up in 2020, Adnoc Trading wants to emulate not just the billions of dollars of profits that
independent merchant firms and integrated majors such as Shell Plc have made, but also the
influence of the big traders.
Competition will be fierce. The incumbents have been operating for years and others from the Middle
East have had a headstart. Saudi Aramco has expanded its trading unit and is moving ahead with
plans to handle more fuels out of London. It also has refining ventures in Denmark and Poland that
process its crude and provide products for sale. Kuwait has a refinery in Italy, and Oman, which
started the region’s first state trading business, has global offices and contracts.
“The heightened volatility of markets in recent years — a phenomenon likely to become the new
norm — provides more opportunity to profit from trading than in previous years,” said Vandana Hari,
founder of Vanda Insights. “The challenge for these newcomers will be to grab market share from
the more established players. It’s a high risk, high reward business.”
Adnoc last year considered buying all or part of trader Gunvor Group, which would’ve given it major
heft in the industry and access to commodity merchant’s supply contracts. But a deal didn’t
materialize and the UAE state company is now building out its trading business from within.
Geneva Office
Adnoc Trading aims to open its first European office in Geneva by the end of 2024, followed by a
Houston outpost the year after, according to one of the people involved. The company already has
a Singapore office dealing largely in chemicals trading.
The company is already trading Nigerian crude on a term basis, helped by financing arrangements
that pay for the barrels. Its traders have also been experimenting with different crude grades mostly
for the UAE’s biggest refinery at Ruwais on the Persian Gulf.
While Adnoc produces enough of its own crude, it has bought oil from Nigeria, Yemen and Angola,
and from places as far as Norway and Australia. At least one Russian cargo has arrived at Ruwais
and there have been several shipments of Kazakh crude.
In Africa and Central Asia Adnoc is looking to take advantage of religious and cultural ties, as well
as government and financial influence to secure deals. In Kenya, Adnoc won part of a state fuel
supply tender earlier this year. What Adnoc offers is political backing, cash for investment and an
appetite for assets it can trade around.
“If maximizing value comes from trading, we will look at it,” Adnoc’s Al Kaabi said. “There’s a lot of
potential levers to create more value from investing in international investments.”

Saudia: Masdar, EDF Secures B$ 1.4 Saudi Solar Power Project
CEO insight Asia + NewBAse
Electricite de France SA and Masdar, the UAE's green energy firm, have secured a 25-year deal to
supply power and water to a resort complex being built on Saudi Arabia's Red Sea Coast. According
to Masdar CEO Mohamed Jameel Al Ramahi, the project will cost approximately $1.4 billion and
will begin providing power and water ser vices next year.
The facility is part of a larger strategy to redevelop the desert oil production as a premium vacation
destination.
“It’s a unique project,” Al Ramahi said. The partners will build “a fully integrated independent utility
project. Basically it is power, it’s water, it’s water treatment, it’s distribution, and it’s totally off grid
powered by renewables”. The companies aim to raise about 80 per cent of the cost through project
financing that will close by the end of the year, he said.
Red Sea Global, a state-owned developer, awarded the enterprises the contract to deliver solar
energy and desalinated water to the Amaala project. The partners will construct a solar energy
system capable of generating up to 410,000 megawatt hours of power per year, enough to power
10,000 households. The financial details were not provided.
As part of Saudi Crown Prince Mohammed bin Salman's Vision 2030 strategy, the world's largest
crude oil exporter is investing vast amounts of money on industrial, lifestyle, and technology
projects. The crown prince wants to prepare Saudi Arabia for a future that is less reliant on oil by
developing new industries and jobs.
Amaala is designed to run solely on solar energy and emit no carbon dioxide once fully operational.
EDF and Masdar will construct battery storage to provide power around the clock. It will also include
a desalination plant fueled by renewable energy and waste-water treatment facilities.

U.S exported more LNG than any other country in 1st half of 2023
Data source: International Group of Liquefied Natural Gas Importers (2018–2021) and CEDIGAZ (2022–1H23)
The United States exported more liquefied natural gas (LNG) than any other country in the first half
of 2023 (1H23), according to data from CEDIGAZ. U.S. LNG exports averaged 11.6 billion cubic
feet per day (Bcf/d) during this period, 4% (0.5 Bcf/d) more than in 1H22, according to data from the
U.S. Department of Energy’s LNG Reports.
Note:1H23=first half of 2023. Includes annual liquefied natural gas exports by country for 2018–
2022 and 1H23 average exports for 2023.
Australia exported the world’s second-largest volume of LNG in 1H23, averaging 10.6 Bcf/d,
followed by Qatar at 10.4 Bcf/d. The increase in U.S. LNG exports mainly resulted from Freeport
LNG’s return to service as global LNG demand remained strong with continuing growth, particularly
in Europe.
Like in 2022, EU countries (Europe) and the UK remained the main destination for U.S. LNG exports
in 1H23, accounting for 67% (7.7 Bcf/d) of total U.S. exports. Five countries—the Netherlands, the
UK, France, Spain, and Germany—imported more than one-half (6.0 Bcf/d) of total U.S. LNG
exports.
U.S. LNG exports set a monthly record of 12.4 Bcf/d in April as Freeport LNG ramped up LNG
production and as Europe and the UK continued to increase LNG imports to compensate
for reduced pipeline imports from Russia and to refill storage inventories.
Europe and the UK’s regasification capacity continued to expand in 2023 as new terminals were
placed in service in Finland, Germany, Italy, and Spain, allowing those countries to import more

LNG. After a mild winter, Europe and the UK ended the 2022–23 heating season with the most
natural gas in storage on record, and the region continued importing LNG to rapidly refill its storage
inventories in the spring and summer.
In the first six months of this year, Europe and the UK’s LNG imports exceeded imports by pipeline
for the first time on record, according to data from Refinitiv Eikon. Europe and the UK’s LNG imports
averaged 15.9 Bcf/d, 0.1 Bcf/d more than that region's imports by pipeline from all sources.
In 2022, LNG imports to the region averaged 14.9 Bcf/d annually, 28% (5.8 Bcf/d) less than natural
gas imports by pipeline. Europe and the UK’s LNG imports peaked in April 2023 at 18.0 Bcf/d and
remained above natural gas imports by pipeline from April through June 2023.

Winter LNG demand pops up from China; Japan, South Korea
remain quiet …….. S&P Glopal
The Asian LNG market has started to see demand for winter popping up from China as the fourth
quarter approaches, while Japanese and South Korean buyers are taking a wait-and-see stance,
market sources said in the week started Sept. 11.
Sources said the market still has enough supply to meet demand at the moment while the supply
might tighten in the coming months.
Unipec, a trading arm of Chinese national oil company Sinopec, has issued a tender to buy up to
25 LNG cargoes from October 2023 to December 2024, out of which, 13 cargoes are to be delivered
in the fourth quarter, trading sources said.
"The 2023 cargoes are a lot, so probably for winter preparation," said a Singapore-based trader.
"The 2024 cargoes are likely for trading."
China typically boosts LNG imports in the fourth quarter. The country imported 14.626 million mt of
LNG in the third quarter of 2022, which jumped to 17.957 million mt in the fourth quarter of 2022, up
22.8% from the third quarter, according to S&P Global Commodity Insights data.
However, China's second-tier buyers are slow to jump into the spot market due to high
prices.According to several second-tier Chinese buyers, they are currently unable to afford spot or
winter cargoes at prevailing market prices due to concerns about potential losses.
"Downstream activity in China has picked up slightly, but we are buying mainly to ensure enough
supply for heating in winter," a Chinese importer said.
 China's Unipec seeks 15 cargoes for Q4 delivery
 Uncertainty in Chevron's Australia operations could lead to spot purchases
 Japan and South Korea remain inactive

As a result, it is anticipated that demand from these buyers might only pick up after November 2023.
Strike at Chevron's Wheatstone and Gorgon
Partial strikes at Chevron's Gorgon and Wheatstone LNG facilities started Sept. 8 after the company
failed to reach an agreement with the unions, and from Sept. 14, members are expected to stop
work completely for two weeks as part of the protected industrial action, S&P Global reported
previously.
Despite the strike, there are no cargoes canceled, while Chevron has not been seeking alternative
cargoes as of Sept. 13, market sources said. "Haven't heard any activities [from Chevron]. But I am
worried about the market as the complete strike will start tomorrow," said a second Singapore-based
trader Sept. 13.
"Buyers are likely to buy more cargoes [to prepare for supply cut]. It is easier to buy cargoes now
as the prompt market is relatively weak," said a Middle-East-based trader.
Japan and South Korea yet to start winter procurement
Japan and South Korea are yet to start winter procurement at the moment, market sources said.
Two Japanese utilities Tohoku Electric and Kansai Electric bought October cargoes in September.
Tohoku bought the cargo to make up for a stock decline caused by the hot summer and a drop in
output from hydropower plants. Kansai's purchase is likely due to a rise in the wholesale power
price so that the power utility can sell electricity in the market, said traders.
Japanese utilities are not active in the spot market, market sources said.
Meanwhile, South Korea has been notably reserved in its procurement activities in recent months,
after KOMIPO secured an October cargo in August. South Korean buyers' careful stance can be
linked to their evaluation of the situation, which suggests that there is ample inventory and supply
equilibrium, as communicated by industry sources in South Korea.
Market sources have reported high inventory levels at KOGAS terminals, with tank-top situations
being closely monitored. Additionally, the continued high production of solar power allows coal and
natural gas power plants to be switched off during weekends, reducing the urgency for Korean
buyers to procure spot cargoes.
"The Korean market is expected to remain well-balanced until the end of November, with some
major importers possibly showing
interest in buying for December and
beyond," a source said. However,
multiple trade sources suggest that
winter procurement demand may
be lower than anticipated unless a
cold temperature forecast is
confirmed.
Market sources indicate that South
Korean importers including
GENCOs are currently in the
process of finalizing their demand
volumes for the upcoming winter
season, covering the period from
December 2023 to March 2024.

NewBase September 14 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil steady as markets refocus on supply tightness, WTI near $90
Reuters + NewBase
Oil prices rebounded on Thursday as markets turned their attention back to a tighter crude supply
outlook for the rest of 2023 with demand set to stay robust through to next year.
Brent crude futures rose 46 cents, or 0.5%, to $92.34 a barrel at 0600 GMT. U.S. West Texas
Intermediate crude (WTI) climbed 48 cents, or 0.54%, to $89.00.
Fears of deficient supplies are underpinning oil prices as producers "adamantly stick to restricted
production", said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Saudi Arabia and Russia's extension of oil output cuts to the end of 2023 will mean a substantial
market deficit through the fourth quarter, the International Energy Agency (IEA) said on Wednesday,
as it largely stuck by its estimates for demand growth this year and next.
The lack of cuts at the start of 2024 would shift the balance to a surplus, the agency said, though it
added that stocks will be at uncomfortably low levels.
Oil price special
coverage

Elsewhere, the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday retained its
forecasts for robust growth in global oil demand in 2023 and 2024.
"The oil market looks decidedly tight over the next two to three quarters as supply constraints persist
amid robust demand," said analysts at ANZ Research.
"We expect ongoing geopolitical risks and the uncertain economic backdrop to lead Saudi Arabia to
maintaining these production cuts into Q1 2024," they added.
Both benchmarks touched 10-month highs on Wednesday, before data showed a surprise build in
U.S. crude and fuel inventories that worried markets about demand.
U.S. crude inventories rose by 4 million barrels last week, confounding analysts' expectations in a
Reuters poll for a 1.9 million-barrel drop. Fuel inventories also rose more than expected as refiners
stepped up activity.
On the economic front, the latest reading of U.S. inflation bolstered expectations the Federal
Reserve will not raise interest rates next week and could extend its pause further, buoying hopes of
strong oil demand.
Higher interest rates increase borrowing costs for businesses and consumers, which could slow
economic growth and reduce oil demand.

Oil prices are at 10-month highs.
West Texas Intermediate crude, the U.S. oil benchmark, has jumped 32% since its lows of the
summer, to nearly $90 a barrel. Oil prices are hovering around 10-month highs, as a stout summer
rally extends into the fall and delivers additional gains for the Club's energy stocks, Pioneer Natural
Resources (PXD) and Coterra Energy (CTRA).
And Jim Cramer believes it's not too late to buy either of them. West Texas Intermediate crude, the
U.S. oil benchmark, has jumped 32% since its lows of the summer on June 12, to nearly $89 a
barrel.
Meanwhile, global oil standard Brent crude has climbed 28%, to around $92 a barrel. Both WTI and
Brent on Tuesday settled at their highest levels since November. Over the same stretch since June
12, Pioneer stock has risen 17.1%, while Coterra gained 16.4%.
That makes them the fifth and sixth best-performing Club stocks during that time — ahead of artificial
intelligence winner Nvidia (NVDA), but behind pharmaceuticals giant Eli Lilly (LLY). Coterra on
Tuesday closed at its highest level of the year, at $28.47 per share.
Pioneer is about 3% off its 2023 peak of $243 per share, reached on Sept. 5. "I think that it is not
too late to buy either of these," Jim Cramer noted on Tuesday. The rise in oil prices largely boils
down to a mismatch between supply and demand.

NewBase Specual Coverage
The Energy world –September 14 -2023
CLEAN ENERGY
IEA sees 'beginning of the end' of fossil fuel era
IEA + NewBase, Agence France-Presse (AFP)
The IEA's annual World Energy Outlook, due out next month, will show that "the world is on the
cusp of a historic turning point" For the first time, world demand for oil, gas and coal is forecast to
peak this decade due to the "spectacular" growth of cleaner energy technologies and electric cars,
the International Energy Agency's chief said Tuesday.
The IEA's annual World Energy Outlook, due out next month, will show that "the world is on the
cusp of a historic turning point", executive director Fatih Birol wrote in a column in the Financial
Times.
The shift will have implications for the battle against climate change as it will bring forward the peak
in greenhouse gas emissions, Birol said. "Fossil fuels will be with us for many years to come -- but
looking at our numbers, we may be witnessing the beginning of the end of the fossil fuel era," Birol
said in separate comments released by the IEA.
Birol said the change is mostly driven by the "spectacular growth" of clean energy technologies and
electric vehicles, along with structural changes in the Chinese economy and the fallout from the
energy crisis.

Birol warned, however, that the projected declines in oil, gas and coal demand are "nowhere near
steep enough to put the world on a path to limiting global warming" to 1.5 degrees Celsius -- the
preferred target under the Paris Agreement.
Meeting this goal "will require significantly stronger and faster policy action by governments", he
added.
- UN warning -
The fate of fossil fuels will be at the heart of the debates at the UN's COP28 climate summit in
Dubai, a major oil producer, between November 30 and December 12.
In a progress report on Friday, the United Nations warned that the world was "not on track" to meet
the long-term goals of the Paris Agreement.
Global greenhouse gas emissions must peak by 2025 and drop sharply thereafter to keep the 1.5C
target in view, the report said.
Phasing out fossil fuels whose emissions cannot be captured or compensated is also required to
achieve the goal of net-zero carbon emissions by 2050, the UN said.
The IEA already predicted in a report in June that a peak global oil demand was "in sight" before
the end of the decade, but it is the first time that it makes such an assessment for coal and gas.
"Our latest projections show that the growth of electric vehicles around the world, especially in
China, means oil demand is on course to peak before 2030," Birol said Tuesday.
After staying "stubbornly high" for the past decade, coal demand is set to peak "in the next few
years", he said.
And the "Golden Age of Gas" -- first called by the IEA in 2011 -- "is now nearing an end", with
demand set to fall in advanced economies later this decade, Birol added.
"This is the result of renewables increasingly outmatching gas for producing electricity, the rise of
heat pumps and Europe's accelerated shift away from gas following Russia's invasion of Ukraine,"
he said.
- Transition 'firmly advancing' -
Simone Tagliapietra, a climate expert and senior fellow at the Bruegel think tank in Brussels, said
that the IEA's new projections "illustrate that while still to slow, the global energy transition is firmly
advancing".
"As technologies like wind and solar are now cost competitive, the transition moves from being
policy-driven to being technology-driven," he said.
"This is a key feature, as it protects the process from political headwinds."
Analysts at Royal Bank of Canada said in a note that the IEA's new projections highlight the
"success in pro-renewables legislation".
"Despite this, there is still scope for policymakers to do more to accelerate the energy transition and
the phase-out of fossil fuels, with debates continuing across major economies in areas such as
renewable returns and affordability," the RBC analysts said.

NewBase Energy News 14-September - Issue No. 1656 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 14 September 2023 Energy News issue - 1656 by Khaled Al Awadi.pdf

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