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NewBase Energy News 22 May 2023 No. 1622 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Masdar plans huge increase in clean energy capacity
TradeArabia News Service + NewBase
Abu Dhabi Future Energy Company (Masdar) has nearly doubled its clean energy capacity and
CO2 displacement in the space of two years, and is on track to become one of the world’s largest
renewable energy companies by 2030.
Masdar achieved a clean energy capacity of 20 GW in 2022, generated 18,000 GWh of clean energy
and displaced 10 million tonnes of CO2, says Masdar’s Sustainability Report, which covers its global
operations for 2022 and highlights the launch of a Green Finance Framework, as well as the
company’s commitment to health and safety, and the achievements for programmes involving
women and young people.
In addition to green financing, Masdar’s Sustainability Report emphasised the company’s
commitment to become a global green hydrogen leader with plans to produce up to 1 million tonnes
of green hydrogen per annum by 2030.
Green hydrogen
Masdar is focused on meeting green hydrogen demand domestically and internationally by targeting
key segments, including aviation, ammonia, steel, maritime, power, refining and heavy-duty
transportation.
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Masdar is active in more than 40 countries across six continents and has invested, or committed to
invest, in worldwide projects with a combined value of more than $30 billion.
The Sustainability Report provides clear evidence of the UAE’s commitment to climate action and
its credentials as a clean energy champion as it prepares to host COP28 later this year. With
significant agreements and projects in the pipeline, Masdar is set to play a major role in the overall
success of the UAE’s Year of Sustainability in 2023.
Key deals
In 2022, Masdar signed several significant agreements in new and existing markets including
Uzbekistan, Azerbaijan, Egypt, Jordan, Kyrgyzstan, Turkmenistan, and Tanzania. The Sharjah
Waste-to-Energy project, the first commercial scale waste to energy project in the Middle East was
inaugurated in partnership with BEEAH, and work continued on the Al Dhafra Solar Photovoltaic
(PV) Independent Power Producer Project, set to be the world’s largest single-site solar power plant
upon completion.
Masdar has developed a Green Finance Framework to guide all future financing activities –
including plans to become an issuer of Green Bonds in the debt capital markets – and to highlight
Masdar’s significant contribution to sustainability and alignment with best financial industry
practices.
Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of
Masdar and COP28 President-Designate, said: “In the past 17 years, Masdar became one of the
world’s largest renewable energy investors and drivers of the energy transition. Our momentum will
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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
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see us accelerate global clean energy growth, expand our renewable energy footprint, and play a
vital role in delivering the UAE’s Net Zero by 2050 strategic initiative.
Impactful year
“Our 2022 report shows just what an impactful year it has been for Masdar and our ESG and
sustainability ambitions. As the UAE prepares to host COP28, we are keen to collaborate with all
parties to help the world triple renewable energy capacity by 2030 and achieve the goals of the
Paris Agreement. As such Masdar will continue to contribute to the advancement of renewable
energy and sustainable development around the world.”
Mohamed Jameel Al Ramahi Chief Executive Officer, Masdar, said: “2022 was a pivotal year in our
legacy of growth. We officially welcomed Adnoc and Taqa as Masdar’s shareholders alongside
Mubadala, setting out on an ambitious course to grow our clean energy capacity to 100 GW and 1
million tonnes per year of green hydrogen production by 2030.
“Throughout our history, Masdar has proven to be a pioneering force for sustainable change. With
a uniquely talented team and a strong network of partners behind us, the future promises to be even
brighter for Masdar, the UAE, and the world.”
Sustainable financing
Niall Hannigan, Chief Financial Officer, Masdar, said: “Sustainable financing is more in demand
than ever. Through our work we are creating opportunities for financial institutions to become part
of the green financing agenda and to really put sustainable investments at the core of everything
they do.
“Every dollar of debt capital we raise will be deployed into developing green projects across the
globe to the highest ESG standards, and a substantial proportion of that deployment will be in
developing countries.”
Highlighting the increasing role for women in the company, Masdar’s Sustainability Report also
revealed nearly 25% of all women employed by Masdar are in supervisory roles, and at the youth
level, Masdar’s Youth 4 Sustainability (Y4S) platform is seeking to reach one million young people
by 2030 through its blended learning experience.
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U.A.E: Dubai completes work on key biogas-to-energy project
Trade Arabia + NewBase
Dubai Municipality has announced the completion of its biogas-to-energy project at its Warsan
Wastewater Treatment Plant.
The project is one of the Municipality’s renewable energy initiatives that support its strategic plan to
transform its assets into green sustainable assets. It has the capacity to generate 44,250 MWh of
electricity annually.
The biogas power facility’s daily power generation capacity of 6 MW will cover 50% of the Warsan
Wastewater Treatment Plant’s entire operational needs.
The Municipality completed the project in partnership with the private sector, in line with the
directives of the Dubai Government to foster productive private-sector partnerships that generate
effective solutions for energy needs, reported Wam.
The project will contribute to providing sustainable solutions by utilising alternative energy sources,
further reducing annual carbon emissions by 31,000 tonnes, in addition to decreasing the plant’s
operational cost by AED320 million over 25 years, it stated.
Dawoud Al Hajri, Director General of Dubai Municipality, said: "The biogas project is one of Dubai
Municipality’s key initiatives aimed at generating renewable energy from sustainable and clean
resources in partnership with the private sector."
"“By enabling the plant to support itself with the power required for its operations, the initiative serves
the major pillars of Dubai Municipality’s strategy such as the circular economy and sustainability, in
addition to raising the cost-effectiveness of its operations," noted Al Hajri.
"This reflects Dubai Municipality's strategy for implementing innovative and environmentally friendly
projects. The plant also embodies the Municipality’s commitment to implementing projects and
adopting solutions that promote sustainability in Dubai and support its vision to be the world’s best
city to live in," he added.
According to him, the Warsan Wastewater Treatment Plant produces 57,000 cu m of biogas per
day as a result of its treatment procedures. Through the project, approximately 54,800 cu m per day
will be used to produce 121 MWh of electricity, meeting 50% of the Warsan plant’s needs. The
project stands out for having fully automated operations with more than 350 tools that continuously
monitor operations 24/7," he added.
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Oman is now the 2nd largest exporter of LNG in Arab world
Oman Times News Service + NewBase
The Sultanate of Oman is the second largest exporter of natural gas in the Arab world, said the
Organisation of Arab Petroleum Exporting Countries, OAPEC.
A report issued by the Organisation of Arab Petroleum Exporting Countries “OAPEC” confirmed
today in Kuwait that the Sultanate of Oman’s total exports of liquefied gas during the first quarter of
2023 amounted to about 3.1 million tonnes, compared to about 2.9 million tonnes during the same
period in 2022.
The report added that the Sultanate of Oman's exports of liquefied natural gas increased by 6.9%,
which is the third highest growth rate in the Arab countries.
It also stated that the gas liquefaction units of the Oman LNG Company in Qalhat are operating at
full production capacity, which, after removing bottlenecks, reached 11.5 million tons per year.
The report confirmed that with these high levels of exports, Oman has become the second largest
exporter of liquefied natural gas at the level of the Arab countries, after the State of Qatar.
At the global level, the report stated that LNG exports reached a record high during the first quarter
of 2023, after reaching 104.5 million tons, compared to 98.5 million tons in the corresponding period
of 2022.
The report explained that Arab countries' exports of liquefied natural gas increased during the first
quarter of 2023 to reach 29.5 million tons, with a growth rate of 7.1 percent.
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Algeria: Petrofac led JV selected for US$1.5 billion EPC project
Source: Petrofac
 A Petrofac-led joint venture has been notified of a conditional award by STEP Polymers SPA (100% Sonatrach
subsidiary) for a petrochemical engineering, procurement and construction (EPC) contract valued at approx.
US$1.5 billion
 This is a significant downstream project, which will form part of the Arzew Industrial Zone, located west of
Algiers, supporting Algeria’s energy strategy
 The award broadens Petrofac’s portfolio within the petrochemical sector and builds on its 25-year track record
in Algeria
Petrofac, leading a joint venture with petrochemical industry specialist, China Huanqiu Contracting
& Engineering Corporation (HQC), has received notification of a conditional award by STEP
Polymers SPA (100% Sonatrach subsidiary) to execute a significant petrochemical project in
Algeria. The total contract value is approx. US$1.5 billion, with Petrofac’s share valued at over US$1
billion.
The plant will be located at the Arzew Industrial Zone, west of Algiers. Covering the design and build
of two major integrated processing units, the contract includes the delivery of a new propane
dehydrogenation unit and polypropylene production unit, as well as associated utilities and
infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year.
Tareq Kawash, Petrofac’s Group Chief Executive, said: 'We are proud to be supporting our
customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed
to supporting the long-term delivery of critical infrastructure as the country plays an increasingly
important role as a major energy producer and moves into major petrochemical projects.'
Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division,
said: 'The award of this major project builds on Petrofac’s 25-year track record of successfully
supporting Algeria’s energy industry. As our client responds to the world’s increasing demand for
petrochemical products, we are looking forward to developing our breadth of experience in-country,
through the safe and timely delivery of this project.'
Petrofac has been active in Algeria since 1997, when it opened its first office in Algiers. The company has
since developed some of the country’s most significant oil and gas assets, with an impressive track record
in executing projects successfully, underpinned by a commitment to supporting the nationalisation agenda
and developing local workforces.
This contract award forms part of the US$1.5 billion of opportunities described by Petrofac as being at
preferred bidder stage in its December trading update.
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Korean group closes deal for 500MW Oman solar project
OPWP + NewBase
Leading South Korean group Kowepo (Korea Western Power) said it has officially signed the
contract with Oman Power and Water Procurement Company (OPWP) for the development of a
500 MW solar plant in the Manah region of the sultanate.
The project is for establishment of a 1,000 MW solar power plant in the Manah region. The project
was awarded by OPWP in two separate orders in 2019 - Manah 1 (500MW) and Manah 2 (500MW).
Once completed, it will be the largest solar power plant in Oman, reported Business Korea.
The Manah 1 solar power project will be developed by Kowepo and its French partner EDF-R at an
investment of 600 billion won ($452 million), while Manah 2 will be taken care of by a consortium of
Jinko Power from China and Sembcorp from Singapore.
Work on the project will begin in November and is due for completion in March 2025.
As per the deal, Western Power will also be responsible for the operation and maintenance (O&M)
of the solar power plant.
The electricity to be produced over the next 20 years is guaranteed to be purchased by OPWP, it added.
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Nigeria to commission Dangote refinery, crude supply a concern
Reuters + NewBase
Nigeria's Dangote Petroleum Refinery will be commissioned on Monday amid hopes of an end to
the country's recurring fuel shortages, but a lack of crude supply poses a major risk to it achieving
full production.
Despite being Africa's biggest oil producer, Nigeria imports petrol, diesel and processed petroleum
products because its refineries were run down over the years.
The government of outgoing President Muhammadu Buhari sees the 650,000 barrels a day (bpd)
refinery as the answer to repeated fuel shortages, the latest of which hit the country in the run up to
February's disputed presidential election.
Built by Africa's richest man, Aliko Dangote, the massive complex is one of Nigeria's single largest
investments. It has a 435 megawatt power station, deep seaport and fertiliser unit.
The cost of the refinery grew to $19 billion from initial estimates of between $12 billion and $14
billion, after years of delays.
Dangote expects to begin refining crude in June but London-based research consultancy Energy
Aspects said commissioning was an intricate process and expects operations to start later this year,
reaching 50-70% next year, with a staggered process of other units into 2025.
The refinery needs a constant supply of crude but Nigeria's oil production has been declining due
to oil theft, vandalism of pipelines and underinvestment. In April, production fell under 1 million bpd,
below Angola's output.
 Refinery is one of Nigeria's single largest investments
 Low crude production a threat to refinery supplies
 Refinery seen changing Atlantic basin gasoline market
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Lower production would affect state-owned oil company NNPC Ltd's ability to fulfil an agreement to
supply Dangote refinery with 300,000 bpd of crude, said economist Kelvin Emmanuel, who authored
a report on oil theft last year.
NNPC, with a 20% stake in the refinery, has production sharing agreements with oil majors like
Exxon Mobil, Shell and Eni and is entitled to a portion of the crude, which it also swaps with traders
for petrol and diesel.
The refinery has not signed an agreement to buy from oil majors in Nigeria.
That could see Dangote importing crude from traders like Trafigura and Vitol, Emmanuel said, at a
time local refining was expected to save foreign exchange and keep prices lower.
"There are risks with supply of crude oil feedstock. I know that his (Aliko Dangote) risk mitigation is
to import oil and if he does that there is a risk to the price because he cannot be buying in dollars
and sell in naira," said Emmanuel.
Nigeria runs a petrol subsidy that the finance minister has said could run past June, when it was
expected to be scrapped. The subsidy took nearly a third of Nigeria's national budget last year.
Energy Aspects, however, said in the long run, the Dangote refinery could end Nigeria's gasoline
deficit, reshape the Atlantic basin gasoline market and export diesel that meets European Union
specifications.
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U.S: Texas and New Mexico led U.S. crude oil production in 2022
Data source: U.S. Energy Information Administration, Crude Oil and Natural Gas Production
U.S. crude oil production grew 5.6%, or 0.6 million barrels per day (b/d), in 2022 compared with
2021, averaging 11.9 million b/d according to our Monthly Crude Oil and Natural Gas
Production report. The two states the Permian Basin spans—Texas and New Mexico—contributed
the most growth to U.S. crude oil production in 2022.
The Permian Basin, a productive oil basin located on the border of West Texas and eastern New
Mexico, leads in oil production for these two states. In 2022, for the third consecutive year, crude
oil production grew more in New Mexico than in any other U.S. state. New Mexico production grew
by 0.3 million b/d to 1.6 million b/d, a record for the state.
Crude oil production in the rest of the United States grew by 0.6% (33,000 b/d). Of the eight
remaining states with 0.1 million b/d or more of oil production in 2022, production increased from
2021 in five states and decreased in three states.
Production in California decreased for the eighth consecutive year, and production in Alaska
decreased for the fifth consecutive year. In North Dakota, which had been one of the leading states
in oil production growth in the past decade, production declined for the third consecutive year in
2022.
More drilling activity leads to more oil production growth, and we follow the number of active drilling
rigs reported by Baker Hughes. Based on this data, the number of land rigs increased by 8 in New
Mexico, by 100 in Texas, and by 85 in all other states combined in 2022.
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In 2023, through the first week of May, the number of land rigs decreased in Texas by 8 and
increased in New Mexico by 5.
Data source: Baker Hughes North America Rig Count
U.S. crude oil production continued to grow year over year by an average 1.2 million b/d in January
and February 2023. We forecast U.S. crude oil production will continue to increase in 2023 and
2024. In our May Short-Term Energy Outlook, we forecast total U.S. crude oil production will climb
to 12.5 million b/d in 2023 and to 12.7 million b/d in 2024.
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NewBase May 22 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil slips as U.S. debt caution offset supply concerns
Reuters + NewBase
Oil prices slipped on Monday as caution around the U.S. debt ceiling talks and concerns about
demand recovery in China offset support from lower supplies from Canada and OPEC+ producers.
Brent crude futures fell 48 cents, or 0.6%, to $75.10 a barrel by 0201 GMT while U.S. West Texas
Intermediate (WTI) crude for July delivery, the more actively traded contract, fell 45 cents, or 0.6%,
to $71.24.
The June WTI contract , which expires later on Monday, fell 52 cents to $71.03 a barrel.
The resumption of U.S. debt ceiling negotiations later on Monday will remain a key driver for crude
and risk sentiment this week, IG's Sydney-based analyst Tony Sycamore said. The U.S. is the
world's biggest oil consumer.
Investors were also concerned that China's recovery is faltering after weak economic data reports
in the past two weeks, he added.
Oil price special
coverage
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"If the housing market continues to fall and policymakers fail to respond, the risk of a double-dip
China slowdown increases, which spells bad news for crude oil consumption and demand,"
Sycamore said. China is the world's top crude importer and No. 2 oil consumer.
Last week, both oil benchmarks gained about 2%, their first weekly gain in five, after wildfires shut
in large amounts of crude supply in Alberta, Canada.
The impact of voluntary production cuts by the Organization of the Petroleum Exporting Countries
(OPEC) and its allies including Russia, known as OPEC+, is also being felt after going into effect
this month, analysts from Goldman Sachs and JP Morgan said.
Total exports of crude and oil products from the group plunged by 1.7 million barrels per day (bpd)
by May 16, JP Morgan said, adding that Russian oil exports will likely fall by late May.
On Saturday, the Group of Seven (G7) nations pledged at its annual leaders' meeting to enhance
efforts to counter Russia's evasion of the price caps on its oil and fuel exports "while avoiding
spillover effects and maintaining global energy supply", but did not provide details.
Such enhancements are not expected to change the supply situation for crude and oil products, the
International Energy Agency's (IEA) Executive Director Fatih Birol said, adding that the agency was
sticking to its analysis for now.
In its latest monthly report, the IEA warned of a looming shortage in the second half when demand
is expected to eclipse supply by almost 2 million bpd.
"It remains to be seen if the new curbs will impact Russian oil production as the Russians have been
very effective in finding ways around European and U.S. sanctions and the sanctions have proved
difficult to enforce," Sycamore said.
The U.S. oil rig count fell by 11 to 575 in the week to May 19, the biggest weekly drop since
September 2021, energy services firm Baker Hughes Co (BKR.O) said.
"A slowdown in U.S. drilling activity is a concern for the oil market, which is expected to see a
sizeable deficit over the second half of this year," ING said.
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UAE’s ADNOC Explores Introducing New Heavier Crude Grade
The biggest oil producer in the United Arab Emirates is exploring the idea of selling a new, heavier
crude grade as the company revamps the way it trades barrels in an effort to maximize profit.
Abu Dhabi National Oil Co. could introduce the blend — which would likely come from several
offshore deposits — toward the end of next year at the earliest, according to people with knowledge
of the situation. The new grade may be named Ghasha after one of the offshore fields and would
be introduced once those developments ramp up output.
The company is gauging market demand for the new variant and trying to determine if there is
sufficient flow to warrant it, said the people, asking not to be identified when discussing confidential
deliberations. Adnoc declined to comment.
Creating the new grade could help ensure the quality of Adnoc’s other offshore crudes by weeding
out heavier barrels. It could also fill a market niche for crude that’s not as light as the UAE’s other
oil blends, according to the people. The company may also decide not to go ahead with the new
grade, they said. In that case, it would be mixed with one of the existing grades.
The UAE, the third-largest producer in the Organization of Petroleum Exporting Countries, has used
its oil wealth to build a business, leisure and transport hub in the region. Adnoc is spending billions
to boost crude production capacity by about a quarter, to 5 million barrels a day by 2027, as it
expands its natural gas and chemicals industry and looks for ways to make those businesses less
polluting.
Adnoc has allowed its flagship Murban crude to be freely traded on an exchange in Abu Dhabi since
2021 and wants to have the Upper Zakum grade bought and sold in the same way, Bloomberg has
reported. Murban, with capacity of about 2 million barrels daily, comes from Abu Dhabi’s onshore
fields, while Upper Zakum is produced at offshore fields along with Das and Umm Lulu crudes,
which are pumped in smaller quantities.
The company is seeking to have Murban trade as a benchmark, alongside Brent.
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NewBase Specual Coverage
The Energy world –May -22 -2023
CLEAN ENERGY
Europe’s energy market faces 3 key challenges this year,
the IEA’s chief says
Charmaine Jacob@CHARMAINEMJACOB
KEY POINTS
 Europe may have done a good job in reducing its dependency on Russian oil and gas and
mitigating an energy crisis caused by the war in Ukraine but it’s “not out of the woods” yet,
the head of the International Energy Agency (IEA) told CNBC.
 Rising demand from China and an ongoing reliance on Russian energy still present
challenges, however.
Europe is ‘not out of the woods’ and still faces energy challenges, says IEA
Europe may have done a good job in reducing its dependency on Russian oil and gas and mitigating
an energy crisis caused by the war in Ukraine but it’s “not out of the woods” yet, the head of the
International Energy Agency (IEA) told CNBC.
“Europe was able to transform its energy markets, reduce its share of Russian gas to less than 4%,
and its economy still didn’t go through a recession,” Fatih Birol, the IEA’s executive director told
CNBC’s Martin Soong on Sunday.
“Europe emissions have declined 
 and gas storage is at very decent levels,” Birol said, speaking
on the sidelines of the Group of Seven summit in Hiroshima, Japan. Russia has traditionally played
a pivotal role in the world’s energy complex, but Western nations’ reliance on the country’s energy
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has been severely reduced as they continue to unveil new sanctions to punish Russia for its ongoing
invasion of Ukraine.
“Europe countries did a good job... last winter,” the IEA chief said, highlighting that the region
managed to successfully keep the lights on and kept a winter crisis at bay, thanks in part to a milder
than expected winter.
Birol warned that the region’s energy market still has three main hurdles to overcome this year,
however.
1. Rising demand from China
The world’s energy supply was abundant last year when China was still under lockdown and bought
less oil and gas due to a slowdown in economic activity. However, the same cannot be said now
and Europe may face a more challenging winter this year.
LNG (liquefied natural gas) demand from China is expected to pick up in the second half of the year,
Birol said, adding that gas imports to the country is a “key determiner” of demand for natural gas
markets.
But Birol believed there could be a silver lining — prices could be milder than predicted and he does
not expect to see a “big boom” of imports from China.
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The Russian oil price cap is ‘actually working,’ says Dan Yergin
Nonetheless, there is a different narrative playing out for the country’s oil story, he said.
China’s exit from its zero-Covid policy in December has caused energy demand to increase, with the
IEA forecasting that global oil demand will increase by more than 2 million barrels per day this year.
It’s no surprise that China, the world’s second biggest oil importer after the U.S., will account for
nearly 60% of the rise in demand, Birol noted.
2. U.S. debt default
Global energy market participants are also keeping a close eye on fractious negotiations between
the White House and Republicans over the U.S. debt ceiling. Without a deal, the U.S. could face
default in early June although this is seen as unlikely.
Negotiations were paused while President Biden attended the G-7 summit in Japan but he’s due
to return to Washington, D.C. on Sunday. The president said at a press conference at the summit
that he’s “not at all” concerned about the negotiations and that “we’ll be able to avoid a default and
we’ll get something decent done.”
Birol said a U.S. debt default would cause oil demand and prices to drop, but agreed that such a
scenario was unlikely.
“I would avoid giving you a precise
number, but we could expect a
significant drop in the oil price if we see
such a default.”
“This issue in the United States will be
dealt with and common sense will
prevail. And I don’t see a major risk for
the global oil markets. But of course, oil
markets are always involved with risks.”
he added.
Oil prices rebounded on Friday from
losses of more than 1% the previous day
as investors turned cautiously optimistic
that the risks of a U.S. debt default were
easing as talks continued.
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
3. Reliance on Russia still remains
Another key challenge facing Europe’s energy markets is that their dependency on Russian gas
has not been completely eradicated and the outlook for supply is uncertain.
Many countries in the region were forced into an energy crisis last year when imports of Russian
gas were severely reduced.
Gas exports from Russian state energy giant Gazprom to Switzerland and the EU fell by 55% in
2022, the company said in January. Birol noted that if there were further reductions in gas imports
“for political reasons,” Europe could again face “some challenges” in the coming winter.
Birol believed G-7 and European countries will not go back into making any agreements with Russia,
adding that Russia’s gas story is “finished.” “It’s over,” he said.
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
NewBase Energy News 22-May 2023 - Issue No. 1622 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.
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 20
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 21

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NewBase 22 May-2023 Energy News issue - 1622 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 22 May 2023 No. 1622 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Masdar plans huge increase in clean energy capacity TradeArabia News Service + NewBase Abu Dhabi Future Energy Company (Masdar) has nearly doubled its clean energy capacity and CO2 displacement in the space of two years, and is on track to become one of the world’s largest renewable energy companies by 2030. Masdar achieved a clean energy capacity of 20 GW in 2022, generated 18,000 GWh of clean energy and displaced 10 million tonnes of CO2, says Masdar’s Sustainability Report, which covers its global operations for 2022 and highlights the launch of a Green Finance Framework, as well as the company’s commitment to health and safety, and the achievements for programmes involving women and young people. In addition to green financing, Masdar’s Sustainability Report emphasised the company’s commitment to become a global green hydrogen leader with plans to produce up to 1 million tonnes of green hydrogen per annum by 2030. Green hydrogen Masdar is focused on meeting green hydrogen demand domestically and internationally by targeting key segments, including aviation, ammonia, steel, maritime, power, refining and heavy-duty transportation. ww.linkedin.com/in/khaled-al-awadi-80201019/
  • 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 Masdar is active in more than 40 countries across six continents and has invested, or committed to invest, in worldwide projects with a combined value of more than $30 billion. The Sustainability Report provides clear evidence of the UAE’s commitment to climate action and its credentials as a clean energy champion as it prepares to host COP28 later this year. With significant agreements and projects in the pipeline, Masdar is set to play a major role in the overall success of the UAE’s Year of Sustainability in 2023. Key deals In 2022, Masdar signed several significant agreements in new and existing markets including Uzbekistan, Azerbaijan, Egypt, Jordan, Kyrgyzstan, Turkmenistan, and Tanzania. The Sharjah Waste-to-Energy project, the first commercial scale waste to energy project in the Middle East was inaugurated in partnership with BEEAH, and work continued on the Al Dhafra Solar Photovoltaic (PV) Independent Power Producer Project, set to be the world’s largest single-site solar power plant upon completion. Masdar has developed a Green Finance Framework to guide all future financing activities – including plans to become an issuer of Green Bonds in the debt capital markets – and to highlight Masdar’s significant contribution to sustainability and alignment with best financial industry practices. Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, said: “In the past 17 years, Masdar became one of the world’s largest renewable energy investors and drivers of the energy transition. Our momentum will
  • 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 see us accelerate global clean energy growth, expand our renewable energy footprint, and play a vital role in delivering the UAE’s Net Zero by 2050 strategic initiative. Impactful year “Our 2022 report shows just what an impactful year it has been for Masdar and our ESG and sustainability ambitions. As the UAE prepares to host COP28, we are keen to collaborate with all parties to help the world triple renewable energy capacity by 2030 and achieve the goals of the Paris Agreement. As such Masdar will continue to contribute to the advancement of renewable energy and sustainable development around the world.” Mohamed Jameel Al Ramahi Chief Executive Officer, Masdar, said: “2022 was a pivotal year in our legacy of growth. We officially welcomed Adnoc and Taqa as Masdar’s shareholders alongside Mubadala, setting out on an ambitious course to grow our clean energy capacity to 100 GW and 1 million tonnes per year of green hydrogen production by 2030. “Throughout our history, Masdar has proven to be a pioneering force for sustainable change. With a uniquely talented team and a strong network of partners behind us, the future promises to be even brighter for Masdar, the UAE, and the world.” Sustainable financing Niall Hannigan, Chief Financial Officer, Masdar, said: “Sustainable financing is more in demand than ever. Through our work we are creating opportunities for financial institutions to become part of the green financing agenda and to really put sustainable investments at the core of everything they do. “Every dollar of debt capital we raise will be deployed into developing green projects across the globe to the highest ESG standards, and a substantial proportion of that deployment will be in developing countries.” Highlighting the increasing role for women in the company, Masdar’s Sustainability Report also revealed nearly 25% of all women employed by Masdar are in supervisory roles, and at the youth level, Masdar’s Youth 4 Sustainability (Y4S) platform is seeking to reach one million young people by 2030 through its blended learning experience.
  • 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 U.A.E: Dubai completes work on key biogas-to-energy project Trade Arabia + NewBase Dubai Municipality has announced the completion of its biogas-to-energy project at its Warsan Wastewater Treatment Plant. The project is one of the Municipality’s renewable energy initiatives that support its strategic plan to transform its assets into green sustainable assets. It has the capacity to generate 44,250 MWh of electricity annually. The biogas power facility’s daily power generation capacity of 6 MW will cover 50% of the Warsan Wastewater Treatment Plant’s entire operational needs. The Municipality completed the project in partnership with the private sector, in line with the directives of the Dubai Government to foster productive private-sector partnerships that generate effective solutions for energy needs, reported Wam. The project will contribute to providing sustainable solutions by utilising alternative energy sources, further reducing annual carbon emissions by 31,000 tonnes, in addition to decreasing the plant’s operational cost by AED320 million over 25 years, it stated. Dawoud Al Hajri, Director General of Dubai Municipality, said: "The biogas project is one of Dubai Municipality’s key initiatives aimed at generating renewable energy from sustainable and clean resources in partnership with the private sector." "“By enabling the plant to support itself with the power required for its operations, the initiative serves the major pillars of Dubai Municipality’s strategy such as the circular economy and sustainability, in addition to raising the cost-effectiveness of its operations," noted Al Hajri. "This reflects Dubai Municipality's strategy for implementing innovative and environmentally friendly projects. The plant also embodies the Municipality’s commitment to implementing projects and adopting solutions that promote sustainability in Dubai and support its vision to be the world’s best city to live in," he added. According to him, the Warsan Wastewater Treatment Plant produces 57,000 cu m of biogas per day as a result of its treatment procedures. Through the project, approximately 54,800 cu m per day will be used to produce 121 MWh of electricity, meeting 50% of the Warsan plant’s needs. The project stands out for having fully automated operations with more than 350 tools that continuously monitor operations 24/7," he added.
  • 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 Oman is now the 2nd largest exporter of LNG in Arab world Oman Times News Service + NewBase The Sultanate of Oman is the second largest exporter of natural gas in the Arab world, said the Organisation of Arab Petroleum Exporting Countries, OAPEC. A report issued by the Organisation of Arab Petroleum Exporting Countries “OAPEC” confirmed today in Kuwait that the Sultanate of Oman’s total exports of liquefied gas during the first quarter of 2023 amounted to about 3.1 million tonnes, compared to about 2.9 million tonnes during the same period in 2022. The report added that the Sultanate of Oman's exports of liquefied natural gas increased by 6.9%, which is the third highest growth rate in the Arab countries. It also stated that the gas liquefaction units of the Oman LNG Company in Qalhat are operating at full production capacity, which, after removing bottlenecks, reached 11.5 million tons per year. The report confirmed that with these high levels of exports, Oman has become the second largest exporter of liquefied natural gas at the level of the Arab countries, after the State of Qatar. At the global level, the report stated that LNG exports reached a record high during the first quarter of 2023, after reaching 104.5 million tons, compared to 98.5 million tons in the corresponding period of 2022. The report explained that Arab countries' exports of liquefied natural gas increased during the first quarter of 2023 to reach 29.5 million tons, with a growth rate of 7.1 percent.
  • 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 Algeria: Petrofac led JV selected for US$1.5 billion EPC project Source: Petrofac  A Petrofac-led joint venture has been notified of a conditional award by STEP Polymers SPA (100% Sonatrach subsidiary) for a petrochemical engineering, procurement and construction (EPC) contract valued at approx. US$1.5 billion  This is a significant downstream project, which will form part of the Arzew Industrial Zone, located west of Algiers, supporting Algeria’s energy strategy  The award broadens Petrofac’s portfolio within the petrochemical sector and builds on its 25-year track record in Algeria Petrofac, leading a joint venture with petrochemical industry specialist, China Huanqiu Contracting & Engineering Corporation (HQC), has received notification of a conditional award by STEP Polymers SPA (100% Sonatrach subsidiary) to execute a significant petrochemical project in Algeria. The total contract value is approx. US$1.5 billion, with Petrofac’s share valued at over US$1 billion. The plant will be located at the Arzew Industrial Zone, west of Algiers. Covering the design and build of two major integrated processing units, the contract includes the delivery of a new propane dehydrogenation unit and polypropylene production unit, as well as associated utilities and infrastructure for the site. It is expected to produce 550,000 tons of polypropylene per year. Tareq Kawash, Petrofac’s Group Chief Executive, said: 'We are proud to be supporting our customer to deliver this strategic project. Algeria is a core market for Petrofac and we are committed to supporting the long-term delivery of critical infrastructure as the country plays an increasingly important role as a major energy producer and moves into major petrochemical projects.' Elie Lahoud, Chief Operating Officer for Petrofac’s Engineering & Construction division, said: 'The award of this major project builds on Petrofac’s 25-year track record of successfully supporting Algeria’s energy industry. As our client responds to the world’s increasing demand for petrochemical products, we are looking forward to developing our breadth of experience in-country, through the safe and timely delivery of this project.' Petrofac has been active in Algeria since 1997, when it opened its first office in Algiers. The company has since developed some of the country’s most significant oil and gas assets, with an impressive track record in executing projects successfully, underpinned by a commitment to supporting the nationalisation agenda and developing local workforces. This contract award forms part of the US$1.5 billion of opportunities described by Petrofac as being at preferred bidder stage in its December trading update.
  • 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 Korean group closes deal for 500MW Oman solar project OPWP + NewBase Leading South Korean group Kowepo (Korea Western Power) said it has officially signed the contract with Oman Power and Water Procurement Company (OPWP) for the development of a 500 MW solar plant in the Manah region of the sultanate. The project is for establishment of a 1,000 MW solar power plant in the Manah region. The project was awarded by OPWP in two separate orders in 2019 - Manah 1 (500MW) and Manah 2 (500MW). Once completed, it will be the largest solar power plant in Oman, reported Business Korea. The Manah 1 solar power project will be developed by Kowepo and its French partner EDF-R at an investment of 600 billion won ($452 million), while Manah 2 will be taken care of by a consortium of Jinko Power from China and Sembcorp from Singapore. Work on the project will begin in November and is due for completion in March 2025. As per the deal, Western Power will also be responsible for the operation and maintenance (O&M) of the solar power plant. The electricity to be produced over the next 20 years is guaranteed to be purchased by OPWP, it added.
  • 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 Nigeria to commission Dangote refinery, crude supply a concern Reuters + NewBase Nigeria's Dangote Petroleum Refinery will be commissioned on Monday amid hopes of an end to the country's recurring fuel shortages, but a lack of crude supply poses a major risk to it achieving full production. Despite being Africa's biggest oil producer, Nigeria imports petrol, diesel and processed petroleum products because its refineries were run down over the years. The government of outgoing President Muhammadu Buhari sees the 650,000 barrels a day (bpd) refinery as the answer to repeated fuel shortages, the latest of which hit the country in the run up to February's disputed presidential election. Built by Africa's richest man, Aliko Dangote, the massive complex is one of Nigeria's single largest investments. It has a 435 megawatt power station, deep seaport and fertiliser unit. The cost of the refinery grew to $19 billion from initial estimates of between $12 billion and $14 billion, after years of delays. Dangote expects to begin refining crude in June but London-based research consultancy Energy Aspects said commissioning was an intricate process and expects operations to start later this year, reaching 50-70% next year, with a staggered process of other units into 2025. The refinery needs a constant supply of crude but Nigeria's oil production has been declining due to oil theft, vandalism of pipelines and underinvestment. In April, production fell under 1 million bpd, below Angola's output.  Refinery is one of Nigeria's single largest investments  Low crude production a threat to refinery supplies  Refinery seen changing Atlantic basin gasoline market
  • 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 Lower production would affect state-owned oil company NNPC Ltd's ability to fulfil an agreement to supply Dangote refinery with 300,000 bpd of crude, said economist Kelvin Emmanuel, who authored a report on oil theft last year. NNPC, with a 20% stake in the refinery, has production sharing agreements with oil majors like Exxon Mobil, Shell and Eni and is entitled to a portion of the crude, which it also swaps with traders for petrol and diesel. The refinery has not signed an agreement to buy from oil majors in Nigeria. That could see Dangote importing crude from traders like Trafigura and Vitol, Emmanuel said, at a time local refining was expected to save foreign exchange and keep prices lower. "There are risks with supply of crude oil feedstock. I know that his (Aliko Dangote) risk mitigation is to import oil and if he does that there is a risk to the price because he cannot be buying in dollars and sell in naira," said Emmanuel. Nigeria runs a petrol subsidy that the finance minister has said could run past June, when it was expected to be scrapped. The subsidy took nearly a third of Nigeria's national budget last year. Energy Aspects, however, said in the long run, the Dangote refinery could end Nigeria's gasoline deficit, reshape the Atlantic basin gasoline market and export diesel that meets European Union specifications.
  • 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 U.S: Texas and New Mexico led U.S. crude oil production in 2022 Data source: U.S. Energy Information Administration, Crude Oil and Natural Gas Production U.S. crude oil production grew 5.6%, or 0.6 million barrels per day (b/d), in 2022 compared with 2021, averaging 11.9 million b/d according to our Monthly Crude Oil and Natural Gas Production report. The two states the Permian Basin spans—Texas and New Mexico—contributed the most growth to U.S. crude oil production in 2022. The Permian Basin, a productive oil basin located on the border of West Texas and eastern New Mexico, leads in oil production for these two states. In 2022, for the third consecutive year, crude oil production grew more in New Mexico than in any other U.S. state. New Mexico production grew by 0.3 million b/d to 1.6 million b/d, a record for the state. Crude oil production in the rest of the United States grew by 0.6% (33,000 b/d). Of the eight remaining states with 0.1 million b/d or more of oil production in 2022, production increased from 2021 in five states and decreased in three states. Production in California decreased for the eighth consecutive year, and production in Alaska decreased for the fifth consecutive year. In North Dakota, which had been one of the leading states in oil production growth in the past decade, production declined for the third consecutive year in 2022. More drilling activity leads to more oil production growth, and we follow the number of active drilling rigs reported by Baker Hughes. Based on this data, the number of land rigs increased by 8 in New Mexico, by 100 in Texas, and by 85 in all other states combined in 2022.
  • 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 In 2023, through the first week of May, the number of land rigs decreased in Texas by 8 and increased in New Mexico by 5. Data source: Baker Hughes North America Rig Count U.S. crude oil production continued to grow year over year by an average 1.2 million b/d in January and February 2023. We forecast U.S. crude oil production will continue to increase in 2023 and 2024. In our May Short-Term Energy Outlook, we forecast total U.S. crude oil production will climb to 12.5 million b/d in 2023 and to 12.7 million b/d in 2024.
  • 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 May 22 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil slips as U.S. debt caution offset supply concerns Reuters + NewBase Oil prices slipped on Monday as caution around the U.S. debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers. Brent crude futures fell 48 cents, or 0.6%, to $75.10 a barrel by 0201 GMT while U.S. West Texas Intermediate (WTI) crude for July delivery, the more actively traded contract, fell 45 cents, or 0.6%, to $71.24. The June WTI contract , which expires later on Monday, fell 52 cents to $71.03 a barrel. The resumption of U.S. debt ceiling negotiations later on Monday will remain a key driver for crude and risk sentiment this week, IG's Sydney-based analyst Tony Sycamore said. The U.S. is the world's biggest oil consumer. Investors were also concerned that China's recovery is faltering after weak economic data reports in the past two weeks, he added. Oil price special coverage
  • 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 "If the housing market continues to fall and policymakers fail to respond, the risk of a double-dip China slowdown increases, which spells bad news for crude oil consumption and demand," Sycamore said. China is the world's top crude importer and No. 2 oil consumer. Last week, both oil benchmarks gained about 2%, their first weekly gain in five, after wildfires shut in large amounts of crude supply in Alberta, Canada. The impact of voluntary production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, known as OPEC+, is also being felt after going into effect this month, analysts from Goldman Sachs and JP Morgan said. Total exports of crude and oil products from the group plunged by 1.7 million barrels per day (bpd) by May 16, JP Morgan said, adding that Russian oil exports will likely fall by late May. On Saturday, the Group of Seven (G7) nations pledged at its annual leaders' meeting to enhance efforts to counter Russia's evasion of the price caps on its oil and fuel exports "while avoiding spillover effects and maintaining global energy supply", but did not provide details. Such enhancements are not expected to change the supply situation for crude and oil products, the International Energy Agency's (IEA) Executive Director Fatih Birol said, adding that the agency was sticking to its analysis for now. In its latest monthly report, the IEA warned of a looming shortage in the second half when demand is expected to eclipse supply by almost 2 million bpd. "It remains to be seen if the new curbs will impact Russian oil production as the Russians have been very effective in finding ways around European and U.S. sanctions and the sanctions have proved difficult to enforce," Sycamore said. The U.S. oil rig count fell by 11 to 575 in the week to May 19, the biggest weekly drop since September 2021, energy services firm Baker Hughes Co (BKR.O) said. "A slowdown in U.S. drilling activity is a concern for the oil market, which is expected to see a sizeable deficit over the second half of this year," ING said.
  • 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 UAE’s ADNOC Explores Introducing New Heavier Crude Grade The biggest oil producer in the United Arab Emirates is exploring the idea of selling a new, heavier crude grade as the company revamps the way it trades barrels in an effort to maximize profit. Abu Dhabi National Oil Co. could introduce the blend — which would likely come from several offshore deposits — toward the end of next year at the earliest, according to people with knowledge of the situation. The new grade may be named Ghasha after one of the offshore fields and would be introduced once those developments ramp up output. The company is gauging market demand for the new variant and trying to determine if there is sufficient flow to warrant it, said the people, asking not to be identified when discussing confidential deliberations. Adnoc declined to comment. Creating the new grade could help ensure the quality of Adnoc’s other offshore crudes by weeding out heavier barrels. It could also fill a market niche for crude that’s not as light as the UAE’s other oil blends, according to the people. The company may also decide not to go ahead with the new grade, they said. In that case, it would be mixed with one of the existing grades. The UAE, the third-largest producer in the Organization of Petroleum Exporting Countries, has used its oil wealth to build a business, leisure and transport hub in the region. Adnoc is spending billions to boost crude production capacity by about a quarter, to 5 million barrels a day by 2027, as it expands its natural gas and chemicals industry and looks for ways to make those businesses less polluting. Adnoc has allowed its flagship Murban crude to be freely traded on an exchange in Abu Dhabi since 2021 and wants to have the Upper Zakum grade bought and sold in the same way, Bloomberg has reported. Murban, with capacity of about 2 million barrels daily, comes from Abu Dhabi’s onshore fields, while Upper Zakum is produced at offshore fields along with Das and Umm Lulu crudes, which are pumped in smaller quantities. The company is seeking to have Murban trade as a benchmark, alongside Brent.
  • 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 NewBase Specual Coverage The Energy world –May -22 -2023 CLEAN ENERGY Europe’s energy market faces 3 key challenges this year, the IEA’s chief says Charmaine Jacob@CHARMAINEMJACOB KEY POINTS  Europe may have done a good job in reducing its dependency on Russian oil and gas and mitigating an energy crisis caused by the war in Ukraine but it’s “not out of the woods” yet, the head of the International Energy Agency (IEA) told CNBC.  Rising demand from China and an ongoing reliance on Russian energy still present challenges, however. Europe is ‘not out of the woods’ and still faces energy challenges, says IEA Europe may have done a good job in reducing its dependency on Russian oil and gas and mitigating an energy crisis caused by the war in Ukraine but it’s “not out of the woods” yet, the head of the International Energy Agency (IEA) told CNBC. “Europe was able to transform its energy markets, reduce its share of Russian gas to less than 4%, and its economy still didn’t go through a recession,” Fatih Birol, the IEA’s executive director told CNBC’s Martin Soong on Sunday. “Europe emissions have declined 
 and gas storage is at very decent levels,” Birol said, speaking on the sidelines of the Group of Seven summit in Hiroshima, Japan. Russia has traditionally played a pivotal role in the world’s energy complex, but Western nations’ reliance on the country’s energy
  • 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 has been severely reduced as they continue to unveil new sanctions to punish Russia for its ongoing invasion of Ukraine. “Europe countries did a good job... last winter,” the IEA chief said, highlighting that the region managed to successfully keep the lights on and kept a winter crisis at bay, thanks in part to a milder than expected winter. Birol warned that the region’s energy market still has three main hurdles to overcome this year, however. 1. Rising demand from China The world’s energy supply was abundant last year when China was still under lockdown and bought less oil and gas due to a slowdown in economic activity. However, the same cannot be said now and Europe may face a more challenging winter this year. LNG (liquefied natural gas) demand from China is expected to pick up in the second half of the year, Birol said, adding that gas imports to the country is a “key determiner” of demand for natural gas markets. But Birol believed there could be a silver lining — prices could be milder than predicted and he does not expect to see a “big boom” of imports from China.
  • 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 The Russian oil price cap is ‘actually working,’ says Dan Yergin Nonetheless, there is a different narrative playing out for the country’s oil story, he said. China’s exit from its zero-Covid policy in December has caused energy demand to increase, with the IEA forecasting that global oil demand will increase by more than 2 million barrels per day this year. It’s no surprise that China, the world’s second biggest oil importer after the U.S., will account for nearly 60% of the rise in demand, Birol noted. 2. U.S. debt default Global energy market participants are also keeping a close eye on fractious negotiations between the White House and Republicans over the U.S. debt ceiling. Without a deal, the U.S. could face default in early June although this is seen as unlikely. Negotiations were paused while President Biden attended the G-7 summit in Japan but he’s due to return to Washington, D.C. on Sunday. The president said at a press conference at the summit that he’s “not at all” concerned about the negotiations and that “we’ll be able to avoid a default and we’ll get something decent done.” Birol said a U.S. debt default would cause oil demand and prices to drop, but agreed that such a scenario was unlikely. “I would avoid giving you a precise number, but we could expect a significant drop in the oil price if we see such a default.” “This issue in the United States will be dealt with and common sense will prevail. And I don’t see a major risk for the global oil markets. But of course, oil markets are always involved with risks.” he added. Oil prices rebounded on Friday from losses of more than 1% the previous day as investors turned cautiously optimistic that the risks of a U.S. debt default were easing as talks continued.
  • 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 3. Reliance on Russia still remains Another key challenge facing Europe’s energy markets is that their dependency on Russian gas has not been completely eradicated and the outlook for supply is uncertain. Many countries in the region were forced into an energy crisis last year when imports of Russian gas were severely reduced. Gas exports from Russian state energy giant Gazprom to Switzerland and the EU fell by 55% in 2022, the company said in January. Birol noted that if there were further reductions in gas imports “for political reasons,” Europe could again face “some challenges” in the coming winter. Birol believed G-7 and European countries will not go back into making any agreements with Russia, adding that Russia’s gas story is “finished.” “It’s over,” he said.
  • 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 NewBase Energy News 22-May 2023 - Issue No. 1622 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.
  • 20. 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 20
  • 21. 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 21