NewBase 25 May-2023 Energy News issue - 1623 by Khaled Al Awadi.pdf

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NewBase Energy News 25 May 2023 No. 1623 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Uzbekistan: U.A.E’s Masdar signs agreement to develop over 2
GW of clean energy in Uzbekistan
Source: Masdar
Agreement to develop over 2 GW of solar and wind and 500 MWh of battery storage across
Uzbekistan. Project demonstrates Masdar’s commitment to supporting global net-zero ambitions
and Uzbekistan’s goal of meeting 25 percent of its energy needs from renewables by 2030
Abu Dhabi Future Energy Company PJSC – Masdar, one of the world’s leading clean energy
companies, signed a joint development agreement (JDA) with Uzbekistan’s Ministry of Energy
(MoE) and the Ministry of Investments, Industry and Trade (MIIT) to develop over 2 gigawatts of
solar and wind projects and 500 megawatt-hours of battery energy storage at multiple sites across
the Central Asian country.
The development represents deepening relations between the UAE’s clean energy powerhouse
and Uzbekistan, which aims to achieve 25 percent of its energy mix from renewables by 2030. The
Central Asian nation, abundant in wind and sunshine, is a key strategic destination for Masdar.
Uzbekistan plans to achieve 7 GW of solar and 5 GW of wind capacity by the end of the decade.
HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar,
and COP28 President-Designate said; 'The UAE is fully committed to supporting countries to
decarbonize.
Uzbekistan is a key strategic partner, and we continue to work together to deliver renewable energy
projects that power homes and businesses, while crucially cutting emissions. The world needs to
triple global renewable energy capacity by 2030 to reach the goals set out in the Paris Agreement.
As we prepare to host COP28 in the UAE, we believe ambitious partnerships with countries like
Uzbekistan are vital in helping to meet this target.'
ww.linkedin.com/in/khaled-al-awadi-80201019/

The JDA was jointly signed by Azim Akhmedkhadjaev, First Deputy Minister of Energy of the
Republic of Uzbekistan, Sarvar Khamidov, Deputy Minister of Investment, Industry and Trade of the
Republic of Uzbekistan, and Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. The
signing ceremony was held in Uzbekistan on May 17, 2023.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: 'We are making history together in
Uzbekistan. Our agreement to develop 2 GW of solar and expand into 500 MWh of battery storage,
marks an exciting new chapter in Masdar and Uzbekistan’s shared journey. Uzbekistan is a key
partner and Masdar is proud to support its ambitious renewable energy goals.'
Masdar has been active in Uzbekistan since 2019, with the 100 MW Nur Navoi Solar Project, which
is the nation’s first successfully financed independent power producer solar project. The plant has
been operational since 2021.
Masdar’s growing portfolio in Uzbekistan includes the largest wind farm in Central Asia, the 500 MW
capacity Zarafshan plant. Last month, Masdar reached financial close on three solar projects in
Jizzakh, Samarkand and Sherabad, which have a combined capacity of around 900 megawatts –
making it the largest solar development program in Central Asia. Once fully operational, the projects
will generate enough electricity to power over one million homes, while displacing around one million
tonnes of carbon dioxide annually.
Established in 2006, Masdar is the UAE’s clean energy powerhouse. It is active in more than 40
countries and has invested in a portfolio of renewable energy projects with a combined capacity of
more than 20 GW. Masdar is committed to achieving at least 100 GW total renewable energy
capacity by 2030.

U.A.E: NWTN, CMEC to advance UAE's green hydrogen roadmap
TradeArabia News Service
NWTN, an eco-conscious technology company specialising in sustainable mobility solutions, and
CMEC Middle East, a subsidiary of China Machinery Engineering Corporation, announce plans for
a strategic partnership, which has been memorised in a non-binding memorandum of understanding
on May 18.
This proposed partnership seeks to capitalise on the combined expertise, resources, and networks
of NWTN and CMEC ME, aiming to enhance market presence, foster innovation, and deliver
exceptional value to customers. NWTN is revolutionising the transportation sector with its
sustainable electric car solutions.
Additionally, NWTN is investing in green hydrogen technology, striving to facilitate the transition to
clean energy through energy storage solutions for a more sustainable future.
This preliminary alliance marks a pivotal moment for both organisations as they join forces to
contribute to the UAE's Hydrogen Leadership Roadmap and the country's ambitious 2050 National
Net-Zero target.
CMEC ME brings a wealth of experience, particularly in the renewable energy sector. NWTN
believes that CMEC ME's engineering expertise and technological resources from China will play a
vital role in introducing advantageous Chinese technical solutions to support the realisation of green
hydrogen projects, fostering knowledge exchange and innovation.
Key highlights and objectives of the preliminary cooperation include:

Collaboration on Green Hydrogen Projects: NWTN and CMEC ME intend to collaborate on the
development of a 20MW Green Hydrogen Plant, harnessing cutting-edge technologies, such as
Liquid Organic Hydrogen Carrier, Hydrogen Station, Hydrogen Bus, and Battery Storage business
in UAE. This proposed collaboration underscores their shared commitment to the UAE's Hydrogen
Leadership Roadmap and the country's 2050 National Net Zero target.
Introduction of Chinese Technical Solutions: CMEC ME will leverage its valuable experience and
technological resources from China to introduce advantageous Chinese technical solutions,
including engineering expertise, to support the realisation of green hydrogen projects. This strategic
exchange is designed to foster knowledge sharing and innovative approaches.
Investment and Strategic Resources: NWTN will leverage its relationships and strategic resources
with relevant government authorities and firms in the UAE to secure permissions, access official
information on the green hydrogen industry, subsidy policies, marketing analysis, investors, off-
takers, and other aspects related to green hydrogen and energy storage project development.
Feasibility Study Report: CMEC ME will seek to provide a comprehensive feasibility study report,
assessing the technical, commercial, and financial viability of the projects based on the progress
and cost arrangement agreed upon by both parties. This report will guide further decision-making
and planning.
Project-Specific Agreement: As the Green Hydrogen projects progress to an appropriate stage,
NWTN and CMEC ME will negotiate to enter into definitive agreements for the projects, ensuring
clarity and alignment in project execution by defining the specific roles and responsibilities of each party.-

Algerian Gas to help E.U replace Russian with production @ record
EIA + S&P Global + NewBase
In 2021, more natural gas was produced in Algeria than in any year since record-keeping began in
1980, according to the data in our recently updated Country Analysis Brief: Algeria. Algeria
produced 9.9 billion cubic feet per day (Bcf/d) of dry natural gas in 2021, a 23.4% increase from the
8.0 Bcf/d the country produced in 2011. Of the natural gas produced in 2021, 53% was exported.
Although the overall volume of exports was greater in 2021 compared with 2011, the percentage
exported in 2021 was smaller than in 2011, when 60% of Algeria’s natural gas was exported.
Domestic consumption has increased over the last decade, but recent upgrades to export
infrastructure capacity give Algeria the option to export more of its natural gas.
Algeria is a major crude oil and natural gas producer in Africa. At the beginning of 2023, Algeria
held an estimated 159 trillion cubic feet of proved natural gas reserves. Algeria exports natural gas
both by pipeline and as liquefied natural gas (LNG). Most of the country’s natural gas exports are
sent to Europe.
Algeria currently owns and
operates all four of its LNG
terminals through the
national energy firm,
Sonatrach. The Skikda LNG
terminal reopened in July
2021, nearly a year after the
terminal shut down because
of a turbine control
mechanism failure. In
February 2022, Sonatrach
announced plans to
modernize facilities at the
Skikda LNG terminal by
adding new LNG storage capacity and upgrading its export loading facilities to accommodate larger
vessels.
Türkiye was the largest recipient of Algeria’s LNG in 2021, receiving more than 38% of Algeria’s
exports, according to BP’s 2022 Statistical Review of World Energy. Collectively, European Union
(EU) countries received more than half of Algeria’s LNG exports.

Algeria also has three major intercontinental pipelines that export natural gas to Europe:
 The Enrico Mattei (Transmed) pipeline (from Algeria through Tunisia to mainland Italy)
 The Medgaz pipeline (from Algeria to Almeria, Spain, via subsea pipeline under the
Mediterranean Sea)
 The Maghreb-Europe (MEG) pipeline (from Algeria through Morocco to Cordoba, Spain)
The capacity of the Medgaz pipeline, which delivers natural gas to Spain, increased from 283 billion
cubic feet per year (Bcf/y) to 378 Bcf/y at the end of 2021 after a third turbo compressor was put
into service. Political tensions have affected Algeria’s natural gas trade with Europe. Algeria
suspended delivery of natural gas exports via the MEG pipeline, which transverses Morocco, to
Spain in October 2021 as a result of increased political tensions between Algeria and Morocco.
Algeria has pipeline capacity to spare for E.U
In 1981, while trying unsuccessfully to block a Soviet natural gas pipeline during a chill in the Cold
War, then-US President Ronald Reagan warned Europe of its growing reliance on Russian energy,
urging the continent to seek alternative suppliers, including from North Africa.
41 years later, a similar geopolitical play is unfolding as tensions between Russia and the West
ratchet up, with President Joe Biden saying his administration is working with the EU to identify
other sources of vital natural gas, including -- once again -- from North Africa.
The European pursuit to secure energy supplies puts Algeria firmly in the spotlight, as the EU's third
largest gas provider behind Russia and Norway.
The country, which has pipelines across the Mediterranean Sea to Spain and Italy, as well as an
LNG terminal, exported about 34 billion cu m of gas to the EU in 2021, or 8% of the union's total
imports, according to Eurostat.
Any increase in Algerian volumes would not come anywhere close to offsetting a complete shutdown
of Russian imports, which totaled about 130 billion cu m in 2021, but it would provide some measure
of relief to a continent already facing tight supplies and soaring energy prices this winter.
Having boosted output by bringing several projects online over the last few years, Algeria stands
ready to tap its spare production and pipeline capacity to increase exports to the continent, if called
upon, a government official told S&P Global Platts.
But growing domestic gas consumption and the country's political instability could put a damper on
what Algeria may be able to provide, experts said.

"The country has major problems in relation to increasing supply in the context of rising domestic
demand," said Jonathan Stern, distinguished research fellow at the Oxford Institute of Energy
Studies, who closely follows natural gas markets.
Western governments, led by the Biden administration, have threatened to impose harsh sanctions on
Russia, including its energy sector, if it invades Ukraine, potentially choking off the source of some 40% of
European gas imports. The new Nord Stream 2 pipeline, which would send Russian gas to Germany, is
among the projects in the sanctions' crosshairs.
In a joint statement Jan. 28, US President Joe Biden and EU counterpart Ursula van der Leyen said
they were "collaborating with governments and market operators on supply of additional volumes of
natural gas to Europe from diverse sources across the globe."
Platts Analytics estimates Algeria could provide an additional 7 billion cu m of gas to Europe in
2022, largely through higher shipments via the Transmed pipeline to Italy.

Other incremental exports could go through a recent expansion of the Medgaz pipeline to Spain
and possibly some more LNG cargoes, said the government official, who spoke on condition of
anonymity to discuss commercially and politically sensitive matters.
Reopening the GME pipeline through Morocco to Spain would restore another export valve, but the
political dispute that shuttered its operations in November remains unresolved, and the government
official declined to say whether Algeria was facing US or EU political pressure to resume gas flows.
Political challenges
Other North African gas producers are unlikely to be able to help ease a European gas
crunch.Libya, already struggling to supply its term customers and wracked by political
instability and security liabilities, has no additional capacity for gas exports, according to
market sources.
Egypt has maxed out its LNG export volumes.
Outside the region, Qatar has likewise largely contracted all of its volumes already, though
sources suggest some cargoes could be diverted to Europe if Asian customers are amenable,
which would require some deft negotiations.

Likewise with LNG customers of the US, which is already shipping record cargoes to
Europe.Norway could provide the biggest boost for Europe, with Platts Analytics estimating
some 13 billion cu m of production upside. That leaves Algeria as the second largest source
of incremental volumes for the EU.
Algerian pipeline flows to Italy averaged 61 million cu m/d during the fourth quarter of 2021, leaving
about 41 million cu m/d of space available in the Transmed pipeline for increased flows, according
to Platts Analytics.
Capacity on the Medgaz pipeline to Spain is set to rise from 26 million cu m/d to 30 million cu m/d,
following a recently completed expansion. Filling both pipelines to maximum capacity would more
than offset the closure of the GME pipeline, but that could be a tall order.
Algerian gas consumption rose more than 6% annually from 2010 to 2019, before the pandemic
caused demand to contract 7% to 44 billion cu m in 2020, according to consultancy Enerdata, and
officials have warned that exports could be crimped if domestic demand is not curbed.
Despite higher gas production from the start-up of several projects, including on its main gas field,
Hassi R'mel, Algeria's economy has yet to prove stable. The volatile country is still wracked by
deadly citizen protests, worker strikes and corruption scandals involving state energy firm
Sonatrach, which could endanger its oil and gas production.
"The country is going through an enormous political [and] security crisis at the moment, and in
Algeria, politics and the regime's survival always trump the economy," said Charles Gurdon,
managing director of consultancy Menas Associates.

Oman: Jindal Shadeed to build $3bn green steel plant in Oman
Mining Technology
Omani steel giant Jindal Shadeed Group plans to spend over $3bn for the construction of a green
steel plant in Oman. The proposed green steel manufacturing facility, which is set to be built at the
Special Economic Zone at Duqm (Sezad) at Duqm in Oman, is expected to produce five million
metric tonnes of green steel a year.
The plan will cater to wind turbine, auto, and consumer goods industries across Europe, Japan and
other countries.
Jindal Shadeed’s proposed plant will be built at SEZAD in Duqm, Oman. Credit: Public Authority for
Special Economic Zones and Free Zones.
Jindal Shadeed Iron and Steel CEO Harssha Shetty said: “There is a booming demand for green
steel from ESG-conscious customers around the world, especially in Europe and Asia, who have
already committed to a significant reduction in Scope 3 emissions by 2030.”
Shetty was quoted by Bloomberg News as saying in an interview: “The company, in due course, will
evaluate the optimum mix of debt and equity to maximise shareholder value and minimise the cost
of capital.” Planned to be completed by 2026, the facility will utilise renewable energy sources for
its manufacturing operations, reported the news agency.
In relation to the proposed development, Jindal Shadeed Group also signed a memorandum of
understanding (MoU) with the centralised utility provider (Marafiq) whereby the latter agreed to
provide the utilities necessary to operate the proposed facility.
Central Services Company official Talal bin Muhammad Jawad Al Lawati said: “We, at Marafiq
Company, are pleased to provide the necessary water services for this vital and important project
which will undoubtedly enhance the use of clean energy and green hydrogen in the Special
Economic Zone in Duqm.”

E.U: Gas supplies to EU via Ukraine growing – Gazprom
© Sputnik/Alexey Vitvitsky
Russian energy giant Gazprom is continuing to supply gas for transit to Western and Central Europe
through Ukrainian territory, via the Sudzha gas pumping station, the company confirmed on
Tuesday.
Supplies rose to 41.2 million cubic meters (mcm) on May 23, compared to 40.9 mcm pumped the
previous day through the entry point, which remains the only operating interconnector in Ukraine.
“Gazprom supplies Russian gas for transit through the territory of Ukraine in the amount confirmed
by the Ukrainian side through the Sudzha… Application for ‘Sokhranovka’ was rejected,” Gazprom
spokesperson Sergey Kupriyanov told reporters.
Ukraine shut down transit through the Sokhranovka station, a key gas transit route which handled
around a third of the Russian gas flowing through the country to the EU, in early May,
citing “interference by the occupying forces.”

Russian gas deliveries to the EU via Ukraine were slashed last May in the aftermath of the bloc’s
sweeping sanctions, with shipments plunging to 24 mcm in January this year. Since February,
however, daily transit volumes have been gradually increasing.
Gas transit through Ukraine remains the only route for Russian supplies to the countries of Western
and Central Europe after sabotage attacks in September rendered the Nord Stream pipeline
inoperable. Gazprom also exports gas via the TurkStream and Blue Stream pipelines to Southern
and Southeastern Europe.
EU and G7 may ban resumption of Russian gas imports – FT
The G7 and EU could prohibit the restart of Russian gas imports on routes where Moscow has cut
off supplies in response to sanctions related to the Ukraine conflict, the Financial Times reported on
Sunday, citing sources.
Discussions are currently being held between G7 and
EU officials, and a decision is expected to be finalized
at the G7 summit in Hiroshima next week, the report
says.
According to a draft statement seen by the news outlet,
the G7 and EU countries aim to further reduce their use
of Russian energy, “including preventing the reopening
of avenues previously shut down by Russia’s
weaponization of energy,” at least until “there is a
resolution of the conflict” in Ukraine.
The move will reportedly prevent the resumption of Russian pipeline gas flows on the routes to
Poland and Germany, which had their supplies cut off last year. Both countries had received
Russian gas through the Yamal-Europe pipeline, which runs from Siberia through Belarus and
Poland to Germany.
Last summer, Russian energy giant Gazprom stopped supplies via the Polish section of the pipeline
after Warsaw placed sanctions on Gazprom. Germany also received Russian gas via the Nord
Stream 1 pipeline, which runs through the Baltic Sea.
Supplies via this pipeline were reduced due to technical issues and sanctions last summer, and
then completely cut off when the pipeline was rendered inoperable following a series of underwater
explosions in September 2022.
While Russia once covered around 40% of the EU’s gas needs prior to the conflict in Ukraine,
supplies have dwindled over the past year to less than 10%, as EU countries moved to reduce their
dependence on Russian energy. However, the sanctions have so far spared Russian gas supplies,
and the reported move by the G7 and EU would be the first to directly target pipeline gas exports.
One of the sources told FT that the move aims “to make sure that partners don’t change their mind
in a hypothetical future” in which Moscow may decide to renew deliveries.
Earlier this week, reports emerged that the EU also plans to block Russian oil deliveries to Germany
and Poland via the Druzhba pipeline as part of its next round of sanctions. Both countries have
stopped receiving oil through the pipeline, but have an exemption from the EU embargo and are
technically allowed to resume imports.
Germany also continues to import Kazakh crude via the Druzhba line, which transits through Russia.
The measure reportedly could be included in Brussels’ 11th round of sanctions on Moscow.

NewBase May 25 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices stable on US debt uncertainty, Brent @$78.24
Reuters + NewBase
Oil prices fell in early Asian trading on Thursday after uncertainty that the United States will avoid a
debt default weighed against the prospect of further OPEC+ production cuts. Brent crude futures
slipped 5 cents, or 0.1%, to $78.31 a barrel by 0042 GMT. U.S. West Texas Intermediate crude
(WTI) fell 16 cents, or 0.2%, to $74.18.
Some progress had been made but several issues remained unresolved in U.S. debt ceiling
negotiations, House Speaker Kevin McCarthy said Thursday, as the deadline ticked closer to raise
the federal government's $31.4 trillion borrowing limit or risk default.
Negotiators for Democratic President Joe Biden and top congressional Republican Kevin McCarthy
reconvened Wednesday at the White House to try to close a deal.
Oil prices were also pressured by news that Britain's stubbornly high inflation rate fell by less than
expected last month, according to official data that raised the chances of more interest rate hikes.
Oil price special
coverage

In the previous session, oil prices were supported by a warning from Saudi Arabia's energy minister
that short-sellers betting oil prices will fall should "watch out" for pain.
Some investors took that as a signal that the Organization of Petroleum Exporting Countries and
allies including Russia, together called OPEC+, could consider further output cuts at a meeting on
June 4.
Oil was also supported by an unexpected, massive fall in U.S. crude oil inventories in the week
to May 19, reported by the Energy Information Administration on Wednesday.
Oil prices gain 2% on falling U.S. stockpiles, Saudi warning
On Wednesday Oil prices rose 2% , after a large unexpected drawdown in U.S. crude inventories
and a warning from the Saudi energy minister that raised the prospect of further OPEC+ production
cuts.
Brent crude futures rose $1.52, or 2%, to settle at $78.36 a barrel. U.S. West Texas Intermediate
crude (WTI) gained $1.43, or 2%, to $74.34.
U.S. crude inventories posted a massive surprise weekly drawdown of 12.5 million barrels to 455.2
million barrels, the Energy Information Administration said, as imports declined. Analysts had
expected an 800,000-barrel rise.
U.S. gasoline stocks dropped by 2.1 million barrels in the week to 216.3 million barrels, the EIA
said, while distillate stockpiles fell by 600,000 barrels to 105.7 million barrels.
The U.S. Memorial Day holiday on May 29 marks the beginning of the peak summer travel season
and higher fuel demand.
"Refiners are absolutely going max out with refinery runs right now, trying to keep up with demand,"
said Phil Flynn, an analyst at Price Futures Group.
"Oil prices have been so focused on the debt ceiling and interest rates, but really they haven't
focused on the supply and demand side which has tightened in the last couple of weeks."
Federal Reserve officials "generally agreed" last month that the need for further interest rate
increases "had become less certain," with several saying that the quarter-percentage-point hike
they approved might be the last, according to minutes of the May 2-3 meeting released on
Wednesday.
Meanwhile, Saudi Arabia's energy minister said short-sellers betting oil prices will fall should "watch
out" for pain, comments some investors took as a signal that OPEC+, the Organization of Petroleum
Exporting Countries and allies including Russia, could consider further output cuts at a meeting on
June 4.
"Oil prices are trading higher ... buoyed by the latest short-seller warning from Saudi Arabia," said
OANDA senior market analyst Craig Erlam. "(But) if past experience is anything to go by, traders
may be tempted to call his bluff."
Weighing on broader markets, there were no signs of progress in U.S. debt ceiling talks as the
deadline ticked closer to raise the federal government's borrowing limit or risk default. Negotiators
for Democratic President Joe Biden and top congressional Republican Kevin
McCarthy reconvened at the White House to try to close a deal.
Oil price gains were limited by news that Britain's stubbornly high inflation rate fell by less than
expected last month, according to official data that raised the chances of more interest rate hikes.

EIA expects lower crude oil prices for the second half of 2023 and for 2024
We lowered our crude oil price forecast for the rest of 2023 and for 2024 in our May Short-Term
Energy Outlook (STEO) because of relatively rapid declines in the crude oil price since April.
Between April 12, 2023, and May 4, 2023, the Brent crude oil price fell $16 per barrel (b) to $73/b;
the West Texas Intermediate crude oil price fell $15/b to $69/b. We expect that a drop in OPEC
production and increases in demand will lead to relatively moderate price increases over the next
few months.
The recent price declines are caused by a combination of supply and demand market factors. On
the demand side, news of a decrease in China’s manufacturing Purchasing Managers’ Index, an
indicator of economic conditions, added to market concerns about China’s economic growth and a
possible U.S. recession. Concerns about the banking sector after First Republic Bank was closed
and subsequently sold also added to concerns about global economic growth and oil demand.
On the supply side, oil flows from Russia have remained higher than expected, increasing global oil
supply and putting downward pressure on crude oil prices. However, in April 2023, OPEC+
members agreed to cut oil production through 2023. In our May STEO, we forecast that OPEC total
production of liquid fuels will decline from 34.0 million barrels per day (b/d) in April to average 33.7
million b/d for the rest of 2023.
In addition to our expectation that OPEC+ countries will adhere to voluntary production cuts, recent
disruptions to crude oil exports from Iraq and a force majeure limiting crude oil exports from
Nigeria have also reduced our near-term OPEC liquid fuels production forecast. We expect that
these supply constraints will put upward pressure on crude oil prices. In 2024, we expect OPEC
liquid fuels production will increase by 0.7 million b/d to 34.4 million b/d, driven by an end of the
currently agreed upon OPEC+ production cuts in 2023.
We expect the Brent crude oil price will increase from $74/b in May 2023 to $79/b in September
before declining slightly to average $78/b in the last three months of 2023. We expect the West
Texas Intermediate price will follow a similar path.

European Gas Prices Drop as Goldman Sees Fuel-Switching Floor
European natural gas neared a two-year low as weak industrial demand and ample supplies weigh
on prices, with Goldman Sachs Inc. seeing the possibility of a floor in the mid-€20 range.
Benchmark futures fell as much as 4.2% on Monday, dipping briefly below €29, to the lowest level
since mid-June 2021. On Friday, the contract posted its seventh straight weekly loss, the longest
such streak in six years.
Mild weather and a steady flow of liquefied natural gas have contributed to the decline as Europe
recovers from its energy crisis amid severely curtailed pipeline flows from Russia. Stockpiles on the
continent are now almost 66% full, well above the seasonal average, data from Gas Infrastructure
Europe show.
If futures decline into the mid-€20s, gas demand could increase by 9-12 million cubic meters a day
as plants switch away from coal, according to Goldman.
Weather Wild Card
Weather-related issues heading into the summer remain a wild card for gas demand. Solar output
in Germany on Monday is set to approach the record set last July, according to Bloomberg models.
That could further reduce demand for gas in power generation.
Still, last year’s drought — which dried up rivers across the continent —remains a fresh memory.
Hydro reservoirs in Italy, Switzerland, Austria and France are filling up at the second-lowest rate
since 2017, according to BloombergNEF. That could lead to more gas being burned for power
generation, raising power prices.
Reservoir Water Inflows Remain At Record-Low Levels
Average monthly reservoir hydro water inflows in Central Europe
Source: ENTSO-E, BloombergNEF.
Note: Shows regional sum for Italy, Switzerland, Austria and France. BNEF estimates inflows by subtracting weekly generation from
weekly change in hydro reservoir levels.
Dutch front-month gas, Europe’s benchmark, declined 1.7% to €29.65 per megawatt-hour by 4:20
p.m. in Amsterdam. The UK equivalent contract fell 2.5%. German front month power declined 3.1%
to €86.50 per megawatt-hour.

NewBase Specual Coverage
The Energy world –May -25 -2023
CLEAN ENERGY
is about to hit a major renewable energy milestone
Tim Mullaney@TIMMULLANEY - CNBC
KEY POINTS
 Based on the latest annual data from Berkshire Hathaway’s utility operations, Berkshire
Energy’s electricity production from renewable sources including wind and solar is on track
to comfortably surpass the recent national average and come close to half of all power
generation.
 But Warren Buffet’s record on climate change remains a focus of ESG investors who say his
company isn’t moving fast enough to prepare for the future.
 It’s become a yearly feature of Berkshire’s upcoming annual meeting for activist shareholders
to challenge, so far unsuccessfully, the most venerated investor of the past century for not
doing enough about climate change.
Siemens wind turbines operate on a wind farm in Marshalltown, Iowa, where many of Berkshire’s first big renewable
investments were made over the past decade as the former MidAmerican Energy under now-Berkshire Energy was well
situated in one of the nation’s top wind corridors.
With annual meeting season coming soon, Warren Buffett’s climate record is back in the
news – and activists are still not happy.
Buffett’s Berkshire Hathaway conglomerate faces three different shareholder resolutions
heading into its annual “Woodstock for capitalism” on May 6. While no one expects any

of the resolutions to pass – Buffett’s opposition and 32% voting stake will likely prevent
that – they are attracting support from high-profile investors like California’s $445 billion
pension giant CalPERS and have in recent years seen an increasing base of Berkshire
shareholders push up vote totals against Buffett’s clearly stated wishes.
The resolutions demand better disclosure of climate risks Berkshire faces from its mix of
utilities, reinsurance companies, shipping coal on its Burlington Northern railroad, and
investments in oil stocks, which he has been increasing recently, specifically through a
big stake in Occidental.
Buffett’s climate metrics getting better
Berkshire is a climate paradox: Many of its climate metrics are improving rapidly, if not
as fast as some competitors. The biggest: Its utilities’ renewable power projects
completed or under construction are on track to double the recent national average of
belectricity generation from
renewable sources, and its
revenue from coal shipping has
moved steadily lower over the
past decade. But Berkshire both
dishes out and absorbs climate
risk – in emissions from power
plants and, through its
investments in Chevron and
Occidental, gasoline-powered
cars; and in its insurance
exposure to flooding and
wildfires that are expected to
worsen as global temperatures
rise.
“It’s fair to say that for their size,
the breadth and complexity of
their business, that their
approach to climate change
continues to lag behind peers,”
CFRA Research analyst Cathy
Seifert said. “They could be
front and center, but I don’t think
they will be.”
Any discussion of Berkshire and
climate necessarily begin with
its utility business, since
electricity production accounts for a quarter of U.S. greenhouse gas emissions. Berkshire
Hathaway Energy, whose CEO Greg Abel is the heir apparent to the 92-year old Buffett

himself as the parent company’s chief executive, would be the fifth-biggest U.S. utility
holding company if it were independent.
Berkshire Energy spokesman Brandon Zero said the company would have no comment.
BHE is moving rapidly to shift its power mix to wind and solar. Counting plants under
construction, Berkshire will soon get 45% of its power from wind, solar, geothermal
energy and hydropower, according to Berkshire Hathaway Energy’s annual report, which
will comfortably exceed the 21.5% the government reports that all utilities actually
generated in 2022.
The 31% of electricity capacity Berkshire will be getting from natural gas when its coming
plants are done is less than the 40% national share. But it still uses more coal, the dirtiest
major electricity fuel – coal represents 23% of Berkshire’s power mix – more than the
national average of 20%.
Berkshire Hathaway Energy is increasing its reliance on renewables
More than 40% of BHE’s owned generation capacity in 2022 came from wind and solar alone.
BY MEGAWATT PRODUCTION BY PERCENTAGE
Note: Includes facilities both currently in operation and those under construction
This is a dramatic shift from as recently as 2014, when Berkshire got about a quarter
of its power from renewables. Back then, Berkshire’s Oregon-based utility Pacificorp
made 60% of its electricity from coal; now it’s 43%, all produced in plants opened by
1986. Iowa-based Mid-American Energy went from 55% to 21%. Along the way, Mid-
American built or expanded more than 30 wind plants, exploiting a Midwestern natural
resource, while Pacificorp added or expanded 14.
Overall, the utility group has closed 16 coal-fired plants and reduced its carbon emissions
by 27% since 2005, according to its annual report, putting it well on track to meet its
target of a 50% reduction by 2030, helped by announced closing plans for 16 more coal
plants. Railroad emissions are also on track to drop 30 percent from 2018 levels by 2030,
the company says.

That’s still not as much as some other utilities have done, and Berkshire has been either
less aggressive or less specific in its commitments to bring down carbon emissions,
said Daniel Stewart, energy and climate program manager for As You Sow, a
shareholder-advisory group sponsoring a resolution at Berkshire’s meeting.
“At a high level, on the utility side there are encouraging signs,” Stewart said, though
climate leaders like Minneapolis-based Xcel Energy are cutting emissions 80 percent by
2030 and eliminating coal faster than Berkshire. He added that emerging science should
let utilities shift the date when they will reach net zero emissions to 2035 or 2040,
compared with 2050. ”“What [also] jumps out at me is how poor the disclosure is.”
Warren Buffett (front passenger) and Bill Gates (behind driver) arrive on stage at the electric vehicle BYD M6 nationwide
launching ceremony in Beijing on September 29, 2010. Berkshire Hathaway first invested in the Chinese renewable energy
and EV giant 15 years ago and still retains a large ownership stake in BYD today.
The disclosure issues are the heart of the shareholder resolutions, which have become
an annual thing for Berkshire.
Three resolutions — one each sponsored by California’s pension plan, Illinois’ pension
plan, and As You Sow — cover the topic.
As You Sow asks for data particularly about Berkshire’s insurance businesses, and a
plan for measuring and reducing the climate impact of businesses the unit invests in or
insures. Proponents point to rising spending on losses in natural disasters, including the
$3.4 billion in claims Berkshire paid related to Hurricane Ian last year, according to
Berkshire’s proxy statement.

Illinois’ proposal asks for details on how the company’s audit committee measures
climate risks, including whether climate issues will play a role in Berkshire’s closely-
watched succession planning.
And CalPERS asked for “an annual assessment addressing how the Company manages
physical and transitional climate-related risks and opportunities,” the proxy says. The
giant pension fund has also voted early against management’s nominees to the board’s
audit committee, citing climate issues.
“When I talk to investors, they’re really focused on transparency,” said Kirsten Spalding,
vice president of the Ceres Investor Network, a liberal-leaning investor advisory group.
“It’s a matter of good governance [to] know, what are the plans? What are the risks?”
Regulators, investors can tip future balance
Berkshire’s hand may also be forced, fairly soon, by coming state regulations on
insurance disclosure and federal securities disclosure rules that require climate risk
audits, Seifert said.
The company argues that it already discloses enough. In the proxy, Berkshire points to
its energy division’s annual reports that disclose its direct emissions, and contends that
its executives and board manage climate risk in part through stress testing its coverage
portfolio.
Buffett has called shareholders’ past requests for more climate disclosures “asinine.”
“I don’t think I’ve had three letters in the last year from shareholders,” on climate issues,
Buffett said at the 2021 annual meeting, adding that the proposals would require climate
audits of Berkshire’s Dairy Queen chain and Borsheims’ jewelry stores when the climate
impact is concentrated in utilities, the railroad and the insurance unit.
“Overwhelmingly the people who bought Berkshire with their own money voted against
those proposals.”
But the losses have become smaller in recent years, as big index funds have owned
more of Berkshire, and the newer generations among Berkshire shareholders within
families do have changing values from their parents. In 2021, votes against Berkshire
management were higher than ever before — still 75% with the board, but roughly 25%
in favor of proposals, and that was twice the highest vote against Berkshire’s
management on a percentage basis ever. Last year, a measure from As You Sow on
greenhouse gas emissions disclosures received support from 47% of independent
shareholders (26.5% overall). Over the past decade, many climate proposals had never
received as much as 10% support from shareholders.
Spalding and Stewart argue that the losses are worth taking in the shareholder vote,
believing the percentage of pro-climate disclosure votes from shareholders other than
Buffett and his close aides approaches 50 percent, pressure for change will build and
eventually yield results.
“Things change,” Stewart said. “Because education occurs.

NewBase Energy News 25-May 2023 - Issue No. 1623 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.

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