NewBase 27 July-2023 Energy News issue - 1642 by Khaled Al Awadi.pdf

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NewBase Energy News 27 July 2023 No. 1642 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Japan's Sumitomo to study carbon capture project at
mature gas field in UAE
Katya Golubkova, Reuters News + NewBase
Japan's Sumitomo on Tuesday said it and Sharjah National Oil Corp (SNOC) will study a carbon
capture and storage (CCS) project at a mature gas field in the United Arab Emirates.
Energy-poor Japan is actively diversifying its economy away from fossil fuels and is promoting its
green technology in the Gulf countries, as the region aims to turn from the world's biggest oil
producer into the global clean energy hub.
The project would capture CO2 from nearby power and industrial plants and other emitters
in Sharjah and neighbouring emirates and store it in SNOC's on-shore gas field with capacity
of over several hundred million tons of CO2, Sumitomo said in a statement.
Sumitomo and SNOC would conduct a joint feasibility study of the potential project which could use
Japanese technologies in carbon capture, transport and storage, the statement added.
The company, however, did not provide financial details or timing of the possible project.
"We believe there is big potential for CCS in the Middle East, as it is a key technology to materialize
energy transition," Hajime Mori, managing director of Sumitomo Corp Middle East FZE, said in the
statement.
ww.linkedin.com/in/khaled-al-awadi-80201019/

During his trip to Saudi Arabia, the UAE and Qatar last week, Japan Prime Minister Fumio Kishida
promoted technologies for energy transition, including for hydrogen and ammonia - cleaner fuels
which Tokyo wants to import back.
How can CCS help prevent global warming?
The Intergovernmental Panel on Climate Change (IPCC) highlighted that, if we are to achieve the
ambitions of the Paris Agreement and limit future temperature increases to 1.5°C (2.7°F), we must
do more than just increasing efforts to reduce emissions – we also need to deploy technologies to
remove carbon from the atmosphere. CCS is one of these technologies and can therefore play an
important role in tackling global warming.

UAE:Mubadala, Pertamina to collaborate on CCUS applications
TradeArabia News Service
Mubadala Energy, the Abu Dhabi-based international energy company, and Pertamina, the
Indonesian state-owned integrated energy company, have entered into an agreement to discuss,
explore and potentially engage in energy transition initiatives, primarily focused on carbon capture,
utilisation and storage (CCUS) applications in Indonesia
In line with Mubadala Energy’s commitment to play an active role in the energy transition and
explore new energy solutions including CCUS, the partnership will see both companies cooperate
to conduct joint studies and, potentially, business development activities in this strategic area of
carbon mitigation.
The agreement provides a framework to explore CCUS solutions for Pertamina’s and Mubadala
Energy’s existing portfolio of assets in Indonesia through collaborative discussions and evaluation
of relevant projects.
In addition, this Memorandum of Understanding will facilitate knowledge sharing between both
parties while exploring potential joint investments in upstream projects that may seek to utilize
CCUS applications.
Mansoor Mohamed Al Hamed, CEO Mubadala Energy, said; “When we launched our new strategy
last year, CCUS was an important pillar of our ambitions to further expand our business in low
carbon solutions. I am therefore pleased to forge this exciting collaboration with Pertamina to
explore CCUS opportunities, not least because we share a commitment to play a proactive role in
supporting the energy transition through the decarbonisation of our operations."
He added: "With our track record as a responsible operator delivering reliable and safe operations,
I believe we can harness both companies’ collective expertise to accelerate the deployment of
potential CCUS technologies. And as the United Arab Emirates prepares for COP28, we are proud
to be driving a strategic collaboration that aligns with the Net Zero ambitions of both the UAE and
Indonesia.”
Nicke Widyawati, CEO, Pertamina, commented: “With over six decades of experience in the energy
industry, Pertamina has been integral to Indonesia’s growth story. As the country continues to
develop, the company is committed to decarbonization goals and securing Indonesia’s energy
requirements while supporting the country’s 2060 net-zero goals.”-

Yemen: A decaying oil tanker posed a ‘catastrophic’ risk.
Ruxandra Iordache + NewBase
The UN has begun a 19-day operation to extract oil from a 47-year-old decaying supertanker as it
seeks to end a race against time to avoid a catastrophic oil spill.
The tanker, named Safer, has been
stranded off Yemen’s Red Sea coast for
over eight years after civil war erupted in
the Middle Eastern country. The conflict
has prevented the vessel, which
contains 1.1 million barrels of oil, from
undergoing maintenance since 2015.
This led to growing concerns about a
potential oil spill four times the size of
1989′s Exxon Valdez leak, which was
the second-largest oil spill in U.S.
history.
The UN estimates that a potential spill of
tanker Safer’s cargo would result in $20
billion of cleanup costs, have a “severe”
environmental impact on water and
reefs on Yemen’s coast, and cause
disruptions to the Bab al-Mandab strait
in the Suez Canal.
It would take 25 years for local fish stock
to recover, the UN added.
Now, a major operation is underway
to avert disaster
The UN has begun a 19-day operation to extract oil from a 47-year-old decaying supertanker as it seeks
to end a race against time to avoid a catastrophic oil spill.
The tanker, called Safer, has been stranded off Yemen’s Red Sea coast for over eight after civil war erupted
in the Middle Eastern country.
The UN estimates that a potential spill of tanker Safer’s cargo would result in $20 billion of cleanup costs
and have a “severe” environmental impact on water and reefs on Yemen’s coast.

The oil aboard the tanker began being transferred to a U.N.-owned vessel Yemen, previously known
as Nautica, at 10:45 Yemen time Tuesday.
The operation still poses significant risks as it takes place in open waters, and the tanker Safer’s
infrastructure is significantly corroded.
“The @UN has begun a complex operation to transfer 1 million barrels of oil from a decaying tanker
off the coast of Yemen. We need to keep working to defuse what remains a ticking time bomb &
avoid what would be by far the worst oil spill of our era,” U.N. Secretary-General Antonio Guterres
said on Tuesday on the X social media platform, previously known as Twitter.
“The transfer of the oil to the Yemen will prevent the worst-case scenario of a catastrophic spill in
the Red Sea, but it is not the end of the operation,” said David Gressly, UN resident and
humanitarian coordinator for Yemen. “The installation of a CALM buoy to which the replacement
vessel will be safely tethered is the next crucial step.”
The U.N. launched its initiative to rescue the oil off the tanker Safer in 2019, but has struggled to
gain access to the vessel from Yemen’s Houthi rebel group.
“The neglected FSO Safer supertanker and its 1.1 million barrels of oil cargo has been a ticking time
bomb since 2015 threatening a humanitarian, environmental and economic catastrophe, it is only
the heroic efforts of a small skeleton crew and a great deal of luck that disaster has not
happened,” said Ghiwa Nakat, executive director for Greenpeace MENA, on July 23. “While the
salvage operation has its risks, these are less than doing nothing.”

Indonesia: Pertamina Start Drilling in Rokan Block exploration
Source: Pertamina
Pertamina (Persero) has achieved a historic milestone in Indonesia's oil and gas upstream sector
by conducting the first exploration drilling in the Duri Field of the Rokan Block using Unconventional
Drilling technology. The Unconventional Drilling technology becomes the company’s significant
effort to increase production and achieve the target of producing 1 million barrels of crude oil per
day.
Nicke Widyawati, President Director of PT Pertamina (Persero), explained that Unconventional
Drilling technology was successfully implemented in the United States (US) in 2010, transforming
the US from a net importer to a net exporter within a decade.
'The unconventional drilling technology application can boost Rokan Block's production to
strengthen the national energy resilience while supporting the Government's goal of producing a
million barrels of crude oil per day,' said Nicke.
PT Pertamina Hulu Rokan, a Pertamina Upstream Subholding that manages the Duri Field in Rokan
Block, has partnered with EOG Resources, a US company experienced in Unconventional Drilling
technology. 'With EOG's expertise, we can yield more significant oil and gas reserves to achieve
national energy security,' added Nicke.
The inaugural application of Unconventional Drilling technology took place in the North Duri
Development (NDD) Area 14 Stage-1 of the Rokan Block. This new technology implementation is
part of a new steam flood area development after Pertamina took over the Rokan Block’s
management.
Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero
Emission 2060 target by continuously promoting programs that directly impact the Sustainable
Development Goals (SDGs) achievement. All these efforts align with Environmental, Social &
Governance (ESG) implementation across all Pertamina's business lines and operations.

Saudi Acwa Power in deal to set up 10GW wind project in Egypt
Trade Arabia + NewBase
Acwa Power, a leading developer and operator of power generation and water desalination plants
worldwide, said it has signed an agreement with the Egypt's New and Renewable Energy Authority
(NREA) to set up a 10 gigawatt (GW) wind project in the country.
The wind power plant is expected to provide the Egyptian economy with $6.5 billion in savings in
annual natural gas costs and secure up to 120,000 job opportunities, said the statement from Acwa
Power.
Under the deal, NREA will allocate approximately 3,000 sq km of land west of Sohag, an urban
centre, for the project.
On completion, the wind project is expected to generate around 50,000 GW-hours of clean energy
annually, providing electricity to around 11 million households and mitigating the impact of 25.5
million tonnes of carbon emissions each year.
A leading player in the region's utilitites sector, Acwa Power has had a major presence in Egypt
since 2015.
The company has three other facilities in Egypt, that are either in operation, under construction or
in advanced development, including a 120 MW solar PV project in Benban, a 200 MW solar PV
facility in Kom Ombo, and the 1.1 GW Suez Wind Energy project.
Speaking at the signing ceremony, Dr Mohamed Shaker Al Marqabi, the Minister of Electricity and
Renewable Energy, said: "Egypt has adopted an ambitious programme to advance the electricity
sector in various fields, which includes maximising the utilisation of new and renewable energy

resources, encouraging investment in these fields to enable energy independence from fossil fuels,
continuing to reduce carbon emissions, and increasing renewable energy capacity in the energy
mix up to 42% by 2035."
"This focus also aligns with Egypt’s Vision 2030 and the National Climate Strategy 2050 with a view
to mitigating the impact of climate change challenges and achieving sustainable economic growth,"
he stated.
The agreement was signed by Dr Mohamed El Khayat, Chairman of NREA, and Engineer Hassan
Amin, Country Director – Egypt, Acwa Power in the presence of Dr Moustafa Madbouly, Prime
Minister of Egypt; and Dr. Mohamed Shaker, the Egyptian Minister of Electricity as well as senior
officials of Acwa Power led by its CEO Marco Arcelli.
Arcelli said today's signing furthers the group's commitment to driving sustainable development and
powering Egypt's future with clean, reliable, and renewable energy.
"We are determined to harness the vast potential of wind power, creating jobs, reducing emissions,
and ensuring a greener and brighter future for Egypt, in alignment with ACWA Power's vision for a
sustainable planet," he added.-

U.S Natural gas prices fall in first half of 2023 amid record
production and mild temperatures ….. EIA
The average monthly spot natural gas price at the U.S. benchmark Henry Hub fell 34%, or $1.12
per million British thermal units (MMBtu), to $2.18/MMBtu between January and June, according
to data from Refinitiv Eikon.
The Henry Hub price averaged $3.30/MMBtu in January on an inflation-adjusted basis and then
dropped below $2.50/MMBtu starting in February. Relatively mild temperatures, record production,
and higher-than-average inventories reduced natural gas prices. When adjusted for inflation, this
year has seen the lowest average monthly Henry Hub price since June 2020.
Relatively mild winter temperatures reduced demand for space heating across most of the United
States in the first quarter of 2023, reducing natural gas consumption. The West Census Region was
the only part of the Lower 48 states to experience relatively colder winter temperatures this winter
than last winter.
U.S. natural gas consumption averaged 103.0 billion cubic feet per day (Bcf/d) between January 1
and April 30, 2023, down 1.0 Bcf/d from the same period in 2022, according to our Natural Gas
Monthly. The decline was led by the residential and commercial sectors, where combined
consumption fell 18% in January and 12% in February 2023 compared with the same months in
2022.
Industrial natural gas consumption also decreased slightly, falling 3% in the first quarter of 2023
compared with the first quarter of 2022. However, the electric power sector, which consumes more
natural gas than any other sector, used a record-high average of 30.78 Bcf/d between January and

March 2023, up 8.4% compared with the same period in 2022. This increase was driven by
the increased winter heating demand in the West.
U.S. dry natural gas production has outpaced demand so far in 2023, contributing to lower natural
gas prices. Dry natural gas production has remained at record highs in 2023, averaging over 101.0
Bcf/d each month. In the first quarter of 2023, dry natural gas production increased 7%, or 6.9 Bcf/d,
from the same period in 2022.
forecast Henry Hub prices will increase from the current price between July and December 2023,
averaging $2.83/MMBtu through the end of 2023, according to our July Short-Term Energy Outlook.
We expect the price to peak at $3.44/MMBtu in December, up from $2.18/MMBtu in June. We
expect consumption will rise to 107 Bcf/d in December 2023, a 2.1 Bcf/d decrease from December
2022. We expect dry natural gas production to average 102.6 Bcf/d (from July to December).

NewBase July 27 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil climbs close to April peak on tighter supply
Reuters + NewBase
Oil climbed almost 1% on Thursday, recouping losses from the previous session, supported by
supply tightness owing to OPEC+ production cuts and renewed optimism on the outlook for Chinese
demand and global growth.
Crude has posted four consecutive weekly gains on an expected tightening of supply because of
output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known
collectively as OPEC+, as well as some involuntary outages.
Brent crude advanced 61 cents, or 0.74%, to $83.53 a barrel by 1120 GMT while U.S. West Texas
Intermediate (WTI) crude rose 72 cents, or 0.9%, to $79.50. Intra-day peaks for both contracts were
near their highest since April 19.
"We see the oil market undersupplied," UBS analysts said in a report. "We retain a positive outlook
and look for Brent to rise to $85–90 over the coming months."
Oil price special
coverage

Oil prices dropped on Wednesday after data showed U.S. crude inventories fell less than expected
and the U.S. Federal Reserve raised interest rates by a quarter of a percentage point, leaving the
door open to another increase.
Still, Asian shares jumped to five-month highs on Thursday on hopes that the U.S. tightening
cycle was over and the economy was heading for a soft landing, boosting the outlook for global
growth and risk appetite.
The European Central Bank, also viewed as approaching the end of its tightening campaign, is
expected to raise interest rates for the ninth time in a row on Thursday.
A pledge on Monday from China to boost policy support for the economy is continuing to underpin
sentiment.
"The Chinese authorities have signalled to step up support measures to revive the ailing Chinese
economy, which in turn has spurred hopes of oil demand regeneration from the world's largest
importer of crude oil," Phillip Nova analyst Priyanka Sachdeva said in a note.
Coming into focus is an Aug. 4 meeting of key OPEC+ ministers to review the market.

NewBase Specual Coverage
The Energy world –July-27 -2023
CLEAN ENERGY
Gasoline Is Surging All Over World in Fresh Inflation Blow
Boomberg
The price of gasoline is starting to surge everywhere, an inflationary omen for central banks and
governments the world over.
Futures just soared to a nine-month high in New York,
sending shock waves through to the pump, while prices
have also been rising in Asia. Markets for the motor fuel
have tightened worldwide due to a combination of
unexpected refinery outages plus lower-than-normal
stockpiles in key storage hubs such as the US Gulf
Coast and Singapore for this time of the year.
In global energy markets, it’s telling that while crude oil
futures are little changed year-to-date, US gasoline
contracts have rallied by more than 20%. The
resurgence in gasoline potentially poses a headache for central banks including the US Federal
Reserve as policymakers grapple with the problem of how much more monetary tightening, if any,
is needed to bring inflation to heel.
Gasoline prices are often a topic of contention as those costs can be an essential daily expense for
many, alongside food and rent. Energy prices are one of the many factors that have contributed to
surging inflation globally. In the US, reining in prices at the pump will also be a crucial issue for
President Joe Biden with the next election just over a year away, especially after he ordered the
sale of a huge chunk of the nation’s strategic petroleum reserve last summer.

“Higher energy costs may push up consumer prices and lead to renewed goods inflation — a sector
where price increases have slowed,” said Andrew Hollenhorst, chief US economist at Citigroup Inc.
For perspective, a one-cent rise in a gallon of gasoline in the US takes away about $1.15 billion
annualized spending power, according to Brett Ryan, senior economist at Deutsche Bank AG. That
means the $1.30 a gallon drop in the second quarter saved consumers $150 billion, and that’s
money they could spend on other goods and services. Now, this tailwind could turn into a headwind
and drag on spending should prices continue to rise materially, Ryan said.
Global Strength
Low inventories and high demand across key regions are driving prices higher around the world. In
Europe, gasoline prices are rising faster than crude, although this trend has yet to fully translate to
higher costs at the pump. Meanwhile, conditions in the Singapore market, a key Asian hub, have
also firmed on lower-than-expected Chinese exports. In many emerging markets, that translates
into a heavier burden for governments given many have fuel subsidies in place to buffer costs for
poorer citizens.
Global gasoline supply has failed to recover significantly from historically low levels despite
additions of refining capacity in the Middle East and China. Even the US had the biggest expansion
in more than a decade, and that’s before another refinery slated to shut by year-end got an
unexpected extension.
These expansions haven’t been enough to offset a string of unplanned outages including Exxon
Mobil Corp.’s Baton Rouge unit in the US, Shell Plc’s Pernis site in Rotterdam and ENEOS Holdings
Inc.’s’ Mizushima facility in Japan. These disruptions tightened supplies at a time when inventories
are still low.
Refining systems across the world are more susceptible to outages after running hard for years,
according to Callum Bruce, an analyst at Goldman Sachs Group Inc. In addition, a wave of record-
breaking heat in Europe and parts of Asia is also making it harder to run lighter crudes, he added.

In China, the largest crude importer, a range of indicators point to buoyant demand. Congestion
levels in the 15 cities with the most car registrations have risen by about a quarter compared with
January 2021, according to data from Baidu Inc. tracked by BloombergNEF. At the same time,
commercial gasoline inventories have been estimated at the lowest since at least 2019.
China’s gasoline demand is forecast at around 3.3 million barrels a day in July, according to
estimates by Rystad Energy. That’s 14% higher than in the same month of 2019, the last year before
Covid restrictions decimated consumption.
European Quandary
In Europe, gasoline usage has been rebounding too, with France, Germany, Spain and Italy all
posting year-on-year increases in consumption. At the same time, the region is still feeling the
supply pinch from sanctions on Russia that deprived local refiners of crude and other raw materials
for gasoline.
The loss of heavy naphtha from Russia, for example, has led to a dearth of feedstock for gasoline-
making units known as reformers. That has led to a squeeze in components that add to the octane
rating of gasoline, ultimately squeezing the supply of gasoline that is suitable for European cars,
according to Sparta Commodities.
Switching away from Russia’s flagship Urals grade to lighter American crude has led to an excess
of light naphtha, which can be blended into gasoline but requires other components such as
reformate. This dynamic has further lifted the cost of premium gasoline, which calls for more
reformate.
The supply of gasoline has also been constrained by the recent counter-seasonal strengthening in
diesel, according to Wood Mackenzie Ltd. That had prompted refiners to boost production of the
fuel at the expense of gasoline, said Mark Williams, research director at the consulting firm.

NewBase Energy News 03-July 2023 - Issue No. 1639 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services

NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase 27 July-2023 Energy News issue - 1642 by Khaled Al Awadi.pdf

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