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NewBase Energy News 27 October 2022 No. 1561 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Dubai’s Hatta hydroelectric plant work over 50% Completed
TradeArabia News Service NewBase
Dubai Electricity and Water Authority (Dewa) has announced that more than 50% of the work has
been completed on the pumped-storage hydroelectric power plant at Hatta. A first station of its kind
in the GCC, it involves investments of up to AED1.421 billion ($387 million).
Giving a project update, Dewa said the construction of the 72-m main Roller Compacted Concrete
(RCC) wall of the upper dam is over and also the work on the 37-m-high RCC side wall at the
project’s upper dam, is fully completed.
The plant will have a production capacity of 250 megawatts (MW) and a storage capacity of 1,500
megawatt-hours and a life span of up to 80 years. It will use the stored water in Hatta Dam, and the
upper dam that is built in the mountain to produce electricity.
Saeed Mohammed Al Tayer, MD & CEO of Dewa, said the Hatta plant comes as part of its efforts
to achieve the Dubai Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050
to provide 100 percent of Dubai’s total power production capacity from clean energy sources by
2050.
"The project supports the comprehensive plan to develop Hatta and meet its social, economic,
developmental and environmental needs, in addition to providing job opportunities for citizens in
Hatta," he stated.
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Al Tayer said Hatta project was launched as part of its initiatives to diversify energy production from
renewable and clean sources in Dubai.
These include different technologies such as solar photovoltaic panels, concentrated solar power,
and green hydrogen production using renewable energy, he added.-
About: Hatta Pumped Storage Hydro Power Plant, Dubai
Construction of a Pumped Storage Hydro Power Plant located near the community of Hatta in the
Hajar Mountains, 140 km southeast of the city of Dubai. The HPP is a major component to achieve
the targets of Dubai’s Clean Energy Strategy 2050.
The existing Saad Hatta Al Awwal Dam will be used as the lower reservoir, the upper reservoir will
be approx. 150m higher. Both reservoirs will be connected by a 1.2 km long pressure tunnel. The
upper reservoir will be constructed with two roller-compacted concrete dams with a height of
approximately 35 m and 70 m.
Additionally a powerhouse with 2 units capable of generating a total net power of 250MW over the
6 hours generation cycle. Waterways will consist of one tunnel of approx. 1300m length and 7m
diameter to feed the powerhouse with approx. 200m³/s.
Also part of the works is the construction of two road tunnels with a length of approximately 470 m
and 440 m using blast excavation as well as the construction of the reinforced outflow and intake
structures, several ancillary buildings and mechanical and electrical systems.
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Russia's coal exports to China, Infrastructure bottlenecks hamper
Bloomberg + NewBase
Russian coal exports to energy-hungry China have jumped by about a third this year but the supply
boom is being constrained by transport infrastructure limitations, industry sources and officials said.
China is seeking coal supplies from overseas, in particular after recent COVID-19 outbreaks in the
major coal mining regions of Inner Mongolia and Shaanxi forced many mines to close, while coal
demand at power generation and heating sectors will soon pick up with the coming of winter.
The Kremlin plans to increase its energy supplies to Asia, China in particular, to offset a slump in
exports to the West, which has imposed sanctions on Russia over the conflict in Ukraine.
Russia is the world's sixth-largest coal producer and one of top coal exporters, along with Indonesia
and Australia. Its share of global coal exports reached 17% last year with supply of 223 million
tonnes.
But now with more exports heading east towards Asia as opposed to west towards Europe,
bottlenecks are appearing.
"Many of us were informed by the sellers that there will be delays on loading and arrivals, which
causes trouble to our business," a Chinese coal trader said.
Another source said that some traders were simply told by sellers or miners that a coal shipment
was cancelled due to the lack of rail capacity and could be delayed for weeks. Russian First Deputy
Prime Minister Andrei Belousov has acknowledged the problem with infrastructure constraints,
saying this month that the situation with coal exports and congestion on the rail system had not
The Kremlin plans to increase its energy supplies to Asia,
China in particular, to offset a slump in exports to the
West, which has imposed sanctions on Russia over the
conflict in Ukraine
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stabilised, though it was improving. China's coal imports from Russia fell to 6.95 million tonnes last
month, down from a peak of 8.54 million tonnes in August, according to China's customs data.
According to Russian transport industry sources, Russia has increased coal supplies to China by
railways by about a third this year, to 27.6 million tonnes in the January-August period.
WINTER DEMAND
But the increase in cargo traffic has led to slower deliveries.
According to a Reuters analysis, it took about 12.6 days to deliver a coal cargo from fields in Siberia,
such as Kuzbass, to Russia's Pacific ports in July-September, compared with 11.3 days on average
in the same period last year.
On average, delivery time across Russia has increased by a fifth, or 1.4 days, according to Reuters
analysis of railway data, and timings may increase in the winter due to the railway congestion and
port capacity limitations.
"We would expect China's coal imports from Russia to decrease due to the cool weather, which will
limit port loading, and the rail logistics cap will also help to put a lid on," the Chinese coal trader
said.
Of Russia's total of 223 million tonnes of coal exports last year, 49 million tonnes were delivered to
Europe, according to the Energy Ministry. But Russia now expects its coal exports to decline in
coming years due to the Western sanctions over the Ukraine conflict, and U.S., European Union
and British embargos on Russian coal imports.
According to Russian government expectations, coal exports may fall by 22% this year and by a
further 31% in 2023. But at the same time, the rush of east-bound exports is getting bogged down.
"A lot of railcars accumulate, congestion is formed at port stations ... Turnaround times for railcars
are increasing significantly. Shippers are looking for empty railcars," a Russian transport industry
source said.
Russian Deputy Prime Minister Alexander Novak said Russia plans to increase the capacity of its
infrastructure, including that of its eastern ports, where capacity is expected to increase by between
55 million tonnes and 211 million tonnes per year by 2031 from 150 million tonnes now.
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Tanzania LNG Project Could Add
$7 Billion to GDP, Study Says
 Final investment decision on $40 billion plant expected 2025
 Standard Bank study also sees domestic gas expansion
Tanzania Inks Deal With Shell, Equinor for $30-Billion LNG Terminal
Tanzania has signed an LNG framework agreement to reboot a plan to build an LNG export
terminal on the Indian Ocean., June 14, 2022, By Pat Davis Szymczak
Shown here is the Kizomba-A production facility located at Angola’s deepwater Block 15 in which
Equinor holds a 12% interest. ExxonMobil operates the block.
The government of Tanzania has signed a liquefied natural gas (LNG) framework agreement with
the UK’s Shell and Norway’s Equinor that is expected to kick-start construction of a $30- to $40-
billion LNG export terminal to commercialize the country’s deepwater offshore gas reserves.
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The deal signed by the three parties on 11 June is foundational to the Tanzanian government’s
issuance of a Host Government Agreement (HGA) later this year which will outline the project’s
technical, commercial, and legal terms, according to Bloomberg.
Front-end engineering and design (FEED and pre-FEED) will be completed within 3 years of HGA
signing, with a final investment decision targeted in 2025. A 4- to 5-year construction period will
follow with a first LNG drop planned by 2029–2030.
The plant will be built at the East African nation’s southern coastal town of Lindi. It will be linked via
a 100-km subsea pipeline to significant deepwater gas discoveries off Tanzania’s southern coast
and have a 30-year life span, according to Equinor.
If all goes as planned, 2025 will be significant also as the year Tanzania becomes a transit state for
crude oil passing from Uganda’s Lake Albert development through the East African Crude
Oil Pipeline to be exported through the Tanzanian port town of Tanga.
Regulatory delays had stalled construction of the LNG project during Tanzania’s late
President John Magufuli’s tenure in office, but his successor and current president,
Samia Suluhu Hassan, reignited discussions shortly after taking office a year ago,
Aljazeera reported. First talks regarding the plant were initiated in 2014. But now there
is a new sense of urgency.
Tanzania is among the gas-rich African nations that now see LNG exports as a way
to transform their economies in light of today’s geopolitical realignment of energy
trade and the opening of new market opportunities. Energy Minister January
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Makamba singled out Asia as Tanzania’s No. 1 target market given his country’s
geographic position on the Indian Ocean, during the LNG signing ceremony.
An artist’s rendering of Tanzania’s future LNG export and gas processing facility at the town of Linde
and the deepwater upstream operation offshore that will provide the gas resource. Source: Equinor
Developing New Gas Resources
With regard to the development of Tanzania’s gas resource base, Shell currently operates Block 1
and Block 4 offshore where it has discovered 16 Tcf (453 Bcm) of recoverable natural gas. Shell
holds a 60% interest in a production-sharing agreement (PSA) with the Tanzanian government
that expires in 2024. Other partners include Pavilion Energy (20%) and Jakarta-based Medco
Energy (20%).
Pavilion is a subsidiary of Temasek, a global investment company based in Singapore that is
focused on LNG shipping and trade in Asia and Europe. Medco has exploration and production
operations in Indonesia, Mexico, Libya, and Tanzania as well as interests in power, gas trading and
mining, according to the companies’ websites.
Equinor operates Block 2, where it has drilled more than 15 exploration wells since 2011 resulting
in nine discoveries at water depths of 2500 m with an estimated 20 Tcf of gas, according to Equinor’s
website. The Norwegian major plans to develop the field using subsea wells located on the seabed
to avoid having to build expensive facilities at sea level.
Equinor entered the Tanzania market in 2007 after having signed a PSA for Block 2 with Tanzania
Petroleum Development Corp. (TPDC). Equinor has a 65% operating interest in Block 2, while
ExxonMobil holds a 35% working interest. TPDC has the right under the PSA to participate with a
10% interest.
Overall, Tanzania estimates its recoverable offshore reserves at more than 57 Tcf (1,630 Bcm)
which are reported to be the sixth-largest in Africa.
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Hassan as well as leaders of other gas-rich African countries have been floating the idea that the
continent has the resources to join other global LNG producers in supplying Europe as the EU seeks
to end its energy dependence on Russia.
But, as several leaders among those representing the 11 nations present at the Gas Exporting
Countries Forum held in Qatar on 22 February (2 days before Russian troops crossed into Ukraine)
pointed out, significant investment would be needed to develop new gas infrastructure capable of
replacing current Russian imports. Also, Europe would need to sign long-term contracts, Aljazeera
noted in its coverage of the forum.
Europe for the most part has moved away from long-term agreements over the past decade,
preferring the flexibility of spot market purchases of fossil fuel, especially considering the push to
replace carbon-intensive oil and gas with green, low- or no-carbon renewables.
There is also political risk. While Tanzania may be stable, it had planned to join with neighboring
Mozambique in a wider vision to create a greater East African LNG hub. But it is uncertain when
Mozambique’s stalled LNG development might get back on track after an insurgency caused
France’s TotalEnergies to declare force majeure on its multibillion dollar operation in April, 2021.
Equinor’s deepwater offshore blocks that would contribute to the resource base for the Lindi LNG
plant. Source: Equinor
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U.S: 2 LNG Plants Start Construction, In Gas-Starved World
Bloomberg + NewBase
Two giant projects that will allow the US to send more of its shale gas overseas are inching forward.
Sempra recently issued a so-called limited notice to proceed to its contractor Bechtel, which clears
the way for the early stages of construction to begin at its Port Arthur liquefied natural gas project
in Texas. NextDecade Corp. issued a similar notice to Bechtel for its Rio Grande LNG project, also
in the Lone Star State, a document seen by Bloomberg shows.
They are small but symbolic -- and politically significant -- steps as Russia’s war in Ukraine has
wiped out global gas supplies and made buyers in Europe and Asia more dependent than ever on
the US for the fuel.
A merican gas companies have
been working for years on
multibillion-dollar LNG terminals to
help bring US shale supplies
overseas, but so far only a handful of
terminals have been able to reach a
point at which they’re sending
regular shipments abroad.
Even with construction beginning,
the Port Arthur and Rio Grande
terminals are still likely four years
away from their first exports.
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Sempra and NextDecade didn’t immediately respond to requests for comment. Bechtel, who is listed
as a contractor for both of the companies’ projects in public documents, declined to comment.
The notices were issued after both
companies signed supply deals with
overseas buyers, but they must still
secure billions of dollars to finance the
projects. Port Arthur LNG has so far
sold nearly three-fourths of its
production mostly to European buyers
while Rio Grande LNG has locked in
mostly Asian buyers for three-fourths of
the production for its first two units at its
complex.
Sempra had previously said that it was
looking at issuing a limited notice to
proceed on or before Nov. 15.
NextDecade had recently told
regulators that it planned to begin the
process of clearing the project site this
month.
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U.S Decline in drilled but uncompleted wells limit crude oil growth
U.S. Energy Information Administration, Drilling Productivity Report, October 2022
According to our Drilling Productivity Report (DPR), more wells were completed than were drilled in
the United States from July 2020 through September 2022 (the latest month for which data are
available).
As a result, the number of drilled but uncompleted wells (DUCs) in the United States fell to 4,333
as of September 2022, the fewest since at least December 2013, when we started estimating the
number of DUCs. Fewer DUCs, along with natural gas pipeline constraints, could limit future U.S.
crude oil production growth.
The two main stages in bringing a horizontally drilled, hydraulically fractured well online are drilling
and completion. The drilling phase involves dispatching a drilling rig and crew, who then drill one or
more wells on a pad site.
A separate crew typically performs the
completion phase by casing, cementing,
perforating, and hydraulically fracturing
the well so it can begin production. In
general, the time between the drilling and
completion stages is several months.
Of the seven major oil- and natural gas-
producing regions in the United States
covered in our DPR, the Permian region
accounts for around 60% of the crude oil
total production.
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Because most natural gas from the Permian region is produced along with, and as a result of, crude
oil production, limitations on the ability to ship natural gas out of the Permian region, known as
takeaway capacity, could limit future crude oil production growth in the region.
Crude oil producers can flare excess natural gas, but the Texas Railroad Commission regulates the
amount of flaring allowed in the Texas portion of the Permian region. As natural gas takeaway
capacity approaches its limits in the Permian region, the Commission may grant flaring permits,
which could lessen oil production constraints.
You can find more detailed analysis on this topic in our This Week in Petroleum article published on
October 19, 2022.
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NewBase October 27 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices climb on strong U.S. crude exports, China fears linger
Reuters + NewBase
Oil prices rose on Thursday, extending a more than 3% rally in the previous session, boosted by
record U.S. crude exports and a weaker U.S. dollar, though gains were capped in Asia due to
lingering fears over slack demand in China.
Brent crude futures gained 20 cents, or 0.26%, to $95.94 a barrel by 0516 GMT. U.S. West Texas
Intermediate (WTI) crude climbed 23 cents, or 0.26%, to $88.14 a barrel.
U.S. crude stocks rose 2.6 million barrels last week, according to weekly government data on
Wednesday, with crude exports rising to 5.1 million barrels a day, the most ever.
"Solid U.S. crude exports raised optimism over demand and prompted fresh buys, but concerns that
China's muddled economic policies may continue under President Xi Jinping's growing power
limited gains in Asia," said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
Global investors dumped Chinese assets early this week on fears that ideology may increasingly
trump growth under China's most powerful leader since Mao Zedong.
Oil price special
coverage
 U.S. exports surge to a record - EIA
 World Bank projects 11% energy price decline in 2023
 Dollar slips as bets mount for less hawkish Fed
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The World Bank on Wednesday said it expects energy prices to decline by 11% in 2023 after this
year's 60% surge following Russia's invasion of Ukraine, although slower global growth and COVID
restrictions in China could lead to a deeper fall. Moscow calls its actions in Ukraine "a special
operation".
Meanwhile, the dollar's weakness added support, as the greenback's strength of late has been a
notable factor inhibiting oil market gains. The dollar retreated on Thursday as market expectations
mounted that the U.S. Federal Reserve will tone down its aggressive stance on interest rate hikes.
A weaker dollar makes greenback-denominated crude less expensive for other currency holders.
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European Gas Slumps to €100/MW ( 29$/mmbtu) on Mild Weather
Natural gas in Europe dropped below €100 per megawatt-hour for the first time since June as
unusually warm weather and ample supplies ease fears of shortages this winter.
Benchmark futures finished 13% lower on Monday, and have slumped more than 70% from the
peaks of August. High temperatures are expected to remain into next month, delaying the heating
season and allowing storage sites to continue to be filled. The fuller-than-usual reserves would
provide the buffer needed for when the weather inevitably turns cold.
The improved conditions are easing some pressure on Europe’s policy makers, with the energy
crisis helping push the economy to the brink of recession and inflation to the highest level in
decades. Despite the recent dip, prices remain about three times higher than the five-year average
for the time of the year, and cold snap could quickly renew supply concerns.
“Europe is in a comfortable place concerning supplies now,” said Graham Freedman, an analyst at
consultancy Wood Mackenzie. “The risks of blackouts and rationing are receding. But the real test
will be when we have cold weather.”
Dutch front-month gas futures, the European benchmark, settled at €99.17 a megawatt-hour, the
lowest since June 14. The UK front-month gas contract fell 10%, while German power for next year
also slid.
There remains a good chance of a further decline in prompt gas prices due to mild weather and a
glut of LNG arrivals, together with a slowdown in demand, said Ole Hansen, head of commodity
strategy at Saxo Bank A/S. But longer-term contracts are still trading above the current level. “It
highlights the continued risk to supply next year,” he said.
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European Union leaders have already agreed to back more measures to tackle the energy crisis,
including supporting a cap on the price of gas in electricity generation and steps to avoid extreme
spikes. The bloc’s energy ministers will meet this week to continue to hash out the details.
Click here to read the daily Europe Energy Crunch blog
There are also increased calls from member states for more action to protect the economy from
high costs, even as the International Monetary Fund warned over the weekend of a “toxic mix” of
rapid inflation and flagging growth in the region.
Navigate Winter
The high storage levels and imports to replace some of the lost Russian supplies will likely be
enough to “navigate a normal winter,” Bloomberg Intelligence analyst Patricia Alvarez wrote in a
note. “But curbing demand remains key in mitigating the impact of further Russian gas cuts.”
Pipeline shipments from Moscow have plunged to just about 20% of what they used to be before
the war in Ukraine and subsequent sanctions on Russia. The loss of those volumes would make it
harder for Europe to replenish crucial reservoirs at the end of winter, potentially making next year
difficult as well.
But German Economy Minister Robert Habeck told Handelsblatt that the country would be in a much
better position next winter than this one as more LNG flows in. Supplies from places including
Norway and the Netherlands should make up about one-third of lost flows of the shut Nord Stream
pipeline that carried Russian gas.
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NewBase Specual Coverage
The Energy world –October -01 -2022
CLEAN ENERGY
Eni launches the World Energy Review 2022
Source Eni ( https://www.eni.com/assets/documents/eng/topic/global-energy-scenarios/world-energy-review-2022.pdf)
Eni’s 21st statistical review highlights the challenge that the energy industry is facing to improve
universal access to affordable energy while, at the same time, accelerating the transition process
towards a more sustainable energy mix
Eni has released the 21st edition of its annual energy statistics report, available online at eni.com.
The main challenge that the energy industry is facing is to improve universal access to affordable
energy while, at the same time, accelerating the transition process towards a more sustainable
energy mix.
In 2021 the easing of Covid-19 restrictions and the ensuing economic recovery led to a rebound in
energy demand, barely met by the available resources that were constrained by a legacy of limited
investment in the Oil & Gas sector. The precarious balance resulted in higher commodity prices,
highlighting the vulnerabilities in the energy system. This year the war in Ukraine has further
emphasised the importance of energy security.
By acknowledging the ongoing process of change, the World Energy Review, now in its 21st edition,
this year is released in an interactive and modular version, and introduces the topic of critical
minerals, as well.
The transition from fossil fuels to low-carbon energy sources calls for the massive deployment of a
wide range of clean energy technologies, many of which in turn rely on these critical minerals, with
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production taking place in a few countries. To ensure energy transition and energy security, this
important aspect must be taken into consideration.
Below are the key messages derived from the analysis of the world of oil,
natural gas, the main renewable sources and critical minerals:
 Oil prices were up by 70% in 2021 as demand recovered (+6.1% YoY) but
remained below pre-pandemic levels. OPEC+ kept a “close eye” on production
and market balance, delivering a gradual easing of cuts in the second half of the
year while by the year-end bringing down global inventories to below the
previous five-year average. Production capacity growth struggled to keep pace
with the recovery in demand. World oil production increased by 1.4% YoY in
2021. There was no significant change in terms of crude quality. It was
confirmed that the process of the lightening barrel halted, most notably due to
broadly unchanged US production growth.
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 Gas prices were up in all markets (~+400% in Europe, + 300% in Asia and +
90% in US), with a marked uptick in the second half of the year. The post-Covid
rebound in energy consumption and the challenge of adjusting supply up in a
timely fashion (also due to the unplanned stoppages of some liquefaction plants)
were the main drivers underlying this upward trend. In 2021 global gas demand
returned to growth (+3.9%) after the decline in 2020, notably in Russia
(+11.8%) and Europe (+6.7%). Among the top -10 gas consuming countries,
the U.S., albeit still at the first place, confirmed the negative trend of 2020 with
a -1.6% fall, while China recorded an increase of 4.2%, retaining its position as
the largest global importer. Global gas production also reported a 3.5%
increase, after the slowdown in 2020, mainly accounted for by Russia (+9.8%)
and Africa (+11.9%, especially Algeria and Egypt). In 2021 LNG saw its share
on total traded gas at 39% (40% in 2020), downwards for the first time since
2015. However, in 2021 the LNG traded volumes grew to 488 Bcm, of which
around 70% was imported into Asian countries. Over the year, the U.S.
increased its LNG exports by 9%.
 In 2021, solar and wind share on total power generation reached 10%,
increasing by 1 percentage point with respect to the previous year. In 2021
solar power continued to dominate renewable capacity expansion with 138 GW
of new installations, half of which was installed in China (53 GW) and US (20
GW). Global installed solar capacity reached 855 GW (+19% YoY), almost
entirely photovoltaic. In 2021 wind also kept growing: global capacity reached
823 GW (+12.6% YoY). Compared with 2020 (+111 GW), new installations
decreased to 92 GW, roughly half of which were installed in China (+47 GW).
 All critical minerals included in this review (cobalt, copper, lithium, nickel and
rare earths) saw an increase of production in 2021, reflecting an uptick in
demand and prices, after the constraints of the health emergency in 2020.
 World oil production increased by 1.4% YoY in 2021. There was no significant change in
terms of crude quality. It was confirmed that the process of the lightening barrel halted,
most notably due to broadly unchanged US production growth.
 In 2021 global gas demand returned to growth (+3.9%) after the decline in 2020,
notably in Russia (+11.8%) and Europe (+6.7%). Among the top-10 gas consuming
countries, the U.S., albeit still at the first place, confirmed the negative trend of 2020 with
a -1.6% fall, while China recorded an increase of 4.2%, retaining its position as the largest
global importer.
 Global gas production also reported a 3.5% increase, after the slowdown in 2020,
mainly accounted for by Russia (+9.8%) and Africa (+11.9%, especially Algeria and Egypt).
 In 2021 LNG saw its share on total traded gas at 39% (40% in 2020), downwards for
the first time since 2015. However, in 2021 the LNG traded volumes grew to 488 Bcm, of
which around 70% was imported into Asian countries. Over the year, the U.S. increased
its LNG exports by 9%.
 In 2021, solar and wind share on total power generation reached 10%, increasing by
1 percentage point with respect to the previous year.
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
 In 2021 solar power continued to dominate renewable capacity expansion with 138
GW of new installations, half of which was installed in China (53 GW) and US (20 GW).
Global installed solar capacity reached 855 GW (+19% YoY), almost entirely photovoltaic.
 In 2021 wind also kept growing: global capacity reached 823 GW (+12.6% YoY).
Compared with 2020 (+111 GW), new installations decreased to 92 GW, roughly half of
which were installed in China (+47 GW).
 All critical minerals included in this review (cobalt, copper, lithium, nickel and rare
earths) saw an increase of production in 2021, reflecting an uptick in demand and
prices, after the constraints of the health emergency in 2020.
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
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 22
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 23
NewBase Energy News October 2022 - Issue No. 1561 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 24
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 25
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 26
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 27

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NewBase 27-October -2022 Energy News issue - 1561 by Khaled Al Awadi_compressed.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 27 October 2022 No. 1561 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U.A.E: Dubai’s Hatta hydroelectric plant work over 50% Completed TradeArabia News Service NewBase Dubai Electricity and Water Authority (Dewa) has announced that more than 50% of the work has been completed on the pumped-storage hydroelectric power plant at Hatta. A first station of its kind in the GCC, it involves investments of up to AED1.421 billion ($387 million). Giving a project update, Dewa said the construction of the 72-m main Roller Compacted Concrete (RCC) wall of the upper dam is over and also the work on the 37-m-high RCC side wall at the project’s upper dam, is fully completed. The plant will have a production capacity of 250 megawatts (MW) and a storage capacity of 1,500 megawatt-hours and a life span of up to 80 years. It will use the stored water in Hatta Dam, and the upper dam that is built in the mountain to produce electricity. Saeed Mohammed Al Tayer, MD & CEO of Dewa, said the Hatta plant comes as part of its efforts to achieve the Dubai Clean Energy Strategy 2050 and Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai’s total power production capacity from clean energy sources by 2050. "The project supports the comprehensive plan to develop Hatta and meet its social, economic, developmental and environmental needs, in addition to providing job opportunities for citizens in Hatta," he stated.
  • 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 Al Tayer said Hatta project was launched as part of its initiatives to diversify energy production from renewable and clean sources in Dubai. These include different technologies such as solar photovoltaic panels, concentrated solar power, and green hydrogen production using renewable energy, he added.- About: Hatta Pumped Storage Hydro Power Plant, Dubai Construction of a Pumped Storage Hydro Power Plant located near the community of Hatta in the Hajar Mountains, 140 km southeast of the city of Dubai. The HPP is a major component to achieve the targets of Dubai’s Clean Energy Strategy 2050. The existing Saad Hatta Al Awwal Dam will be used as the lower reservoir, the upper reservoir will be approx. 150m higher. Both reservoirs will be connected by a 1.2 km long pressure tunnel. The upper reservoir will be constructed with two roller-compacted concrete dams with a height of approximately 35 m and 70 m. Additionally a powerhouse with 2 units capable of generating a total net power of 250MW over the 6 hours generation cycle. Waterways will consist of one tunnel of approx. 1300m length and 7m diameter to feed the powerhouse with approx. 200m³/s. Also part of the works is the construction of two road tunnels with a length of approximately 470 m and 440 m using blast excavation as well as the construction of the reinforced outflow and intake structures, several ancillary buildings and mechanical and electrical systems.
  • 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 Russia's coal exports to China, Infrastructure bottlenecks hamper Bloomberg + NewBase Russian coal exports to energy-hungry China have jumped by about a third this year but the supply boom is being constrained by transport infrastructure limitations, industry sources and officials said. China is seeking coal supplies from overseas, in particular after recent COVID-19 outbreaks in the major coal mining regions of Inner Mongolia and Shaanxi forced many mines to close, while coal demand at power generation and heating sectors will soon pick up with the coming of winter. The Kremlin plans to increase its energy supplies to Asia, China in particular, to offset a slump in exports to the West, which has imposed sanctions on Russia over the conflict in Ukraine. Russia is the world's sixth-largest coal producer and one of top coal exporters, along with Indonesia and Australia. Its share of global coal exports reached 17% last year with supply of 223 million tonnes. But now with more exports heading east towards Asia as opposed to west towards Europe, bottlenecks are appearing. "Many of us were informed by the sellers that there will be delays on loading and arrivals, which causes trouble to our business," a Chinese coal trader said. Another source said that some traders were simply told by sellers or miners that a coal shipment was cancelled due to the lack of rail capacity and could be delayed for weeks. Russian First Deputy Prime Minister Andrei Belousov has acknowledged the problem with infrastructure constraints, saying this month that the situation with coal exports and congestion on the rail system had not The Kremlin plans to increase its energy supplies to Asia, China in particular, to offset a slump in exports to the West, which has imposed sanctions on Russia over the conflict in Ukraine
  • 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 stabilised, though it was improving. China's coal imports from Russia fell to 6.95 million tonnes last month, down from a peak of 8.54 million tonnes in August, according to China's customs data. According to Russian transport industry sources, Russia has increased coal supplies to China by railways by about a third this year, to 27.6 million tonnes in the January-August period. WINTER DEMAND But the increase in cargo traffic has led to slower deliveries. According to a Reuters analysis, it took about 12.6 days to deliver a coal cargo from fields in Siberia, such as Kuzbass, to Russia's Pacific ports in July-September, compared with 11.3 days on average in the same period last year. On average, delivery time across Russia has increased by a fifth, or 1.4 days, according to Reuters analysis of railway data, and timings may increase in the winter due to the railway congestion and port capacity limitations. "We would expect China's coal imports from Russia to decrease due to the cool weather, which will limit port loading, and the rail logistics cap will also help to put a lid on," the Chinese coal trader said. Of Russia's total of 223 million tonnes of coal exports last year, 49 million tonnes were delivered to Europe, according to the Energy Ministry. But Russia now expects its coal exports to decline in coming years due to the Western sanctions over the Ukraine conflict, and U.S., European Union and British embargos on Russian coal imports. According to Russian government expectations, coal exports may fall by 22% this year and by a further 31% in 2023. But at the same time, the rush of east-bound exports is getting bogged down. "A lot of railcars accumulate, congestion is formed at port stations ... Turnaround times for railcars are increasing significantly. Shippers are looking for empty railcars," a Russian transport industry source said. Russian Deputy Prime Minister Alexander Novak said Russia plans to increase the capacity of its infrastructure, including that of its eastern ports, where capacity is expected to increase by between 55 million tonnes and 211 million tonnes per year by 2031 from 150 million tonnes now.
  • 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 Tanzania LNG Project Could Add $7 Billion to GDP, Study Says  Final investment decision on $40 billion plant expected 2025  Standard Bank study also sees domestic gas expansion Tanzania Inks Deal With Shell, Equinor for $30-Billion LNG Terminal Tanzania has signed an LNG framework agreement to reboot a plan to build an LNG export terminal on the Indian Ocean., June 14, 2022, By Pat Davis Szymczak Shown here is the Kizomba-A production facility located at Angola’s deepwater Block 15 in which Equinor holds a 12% interest. ExxonMobil operates the block. The government of Tanzania has signed a liquefied natural gas (LNG) framework agreement with the UK’s Shell and Norway’s Equinor that is expected to kick-start construction of a $30- to $40- billion LNG export terminal to commercialize the country’s deepwater offshore gas reserves.
  • 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 The deal signed by the three parties on 11 June is foundational to the Tanzanian government’s issuance of a Host Government Agreement (HGA) later this year which will outline the project’s technical, commercial, and legal terms, according to Bloomberg. Front-end engineering and design (FEED and pre-FEED) will be completed within 3 years of HGA signing, with a final investment decision targeted in 2025. A 4- to 5-year construction period will follow with a first LNG drop planned by 2029–2030. The plant will be built at the East African nation’s southern coastal town of Lindi. It will be linked via a 100-km subsea pipeline to significant deepwater gas discoveries off Tanzania’s southern coast and have a 30-year life span, according to Equinor. If all goes as planned, 2025 will be significant also as the year Tanzania becomes a transit state for crude oil passing from Uganda’s Lake Albert development through the East African Crude Oil Pipeline to be exported through the Tanzanian port town of Tanga. Regulatory delays had stalled construction of the LNG project during Tanzania’s late President John Magufuli’s tenure in office, but his successor and current president, Samia Suluhu Hassan, reignited discussions shortly after taking office a year ago, Aljazeera reported. First talks regarding the plant were initiated in 2014. But now there is a new sense of urgency. Tanzania is among the gas-rich African nations that now see LNG exports as a way to transform their economies in light of today’s geopolitical realignment of energy trade and the opening of new market opportunities. Energy Minister January
  • 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 Makamba singled out Asia as Tanzania’s No. 1 target market given his country’s geographic position on the Indian Ocean, during the LNG signing ceremony. An artist’s rendering of Tanzania’s future LNG export and gas processing facility at the town of Linde and the deepwater upstream operation offshore that will provide the gas resource. Source: Equinor Developing New Gas Resources With regard to the development of Tanzania’s gas resource base, Shell currently operates Block 1 and Block 4 offshore where it has discovered 16 Tcf (453 Bcm) of recoverable natural gas. Shell holds a 60% interest in a production-sharing agreement (PSA) with the Tanzanian government that expires in 2024. Other partners include Pavilion Energy (20%) and Jakarta-based Medco Energy (20%). Pavilion is a subsidiary of Temasek, a global investment company based in Singapore that is focused on LNG shipping and trade in Asia and Europe. Medco has exploration and production operations in Indonesia, Mexico, Libya, and Tanzania as well as interests in power, gas trading and mining, according to the companies’ websites. Equinor operates Block 2, where it has drilled more than 15 exploration wells since 2011 resulting in nine discoveries at water depths of 2500 m with an estimated 20 Tcf of gas, according to Equinor’s website. The Norwegian major plans to develop the field using subsea wells located on the seabed to avoid having to build expensive facilities at sea level. Equinor entered the Tanzania market in 2007 after having signed a PSA for Block 2 with Tanzania Petroleum Development Corp. (TPDC). Equinor has a 65% operating interest in Block 2, while ExxonMobil holds a 35% working interest. TPDC has the right under the PSA to participate with a 10% interest. Overall, Tanzania estimates its recoverable offshore reserves at more than 57 Tcf (1,630 Bcm) which are reported to be the sixth-largest in Africa.
  • 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 Hassan as well as leaders of other gas-rich African countries have been floating the idea that the continent has the resources to join other global LNG producers in supplying Europe as the EU seeks to end its energy dependence on Russia. But, as several leaders among those representing the 11 nations present at the Gas Exporting Countries Forum held in Qatar on 22 February (2 days before Russian troops crossed into Ukraine) pointed out, significant investment would be needed to develop new gas infrastructure capable of replacing current Russian imports. Also, Europe would need to sign long-term contracts, Aljazeera noted in its coverage of the forum. Europe for the most part has moved away from long-term agreements over the past decade, preferring the flexibility of spot market purchases of fossil fuel, especially considering the push to replace carbon-intensive oil and gas with green, low- or no-carbon renewables. There is also political risk. While Tanzania may be stable, it had planned to join with neighboring Mozambique in a wider vision to create a greater East African LNG hub. But it is uncertain when Mozambique’s stalled LNG development might get back on track after an insurgency caused France’s TotalEnergies to declare force majeure on its multibillion dollar operation in April, 2021. Equinor’s deepwater offshore blocks that would contribute to the resource base for the Lindi LNG plant. Source: Equinor
  • 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 U.S: 2 LNG Plants Start Construction, In Gas-Starved World Bloomberg + NewBase Two giant projects that will allow the US to send more of its shale gas overseas are inching forward. Sempra recently issued a so-called limited notice to proceed to its contractor Bechtel, which clears the way for the early stages of construction to begin at its Port Arthur liquefied natural gas project in Texas. NextDecade Corp. issued a similar notice to Bechtel for its Rio Grande LNG project, also in the Lone Star State, a document seen by Bloomberg shows. They are small but symbolic -- and politically significant -- steps as Russia’s war in Ukraine has wiped out global gas supplies and made buyers in Europe and Asia more dependent than ever on the US for the fuel. A merican gas companies have been working for years on multibillion-dollar LNG terminals to help bring US shale supplies overseas, but so far only a handful of terminals have been able to reach a point at which they’re sending regular shipments abroad. Even with construction beginning, the Port Arthur and Rio Grande terminals are still likely four years away from their first exports.
  • 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 Sempra and NextDecade didn’t immediately respond to requests for comment. Bechtel, who is listed as a contractor for both of the companies’ projects in public documents, declined to comment. The notices were issued after both companies signed supply deals with overseas buyers, but they must still secure billions of dollars to finance the projects. Port Arthur LNG has so far sold nearly three-fourths of its production mostly to European buyers while Rio Grande LNG has locked in mostly Asian buyers for three-fourths of the production for its first two units at its complex. Sempra had previously said that it was looking at issuing a limited notice to proceed on or before Nov. 15. NextDecade had recently told regulators that it planned to begin the process of clearing the project site this month.
  • 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 U.S Decline in drilled but uncompleted wells limit crude oil growth U.S. Energy Information Administration, Drilling Productivity Report, October 2022 According to our Drilling Productivity Report (DPR), more wells were completed than were drilled in the United States from July 2020 through September 2022 (the latest month for which data are available). As a result, the number of drilled but uncompleted wells (DUCs) in the United States fell to 4,333 as of September 2022, the fewest since at least December 2013, when we started estimating the number of DUCs. Fewer DUCs, along with natural gas pipeline constraints, could limit future U.S. crude oil production growth. The two main stages in bringing a horizontally drilled, hydraulically fractured well online are drilling and completion. The drilling phase involves dispatching a drilling rig and crew, who then drill one or more wells on a pad site. A separate crew typically performs the completion phase by casing, cementing, perforating, and hydraulically fracturing the well so it can begin production. In general, the time between the drilling and completion stages is several months. Of the seven major oil- and natural gas- producing regions in the United States covered in our DPR, the Permian region accounts for around 60% of the crude oil total production.
  • 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 Because most natural gas from the Permian region is produced along with, and as a result of, crude oil production, limitations on the ability to ship natural gas out of the Permian region, known as takeaway capacity, could limit future crude oil production growth in the region. Crude oil producers can flare excess natural gas, but the Texas Railroad Commission regulates the amount of flaring allowed in the Texas portion of the Permian region. As natural gas takeaway capacity approaches its limits in the Permian region, the Commission may grant flaring permits, which could lessen oil production constraints. You can find more detailed analysis on this topic in our This Week in Petroleum article published on October 19, 2022.
  • 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 NewBase October 27 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices climb on strong U.S. crude exports, China fears linger Reuters + NewBase Oil prices rose on Thursday, extending a more than 3% rally in the previous session, boosted by record U.S. crude exports and a weaker U.S. dollar, though gains were capped in Asia due to lingering fears over slack demand in China. Brent crude futures gained 20 cents, or 0.26%, to $95.94 a barrel by 0516 GMT. U.S. West Texas Intermediate (WTI) crude climbed 23 cents, or 0.26%, to $88.14 a barrel. U.S. crude stocks rose 2.6 million barrels last week, according to weekly government data on Wednesday, with crude exports rising to 5.1 million barrels a day, the most ever. "Solid U.S. crude exports raised optimism over demand and prompted fresh buys, but concerns that China's muddled economic policies may continue under President Xi Jinping's growing power limited gains in Asia," said Hiroyuki Kikukawa, general manager of research at Nissan Securities. Global investors dumped Chinese assets early this week on fears that ideology may increasingly trump growth under China's most powerful leader since Mao Zedong. Oil price special coverage  U.S. exports surge to a record - EIA  World Bank projects 11% energy price decline in 2023  Dollar slips as bets mount for less hawkish Fed
  • 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 The World Bank on Wednesday said it expects energy prices to decline by 11% in 2023 after this year's 60% surge following Russia's invasion of Ukraine, although slower global growth and COVID restrictions in China could lead to a deeper fall. Moscow calls its actions in Ukraine "a special operation". Meanwhile, the dollar's weakness added support, as the greenback's strength of late has been a notable factor inhibiting oil market gains. The dollar retreated on Thursday as market expectations mounted that the U.S. Federal Reserve will tone down its aggressive stance on interest rate hikes. A weaker dollar makes greenback-denominated crude less expensive for other currency holders.
  • 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 European Gas Slumps to €100/MW ( 29$/mmbtu) on Mild Weather Natural gas in Europe dropped below €100 per megawatt-hour for the first time since June as unusually warm weather and ample supplies ease fears of shortages this winter. Benchmark futures finished 13% lower on Monday, and have slumped more than 70% from the peaks of August. High temperatures are expected to remain into next month, delaying the heating season and allowing storage sites to continue to be filled. The fuller-than-usual reserves would provide the buffer needed for when the weather inevitably turns cold. The improved conditions are easing some pressure on Europe’s policy makers, with the energy crisis helping push the economy to the brink of recession and inflation to the highest level in decades. Despite the recent dip, prices remain about three times higher than the five-year average for the time of the year, and cold snap could quickly renew supply concerns. “Europe is in a comfortable place concerning supplies now,” said Graham Freedman, an analyst at consultancy Wood Mackenzie. “The risks of blackouts and rationing are receding. But the real test will be when we have cold weather.” Dutch front-month gas futures, the European benchmark, settled at €99.17 a megawatt-hour, the lowest since June 14. The UK front-month gas contract fell 10%, while German power for next year also slid. There remains a good chance of a further decline in prompt gas prices due to mild weather and a glut of LNG arrivals, together with a slowdown in demand, said Ole Hansen, head of commodity strategy at Saxo Bank A/S. But longer-term contracts are still trading above the current level. “It highlights the continued risk to supply next year,” he said.
  • 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 European Union leaders have already agreed to back more measures to tackle the energy crisis, including supporting a cap on the price of gas in electricity generation and steps to avoid extreme spikes. The bloc’s energy ministers will meet this week to continue to hash out the details. Click here to read the daily Europe Energy Crunch blog There are also increased calls from member states for more action to protect the economy from high costs, even as the International Monetary Fund warned over the weekend of a “toxic mix” of rapid inflation and flagging growth in the region. Navigate Winter The high storage levels and imports to replace some of the lost Russian supplies will likely be enough to “navigate a normal winter,” Bloomberg Intelligence analyst Patricia Alvarez wrote in a note. “But curbing demand remains key in mitigating the impact of further Russian gas cuts.” Pipeline shipments from Moscow have plunged to just about 20% of what they used to be before the war in Ukraine and subsequent sanctions on Russia. The loss of those volumes would make it harder for Europe to replenish crucial reservoirs at the end of winter, potentially making next year difficult as well. But German Economy Minister Robert Habeck told Handelsblatt that the country would be in a much better position next winter than this one as more LNG flows in. Supplies from places including Norway and the Netherlands should make up about one-third of lost flows of the shut Nord Stream pipeline that carried Russian gas.
  • 17. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 NewBase Specual Coverage The Energy world –October -01 -2022 CLEAN ENERGY Eni launches the World Energy Review 2022 Source Eni ( https://www.eni.com/assets/documents/eng/topic/global-energy-scenarios/world-energy-review-2022.pdf) Eni’s 21st statistical review highlights the challenge that the energy industry is facing to improve universal access to affordable energy while, at the same time, accelerating the transition process towards a more sustainable energy mix Eni has released the 21st edition of its annual energy statistics report, available online at eni.com. The main challenge that the energy industry is facing is to improve universal access to affordable energy while, at the same time, accelerating the transition process towards a more sustainable energy mix. In 2021 the easing of Covid-19 restrictions and the ensuing economic recovery led to a rebound in energy demand, barely met by the available resources that were constrained by a legacy of limited investment in the Oil & Gas sector. The precarious balance resulted in higher commodity prices, highlighting the vulnerabilities in the energy system. This year the war in Ukraine has further emphasised the importance of energy security. By acknowledging the ongoing process of change, the World Energy Review, now in its 21st edition, this year is released in an interactive and modular version, and introduces the topic of critical minerals, as well. The transition from fossil fuels to low-carbon energy sources calls for the massive deployment of a wide range of clean energy technologies, many of which in turn rely on these critical minerals, with
  • 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 production taking place in a few countries. To ensure energy transition and energy security, this important aspect must be taken into consideration. Below are the key messages derived from the analysis of the world of oil, natural gas, the main renewable sources and critical minerals:  Oil prices were up by 70% in 2021 as demand recovered (+6.1% YoY) but remained below pre-pandemic levels. OPEC+ kept a “close eye” on production and market balance, delivering a gradual easing of cuts in the second half of the year while by the year-end bringing down global inventories to below the previous five-year average. Production capacity growth struggled to keep pace with the recovery in demand. World oil production increased by 1.4% YoY in 2021. There was no significant change in terms of crude quality. It was confirmed that the process of the lightening barrel halted, most notably due to broadly unchanged US production growth.
  • 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  Gas prices were up in all markets (~+400% in Europe, + 300% in Asia and + 90% in US), with a marked uptick in the second half of the year. The post-Covid rebound in energy consumption and the challenge of adjusting supply up in a timely fashion (also due to the unplanned stoppages of some liquefaction plants) were the main drivers underlying this upward trend. In 2021 global gas demand returned to growth (+3.9%) after the decline in 2020, notably in Russia (+11.8%) and Europe (+6.7%). Among the top -10 gas consuming countries, the U.S., albeit still at the first place, confirmed the negative trend of 2020 with a -1.6% fall, while China recorded an increase of 4.2%, retaining its position as the largest global importer. Global gas production also reported a 3.5% increase, after the slowdown in 2020, mainly accounted for by Russia (+9.8%) and Africa (+11.9%, especially Algeria and Egypt). In 2021 LNG saw its share on total traded gas at 39% (40% in 2020), downwards for the first time since 2015. However, in 2021 the LNG traded volumes grew to 488 Bcm, of which around 70% was imported into Asian countries. Over the year, the U.S. increased its LNG exports by 9%.  In 2021, solar and wind share on total power generation reached 10%, increasing by 1 percentage point with respect to the previous year. In 2021 solar power continued to dominate renewable capacity expansion with 138 GW of new installations, half of which was installed in China (53 GW) and US (20 GW). Global installed solar capacity reached 855 GW (+19% YoY), almost entirely photovoltaic. In 2021 wind also kept growing: global capacity reached 823 GW (+12.6% YoY). Compared with 2020 (+111 GW), new installations decreased to 92 GW, roughly half of which were installed in China (+47 GW).  All critical minerals included in this review (cobalt, copper, lithium, nickel and rare earths) saw an increase of production in 2021, reflecting an uptick in demand and prices, after the constraints of the health emergency in 2020.  World oil production increased by 1.4% YoY in 2021. There was no significant change in terms of crude quality. It was confirmed that the process of the lightening barrel halted, most notably due to broadly unchanged US production growth.  In 2021 global gas demand returned to growth (+3.9%) after the decline in 2020, notably in Russia (+11.8%) and Europe (+6.7%). Among the top-10 gas consuming countries, the U.S., albeit still at the first place, confirmed the negative trend of 2020 with a -1.6% fall, while China recorded an increase of 4.2%, retaining its position as the largest global importer.  Global gas production also reported a 3.5% increase, after the slowdown in 2020, mainly accounted for by Russia (+9.8%) and Africa (+11.9%, especially Algeria and Egypt).  In 2021 LNG saw its share on total traded gas at 39% (40% in 2020), downwards for the first time since 2015. However, in 2021 the LNG traded volumes grew to 488 Bcm, of which around 70% was imported into Asian countries. Over the year, the U.S. increased its LNG exports by 9%.  In 2021, solar and wind share on total power generation reached 10%, increasing by 1 percentage point with respect to the previous year.
  • 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  In 2021 solar power continued to dominate renewable capacity expansion with 138 GW of new installations, half of which was installed in China (53 GW) and US (20 GW). Global installed solar capacity reached 855 GW (+19% YoY), almost entirely photovoltaic.  In 2021 wind also kept growing: global capacity reached 823 GW (+12.6% YoY). Compared with 2020 (+111 GW), new installations decreased to 92 GW, roughly half of which were installed in China (+47 GW).  All critical minerals included in this review (cobalt, copper, lithium, nickel and rare earths) saw an increase of production in 2021, reflecting an uptick in demand and prices, after the constraints of the health emergency in 2020.
  • 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
  • 22. 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 22
  • 23. 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 23 NewBase Energy News October 2022 - Issue No. 1561 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.
  • 24. 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 24
  • 25. 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 25
  • 26. 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 26
  • 27. 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 27