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NewBase Energy News 30 November 2023 No. 1677 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Masdar and Emirates Steel Arkan to decarbonize
the UAE’s hard-to-abate steel sector
Source: Masdar
Pioneering green steel demonstration project could boost trade and accelerate decarbonization in
sector currently responsible for up to 8 percent of global carbon emissions
Ahead of the UAE hosting UN climate change conference, COP28, the pilot project could cut CO2
in steel-making process by 95 percent and turbocharge UAE’s journey to becoming green steel
production hub.
Abu Dhabi Future Energy Company PJSC – Masdar, one of the world’s leading renewable energy
companies, has partnered with Emirates Steel Arkan, one of the largest publicly traded steel and
building materials manufacturers in the region, to develop an innovative green hydrogen project to
decarbonize the hard-to-abate steel sector in the UAE.
ww.linkedin.com/in/khaled-al-awadi-80201019/
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The pilot project is the first-of-its-kind in the Middle East and North African region. Located in the
Emirates Steel Arkan production facilities at the Industrial City of Abu Dhabi, the project is currently
in the installation phase.
Electrolyzers have already been delivered to the site to help produce ‘green steel’, a premium
product sought after by global manufacturers eager to meet their net-zero goals. Expected to be
commissioned in early 2024, the project will demonstrate the use of green hydrogen - instead of
natural gas - to extract iron from iron ore, a key step in steelmaking.
The rising global demand for green steel, presents huge growth potential for the UAE’s steel industry
as the country aspires to be among the frontrunners to decarbonize the global steel value chain.
The project shows how clean energy and heavy industry partners in the UAE are taking urgent
action to accelerate decarbonization.
It is also a significant step in enabling the UAE’s strategy of making the country one of the world’s
largest hydrogen producers by 2031. Steel manufacturing contributes between 7 and 8 percent of
worldwide carbon emissions.
Decarbonizing this industry holds the key to propelling the world towards a net-zero future. With the
UN climate change conference COP28 set to begin in the UAE at the end of this month, innovative
projects that halt emissions without stifling progress will be a focus of international attention.
Active in over 40 countries and with a total electricity generation capacity of over 20GW, Masdar is
targeting 100GW by 2030. Masdar will have a strong presence during COP28 in Expo City, Dubai,
where it plans to showcase innovative projects including this pioneering partnership with Emirates
Steel Arkan.
Mohamed Jameel Al Ramahi, CEO of Masdar, said:
'Masdar is very pleased to be partnering with Emirates Steel Arkan on this innovative project to
decarbonize this vital sector. Steel is an essential commodity driving economic growth and creating
jobs and this project presents huge potential for reducing emissions while increasing trade.
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Masdar has been pioneering renewable energy projects around the world for more than 17 years.
The UAE will once again demonstrate its climate leadership by hosting COP28 in a few days’ time.
As the country’s clean energy powerhouse, Masdar will continue to harness the power of innovation
and partnership to create a cleaner, greener tomorrow.'
Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, said:
'We strongly believe in the power of collaboration to achieve our ambitious decarbonization roadmap
and are delighted to partner with Masdar to realize this goal, known for its successful track record
in developing and implementing sustainable energy solutions in the UAE and globally.
As the first steel company in the MENA region, and among the pioneers worldwide to adopt green
hydrogen for sustainable steel production, this project represents a major milestone in our
commitment to realize our company’s sustainability objectives.
'By embracing cutting-edge technologies and fostering strategic collaborations, we are
spearheading the industry's shift towards a more sustainable future, in harmony with the UAE's
strategic commitment to achieving Net Zero by 2050'.
Emirates Steel Arkan’s carbon intensity is independently certified to be less than half of the global
steel industry average, and in 2022, it made significant strides in energy efficiency, achieving a
double-digit reduction in energy intensity and a remarkable reduction in emissions and emissions
intensity. This was achieved by using 80% of clean electricity, carbon capture, and scrap metal
utilization. Emirates Steel Arkan is committed to reducing 40% in carbon emissions by 2030, with
primary aim to achieve Net-Zero by 2050.
Masdar is dedicated to advancing the decarbonization of hard-to-abate sectors to secure global net-
zero goals. For the past year, Masdar has been leading the ‘decarbonizing industry’ working group
under the Sustainable Markets Initiative launched by His Majesty King Charles III of Britain.
Established in 2006, Masdar is active in more than 40 countries with a total electricity generation
capacity of more than 20GW. It has invested, or committed to invest, in worldwide projects with a
combined value of more than US$30 billion with ambitious growth plans to reach 100GW and 1
million tonnes of green hydrogen by 2030.
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UAE Masdar completes region’s first net-zero energy
commercial building Staff Writer, WAM (Emirates News Agency)
Masdar City, a sustainable urban community and a business and technology hub in Abu Dhabi, has
just completed the region’s first net-zero energy commercial building, called NZ1.
The building’s simple design demonstrates that net-zero energy is possible for almost any
developer, setting a new benchmark for architects and city planners worldwide.
“NZ1 is an incredible milestone for Masdar City and a fitting precursor to COP28,” said Ahmed
Baghoum, Masdar City’s CEO. “Our vision has always been to accelerate the UAE’s ambitious
journey to net-zero, and we’re closer now than ever. NZ1 is just the beginning. Through our
distinctive approach to sustainability that prioritises community needs, financial viability, and
environmental protection, we demonstrate that sustainability is not a luxury for the elite—it’s for
everyone.”
“Masdar City has been pushing the boundaries of sustainable development for more than 15 years,”
said Lutz Wilgen, Masdar City’s head of design. “NZ1 is our most energy-efficient building yet,
representing the best of what we have learned so far.
Its aesthetic design is also one of the simplest in the city, showing that any developer can create a
green building with the right tools and expertise. We’re already working with other professionals
who are hoping to replicate what we have done.”
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NZ1 is designed to consume 53 percent less energy than an equivalent conventional building. On-
site PV (solar) panels will generate 101 percent of the building’s annual energy needs, making it
net-zero energy. Any excess energy produced will be fed into the Abu Dhabi electric grid.
Masdar City designed NZ1 focusing on passive design, an architectural technique that works with
the local environment and a building’s physical components to minimise the need for electric heating
or cooling.
For example, NZ1 has a low window-to-façade ratio and uses window angling and shading to
minimise direct sun while maximising natural light. The building envelope is airtight and uses top-
notch insulation to keep heat out and cooled air in.
The award-winning building was constructed with locally sourced, sustainable materials wherever
possible, and approximately 90 percent of construction waste was diverted from landfills. The
building also uses low-flow water fixtures and appliances, and the landscaping requires minimal
water. The building’s total estimated carbon offset is calculated to be 550 kg CO2 per m2.
NZ1, only the first of several net-zero energy projects underway at Masdar City, is on track to be
rated LEED Zero Energy and LEED Platinum, the highest international green building certifications
awarded by the U.S. Green Building Council. It is also on track to be rated Estidama 4-Pearl, Abu
Dhabi’s local green building rating system, and WELL Gold, which emphasises the well-being of
building occupants.
The lobby will be outfitted with a plaque that shows water and energy use as well as waste
management and building experience data in real-time to help tenants adopt more sustainable
practices. Data will be fed to a new digital control centre in Masdar City that will monitor building
performance across the city.
NZ1 won the MENA Green Building Awards’ Net-Zero Building Project of the Year in early
November 2023. It has already been pre-let to a tenant who will strengthen Masdar City’s
sustainable tech ecosystem.
Masdar City has two other net-zero energy projects under construction: Masdar City Square’s HQ
building, which will be complete in 2024, and CO-LAB, a shared working and living space within a
development called The Link, that will be completed in 2025.
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UAE:Dubai's Hassyan energy plant's final unit Commercial starts
The National - Fareed Rahman
The final unit of Hassyan energy project in Dubai has started commercial operations after
stakeholder Acwa Power received the go-ahead from the Dubai Electricity and Water Authority.
The total power capacity of the Hassyan project, which was converted to run only on natural gas
instead of clean coal last year, is 2,400 megawatts, Acwa Power said in a statement on Sunday to
the Tadawul exchange, where its shares are traded.
“With this achievement, the last 600MW power unit joins the three previous 600MW power units
that entered into commercial operation in earlier stages,” Saudi Arabia’s power utility said.
Acwa Power owns a 26.95 stake in the project. The financial impact of achieving the full capacity
will be reflected from the fourth quarter onwards, it added.
The project was initially designed and built-for-purpose as a dual-fuel plant with the ability to operate
full-time on both natural gas and clean coal. It now relies only on natural gas as the UAE steps up
efforts to reduce emissions and achieve net zero by 2050.
The $3.2 billion project aims to avoid about 30 million tonnes of carbon dioxide emissions by 2030,
according to Acwa Power's website.
The project “supports the Dubai Clean Energy Strategy 2050 and the Net Zero Carbon Emissions
Strategy 2050 to provide 100 per cent of Dubai’s total power capacity from clean energy sources
by 2050”, Saeed Al Tayer, managing director and chief executive of Dewa, said previously.
“The move also supports our efforts to diversify energy sources and secure energy supplies.”
The latest announcement comes as the UAE continues to boost investments in clean energy.
In July, the Emirates approved an updated version of the UAE Energy Strategy 2050 in July.
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As part of the plan, the country plans to invest up to Dh200 billion ($54 billion) by 2030 to ensure
energy demand is met while sustaining economic growth.
The UAE also aims to produce 1.4 million tonnes of hydrogen annually by 2031 and 15 million
tonnes every year by 2050.
Earlier this month, Abu Dhabi inaugurated the two-gigawatt Al Dhafra solar power plant, one of the
world's largest solar projects, as it moves ahead with plans to expand its renewable energy capacity
and achieve its net-zero targets.
Dubai is also constructing the five-gigawatt Mohammed bin Rashid Al Maktoum Solar Park to
increase its clean energy capacity.
The Hassyan power complex also includes a water desalination project with a production capacity
of 120 million imperial gallons a day using reverse osmosis technology.
Dewa has picked Acwa Power as the preferred bidder to develop and operate the first phase of
the reverse osmosis plant at Hassyan, it said in August.
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Russia Expects Deal on Turkey Gas Hub Soon, Deputy Premier Says
Bloomberg News
Russia expects to reach an agreement soon on a planned natural gas hub in Turkey, Deputy Prime
Minister Alexander Novak said.
A Turkish delegation is due to hold consultations with Russian gas producer Gazprom PJSC in St.
Petersburg, Novak said on Saturday during a visit to Ankara.
“I am sure we will reach agreements in the near future on the
practical implementation of this project,” Novak said in
televised remarks.
Russia has been forging closer energy, political and economic
ties with Turkey after relations with the European Union
deteriorated sharply following its war in Ukraine. Last year,
President Vladimir Putin laid out plans to establish a gas-
trading hub in Turkey, including the possibility of laying more
undersea natural gas pipelines across the Black Sea. The new
conduits could become Russia’s main gas-export route for Europe, Putin said at the time.
The setting up of an electronic gas-trading platform in Turkey could be the first step toward the
creation of a gas hub there, Putin said in October. However, the timing of the project has been
unclear with him initially suggesting it was a matter of months and Turkey’s Energy Minister
Alparslan Bayraktar saying in recent weeks that it would likely happen in 2024.
Talks had stalled after deadly earthquakes hit Turkey in February, followed by an election in the
country in May.
Ankara has been a relatively close ally of Moscow as many Western countries have shunned
Russian trade following the invasion of Ukraine. In the energy industry, the two countries are already
cooperating on construction of the Akkuyu nuclear power station in southern Turkey, with a budget
of some $20 billion.
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Russian Gas Exports to China Reach New High as Demand Ups
Bloomberg News, Bloomberg News
Russia’s Gazprom PJSC said its natural gas deliveries to China have hit a new historic high amid
rising demand.
Chinese National Petroleum Corp. requested volumes via the Power of Siberia 1 route that once
again exceeded Gazprom’s contractual obligations on Nov. 23, the Russian producer said in a
statement cited by state news service Tass on Saturday.
“Gazprom supplied all the requested volumes and set a new record for daily gas supplies to China,”
it said. Gazprom and CNPC last month signed an addendum to their contract on gas supplies via
the Power of Siberia 1 that provided for additional deliveries through 2023, providing no further
details.
Russia aims to export 30 billion cubic meters of gas to China next year and eventually raise the
flows to 38 bcm per year. Separate shipments via a future Far Eastern route are set to reach another
10 bcm per year. Gazprom is also in talks to supply as much as 50 bcm per year via the future
Power of Siberia 2 link but the contract hasn’t been signed.
Gazprom says it sees its pipeline-gas flows to China matching its historical shipments to Western
Europe, which have slumped as European countries moved to diversify their energy imports after
Russia invaded Ukraine in 2022. The Russian company sold approximately 120 bcm of gas to
Western Europe in 2020.
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India scrambles to add coal-fired power capacity, avoid outages
Sarita Chaganti Singh, Reuters News
India aims to add 17 gigawatts of coal-based power generation capacity in the next 16 months, its
fastest pace in recent years, to avert outages due to a record rise in power demand, according to
government officials and documents.
The expansion drive comes ahead of this week's U.N. climate summit COP28, where France and
the United States are expected to clamp down on financing for coal plants, a move that India,
dependent on coal for 73% of power generation, plans to oppose.
The world's fastest growing major economy has added an annual average of 5 gigawatts of coal-
based electricity generation capacity over the last five years, but it is also ramping up renewable
energy.
Yet it will fall short of satisfying power demand if it does not expand the number of its coal plants,
said two government officials, who did not want to be named as they are not authorised to speak to
media.
In the next four months, India plans to add nearly 3 gigawatts of coal-fired generation, while the
following fiscal year, starting from April 1, 2025, will see it add 14 gigawatts, or its highest level in
eight years, according to internal government documents seen by Reuters.
The power ministry did not immediately respond to queries from Reuters.
To ensure completion of projects, New Delhi has begun a review of 38 coal generation plants whose
construction has been held up for years, moving to resolve issues over equipment and land
acquisition delays, the two officials said.
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The government expects 28 of these projects to become operational in the next 18 months, it told
power producers in a presentation at a meeting on Nov. 21.
Such projects include state-run power company NTPC's 660-megawatt unit in the eastern state of
Bihar which has been delayed for 13 years, and two in the neighbouring state of Jharkhand held up
for five years.
At the meeting, Power Minister R. K. Singh told public and private power generators that India would
"have to add coal-based thermal capacity," to meet requirements growing at an unprecedented rate,
said the two officials, who also attended.
He also urged private companies to set up fresh coal-based power generation capacity to meet
night-time demand and assured them of financial assistance. Industry officials said such a call was
being made for the first time in a decade since most private investments in the coal-fired power
sector had stopped around the year 2012, partly because of India's green energy push.
While the coal expansion drive aims to meet an expected rise of 10% in demand during peak hours
in fiscal year 2024-25, India will still meet a national commitment of half of fuel generation capacity
from non-fossil fuels by 2030, the two officials said.
Since adding 22 gigawatts of capacity in the fiscal year 2015/16, India cut back on plans to
expanding coal-fired plants as the government opted for alternate energy capacity, officials have
said.
Now India wants coal-fired plants sufficient to meet power demand of 384 gigawatts by the fiscal
year 2031/32, revised up 5% from an earlier projection of 366 gigawatts, the government documents
showed.
The government consequently revised up its estimate of coal-based power requirement by 9%, to
283 gigawatts. "We have now modelled a stressed scenario factoring in a below-normal monsoon
and a corresponding demand spike, such as we experienced in Aug-Oct this year," one of the
government officials said.
That stress accounts for delays in the commissioning of 86 gigawatts of non-fossil capacity by fiscal
2031/32. In the lead-up to Thursday's climate summit in Dubai, the European Union, U.S. and UAE
have rallied support for a deal to triple global renewable energy installed by 2030.
More than 100 countries have backed this deal, officials told Reuters, but countries including China
and India are not yet fully on board.
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NewBase November 30 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices Jurky on weak China demand & OPEC+ meetings Cutts
NewBase + Reuters
Oil prices fell in early Asian trade on Thursday on weaker-than-expected Chinese manufacturing
data, but investors maintained caution ahead of an OPEC+ meeting where production cuts are
expected.
Brent crude futures fell 28 cents, or 0.3%, to $82.90 a barrel by 0024 GMT, while U.S. West Texas
Intermediate (WTI) crude futures fell 24 cents, or 0.3%, to $77.68 a barrel.
China's manufacturing activity contracted for a second straight month in November and at a quicker
pace than expected, an official factory survey showed on Thursday, suggesting more policy support
measures are needed to help shore up economic growth in the world's largest oil importer.
The official purchasing managers' index (PMI) fell to 49.4 in November from 49.5 in October, staying
below the 50-point level demarcating contraction from expansion. Analysts polled by Reuters had
expected a reading of 49.7.
Oil price special
coverage
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The U.S. Energy Information Administration on Wednesday reported a surprise build in U.S. crude
oil and distillate fuel stocks last week, indicating weak demand. Gasoline stocks also rose by more
than expected, the data showed.
Oil markets in the previous session found support from hopes of some form of a price-supportive
resolution from the OPEC+ group, which includes the Organization of Petroleum Exporting
Countries and its allies such as Russia.
Members of OPEC+ are due to hold a policy meeting on Thursday. Talks ahead of the meeting
were focusing on additional production cuts, although details were yet to be agreed, sources close
to the group told Reuters.
Another media report on Wednesday said that the cut could be as much as 1 million barrels a day.
Oil prices gain near 2% on expectations of deeper OPEC+ cuts
Oil prices rose more than $1 a barrel on Wednesday as investors focused their attention on
expectations of fresh supply cuts from OPEC+ and looked past a jump in U.S. crude, gasoline and
distillate stockpiles.
Oil markets have found support from hopes of some form of a price-supportive resolution from the
OPEC+ group, Kpler analyst Matt Smith said.
Members of OPEC+, which includes the Organization of Petroleum Exporting Countries and its
allies such as Russia, are due to hold a policy meeting on Thursday. Talks ahead of the meeting
were focusing on additional cuts, although details were yet to be agreed, sources close to the group
told Reuters.
Another media report earlier said that the cut could be of as much as 1 million barrels a day.
"All eyes are on the Nov. 30 OPEC meeting, and the fine details will matter," CFRA analyst Stewart
Glickman said.
The Energy Information Administration reported a surprise build in U.S. crude oil and distillate fuel
stocks last week, indicating weak demand. Gasoline stocks also rose by more than expected, the
data showed.
However, the impact of those builds was neutralised by large draws in other refined products, like
residual fuel oil, UBS analyst Giovanni Staunovo said.
A severe storm in the Black Sea region has disrupted up to 2 million bpd of oil exports from
Kazakhstan and Russia, according to state officials and port agent data, raising the prospect of
short-term supply tightness.
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NewBase Specual Coverage
The Energy world –November 30 -2023
ENERGY
Why OPEC+ members find it hard to agree oil production quotas
Reuters + NewBase
OPEC+ has postponed its November meeting by a few days and sources within the group say
production targets were one of the key flashpoints of disagreement.
WHY ARE QUOTA DISCUSSIONS SO FRAUGHT?
OPEC+ negotiations over production quotas have often been difficult in the past.
Oil production tends to vary month by month, making it difficult to fix on a permanent production
target.
So the higher a production reference level a country can negotiate, the less it actually has to cut to
comply with its targets.
WHAT DID OPEC+ AGREE AT ITS LAST MEETING?
At its previous meeting in June 2023, after long negotiations, OPEC+ agreed a complex deal that
revised production targets for several members.
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The June changes allowed the United Arab Emirates to add 200,000 barrels per day (bpd) to a new
target of 3.219 million bpd for 2024.
The country plans to raise its oil production capacity to 5 million bpd in 2027 from about 4 million
currently and has repeatedly complained it wasn't able to fully utilise its capacity while other
members underproduced.
African producers Nigeria, Angola, however, were among several countries, given lower targets
after years of failing to meet the previous ones.
The two countries produced below targets because of underinvestment and security issues.
Angola had its target cut in June to 1.28 million bpd from the previous 1.45 million bpd, Nigeria saw
its target reduced to 1.38 million from the previous 1.74 million.
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WHAT WERE THE CAVEATS IN THE AGREEMENT?
OPEC's has tasked three independent consultancies- IHS, Rystad Energy and Wood Mackenzie -
to verify production figures for those countries for the rest of 2023 and report them at the next
meeting at the end of this year.
Angola will only be allowed to keep its new reference output level if the three sources can verify it,
OPEC has said. The required production level for Congo and Nigeria may be updated to equal the
average output they can achieve in 2024, as assessed by the three independent sources, OPEC
has said.
Nigeria will be allowed a higher production target for 2024 of 1.58 million bpd, if the three
consultancies can confirm its capacity to produce at this level.
"With a new president in place and mounting economic concerns, we think Nigeria will make an
assertive case for higher 2024 production numbers in the coming days," RBC Capital Markets
analyst Helima Croft said in a note on Thursday.
"However, it may be more difficult to bridge the gap with Angola which has been a moodier member
of the producer group since it joined in 2007," she added.
WHAT ELSE DID THE JUNE 2023 AGREEMENT STIPULATE?
By the end of June 2024, the three independent sources would also conduct verification of the
capacity plans for all OPEC+ members to determine reference production levels for 2025, the June
agreement stated.
The OPEC+ group, comprising of the Organization of the Petroleum Exporting Countries and allies
including Russia, surprised the market on Wednesday by delaying its Nov. 26 to Nov. 30 after
producers struggled to reach a consensus on output levels.
OPEC+ has moved closer to a compromise with African oil producers on 2024 output levels, three
OPEC+ sources have told Reuters. "The most likely outcome now appears to be an extension of
existing cuts," said IG analyst Tony Sycamore.
The surprise delay had initially brought Brent futures down as much as 4% and WTI by as much as
5% in intraday trading on Wednesday. Trading remained subdued during Thursday's U.S. holiday.
"While I wouldn't be entirely surprised to see leaks or comments over the weekend that still have an
impact on the oil price on the open next week, the actual meeting now occurring Thursday could
put traders' minds somewhat at ease," said Craig Erlam, senior market analyst at OANDA.
A bright spot came in the form of the near-term economic outlook in China. Recent Chinese data
and fresh aid to the indebted property sector can be "positive for the oil market's near-term trend",
said CMC Markets analyst Tina Teng.
Yet those gains could be capped by higher U.S. crude stockpiles and poor refining margins, leading
to weaker demand from U.S. refineries, analysts said. "Fundamentals developments have been
bearish with rising U.S. oil inventories," ANZ analysts said in a note.
Still, China's longer-term outlook remains lukewarm. Analysts say oil demand growth could weaken
to about 4% in the first half of 2024 as the property sector crunch weighs on diesel use.
Non-OPEC production growth is set to remain strong, with Brazilian state energy
company Petrobras planning to invest $102 billion over the next five years to boost output to 3.2
million barrels of oil equivalent per day (boepd) by 2028, up from 2.8 million boepd in 2024.
Copyright © 2023 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
World oil supply
Preliminary data indicates that global liquids production in October increased by 0.3 mb/d to average
101.6 mb/d compared with the previous month. Non-OPEC liquids production (including OPEC
NGLs) is estimated to have increased by 0.2 mb/d, m-o-m, in October 2023 to average 73.7 mb/d.
This is higher by 1.5 mb/d, y-o-y.
Preliminary estimated production
increases in October were mainly
driven by Norway and OECD
Americas, and were partially offset
by drops in Russia and Brazil. The
share of OPEC crude oil in total
global production in October,
remained unchanged to stand at
27.5% compared with the previous
month.
Estimates are based on preliminary
data for non-OPEC supply, OPEC
NGLs and non conventional oil,
while assessments for OPEC crude
production are based on secondary
sources
Copyright © 2023 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
NewBase Energy News 30-November - Issue No. 1677 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 © 2023 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
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 21

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NewBase 30 November 2023 Energy News issue - 1677 by Khaled Al Awad_compressed.pdf

  • 1. Copyright © 2023 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 30 November 2023 No. 1677 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: Masdar and Emirates Steel Arkan to decarbonize the UAE’s hard-to-abate steel sector Source: Masdar Pioneering green steel demonstration project could boost trade and accelerate decarbonization in sector currently responsible for up to 8 percent of global carbon emissions Ahead of the UAE hosting UN climate change conference, COP28, the pilot project could cut CO2 in steel-making process by 95 percent and turbocharge UAE’s journey to becoming green steel production hub. Abu Dhabi Future Energy Company PJSC – Masdar, one of the world’s leading renewable energy companies, has partnered with Emirates Steel Arkan, one of the largest publicly traded steel and building materials manufacturers in the region, to develop an innovative green hydrogen project to decarbonize the hard-to-abate steel sector in the UAE. ww.linkedin.com/in/khaled-al-awadi-80201019/
  • 2. Copyright © 2023 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 The pilot project is the first-of-its-kind in the Middle East and North African region. Located in the Emirates Steel Arkan production facilities at the Industrial City of Abu Dhabi, the project is currently in the installation phase. Electrolyzers have already been delivered to the site to help produce ‘green steel’, a premium product sought after by global manufacturers eager to meet their net-zero goals. Expected to be commissioned in early 2024, the project will demonstrate the use of green hydrogen - instead of natural gas - to extract iron from iron ore, a key step in steelmaking. The rising global demand for green steel, presents huge growth potential for the UAE’s steel industry as the country aspires to be among the frontrunners to decarbonize the global steel value chain. The project shows how clean energy and heavy industry partners in the UAE are taking urgent action to accelerate decarbonization. It is also a significant step in enabling the UAE’s strategy of making the country one of the world’s largest hydrogen producers by 2031. Steel manufacturing contributes between 7 and 8 percent of worldwide carbon emissions. Decarbonizing this industry holds the key to propelling the world towards a net-zero future. With the UN climate change conference COP28 set to begin in the UAE at the end of this month, innovative projects that halt emissions without stifling progress will be a focus of international attention. Active in over 40 countries and with a total electricity generation capacity of over 20GW, Masdar is targeting 100GW by 2030. Masdar will have a strong presence during COP28 in Expo City, Dubai, where it plans to showcase innovative projects including this pioneering partnership with Emirates Steel Arkan. Mohamed Jameel Al Ramahi, CEO of Masdar, said: 'Masdar is very pleased to be partnering with Emirates Steel Arkan on this innovative project to decarbonize this vital sector. Steel is an essential commodity driving economic growth and creating jobs and this project presents huge potential for reducing emissions while increasing trade.
  • 3. Copyright © 2023 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 Masdar has been pioneering renewable energy projects around the world for more than 17 years. The UAE will once again demonstrate its climate leadership by hosting COP28 in a few days’ time. As the country’s clean energy powerhouse, Masdar will continue to harness the power of innovation and partnership to create a cleaner, greener tomorrow.' Eng. Saeed Ghumran Al Remeithi, Group CEO of Emirates Steel Arkan, said: 'We strongly believe in the power of collaboration to achieve our ambitious decarbonization roadmap and are delighted to partner with Masdar to realize this goal, known for its successful track record in developing and implementing sustainable energy solutions in the UAE and globally. As the first steel company in the MENA region, and among the pioneers worldwide to adopt green hydrogen for sustainable steel production, this project represents a major milestone in our commitment to realize our company’s sustainability objectives. 'By embracing cutting-edge technologies and fostering strategic collaborations, we are spearheading the industry's shift towards a more sustainable future, in harmony with the UAE's strategic commitment to achieving Net Zero by 2050'. Emirates Steel Arkan’s carbon intensity is independently certified to be less than half of the global steel industry average, and in 2022, it made significant strides in energy efficiency, achieving a double-digit reduction in energy intensity and a remarkable reduction in emissions and emissions intensity. This was achieved by using 80% of clean electricity, carbon capture, and scrap metal utilization. Emirates Steel Arkan is committed to reducing 40% in carbon emissions by 2030, with primary aim to achieve Net-Zero by 2050. Masdar is dedicated to advancing the decarbonization of hard-to-abate sectors to secure global net- zero goals. For the past year, Masdar has been leading the ‘decarbonizing industry’ working group under the Sustainable Markets Initiative launched by His Majesty King Charles III of Britain. Established in 2006, Masdar is active in more than 40 countries with a total electricity generation capacity of more than 20GW. It has invested, or committed to invest, in worldwide projects with a combined value of more than US$30 billion with ambitious growth plans to reach 100GW and 1 million tonnes of green hydrogen by 2030.
  • 4. Copyright © 2023 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 UAE Masdar completes region’s first net-zero energy commercial building Staff Writer, WAM (Emirates News Agency) Masdar City, a sustainable urban community and a business and technology hub in Abu Dhabi, has just completed the region’s first net-zero energy commercial building, called NZ1. The building’s simple design demonstrates that net-zero energy is possible for almost any developer, setting a new benchmark for architects and city planners worldwide. “NZ1 is an incredible milestone for Masdar City and a fitting precursor to COP28,” said Ahmed Baghoum, Masdar City’s CEO. “Our vision has always been to accelerate the UAE’s ambitious journey to net-zero, and we’re closer now than ever. NZ1 is just the beginning. Through our distinctive approach to sustainability that prioritises community needs, financial viability, and environmental protection, we demonstrate that sustainability is not a luxury for the elite—it’s for everyone.” “Masdar City has been pushing the boundaries of sustainable development for more than 15 years,” said Lutz Wilgen, Masdar City’s head of design. “NZ1 is our most energy-efficient building yet, representing the best of what we have learned so far. Its aesthetic design is also one of the simplest in the city, showing that any developer can create a green building with the right tools and expertise. We’re already working with other professionals who are hoping to replicate what we have done.”
  • 5. Copyright © 2023 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 NZ1 is designed to consume 53 percent less energy than an equivalent conventional building. On- site PV (solar) panels will generate 101 percent of the building’s annual energy needs, making it net-zero energy. Any excess energy produced will be fed into the Abu Dhabi electric grid. Masdar City designed NZ1 focusing on passive design, an architectural technique that works with the local environment and a building’s physical components to minimise the need for electric heating or cooling. For example, NZ1 has a low window-to-façade ratio and uses window angling and shading to minimise direct sun while maximising natural light. The building envelope is airtight and uses top- notch insulation to keep heat out and cooled air in. The award-winning building was constructed with locally sourced, sustainable materials wherever possible, and approximately 90 percent of construction waste was diverted from landfills. The building also uses low-flow water fixtures and appliances, and the landscaping requires minimal water. The building’s total estimated carbon offset is calculated to be 550 kg CO2 per m2. NZ1, only the first of several net-zero energy projects underway at Masdar City, is on track to be rated LEED Zero Energy and LEED Platinum, the highest international green building certifications awarded by the U.S. Green Building Council. It is also on track to be rated Estidama 4-Pearl, Abu Dhabi’s local green building rating system, and WELL Gold, which emphasises the well-being of building occupants. The lobby will be outfitted with a plaque that shows water and energy use as well as waste management and building experience data in real-time to help tenants adopt more sustainable practices. Data will be fed to a new digital control centre in Masdar City that will monitor building performance across the city. NZ1 won the MENA Green Building Awards’ Net-Zero Building Project of the Year in early November 2023. It has already been pre-let to a tenant who will strengthen Masdar City’s sustainable tech ecosystem. Masdar City has two other net-zero energy projects under construction: Masdar City Square’s HQ building, which will be complete in 2024, and CO-LAB, a shared working and living space within a development called The Link, that will be completed in 2025.
  • 6. Copyright © 2023 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 UAE:Dubai's Hassyan energy plant's final unit Commercial starts The National - Fareed Rahman The final unit of Hassyan energy project in Dubai has started commercial operations after stakeholder Acwa Power received the go-ahead from the Dubai Electricity and Water Authority. The total power capacity of the Hassyan project, which was converted to run only on natural gas instead of clean coal last year, is 2,400 megawatts, Acwa Power said in a statement on Sunday to the Tadawul exchange, where its shares are traded. “With this achievement, the last 600MW power unit joins the three previous 600MW power units that entered into commercial operation in earlier stages,” Saudi Arabia’s power utility said. Acwa Power owns a 26.95 stake in the project. The financial impact of achieving the full capacity will be reflected from the fourth quarter onwards, it added. The project was initially designed and built-for-purpose as a dual-fuel plant with the ability to operate full-time on both natural gas and clean coal. It now relies only on natural gas as the UAE steps up efforts to reduce emissions and achieve net zero by 2050. The $3.2 billion project aims to avoid about 30 million tonnes of carbon dioxide emissions by 2030, according to Acwa Power's website. The project “supports the Dubai Clean Energy Strategy 2050 and the Net Zero Carbon Emissions Strategy 2050 to provide 100 per cent of Dubai’s total power capacity from clean energy sources by 2050”, Saeed Al Tayer, managing director and chief executive of Dewa, said previously. “The move also supports our efforts to diversify energy sources and secure energy supplies.” The latest announcement comes as the UAE continues to boost investments in clean energy. In July, the Emirates approved an updated version of the UAE Energy Strategy 2050 in July.
  • 7. Copyright © 2023 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 As part of the plan, the country plans to invest up to Dh200 billion ($54 billion) by 2030 to ensure energy demand is met while sustaining economic growth. The UAE also aims to produce 1.4 million tonnes of hydrogen annually by 2031 and 15 million tonnes every year by 2050. Earlier this month, Abu Dhabi inaugurated the two-gigawatt Al Dhafra solar power plant, one of the world's largest solar projects, as it moves ahead with plans to expand its renewable energy capacity and achieve its net-zero targets. Dubai is also constructing the five-gigawatt Mohammed bin Rashid Al Maktoum Solar Park to increase its clean energy capacity. The Hassyan power complex also includes a water desalination project with a production capacity of 120 million imperial gallons a day using reverse osmosis technology. Dewa has picked Acwa Power as the preferred bidder to develop and operate the first phase of the reverse osmosis plant at Hassyan, it said in August.
  • 8. Copyright © 2023 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 Russia Expects Deal on Turkey Gas Hub Soon, Deputy Premier Says Bloomberg News Russia expects to reach an agreement soon on a planned natural gas hub in Turkey, Deputy Prime Minister Alexander Novak said. A Turkish delegation is due to hold consultations with Russian gas producer Gazprom PJSC in St. Petersburg, Novak said on Saturday during a visit to Ankara. “I am sure we will reach agreements in the near future on the practical implementation of this project,” Novak said in televised remarks. Russia has been forging closer energy, political and economic ties with Turkey after relations with the European Union deteriorated sharply following its war in Ukraine. Last year, President Vladimir Putin laid out plans to establish a gas- trading hub in Turkey, including the possibility of laying more undersea natural gas pipelines across the Black Sea. The new conduits could become Russia’s main gas-export route for Europe, Putin said at the time. The setting up of an electronic gas-trading platform in Turkey could be the first step toward the creation of a gas hub there, Putin said in October. However, the timing of the project has been unclear with him initially suggesting it was a matter of months and Turkey’s Energy Minister Alparslan Bayraktar saying in recent weeks that it would likely happen in 2024. Talks had stalled after deadly earthquakes hit Turkey in February, followed by an election in the country in May. Ankara has been a relatively close ally of Moscow as many Western countries have shunned Russian trade following the invasion of Ukraine. In the energy industry, the two countries are already cooperating on construction of the Akkuyu nuclear power station in southern Turkey, with a budget of some $20 billion.
  • 9. Copyright © 2023 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 Russian Gas Exports to China Reach New High as Demand Ups Bloomberg News, Bloomberg News Russia’s Gazprom PJSC said its natural gas deliveries to China have hit a new historic high amid rising demand. Chinese National Petroleum Corp. requested volumes via the Power of Siberia 1 route that once again exceeded Gazprom’s contractual obligations on Nov. 23, the Russian producer said in a statement cited by state news service Tass on Saturday. “Gazprom supplied all the requested volumes and set a new record for daily gas supplies to China,” it said. Gazprom and CNPC last month signed an addendum to their contract on gas supplies via the Power of Siberia 1 that provided for additional deliveries through 2023, providing no further details. Russia aims to export 30 billion cubic meters of gas to China next year and eventually raise the flows to 38 bcm per year. Separate shipments via a future Far Eastern route are set to reach another 10 bcm per year. Gazprom is also in talks to supply as much as 50 bcm per year via the future Power of Siberia 2 link but the contract hasn’t been signed. Gazprom says it sees its pipeline-gas flows to China matching its historical shipments to Western Europe, which have slumped as European countries moved to diversify their energy imports after Russia invaded Ukraine in 2022. The Russian company sold approximately 120 bcm of gas to Western Europe in 2020.
  • 10. Copyright © 2023 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 India scrambles to add coal-fired power capacity, avoid outages Sarita Chaganti Singh, Reuters News India aims to add 17 gigawatts of coal-based power generation capacity in the next 16 months, its fastest pace in recent years, to avert outages due to a record rise in power demand, according to government officials and documents. The expansion drive comes ahead of this week's U.N. climate summit COP28, where France and the United States are expected to clamp down on financing for coal plants, a move that India, dependent on coal for 73% of power generation, plans to oppose. The world's fastest growing major economy has added an annual average of 5 gigawatts of coal- based electricity generation capacity over the last five years, but it is also ramping up renewable energy. Yet it will fall short of satisfying power demand if it does not expand the number of its coal plants, said two government officials, who did not want to be named as they are not authorised to speak to media. In the next four months, India plans to add nearly 3 gigawatts of coal-fired generation, while the following fiscal year, starting from April 1, 2025, will see it add 14 gigawatts, or its highest level in eight years, according to internal government documents seen by Reuters. The power ministry did not immediately respond to queries from Reuters. To ensure completion of projects, New Delhi has begun a review of 38 coal generation plants whose construction has been held up for years, moving to resolve issues over equipment and land acquisition delays, the two officials said.
  • 11. Copyright © 2023 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 The government expects 28 of these projects to become operational in the next 18 months, it told power producers in a presentation at a meeting on Nov. 21. Such projects include state-run power company NTPC's 660-megawatt unit in the eastern state of Bihar which has been delayed for 13 years, and two in the neighbouring state of Jharkhand held up for five years. At the meeting, Power Minister R. K. Singh told public and private power generators that India would "have to add coal-based thermal capacity," to meet requirements growing at an unprecedented rate, said the two officials, who also attended. He also urged private companies to set up fresh coal-based power generation capacity to meet night-time demand and assured them of financial assistance. Industry officials said such a call was being made for the first time in a decade since most private investments in the coal-fired power sector had stopped around the year 2012, partly because of India's green energy push. While the coal expansion drive aims to meet an expected rise of 10% in demand during peak hours in fiscal year 2024-25, India will still meet a national commitment of half of fuel generation capacity from non-fossil fuels by 2030, the two officials said. Since adding 22 gigawatts of capacity in the fiscal year 2015/16, India cut back on plans to expanding coal-fired plants as the government opted for alternate energy capacity, officials have said. Now India wants coal-fired plants sufficient to meet power demand of 384 gigawatts by the fiscal year 2031/32, revised up 5% from an earlier projection of 366 gigawatts, the government documents showed. The government consequently revised up its estimate of coal-based power requirement by 9%, to 283 gigawatts. "We have now modelled a stressed scenario factoring in a below-normal monsoon and a corresponding demand spike, such as we experienced in Aug-Oct this year," one of the government officials said. That stress accounts for delays in the commissioning of 86 gigawatts of non-fossil capacity by fiscal 2031/32. In the lead-up to Thursday's climate summit in Dubai, the European Union, U.S. and UAE have rallied support for a deal to triple global renewable energy installed by 2030. More than 100 countries have backed this deal, officials told Reuters, but countries including China and India are not yet fully on board.
  • 12. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase November 30 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices Jurky on weak China demand & OPEC+ meetings Cutts NewBase + Reuters Oil prices fell in early Asian trade on Thursday on weaker-than-expected Chinese manufacturing data, but investors maintained caution ahead of an OPEC+ meeting where production cuts are expected. Brent crude futures fell 28 cents, or 0.3%, to $82.90 a barrel by 0024 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 24 cents, or 0.3%, to $77.68 a barrel. China's manufacturing activity contracted for a second straight month in November and at a quicker pace than expected, an official factory survey showed on Thursday, suggesting more policy support measures are needed to help shore up economic growth in the world's largest oil importer. The official purchasing managers' index (PMI) fell to 49.4 in November from 49.5 in October, staying below the 50-point level demarcating contraction from expansion. Analysts polled by Reuters had expected a reading of 49.7. Oil price special coverage
  • 13. Copyright © 2023 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 The U.S. Energy Information Administration on Wednesday reported a surprise build in U.S. crude oil and distillate fuel stocks last week, indicating weak demand. Gasoline stocks also rose by more than expected, the data showed. Oil markets in the previous session found support from hopes of some form of a price-supportive resolution from the OPEC+ group, which includes the Organization of Petroleum Exporting Countries and its allies such as Russia. Members of OPEC+ are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional production cuts, although details were yet to be agreed, sources close to the group told Reuters. Another media report on Wednesday said that the cut could be as much as 1 million barrels a day. Oil prices gain near 2% on expectations of deeper OPEC+ cuts Oil prices rose more than $1 a barrel on Wednesday as investors focused their attention on expectations of fresh supply cuts from OPEC+ and looked past a jump in U.S. crude, gasoline and distillate stockpiles. Oil markets have found support from hopes of some form of a price-supportive resolution from the OPEC+ group, Kpler analyst Matt Smith said. Members of OPEC+, which includes the Organization of Petroleum Exporting Countries and its allies such as Russia, are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional cuts, although details were yet to be agreed, sources close to the group told Reuters. Another media report earlier said that the cut could be of as much as 1 million barrels a day. "All eyes are on the Nov. 30 OPEC meeting, and the fine details will matter," CFRA analyst Stewart Glickman said. The Energy Information Administration reported a surprise build in U.S. crude oil and distillate fuel stocks last week, indicating weak demand. Gasoline stocks also rose by more than expected, the data showed. However, the impact of those builds was neutralised by large draws in other refined products, like residual fuel oil, UBS analyst Giovanni Staunovo said. A severe storm in the Black Sea region has disrupted up to 2 million bpd of oil exports from Kazakhstan and Russia, according to state officials and port agent data, raising the prospect of short-term supply tightness.
  • 14. Copyright © 2023 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 NewBase Specual Coverage The Energy world –November 30 -2023 ENERGY Why OPEC+ members find it hard to agree oil production quotas Reuters + NewBase OPEC+ has postponed its November meeting by a few days and sources within the group say production targets were one of the key flashpoints of disagreement. WHY ARE QUOTA DISCUSSIONS SO FRAUGHT? OPEC+ negotiations over production quotas have often been difficult in the past. Oil production tends to vary month by month, making it difficult to fix on a permanent production target. So the higher a production reference level a country can negotiate, the less it actually has to cut to comply with its targets. WHAT DID OPEC+ AGREE AT ITS LAST MEETING? At its previous meeting in June 2023, after long negotiations, OPEC+ agreed a complex deal that revised production targets for several members.
  • 15. Copyright © 2023 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 The June changes allowed the United Arab Emirates to add 200,000 barrels per day (bpd) to a new target of 3.219 million bpd for 2024. The country plans to raise its oil production capacity to 5 million bpd in 2027 from about 4 million currently and has repeatedly complained it wasn't able to fully utilise its capacity while other members underproduced. African producers Nigeria, Angola, however, were among several countries, given lower targets after years of failing to meet the previous ones. The two countries produced below targets because of underinvestment and security issues. Angola had its target cut in June to 1.28 million bpd from the previous 1.45 million bpd, Nigeria saw its target reduced to 1.38 million from the previous 1.74 million.
  • 16. Copyright © 2023 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 WHAT WERE THE CAVEATS IN THE AGREEMENT? OPEC's has tasked three independent consultancies- IHS, Rystad Energy and Wood Mackenzie - to verify production figures for those countries for the rest of 2023 and report them at the next meeting at the end of this year. Angola will only be allowed to keep its new reference output level if the three sources can verify it, OPEC has said. The required production level for Congo and Nigeria may be updated to equal the average output they can achieve in 2024, as assessed by the three independent sources, OPEC has said. Nigeria will be allowed a higher production target for 2024 of 1.58 million bpd, if the three consultancies can confirm its capacity to produce at this level. "With a new president in place and mounting economic concerns, we think Nigeria will make an assertive case for higher 2024 production numbers in the coming days," RBC Capital Markets analyst Helima Croft said in a note on Thursday. "However, it may be more difficult to bridge the gap with Angola which has been a moodier member of the producer group since it joined in 2007," she added. WHAT ELSE DID THE JUNE 2023 AGREEMENT STIPULATE? By the end of June 2024, the three independent sources would also conduct verification of the capacity plans for all OPEC+ members to determine reference production levels for 2025, the June agreement stated. The OPEC+ group, comprising of the Organization of the Petroleum Exporting Countries and allies including Russia, surprised the market on Wednesday by delaying its Nov. 26 to Nov. 30 after producers struggled to reach a consensus on output levels. OPEC+ has moved closer to a compromise with African oil producers on 2024 output levels, three OPEC+ sources have told Reuters. "The most likely outcome now appears to be an extension of existing cuts," said IG analyst Tony Sycamore. The surprise delay had initially brought Brent futures down as much as 4% and WTI by as much as 5% in intraday trading on Wednesday. Trading remained subdued during Thursday's U.S. holiday. "While I wouldn't be entirely surprised to see leaks or comments over the weekend that still have an impact on the oil price on the open next week, the actual meeting now occurring Thursday could put traders' minds somewhat at ease," said Craig Erlam, senior market analyst at OANDA. A bright spot came in the form of the near-term economic outlook in China. Recent Chinese data and fresh aid to the indebted property sector can be "positive for the oil market's near-term trend", said CMC Markets analyst Tina Teng. Yet those gains could be capped by higher U.S. crude stockpiles and poor refining margins, leading to weaker demand from U.S. refineries, analysts said. "Fundamentals developments have been bearish with rising U.S. oil inventories," ANZ analysts said in a note. Still, China's longer-term outlook remains lukewarm. Analysts say oil demand growth could weaken to about 4% in the first half of 2024 as the property sector crunch weighs on diesel use. Non-OPEC production growth is set to remain strong, with Brazilian state energy company Petrobras planning to invest $102 billion over the next five years to boost output to 3.2 million barrels of oil equivalent per day (boepd) by 2028, up from 2.8 million boepd in 2024.
  • 17. Copyright © 2023 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 World oil supply Preliminary data indicates that global liquids production in October increased by 0.3 mb/d to average 101.6 mb/d compared with the previous month. Non-OPEC liquids production (including OPEC NGLs) is estimated to have increased by 0.2 mb/d, m-o-m, in October 2023 to average 73.7 mb/d. This is higher by 1.5 mb/d, y-o-y. Preliminary estimated production increases in October were mainly driven by Norway and OECD Americas, and were partially offset by drops in Russia and Brazil. The share of OPEC crude oil in total global production in October, remained unchanged to stand at 27.5% compared with the previous month. Estimates are based on preliminary data for non-OPEC supply, OPEC NGLs and non conventional oil, while assessments for OPEC crude production are based on secondary sources
  • 18. Copyright © 2023 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 NewBase Energy News 30-November - Issue No. 1677 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.
  • 19. Copyright © 2023 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
  • 20. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20
  • 21. Copyright © 2023 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