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NewBase Energy News 12 April 2022 No. 1504 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Mubadala's Cepsa looks to Abu Dhabi for green
hydrogen and clean energy partnerships
The National - Sarmad Khan
Cepsa is leveraging its relationship with Mubadala Investment Company and is in talks with Abu
Dhabi National Oil Company and Masdar on potential co-investments and partnerships as it pursues
its low-carbon energy strategy in Europe, its chief executive has said.
Cepsa, which is major ity-owned by Abu Dhabi's Mubadala Investment Company, has
set its sights on expanding its low-carbon energy interests The Spanish company is in talks with
Adnoc and Masdar as it pursues its low-carbon energy strategy in Europe
The Spanish oil and gas company, which is majority owned by Abu Dhabi’s strategic investment
fund Mubadala, is in talks with state-owned energy producer Adnoc for a green hydrogen
partnership, Maarten Wetselaar told The National ( Frame photo above) in an interview.
The potential tie-up can take the form of joint investments in developing the entire hydrogen value
chain from the Middle East to Europe and North Africa. Another option is Cepsa focusing on building
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
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demand and infrastructure in Spain and other parts of Europe as Adnoc remains focused on
hydrogen production, he said.
“We are actually discussing exactly that question with Adnoc at the moment,” Mr Wetselaar said.
“The biggest value add that we can have is to offer market access. We have customers in Spain,
we can develop customers in the rest of Europe."
Both approaches can work, however, it is a “little bit early” to say how its potential partnership with
Adnoc will be formed, he said, adding that Cepsa’s “unique contribution" lies more in Spain and
continental Europe. "I think that’s the starting point.”
Cepsa, which also counts the Carlyle Group as its shareholder, will be “absolutely willing” to bring
its expertise and knowledge to Abu Dhabi to work together with Adnoc, Mr Wetselaar said.
“I don’t think there’s a lack of capital in Abu Dhabi, although we would be willing to bring our capital
… to build those value chains together from Abu Dhabi into Europe, into North Africa and from North
Africa into Europe … a major opportunity that we would be very keen to work [on] together.”
Hydrogen, which can be produced from both renewable energy and natural gas, is expected to play
a key role in the coming years as economies and industries transition to a low-carbon world to
mitigate the effects of climate change.
Green hydrogen is produced from renewable sources while natural gas produces blue and grey
hydrogen.
An investment of about $600 billion in low-carbon hydrogen will be required by 2050 to meet rising
demand for the green fuel, Wood Mackenzie has said. Globally, the size of the hydrogen industry
is expected to hit $183bn by 2023, up from $129bn in 2017, Fitch Solutions has said. French
investment bank Natixis estimates that investment in hydrogen will exceed $300bn by 2030.
Demand for low-carbon hydrogen globally is set to surge to 223 million tonnes by 2050 from less
than 1 million tonnes currently, according to Wood Mackenzie estimates.
Mr Wetselaar is bullish on Spain becoming Europe’s main hydrogen hub and said the country is
ideally located to become the port of entry for hydrogen imports from North Africa and the Middle
East.
“Of course our relationship with Masdar, with Adnoc and Mubadala gives us a really good
opportunity to be the company that is at the receiving end of hydrogen flow that comes from Abu
Dhabi,” he said.
Mr Wetselaar, who joined Cepsa at the start of this year from Shell, plans to make Cepsa a global
leader in green hydrogen and low-carbon fuels. Cepsa aims to invest between €7 billion-€8bn
($8.9bn) over the next decade, with more than 60 per cent to be allocated to sustainable businesses
starting next 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,
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The company, which plans to become net-zero by 2050, aims to lead green hydrogen production in
Spain and Portugal by 2030 with a capacity equivalent to 2 gigawatts.
Developing the green hydrogen sector is also a central plank of the UAE’s energy diversification
strategy, as it aims to capture about 25 per cent of the global hydrogen market, UAE Energy Minister
Suhail Al Mazrouei said earlier this year.
Mubadala has described hydrogen as one of the most promising areas for investment in renewable
energy. Mubadala, Adnoc and Abu Dhabi holding company ADQ last year joined hands to form Abu
Dhabi Hydrogen Alliance, with focus on establishing the emirate as global hub for of low-carbon
green and blue hydrogen.
Last year, Adnoc and Taqa joined Mubadala to become shareholders in Masdar, a move that will
boost its renewable power capacity to more than 50 gigawatts by 2030 and help create a "global
champion in renewables and green hydrogen" sector, the companies said at the time.
"Investing and partnering in the energy transition has been a priority for Mubadala since 2006 and
is consistent with our commitment to responsible global investment across the sectors driving global
progress," Ahmed Yahia Al Idrissi, who is chairman of Cepsa and chief executive of direct
investments at Mubadala, said.
I would be surprised if we end up owning 7GW of solar and wind [projects] a 100 per cent at the
end of the decade. With the way I currently see the industry we want to be a minority shareholders
in these farms , Maarten Wetselaar, chief executive, Cepsa
The company's sweeping pivot and the massive investment layout over the next decade will enable
it to become a European leader in green hydrogen, biofuels and e-mobility. It will also help it
advance its clean energy goals and deliver on its customers’ expectations, Mr Al Idrissi said.
As part of its green strategy Cepsa is looking to convert its traditional refineries into renewable
energy parks. The company plans to develop a portfolio of solar and wind energy projects — mostly
dedicated to its own use — with capacity of 7GW, of which 1.5GW are already connected to the
grid.
Cepsa has approached several companies including Masdar to explore co-investment options to
develop its renewables portfolio.
“Masdar is absolutely a potential partner in some or all of the parks. We are eventually only
interested in getting green electrons as cheaply as we can,” Mr Wetselaar said.
“But we haven’t made any investments yet and at the moment it is a discussion on what terms would
we make a joint investment, if we did.”
In January 2020, Masdar and Cepsa formed a 50:50 joint venture — Cepsa Masdar Renovables —
which is focused on developing wind and solar photovoltaic projects in Spain and Portugal.
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Cepsa can choose the option of investing alone and later selling its renewables portfolio, but it is
more likely to strike partnerships.
“I would be surprised if we end up owning 7GW of solar and wind [projects] a 100 per cent at the
end of the decade. With the way I currently see the industry we want to be a minority shareholders
in these farms,” he said.
The green push will translate into a larger contribution of sustainable businesses to Cepsa's top
line, rising from 14 per cent in 2022 to more than half of its earnings before interest, taxes,
depreciation and amortisation in 2030, the company announced in March.
It can exceed its target of €8bn investment or more than 60 per cent being channelled into
sustainable business, depending on the speed at which markets develop over the next few years
and the pace at which the regulatory framework will mature, Mr Wetselaar said.
“If it all goes fast, than we will get to the €8bn and higher,” he said. The company is currently
designing “major hydrogen investments” and is working in parallel with the government to create an
environment that is conducive to making the final investment decision, he said without giving details
of the potential size of investments.
“We haven’t disclosed the number but you can imagine it would be one of the three big-ticket items
in the sustainable part of our investments,” Mr Wetselaar said. Cepsa plans to start building
hydrogen production centres next year, however, when the projects will finish will depend on the
global supply chain situation.
“At the moment it is quite stressed and it is possible that it impacts the timelines,” he said.
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 5
UAE’s Adnoc Buys Gas Tankers From China as Part of LNG Push
Bloomberg - Anthony Di Paola
Abu Dhabi is increasing its fleet of liquefied natural gas tankers as the Arabian Gulf producer raises
output capacity amid a global shortage of the fuel.
 State producer says the vessels should be delivered by 2025
 The UAE’s boosting gas and oil output capacity to up exports
State producer Abu Dhabi National Oil Co.’s shipping unit is buying two new LNG tankers from
China that are expected to be delivered in 2025. They will be built at the Jiangnan Shipyard in
Shanghai and bigger than any LNG vessels currently in Adnoc’s fleet, the company said.
Illustration of one of ADNOC’s planned 175,000 cubic meter LNG vessels.
Adnoc is spending billions of dollars to pump more crude and gas, believing demand will stay strong
for decades. Markets for both have tightened since Russia’s attack on Ukraine, which has disrupted
flows.
Europe to Spur Higher Global LNG Demand This Decade, MS Say
European buyers are looking to replace Russian gas supplies, indicating demand will remain
elevated beyond an immediate supply crisis that hit the continent last year. Global LNG
consumption will rise 60% through 2030, according to Morgan Stanley.
Adnoc’s acquired 16 ocean-going vessels over the past two years, including eight of the biggest
class of crude tankers, it said.
The company aims to raise oil-production capacity by a quarter to 5 million barrels a day and to
become self-sufficient in gas production by the end of the decade. The United Arab Emirates, of
which Abu Dhabi is the capital, is evaluating plans to double production capacity of LNG to 12 million
tons annually in the next five years.
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
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Oman green ammonia Supergiant takes shape
Oman Observer + NewBase
InterContinental Energy, along with consortium partners OQ and Enertech, announced some
key project development updates last week (click to download pdf). Three specialist organisations
have been contracted for feasibility work on the 25 GW Green Energy Oman (“GEO”) project in the
Al Wusta governorate:
DNV is currently completing Energy Yield Assessments, using three years of meteorological data
collected across Al Wusta.
Engineering giant Worley Group is contracted to further develop GEO and bring the project to life:
optimising wind and solar power generation and then “transfer & transforming” this renewable
energy into hydrogen and subsequently ammonia.
HMR will conduct environmental & social impact assessments, based on two decades of experience
in Oman. The announcement also includes a graphic visualisation of the wind and solar generating
areas being studied, and a site for ammonia manufacturing on the Oman coast, south of Duqm city:
Renewable energy study areas, and ammonia production site for the GEO project.
InterContinental’s three other green Supergiants – the Asian Renewable Energy Hub, the Western
Green Energy Hub (both in Australia), and the SAREH project in Saudi Arabia – are in various
stages of development.
The GEO team, together with our technical specialists, are at the vanguard of mega-scale green
fuels project development. The work being undertaken will place Oman at the forefront of such
projects, maximizing the utilization of Oman’s natural resources of wind and solar to produce green
fuels, and build the country’s associated industry. We look forward to continuing development in
collaboration with our partners.
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
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Oman:OMC and Wakud signed an agreement to introduce biodiesel
Oman Observer + NewBase
Oman Oil Marketing Company (OOMCO) and Wakud International LLC (Wakud) have signed an
agreement to introduce Biodiesel blends to Oman. The two companies will explore the potential of
selling different blends of Biodiesel to customers in the Commercial and Marine segments.
For corporations developing de-carbonization strategies, Biodiesel can produce immediate impact
without any capital expenditure. With almost no sulfur, biodiesel it attractive to marine customers
looking to abide by IMO standards and specifications for low sulfur fuel.
“OOMCO has been successfully leading the fuel marketing sector in the Sultanate by being
customer-centric and providing the highest level of service to its customers.
This collaborative work with Wakud is another example of how OOMCO has always been focusing
on customers’ needs as this will allow OOMCO to provide new products that support its customers
to achieve their de-carbonization target and drive the Oman 2040 vision towards sustainability.
We are proud of Wakud as Omani SME and we trust both of us can contribute to the growth of
Oman economy,” said Tarik Al Junaidi CEO of OOMCO.
“We are very excited to work partner with OOMCO to maximize the benefits of the circular economy
within Oman. Together, with Wakud’s waste-based Biodiesel and OOMCO’s vast distribution
network and logistics expertise, we believe we can help customers meet their carbon reduction
targets without the need for expensive investment,” said Maher Al Habsi, CEO of Wakud.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Biodiesel lifecycle CO2 emissions are up to 85% less than petrol diesel. Replacing 1 liter of petrol
diesel with one liter of used cooking oil based Biodiesel can save 2.6 kgs of CO2 emissions.
Biodiesel has been a part of the energy mix in Europe, UK and USA for the past 20 years and is
typically sold as a blend with petrol diesel (between 5% and 20% Biodiesel mixed with Petrol
Diesel). Using a blend requires no changes to existing engines, and virtually all engine
Manufacturers support Biodiesel blends without affecting engine warranties.
As the leader in the fuel marketing sector in Oman, OOMCO is involved in the marketing and
distribution of fuel and lubricant products and operates in the sectors of fuel Retailing, direct fuel
sales to government and the commercial sector, Lubricants, Aviation Refueling and Storage and
Distribution.
The company has also began to diversify and expand their business model into renewable energy
solution and future mobility.
Wakud, an Omani SME, operates a Biodiesel plant in Khazaen Economic City, Barka. The plant
declared commercial operations at the beginning of 2022 and has a capacity to produce 500 tons
(500,000 liters) of Biodiesel per month.
The plant recycles used cooking oil, collected from hotels, restaurants and catering companies
within Oman into Biodiesel that can serve as a direct replacement for petrol diesel.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Algeria: Eni and Sonatrach agree to increase gas supplies from
Algeria through Transmed.. Source: Eni
This agreement will allow to exploit the pipeline's available transportation capacities to ensure
greater supply flexibility, gradually providing increasing volumes of gas from 2022, up to 9 billion
cubic meters per year in 2023-24.
In the presence of the Algerian President Abdelmadjid
Tebboune and the Italian Prime Minister Mario Draghi, the
President of Sonatrach, Toufik Hakkar, and the CEO of
Eni, Claudio Descalzi signed today in Algiers an
agreement that will allow Eni to increase the quantities of
gas imported through the TransMed / Enrico Mattei
pipeline under the umbrella of the long term gas supply
contract in place with Sonatrach starting from the next
autumn, confirming the strong cooperation between the
countries.
This agreement will allow to exploit the pipeline's available
transportation capacities to ensure greater supply
flexibility, gradually providing increasing volumes of gas
from 2022, up to 9 billion cubic meters per year in 2023-
24.
The signing took place during the visit of the Italian Prime
Minister Mario Draghi to the President of the Democratic
Republic of Algeria, Abdelmajid Tebboune, which also
included a wider letter of intent to strengthen cooperation
in the energy field signed by the Algerian Foreign Minister Ramtane Lamamra and the Italian
Foreign Minister Luigi Di Maio on behalf of their respective Governments, in the presence of the
Algerian Prime Minister, Aymen Benabderrahmane, the Algerian Minister of Energy Mohamed
Arkab, and the Italian Minister for Ecological Transition Roberto Cingolani.
The agreement between Eni and Sonatrach, whose foundations have been laid during the previous
visit of Descalzi and the Italian Foreign Minister Di Maio to Algiers last February 28, was defined
and signed in record time following intense negotiations between the top management of the two
companies. The new gas volumes covered by the agreement are also the result of the close
collaboration in the development of upstream gas projects, leveraging Eni’s distinctive fast track
model, which is bringing a significant acceleration to the production potential of the Algerian fields.
The CEO of Eni Descalzi thanked the Algerian institutions and Sonatrach and commented:
'Today is a special day for the relations between Italy and Algeria, in particular for Eni and
Sonatrach: thanks to the close the long-standing collaboration between the two companies, it was
possible in a short time and with an enormous joint effort to sign this important agreement that
further consolidates the partnership between the companies and strengthens the cooperation
between our countries'.
Eni has been present in Algeria since 1981. With an equity production of 100,000 barrels of oil
equivalent per day, is the main international energy company in the country. Besides its ambitious
exploration and development program, Eni is assessing opportunities in the fields of renewables,
hydrogen, the capture, use and storage of CO2, and bio-refining, in line with its commitment to
achieving carbon neutrality by 2050.
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
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Greece to speed up gas exploration to help replace Russian gas
(Reuters) + NewBase
Greece will speed up gas exploration projects in concert with private investors, its prime minister
said on Tuesday, as it cuts its reliance on Russian energy and looks to become an energy hub in
Europe.
Russia's invasion of Ukraine and fears over gas supply in Europe have exacerbated a jump in prices,
forcing the European Union to seek ways to reduce its reliance on Russian gas by two-thirds this
year and to end it completely by 2027.
Greece, which covers about 40% of its annual energy needs with Russian gas, has produced small
quantities of oil in the past and has attempted to explore its hydrocarbon potential. But low crude
prices in previous years, a shift to green energy and lack of political will have stalled its exploration
plans.
"Accelerating the exploitation of the country's national energy resources will allow us, if we are lucky
and we have exploitable natural gas fields, to boost our energy independence, our energy security,"
Prime Minister Kyriakos Mitsotakis said.
Mitsotakis, who met the country's hydrocarbons commission and energy industry executives on
Tuesday, added that Greece aims to have a clear idea by 2023 on whether it has gas reserves it
could tap, while indications of potential gas reserves so far made the government "optimistic".
This acceleration, he said, will not undermine the country's policy to ramp up renewables and cut
carbon emissions by 55% by 2030 in line with EU's climate change targets.
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
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US: Launch of Cameron LNG expansion to increase liquefied
natural gas production. Source TotalEnergies
TotalEnergies has signed a Heads of Agreement (HOA) with Sempra Infrastructure, Mitsui &
Co and Japan LNG Investment – a company jointly owned by Mitsubishi Corporation and Nippon
Yusen Kabushiki Kaisha (NYK) – for the expansion of Cameron LNG, a liquefied natural gas (LNG)
production and export facility located in Louisiana, U.S.
This expansion project includes the development of a fourth train with a production capacity of 6.75
million metric tons per annum (Mtpa), and a 5% increase of the current 13.5 Mtpa first three trains
through debottlenecking. It will also include design enhancements aiming at reducing the emissions
of the facility, including electric drive technology.
Under the terms of the HOA, TotalEnergies will offtake 16.6% of the projected fourth train’s
production capacity, and 25% of the projected debottlenecked capacity. Additionally, Cameron LNG
advances the development of this project with the selection of two contractors to conduct a
competitive Front End Engineering Design (FEED) in view of the selection of the Engineering,
Procurement and Construction (EPC) contractor.
'We are pleased to take this new step with our partners to increase liquefaction capacity at Cameron
LNG, a facility ideally located on the Atlantic basin for export to Europe. In recent years,
TotalEnergies has become the leading exporter of U.S. LNG, most of which has been exported to
Europe in recent times, contributing to the continent’s security of energy supply.
TotalEnergies is committed to further expanding its presence in the United States, thus meeting
growing need for LNG, a key transition fuel' said Patrick Pouyanné, Chairman & CEO of
TotalEnergies. 'The expansion of Cameron LNG will contribute to our LNG growth strategy by
investing in low-cost, long-term competitive LNG projects with lower GHG emissions.'
Development of the Cameron LNG expansion project remains subject to definitive agreements,
obtaining the necessary permits, and all partners reaching a final investment decision planned for
2023.
Cameron LNG is jointly owned by Sempra Infrastructure (50.2%), TotalEnergies (16.6%), Mitsui &
Co., Ltd. (16.6%) and Japan LNG Investment (16.6%).
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
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NewBase April 12-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises on OPEC warning and easing of Shanghai COVID curbs
Reuters + NewBase
Oil prices climbed on Tuesday as Shanghai's relaxation of some COVID-19 restrictions eased
concerns about Chinese demand and as OPEC warned it would be impossible to replace potential
supply losses from Russia.
Brent crude futures rose by $3.47, or 3.52%, to $101.95 a barrel at 1121 GMT while U.S. West
Texas Intermediate was up $3.11, or 3.29%, at $97.40. Both contracts lost about 4% on Monday.
Shanghai said on Monday that more than 7,000 residential units had been classified as lower-risk
areas after reporting no new infections for 14 days and districts have since been announcing which
compounds can be opened up. read more
Oil price special
coverage
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The Organization of the Petroleum Exporting Countries (OPEC), meanwhile, warned that it would
be impossible to replace 7 million barrels per day (bpd) of Russian oil and other liquids exports lost
in the event of sanctions or voluntary actions. read more
The European Union has yet to agree any embargo on Russian oil, but some foreign ministers said
the option is on the table. read more
"The oil market is still vulnerable to a major shock if Russian energy is sanctioned, and that risk
remains on the table," wrote Edward Moya, a senior market analyst with OANDA.
Indian Oil Corp (IOC), which bought Russian Urals in previous tenders, has removed the grade from
its latest crude tender. U.S. President Joe Biden had told Indian Prime Minister Narendra Modi late
on Monday that buying more oil from Russia was not in India's interest. read more
IEA member nations are planning to release 240 million barrels over the next six months from May
in an effort to calm the market.
While the release will ease immediate tightness, analysts suggested it will not solve the structural
deficit caused by underinvestment and stocks will need to be replenished.
A preliminary Reuters poll showed U.S. crude oil inventories are likely to have risen by 1.4 million
barrels in the week to April 8 after declining for three consecutive weeks.
The poll was conducted ahead of a report from the American Petroleum Institute due at 4:30 p.m.
EDT (2030 GMT) on Tuesday.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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NewBase Special Coverage
The Energy world –April -01 -2022
CLEAN ENERGY
Why Japan Will Struggle to Do Without Russian Energy
Bloomberg - Shoko Oda and NewBase
After reports of alleged war crimes in Ukraine by Russian forces, Japan said it will follow the
European Union and Group of Seven countries and ban imports of Russian coal. Prime Minister
Fumio Kishida said the country will secure alternative sources of energy in a speedy manner,
although no time frame was given. But shifting away from Russian fuel will be easier said than done
for resource-poor Japan.
1. What sanctions has Japan imposed on Russia?
Ever since the invasion of Ukraine in late February, Japan has joined the U.S. and European
countries in sanctioning Russia. It has imposed export controls, including on semiconductors, and
has sanctioned some oligarchs and their family members. Russia is barred from issuing government
bonds in the country. Japan is also taking in Ukrainian refugees.
2. What about energy?
Japan had drawn a line there, as it has few resources of its own. Russia supplies Japan with 13%
of its coal for power generation, known as thermal coal; 8% of the coal used in steelmaking and 9%
of its liquefied natural gas.
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Japan has stakes in the Sakhalin-1 and 2 oil and gas projects in Russia, which Kishida
has called “an extremely important project for energy security.” But on April 8 Trade Minister Koichi
Hagiuda said Japan “will aim to stop importing coal from Russia” as a longer-term goal.
Russian Coal Exports
Japan accounts for about 10% of Russian shipments
3. Why the change?
Japan was standing with its G-7 partners, who expressed outrage over reports of atrocities
committed by Russian forces in Ukraine. “There needs to be accountability for such inhumane acts,”
Kishida said, adding that he believes Russia committed war crimes in Ukraine.
4. What are the challenges for Japan?
The global market for thermal coal is already tight, and with the EU also phasing out Russian coal,
competition from other countries will increase, said Ali Asghar, an analyst at BloombergNEF. That
means prices could rise, which could then translate into even higher electricity bills.
Energy-intensive industries such as chemical manufacturers would be especially hard hit, and some
might look for other sources of fuel. Longer term, a drive to cut Japan’s dependency on coal could
accelerate the transition to renewable energy and the restarting of nuclear power plants that were
taken offline following the 2011 Fukushima disaster, said Isshu Kikuma, another analyst at
BloombergNEF.
That said, neither offer immediate solutions. Hagiuda, the trade minister, said Japan will, over time,
use energy conservation, other power generation and supplies from alternative countries to reduce
its dependency on Russia.
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publication. However, no warranty is given to the accuracy of its content. Page 16
5. Can other suppliers replace Russian coal?
Not exactly, as Japan will have to take into account the variety of coal grades. Some power plants
and furnaces are most suited for Russian coal, and can’t easily replace it with supplies from Australia
or Indonesia. There are also logistical complications when it comes to quickly pivoting to new
sources, as shipments may come from producers that are farther away or there may not be vessels
readily available.
6. What about the other fossil fuels?
Japan is facing a pretty tight supply situation. Tokyo hasn’t announced any intention to walk away
from its energy projects in Russia, as U.K. oil majors BP Plc and Shell Plc have said they would do.
It also has avoided any direct action on Russian oil and gas so far, in line with the EU.
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 Energy News 12 April 2022 - Issue No. 1504 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 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 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 20

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Cepsa looks to Abu Dhabi partners Adnoc and Masdar for green hydrogen opportunities in Europe

  • 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 12 April 2022 No. 1504 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U.A.E: Mubadala's Cepsa looks to Abu Dhabi for green hydrogen and clean energy partnerships The National - Sarmad Khan Cepsa is leveraging its relationship with Mubadala Investment Company and is in talks with Abu Dhabi National Oil Company and Masdar on potential co-investments and partnerships as it pursues its low-carbon energy strategy in Europe, its chief executive has said. Cepsa, which is major ity-owned by Abu Dhabi's Mubadala Investment Company, has set its sights on expanding its low-carbon energy interests The Spanish company is in talks with Adnoc and Masdar as it pursues its low-carbon energy strategy in Europe The Spanish oil and gas company, which is majority owned by Abu Dhabi’s strategic investment fund Mubadala, is in talks with state-owned energy producer Adnoc for a green hydrogen partnership, Maarten Wetselaar told The National ( Frame photo above) in an interview. The potential tie-up can take the form of joint investments in developing the entire hydrogen value chain from the Middle East to Europe and North Africa. Another option is Cepsa focusing on building
  • 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 demand and infrastructure in Spain and other parts of Europe as Adnoc remains focused on hydrogen production, he said. “We are actually discussing exactly that question with Adnoc at the moment,” Mr Wetselaar said. “The biggest value add that we can have is to offer market access. We have customers in Spain, we can develop customers in the rest of Europe." Both approaches can work, however, it is a “little bit early” to say how its potential partnership with Adnoc will be formed, he said, adding that Cepsa’s “unique contribution" lies more in Spain and continental Europe. "I think that’s the starting point.” Cepsa, which also counts the Carlyle Group as its shareholder, will be “absolutely willing” to bring its expertise and knowledge to Abu Dhabi to work together with Adnoc, Mr Wetselaar said. “I don’t think there’s a lack of capital in Abu Dhabi, although we would be willing to bring our capital … to build those value chains together from Abu Dhabi into Europe, into North Africa and from North Africa into Europe … a major opportunity that we would be very keen to work [on] together.” Hydrogen, which can be produced from both renewable energy and natural gas, is expected to play a key role in the coming years as economies and industries transition to a low-carbon world to mitigate the effects of climate change. Green hydrogen is produced from renewable sources while natural gas produces blue and grey hydrogen. An investment of about $600 billion in low-carbon hydrogen will be required by 2050 to meet rising demand for the green fuel, Wood Mackenzie has said. Globally, the size of the hydrogen industry is expected to hit $183bn by 2023, up from $129bn in 2017, Fitch Solutions has said. French investment bank Natixis estimates that investment in hydrogen will exceed $300bn by 2030. Demand for low-carbon hydrogen globally is set to surge to 223 million tonnes by 2050 from less than 1 million tonnes currently, according to Wood Mackenzie estimates. Mr Wetselaar is bullish on Spain becoming Europe’s main hydrogen hub and said the country is ideally located to become the port of entry for hydrogen imports from North Africa and the Middle East. “Of course our relationship with Masdar, with Adnoc and Mubadala gives us a really good opportunity to be the company that is at the receiving end of hydrogen flow that comes from Abu Dhabi,” he said. Mr Wetselaar, who joined Cepsa at the start of this year from Shell, plans to make Cepsa a global leader in green hydrogen and low-carbon fuels. Cepsa aims to invest between €7 billion-€8bn ($8.9bn) over the next decade, with more than 60 per cent to be allocated to sustainable businesses starting next year.
  • 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 The company, which plans to become net-zero by 2050, aims to lead green hydrogen production in Spain and Portugal by 2030 with a capacity equivalent to 2 gigawatts. Developing the green hydrogen sector is also a central plank of the UAE’s energy diversification strategy, as it aims to capture about 25 per cent of the global hydrogen market, UAE Energy Minister Suhail Al Mazrouei said earlier this year. Mubadala has described hydrogen as one of the most promising areas for investment in renewable energy. Mubadala, Adnoc and Abu Dhabi holding company ADQ last year joined hands to form Abu Dhabi Hydrogen Alliance, with focus on establishing the emirate as global hub for of low-carbon green and blue hydrogen. Last year, Adnoc and Taqa joined Mubadala to become shareholders in Masdar, a move that will boost its renewable power capacity to more than 50 gigawatts by 2030 and help create a "global champion in renewables and green hydrogen" sector, the companies said at the time. "Investing and partnering in the energy transition has been a priority for Mubadala since 2006 and is consistent with our commitment to responsible global investment across the sectors driving global progress," Ahmed Yahia Al Idrissi, who is chairman of Cepsa and chief executive of direct investments at Mubadala, said. I would be surprised if we end up owning 7GW of solar and wind [projects] a 100 per cent at the end of the decade. With the way I currently see the industry we want to be a minority shareholders in these farms , Maarten Wetselaar, chief executive, Cepsa The company's sweeping pivot and the massive investment layout over the next decade will enable it to become a European leader in green hydrogen, biofuels and e-mobility. It will also help it advance its clean energy goals and deliver on its customers’ expectations, Mr Al Idrissi said. As part of its green strategy Cepsa is looking to convert its traditional refineries into renewable energy parks. The company plans to develop a portfolio of solar and wind energy projects — mostly dedicated to its own use — with capacity of 7GW, of which 1.5GW are already connected to the grid. Cepsa has approached several companies including Masdar to explore co-investment options to develop its renewables portfolio. “Masdar is absolutely a potential partner in some or all of the parks. We are eventually only interested in getting green electrons as cheaply as we can,” Mr Wetselaar said. “But we haven’t made any investments yet and at the moment it is a discussion on what terms would we make a joint investment, if we did.” In January 2020, Masdar and Cepsa formed a 50:50 joint venture — Cepsa Masdar Renovables — which is focused on developing wind and solar photovoltaic projects in Spain and Portugal.
  • 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 Cepsa can choose the option of investing alone and later selling its renewables portfolio, but it is more likely to strike partnerships. “I would be surprised if we end up owning 7GW of solar and wind [projects] a 100 per cent at the end of the decade. With the way I currently see the industry we want to be a minority shareholders in these farms,” he said. The green push will translate into a larger contribution of sustainable businesses to Cepsa's top line, rising from 14 per cent in 2022 to more than half of its earnings before interest, taxes, depreciation and amortisation in 2030, the company announced in March. It can exceed its target of €8bn investment or more than 60 per cent being channelled into sustainable business, depending on the speed at which markets develop over the next few years and the pace at which the regulatory framework will mature, Mr Wetselaar said. “If it all goes fast, than we will get to the €8bn and higher,” he said. The company is currently designing “major hydrogen investments” and is working in parallel with the government to create an environment that is conducive to making the final investment decision, he said without giving details of the potential size of investments. “We haven’t disclosed the number but you can imagine it would be one of the three big-ticket items in the sustainable part of our investments,” Mr Wetselaar said. Cepsa plans to start building hydrogen production centres next year, however, when the projects will finish will depend on the global supply chain situation. “At the moment it is quite stressed and it is possible that it impacts the timelines,” he said.
  • 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 UAE’s Adnoc Buys Gas Tankers From China as Part of LNG Push Bloomberg - Anthony Di Paola Abu Dhabi is increasing its fleet of liquefied natural gas tankers as the Arabian Gulf producer raises output capacity amid a global shortage of the fuel.  State producer says the vessels should be delivered by 2025  The UAE’s boosting gas and oil output capacity to up exports State producer Abu Dhabi National Oil Co.’s shipping unit is buying two new LNG tankers from China that are expected to be delivered in 2025. They will be built at the Jiangnan Shipyard in Shanghai and bigger than any LNG vessels currently in Adnoc’s fleet, the company said. Illustration of one of ADNOC’s planned 175,000 cubic meter LNG vessels. Adnoc is spending billions of dollars to pump more crude and gas, believing demand will stay strong for decades. Markets for both have tightened since Russia’s attack on Ukraine, which has disrupted flows. Europe to Spur Higher Global LNG Demand This Decade, MS Say European buyers are looking to replace Russian gas supplies, indicating demand will remain elevated beyond an immediate supply crisis that hit the continent last year. Global LNG consumption will rise 60% through 2030, according to Morgan Stanley. Adnoc’s acquired 16 ocean-going vessels over the past two years, including eight of the biggest class of crude tankers, it said. The company aims to raise oil-production capacity by a quarter to 5 million barrels a day and to become self-sufficient in gas production by the end of the decade. The United Arab Emirates, of which Abu Dhabi is the capital, is evaluating plans to double production capacity of LNG to 12 million tons annually in the next five years.
  • 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 Oman green ammonia Supergiant takes shape Oman Observer + NewBase InterContinental Energy, along with consortium partners OQ and Enertech, announced some key project development updates last week (click to download pdf). Three specialist organisations have been contracted for feasibility work on the 25 GW Green Energy Oman (“GEO”) project in the Al Wusta governorate: DNV is currently completing Energy Yield Assessments, using three years of meteorological data collected across Al Wusta. Engineering giant Worley Group is contracted to further develop GEO and bring the project to life: optimising wind and solar power generation and then “transfer & transforming” this renewable energy into hydrogen and subsequently ammonia. HMR will conduct environmental & social impact assessments, based on two decades of experience in Oman. The announcement also includes a graphic visualisation of the wind and solar generating areas being studied, and a site for ammonia manufacturing on the Oman coast, south of Duqm city: Renewable energy study areas, and ammonia production site for the GEO project. InterContinental’s three other green Supergiants – the Asian Renewable Energy Hub, the Western Green Energy Hub (both in Australia), and the SAREH project in Saudi Arabia – are in various stages of development. The GEO team, together with our technical specialists, are at the vanguard of mega-scale green fuels project development. The work being undertaken will place Oman at the forefront of such projects, maximizing the utilization of Oman’s natural resources of wind and solar to produce green fuels, and build the country’s associated industry. We look forward to continuing development in collaboration with our partners.
  • 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 Oman:OMC and Wakud signed an agreement to introduce biodiesel Oman Observer + NewBase Oman Oil Marketing Company (OOMCO) and Wakud International LLC (Wakud) have signed an agreement to introduce Biodiesel blends to Oman. The two companies will explore the potential of selling different blends of Biodiesel to customers in the Commercial and Marine segments. For corporations developing de-carbonization strategies, Biodiesel can produce immediate impact without any capital expenditure. With almost no sulfur, biodiesel it attractive to marine customers looking to abide by IMO standards and specifications for low sulfur fuel. “OOMCO has been successfully leading the fuel marketing sector in the Sultanate by being customer-centric and providing the highest level of service to its customers. This collaborative work with Wakud is another example of how OOMCO has always been focusing on customers’ needs as this will allow OOMCO to provide new products that support its customers to achieve their de-carbonization target and drive the Oman 2040 vision towards sustainability. We are proud of Wakud as Omani SME and we trust both of us can contribute to the growth of Oman economy,” said Tarik Al Junaidi CEO of OOMCO. “We are very excited to work partner with OOMCO to maximize the benefits of the circular economy within Oman. Together, with Wakud’s waste-based Biodiesel and OOMCO’s vast distribution network and logistics expertise, we believe we can help customers meet their carbon reduction targets without the need for expensive investment,” said Maher Al Habsi, CEO of Wakud.
  • 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 Biodiesel lifecycle CO2 emissions are up to 85% less than petrol diesel. Replacing 1 liter of petrol diesel with one liter of used cooking oil based Biodiesel can save 2.6 kgs of CO2 emissions. Biodiesel has been a part of the energy mix in Europe, UK and USA for the past 20 years and is typically sold as a blend with petrol diesel (between 5% and 20% Biodiesel mixed with Petrol Diesel). Using a blend requires no changes to existing engines, and virtually all engine Manufacturers support Biodiesel blends without affecting engine warranties. As the leader in the fuel marketing sector in Oman, OOMCO is involved in the marketing and distribution of fuel and lubricant products and operates in the sectors of fuel Retailing, direct fuel sales to government and the commercial sector, Lubricants, Aviation Refueling and Storage and Distribution. The company has also began to diversify and expand their business model into renewable energy solution and future mobility. Wakud, an Omani SME, operates a Biodiesel plant in Khazaen Economic City, Barka. The plant declared commercial operations at the beginning of 2022 and has a capacity to produce 500 tons (500,000 liters) of Biodiesel per month. The plant recycles used cooking oil, collected from hotels, restaurants and catering companies within Oman into Biodiesel that can serve as a direct replacement for petrol diesel.
  • 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 Algeria: Eni and Sonatrach agree to increase gas supplies from Algeria through Transmed.. Source: Eni This agreement will allow to exploit the pipeline's available transportation capacities to ensure greater supply flexibility, gradually providing increasing volumes of gas from 2022, up to 9 billion cubic meters per year in 2023-24. In the presence of the Algerian President Abdelmadjid Tebboune and the Italian Prime Minister Mario Draghi, the President of Sonatrach, Toufik Hakkar, and the CEO of Eni, Claudio Descalzi signed today in Algiers an agreement that will allow Eni to increase the quantities of gas imported through the TransMed / Enrico Mattei pipeline under the umbrella of the long term gas supply contract in place with Sonatrach starting from the next autumn, confirming the strong cooperation between the countries. This agreement will allow to exploit the pipeline's available transportation capacities to ensure greater supply flexibility, gradually providing increasing volumes of gas from 2022, up to 9 billion cubic meters per year in 2023- 24. The signing took place during the visit of the Italian Prime Minister Mario Draghi to the President of the Democratic Republic of Algeria, Abdelmajid Tebboune, which also included a wider letter of intent to strengthen cooperation in the energy field signed by the Algerian Foreign Minister Ramtane Lamamra and the Italian Foreign Minister Luigi Di Maio on behalf of their respective Governments, in the presence of the Algerian Prime Minister, Aymen Benabderrahmane, the Algerian Minister of Energy Mohamed Arkab, and the Italian Minister for Ecological Transition Roberto Cingolani. The agreement between Eni and Sonatrach, whose foundations have been laid during the previous visit of Descalzi and the Italian Foreign Minister Di Maio to Algiers last February 28, was defined and signed in record time following intense negotiations between the top management of the two companies. The new gas volumes covered by the agreement are also the result of the close collaboration in the development of upstream gas projects, leveraging Eni’s distinctive fast track model, which is bringing a significant acceleration to the production potential of the Algerian fields. The CEO of Eni Descalzi thanked the Algerian institutions and Sonatrach and commented: 'Today is a special day for the relations between Italy and Algeria, in particular for Eni and Sonatrach: thanks to the close the long-standing collaboration between the two companies, it was possible in a short time and with an enormous joint effort to sign this important agreement that further consolidates the partnership between the companies and strengthens the cooperation between our countries'. Eni has been present in Algeria since 1981. With an equity production of 100,000 barrels of oil equivalent per day, is the main international energy company in the country. Besides its ambitious exploration and development program, Eni is assessing opportunities in the fields of renewables, hydrogen, the capture, use and storage of CO2, and bio-refining, in line with its commitment to achieving carbon neutrality by 2050.
  • 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 Greece to speed up gas exploration to help replace Russian gas (Reuters) + NewBase Greece will speed up gas exploration projects in concert with private investors, its prime minister said on Tuesday, as it cuts its reliance on Russian energy and looks to become an energy hub in Europe. Russia's invasion of Ukraine and fears over gas supply in Europe have exacerbated a jump in prices, forcing the European Union to seek ways to reduce its reliance on Russian gas by two-thirds this year and to end it completely by 2027. Greece, which covers about 40% of its annual energy needs with Russian gas, has produced small quantities of oil in the past and has attempted to explore its hydrocarbon potential. But low crude prices in previous years, a shift to green energy and lack of political will have stalled its exploration plans. "Accelerating the exploitation of the country's national energy resources will allow us, if we are lucky and we have exploitable natural gas fields, to boost our energy independence, our energy security," Prime Minister Kyriakos Mitsotakis said. Mitsotakis, who met the country's hydrocarbons commission and energy industry executives on Tuesday, added that Greece aims to have a clear idea by 2023 on whether it has gas reserves it could tap, while indications of potential gas reserves so far made the government "optimistic". This acceleration, he said, will not undermine the country's policy to ramp up renewables and cut carbon emissions by 55% by 2030 in line with EU's climate change targets.
  • 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 US: Launch of Cameron LNG expansion to increase liquefied natural gas production. Source TotalEnergies TotalEnergies has signed a Heads of Agreement (HOA) with Sempra Infrastructure, Mitsui & Co and Japan LNG Investment – a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK) – for the expansion of Cameron LNG, a liquefied natural gas (LNG) production and export facility located in Louisiana, U.S. This expansion project includes the development of a fourth train with a production capacity of 6.75 million metric tons per annum (Mtpa), and a 5% increase of the current 13.5 Mtpa first three trains through debottlenecking. It will also include design enhancements aiming at reducing the emissions of the facility, including electric drive technology. Under the terms of the HOA, TotalEnergies will offtake 16.6% of the projected fourth train’s production capacity, and 25% of the projected debottlenecked capacity. Additionally, Cameron LNG advances the development of this project with the selection of two contractors to conduct a competitive Front End Engineering Design (FEED) in view of the selection of the Engineering, Procurement and Construction (EPC) contractor. 'We are pleased to take this new step with our partners to increase liquefaction capacity at Cameron LNG, a facility ideally located on the Atlantic basin for export to Europe. In recent years, TotalEnergies has become the leading exporter of U.S. LNG, most of which has been exported to Europe in recent times, contributing to the continent’s security of energy supply. TotalEnergies is committed to further expanding its presence in the United States, thus meeting growing need for LNG, a key transition fuel' said Patrick Pouyanné, Chairman & CEO of TotalEnergies. 'The expansion of Cameron LNG will contribute to our LNG growth strategy by investing in low-cost, long-term competitive LNG projects with lower GHG emissions.' Development of the Cameron LNG expansion project remains subject to definitive agreements, obtaining the necessary permits, and all partners reaching a final investment decision planned for 2023. Cameron LNG is jointly owned by Sempra Infrastructure (50.2%), TotalEnergies (16.6%), Mitsui & Co., Ltd. (16.6%) and Japan LNG Investment (16.6%).
  • 12. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase April 12-2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil rises on OPEC warning and easing of Shanghai COVID curbs Reuters + NewBase Oil prices climbed on Tuesday as Shanghai's relaxation of some COVID-19 restrictions eased concerns about Chinese demand and as OPEC warned it would be impossible to replace potential supply losses from Russia. Brent crude futures rose by $3.47, or 3.52%, to $101.95 a barrel at 1121 GMT while U.S. West Texas Intermediate was up $3.11, or 3.29%, at $97.40. Both contracts lost about 4% on Monday. Shanghai said on Monday that more than 7,000 residential units had been classified as lower-risk areas after reporting no new infections for 14 days and districts have since been announcing which compounds can be opened up. read more Oil price special coverage
  • 13. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 The Organization of the Petroleum Exporting Countries (OPEC), meanwhile, warned that it would be impossible to replace 7 million barrels per day (bpd) of Russian oil and other liquids exports lost in the event of sanctions or voluntary actions. read more The European Union has yet to agree any embargo on Russian oil, but some foreign ministers said the option is on the table. read more "The oil market is still vulnerable to a major shock if Russian energy is sanctioned, and that risk remains on the table," wrote Edward Moya, a senior market analyst with OANDA. Indian Oil Corp (IOC), which bought Russian Urals in previous tenders, has removed the grade from its latest crude tender. U.S. President Joe Biden had told Indian Prime Minister Narendra Modi late on Monday that buying more oil from Russia was not in India's interest. read more IEA member nations are planning to release 240 million barrels over the next six months from May in an effort to calm the market. While the release will ease immediate tightness, analysts suggested it will not solve the structural deficit caused by underinvestment and stocks will need to be replenished. A preliminary Reuters poll showed U.S. crude oil inventories are likely to have risen by 1.4 million barrels in the week to April 8 after declining for three consecutive weeks. The poll was conducted ahead of a report from the American Petroleum Institute due at 4:30 p.m. EDT (2030 GMT) on Tuesday.
  • 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 NewBase Special Coverage The Energy world –April -01 -2022 CLEAN ENERGY Why Japan Will Struggle to Do Without Russian Energy Bloomberg - Shoko Oda and NewBase After reports of alleged war crimes in Ukraine by Russian forces, Japan said it will follow the European Union and Group of Seven countries and ban imports of Russian coal. Prime Minister Fumio Kishida said the country will secure alternative sources of energy in a speedy manner, although no time frame was given. But shifting away from Russian fuel will be easier said than done for resource-poor Japan. 1. What sanctions has Japan imposed on Russia? Ever since the invasion of Ukraine in late February, Japan has joined the U.S. and European countries in sanctioning Russia. It has imposed export controls, including on semiconductors, and has sanctioned some oligarchs and their family members. Russia is barred from issuing government bonds in the country. Japan is also taking in Ukrainian refugees. 2. What about energy? Japan had drawn a line there, as it has few resources of its own. Russia supplies Japan with 13% of its coal for power generation, known as thermal coal; 8% of the coal used in steelmaking and 9% of its liquefied natural gas.
  • 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 Japan has stakes in the Sakhalin-1 and 2 oil and gas projects in Russia, which Kishida has called “an extremely important project for energy security.” But on April 8 Trade Minister Koichi Hagiuda said Japan “will aim to stop importing coal from Russia” as a longer-term goal. Russian Coal Exports Japan accounts for about 10% of Russian shipments 3. Why the change? Japan was standing with its G-7 partners, who expressed outrage over reports of atrocities committed by Russian forces in Ukraine. “There needs to be accountability for such inhumane acts,” Kishida said, adding that he believes Russia committed war crimes in Ukraine. 4. What are the challenges for Japan? The global market for thermal coal is already tight, and with the EU also phasing out Russian coal, competition from other countries will increase, said Ali Asghar, an analyst at BloombergNEF. That means prices could rise, which could then translate into even higher electricity bills. Energy-intensive industries such as chemical manufacturers would be especially hard hit, and some might look for other sources of fuel. Longer term, a drive to cut Japan’s dependency on coal could accelerate the transition to renewable energy and the restarting of nuclear power plants that were taken offline following the 2011 Fukushima disaster, said Isshu Kikuma, another analyst at BloombergNEF. That said, neither offer immediate solutions. Hagiuda, the trade minister, said Japan will, over time, use energy conservation, other power generation and supplies from alternative countries to reduce its dependency on Russia.
  • 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 5. Can other suppliers replace Russian coal? Not exactly, as Japan will have to take into account the variety of coal grades. Some power plants and furnaces are most suited for Russian coal, and can’t easily replace it with supplies from Australia or Indonesia. There are also logistical complications when it comes to quickly pivoting to new sources, as shipments may come from producers that are farther away or there may not be vessels readily available. 6. What about the other fossil fuels? Japan is facing a pretty tight supply situation. Tokyo hasn’t announced any intention to walk away from its energy projects in Russia, as U.K. oil majors BP Plc and Shell Plc have said they would do. It also has avoided any direct action on Russian oil and gas so far, in line with the EU.
  • 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 Energy News 12 April 2022 - Issue No. 1504 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.
  • 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
  • 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
  • 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