NewBase April 18-2022 Energy News issue - 1505 by Khaled Al Awadi.pdf

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NewBase Energy News 18 April 2022 No. 1505 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oman: Pact signed to invest in renewable energy sector
© Muscat Media Group Provided by SyndiGate Media Inc. (Syndigate.info).
Oman has developed a policy of switching to alternative energy as part of Oman’s Vision 2040 to
reach an average of 39% of the total energy supplied by 2040
Oman has developed a policy of switching to alternative energy as part of Oman’s Vision 2040 to
reach an average of 39 percent of the total energy supplied by 2040.
In translation of this vision, Al Shawamikh Oil Services signed a memorandum of understanding
with Asyad Dry Dock to develop renewable energy delivery initiatives in dry dock services in Duqm.
The memorandum of understanding (MoU) was signed by Dr. Aflah bin Saeed Al Hadhrami, CEO
of Al Shawamikh Oil Services, and Dr. Ibrahim Bin Bakhit Al-Nadhiri, CEO of Asyad Shipping and
Dry Dock, in the presence of a number of officials from both companies.
The MoU complements Al Shawamikh Oil Services’ orientation towards renewable and sustainable
projects, in which the company supports Asyad Dry Dock in all technologies of the fourth industrial

revolution in relation to renewable energy, energy efficiency, as well as sustainable energy and
ways to develop these technologies in the Special Economic Zone of Duqm (SEZD).
Al Shawamikh also sought to allow specialised experts from both companies to exchanging ideas
on field case studies to promote renewable energy projects, decarbonisation and experimental
techniques.
Al Shawamikh Oil Services is keen to experiment new emerging technologies in various aspects of
green energy in coordination with Asyad Dry Dock , pursue opportunities in the development of
projects of an energy-saving nature, reducing carbon emissions by millions of tons, improving
energy or any other environmental initiatives, which will place the dry dock in SEZD among green
facilities in the world.
Al Hadhrami said that Oman has
developed a policy of switching to
alternative energy to raise its utilisation
rate to 39 per cent by 2040, as part of
Oman’s Vision 2040.
He added that this move aims to enable
the optimal exploitation of energy sources,
and attach importance to the development
of renewable energy projects to support
economic diversification plans and
promote sustainable energy.
“To meet the aspirations of this vision, Al
Shawmikh Oil Services moves forward
with renewable and sustainable projects
through signing a MoU with Asyad
DryDock, aiming to invest the techniques
of the fourth industrial revolution in relation
to renewable energy to make the dry dock
port in the Economic Zone of Duqm within
the global green facilities. This is done
through the development of renewable
energy projects, reduction of thousands of
tons of carbon, and placing Oman’s name among the leading countries in renewable energy” he
explained.
Al Hadhrami also pointed out that the Economic Zone of Duqm works to attract many renewable
energy projects, noting that the Energy Department of AlShawamikh Company is proud of this
memorandum, which contributes to strengthening local partnerships to meet the aspirations of
Oman Vision 2040 related to investment in renewable energy and achieve a 39 percent increase in
its use rate by 2040.
He confirmed that “Sultanate of Oman has all elements to invest in various fields of renewable
energy and we seek in AlShawamikh to invest in these elements as well as partnerships to achieve
our aspirations in renewable energy throughout the country.”
To enhance partnership and share experiences with our strategic clients, AlShawmikh Oil Services
has signed a MoU with #Asiad_DryDock to invest in 4th Industrial Revolution technologies by
providing solutions in renewable energy sector and reducing carbon emissions in DryDock Services
Company in Duqm, he tweeted.

Egypt: Eni announces new discoveries in the Western Desert
Source: Eni
New oil and gas discoveries in the Meleiha concession add 8,500 barrels of oil equivalent to
production.Eni has announced new oil and gas discoveries in the Meleiha concessions, in Egypt’s
Western Desert, for approx. 8,500 barrels/day of oil equivalent.
These new discoveries have already been connected and tied into production, in line with the
Infrastructure-led exploration strategy, allowing to maximize exploration opportunities nearby
existing infrastructures.
Meleiha concessions, in Egypt’s Western Desert (Source: Eni)
The results were obtained through Nada E Deep 1X well, which encountered 60m of net
hydrocarbon pay in the Cretaceous-Jurassic Alam El Bueib & Khatatba formations, Meleiha SE
Deep 1X well, which found 30m of net hydrocarbon pay in the Cretaceous-Jurassic sands of the
Matruh & Khatatba formations, and Emry Deep 21 well, which encountered 35m of net hydrocarbon
pay in the massive cretaceous sandstones of Alam El Bueib. These results, added to the discoveries
of 2021 for total of 8 exploration wells, give a 75% of success rate, confirming the potential of the
area. Other exploration activities in the concession are ongoing with promising indications.
With these discoveries, Eni, through AGIBA, a JV between Eni and EGPC, continues to pursue
successfully its near field strategy in the mature basin of the Western Desert, aimed at maximizing
production by containing development costs and minimizing time to market. In addition, Eni renews
its commitment in the Western Desert with the recent acquisition of two exploration blocks with the
planning in 2022 of a new high-resolution 3D seismic survey in the Meleiha concession, also aimed
at investigating the gas potential of the area, in line with the energy transition goals.
Eni has been present in Egypt since 1954, where it operates through the subsidiary IEOC. The
company is currently the leading producer in the country with an equity production of around
360,000 barrels of oil equivalent per day. In line with the net-zero strategy by 2050, Eni is engaged
in a series of initiatives aimed at decarbonizing the Egyptian energy sector, including the
development of CCS plants, renewable energy plants, agro feedstock for bio refining and others.

India is setting sights on its coal, After buying cheap Russian oil
CNBC - Weizhen Tan@WEIZENT
KEY POINTS
 India’s coal imports from Russia jumped in March to highs not seen in more than two years,
according to data from commodity intelligence firm Kpler.
 The European Commission last week proposed banning Russian coal as part of a new round
of sanctions against Moscow for its invasion of Ukraine.
 “Markets suspect that India and China may boost coal imports from Russia, offsetting some
of the impact of a formalised EU ban on Russian coal imports,” Vivek Dhar from the
Commonwealth Bank of Australia said in a note.
 “The White House has fired two ‘warning shots’ to date, pressuring India to be on the ‘right
side of history’ and avoid aligning with Russia. There likely won’t be a third if this persists,”
said Samir N. Kapadia, head of trade at government relations consulting firm Vogel Group.
Even as the world shuns Russian goods, India is setting its sights on Russian coal. India’s coal
imports from Russia jumped in March 2022 to highs not seen in more than two years, according to
commodity intelligence firm Kpler.
India’s hunger for coal is growing. Even as the world shuns Russian goods, the Asian giant is setting
its sights on Russian coal – after already buying up its discounted oil. The European Commission
last week proposed banning Russian coal as part of a new round of sanctions against Moscow for
its invasion of Ukraine.
On the other hand, India’s coal imports from Russia jumped in March to highs not seen in more than
two years, according to data from commodity intelligence firm Kpler.

Coal imports from Russia were at 1.04 million tonnes, the highest level since January 2020, Kpler’s
Matthew Boyle, lead dry bulk analyst, told CNBC in an email. As much as two-thirds of March’s
volume came from Russia’s Far East ports, likely after the war began in late February.
“Markets suspect that India and China may boost coal imports from Russia, offsetting some of the
impact of a formalised EU ban on Russian coal imports,” Vivek Dhar, director of mining and energy
commodities research at the Commonwealth Bank of Australia, said in a note last week
“The EU ban on Russian coal imports comes at a time when the international coal market is already
very tight, with correspondingly high prices,” said Rystad Energy in a note. “A surge in coal demand
in Asia, as countries try to minimize imports of expensive natural gas, has sent coal prices soaring
in the past year.”
Despite warnings from the West, India continues to lean into their supply
chain relationship with Russia for natural resources like oil and coal.
Samir N. Kapadia
The main benchmark for coal imported into Europe — the API 2 — saw May prices surge to $300
per tonne last Tuesday, compared to $70 per tonne a year ago, according to Rystad Energy. India’s
coal crunch will likely benefit from a mega trade deal it signed with Australia on April 2, as the
commodity qualifies for the lifting of tariffs.
Tariffs are set to be removed on more than 85% of Australian goods exported to India. That,
however, will have its limitations as Australia won’t have sufficient coal to meet India’s growing
needs, said analysts.
Coal accounts for around 70% of India’s electricity generation, according to the International
Energy Agency’s 2021 India energy outlook report. The country is the world’s second-largest
consumer and importer of coal, with China being the first.

Russia is the sixth-largest coal producer in the world. In 2020, 54% of the country’s coal exports
went to Asia, while about 31% went to Organisation for Economic Co-operation and Development
countries in Europe, according to the U.S. Energy Information Administration.
Doubling down despite ‘warning shots’ from U.S.
Before the war started, India bought very little coal from Russia, which accounted for only about 2%
of India’s overall imports in 2021.
“We are moving in the direction of importing coking coal from Russia,” Indian Steel Minister
Ramchandra Prasad Singh told a conference in New Delhi, according to Reuters. He said the
country had imported 4.5 million tonnes of coking coal from Russia, but did not indicate which period.
“Despite warnings from the West, India continues to lean into their supply chain relationship with
Russia for natural resources like oil and coal,” said Samir N. Kapadia, head of trade at government
relations consulting firm Vogel Group.
Kapadia said it would hinge on a currency swap agreement “to bypass some of the financing
challenges in the market.” A currency swap line is an agreement between two central banks to
exchange currencies, set up to improve liquidity conditions and provide foreign currency funding to
domestic banks during periods of market stress.
Such a mechanism would allow India to buy Russian energy exports and other goods — even with
Western sanctions restricting international payment mechanisms. Several Russian banks have
already been cut out of SWIFT, a global system connecting more than 11,000 member banks in
some 200 countries and territories globally.
“I don’t think they can get around the logistical issues with shipping, but a rupee-rouble currency
swap would help,” Kapadia told CNBC in an email. The U.S might consider sanctions and other
measures on India if it doesn’t curtail its purchases of oil and coal from Russia, said Kapadia.
“The White House has fired two ‘warning shots’ to date, pressuring India to be on the ‘right side of
history’ and avoid aligning with Russia. There likely won’t be a third if this persists,” he said.
In recent weeks, top U.S. officials have reportedly warned New Delhi against a sharp rise in oil
imports, Washington has warned that India will face significant consequences if it aligns itself with
Moscow, according to reports.
India has also been snapping up cheaper oil from Russia as its purchases jump significantly, since
the start of the war.
India’s increasing coal dependence
India’s coking coal import dependency has soared to around 85%, according to CBA’s Dhar. A mega trade
deal it signed with Australia early this month may bring some relief, but even that might be limited.
“Australia just won’t be in a position to supply India the additional coking coal tonnes it requires for its growing
steel production fleet because supply growth will be limited,” said Dhar. Late last year, India was hit by a
coal shortage as its power demand soared.
The only way is for Australia’s coking coal exports to shift away from other countries so that India can claim
a bigger share — but that’s unlikely given that countries are now considering moving away from Russian
coal, according to Dhar.
“Given that South Korea, Japan and Europe are looking to diversify away from Russia (~10% of global coking
coal exports), it’s even harder to build the case that demand for Australian coking coal will weaken from a
major buyer in the foreseeable future,” Dhar said.

Indonesia: Petronas produces first hydrocarbons from Bukit Tua
Off shore Energy - Nermina Kulovic
Malaysian oil and gas giant Petronas has achieved the first hydrocarbon production from the Bukit
Tua Phase-2B Project located offshore Indonesia.
PC Ketapang II Ltd. (PCK2L), a subsidiary of Petronas, has achieved its first hydrocarbon in the
successful drilling of the Bukit Tua Phase-2B’s BTJTB-T2 well located within the Ketapang Block,
offshore East Java, Indonesia.
As informed by Petronas on Thursday, the BTJTB-T2 well was spudded on 30 September 2021 and
drilled with a target depth of 1,890 metres. This milestone is part of the fourth development project
after Bukit Tua Phase 1, Phase 2A and Phase 3. The project aims to produce 12,500 barrels of oil
equivalent (boe) per day and 30 million standard cubic feet (mmscf) of gas per day through five
development wells.
Petronas Executive Vice President and Chief Executive Officer of Upstream, Adif Zulkifli,
said, “The Bukit Tua Phase-2B project’s first hydrocarbon will play an important role in contributing
to Indonesia’s target to achieve one million barrels of oil per day by 2030.”
PCK2L President Director, Yuzaini Md Yusof, said, “We are proud of the positive results as well as
the full commitment from all parties that led us to this achievement. We thank SKK Migas, the local
authorities and our partners for their tremendous support throughout the project.”
Petronas is the operator of the Ketapang Block and holds 80 per cent participating interest through
its two subsidiaries, PC Ketapang II Ltd and Petronas Carigali (Ketapang), while the remaining 20
per cent is held by PT Saka Ketapang Perdana.
Petronas is also the operator in the North Madura II PSC offshore East Java and a joint venture partner in
six other Blocks located both onshore and offshore in the areas of Sumatera, Natuna Sea, East Java, and
as well as West Papua.
Last month, Petronas was awarded a new block – located onshore and offshore East Java. The North
Ketapang block was awarded to Petronas during the second round of the Indonesia Petroleum Bid Round
2021.

U.S: Haynesville natural gas production highest in late 2021
Source: U.S. Energy Information Administration, Dry shale gas production estimates by play
Dry natural gas production from the Haynesville shale play in northeastern Texas and northwestern
Louisiana reached new highs in the second half of 2021, and production has remained relatively
strong in early 2022. Haynesville natural gas production accounted for about 13% of all U.S. dry
natural gas production in February 2022.
Haynesville is the third-largest shale gas-producing play in the United States. The Marcellus play in
the Appalachian Basin (mainly in Pennsylvania, West Virginia, and Ohio) is the highest-producing
shale gas play in the United States. During 2021, an average of 31.7 billion cubic feet per day (Bcf/d)
of natural gas was produced from the Marcellus play.
In the Permian play in Texas and New Mexico, production averaged 12.4 Bcf/d in 2021, making it
the second-highest producing play. Altogether, the Marcellus, the Permian, and the Haynesville
account for 52% of U.S. dry natural gas production.
Natural gas production in the Haynesville declined steadily from mid-2012 until 2016 due to
its relatively higher cost to produce natural gas compared with other producing areas. At depths of
10,500 feet to 13,500 feet, wells in the Haynesville are deeper than in other plays, and drilling costs
tend to be higher.
By comparison, wells in the Marcellus in the Appalachian Basin are shallower—between 4,000 feet
and 8,500 feet.
Years of relatively low natural gas prices meant it was less economical to drill deeper wells.
However, because natural gas prices have increased since mid-2020, producers have an incentive
to increase the number of rigs in operation and use those rigs to drill deeper wells.

Producers tend to increase or decrease the number of drilling rigs in operation as natural gas prices
fluctuate.
The number of natural gas-directed rigs in the Haynesville has been rising steadily since the second
half of 2020 and reached an average of 46 rigs in 2021, according to data from Baker Hughes.
Since the beginning of 2022, producers have added 17 rigs in the Haynesville region.
For the week ending April 8, there were 64 natural gas-directed rigs operating in the Haynesville,
representing 45% of natural gas-directed rigs currently operating in the United States.
Source: Graph by the U.S. Energy Information Administration, based on data from CME Group as
compiled by Bloomberg, L.P., and Baker Hughes Company
Pipeline takeaway capacity out of the Haynesville has also increased in recent years. The additional
capacity allows producers to reach industrial demand centers and liquefied natural gas terminals on
the U.S. Gulf Coast. The Enterprise Products Partners’
Gillis Lateral pipeline and the associated expansion of
the Acadian Haynesville Extension entered into service
in December 2021.
Prior to that project, Enbridge Midcoast Energy’s CJ
Express pipeline entered into service in April 2021.
These projects added 1.3 Bcf/d of takeaway capacity in
the Haynesville area, which is currently estimated to
total 15.9 Bcf/d according to PointLogic.

U.S Wind was 2nd source of electricity generation on March 29
Source: U.S. Energy Information Administration, Hourly Electric Grid Monitor
On Tuesday, March 29, wind turbines in the Lower 48 states produced 2,017 gigawatthours (GWh)
of electricity, making wind the second-largest source of electric generation for the day, only behind
natural gas, according to our Hourly Electric Grid Monitor.
Daily wind-powered electricity had surpassed coal-fired and nuclear electricity generation
separately on other days earlier this year but had not surpassed both sources on a single day.
Consistent growth in the installed capacity of wind turbines in the United States has led to more
wind-powered electricity generation. In September 2019, U.S. wind capacity surpassed nuclear
capacity, but wind still generated less electricity than nuclear because of differences in those
technologies’ utilization.
The average capacity factor of U.S. wind generators (35% in 2021) is lower than the average
capacity factor of nuclear generators (93% in 2021), which are designed to run at or near full output,
which they typically do. Wind turbines currently rank as the third-largest source of generating
capacity in the United States, behind natural gas-fired generators and coal-fired generators.

In the United States, wind speeds, and correspondingly, wind-powered electricity generation, often
peak during spring. On March 29, the Southwest Power Pool (SPP), which covers parts of
Oklahoma, Kansas, Nebraska, North Dakota, South Dakota, and neighboring states, and the
Electric Reliability Council of Texas (ERCOT) both reported new wind penetration records.
Wind penetration represents the share of electric demand satisfied by wind generation.
SPP reported wind penetration of 88.5% on March 29, and ERCOT reported wind penetration of
67.2% for the same day.
Because electricity demand tends to be lowest in the spring and fall months, some generators—
including both nuclear and coal—reduce their output or scheduled maintenance during these
months. Also, on days when weather patterns lead to more wind generation, competing coal-fired
and natural gas-fired generators often are called upon to reduce their output so that overall electricity
supply matches demand.
The natural variation of wind speeds contributes to very different amounts of wind generation,
depending on the time of day or season. Wind first ranked as the second-largest source of U.S.
electricity generation for an hour in late March 2021.
On a monthly basis, we have had less wind generation in the United States than natural gas-fired
generation, coal-fired generation, or nuclear generation. We do not expect wind to surpass either
coal-fired or nuclear generation for any month in 2022 or 2023, based on our most recent Short-
Term Energy Outlook forecast.
Our Hourly Electric Grid Monitor publishes electric generation from generators that are metered
within reporting balancing authorities. Typically, balancing authorities do not meter generators on
the distribution system—both large-scale resources and small-scale distributed resources, such as
rooftop solar photovoltaic systems. The data series in our Electric Power Monthly represent our
official statistical reports and include both large-scale and small-scale resources in the generation
data.

NewBase April 18-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices hit near 3-week highs on supply fears & Ukraine crisis
Reuters + NewBase
Oil prices climbed to nearly three-week highs on Monday as fears over tight global supply grew,
with the deepening crisis in Ukraine raising the prospect of heavier sanctions by the West on top
exporter Russia.
Brent futures were up $1.09, or 1.0%, at $112.79 a barrel at 0445 GMT, after hitting its highest since
March 30 of $113.80 earlier in the session. U.S. West Texas Intermediate futures rose $1.00, or
0.9%, to $107.95 a barrel, having gained to as high as $108.55, the highest since March 30.
Oil price special
coverage

Ahead of Easter weekend holidays, both contracts gained more than 2.5% on Thursday on news
that the European Union might phase in a ban on Russian oil imports.
EU governments said last week the bloc's executive was drafting proposals to ban Russian crude,
but diplomats said Germany was not actively supporting an immediate embargo. read more
Those comments came before tensions grew in the Ukraine crisis over the weekend, with Ukrainian
soldiers resisting a Russian ultimatum to lay down arms on Sunday in the pulverised port of
Mariupol. Moscow, which calls its actions in Ukraine a "special operation", said its forces had almost
completely seized the city. read more
The International Energy Agency had warned that roughly 3 million barrels per day (bpd) of Russian
oil could be shut in from May onwards due to sanctions, or buyers voluntarily shunning Russian
cargoes. read more
Russian oil production has continued to slide in April, declining by 7.5% in the first half of the month
from March, the Interfax news agency reported on Friday.
"The oil market will likely stay on a bullish trend this week with limited additional supply coming from
major oil producers to offset a reduced flow from Russia," said Kazuhiko Saito, chief analyst at
Fujitomi Securities Co Ltd.
"Soaring U.S. heating oil prices were also behind the recent rally as expectations grew that U.S.
petroleum market would get tighter due to increasing demand to export to Europe."
The Organization of the Petroleum Exporting Countries (OPEC and its allies in a grouping known
as OPEC+, which includes Russia, have rebuffed Western pressure to raise output at a faster pace
under a previously agreed deal to boost supply.
An OPEC report last week showed OPEC output in March rose by just 57,000 bpd to 28.56 million
bpd, lagging the 253,000 bpd rise that OPEC is allowed under the OPEC+ deal.
Adding to pressure, Libya halted oil production from its El Feel oilfield on Sunday and two sources
at Zueitina oil port said exports there had been suspended after protesters calling for Tripoli-based
Prime Minister Abdulhamid al-Dbeibah to resign took over the sites. read more
U.S. oil production forecasts, however, are being revised upwards despite labour and supply chain
constraints, as higher prices spur more drilling and well completion activity, according to industry
experts.

NewBase Special Coverage
The Energy world –April -01 -2022
CLEAN ENERGY
The race to roll out ‘super-sized’ wind turbines is on
CNBC - Anmar Frangoul
KEY POINTS
 Recent years have seen companies like GE, Vestas and Siemens Gamesa Renewable
Energy announce plans to develop huge wind turbines.
 The sheer scale of these turbines may pose a number of mid-to-long term challenges for the
sector.
 Huge turbines are being designed at a time when countries around the world are laying out
plans to expand wind energy capacity.
A Haliade-X wind turbine photographed in the Netherlands on March 2, 2022. The Haliade-X is
part of a new generation of huge turbines set to be installed in the years ahead.
In the not too distant future, waters 15 miles off Martha’s Vineyard will be home to a potentially
crucial part of America’s energy future: the 800-megawatt Vineyard Wind 1, a project that’s been
described as “the nation’s first commercial-scale offshore wind farm.”
Construction of Vineyard Wind 1 started last year, and the facility will use 13 MW versions of
GE Renewable Energy’s Haliade-X turbines. With a height of up to 260 meters (853 feet), a rotor
diameter of 220 meters and 107-meter blades, the Haliade-X is part of a new generation of turbines
set to be installed in the years ahead.

In addition to GE, other companies are getting in on the big turbine act. In Aug. 2021, China’s
MingYang Smart Energy released details of a 264-meter tall design that will use 118-meter
blades.
Elsewhere, Danish firm Vestas is working on a 15-megawatt turbine that will have a rotor diameter
of 236 meters and 115.5-meter blades while Siemens Gamesa Renewable Energy is
developing a turbine that incorporates 108-meter blades and a rotor diameter of 222 meters.
The reasons for these increases in size are clear. When it comes to height, the U.S. Department of
Energy says the towers of turbines “are becoming taller to capture more energy, since winds
generally increase as altitudes increase.”
A bigger rotor diameter isn’t just for show either, with the DOE noting that they “allow wind turbines
to sweep more area, capture more wind, and produce more electricity.”
It’s much the same with blades. The DOE says longer blades can “capture more of the available
wind than shorter blades—even in areas with relatively less wind.”
Having huge turbines arrive on the market is all well and good, but their sheer scale may pose a
number of mid-to-long term challenges for the sector, creating pinch points that could cause
headaches.
Shipshape
Take installations. In February, research from Rystad Energy honed in on some of the possible
issues related to the ships used to install offshore wind turbines out at sea.
Not counting China, it said wind turbines had seen what it called “a growth spurt in recent years,
rising from an average of 3 megawatts (MW) in 2010 to 6.5 MW today.”

This shift, it explained, was likely to be sustained. “Turbines larger than 8 MW accounted for just
3% of global installations between 2010 and 2021, but that percentage is forecast to surge to 53%
by 2030.”
The above data relates to offshore wind turbines only. According to the energy research and
business intelligence firm, demand for vessels able to install larger offshore turbines is set to outstrip
supply by the year 2024.
Operators, it said, “will have to invest in new vessels or upgrade existing ones to install the super-
sized turbines that are expected to become the norm by the end of the decade, or the pace of
offshore wind installations could slow down.”
“When turbines were smaller, installation could be handled by the first-generation fleet of offshore
wind vessels or converted jackups from the oil and gas industry,” Martin Lysne, senior analyst for
rigs and vessels at Rystad Energy, said in a statement at the time.
With operators continuing to favor bigger turbines, Lysne said a “new generation of purpose-built
vessels” would be needed to satisfy demand.
These specialized vessels don’t come cheap. U.S. firm Dominion Energy, for example, is heading
up a consortium building the 472-foot Charybdis, which will cost around $500 million and be able to
install current turbines and next-generation ones of 12 MW or greater. More vessels like the
Charybdis will be needed in the future as turbines grow.
“Out of the current fleet of purpose-built vessels, only a handful of units can install 10 MW+ turbines,
and none are currently able to install 14 MW+ turbines,” according to Rystad Energy’s analysis.
“This will change towards 2025 as newbuilds start to be delivered and existing vessels get crane
upgrades.”
Ports
The ships that transport and install turbines will be important in the years ahead, but the ports where
they dock are another area where investment and upgrades will likely be needed to cater to wind
energy’s growth.

In a comment sent to CNBC via email, Rystad Energy’s Lysne described port infrastructure as being
“very important” from a vessel perspective.
Installation vessels moored in Ostend, Belgium. Industry bodies from the wind energy sector are calling for
significant investment in port infrastructure to help cope with the rapid expansion of wind farms.
Going forward, it would appear that a lot of money will be needed. Last May, a report from industry
body WindEurope said Europe’s ports would have to invest 6.5 billion euros (around $7.07
billion) by 2030 in order “to support the expansion of offshore wind.”
The report addressed the new reality of bigger turbines and the effect this could have in relation to
ports and infrastructure. “Upgraded or entirely new facilities are needed to host larger turbines and
a larger market,” it said.
Ports, WindEurope said, would also need to “expand their land, reinforce quays, enhance their
deep-sea harbours and carry out other civil works.”
More recently, a report from the Global Wind Energy Council also reinforced the importance of ports.
“As offshore wind projects expand and commercial-scale floating wind projects proliferate, port
upgrades will be critical for the future success of the industry,” it said.
The Brussels-based organization said turbine sizes had “increased dramatically” over the past
decade, noting that 15 MW turbines were available on the market.
“Experts now predict turbines with a 17 MW rating will be commonplace by 2035,” it said, before
adding that projects centered around floating offshore wind were being developed “at huge
volumes.”
These “floating projects” needed “significant quayside storage and assembly, necessitating more
spacious facilities, on-land connective transport links within port areas and deeper-water ports.”

“Several governments have identified port upgrades as vital to progressing offshore wind, from
Taiwan to New York State.”
As wind turbines grow in size, the vessels used to transport their component parts will also need to adapt.
In relation to ports, Rystad Energy’s Lysne told CNBC that the U.S. — whose current offshore wind
market is small — would “require more work as they do not have the same infrastructure in place
as Europe.”
Change on that front does appear to be forthcoming. At the beginning of March, BP and Equinor —
two businesses better known as oil and gas producers — signed an agreement to convert the South
Brooklyn Marine Terminal into an offshore wind port.
In an announcement, Equinor said the port would become “a cutting-edge staging facility for Equinor
and bp’s Empire Wind and Beacon Wind projects.” The site, it claimed, would be “a go-to destination
for future offshore wind projects in the region.” Investment in infrastructure upgrades is expected to
come in at $200 to $250 million.
The road ahead
All of the above feeds into the importance of infrastructure and logistics. Shashi Barla, who is global
head of wind supply chain and technology at Wood Mackenzie, told CNBC that while
companies had the technological capabilities, logistical challenges were proving to be
“very difficult.”
“It’s not that it is something new … we have been talking about logistics challenges
since day one of the industry,” Barla said. “It’s that ... we are kind of now, today,
approaching the tipping point.”
Around the world, major economies are announcing plans to ramp up wind energy
capacity in a bid to reduce our reliance on fossil fuels.

As the components of wind turbines get bigger, logistical challenges faced by the sector also look set to
grow. This image, from August 2021, shows a 69-meter long rotor blade being transported in Germany.
While these goals are ambitious, it’s clear they face a number of hurdles. Notwithstanding the issues
related to turbine size, it will require a gargantuan effort to bring all these installations online. There’s
work to be done.
“Increasingly, a lack of facilitating
infrastructure is seen as a major limiting
factor in the wind industry’s growth,” the
GWEC’s report noted.
“In many countries,” it added, “lack of
infrastructure, such as grid and
transmission networks, logistics
highways and ports, is curtailing the
expansion of wind power and stifling the
very innovation needed to transform the
energy system.”
Alongside these issues, wind turbines’
interaction with wildlife is likely to be
another area of major debate and
discussion going forward. Only last
week, the U.S. Department of Justice
announced that a firm called ESI Energy Inc had “pled guilty to three counts of violating the MBTA,”
or Migratory Bird Treaty Act.
As the 21st century progresses, wind energy is set for a massive expansion, but the road ahead
looks far from smooth. With the U.N. secretary-general recently warning the planet
was “sleepwalking to climate catastrophe,” the stakes couldn’t be much higher.

NewBase Energy News 18 April 2022 - Issue No. 1505 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase April 18-2022 Energy News issue - 1505 by Khaled Al Awadi.pdf

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