NewBase August 12-2022 Energy News issue - 1538 by Khaled Al Awadi.pdf

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NewBase Energy News 12 August 2022 No. 1538 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E ‘s IHC acquires 50pc of Turkey’s clean energy Kalyon Enerji
Gulf Business + NewBase
International Energy Holding, part of International Holding Company (IHC), the diversified Abu
Dhabi-based conglomerate, has acquired a 50% stake in Turkish clean energy market leader
Kalyon Enerji for AED1.8 billion ($490 million).
The deal includes the photovoltaic power plant project with an installed capacity of 1,347.734 MWp
/ 1,000 MWe in the Karapinar Region in Konya, located in Ankara, the wind Project of 1GW capacity
developed by YEKA, 100 MW Solar Project in Niğde, 50 MW Solar Project in Gaziantep, and other
renewable projects in various cities of Turkey.
Kalyon Karapınar Solar Power Plant covers approximately 20 million sq m in Konya's Karapınar
district. The installation and commissioning of 3.5 million panels started in August 2020 and are set
to be completed in 2023.

Green credentials
When the project gets completed, energy equivalent to one week’s need of a city with a population
of 50,000 will be produced in just one hour. In other words, this facility alone will meet the annual
electrical energy needs of approximately 2 million people. In addition, 2 million tonnes of fossil waste
and carbon emissions will be prevented.
Kalyon Enerji is owned by the giant Turkish group Kalyon Holding, which operates in the
Construction, Energy and Aviation industries. Through this transaction International Energy Holding
will add to IHC Group’s international growth prospects with access to its power trading capabilities.
Commenting on the acquisition, Syed Basar Shueb, IHC’s Chief Executive Officer, said: "This
constitutes IHC's second-largest acquisition in the renewable energy sector to date. With this
transaction, IHC is further accelerating its growth in the renewable energy sector by partnering with
Kalyon Enerji, and this will complement our renewable energy portfolio, which we will continue to
grow across different markets."
Strategic tie-up
Underlining that this strategic cooperation is of great importance not only for the two countries but
also on a regional scale, Cemal Kalyoncu, Kalyon Holding Chairman of the Board said: “The steps
we have taken in the energy sector and the investments we have made, have attracted the attention
of foreign investors so far.
This strategic cooperation is of historical importance in terms of realising both potential projects in
Turkey, and new markets and business fields in geographies, that we plan to enter in the world, it
will make a great contribution to our geography as well as our country.
We have always been committed to enriching human life by contributing to social development
without losing environmental awareness. With climate change being the defining challenge of our
time, we must accelerate our efforts to transform our planet into a sustainable green economy.”
The acquisition comes as part of IHC's long-term investment strategy in the clean energy sector
and four months after its AED7.3 billion investment in Indian conglomerate Adani Group.

Egypt to ration electricity to boost gas exports
Reuters + NewBase
Under the draft plan, shops and malls will have to limit their use of strong lights and keep their air
conditioning at no cooler than 25 degrees Celsius. Egypt's cabinet has approved a plan to ration
electricity to save natural gas that it will instead divert to the export market to generate foreign
currency, it said on Thursday.
Egypt has suffered from an acute foreign currency shortage since Russia's February invasion of
Ukraine, which pushed up global commodity prices, led to the collapse of tourism from the two
countries and drove up the cost of borrowing.
Under the draft plan, shops and malls will have to limit their use of strong lights and keep their air
conditioning at no cooler than 25 degrees Celsius.
Ministries and government facilities will have to turn off lighting at the end of working hours, the
statement added. Street lighting will also be reduced.
The government last month postponed a planned increase in electricity prices by six months. The
higher prices would have been intensely unpopular among a population that over the last few years
has endured a series of harsh austerity measures.
On Tuesday, Prime Minister Mostafa Madbouly said the government hoped to reduce the amount
of gas used to generate electricity by 15%. He said domestic power plants bought their natural gas
at one-tenth the price that it could fetch on international markets.
Europe has been seeking alternative sources of gas to cut its reliance on Russian gas as the war
in Ukraine escalates.
Rapid growth in Egypt's natural gas supplies, boosted by the discovery of the Mediterranean’s
largest field, turned it from a net importer to an exporter in late 2018.
Egypt exported 9.45 million cubic meters of liquid natural gas in the first seven months of 2022, up
44% from a year earlier, according to Refinitiv data.

Germany: RWE to burn more coal as Russian gas supplies dwindle
CNBC - Anmar Frangoul + NewBase
The chief financial officer of German energy firm RWE told CNBC Thursday that it will burn more
coal in the short term — but insists its plans to be carbon neutral in the future remain in place.
Michael Muller’s comments come as European countries scramble to shore up energy supplies, as
the war in Ukraine continues.
Russia was the biggest supplier of both petroleum oils and natural gas to the EU last year, according
to Eurostat. It has significantly reduced flows of natural gas to Europe after Western nations
imposed sanctions on the Kremlin as a result of its unprovoked invasion of Ukraine.
Germany — Europe’s largest economy — has decided to recommission some of its coal-fired power
plants in order to compensate for its lack of Russian gas.
“RWE is actively supporting the German government, or European governments, in managing the
energy crisis,” Muller told CNBC’s Joumanna Bercetche. “So we’re also bringing back additional
coal capacity to manage that situation.”
This plan will involve three of RWE’s lignite-fired power stations being brought back to the grid from
the start of October.
RWE says lignite, also known as brown coal and considered particularly bad for the
environment, “remains a reliable partner to this day.” It adds that RWE Power — which focuses on
lignite and nuclear power generation — extracts millions of metric tons of coal each year.
All of the above represents a hurdle for the Essen-headquartered business, which has said it wants
to be carbon-neutral by the year 2040.
A fossil fuel, coal has a substantial effect on the environment and Greenpeace has described it as
“the dirtiest, most polluting way of producing energy.” Coal combustion produces a slew of

potentially dangerous emissions, including carbon dioxide, sulfur dioxide, particulates and nitrogen
oxides.
“What is currently happening is … hopefully a short term issue where we need to find the security
of supply,” RWE’s Müller said.
“And that’s why, just from a corporate citizen’s perspective, we feel it is our duty to support the
German government in bringing back capacity in the short term — but to be very clear, it doesn’t
change our strategy,” he added.
“So while [in the] short term we have to burn additional coal, it needs to be clear that there needs to
be an acceleration of building out renewables so that we still meet ... targets in the medium and
long-term.”
On Thursday, RWE reported earnings for the first half of 2022, with adjusted net income coming in
at 1.6 billion euros (around $1.66 billion), compared to 870 million euros in the first half of 2021.
The company said it had invested approximately 2 billion euros in expanding its green portfolio in
the first half of 2022. “Total investments will come to more than 5 billion [euros] by the end of 2022,”
it added.
Electricity generation from renewables was around 20% higher in this period compared to the first
half of 2021, it said, citing improved wind conditions and increased capacity.

U.S Utility-scale solar projects report delays
U.S. Energy Information Administration, Preliminary Monthly Electric Generator Inventory
Power plant developers plan to install 17.8 gigawatts (GW) of utility-scale solar photovoltaic (PV)
generating capacity in 2022, according to our June 2022 Preliminary Monthly Electric Generator
Inventory.
Over the first six months of 2022, 4.2 GW of that capacity came online, less than half of what the
industry had planned to install in those months. From January through June 2022, about 20% of
planned solar photovoltaic capacity was delayed.
Our preliminary data from January through June 2022 show that PV solar installations were delayed
by an average of 4.4 GW each month, compared with average monthly delays of 2.6 GW during the
same period last year. In most cases, reported delays are for six months or less.
Various factors could cause delays, including broad economic factors, such as supply chain
constraints, labor shortages, and high prices of components, and factors specific to electric
generator projects, such as obtaining permits or testing equipment.
In February, the United States extended tariffs on imported crystalline silicon solar products from
China, which raised the tariff-rate quota from 2.5 GW to 5.0 GW and excluded bifacial panels from
the extension of duties.
In April, the U.S. Department of Commerce announced an anti-dumping circumvention
investigation of solar cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam,
countries that allegedly use parts made in China that otherwise would be subject to tariffs.

In June, the President took executive action to advance the deployment of solar in the United States.
He authorized the easing of import duties for a 24-month period for solar cells and modules imported
from the countries under investigation and invoked the Defense Production Act to expand domestic
production of solar modules. Any determination that the Department of Commerce reaches in its
investigation will apply after this 24-month period ends.
In our monthly survey, we ask respondents who plan to bring generators online in the near future
which stage their projects are in: testing, construction, permitting, or planning. Most of the projects
that will come online in the next 18 months are under construction.
About 1.9 GW of solar capacity installations are projects under construction that have been delayed
but are still scheduled to come online in 2022; another 1.7 GW under construction have been
delayed to 2023.

NewBase August 12 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls 2% on expectations that U.S. Gulf supply disruption will ease
Oil prices plunged around 2% on Friday, on expectations that supply disruptions in the U.S. Gulf of
Mexico would be short-term, while recession fears clouded the demand outlook.
Futures, however, were still on track for a weekly gain.
Brent crude futures fell $1.62, or 1.63%, to $97.98 a barrel by 18:35 BST , while U.S. West Texas
Intermediate (WTI) crude fell $2.06, or 2.18%, to $92.28 a barrel. Both contracts gained more than
2% on Thursday.
"We are pulling back a little bit after the big run up yesterday," said Phil Flynn, an analyst at Price
Futures group.
Oil price special
coverage
 Repair to pipe that shut U.S. offshore output due by end of day
 For the week, Brent set to rise 3%, WTI up 3.7%
 Contradicting IEA and OPEC demand outlooks
 U.S. oil rig count rises three to 601 this week -Baker Hughes

Brent was on track for a 3.5% gain this week after last week's 14% tumble on fears that rising
inflation and interest rates will hit economic growth and demand for fuel. WTI was on course for a
3.7% gain.
Crews were expected to replace a damaged oil pipeline piece by the end of the day on Friday, a
Louisiana port official said, allowing for the resumption of production at seven offshore U.S. Gulf of
Mexico oil platforms.
On Thursday, top U.S. Gulf of Mexico oil producer Shell (SHEL.L) said it halted production at three
deepwater platforms in the region. The three platforms are designed to produce up to 410,000
barrels of oil per day combined.
The market also absorbed contrasting demand views from the Organization of the Petroleum
Exporting Countries (OPEC) and the International Energy Agency (IEA).
"We are seeing an economic slowdown, but its unclear if it's as big a slowdown as some of the
recent outlooks have been predicting," said Ole Hansen, head of commodity strategy at Saxo Bank.
"The demand will ebb and flow, but supply is still the main concern."
European sanctions on Russian oil are due to tighten later this year while a six-month coordinated
energy release agreed by the United States and other developed economies is due to run its course
by the end of the year.
On Thursday OPEC cut its forecast for growth in world oil demand in 2022 by 260,000 barrels per
day (bpd). It now expects demand to rise by 3.1 million bpd this year.
The IEA, meanwhile, raised its demand growth forecast to 2.1 million bpd, citing gas-to-oil switching
in power generation
The IEA also raised its outlook for Russian oil supply by 500,000 bpd for the second half of 2022
but said OPEC would struggle to boost production.
In the United States, import prices fell for the first time in seven months in July, helped by a strong
dollar and lower fuel and nonfuel costs, while consumers' one-year inflation outlook ebbed in
August, the latest signs that price pressures may have peaked. read more
U.S. oil rigs rose three to 601 this week, energy services firm Baker Hughes Co (BKR.O) said. The
rig count, an indicator of future output, has been slow to grow with oil production only seen
recovering to pre-pandemic levels next year.

Asian Gas Prices Rally on Rush by Japan to Secure Winter Supply
Japan, one of the world’s top buyers of liquefied natural gas, is rushing to secure supply for winter,
exacerbating a global shortage and driving prices of the super-chilled fuel higher.
The Asian benchmark spot price has jumped this week, although is still almost 70% off the record
set in early March, when Russia’s invasion of Ukraine upended markets. Several Japanese utilities
accelerated discussions with suppliers in the past week to purchase additional shipments for winter,
according to traders with knowledge of the matter.
Supply disruptions from Russia to the US have importers worried that there won’t be enough natural
gas for everyone when demand peaks in the northern hemisphere winter. That’s intensified
competition between Asia and Europe for LNG shipments, sending spot prices in both regions to
unprecedented heights for this time of year.
The two largest LNG importing companies -- Korea Gas Corp. and Japan’s Jera Co. -- are both in
the process of buying more cargoes for winter. That prompted smaller Japanese utilities to dive into
the spot market to also secure shipments while supply is still available, traders said.
The Japanese government has been urging the nation’s utilities to stock up inventories before winter
amid an outlook for tight power supply, according to the traders.
The Japan-Korea Marker, the spot LNG benchmark for North Asia, surged 9% to $50.63 per million
British thermal units on Thursday, the highest since July 27, according to S&P Global.
 BP was allocated an extra LNG cargo for Oct. 7 loading from the NWS export
facility in Australia, said traders
 The so-called “upside cargo” was awarded to BP this week
 Oman sold an LNG cargo scheduled to load in August

NewBase Specual Coverage
The Energy world –August -12 -2022
CLEAN ENERGY
Middle East: Drop or Develop Arabian Supergiant Oilfields
During the Crossover to Net Zero World? The Unusual Case of Iraq
MUHAMMAD W. IBRAHIM, Target Exploration, London, UK.
Impacts of Paris Accord and Covid cycles on Iraqi oil fields development
On the 12th of December 2015, the legally binding international was adopted by 196 parties and
entered into force on the 4th of November 2016. Added to undiscovered oil and gas reserves, Iraq
and the MENA region sits on enormous renewable solar, wind, hydro, H2 and geothermal energies
potentials, however following the 2015 Paris Treaty, Iraq and OAPEC member kept doing business
as usual plus an attention to the mainly neglected gas fields.
Iraq fast tracked the development of Kor Mor -its’ first free gas fields, Arabian Aramco and Kuwait
Oil Company announced new deep oil, gas and condensates discoveries During the first and second
peaks of Covid-19 Pandemic in 2020.
On the other side, international oil companies (IOCs) decided to U-turn on their new E&P
investments and commitments in late 2016 and started to drop their lucrative DPSA and EPSA new-
ventures in Iraq ever since 2017 and peaked in the summer of 2021 as inferred from the chronology
of the following sequence of events:
 On 13 September 2017, with many Arabian fields awaiting development (Figure 1), Royal
Dutch Shell declared it’s exiting its operatorship of Majnoon Supergiant Oil Field of South
Iraq in mid-2018.
 On 21 January 2020 BP pulled out of its DPSA contract of northern Iraq’s supergiant Kirkuk
Oil Field.
 On 20 July 2021, midday air temperature peaked to 70 Degrees Centigrade at 15:10 hr in an
oilfield location in Basra, southern Iraq.
 On 26 July 2021, Exxon-Mobil declared that it is exiting its lucrative development venture of
West Qurna-1 Supergiant Oilfield in Southern Iraq.
 On 4 August 2021, Lukoil announced its withdrawal from the supergiant West Qurna-2 Oil
Field in southern Iraq.
 The fallouts of the Russia-Ukraine War on Iraqi oil fields development?
 On 2 February 2022 Russian troops invaded Ukraine (a prospective member of NATO) in a
major escalation of the Russian-Ukraine War that started in February 2014. The latter
invasion was immediately followed by a halt of business with Russia (including imports of
Russian oil and gas) by the USA, members of NATO alliance and most members of the UN.
Re-evaluations
What started as a post-Paris Accord’s strategic U-terns on Iraqi oilfields development by the IOCs
(including Russians) got accelerated by the pandemic-induced global crude oil surplus and crash in

crude oil prices in 2020, and compounded by climatic increase in air temperatures, water shortage,
desertification, and frequent dangerous sand and dust storms (DSDSs) in MENA that led to a six
days blockage of Sues Canal in March 2021.
The factors used in estimating the global supply and demand for hydrocarbons before the 2nd of
February 2022 may be re-evaluated and the estimated crossover period (e.g. Lakin, 2021) must be
re-adjusted following the eruption of the 2022 Russia-Ukraine War.
Change of Plans
To deal with the rapidly evolving global climatic, pandemic, Russia-Ukraine War and climatic
changes the development of Renewable Energy Resources and decarbonisation of an irrefutably
changing global climates must be synchronised to offset an immediate fast-track development of
producing, discovered and dormant Arabian oil and gas fields by Arabian oil companies with or
without the participation of IOCs in order to compensate for years without Russian oil and gas on
top of the already boycotted Iranian oil and gas.
References
Lakin, M. 2021. The hard truth about realistic energy transition. GEOExPro, October 2021, P.13.
Figure 1. Undeveloped Gaza Marine Gas Fields, offshore Gaza, discovered by British Gas in 2000.

Figure 2. Free crude oil in pandemic-stranded tankers during April 2020.
Figure 3. An unpredicted dangerous sand and dust storm (DSDS) stranded the Ever- Given
giant cargo ship and blocked the Sues Canal for 6 days in March 2021.

NewBase Energy News 12 August 2022 - Issue No. 1538 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 August 12-2022 Energy News issue - 1538 by Khaled Al Awadi.pdf

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