New base 05 june 2018 energy news issue - 1177 by khaled al awadi

Copyright © 2018 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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NewBase Energy News 05 June 2018 - Issue No. 1177 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Bahrain to expedite new oil operations, evalution wells in Oct-18
Gulf News -Habib Toumi, Bureau Chief
Manama: International companies will be selected to partner with Bahrain for the oil production
phase in December 2019, Crown Prince Salman Bin Hamad Al Khalifa has said.
He said that in line with King Hamad Bin Eisa Al Khalifa’s directives to prioritise oil exploration,
operations should be expedited and the necessary frameworks be put in place to attract international
companies to partner with Bahrain on production activities.
A number of wells will be installed as part of a research and evaluation phase that will start in
October 2018 and will be completed in June 2019, he added. The research and evaluation phase
will include geological surveys to determine the recoverable quantities of oil.
Production of the recently discovered Khaleej Al Bahrain basin, anticipated to comprise 80 billion
barrels of oil in place, will begin within five years, Prince Salman, who is also Bahrain’s First Deputy
Prime Minister, said as he chaired the 20th meeting of the Higher Committee for Natural Resources
and Economic Security on Sunday evening.
Optimising international investment opportunities within Bahrain’s energy sector is highly significant
in generating positive returns and ensuring oil and gas activities continue to contribute to the
Kingdom’s development programme, he said.
The Khaleej Al Bahrain discovery will hold significant long-term benefits to the Kingdom’s economy
and its citizens and will reflect the central role that investment in downstream industries and
exploration is playing as part of the Kingdom’s diversification efforts.

Bahrain on April 1 announced the discovery of the largest tight (light crude) oil and deep gas
quantities in the Kingdom’s history in the Khaleej Al Bahrain Basin, located off the west coast of the
country.
“The find represents the largest discovery of oil in the Kingdom since 1932, when extraction started
on Bahrain’s first oil well within the Bahrain Oil Field. The new resource is forecast to contain highly
significant quantities of tight oil and deep gas, understood to dwarf Bahrain’s current reserves,”
Prince Salman was quoted as saying by Bahrain News Agency.
Next steps
The Minister said that two appraisal wells had been agreed for 2018, which will be operated by
Halliburton. No mention has been made of blanket 3D seismic coverage. Operating company Bapco
is already in discussions with IOCs and major service companies on partnerships to exploit the
resources. To date, worldwide, no unconventional resources have been exploited offshore.
However, an optimistic production start date of 2022-2023 has been touted. The Minister added that
one could expect the resources to support oil production of 200,000 b/d and gas of 1 Bcf/d.
Bid Round
Earlier, Bapco announced an acreage offer for 2017-2018, offering four offshore areas CA 1, CA 2, CA 3
and CA 4 for Joint Study Agreements. The extent of the resource play coincides roughly with CA 2 (2228 sq
km) to the west of the island and CA 4 (1478 sq km) to the south of the island. In CA 3, 9 wells have been
drilled, with 3 TDing in the Khuff; in CA 4 (described as “the unconventional hot-spot”), seven wells have
been drilled to date with oil shows, with one penetrating the Khuff.

UAE: Dubai's Careem launches first electric car option
Business Arabia - Sam Bridge
Available to book from Monday, customers will be able opt for an electric vehicle when they are
booking a scheduled journey anywhere in Dubai Careem, the Dubai-baseds ride hailing app, has
announced the introduction of an electric car type option onto the fleet.
Available to book from Monday, customers will be able opt for an electric vehicle when they are
booking a scheduled journey anywhere in Dubai.
The fleet will be made up of turquoise, Model S Tesla cars and fares will be priced in line with the
Careem Business rates, with a starting minimum fare of AED60, the company said in a statement.
The new car type is in partnership with ION, a newly launched joint venture between Crescent
Enterprises, the UAE-based diversified conglomerate, and Bee'ah, the environmental management
company.
ION aims to accelerate the achievement of a zero-emission transport system in the UAE, and across
the wider region, by driving a more sustainable approach to commercial transportation, Careem
said.
Clemence Dutertre, general manager of Careem in the UAE, said: “Bringing customers the choice
to book a more environmentally friendly option is something we feel very strongly about. Careem
Electric also offers a top of the range, safe and fun car which works both as a luxury option whilst
also being perfect for family and group outings. We think our customers are going to get very excited
about this new option on the app.”
Tesla in Dubai
Tesla electric vehicles are known for their iconic falcon wing doors, a panoramic windshield and
seven-seat configuration, offering unprecedented convenience and manoeuvrability.
“The launch of Tesla electric cars is part of Dubai’s push towards the Green Economy for
Sustainable Development Initiative, saving about Dh4.3 million of fuel consumption,” added Sharif.
With several self-driving components, the launch of Tesla vehicles is a mini step in realising Dubai’s
declared target of converting 25 per cent of the city’s trips into driverless journeys by 2030.
“Both S and X models benefit from free over-the-air software updates. More features will be added
to these vehicles with time. Tesla has designed a unique package of power-generating and storage
products including Powerwall and Powerpack Batteries. All these components will have a positive
impact on electric vehicles, renewable energy and batteries,” he said.

Morocco: Sound Energy announces results of final CPR for the
A1 Prospect in the Company's Tendrara-Lakbir permit… Sound Energy
Sound Energy, the Moroccan focused upstream gas company, has confirmed that it has now
received the final Competent Person's Report ('CPR') in relation to the A1 prospect in the
Company's Tendrara-Lakbir permit, Eastern Morocco. The CPR is entirely consistent with, and
confirms, the preliminary CPR results previously announced by the Company on 26 April 2018.
The CPR was conducted by RPS Energy Consultants and is the first in a series of CPRs planned
across the Company's Eastern Morocco acreage following the acquisition of new 2D seismic. This
CPR is compliant with the latest SPE Petroleum Resources Management System ('PRMS')
approved definitions of Reserves and Resources.
The table below summarises the final results of the CPR evaluated by RPS for the A1 prospect:
The first well on the prospect (TE-9), is intended to drill both the TAGI as the primary target and
potentially similar scale volumes in the underlying Palaeozoic as the secondary target. The scope
of the CPR was designed to only cover the Triassic TAGI reservoir and any future volume estimates
for the deeper Palaeozoic prospectivity will be the subject of separate review; any identified volumes
will need to be added to the Triassic TAGI reservoir volumes described above.
The Company plans to further de-risk the prospect through geophysical and geological analysis
utilising data acquired from additional seismic processing. Following sufficient de-risking through
this analytical process, the Company intends to secure partner approvals and then commence
ground works.
James Parsons, Sound Energy's CEO, commented:
'I am delighted to report that Sound Energy is now poised to enter a period of intensive newsflow as we de-
risk the development of our existing discovery and finalise preparations for the exploration drill programme.
Success at TE-9, our planned first well, could unlock significant value for Sound and our partners, reduce
the risk on nearby leads, and increase further our overall confidence in the broader TAGI Structural Play
trend.'

Egypt: SDX Energy spuds SD-4X appraisal well, South Disouq
Source: SDX Energy
SDX Energy, the North Africa focused oil and gas company, has announced that it has spud its SD-
4X appraisal well at South Disouq, Egypt (SDX 55% working interest and operator).
The SD-4X well is the first of two planned appraisal wells in the Company's 2018 drilling campaign
at South Disouq. The well is anticipated to take up to 30 days to drill and if successful, will be
completed, flow tested and connected to the infrastructure being developed at the SD-1X discovery
location.
South Disouq
The South Disouq concession consists of a 1275 km2 acreage position in the Nile Delta. Estimated to contain
1.3 TCF of resource potential (P10). The concession is located within the prolific Abu Madi – Baltim trend
which to date consists of 10 discoveries containing 6.3 TCF of gas and 100 MMBO of liquids. The company
has an operated 55% equity position after it completed a farm-out of the acreage to IPR in February of 2015
for the remaining 45%.
In Q2 2017 the Company drilled the SD-1X discovery well, conducted well test operations and successfully
flowed natural gas at a stabilised rate of 25.8 Mmcf/d on a 48/64" choke. Work plans for 2018 are centred
around bringing the field into production during Q1 2018 by way of an early production system (EPS). Up to
four wells are planned for 2018, two exploration wells (lbn Yunus-1X and Kelvin-1X) and two development
wells (SD-4X and SD-3X). Ibn Yunus-1X and Kelvin-1X are targeting up to 150bcf of conventional natural
gas in separate structures from the SD-1X discovery.
If successful, volumes will be tied back to the SD-1X processing facility. First gas is targeted in the first half of
2018, at an initial gross plateau production rate of approximately 50 MMscf/d of conventional natural gas
expected from the three development wells in the SD-1X discovery structure. The gas price is still under
negotiation.

Oman: EPC work to start on Duqm Refinery project
TradeArabia News Service
Duqm Refinery, a joint venture between Oman Oil Company and Kuwait Petroleum International,
has issued a “notice to proceed” to the contractors of the three engineering, procurement and
construction (EPC) packages worth $5.75 billion.
The move, which comes following the groundbreaking ceremony held in April, signifies start of the
project schedule of the construction work of the 230,000 bpd refinery project, said a statement from
the company.
The project is expected to complete and be ready for startup 42 months from the issue of notice to
proceed. Initially, contractors will allocate resources to complete detailed engineering design work
at their home offices where they will be joined by staff from Duqm Refinery, it added.
Jacobus Nieuwenhuijze, the project director of Duqm Refinery, said: "This truly is an exciting and
important milestone for all of us, since it not only signifies start of construction work but also
culminates the efforts put in by stakeholders to have the project reach this stage."
Nieuwenhuijze pointed out that the contractors and the project team have prepared themselves
thoroughly to ensure a solid start of the project activities. The commencement of the construction
work of this key project will also trigger other direct and indirect benefits to Duqm and the region, he
added.
Duqm Refinery’s scope of work is divided into three separate EPC packages.

The scope of work in the Package One, being developed by a joint venture of Técnicas Reunidas
S.A. and Daewoo Engineering & Construction Company, includes the process units of the refinery,
while the second one, being developed by joint venture of Petrofac International Limited and
Samsung Engineering, consists of the utilities and offsite facilities.
The third package is being handled by a joint venture comprising Saipem SpA and CB&I, and the
scope of work includes the product export terminal at Duqm Port, the Duqm Refinery dedicated
crude storage tanks in Ras Markaz and the 80 km interconnecting pipeline from these crude tanks
to Duqm Refinery.-

Saudi about-face on production lays the ground for discord in Vienna.
Bloomberg - By Julian Lee
You know how, a few years after a Hollywood blockbuster gets released, it seems to get a remake?
Well, it looks Saudi-Arabia’s oil minister Khalid Al-Falih is setting himself up to reboot his
predecessor's 2011 hit – "OPEC's Worst Meeting."
His starting point is an about face. Al-Falih had said as recently as April that the group’s output cuts
should be extended and the goalposts moved. But in what looks like a response to President Donald
Trump's April 20 tweet attacking the group, Saudi Arabia has gone from advocating higher prices to
trying to stop the rally at $80 a barrel.
Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully
loaded ships at sea, Oil prices are artificially Very High! No good and will not be accepted!
Al-Falih must now convince fellow OPEC ministers at their next meeting, on June 22, that they need
to raise production.
The parallels with seven years ago are clear. Then, OPEC had an output ceiling that had been
unchanged for two and a half years and the kingdom saw clear signs that the market was
overheating and required more oil from the producer group. Members such as Iran and Venezuela,
who couldn't boost their own production either as a result of capacity constraints or sanctions,
rejected the Saudi proposal to raise output.
Since OPEC acts by consensus, this doomed the meeting to failure. The group could not even agree
on the text of a closing press release and the Saudi oil minister called it "one of the worst meetings"
he had attended in almost 16 years in the job.
Roll forward to the present day and we have a very similar dynamic. Saudi Arabia wants to boost
supply – although it is not yet clear by how much. Iran, facing renewed sanctions on its oil exports,
is looking at a drop in output that could be at least as big as the 1 million to 1.2 million barrels a day
it suffered shortly after the 2011 meeting.
Taking a Bite
Previous sanctions cut Iran's oil output by over a million barrels a day. Expect no less this time.
Source: Bloomberg

Venezuela, too, has nothing to gain by agreeing to raise production. Its oil industry is collapsing
under economic and political strains. Output has already dropped by 520,000 barrels a day from the
October 2016 baseline for cuts, against a promised reduction of just 95,000. It’s set to fall further.
On the Skids
Venezuela's oil output will likely fall further below its target in the second half of the year
Source: Bloomberg
So not only will Saudi Arabia be asking Iran and Venezuela to go against their own immediate
economic interests by backing a policy change that will lower oil prices, it will be asking them to do
so at the behest of President Trump. That's the same President Trump who the leaders of both
countries see as trying to topple them.
Al-Falih met with counterparts from other Gulf Arab nations in Kuwait Saturday in an attempt to bring
them onside with the new plan. As they are among the few countries in the production-cutting group
with the capacity to raise output, that is the easy part of the deal. Selling it to the rest will be much
more difficult.
The drop in Venezuelan supply has taken the OPEC+ output cuts well beyond their agreed level
and undoubtedly helped to accelerate the depletion of excess inventories. Easing the restrictions
now may well amount to no more than bringing the cuts back into line with what the group agreed
in 2016. But that alone would add more than 800,000 barrels a day to supply.
Overdoing It
Collapsing output in Venezuela and Angola has pushed OPEC+ cuts well beyond their target.
Source: Bloomberg

A pullback might be what it takes to keep Russia working with OPEC, placating a Russian oil sector
that wants to raise production. But it risks undermining OPEC's statue, which includes the following
article:
The principal aim of the Organization shall be the coordination and unification of the petroleum
policies of Member Countries and the determination of the best means for safeguarding their
interests, individually and collectively.
There are plenty of members in addition to Venezuela and Iran who are unable to raise output, and
who could argue that easing production restrictions fails to safeguard their interests.
In 2011, a group of countries blocked a Saudi attempt to raise the group's output ceiling. The
kingdom continued to pump more anyway, boosting its output by 1.6 million barrels a day over the
first eight months of 2011.
At their next gathering individual output targets were abandoned. Don't be surprised to see Saudi
Arabia and Russia following their own path if they fail to carry the rest of the OPEC+ group with
them.
Going it Alone
Saudi Arabia boosted oil output against the wishes of its OPEC partners in 2011 and again in 2015
Source: Bloomberg
The next OPEC meeting is preceded by the two-day OPEC Seminar, a showcase event for the
group that attracts the CEOs of most of the world's biggest oil companies. The group likes to use
this jamboree as a chance to demonstrate its unity.
This time around speculation in the grand palaces of Vienna will be whether OPEC is about to be
superseded by SaRuPEC - the Saudi-Russia Petroleum Exporting Combine. Now that would be a
real twist to the remake.

China to take aim at diesel vehicles in new smog push
Reuters + NewBase
China will crack down further on diesel consumption and support using rail for freight deliveries in
its ongoing fight against pollution, the official China Daily said on Monday, citing the environment
ministry.
Diesel trucks accounted for just 7.8 percent of China’s total vehicles, but contributed as much as
57.3 percent of the country’s total nitrogen oxide emissions and more than three quarters of airborne
particulate matter, according to data from the Ministry of Ecology and Environment (MEE).
The crackdown will strengthen scrutiny on fuel and engine quality and restrict car freight, the China
Daily said, quoting ministry officials. Total car ownership reached 310 million last year, up 5.1
percent compared to 2016, with diesel-fueled vehicles accounting for 9.4 percent of the total, the
MEE said in a report on vehicle pollution published last Friday.
It said total pollution discharges from vehicles stood at 43.6 million tonnes in 2017, down 2.5 percent
on the year, with the bulk of the emissions consisting of carbon monoxide. It also said attention
needed to be paid to the 768 gigawatts of diesel-fired agricultural equipment across the country.
In a separate statement, the ministry warned that vehicle emissions like nitrogen oxides had fallen
much more slowly than others, and it promised to speed up the implementation of pollution
prevention and control measures for diesel trucks.
As part of its war on pollution, China has taken more than 20 million outdated vehicles off the roads
over the last five years, and the country routinely restricts traffic during smog build-ups.
It has also taken action to limit road deliveries of coal in key regions like Beijing-Tianjin-Hebei and
the Yangtze river delta. But experts have urged the country to adopt tougher measures against
vehicle pollution, including congestion charges, as they bid to cut air pollution concentrations further.

In the past five years, China's central government alone has invested over 60 billion yuan (9.47
billion U.S. dollars) into air pollution treatment, Li Ganjie, minister of environmental protection, said
in a press briefing Saturday.
The level of pollutant PM2.5 in Beijing drop to 34 micrograms per cubic meter in January, the lowest
monthly level since 2013, when China launched a national air pollution control campaign. Across
the country, the average density of PM2.5 in 338 cities was 43 micrograms per cubic meters in
2017, falling 6.5 percent year on year.
After decades of rapid development that left the country with thick, grey haze, China declared a war
against pollution, with intensified efforts to crack down on polluters, and incentives for clean energy
use.
"China is winning at record pace," Michael Greenstone, a professor at the University of Chicago,
wrote in a recent article published in the New York Times.
According to his studies, residents in China could see their lifespans extend by 2.4 years on average
if the declines in air pollution persisted. Other major global news organizations also increased their
coverage of China's pollution control success.
"Traditionally, winter is Beijing's smoggiest season, as coal burning ramps up to keep millions of
residents warm. But the skies over China's capital have been almost inconceivably clear of late,
thanks partly to a government crackdown on the use of the fossil fuel," the Guardian said in a recent
story.
To clear up its air, China has been encouraging the use of natural gas instead of coal for winter
heating, subsidizing new energy vehicles to curb emissions, and shutting down ineffective factories
that produce the most pollution.
Authorities also demonstrated "zero tolerance" for polluters, launching a pollution control campaign
targeting about 62,000 irregular enterprises in the Beijing-Tianjin-Hebei region and surrounding
cities last year.

Thousands of officials have been held accountable for environmental damage, following inspections
by central authorities. While the efforts have paid off, experts said the country needs long-term
commitment to further clear up the air.
"Smog may be on the retreat at the moment but remains a problem that cannot be ignored, not only
in China but in many other countries," said Zhang Xingying, a researcher at the China
Meteorological Administration.
According to Zhang, the war is far from over and China should use its experiences to help other
countries fight pollution. China has started to provide other countries with pollutant monitoring
services, helping them establish their own remote sensing networks.
In the meantime, continued efforts will be made domestically to realize its vision of a "Beautiful
China," where the skies are blue, the land is green, and the waters are clear, according to a
government work report released earlier this month.
China will cut sulfur dioxide and nitrogen oxide emissions by 3 percent and achieve a continuous
decline in PM2.5 density in key areas this year, according to the report. The country is currently
working on a three-year plan to fight for blue sky, with more ambitious goals to be set, Minister of
Environmental Protection Li told the press briefing Saturday.
The target for percentage decline of PM2.5 could be set higher as the country already completed
part of the tasks ahead of schedule, according to Li.

NewBase June 05 - 2018 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil falls 2 percent, U.S. crude hits lowest since early April
Reuters+ NewBase + Bloomberg
Oil prices fell about 2 percent on Monday, with U.S. crude touching its lowest level in nearly two
months, breaking below technical support levels as investors kept selling amid growing U.S.
production, possible global supply growth and nagging trade tensions.
Brent crude futures lost $1.50 a barrel, or 2 percent, to settle at $75.29 a barrel. U.S. crude ended
$1.06, or 1.6 percent, lower at $64.75 a barrel, after earlier touching $64.57, its lowest since April 10.
“We are breaking key levels of support now,” said Phillip Streible, analyst at RJO Futures in Chicago.
“Once we started taking out $65.50 or so, it really started to accelerate. People are not really
believing that the rally will continue,” he said.
Both benchmarks were pressured by the expectation that the Organization of the Petroleum
Exporting Countries (OPEC), which has led output cuts of about 1.8 million barrels per day (bpd)
since January 2017, would soon boost output.
Oil price special
coverage

OPEC ministers from Saudi Arabia, the United Arab Emirates, Kuwait and Algeria, along with their
counterpart from non-OPEC Oman, met unofficially in Kuwait on Saturday.
“It appears that some sellers may have delayed action ahead of the weekend and re-entered the
short side after a meeting between the Saudis and the other Arab producers failed to offer additional
insight,” Jim Ritterbusch, president of Ritterbusch and Associates said in a note.
OPEC meets formally on June 22. It is expected to agree to raise output to cool the market amid
worries over Iranian and Venezuelan supply and after Washington raised concerns that the oil rally
was going too far, OPEC sources familiar with the discussions told Reuters last month.
U.S. crude production climbed in March to 10.47 million bpd, a monthly record, the Energy
Information Administration said last week.
“There’s been lot of talk about U.S. production continuing to rise. And it feels like once we hit
Memorial Day, we hit a seasonal peak” for prices, which “ran up until the start of the summer season,
and then hit a summer doldrums,” said RJO Futures’ Streible.
Last week, the week after Memorial Day, the U.S. crude contract lost about 3 percent after a decline
of nearly 5 percent the previous week.
Data from market intelligence firm Genscape showed that between May 29 and June 1, crude
inventories at the Cushing, Oklahoma, storage hub and delivery point for U.S. crude futures rose
210,046 barrels, a potentially bearish signal, traders who saw the data said.
“The trade tariffs between EU, Mexico, and Canada and the friction with China are also weighing
on crude oil,” said Bill Baruch, president of Blue Line Futures in Chicago.
Mexico will join the European Union in seeking World Trade Organization involvement over U.S.
tariffs on steel and aluminum, its economy ministry said.

NewBase Special Coverage
News Agencies News Release June 03-2018
Costs of battery storage technologies and market trends
Source: U.S. Energy Information Administration, Form EIA-860, Annual Electric Generator Report
Capital costs for large-scale battery storage systems installed across the United States differ
depending on technical characteristics. Systems are generally designed to provide either greater
power capacity (a battery’s maximum instantaneous power output) or greater energy capacity (the
total amount of electricity that can be stored or discharged by a battery system).
The cost of a battery system can be expressed in terms of power capacity costs (dollars spent per
unit of maximum instantaneous power output as expressed in dollars per kilowatt) or energy
capacity costs (dollars spent per unit of total energy stored as expressed in dollars per kilowatthour),
depending on which attribute is prioritized.
Power-oriented systems are shorter duration systems, meaning they are typically designed to
generate large amounts of instantaneous power output but cannot sustain that output for very long.
These systems have lower costs per kilowatt and higher costs per kilowatthour. For example, a $12
million battery system with a nameplate power capacity of 10 megawatts and nameplate energy

capacity of 4 megawatthours would have relatively low power costs ($1,200 per kilowatt) and
relatively high energy costs ($3,000 per kilowatthour).
Power-oriented systems are designed to provide grid reliability services such as frequency
regulation, which requires large shifts in the power capacity in quick, sub-hourly intervals. Power-
oriented battery systems are more prevalent in the PJM Interconnection than other regions and
actively participate in PJM’s ancillary services market.
Energy-oriented systems are designed for use for longer durations, meaning they have more energy
capacity relative to their power capacity. As a result, these systems have higher average costs per
kilowatt and lower costs per kilowatthour. For example, an $8 million battery system with a
nameplate power capacity of 4 megawatts and nameplate energy capacity of 10 megawatthours
would have relatively high power costs ($2,000 per kilowatt) and relatively low energy costs ($800
per kilowatthour).
Energy-oriented battery systems are used to provide services such as peak load shaving, which is
the act of delivering power during periods of the highest electricity demand, typically over the course
of one or more hours. Energy-oriented battery systems are relatively more popular in the California
Independent System Operator (CAISO) area.
The nameplate duration of the battery storage system is the ratio of nameplate energy capacity to
nameplate power capacity. For example, a system with a 6-megawatt power capacity and a 24-
megawatthour energy capacity has a nameplate duration of 4 hours.
 Short-duration batteries—which are power oriented—have durations of less than 30 minutes.
 Medium-duration battery storage systems have nameplate durations ranging between 30
minutes and 2 hours.
 Long-duration battery storage systems—which are energy oriented—have more than 2
hours of nameplate duration.
EIA’s recently released U.S. Battery Storage Market Trends report explores trends in U.S. battery storage capacity additions and
describes the current state of the market, including information on applications and cost, as well as market and policy drivers.

U.S. Battery Storage Market Trends
This report explores trends in U.S. battery storage capacity additions and describes the current state
of the market, including information on applications, cost, and market and policy drivers. There are
a number of key takeaways:
 At the end of 2017, 708 megawatts (MW) of power capacity,[1] representing 867
megawatthours (MWh) of energy capacity,[2] of large-scale[3] battery storage capacity was
in operation.
 Over 80% of U.S. large-scale battery storage power capacity is currently provided by
batteries based on lithium-ion chemistries.
 About 90% of large-scale battery storage in the United States is installed in regions covered
by five of the seven organized independent system operators (ISOs) or regional transmission
organizations (RTOs) and in Alaska and Hawaii (AK/HI).
Notes: 2017 energy capacity data for large-scale battery storage are based on preliminary estimates; energy capacity annual
additions do not include 26 MW of since-retired batteries because energy capacity is not reported for retired generators Sources:
U.S. Energy Information Administration, Form EIA-860M, Preliminary Monthly Electric Generator Inventory; U.S. Energy Information
Administration, Form EIA-860, Annual Electric Generator Report.
 Nearly 40% of existing large-scale battery storage power capacity (and 31% of energy
capacity) lies in the Pennsylvania-New Jersey-Maryland Interconnection (PJM), which runs
energy and capacity markets and the transmission grid in 13 eastern states and the District
of Columbia.
 In 2012, PJM created a new frequency regulation market product for fast-responding
resources, the conditions of which were favorable for battery storage. However, recent
changes in PJM’s market rules have slowed battery installations in the region.
 Most existing large-scale battery storage power capacity in PJM is owned by independent
power producers providing power-oriented frequency regulation services.

 Installations in California Independent System Operator (CAISO) territory accounted for 18%
of existing U.S. large-scale battery storage power capacity in 2017, but they accounted for
44% of existing energy capacity.
 In 2013, the California Public Utility Commission (CPUC) implemented Assembly Bill 2514
by setting a mandate for the state’s investor-owned utilities to procure 1,325 MW of energy
storage by 2020.
 Large-scale installations in California tend to be energy-oriented to provide energy-oriented
services and tend to serve a wider array of applications than systems in PJM.
 In addition, nearly 90% of reported small-scale[4] storage power capacity in the United States
was reported by four California utilities.
The design and application of utility-scale battery storage varies by region
About two-thirds of utility-scale battery storage power capacity installed in 2016 in the United States
is located in two electricity markets: the California Independent System Operator (CAISO), which
covers much of California, and the PJM Interconnection, which covers all or parts of 13 eastern
states and the District of Columbia. Utility-scale battery systems have been installed in these
markets for different reasons. Utility-scale battery storage systems in California tend to serve
energy-oriented applications, with smaller power capacities but longer discharge durations.
Conversely, systems in PJM tend to serve power-oriented applications, with larger power capacities
but shorter discharge durations.
Unlike most electricity generators, which can be characterized by their power capacity, batteries are
characterized by two metrics: power capacity and energy capacity. Power capacity, measured in megawatts
(MW), is the maximum instantaneous amount of power that can be produced on a continuous basis. Energy
capacity, measured in megawatthours (MWh), is the total amount of energy that can be stored or discharged
by the battery.
The PJM Interconnection currently has the most utility-scale battery storage capacity in both power and
energy terms. In 2012, PJM’s ancillary services market introduced a frequency regulation product designed
to compensate generation resources that can quickly adjust power output but are limited by the time they
can sustain that output.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 28 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE operations
base , Most of the experience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network Facility & gas
compressor stations . Through the years, he has developed great experiences
in the designing & constructing of gas pipelines, gas metering & regulating
stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation, operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase June 2018 K. Al Awadi

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Call us for details khdmohd@hawkenergy.net
Your Energy Consultant for the GCC area
Khaled Al Awadi

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New base 05 june 2018 energy news issue - 1177 by khaled al awadi