New base 07 november 2017 energy news issue 1097 by khaled al awadi

Copyright © 2015 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 07 November 2017 - Issue No. 1097 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: Adnoc says $3 billion Bond more than three times oversubscribed
The National + ( images by NewBase )
Adnoc's group chief executive Dr Sultan Al Jaber said this transaction enables the company for
the first time, to access the international debt capital markets. Antonie Robertson / The National
Abu Dhabi National Oil Company (Adnoc)'s US$3 billion international
bond, the first issued by the oil major and one of the Middle East's
largest ever non-sovereign bond offerings, was more than three times
oversubscribed, the company said on Monday.
The bond, issued by Adnoc subsidiary Abu Dhabi Crude Oil Pipeline
(Adcop), received more than $11bn in orders, driven by "strong
demand" from international and regional investors, Adnoc said in a statement.
The issuance marks the first time that Abu Dhabi’s oil major has tapped the international debt
markets, as it looks to new fundraising options to unlock value across infrastructure assets and
optimise its capital structure to fund new projects.
“The very attractive pricing and substantial international demand for this offering positively reflects
the UAE’s stable investment environment, as well as Adnoc's new and progressive approach to its
long-term financing strategy,” said Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc
group chief executive.
He added: “Importantly, this transaction enables Adnoc, for the first time, to access the
international debt capital markets – thus opening an increased range of highly compelling and
viable options for the long-term strategic financing of the ADNOC group.”
Arabian Gulf

The issuance also demonstrates the expansion of Adnoc's strategic partnership model announced
on July 10, when the company said it aimed to create new investment opportunities across all
areas of its business.
State-owned oil companies across the Middle East and North Africa are seeking to extract greater
value from existing assets in a persistently low oil price environment.
“The [issuance] represents an opportunity for institutional and infrastructure investors to partner
and invest alongside Adnoc in selected projects,” Mr Al Jaber said.
The bond offering consists of two senior secured bond tranches: an $837m, 12-year year tranche,
and a $2.2bn, 30-year fully amortising bond tranche, Adnoc said.
It said the bond was executed on “favourable” commercial terms with annual coupons of 3.65 per
cent and 4.6 per cent each. The bond was rated AA by Fitch and AA by S&P, in line with the rating
of Abu Dhabi sovereign bonds.
Proceeds from the issuance will be used by Adnoc to support its future growth and investment
plans, the company said.
First Abu Dhabi Bank, HSBC, JP Morgan and MUFG acted as global coordinators and joint
bookrunners, while BNP Paribas, Citigroup, Mizuho Securities, Société Générale and Standard
Chartered Bank were joint lead managers. Moelis & Company acted as financial adviser to Adnoc.
Adcop manages a 406-kilometre pipeline that carries Adnoc crude oil from Abu Dhabi to Fujairah's
oil export terminal to access international shipping routes.
Adnoc’s financing strategy is driven by Sultan al Jaber, the company’s group chief executive, who
took charge last year. “Adnoc is looking at funding for different projects and talks have just begun -
nothing has been finalised,” said a regional banker.
The company has not appointed banks yet to lead the planned loan transaction, but a Dubai-
based banker said “things will move quickly” and a mandate was likely to be awarded within the
next couple of weeks.
Adnoc is also working on an initial public offer of shares in its retail unit, Adnoc Distribution, which
could raise up to $2 billion, sources told Reuters last week.

Sudan in talks with Norway's Scatec Solar to build solar farm
Source: Reuters
Sudan is in talks with Norway’s Scatec Solar to build its largest solar power farm, investment
minister Mubarak Al-Fadil told Reuters, following the lifting of U.S. trade sanctions in October.
A Sudanese delegation led by Al-Fadil met with Scatec Solar executives last week during a
business summit in Oslo, where the potential for a solar farm with a minimum 400 megawatt (MW)
capacity was discussed, the minister said in an interview.
'We invited them to come to discuss a power-sharing agreement. We told them that we are not on
for small projects. They said their initial start could be 400 MW,' Al-Fadil said. Sudan’s power
production capacity, which is just above 3,000 megawatts (MW), is insufficient to satisfy the
country’s demand, reaching only about 40 percent of its population and the country wants to
produce more, said Al-Fadil.
'Given the growth on demand, we need at least 5,000 new megawatts to build in the country.
Renewable is preferable for us,' he said. If realised, a 400 MW solar farm could cost about $450
million and Sudan is prepared to hand Scatec Solar the power purchase agreement, hoping to
have the plant up and running within a year of striking a deal, he added.
Scatec Solar’s chief executive Raymond Carlsen declined to comment on the firm’s discussions
with Sudan. Last month, finance minister Othman Rukabi said Sudan’s economy was headed for
a gradual recovery after the U.S. lifted its 20-year-old economic sanctions, opening the way for
critical economic reforms and badly needed investment.
Sudan is one of Africa’s biggest but poorest countries, having been ravaged by a multi-year war
that ended in the south’s secession in 2011, which stripped the north of three quarters of its oil
resources. The country’s only sizeable renewable source of energy is hydropower, representing
more than half of Sudan’s power production, World Energy Council data shows.
Sudan is also looking to develop wind power, the minister said.
'We had Danish companies discussing wind before I came, I met them and they are coming with
Sudanese investors. They have the idea to start with 280 MW with wind,' he said.
Gas-fueled power is an alternative, the minister added, as Sudan strives to secure more electricity for its
agriculture and industry that aim to boost production and benefit from the, now sanctions-free, international
trade. 'The other choice for us is gas. We need finance. The need is high, we need to move fast because
this is affecting industry and agriculture. We need to bring new energy,' he said.

Pakistan: OMV starts production at the Sofiya gas and condensate
Source: OMV
•
Sofiya gas field was successfully put in production on October 27, 2017
• Sofiya-2 well adds 15 million standard cubic feet of gas per day and 1,400 barrels of
condensate per day to the production from the Sofiya D&P lease within the Mehar block,
operated by OMV Maurice Energy
The Sofiya gas and condensate field is located north of the Mehar gas field in theMehar block,
Pakistan. OMV Maurice Energy along with its Joint Venture Partners Ocean Pakistan Limited,
Government Holdings Private Limited and Zaver Petroleum Corporation (Pvt) Limited announced
the discovery of hydrocarbons from the Sofiya-2 well in August, 2013.
Development activities began in early 2017 after a development and production lease was
granted.
The Sofiya-2 well was successfully commissioned without any incident. With this, OMV and its
partners are increasing Mehar gas production by 15 mn scf/d and 1,400 bbl/d of condensate. The
gas and condensate from the field is being processed at OMV-operated Mehar gas facilities in
Shahdadkot, Sindh Province, Pakistan.

Tanzania: Aminex to Add compression facilities at Kiliwani North
Source: Aminex
Aminex reports that production from the Kiliwani North-1 well is currently fluctuating below 1
million standard cubic feet per day due to low reservoir pressure and inlet pressure restrictions of
the gas processing plant.
A review of the existing technical data leads the Company to conclude that Kiliwani North-1 is
currently draining a compartment within the greater Kiliwani North structure and is exhibiting slow
recharge across faults or via tortuous pathways.
The Company is in advanced discussions with the Tanzania Petroleum Development Corporation
(‘TPDC’) to lower inlet pressure at the gas processing plant and for the installation of compression
facilities so as to boost production rates.
Suitable compressors are currently being sourced. As previously advised to shareholders in the
2017 Half Year Report, there may eventually be an adjustment to the carrying value of the Kiliwani
North asset, which the Company does not at present expect to be material.
Following drilling of the successful Ntorya-2 appraisal well earlier this year in the Ntorya gas field,
which management estimates has a Pmean gas initially in place of 1.3 TCF, the Company has
commissioned a new independent report on all its Tanzanian resources which is due to be
completed in early 2018.

U.S. Shale Oil Trumps Risk of Supply Shock After Saudi Purge
Bloomberg -Sharon Cho
The oil market’s more concerned about U.S. shale supplies than any repercussions from
a crackdown that’s enveloped royals and billionaires in Saudi Arabia, OPEC’s biggest producer
and the world’s top crude exporter.
The Saturday purge that brings Saudi Crown Prince Mohammed bin Salman closer than ever to
power signals his nation will persist with a strategy he’s backed -- limit output as part of a deal with
other producers aimed at clearing a global glut.
Oil was already pricing in expectations for that policy to continue even before the crackdown,
meaning production from American shale fields remains the primary source of uncertainty for the
market.
Speculation that the Organization of Petroleum Exporting Countries and allies including Russia
will prolong the output-cut deal past its March expiry has sustained prices in a bull market, with
futures in London climbing about 12 percent over the past four weeks.
Prince Mohammed said last month he backed lengthening the curbs. Iraq and Kuwait have
also signaled support. After rising $1.45 a barrel on Friday, Brent crude’s up less than 40 cents
following the weekend Saudi purge.
“The purge in Saudi Arabia has been at the center of attention over the weekend but for investors
in the oil market, it has been an expected scenario since the current Crown Prince took over,” Will
Yun, a commodities analyst at Hyundai Futures Corp., said by phone from Seoul. “More
importantly, the market has its eyes set on the changes surrounding U.S. shale, such as the cut in
drilling, as well as the extension of OPEC output cuts.”
While the number of rigs drilling for crude in the U.S. slipped by eight to 729 last week, the total
count is 62 percent higher than a year earlier. Total American production climbed by 46,000

barrels a day to 9.55 million in the week ended Oct. 27, near the highest level in more than two
years, according to data from the U.S. Energy Information Administration.
Brent crude, the benchmark for more than half the world’s oil, was up 20 cents at $62.27 a barrel
on the London-based ICE Futures Europe exchange by 1:32 p.m. Singapore time. West Texas
Intermediate, the U.S. marker, rose 13 cents to $55.77 a barrel on the New York Mercantile
Exchange.
“Anything to do with Saudi Arabia is a bit unsettling for the oil market, but there’s no indication at
this stage of any issues that may lead to a supply disruption,” said Ric Spooner, an analyst at
CMC Markets in Sydney. “Oil is continuing to probe for a level that will attract new short-term
production, particularly from U.S. shale, and we haven’t yet seen evidence of that.”

NewBase November 07 - 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices edge down after biggest gain from near 2-1/2 year high
Reuters + NewBase + Bloomberg
Oil prices edged lower on Tuesday after posting the biggest gains in six weeks a day earlier,
buoyed by moves by Saudi Arabia’s crown prince to tighten his grip on power and rising tensions
between the kingdom and Iran.
U.S. West Texas Intermediate (WTI) crude CLc1 slipped 10 cents, or 0.2 percent, to $57.25 a
barrel by 0231 GMT. The contract surged 3 percent on Monday, the biggest percentage gain
since late September.
Brent crude futures LCOc1 were down 19 cents, or 0.3 percent, at $64.08. On Monday, they
closed 3.5 percent higher, also their biggest percentage gain in about six weeks. Both
benchmarks hit their highest since mid-2015 during the session.
Oil price special
coverage

Saudi Crown Prince Mohammed bin Salman moved to shore up his power base with the arrest of
royals, ministers and investors, including billionaire Alwaleed bin Talal and the powerful head of
the National Guard, Prince Miteb bin Abdullah.
The arrests, which an official described as part of “phase one” of the crackdown, are the latest in a
series of dramatic steps by Prince Mohammed to tighten his grip at home.
Tensions between Saudi Arabia and Iran also rose further. The Saudi Arabia-led military coalition
fighting against the Houthi movement in Yemen said on Monday it was closing all Yemeni air, sea
and land crossings.
The move came after a missile was fired toward Riyadh on Saturday. Saudi Arabia and its Gulf
allies have said they see Iran as responsible for the Yemen conflict and, on Monday Saudi
Foreign Minister Adel al-Jubeir said his country reserves the right to respond to Iran’s “hostile
actions”.
“A potential conflict could limit significant supply out of the region,” Shane Chanel, equities and
derivatives adviser at ASR Wealth Advisers, said in an email. “We see WTI above $60 and may
even see Brent above $70 by the end of the year.”
Despite the moves by the Saudi heir, analysts said they do not see Saudi Arabia, the world’s
largest oil exporter, changing its policy of boosting crude prices for now.
Saudi Energy Minister Khalid al-Falih said that while there is “satisfaction” with a production-
cutting deal between the Organization of the Petroleum Exporting Countries and other producers
led by Russia, the “job is not done yet.”
OPEC is expected to extend a cut of around 1.8 million barrels per day into the whole of 2018.
U.S. drillers cut eight oil rigs last week, the biggest reduction since May 2016, helping to support
prices.
While supplies are tightening, analysts said demand remains strong. Speculators increased their
bets on gains in the price of Brent to a record high.
WTI Oil Holds Near Two-Year High on Prospect of More Saudi Arrests
Oil traded near the highest close in more than two years as political upheaval in Saudi Arabia
reverberated through a market already bolstered by signs of tightening supply.
Investors piled into crude as a shake-up of the ruling elite in Saudi Arabia, the world’s biggest
exporter, was seen to consolidate power in the hands of Crown Prince Mohammed bin Salman,
who supports OPEC-led output cuts. Some also see the purge as raising political instability in the
kingdom, adding a risk premium to prices. As OPEC looks likely to extend curbs and U.S.
stockpiles shrink, oil remained elevated on Tuesday.

Oil has advanced more than 20 percent since the beginning of September on signs global
supplies are tightening and the Organization of Petroleum Exporting Countries and allied
producers may prolong their deal to lower output past the end of March. The Saudi purge
eliminated potential rivals to the Crown Prince, who has backed extending the supply agreement.
“The fact that the Saudi Crown Prince backs an extension to the oil cuts is one reason why the
markets are looking at this as a bullish signal,” said Barnabas Gan, an economist at Oversea-
Chinese Banking Corp. in Singapore. “The key factor looking ahead is whether other producing
countries take advantage of the higher prices and start pumping more, particularly U.S. shale.”
West Texas Intermediate for December delivery was at $57.22 a barrel on the New York
Mercantile Exchange, down 13 cents, at 9:16 a.m. in Hong Kong. Total volume traded was about
57 percent below the 100-day average. Prices rose $1.71, or 3.1 percent, to $57.35 on Monday,
the highest close since June 2015.
Brent for January settlement fell 15 cents, or 0.2 percent, to $64.12 a barrel on the London-based
ICE Futures Europe exchange. Prices rose 3.5 percent to $64.27 on Monday, the highest close
since June 2015. The global benchmark crude traded at a premium of $6.68 to January WTI.
Weekend arrests of princes and officials in Saudi Arabia were “merely the start of a vital process
to root out corruption wherever it exists,” the nation’s attorney general said Monday. In the U.S.,
crude stockpiles probably slid 2.45 million barrels last week, according to a Bloomberg survey
before government data Wednesday.

OPEC Is Already Thinking About $70 Oil
By Julian Lee
As recently as OPEC's last meeting, back in May, several oil ministers were talking quite casually
about $50 a barrel as a good price for crude. Don't expect that to be repeated when they convene
again at the end of this month.
In fact, expect quite the opposite. As oil has risen, OPEC ministers' assessments of a "fair price"
for their crude have probably increased too, and that could put them at odds with their chief non-
OPEC partner: Russia.
Brent Rebound
Brent oil prices, rising since June, top $60 a barrel for the first time since July 2015
OPEC has form on this creeping assessment of a fair price for oil. The right price always seems to
be a little higher than the current price, no matter what that might be. That was true in the 1990s,
when oil cost about $20 a barrel. It was true too in early 2008, shortly before Brent peaked near
$150 a barrel.
With hindsight, some in OPEC accepted that oil above $100 was abnormal. Secretary General
Mohammad Barkindo wrote in July 2016 that the “skyrocketing of prices” in 2008 was
“unsustainable” and probably harmful to the world's economy. And while nobody in OPEC is yet
talking about $100 as a fair price, you can bet that nobody will be talking about $50 either.
There's nothing wrong with aspiration, but it seems the lessons of the recent past are rapidly being
forgotten. OPEC's greed in trying to keep oil prices above $100 a barrel after 2011 played a big
part in the U.S. shale boom and subsequent price crash in 2014.

Slipping back into targeting an ever-higher price risks unleashing another unsustainable
production boom.
True, U.S. shale oil output this year hasn't lived up to the lofty expectations of the Energy
Information Administration. But that doesn't mean shale's played out. The affect of weakening oil
prices into the summer and Hurricane Harvey's passage through Texas cannot be dismissed.
Shale Slowdown
More detailed monthly assessments of U.S. shale production lag initial weekly estimates
Rising oil prices will allow shale-focused companies to ramp up operations, even as they target
improved shareholder returns. The EIA expects average U.S. lower-48 oil production to increase
by 620,000 barrels a day next year. That's likely to rise if oil prices continue upward.
The risk is that OPEC's rediscovered optimism encourages members to pursue ever-higher prices
again, justifying each increase as a move toward that magical "fair price". It's starting to happen
already.
At the end of October, Qatar's oil minister said prices were moving in the "right direction" toward
fair levels, even as Brent passed $60. What that new fair level is, he didn't specify, but his
Venezuelan counterpart last year pegged it as $70 a barrel, while Iraq suggested $70-80.
The aspirations of some OPEC countries may clash with their chief external supporter, Russia.
Moscow is worried about letting prices rise too far, even suggesting that $60 would be enough to
justify ditching the output agreement. Its oil minister said Thursday that OPEC and its partners still
have five months to decide whether to extend the deal and that any extension must be justified by
market conditions closer to the time.
Russian reluctance to buy into OPEC's fair price dreams may yet undermine the remarkable
cohesion among the countries seeking to re-balance the oil market.

NewBase Special Coverage
News Agencies News Release November 02-2017
The world is Facing challenge to go Green
NewBase + Bloomberg
On a global scale, many countries are turning to renewable energy to curb the release of
greenhouse gases. As these nations determine which energy routes to take, one renewable sourc
e witnessing a quiet rise is offshore wind.
Bloomberg New Energy Finance (BNEF) states in its Offshore Wind Market Outlook for the first ha
lf of 2017 that rapid cost declines in the past 18 months have propelled offshore wind from a niche
sector into the renewable mainstream. The report further estimates the global offshore wind mark
et will grow 19 percent annually over the next eight years, reaching cumulative capacity of 71 giga
watts in 2025.
On a global scale, many countries are turning to renewable energy to curb the release of greenho
use gases. As these nations determine which energy routes to take, one renewable source witnes
sing a quiet rise is offshore wind.
Bloomberg New Energy Finance (BNEF) states in its Offshore Wind Market Outlook for the first ha
lf of 2017 that rapid cost declines in the past 18 months have propelled offshore wind from a niche

sector into the renewable mainstream. The report further estimates the global offshore wind mark
et will grow 19 percent annually over the next eight years, reaching cumulative capacity of 71 giga
watts in 2025.
Mitsubishi Heavy Industries (MHI) Group is an established manufacturer in this field. Since 1980, t
he company has delivered more than 4,200 wind turbines to 11 countries. These wind turbines ge
nerate 11 terawatt hours of electricity annually, enough to meet the needs of 1.8 million household
s and cut six million tons of CO emissions. Offshore wind is a major pillar in MHI’s investment in
a clean energy future. Through its joint venture with Vestas, MHI is seeking to develop offshore wi
nd as an economically viable and sustainable energy resource for future generations.
Technological advancements in the modern era might make it possible to reduce coal’s carbon fo
otprint significantly, in addition to air pollutants known to cause respiratory diseases.
In certain European nations where coal still contributes the bulk of electricity, Air Quality Control S
ystems installed in thermal power plants remove poisonous gases and microscopic air particles. T
he same technology can be applied in other parts of the world to ease the plight of communities br
eathing heavy smog on a day-to-day basis.
Another method under consideration is Carbon Capture, a process that extracts CO from coal-
fired power stations and injects the gas deep underground. The technology isn’t new; for decades
the chemical industry has removed CO from exhaust gases for beneficial reuse, and the oil indus
try has utilized CO to extend the life of existing wells.
Now carbon capture is being integrated and extended to electric power generation due to its envir
onmental benefits. The use of CO for enhanced oil recovery generates revenue that can also be
used to offset construction costs and promote greater energy independence. The Petra Nova proj
ect in Thompson, Texas, presents a strong case study.
For this project, MHI America and TIC -
The Industrial Company constructed the world’s largest carbon capture facility at an existing coal
power plant, which came online in 2016. Today, the 240 MW facility captures 4,776 metric tons of
CO per day, which are pumped more than a mile beneath the surface of an aging oil field. As a r

esult, the coal power plant produces fewer CO emissions and air pollution similar to that of a nat
ural gas power plant.
The power industry has taken notice of the technological success of Petra Nova,
and the project has earned the 2017 Plant of the Year award given by Power Magazine, a leading
industry publication.
Moving forward, MHI plans to build on Petra Nova’s success and further its push to optimize existi
ng plants in coal-reliant countries.
Captured CO can also be injected underground to increase the amount of oil extracted from an oil field. Th
e process is called enhanced oil recovery.
'Clean Coal' Will Always Be a Fantasy
"Clean coal," always dubious as a concept and never proved as a reality, has now failed as
business proposition. Southern Co. has decided to stop work on a process that would have
captured carbon dioxide emissions from a coal plant in Mississippi.
Giving up on the project, which was nearly $5 billion over budget and three years behind
schedule, makes sense for Southern's customers and shareholders. And giving up on carbon
capture makes sense for the energy industry. The technology is too expensive and complicated to
be deployed quickly or widely enough to appreciably protect the climate.

The better way to cut back on carbon-dioxide emissions is far simpler: Use less coal. Luckily, that
change is already under way.
Carbon capture once seemed promising -- even as recently as a decade ago, when coal
fueled almost half of U.S. electricity generation. Back then, continued dependence on the dirty fuel
looked inevitable, and a strategy to deal with its prodigious greenhouse-gas emissions seemed
essential. Hence, utilities embarked on model coal plants that would capture the carbon dioxide
before it could enter the atmosphere.
Only a couple have been built, in addition to Southern's in Kemper County, Mississippi, and none
has established an economic case for carbon capture. The Petra Nova facility, in Texas, was
reportedly finished on time and on budget, but its construction required a $190 million federal
grant, and the carbon-capture unit requires a separate gas-fired power plant. Canada's Boundary
Dam carbon-capture unit, meanwhile, has operated much less efficiently than expected, suffering
multiple breakdowns and requiring expensive repairs.
Unfortunately, such costs and complexities are unlikely to diminish very much, and few such
facilities are likely to be built worldwide in the next 20 years. A new report issued by the Global
Warming Policy Foundation concludes that carbon capture for coal-fired power has "no plausible
economic future."
The good news is that coal use is already falling fast. The shale gas boom and the
extraordinary drop in the cost of producing solar panels and wind turbines in recent years has
steered power producers away from relatively expensive coal. Today, the fuel accounts for only
about a third of U.S. energy, and that share is shrinking. The rest of the world's big economies are
also shifting to natural gas, wind, solar and nuclear power.
It would be a mistake to give up completely on carbon capture technology. It has been used
effectively in the chemical and oilindustries, and it may be able to help reduce emissions from

steel plants and other industrial sources. But it can no longer be viewed as a savior for coal-fired
power plants -- or as a rationale to build new ones.
The power of Coal leads to a Battle With the EU
The buzzword in the Brussels energy and climate bubble is 450, a number that is
dividing European Union lawmakers and making coal-dependent Poland fume over upcoming
reforms to the world’s biggest carbon market.
Negotiators representing the 28-nation bloc and its member states will meet on Nov. 8 to overhaul
the Emissions Trading System, the EU’s flagship climate-policy tool to reduce greenhouse gases.
Discussions have stalled over a new modernization fund, with some lawmakers pushing to restrict
financing just to utilities that emit less than 450 grams of carbon dioxide per kilowatt hour, a move
that would make aid unavailable to coal-fired power plants.
Coal-reliant Poland is fighting the measure, with Prime Minister Beata Szydlo threatening to
intervene at the next meeting of EU leaders if the overhauls cut funding to the country’s existing
plants. Western European companies including Siemens AG and Eni SpA have joined
environmental lobbies supporting an emission limit for aid to align EU policy with more ambitious
climate goals.
“There is a risk that the ETS modernization fund for eastern member states may unintentionally
support considerable investments in carbon-intensive electricity production,” Ronald Busch,
managing board member at Siemens, said in an interview. “Setting a CO2 limit would bring
investments in line with Europe’s climate ambition.”
The challenge for the EU is to find an environmentally and economically sound compromise
among 28 countries with differing energy sources and wealth levels. Europe, which wants to lead
the global battle against climate change, toughened its carbon-reduction target to at least 40
percent by 2030 from 20 percent in 2020. The EU ETS covers almost half of the region’s
emissions, imposing pollution limits on around 12,000 facilities owned by manufacturers and
utilities.

The principle of the cap-and-trade system is that companies emitting less than their quota can sell
their unused permits, getting a financial incentive to become cleaner. The overhaul aims to adjust
the program to the 2030 climate goal and to bolster the price of allowances after they lost nearly
70 percent over the past nine years.
Benchmark EU permits traded at 7.90 euros per metric ton on Friday compared with the 25-to-30
euro target lawmakers had in mind when they were designing rules for the 2013-2020 phase of
the market.
The emission performance standard of 450 grams carbon-dioxide was the biggest sticking point at
the previous round of talks between the representatives of EU governments and the European
Parliament on Oct. 12. After 13 hours of talks, negotiators left the meeting around 3 a.m. without
reaching a deal.
Estonia, which leads the talks on behalf of EU member states, demanded the number be
removed, offering instead a provision to ensure spending under the modernization fund is in line
with the Paris Agreement goals. The team from the European Parliament didn’t want to give up on
the 450 grams.
The Polish government and the Eastern European country’s energy companies including PGE
SA have demanded an increase of the modernization fund and argued that they need time and
money to shift from coal to greener energy sources without undermining the security of the power
supply.
An emissions performance standard would force utilities to build new natural gas plants, which
they argue still produce greenhouse gases and would increase Warsaw’s dependence on gas
from Russia.
“It seems that it will be difficult to reach an agreement in the Council of the EU,” Szydlo said in
Brussels after an EU summit last month. “We’re still holding to hope that it will be possible. If not, I
will propose that those disadvantageous proposals by the European Commission be discussed at
an EU summit because they are very unfavorable for Poland and for a large group of countries.”
The modernization fund was set up to help 10 lower-income member states, with gross domestic
product per capita below 60 percent of the EU average, modernize their energy infrastructure and
reduce greenhouse gases.
In the run-up to the Nov. 8 meeting, seven EU nations including France, Germany, Sweden and
Denmark, suggested a compromise provision that would prevent using the fund to support “solid
fossil fuels-based energy generation.”
“To the extent that this is made
clear, we are open to alternative
ways to formulate such appropriate
safeguards,” the countries, which
also include Luxembourg,
Netherlands and the U.K., said in an
informal document presented to
Estonia and obtained by Bloomberg
News.
Any compromise on the carbon-
market overhaul will come in the

form of a package that balances the need for bolstering the market, protecting the
competitiveness of European companies and ensuring financing for modernization, EU lawmakers
have said. In September, the negotiators provisionally agreed on the first element by approving
strengthening of a special reserve that will alleviate oversupply of permits.
For Estonia, the holder of the rotating EU presidency until the end of this year, the reform is one of
the most important issues on the table.
“EU ETS is the cornerstone of our climate policy and it needs a reform to ensure that the system
functions well. This is, however, not an easy puzzle to solve,” said the presidency spokeswoman
Annikky Lamp. “Our goal is to reach an agreement during the Estonian presidency, but as the
latest 13-hour negotiation round illustrates, it’s a challenge.”
Murray Energy’s pivot to foreign customers could help it stay out of bankruptcy if some of its
largest U.S. power-plant customers are forced to shut, Murray said. That’s a change from August
when he warned that his company could also be forced out of business if that happened.
Even with President Trump in office, U.S. utilities will probably burn about the same amount of
coal this year as they did in 2016, according to the Energy Information Administration. The uptick
in coal mining from earlier this year has largely fizzled out when compared with production levels
at this point last fall. And anyway, the driving forces behind coal’s recovery earlier were largely
government policies in China and one-time events including a cyclone that hit Australia and
caused global prices to spike.
‘Keep Falling’
“You can scrap a bunch of environmental rules, but you can’t bring coal back in face of market
forces,’’ said Jason Bordoff, director of Columbia University’s Center on Global Energy Policy. “If
natural gas prices stay cheap and renewable prices keep falling, coal is going to keep falling.”
Murray, of course, is lobbying for all the help he can get. An early and vocal supporter of Trump,
he had a 3.5-page list of "action” items for the incoming administration last winter, he said. Much
of what was on the first 1.5 pages has already been addressed, he said. That includes
the removal of an Obama-era rule designed to protect streams and the country’s withdrawal from
the Paris Climate Accord. Items still remaining include ending subsidies for the wind and solar
industries and reversing a policy that views carbon-dioxide as a pollutant.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk Energy
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 27 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 November 2017 K. Al Awadi

New base 07 november 2017 energy news issue 1097 by khaled al awadi

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