New base 11 septempber 2021 energy news issue 1455 by khaled al awadi

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NewBase Energy News 11 September - Issue No. 1455 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
ADNOC and Helmerich & Payne Form Strategic Alliance
TULSA, Okla.--(BUSINESS WIRE)— https://www.businesswire.com/news/home/20210908005567/en/ADNOC-and-Helmerich-Payne-
The Abu Dhabi National Oil Company (“ADNOC”) and its subsidiary ADNOC Drilling Company
(“ADNOC Drilling”) and Helmerich & Payne, Inc. (NYSE: HP) (“H&P”), a global leader in rig
technologies and drilling solutions, jointly announced today a strategic alliance, that will see ADNOC
Drilling acquire eight FlexRig® land rigs from H&P for $86.5 million.
Following this transaction, H&P will make a $100 million cornerstone investment into ADNOC
Drilling’s recently announced Initial Public Offering (“IPO”).
“H&P’s cornerstone investment in our planned ADNOC Drilling IPO further reinforces ADNOC’s
continued success as a primary catalyst in attracting leading global investors and industry partners
into Abu Dhabi and the UAE.”
The strategic alliance and rig acquisition will support ADNOC’s target of reaching 5 million barrels
per day (mbpd) production capacity and gas self-sufficiency for the UAE by 2030, along with plans
to unlock its unconventional oil and gas resources.

These agreements will further drive ADNOC Drilling’s growth and expansion as well as enhance its
rig-based operational performance by providing access to the world-class H&P FlexRig® land rig
fleet and leveraging H&P’s expertise and technologies.
In addition, the alliance will support ADNOC Drilling in further driving operational excellence through
maintenance efficiencies, supplementing supply-chain capabilities, and adding engineering and rig
design competencies. The alliance will also deliver more competitive well completion times, greater
drilling efficiencies and improved well economics.
For H&P, these agreements help facilitate its goal of allocating capital internationally, particularly in
the MENA region, by accelerating its access into the attractive and fast-growing Abu Dhabi market
as a key platform for further regional expansion.
H&P’s cornerstone investment in the upcoming ADNOC Drilling IPO also highlights its confidence
in the attractiveness and long-term value creation potential of ADNOC’s unique energy assets to
leading international market participants.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and
ADNOC Managing Director and Group CEO, said: “I am pleased to announce a strategic alliance
with Helmerich & Payne, a globally renowned drilling solutions provider.
This exciting alliance and value creation opportunity will provide ADNOC Drilling with access to new
world-class rigs and services, enabling it to continue to support ADNOC in our ambitious production
capacity expansion plans.
“H&P’s cornerstone investment in our planned ADNOC Drilling IPO further reinforces ADNOC’s
continued success as a primary catalyst in attracting leading global investors and industry partners
into Abu Dhabi and the UAE.”
On September 6, 2021, ADNOC announced its intention to float a 7.5 percent minority stake of
ADNOC Drilling on the Abu Dhabi Securities Exchange (“ADX”) through an IPO, demonstrating the
continued growth, strength and prominence of Abu Dhabi's financial marketplace. Both ADNOC and
H&P will remain committed, long-term shareholders in ADNOC Drilling.
John Lindsay, H&P’s President and CEO commented: “We are excited to enter into this strategic
alliance with ADNOC Drilling and the value this alliance can create for both companies and
stakeholders.
Our investment in ADNOC Drilling is an additional step in the execution of our international growth
strategy to allocate additional capital outside the U.S. and serves as a testament of our belief in
what ADNOC Drilling and H&P can achieve together.
We look forward to partnering with ADNOC and ADNOC Drilling to help create a similar value
proposition that we have for customers in the U.S. and other international locations.”
H&P’s cornerstone investment will be at the IPO price and is subject to a three-year lock-up. As
stated in the ADNOC Drilling Prospectus, like other shareholders, H&P expects to benefit from
ADNOC Drilling’s commitment to a robust dividend policy.

The rigs are expected to be delivered and commissioned in stages over a twelve-month period
subject to acceptance upon successful completion of a final inspection on customary terms and
conditions.
The strategic alliance and cornerstone investment announced today represents a natural evolution
in ADNOC’s value creation plan and will provide ADNOC Drilling with a significant competitive
advantage in the region, enabling it to further capitalize on its leading position as the largest national
drilling company in the Middle East with 96 rigs, nearly twice the size of the next largest regional
drilling provider.
Moelis & Company acted as exclusive financial advisor to ADNOC.
Morgan Stanley & Co. LLC acted as exclusive financial advisor to H&P.
About ADNOC
ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of
Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves
through responsible and sustainable exploration and production to support the United Arab
Emirates’ economic growth and diversification.
To find out more, visit www.adnoc.ae
About ADNOC Drilling
ADNOC Drilling was founded in 1972 and is the largest national drilling company in the Middle East
by rig fleet size, as well as the sole provider of drilling rig hire services and certain associated rig-
related services to ADNOC Group.
ADNOC Drilling is also the first national Integrated Drilling Services (IDS) company in the region,
offering start-to-finish wells and services that encompass the entire drilling value chain. The
company is a critical link in ADNOC’s upstream business, as ADNOC continues to move towards
its oil production capacity target of 5 million barrels per day by 2030 and enables gas self-sufficiency
for the UAE.
About Helmerich & Payne, Inc.
Founded in 1920, Helmerich & Payne, Inc. is committed to delivering industry leading drilling
productivity and reliability. H&P operates with the highest level of integrity, safety and innovation to
deliver superior results for our customers and returns for shareholders.

Through its subsidiaries, the Company designs, fabricates and operates high-performance drilling
rigs in conventional and unconventional plays around the world. H&P also develops and implements
advanced automation, directional drilling and survey management technologies. For more
information, visit www.helmerichpayne.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, and such statements are based on current
expectations and assumptions that are subject to risks and uncertainties.
Factors that might cause actual results to differ include the possibility that the conditions to the
closing of the pending transactions described herein (the “Transactions”), including the possible
cancellation, recission, or termination of any rig purchase as a result of mechanical difficulties,
performance issues, excessive delays, catastrophic loss or other reasons; the conditions related to
obtaining regulatory approvals, may not be satisfied in a timely manner or at all, that if such
conditions are not satisfied, they may not be waived, that the Transactions may not be completed
on the terms currently contemplated or at all; the failure to realize the anticipated benefits of the
Transactions, assuming they are completed; and the risk factors discussed from time to time in each
of H&P’s documents and reports filed with the SEC. Except as required by law, H&P undertakes no
obligation to revise or publicly release the results of any revision to any forward-looking statements.
Helmerich & Payne uses its website as a channel of distribution for material company information.
Such information is routinely posted and accessible on its Investor Relations website
at www.helmerichpayne.com.

U.A.E’s Taqa completes decommissioning of UK's Brae Bravo oil rig
The National - Nicky Harley
Abu Dhabi energy company Taqa has completed the North Sea's largest decommissioning project
– to dismantle the topside of the Brae Bravo oil rig. The platform, which is almost as tall as the
135m London Eye, has been operating on the Brae Area oil field, 274 kilometres north-east of
Aberdeen in Scotland, since 1988.
After decades of being an integral energy supplier to the UK’s gas and oil industry, it was
decommissioned in 2018. A major project using two of the world’s largest cranes dismantled the
topside of the rig.
More than 36,000 tonnes of the material removed will be recycled over the next 18 months. It is
hoped 95 per cent of the platform will be repurposed. Donald Taylor, Taqa’s managing director for
Europe, said it was a “significant milestone” and was a blueprint for future decommissioning
projects.
“The Brae Bravo decommissioning project is a landmark moment for Taqa and the North Sea
offshore industry,” he told The National.
“The scale of this engineering feat cannot be overstated. Despite the challenges faced by the on
and offshore team from the Covid-19 pandemic, this was completed on schedule and without any
major incidents recorded – highlighting our commitment to health and safety.
Taqa completed the topside removal of Brae Bravo in one of the North Sea’s largest decommissioning
projects. Dismantling project was the largest to take place in the North Sea.

“Decommissioning and late-life management of offshore assets will play a major role in our journey
to a lower carbon future, and Brae Bravo will be the blueprint for all future Taqa decommissioning
programmes in the North Sea.”
The topside removal was completed by
two of the world’s largest semi-
submersible crane
vessels, Thialf and Sleipnir.
The Thialf crane was used to prepare
the platform for removal and removed
the cranes and helideck, while
the Sleipnir crane simultaneously
completed the removal of the Brae
Bravo flare tower, bridge and steel
frame.
Up to 500 people worked on the
decommissioning project totalling
nearly 400,000 man hours. The
platform is now being transported to the AF Environmental Base in Vats, Norway, to be recycled.
Over its 33-year lifetime, Brae Bravo produced more than 500 million barrels of oil and more than
300,000 people worked at the platform.
Mr Taylor said the platform was widely recognised in the industry as “an iconic asset” in the
pioneering Brae fields. The only remaining element visible above the sea surface is the top of the
jacket.
A navigational aid has been installed on the remaining structure and a 500-metre safety zone will
remain in place until the jacket is fully decommissioned in 2022.
Taqa, with other partners, is developing one of the world's largest solar plants at Al Dhafra with a
total capacity of two gigawatts, as part of the UAE's efforts to increase clean energy capacity.
About Taqa, www. Taqa.com
Our roots are in Abu Dhabi with operations in the UAE and beyond. We’re a top 10 integrated utilities
champion in the EMEA region with power and water and oil and gas operations in 11 countries
around the world.
Our story begins in 1998 with the privatization of Abu Dhabi’s power and water sector, underscoring
the importance of water security and provision of power to communities across the UAE. This move
paved the way for TAQA’s establishment as a publicly listed company on the Abu Dhabi Securities
Exchange (ADX) in 2005.
Since then, we’ve grown into a diversified company with operations in the UAE as well as Canada,
Ghana, India, Iraq, Morocco, Netherlands, Oman, Saudi Arabia, United Kingdom and United States.
We are proud to be a company that provides energy and water to communities around the world.
TAQA’s operations in Europe are based in the United Kingdom and the Netherlands and focus on
strategic energy infrastructure projects, including gas storages and energy innovations, and the full
cycle of oil and gas operations, from exploration and production through to decommissioning.

Saudi Aramco Splits Its Gas Business Amid Chemicals Expansion
Bloomberg News
Saudi Arabia’s state-run energy firm is splitting its gas production division in two, as the fuel
becomes increasingly important for expanding its chemicals business and amid efforts to position
itself for the energy transition.
Saudi Arabian Oil Co. will create two new divisions, named Southern Area Gas Operations and
Northern Area Gas Operations, according to people familiar with the matter. The departments will
be run by Wail Al Jaafari and Jumaan Al Zahrani respectively, according to the people who asked
not to be identified. The appointments are awaiting board approval.
Aramco didn’t immediately respond to a request for comment.
Gas is becoming increasingly important to Saudi Arabia, the world’s largest oil exporter, as it
expands its chemicals business, which uses the fuel for feedstock. The country is also looking to
convert its power plants to gas-fired ones, which could free as much as 1 million barrels a day of
crude for export.
The kingdom is trying to position itself for the energy transition by becoming a supplier of blue
hydrogen, which is made from gas. The carbon emitted during the process would then be captured.
Aramco reached record gas production of 10.7 billion standard cubic feet (300 million cubic meters)
a day in August last year, according to its 2020 annual report.

The company’s gas division consists of 11 processing centers with a total capacity of 16 billion
standard cubic feet a day of raw gas. Output had previously been managed through one division
under Vice President Abdullah Al-Ghamdi, who retired, according to Aramco’s weekly magazine.
Al Jaafari and Al Zahrani will report directly to Nasir Al Naimi, a senior vice president overseeing all
of Aramco’s upstream businesses, one of the people said. The new reporting structure will mirror
the company’s crude departments, which were already divided into Southern and Northern areas.
Splitting its output operations into two units could also give Aramco greater focus on developing its
gas fields. The company has a separate department for producing shale gas resources, which it
may seek international partners to help develop.

Saudi ACWA’s CEO bullish on future with assets doubling while
costs fall on AI, automation, Arab News , Provided by SyndiGate Media Inc. (Syndigate.info).
Saudi Arabia - ACWA Power will stick to its ambitious spending plans after it goes public and double
its assets over the next four years, the head of the energy and water company has told Arab News,
Paddy Padmanathan, CEO of the business, was bullish about Acwa's future prospects as he talked
up how technological developments are revolutionising the way the company operates.
The Riyadh-based firm already has 64 projects across the world, and Padmanathan insists there
will be no slowing down when 81.2 million shares, representing 11.1 percent of the company, are
listed on the Main Market of the Saudi Stock Exchange, Tadawul.
The company, which the Saudi sovereign wealth fund is a key shareholder in, uses project finance
to fund all of its projects but it will continue investing around SR2.8bn a year of its own money into
these projects to keep growing, Padamanthan explained.
"We've got 64 assets in operation, construction and advanced development in 13 countries on three
continents. This represents $248 billion worth in value, and we are producing 2.8 million cubic
meters of desalinated water, and 20 gigawatts of energy. By 2025 this should be 41 gigawatts and
6.4 million cubic meters," Padmanathan told Arab News, adding: "We developed a business model
based on diversification, and demonstrated the efficiency we’ve demonstrated, and our ability to
deliver new assets."
Acwa plans to invest up to $746mln of its own money a year
to expand its $248bln assets base

IPO Rationale
For a company that is financially endowed like Acwa, tapping the equity market for additional funding
might sound strange as they need now to deal with shareholders and filing requirements every few
months, but its CEO thinks that it's the right move at the right time. "We made sure we got enough
funding in other ways and put shares in the Saudi financial market as an ideal model for that," he
continued.
There are plenty of opportunities for Acwa Power that require optimal use of capital, and the
company is keen to maintain good credit lines.
"It's important that we have investor diversification and share opportunities for energy transformation
and carbon removal from industrial manufacturing," Padmanathan said.
As well as selling shares through Tadawul, the use of green sukuk bonds to raise capital are also
on the company's radar with the company developing more clean energy projects.
AI, Automation and Cost Competitiveness
Padmanathan was also clear that energy-focused companies such as Acwa have nothing to fear
from any drop in the price of renewable energy.
"The price of renewable energies [is] coming down predominantly due to fantastic advances in
technology, amazing improvements in methods of construction, more confidence and more ability
to operate and maintain more efficiently.
"Artificial intelligence and machine learning also help in optimising the design, construction and
operation and maintenance. That helps drive the cost down. We are also in a fairly low interest rate
environment, which is allowing us to access debt capital [that is] very competitive."
Padmanathan flagged up the developments in the solar panel industry as an example of where
technology is helping companies reap financial rewards.
He said: "Four years ago, some guy put material on the back of the panel [as well as the front].
"Wow! Surprise, we now have double sided panels. So, for the same infrastructure with a bit of extra
silicon cost, we're getting 15, 16, 18 percent more energy, straight away.
"I've done nothing, I'm not losing any profit. It's because of technology improvement."
Even the act of installing solar panels in fields has changed. Padmanathan said that five years ago
up to 600 people would be digging foundations and installing the panels.
"[Now] we have automatic machines that just move and position themselves with a global
positioning system. The machines don't take a break, they don't stop at night," said Padmanathan.
All of this adds up to Acwa Power’s confidence in its ambitions to double its assets in the next four
years.
"It's all about those who are able to stay ahead of the innovation, bring entrepreneurship, and
continue to deliver fit for purpose solutions like we are doing," Padmanathan said, adding: "You can
continue to deliver lower and lower and lower costs and keep risk reflective margins, which is what
we do.
"It's not a case of the margins coming down. I think we should be more cost competitive as
technology continues to improve and the learnings get better."

Germany: Last Nord Stream 2 pipe welded in the Baltic Sea
Source: Nord Stream 2
On September 6, 2021, specialists on the laybarge Fortuna welded the last pipe of the two strings
of the Nord Stream 2 Pipeline. The pipe number 200,858 was subsequently lowered onto the
seabed in German waters. As the next step, the section of the pipe coming from the German shore
will be connected to the section coming from the Danish waters in a so-called above water tie-in.
Afterwards, the required pre-commissioning activities are carried out with the goal to put the pipeline
into operation before the end of this year. Nord Stream 2 will contribute to meeting long-term needs
of the European energy market for gas imports, improving supply security and reliability, and
providing gas under sensible economic conditions.
Project history
In October 2012, the Nord Stream shareholders examined preliminary results of the feasibility study
for the third and fourth strings of the gas pipeline and came to the conclusion that their construction
was economically and technically feasible. Later on, the construction project for the third and fourth
strings came to be known as Nord Stream 2.
In April 2017, Nord Stream 2 AG signed the financing agreements for the Nord Stream 2 gas
pipeline project with ENGIE, OMV, Royal Dutch Shell, Uniper, and Wintershall. These five European
energy companies will provide long-term financing for 50 per cent of the total cost of the project.

Nigeria: oil export struggles to find buyers as India, Europe Buying Wanes
https://www.bloombergquint.com/business/nigerian-oil-proves-tough-to-shift-as-india-europe-buying-wanes
Nigeria has sent a signal that the recovery in global oil demand still has some way to go, with
volumes for next month’s loading struggling to find a home, even among its main customers.
As much as two-thirds of Nigeria’s crude for October export has yet to find buyers, according to
traders specializing in the West African market. That’s enough to fill 30 Suezmax tankers, each
carrying 1 million.
Indian Oil Corp. — Asia’s biggest buyer of Nigerian crude from the region — has disappointed the
market for a second week, compounding already sluggish sales to Europe, the producer’s other
main market, the people said.
Earnings for ships hauling West African oil to that region are at the lowest level in a month. The
state oil refining giant purchased just 2 million barrels of Nigerian oil in
The state oil refining giant purchased just 2 million barrels of Nigerian oil in its latest tender, after a
1-million-barrel buy the previous week. IOC typically bought as much as 20 million barrels of West
African crude per month before the pandemic.
About Nigeria’s Oil:
The most populous country within OPEC, Nigeria has around 208 million inhabitants. Located on the Gulf of
Guinea on Africa’s western coast, Nigeria covers an area of around 924 thousand square kilometres. Abuja,
the capital since 1991, has a population of more than one million. English is Nigeria’s official language,
although many local languages such as Hausa, Yoruba, Igbo and Ijaw are also spoken.
Apart from petroleum, Nigeria’s other natural resources include natural gas, tin, iron ore, coal,
limestone, niobium, lead, zinc and arable land. The oil and gas sector accounts for about 10 per
cent of gross domestic product, and petroleum exports revenue represents around 86 per cent of
total exports revenue. Its currency is the naira. Nigeria’s Head of State and Commander-in-Chief
of the Armed Forces is HE Muhammadu Buhari. The country joined OPEC in 1971.

NewBase September 11-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rallies to $73 on tight US supplies, Biden-Xi call
By Reuters + NewBase
Oil rose to briefly top $73 a barrel on Friday, supported by growing signs of supply tightness in the
United States because of Hurricane Ida and as US-China trade hopes gave riskier assets a boost.
About three quarters of the US Gulf's offshore oil production, or about 1.4 million barrels per day,
has remained halted since late August. That is roughly equal to what Opec member Nigeria
produces.
"The market is back to focusing on the tighter supply situation globally, and that is giving it a boost,"
said Phil Flynn, senior analyst at Price Futures group in Chicago. "While China is releasing oil from
its strategic petroleum reserve, the amount is more than offset by reduced production in the Gulf of
Mexico," Flynn added.
Brent crude rose to settle at $1.47, or 2.3%, to $72.92. The session high was $73.15 a barrel. US
West Texas Intermediate crude rose $1.58, or 2.3%, to $69.72.
Oil price special
coverage

Both grades posted a small gain on the week. Brent has rallied 41% this year on supply cuts by Opec and some
demand recovery from the pandemic.Oil and equity markets also got a boost from news of a call between US
President Joe Biden and his Chinese counterpart Xi Jinping. The call raised hopes for warmer relations and more
global trade, analysts said.
"The Biden-Xi phone call has had the same effect on oil markets as it has on other asset classes," said Jeffrey
Halley, analyst at brokerage . The United States added rigs in the latest week, energy service provider Baker
Hughes said, indicating production may rise in coming weeks.
On Thursday, both crude contracts fell more than 1% after China said it would release crude oil reserves via
public auction to help ease high feedstock costs for refiners. In focus next week will be revisions to the oil
demand outlook for 2022 from Opec and the International Energy Agency.
Opec will likely revise down its forecast on Monday, two Opec+ sources said.

NewBase Special Coverage
The Energy world – Sep - 11- -2021
Natural gas prices are rising and consumption declining in U.S
EIA + NewBase
Natural gas prices have doubled this year and are expected to continue to rise, resulting in larger
winter heating bills for some consumers and higher costs for electric utilities.
Natural gas is plentiful in the United States and has been cheap for years, so the jump in prices this
year is eye popping. It has also lifted the shares of companies that specialize in natural gas
production, like EQT, Range Resources, Cabot Oil and Gas and Antero Resources.
In the futures market, the natural gas contract for October rose above $5 per one million British
thermal units, or mmBtus, for the first time since February, 2014. Besides electricity and heating
demand, natural gas is an important feed stock and is used in the processing of chemicals,
fertilizers, paper and glass, among other products.
“We haven’t had tight supplies of natural gas in years. We’re staring that down this year,” said John
Kilduff, partner with Again Capital.
Natural gas prices have been caught in their own perfect storm, of lower supplies and rising demand.
Prices raced higher, first as unprecedented heat stoked air conditioning demand across the U.S.,
particularly in the Northwest. As a result, less gas was put into storage for winter months, during the
key summer injection period.
Add to that any colder than normal winter weather and prices could jump more. “Anything closer to
[or colder than] a full standard-deviation form average would likely trigger a price spike to cause
demand destruction with gas above $10/mmBtu,” Goldman Sachs analysts note. Gas prices were
last that high in 2008.

Kilduff said natural gas is tied tightly into the economy, and for a long period prices did not matter.
Now, utilities will pay more and so will some consumers who have real-time pricing schemes. “You
could easily see it reach $6 and you could see it get to $8 to $10,” he said. “Any early season cold
weather outbreak will juice this thing.”
The upward pressure on gas prices is global, and since the U.S. is an exporter, prices in North
America are now more influenced by prices in other markets.
“We’ve seen it all over the last year with the pandemic. We saw natural gas prices around the world
at $2. It was $2 here in the U.S., $2 in Europe and $2 in Asia,” said Cheniere Energy CEO Jack
Fusco on CNBC. “As the economies began to ramp back up, and countries and companies
worldwide decided natural gas was the fuel of choice for clean energy transmission, the demand
has just skyrocketed.”
Fusco said prices for the same gas that is $5 in the U.S. is now $20 or more in Europe and Asia.
He also said his company, which exports liquified natural gas, is sold out of 90% of its production
for the next 20 years.
Now, the U.S. industry is also suffering from lower production due to Hurricane Ida, with 77.3% of
Gulf of Mexico production still shut-in. According to the Energy Information Administration, the level
of gas in U.S. storage is 7.4% below the five-year average and 16.8% below the level last year at
this time.
The dynamic of rising demand and lower inventories has been attracting investors into the shares
of natural gas producers, as well as the United States Natural Gas Fund ETF.
“I look at the natural gas situation. The storage levels are way below historic norms,” said Leon
Cooperman, chairman and CEO of the Omega Family Office. Cooperman said on CNBC
Thursday that his biggest positions are contrarian holdings in the energy market.

Natural gas prices are flaring as the Biden Administration is pressing for higher dependence on
renewable energy in the electricity market. On Wednesday, the White House called for solar energy
to power nearly half the electric grid by 2050. It is now just 3% of the power supply.
But natural gas is likely to remain an important fuel for years to come. The EIA, in its short-term
outlook, said natural gas should provide 35% of power generation in 2021 and 34% in 2022. The
government forecast the average price of natural gas this year will be $4.69 per mmBtus.
The EIA said the share of natural gas as a generation fuel will decline through next year because
of the anticipated increase in renewable sources, but also coal.
“As a result of the higher expected natural gas prices, the forecast share of electricity generation
from coal rises from 20% in 2020 to about 24% in both 2021 and 2022,” according to EIA.
“New additions of solar and wind generating capacity are offset somewhat by reduced generation
from hydropower this year, resulting in the forecast share of all renewables in U.S. electricity
generation to average 20% in 2021, about the same as last year, before rising to 22% in 2022.”
U.S. natural gas consumption to decline through 2022, led by the electric power sector
In EIA’s September Short-Term Energy Outlook, we expect U.S. consumption of natural gas to
decline in 2021 and 2022 from 2020 levels. We forecast that consumption of natural gas will decline
in all end-use sectors in the United States except in the industrial sector and for other non-sector-
specific uses (lease and plant fuel, pipeline and distribution use, and vehicle use).
The largest decline will occur in the electric power sector. We expect total U.S. consumption of
natural gas to average 82.5 billion cubic feet per day (Bcf/d) in 2021, down 0.7 Bcf/d from 2020. We
expect U.S. natural gas consumption in 2022 to increase slightly from 2021 as increasing

consumption in the industrial sector offsets declining consumption in the electric power sector, but
still remains lower than the 2020 level.
In the United States, natural gas prices influence natural gas consumption in the electric power
sector. When natural gas prices are high, generators typically switch from natural gas to lower-cost
coal as the source for power generation.
Higher prices at Henry Hub, the U.S. natural gas benchmark, during the first half of 2021 resulted
in less natural gas consumption in the electric power sector than during the first half of 2020.
We expect the Henry Hub price to average $3.63 per million British thermal units (MMBtu) in 2021,
or $1.60/MMBtu more than the 2020 average.
Therefore, we expect 2.7 Bcf/d, or 8.3%, less consumption of natural gas in the U.S. electric power
sector in 2021. We expect another small, 0.7 Bcf/d, decline in electric power sector consumption of
natural gas in 2022 as forecast Henry Hub prices remain elevated at $3.47/MMBtu and as natural
gas faces more competition from renewable sources of electricity generation.
We expect natural gas consumption in the U.S. industrial sector to increase in 2022 to 23.8 Bcf/d
from an average of 23.2 Bcf/d in 2021.
Natural gas consumed by the industrial sector is dependent on the level of industrial activity, which
we measure in the STEO using a natural gas-weighted industrial consumption index. This index
reflects the growth of manufacturing subsectors and their relative importance to U.S. natural gas
consumption.
We expect that the index will increase 5.8% in 2021 from 2020 levels and another 5.8% in 2022
from 2021 levels, reflecting continuing post-pandemic economic growth.

NewBase Energy News 11 September 2021 - Issue No. 1454 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
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MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
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Mobile: +971504822502
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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 Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, 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 more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management 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.

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New base 11 septempber 2021 energy news issue 1455 by khaled al awadi

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