New base 15 december 2020 energy news issue 1393 by khaled al awadi

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NewBase Energy News 15 December 2020 - Issue No. 1393 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Dubai’s Alcazar Energy bullish on renewables as
demand for clean energy picks up
The National + NewBase
Dubai’s Alcazar Energy, backed by Mubadala Investment Company, is bullish on the growth of the
renewables sector in the Middle East and North Africa as demand for clean energy accelerates
amid concerns about climate change.
“Necessity for affordable energy in these emerging markets is of very large magnitude," Daniel
Calderon, co-founder and chief executive of Alcazar Energy, said. "That is the exciting part of
renewable energy. What we have seen in the last seven years is very small fraction of what we
hopefully ... stand to see in the next ten years.”
Middle Eastern countries like Jordan, which depend on energy imports to meet up to 90 per cent of
their requirements, are opting to generate energy through solar to plug demand and lower their
www.linkedin.com/in/khaled-al-awadi-38b995b

spending. The kingdom has launched a number of renewable rounds to tap the private sector in
building clean energy capacity.
Energy exporters in the Middle East such as Saudi Arabia and the UAE are also switching from gas,
and are looking to add more renewable capacity to meet power needs.
Dubai aims to generate 25 per cent of its energy requirements from renewable sources by 2030
and 75 per cent by 2050 as part of its clean energy drive. Abu Dhabi, the hydrocarbons centre of
the UAE, is looking to generate half of its power requirements from clean sources by 2030.
The UAE capital is building a massive 2 Gigawatt solar power scheme in Al Dhafra, which was
awarded to a consortium led by Abu Dhabi National Energy Company (Taqa), Masdar, EDF and
Jinko Solar in July.
Saudi Arabia, the world’s largest oil exporter, is pursuing an ambitious renewable power strategy
and plans to add 60 gigawatts of clean energy capacity to the national grid by 2030. Of this, 40
gigawatts will come from solar photovoltaic plants, 16 gigawatts from wind turbines and 2.7
gigawatts from concentrated solar power,
“When you look at the Mena region ... [it] needs quarter of a trillion dollars [in investment] during the
next ten years alone to be able to meet the requirement that it has in the renewable energy,” Mr
Calderon said.
Alcazar Energy operates seven renewable projects in the region with an investment of over $700
million. It recently started the commercial operations of its wind farm in Jordan, which is jointly
financed by the European Bank for Reconstruction and Development, the Islamic Corporation for
the Development of the Private Sector and the Europe Arab Bank.
Despite rapid development of renewable projects in the region, the investment is still very low in the
sector, Mr Calderon said.
“Jordan now has 16 per cent of power being produced from renewable energy sources. Similarly
Egypt was only starting seven years ago and today it has the largest solar complex in the world. All
that progress so far is only single digit billion dollars of investment,” he said.
The company is currently considering raising up to $700m through a green bond or selling some of
its assets to global infrastructure investors to refinance its debt and fuel its expansion. Mr Calderon,
however, did not provide details on when the company plans to issue a bond or sell its assets.
Clean energy investments need to double to $2tn a year to meet sustainable goals, Irena says

“We have been talking to typical bond investors. There is quite an interest for people to come and
invest because of the better status Egypt and Jordan have for international investors. That’s one
opportunity in front of us we are considering,” he said.
Alcazar is also seeing interest from global infrastructure funds in investing in the renewable energy
space in the Middle East. Global funds have so far largely poured capital into built hydrocarbons
assets in the Middle East.
“As part of an exercise, we have also received approaches from equity investors," Mr Calderon said.
"These are long term infrastructure investors who typically go into large energy companies in Europe
or North America and don’t invest in renewable energy investments in Egypt or Jordan or North
Africa and it is exciting that we were able to bring investors.”
He added that the interest shown by these investors in these countries "is a testament to how far
Jordan and Egypt have come in the international space”.
In addition to Mubadala Investment Company, Alcazar's shareholders include Blu Stone
Management, Dash Ventures International and the World Bank's International Finance Corporation
and IFC Asset Management Company.

Algeria’s LNG Supply Disruptions Add to Global Market Tightness
Bloomberg - Anna Shiryaevskaya
A disruption in liquefied natural gas exports from Africa’s second-biggest supplier is tightening the
global market and contributing to a rally in spot rates.
The port of Arzew, home to Algeria’s massive LNG production complex, has been at a standstill for
about 10 days due to bad weather, a person with direct knowledge of the matter said, asking not to
be identified because the information has not been made public. Algeria was already struggling with
separate export issues since late summer, according to traders of the fuel.
Unplanned maintenance at facilities from Australia to Qatar have cut global supplies over the last
few months just as demand is rising from customers seeking volumes for the winter. The lack of
available cargoes has pushed Asian spot rates to the highest level in about two years.
At least two LNG vessels are idled near the Arzew port, with one of them -- the Lalla Fatma
N’Soumer -- in place since Dec. 1, according to ship-tracking data on Bloomberg.
Ship-tracking data compiled by Bloomberg
The GL3Z LNG plant at Arzew has not exported a cargo since mid-August, while total exports from
Arzew slipped in November from the previous month, according to ship-tracking data on Bloomberg.

Sonatrach, which operates the export plant, has increased flows via pipeline to southern Europe,
two traders said. Sonatrach didn’t immediately respond to a request for comment.
LNG Exports From Arzew, Bloomberg, IHS, Genscape,
Sonatrach hasn’t been offering any cargoes to the spot market to take advantage of rallying prices
and increased winter demand, suggesting the company has limited volumes available to sell, traders
said.

UK:Draw support to overseas O&G gas projects, In boost to climate action
Reuters + NewBase
British Prime Minister Boris Johnson will pledge to end direct government support for overseas fossil
fuel projects at a U.N. summit on Saturday, aiming to spur similar moves by other countries to help
tackle climate change, his office said.
Britain, which is co-hosting the virtual summit ahead of climate negotiations in Glasgow next year,
has faced accusations of hypocrisy from campaigners for continuing to finance climate-warming oil
and natural gas projects abroad.
“By taking ambitious and decisive action today, we will create the jobs of the future, drive the
recovery from coronavirus and protect our beautiful planet for generations to come,” Johnson said
in a statement.
More than 70 world leaders from countries including China, India, Canada and Japan are due to
unveil more ambitious climate commitments at the summit.
Britain would be the first major economy to commit to ending public finance for overseas fossil fuel
projects.
“This policy shift sets a new gold standard for what serious climate action looks like,” said Louise
Burrows, policy adviser with consultancy E3G. “Britain now has a mandate to mobilise other
countries to follow suit.”
The UK Export Finance agency has offered guarantees worth billions of dollars to help British oil
and gas companies expand in countries such as Brazil, Iraq, Argentina and Russia, Burrows said.

Johnson had faced particular criticism from campaigners for UKEF’s role in backing French major
Total’s planned $20 billion liquefied natural gas project in Mozambique.
The government said the new policy would come into effect “as soon as possible” and would mean
no further state support for oil, natural gas or coal projects overseas, including via development aid,
export finance and trade promotion.
There would be “very limited exceptions” for gas-fired power plants within “strict parameters” in line
with the Paris deal, the statement said.
Although the UK left the EU in early 2020, it has committed to continue working with the EU, aligning
and, where possible, going beyond the EU’s climate and energy ambitions. The UK’s current targets
are more ambitious than what was required under the EU effort-sharing legislation, so there is no
expectation of a weakening of climate policy ambition as a result of leaving the EU.
The government’s current 2030 target of a 57% reduction in GHG emissions below 1990 levels is
rated as ‘Insufficient’, for limiting warming to below 1.5°C.
For full details see pledges and targets section.
The UK government’s strengthening of climate policies over the last 12 months is a welcome
development, but as the CCC notes, there is still much more needed in order for the UK to be on a
path to its target of net-zero emissions by 2050. In its 2020 progress report to Parliament, the CCC
outlined that while 14 of its 21 key indicators of necessary progress are heading in the right direction,
only four indicators were on track in 2019, and these were the same four as in 2018. They relate to
total vehicle distance driven, emissions from, and renewable energy generation in the power sector,
and the percentage of heat demand from buildings coming from low carbon sources.
In a separate correspondence to the Prime Minister, the CCC outlined six specific policy priorities
that would support climate goals and the economic recovery from the COVID-19 crisis and could be
delivered in the nearer term in the context of social distancing. These are: reskilling and training
programmes, targeted science and innovation funding, housing retrofits and building homes that
are fit for the future, strengthening energy system networks, tree planting, peatland restoration and
green infrastructure, and making it easy for people to walk, cycle and work remotely.
The UK’s primary policy success in addressing climate change so far has been achieved in the
electricity sector, with emissions from this sector more than halving between 2014 and 2019. This

has primarily been achieved by shutting down coal-fired power stations and investing heavily in
renewable energy technologies. However, with limited coal now left in the electricity system, further
emission reductions in the coming decade will also need additional action in other sectors.
The progress so far in transitioning to renewable energy has been encouraging, with the electricity
output of renewables in Q3 2019 outpacing the output of all fossil fuels combined for the first time
ever. Electricity generation from renewables reached a record high 36.9% in 2019, while current
policy projections show a further scaling up of renewable energy to approximately 52% of generation
by 2030.
The future of offshore wind looks particularly bright, with the government’s 2019 renewable energy
auction yielding six new offshore wind farms totalling 5.5GW. The electricity prices confirmed for
these projects is below the government’s projected electricity price in 2024/25 and could generate
cheaper electricity than existing gas-fired power stations by 2023. The previous target of 30GW of
offshore capacity by 2030 has now been raised to 40GW.
In June 2020, the UK Government published its response to its consultation on the design of a future
Emissions Trading Scheme (ETS). It proposes a starting date of 2021, with the first phase running
until 2030, but does not specify whether it will be linked to the EU ETS or be a standalone system,
noting that the government is still considering both options. The scheme will cover energy intensive
industries, the power generation sector, and aviation, including domestic routes, and those across
the European Economic Area (EEA). This broadly aligns the proposed UK ETS with the current
scope of the EU ETS, which also covers industry, the power sector, and aviation across the EEA.
The continued fall in pricing of renewable energy sources underlines outstanding questions as to
the future viability of the UK’s nuclear sector, with three planned projects cancelled in late 2018 and
early 2019. The projected price of power from future nuclear power plants remains high and the
Hinkley Point C plant currently under construction continues to register cost blowouts and delays,
with the total cost of the project now expected to be over £22 billion. A government retreat from
nuclear power would require additional investment in renewable energy, and there is considerable
anticipation for the government’s upcoming energy white paper scheduled for release later in 2020.
The considerable progress made since 1990 in decarbonising the UK’s industry sector must
continue if the UK is to meet its current emission reduction targets. The release in 2017 of eight
sector-specific action plans for decarbonising UK industry by 2050 provides a blueprint for doing so.
In 2030, industry emissions are projected to be 56% lower than 1990 levels, just under the economy-
wide target.

EU leaders agree on 55% emissions reduction target, but activist
groups warn it is not enough … NewBase + CNBC - Anmar Frangoul
European Union leaders have agreed on a goal to cut greenhouse gas emissions by at least 55%
by the year 2030 compared with 1990 levels. The previous target had been a reduction of at least
40% by 2030. With key point as follow :-
 The European Council’s President, Charles Michel, describes Europe as “the leader in the
fight against climate change.”
 The EU’s adoption of the target comes ahead of a Climate Ambition Summit this weekend.
The European Council’s President, Charles Michel, confirmed the news via Twitter on Friday
morning, describing Europe as “the leader in the fight against climate change.” The new target was
reached at a summit taking place in Brussels, Belgium.
Ursula von der Leyen, who is president of the European Commission, the EU’s executive arm, said
the target “puts us on a clear path towards climate neutrality in 2050.”
The EU’s adoption of the 55% target comes ahead of a Climate Ambition Summit this weekend
which will be co-hosted by the United Nations, the U.K. and France, in partnership with Italy and
Chile.
Last week the U.K. government said it would target an emissions cut of at least 68% by the year
2030 compared with 1990 levels. The U.K. left the EU in January 2020.
The EU’s revised 2030 goal now requires a green light from the European Parliament, a directly
elected law-making body that has called for a 60% emissions cut by the end of this decade.

Work to be done?
Among those reacting to the news was Jytte Guteland, an MEP and the European Parliament’s
rapporteur on the European Climate Law.
“It is important not to be fooled into thinking that a net target of 55 percent is sufficient,” Guteland
said via Twitter on Friday. “I have a strong mandate from the elected representatives in the
European Parliament to push for more climate ambition. I intend to do that when we meet and
negotiate.”
Elsewhere, the European unit of
Greenpeace said the deal
exposed “a reluctance by
governments to follow the
science and tackle the root
causes of the climate
emergency.”
Sebastian Mang, Greenpeace
EU climate policy adviser, said
the evidence showed that the
deal was “only a small
improvement on the emission
cuts the EU is already expected
to achieve.”
“It shows that political
convenience takes precedence
over climate science, and that
most politicians are still afraid to
take on big polluters,” he added.
Colin Roche, climate justice
coordinator at Friends of the
Earth Europe, said the new goal
was “still a far cry from the victory the climate needs.”
This week marks the fifth anniversary of the Paris Agreement on climate change, a landmark deal
which aims to keep global warming “well below” 2 degrees Celsius (35.6 degrees Fahrenheit) above
pre-industrial levels, and “pursue efforts” to limit the temperature rise to 1.5 degrees Celsius.
“Our leaders must go further to deliver Europe’s fair share of global action to cut carbon and live up
to the agreement they made in Paris five years ago,” Friends of the Earth Europe’s Roche said.
“Meanwhile if this new target is to be meaningful, planned new EU infrastructure spending must cut
out all fossil fuels now.”

U.S.:Eenergy-related carbon dioxide emissions to fall 11% in 2020
Source: U.S. Energy Information Administration, Monthly Energy Review and Short-Term Energy Outlook (STEO)
In 2020, carbon dioxide (CO2) emissions from the U.S. energy sector could be 11% lower than in
2019, according to U.S. Energy Information Administration (EIA) data through August and EIA
estimates for September through December.
According to values published in EIA’s December Short-Term Energy Outlook (STEO), EIA expects
CO2 emissions in 2020 to fall by 19% for coal, by 13% for petroleum, and by 2% for natural gas.
Many of this year’s changes in energy-related CO2 emissions are attributable to the economic and
behavioral effects the COVID-19 pandemic has had on energy consumption.

EIA calculates energy-related CO2 emissions by multiplying energy consumption, measured in
British thermal units, by the carbon factor associated with each energy source. For this reason,
changes in emissions reflect both changes in the overall amount of energy consumed and the mix
of energy sources used.
Note: 2020 values are based on data through August and STEO forecasts for September through December.
This year, U.S. energy consumption was heavily affected by responses to COVID-19, including
working from home and other stay-at-home measures, closed or limited operating hours for several
types of businesses, and travel restrictions. In April, when many parts of the country instituted
measures to slow the spread of COVID-19, monthly U.S. energy consumption fell to a 30-year
low and emissions fell to a record low.
Petroleum accounted for an estimated 45% of U.S. energy-related CO2 emissions in 2020, and
most of those emissions were from the transportation sector. CO2 emissions from petroleum in the
transportation sector fell to 102 million metric tons in April 2020, the lowest monthly level since
February 1983.
Natural gas, which accounted for an estimated 36% of U.S. energy-related CO2 emissions in 2020,
is consumed in several sectors. The electric power sector consumes the most natural gas of any
sector, and EIA estimates that in 2020, although electricity consumption declined slightly, the use
of natural gas to generate electricity increased.
Coal CO2 emissions this year could reach the lowest annual level (4,597 million metric tons, or 19%
of the total) in EIA’s annual emissions series that dates back to 1973. In the electric power sector,
where most coal is consumed in the United States, coal has lost market share to natural gas and
renewables since peaking in 2007.

NewBase December 15-2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Slips From Nine-Month High Amid Tighter Virus Restrictions
Bloomberg + NewBase
Oil dropped from a nine-month high on concerns that more pandemic lockdowns could slow a global
rebound in fuel demand, even after data showed China’s economic recovery gathered pace last
month.
West Texas Intermediate for January delivery lost 18 cents to $46.81 a barrel on the New York
Mercantile Exchange. London time after rising 0.9% on Monday. See details in below images
Futures closed at the highest since March 3. Brent for February settlement fell 0.58% to $50.0 on
the ICE Futures Europe exchange after gaining 0.6% on Monday.
Futures lost 0.7% and Asian stocks fell on Tuesday. New York is heading toward a second full
lockdown after a surge in infections, with London being placed under England’s toughest
coronavirus rules from Wednesday. The tighter restrictions come as the U.S. starts delivering its
first vaccine doses.
Oil price special
coverage

In China, which has controlled the spread of Covid-19, industrial output rose 7% in November from
a year earlier and retail sales expanded. The nation also processed a record amount of crude on a
daily basis last month as fuel consumption recovered, providing a rare bright spot for imports.
Optimism that fuel consumption will rebound following the rollout of vaccines has helped to drive oil
about 30% higher since the end of October. The near term outlook, however, is looking tough, with
OPEC cutting its projections for oil demand in the first quarter of 2021 as the group and its allies
prepare to start returning some crude supply to the market from January.
“Crude may see occasional pullbacks, but I don’t see a major downward correction,” said Vandana
Hari, founder of energy consultancy Vanda Insights in Singapore. “I expect the continued rollout of
vaccines across the world to remain a major supportive factor over the coming weeks and months.”
In Asia, Japan suspended its domestic travel system for two weeks after infections rose, while new
cases in South Korea jumped.
Oil’s forward curve weakened slightly this week. Brent’s prompt timespread was 1 cents a barrel in
backwardation, where near-dated contracts are more expensive than later dated ones, compared
with 13 cents on Thursday.
OPEC and its allies will meet on Jan. 4 to consider if they can press on with monthly increases in
supply, although a report from the group on Monday suggested it can incrementally restore output
over the next four months without tipping the market back into surplus. Producers also face
heightened risk in the Middle East, after another tanker explosion near a Saudi Arabian port, which
was described as a terrorist attack.

Baker Hughes Reports 15 More US Rigs
The latest U.S. rig count represents a week-on-week jump of 15 drilling units. The number of U.S.
oil rigs grew by 12 this week to 258 units. The U.S. gas rig figure finished the week at 79, showing
a four-unit gain, Baker Hughes noted. In addition, the service company pointed out the number of
miscellaneous rigs dropped by one to end the week at one.
Against the year-ago figure of 799, the U.S. rig count is down 461 drilling units for the period, Baker
Hughes continued. It pointed out that oil rigs are down 409, gas rigs are down 50 and miscellaneous
rigs are down two.
Baker Hughes added the U.S. offshore rig count stood at 13 for another week – down from 23 a
year ago.
Canada gained nine rigs this past week to hit 111 operating drilling units. Twelve of the new rigs are
drilling for oil (52 total) but the gas rig tally dipped by three to 59, Baker Hughes noted. At this time
in 2019, 153 rigs (96 oil and 57 gas) were operating in Canada, the firm added.
Baker Hughes obtains its working rig location information in part from Enervus Drillinginfo, which
produces daily rig counts using GPS tracking units.

Jet fuel prices take flight as vaccine roll-outs spur hopes of more air travel
Reuters - Koustav Samanta, Ahmad Ghaddar, Stephanie Kelly
Global jet fuel markets are coming back to life, resuscitated by a rebound in air cargo demand,
gradually recovering passenger traffic and hopes that COVID-19 vaccines will spur more
international flights in 2021.
The pandemic brought air travel to a virtual halt this
year, and analysts say it may take years before
global appetite for jet fuel returns to pre-pandemic
levels.
But refining profits for the fuel surged to multi-month
highs in all key trading hubs in December on hopes
of higher demand in 2021, with U.S. and European
margins underpinned by a recovery in air cargo
volumes and Asian margins also by a rebound in
domestic travel and heating consumption.
Jet refining margins in Asia - the world’s top fuel market - have soared 580% and export prices by
45% since mid-September to their highest since March. Domestic air travel picked up as some
countries eased coronavirus curbs.
“We expect vaccines will become available by (the) end of Q1 2021 and some travel restrictions will
remain in place,” said Qiaoling Chen, research associate at consultancy Wood Mackenzie in
Singapore, forecasting Asian jet fuel demand at 1.4 million barrels per day (bpd) in the first quarter
of next year.

The consultancy expects appetite for jet fuel in the region to hit 1.3 million bpd in the fourth quarter
of 2020, up by 460,000 bpd from Q2, but still 41% below the same period in 2019.
“TIRED OF NOT TRAVELLING”
In the United States, margins to refine crude into distillates, which includes jet fuel, have about
doubled since mid-September to more than $13 a barrel, but are still about $10 per barrel below
year-ago levels, according to Refinitiv data.
Artyom Tchen, senior analyst at Rystad Energy in Norway, said U.S. jet fuel demand is currently
around 1.34 million bpd, 30% off pre-coronavirus levels in January. International flights account for
over 60% of global appetite for jet fuel.

“We will see the demand recovery going forward, but it will take some time and is especially
dependent on how quickly international traffic volumes from the U.S. recover,” he said.
While passenger air travel globally has recovered from its plunge to near total stoppage in May, the
number of scheduled flights remained around 45% below year-ago levels in November.
Cargo traffic, however, has recovered far more briskly, and in October was only 6% below year-ago
levels thanks to booming e-commerce.
Global air cargo demand is expected to receive a further boost as airlines prepare to play a key role
in mass vaccine roll-outs.
Against this backdrop, European jet fuel margins rose above $4 a barrel for the first time since
March this month, after falling deep into negative territory in April-May at the height of regional
lockdowns.
(GRAPHIC: Global air market share - )
JP Morgan pegs European jet fuel demand at 700,000 bpd in the third and fourth quarters of 2020.
That is up from around 400,000 bpd in the second quarter but around half the 1.3 million bpd seen
in the first quarter.
“It (jet fuel) may pick up in Q2 (2021). At least I hope it does. We are all tired of not travelling!” said
Sukrit Vijayakar, director of energy consultancy Trifecta.

NewBase Special Coverage
The Energy world – Dec. 15 -2020
Longest Arctic Sailing Season Tops Off a Year of Climate Disasters
Record temperatures in the Arctic are benefiting natural gas exporters, who are speeding up
warming by sailing more ships.
Thinning ice in the Arctic Ocean made this year’s navigation season for natural gas tankers the
longest on record, the latest sign that the pace of climate change is accelerating in the Earth’s
northernmost latitudes.
The Northern Sea Route, stretching more than 3,000 nautical miles between the Barents Sea west
of Russia and the Bering Strait in the country’s east, traditionally opens from June through October,
when higher temperatures break up ice.
This year, voyages started a month early and will continue until at least the end of December.
Record warmth meant slower freezing during the autumn.
“This year could potentially become a turning point for the Arctic,” said Samantha Burgess, deputy
director at Europe’s Copernicus Climate Change Service. “This was a fairly exceptional year in that
the warmer-than-average condition was incredibly persistent throughout the whole year.”

The length of the shipping season in the Arctic is one
of the most tangible signs that the region is warming
more than twice as fast as the rest of the world.
In a year that’s likely to rank among the three warmest
on record—if not the hottest ever—it’s the Arctic that
registered the most notable increases in what is
emerging as an enormous climate-related disaster.
Temperatures of more than 5 degrees Celsius above
average for the first 10 months of 2020 fueled the most
active wildfire season on record.
High atmospheric temperatures led to an increase in
water temperatures. Sea ice extent was the lowest on
record for the month in July and October, and the
second-lowest for most of the year.
Thawing permafrost is threatening strategic oil, gas
and civilian infrastructure in northern Russia, Canada
and Alaska.

Shrinking Arctic
Sea ice was at the second-lowest level in November
Source: Copernicus Climate Change Service/ECMWF
Note: Col. 5: Relative sea ice area anomaly for November as a percentage of the 1981-2010 mean
What’s bad for the planet is an opportunity for the $100 billion-a-year liquefied natural gas industry,
the quickest growing part of the fossil fuel business. To ship the fuel across an ocean or beyond
where pipelines reach, the gas is chilled to minus 260 degrees Fahrenheit (minus 160 Celsius) until
it turns to a fluid.
The trade in LNG cargoes has surged in recent years, boosting the stream of tankers moving the
commodity from fields in Africa, the Middle East and Australia to lucrative markets mainly in Asia.
Melting ice in the Arctic reduces shipping costs for cargoes that would otherwise have to transit the
Suez Canal or the southern tip of Africa.
To the west, the Barents and Kara Seas remained largely free of ice as late as November, according
to Copernicus, the European Union’s climate satellite program.

To the east, ice cover in the Chukchi Sea between Russia and Alaska has dropped by more than
45% since the late-1970s, according to Rick Thoman, a climate specialist at the Alaska Center for
Climate Assessment and Policy.
The Arctic tanker Christophe de Margerie receives a load of liquefied natural gas at the Yamal LNG
plant in the Russian port of Sabetta.
The longer the Northern Sea Route stays open, the more LNG cargoes can head directly to Asia,
where it is consumed by industry and power generators in China, Japan and South Korea.
Russia and the LNG industry are working to extend that shipping season, deploying the world’s
biggest icebreaker starting in October to escort tankers for more months of the year.
“Undoubtedly, such early and late navigation
brings us closer to the implementation of
one of the key goals of the Northern Sea
Route development strategy—year-round
navigation,” said the press office of
Rosatom, Russia’s state-owned nuclear
corporation in charge of managing the
route.
The nuclear-powered Arktika is capable of
breaking through ice up to 2.9 meters thick
(just under 10 feet), almost a third more than
the current generation of ships in the

Russian fleet. That will help Novatek PJSC move LNG cargoes to market from its giant fields on the
Yamal peninsula in northern Russia.
Arktika, the world's biggest icebreaker, readies for operations in the Arctic in December. Source: Rosatom
The Arktika will accompany ice-class LNG carriers to help make a path through this route and may
enable a few journeys to Northeast Asia over December and through as late as April, consultants
Energy Aspects Ltd. said in a note in November.
This year’s extraordinary climate conditions have already allowed for a record number of voyages
to Asia through the Northern Sea Route. About 30 will be made this season, five more than initially
forecast, Mark Gyetvay, chief financial officer at Novatek said in November. That compares with 17
in 2019 and four in 2018. One last ship may finish the voyage through the Arctic route to Asia this
month.
For years, the gas industry and LNG exporters
have promoted their fuel as a cleaner-burning
alternative to coal. Novatek says its LNG plant
is among the most efficient in the world, with
some of the lowest carbon and methane
emissions.
It also uses tankers that burn LNG instead of
ship oil, dramatically reducing pollution from
its vessels. But while gas delivers lower
carbon emissions than any other fossil fuel,
policy makers worldwide are increasing their
scrutiny of the business as they work toward
slashing emissions that damage the
atmosphere.

Arctic Records
Voyages via Northern Sea Route increase amid climate change, LNG boom
Source: Centre for High North Logistics at Nord University Norway
NOTE: Data for October and November are not full, still no figures for December 2020
The LNG industry’s success in the Arctic is a concern for scientists and environmental groups, who
see a “feedback loop” with more ships speeding up the pace of warming in the region. The ice's
white surface reflects sunlight and helps cool the atmosphere. When it melts, it is replaced by ocean
water, which is dark and absorbs solar radiation.
More shipping traffic in the Arctic also brings higher emissions of polluting gases, which can boost
temperatures and soften ice packs locally, Burgess said. The presence of the tankers also increases
the risk of accidents and spills in an area where biodiversity is fragile, she said.
“There’s a strong interest to take advantage of the more efficient shipping route,” Burgess said.
“Equally, it’s important that there’s policy put in place to make sure that’s done legally and safely,
with adequate measures put in place to protect these vulnerable ecosystems.”

NewBase Energy News 15 December 2020 - Issue No. 1393 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi, Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. 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, and 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.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2020 K. Al Awadi

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