New base 17 september2017 energy news issue 1072 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,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 1
NewBase Energy News 16 September 2017 - Issue No. 1072 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 PM Sheikh Mohammed announces winning contract
(Acwa Power) for world's largest CSP solar project
The National -LeAnne Graves and John Everington
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, hailed the launch of
the world’s largest concentrated solar power (CSP) plant. Dubai Media Office
Sheikh Mohammed bin Rashid, Vice President of UAE and Ruler of Dubai, hailed the
launch of the world’s largest concentrated solar power (CSP) plant, a milestone in the
emirate's ambition to generate 75 per cent of its energy needs from renewable sources
by 2050.
]
The Dubai Electricity and Water Authority (Dewa) said on Saturday that it had selected
Saudi Arabia's Acwa Power and China's Shanghai Power to build a 700MW extension
to the Mohammed bin Rashid Al Maktoum Solar Complex, providing more than three
times the capacity of the initial plans for the extension.
Under the terms of the contract, the new plant will deliver energy at 7.3 US cents per
kilowatt-hour (kWh). The project will have the world’s tallest solar tower, measuring 260
metres.

"The implementation of the largest CSP plant in the world demonstrates the UAE
leadership's commitment to the production of clean and renewable energy, and
entrenches our place among the most advanced countries in this industry," said Sheikh
Mohammed on Saturday.
"We will continue to implement projects that serve comprehensive development
directions in our state and advances the ambitious goals we have set for the future,
which we will start implementing today."
Dewa had previously accepted a bid in June for a 200MW extension to the solar park,
offering electricity at 9.45 cents per kWh.
The new plant will come online in stages from 2020 and is expected to cost Dh14.2
billion to build. The power purchase agreement and the financial close of the deal are
due to be finished shortly.
“Awarding this strategic project supports the vision of His Highness Sheikh Mohammed
bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of
Dubai, to promote sustainability, and make Dubai a global centre for clean energy and
a green economy,” said Saeed Al Tayer, the managing director and chief executive of
Dewa.
“This vision is supported by the Dubai Clean Energy Strategy 2050 to increase the
share of clean energy in Dubai’s total power output to 7 per cent by 2020, 25 per cent
by 2030, and 75 per cent by 2050.”
The price of 7.3 cents per kWh for the fourth phase of the solar complex comes in as
more expensive on paper than phases 2 and 3 of the project, which delivered prices of
5.84 cents and 2.99 cents respectively using solar photovoltaic (PV) technology.
However the new CSP plant, while more expensive, will have the significant advantage
of being able to store energy for when the sun has gone down, something that is not
possible via PV technology.
Paddy Padmanathan, chief executive of Acwa Power, said that the world had made
great strides in utilising solar energy, and, along the way, was now able to deliver
increasing amounts of electricity consumed at a lower cost than fossil fuel alternatives.
“The achilles heel [until now] has been the fact that we hadn’t been able to store
electricity at a utility scale efficiently, so we haven’t been able to seriously contemplate
the idea that renewables could one day deliver all the electricity needs to every person
in the world,” he said.

UAE: Quality, safety top priority for Enec says CEO
TradeArabia News Service
The Emirates Nuclear Energy Corporation (Enec) is entirely focused on ensuring that its nuclear
power plants in Barakah, Abu Dhabi, are delivered to the highest standards of quality and safety,
said Enec CEO Eng Mohamed Al Hammadi told a major conference in London, UK.
A senior delegation from Enec, led by Al Hammadi participated in the World Nuclear Association
(WNA) Symposium.
During the opening session of the conference, Al Hammadi
shared a number of lessons learned on the quality and
safety-led development of the UAE Peaceful Nuclear Energy
Program with the international nuclear energy community.
On the cusp of becoming the 31st country to generate
electricity using peaceful nuclear energy, the UAE has set
the gold standard for new nuclear build and operations.
The UAE has not only illustrated its ability and commitment
to diversifying its energy mix but has demonstrated the
benefits of transparency, international cooperation, and development of local human capital.
“The UAE possesses unique know-how and experience in the delivery of mega projects across a
range of sectors, as highlighted in the delivery of the world’s largest nuclear plant under
construction, in Abu Dhabi.
As a result, we are steadily progressing on our journey to becoming a peaceful nuclear energy
nation, and we have achieved this with significant agility, adapting to different phases of the
complex project that is the Barakah plant. This has been made possible through constant
collaboration with our joint venture partner and prime contractor Kepco, the continued
development of our people, and transparent and consistent cooperation with the international
nuclear energy industry,” Al Hammadi said during his remarks at the opening session of the
conference.

In updating the audience on the current status of the UAE Peaceful Nuclear Energy Program, Al
Hammadi said: “To prepare for nuclear operations, we are entirely focused on ensuring that our
plant is delivered to the highest standards of nuclear quality and safety.
We also continue to dedicate significant attention to continuously developing our people and on
human performance, as these are fundamental to safe nuclear operations. We are working to
ensure that we have the right experts to conduct quality operations for a fully resourced plant. We
will not, under any circumstances, change the priorities of our program to let scheduling or any
other aspect prioritise our work. I am proud to say that safety, continuous improvement, and
excellence is what ENEC stands for.”
The UAE Peaceful Nuclear Energy Program and all of Enec’s activities are regulated by the
country’s nuclear regulator – the Federal Authority for Nuclear Regulation (FANR). Enec also
continuously engages with and utilises the expertise of an extensive network of organizations
whose members include some of the world’s most renowned professionals in nuclear energy,
including the International Advisory Board (IAB), the International Atomic Energy Agency (IAEA),
the World Association of Nuclear Operators (WANO) and the Institute of Nuclear Power
Operations (INPO).
Taking place between September 13 and 15 at the Park Plaza Westminster Bridge in London, the
WNA Symposium has brought together more than 600 nuclear energy professionals from more
than 30 countries. The symposium provides an annual high-level platform for discussion of the
challenges and opportunities shaping the global nuclear energy industry.
The project at Barakah is progressing steadily; as of July 2017, Unit 1 is more than 96 percent
complete. Unit 2 is more than 86 percent complete, Unit 3 is more than 76 percent, and Unit 4 is
more than 54 percent. Overall, construction of the four Units is now more than 82 percent
complete. All four units will deliver clean, efficient and reliable electricity to the UAE grid, pending
regulatory reviews and licensing. When the four reactors are completed, the Barakah Nuclear
Energy Plant will save up to 21 million tons of carbon emissions each year. -

Saudi Arabia said to plan nuclear power tender in October
Reuters ( images by NewBase)
Saudi Arabia's plans for nuclear follow the construction of the UAE's Barakah nuclear power plant.
due to come online next year. Arun Girija / Enec / AFP
Saudi Arabia is expected to launch a tender process for its first nuclear reactors as early as next
month and will reach out to potential vendors from countries including South Korea, France and
China, industry sources said.
The world's top oil exporter wants to start construction next year on two plants with a total capacity
of up to 2.8 gigawatts (GW), three industry sources said, as it follows Arabian Gulf neighbour the
United Arab Emirates in seeking atomic energy.
This will make it the second country in the Arab world to tap nuclear power as a way to diversify its
energy supply for its 32 million population.
While a possible multi-billion-dollar Saudi tender would be smaller than those being considered in
India and South Africa, Saudi Arabia's deep pockets and the lack of any anti-nuclear movement in
the country could make it one of the strongest prospects for an industry struggling for contracts
following the 2011 nuclear disaster in Fukushima, Japan.

"Competition will be fierce," an industry source said, adding Saudi Arabia was expected to send a
Request for Information (RFI) to suppliers in October, marking the official start of the tender
process following feasibility studies.
Saudi Arabia will likely provide more detail on
the plans at the general conference of the
International Atomic Energy Agency, the
United Nations nuclear watchdog, in Vienna
next week, the sources said.
The plants are part of long-standing plans to
diversify the Opec member's energy supply
and has received extra momentum as part of
its Vision 2030, a sweeping economic reform
programme launched last year by Crown Prince Mohammed bin Salman.
The government agency tasked with the nuclear plans, The King Abdullah City for Atomic and
Renewable Energy (KACARE), did not immediately respond to requests for comment.
In the longer-term, Saudi Arabia is considering building 17.6GW of nuclear capacity by 2032,
KACARE says on its website. That is the equivalent of about 17 standard nuclear reactors
making it overall the biggest contract in the world, after South Africa and India.
A South Korea-based industry source with direct knowledge of the matter confirmed Riyadh was
expected to issue the RFI for the first two plants in October to five potential bidders - South Korea,
China, France, Russia and Japan.

The target is to pour the first concrete of reactor casing in 2018, a Saudi source familiar with the
plans said, although nuclear construction timelines frequently face delays.
France has spent several years trying to make its case for selling its reactors to the kingdom.
A top French minister and chief executives of French utility EDF and reactor builder Areva visited
the kingdom in 2013 while a Saudi delegation led by KACARE chief Hashim bin Abdullah Yamani
went to Paris in July to discuss Riyadh's atomic plans.
KACARE also discussed feasibility studies to build the first two reactors in the kingdom with
Chinese officials in Beijing last month, pan-Arab media reported. Russia's state-owned nuclear
company Rosatom has also been in talks with KACARE about Saudi Arabia's atomic ambitions.
They will all face steep competition from US, Japanese and South Korean consortia.
Westinghouse-Toshiba has deep ties with the Middle East, and a South Korean-led consortium
dealt the French a humiliating blow with its surprise win of a $40 billion contract in Abu Dhabi in
2009.

Norway sees decrease in August oil production
Source: NPD
The Norwegian Petroleum Directorate reports that preliminary production figures for August 2017
show an average daily production of 1,918,000 barrels of oil, NGL and condensate, which is a
decrease of 41,000 barrels per day compared to July. Total gas sales were 10.4 billion Sm3
(GSm3), which is a decrease of 0.1 GSM3 from the previous month.
Average daily liquids production in August was: 1,548,000 barrels of oil, 340,000 barrels of NGL
and 30,000 barrels of condensate. The oil production is about 1.4 percent below the oil production
in August last year and is about 1.6 percent below the NPD’s prognosis for August 2017. The oil
production is about 0.5 percent above the prognosis so far this year. Production remains at the
same level as in July. Gas production is also in August above the forecast.
The total petroleum production for the first eight months in 2017 is about 159.6 million Sm3 oil
equivalents (MSm3 o.e.), broken down as follows: about 63.0 MSm3 o.e. of oil, about 14.9 MSm3
o.e. of NGL and condensate and about 81.7 MSm3 o.e. of gas for sale. The total volume is 4.0
MSm3 o.e. higher than in 2016.
Final production figures from July 2017 show an average daily production of about 1.598 million
barrels of oil, 0.361 million barrels of NGL and condensate and a total of 10.5 billion Sm3 saleable
gas production.

Uganda signs oil exploration deal with Australia's Armour Energy
Source: Reuters / energy-pedia
Uganda signed an oil exploration deal with Australia’s Armour Energy on Thursday, the first
under a protracted competitive licensing round launched in 2015.
The production-sharing agreement covers Kanywataba Block, a 344 sq km area in the
Albertine rift basin near the border with Democratic Republic of Congo, officials said at the signing
in the Ugandan capital Kampala.
Kanywataba was previously licensed
to existing operators,
Frances’ Total, China’s CNOOC,
and Britain’s Tullow. But the three
firms, which now own all of Uganda’s
crude discoveries, gave back control
of the block to the government in
2012 after explorations failed to find
oil.
Energy Minister Irene Muloni said
low oil prices meant 'protracted
negotiations' with firms that
participated in the licensing round.
At the launch of the round, six blocks
covering 2,674 sq kms were offered
and 19 firms initially expressed
interest. Four - Armour and three
Nigerian firms - emerged as winners,
and Armour is the first to sign an
agreement with the government.
The six blocks on offer
were: Ngassa (410 Km2) in Hoima
District, Taitai & Karuka (565
Km2) in Buliisa District, Ngaji (895
Km2), Rukungiri & Kanungu
Districts, Mvule (344 Km2) in Moyo
and Yumbe Districts together
with Turaco (425 Km2) and Kanywantaba (344 Km2) in Ntoroko District.
Muloni said the cabinet had already approved deals with one of the Nigerian firms, Oranto
Petroleum International, and the government expected to sign deals with the company in
three weeks’ time.
Uganda discovered petroleum in the Albertine basin in 2006. Gross reserves are estimated at 6.5
billion barrels and recoverable oil estimated at between 1.4 billion-1.7 billion barrels.
The first batch of licenses awarded in the early 2000s were handed out on a first come, first
served basis.

But after the discovery of commercial deposits Uganda enacted new laws to manage the sector.
Under those laws exploration licenses must be granted on a competitive basis.
Crude production has been repeatedly delayed by tax spats and disagreements over development
strategy. It is now expected in 2020 when an export pipeline through neighboring Tanzania is due
to be completed.
'The exploration and development of oil in Uganda is a very exciting opportunity for us,' Armour’s
Chief Executive Roger Cressey told the press conference.
Armour’s exploration license is valid for four years.
Following the award of the Kanywataba Block to Armour Energy, international resource company
creator DGR Global announced that it has entered into an agreement with armour Energy. DGR
Global said that the Kanywataba Block would be placed into a Specific Project Company ('SPC')
for the purposes of the agreement, subject to Ugandan Government consent.
Under these arrangements, Armour will retain 16.82% while DGR will meet the tenement expendit
ure and work program commitments for the first two year period and indemnify Armour

China CEFC Energy Star Unsated After $9 Billion Rosneft Deal
Blommberg - Aibing Guo
A $9 billion stake in one of the world’s biggest oil companies may not be enough for CEFC China
Energy Co.
A week after China’s largest private energy company struck a deal for a chunk of Rosneft PJSC,
it’s been pegged as a possible investor in a Russian metals and power business and a free-trade
zone in Georgia’s Black Sea port of Poti.
The Rosneft deal has thrust CEFC into the spotlight, transforming it from an obscure
conglomerate focused mainly on the former Soviet Union and eastern Europe into a conspicuous
player on the world energy stage, mixing with the likes of Glencore Plc. This rapid metamorphosis
is raising curiosity about the company’s origins, how close it is to the government and how it’s
funding the expansion.
“It’s surprising because this little-known company has been able to do the type of large-scale
transactions that are left to state-owned energy companies,” said Laban Yu, head of Asia oil and
gas equities at Jefferies Group LLC in Hong Kong. “Many people have never heard of it and don’t
know where the funds for these acquisitions are coming from.”

Starting as a small trading company in 2002, CEFC bought assets including storage, terminals,
refineries and oil fields, as well as financial
units. Now, its Rosneft deal is the biggest
overseas Chinese oil acquisition since
Cnooc Ltd.’s $15 billion takeover of
Canada’s Nexen Inc. announced in 2012,
according to data compiled by Bloomberg.
In its statement about the purchase, CEFC
described itself as the country’s largest
private oil and gas company, with 50,000
employees and revenue of more than $40
billion.
The Chinese company is considering the
acquisition of a 75 percent stake in the Poti
Free Industrial Zone, Giorgi
Gakharia, Georgia’s economy minister,
said in an interview in Tbilisi on
Wednesday. Gakharia said he plans to
travel to China sometime next week to sign
the deal for the port area, which includes
chemical and steel industries and light
manufacturing.
Belt, Road
Meanwhile, En+ Group Ltd., the power and metals business controlled by Russian billionaire Oleg
Deripaska, is looking at CEFC as a possible cornerstone investor for a planned initial public
offering, according to two people with knowledge of the matter.
More active outside of China than at home, CEFC has followed President Xi Jinping’s efforts to
boost investment and construction across a trade route between China, Asia and Europe, in what
is known as the "Belt and Road" initiative, amid his government’s encouragement of private
enterprise. Company officials joined Xi’s visit to Russia in July.
At the same time, a focus on energy may leave the company unaffected by a recent clampdown
on “irrational” overseas investments -- a campaign that’s put the likes of HNA Group Co., Fosun
International Ltd., Anbang Insurance Group Co. and Dalian Wanda Group Co. under scrutiny.
Regulators list oil and mining exploration under its encouraged category for investment.
Oil Assets
CEFC’s Chairman Ye Jianming told Fortune magazine last year that the company bought at
auction its first oil trading assets, which were once owned by Lai Changxing, who fled to Canada
in 1999 to avoid accusations of smuggling and is now serving a life sentence in China. Ye denied
having connections to the country’s military in the Fortune interview. He is also the biggest
shareholder of CEFC International Ltd., an oil-trading unit listed in Singapore, according to its
latest annual report.
Ye continues adding to holdings that span Africa, Europe -- include a brewery and a soccer
team in the Czech Republic -- Central Asia, the Middle East and now Russia. In February, CEFC
signed a deal with Abu Dhabi National Oil Co. for a share of an onshore venture that includes
state-run giant China National Petroleum Corp., as well as international oil majors BP Plc and
Total SA. In March, it agreed to buy a stake in the U.S. broker Cowen Group Inc.

India’s Biggest Electricity Producer Almost Triples Gas Use
By Rajesh Kumar Singh and Debjit Chakraborty
NTPC Ltd., India’s biggest electricity producer, has boosted natural gas-fired generation as a drop
in hydropower, nuclear and wind energy increases demand for thermal power, according to
company officials with knowledge of the situation.
Plant utilization at NTPC’s gas-fired stations has almost tripled to 60 percent in the past three to
four days, said the officials, who asked not to be identified, citing company policy. That compares
with an average plant utilization of about 24 percent for NTPC’s gas-fired stations in the three
months ended June, when summer demand peaks.
To meet the sudden increase in demand, NTPC is buying about 10 million cubic meters re-
gasified liquefied natural gas daily from the state-run gas distributor, GAIL India Ltd., on a spot
basis, the people said. GAIL imports the fuel as liquefied natural gas.
A recent drop in output from hydro, wind and nuclear power plants has opened up an opportunity
for gas-fired plants, which on average run at about a fifth of their capacity because they are rarely
able to compete with cheaper fuels. GAIL Chairman B.C. Tripathi said earlier this week that the
company is witnessing a surge in demand for gas from power producers including NTPC and
Indraprastha Power Generation Co., which supplies power in the nation’s capital New Delhi.
NTPC Chairman Gurdeep Singh didn’t respond to a call seeking comment on his mobile phone.
His office said he won’t be available to comment Friday.
Temporary Demand
“One reason for the spurt in gas power demand is that all of a sudden in Gujarat, wind power has
come down in the last week,” according to Rajender Singh, technical director at the nation’s
biggest importer of the super-chilled fuel, Petronet LNG Ltd. “The wind season is over slightly
earlier, normally it lasts till the end of September. That’s why power plants, especially in Gujarat,
have started consuming more gas.”

A rainfall deficit in some parts of the country has cut hydropower generation, while a 1-gigawatt
nuclear reactor at the Kudankulam plant has been under a maintenance shutdown for over a
month, reducing nuclear power output. Coal-fired power generation surged 17 percent in August
to compensate for the shortfall in
electricity from other sources.
Still, some gas-plant operators say
the rise in demand may be
temporary and are holding back
from restarting their turbines. Lanco
Infratech Ltd., which operates gas-
fired power plants in southern state
of Andhra Pradesh, is still not
finding buyers for its gas-fired
electricity, according to its finance
head, T. Adi Babu.
“While some more gas plants may have raised output, many more would be waiting to see if the
demand sustains for a longer time,” said Debasish Mishra, a partner at Deloitte Touche Tohmatsu
LLP in Mumbai. “Most of the plants are combined cycle, and they need a certain utilization level to
run viably.”

US: Oil and chemical spills from Hurricane Harvey big, but
dwarfed by Katrina … Reuters ( images by NewBAse )
More than 22,000 barrels of oil, refined fuels and chemicals spilled at sites across Texas in the
wake of Hurricane Harvey, along with millions of cubic feet of natural gas and hundreds of tons of
other toxic substances, a Reuters review of company reports to the U.S. Coast Guard shows.
The spills, clustered around the heart of the U.S. oil industry, together rank among the worst
environmental mishaps in the country in years, but fall far short of the roughly 190,000 barrels
spilled in Louisiana in 2005 after Hurricane Katrina - the last major storm to take dead aim at the
U.S. Gulf Coast.
Harvey slammed ashore in Texas on Aug. 26, unleashing record flooding around Houston that
destroyed countless homes, displaced around a million people and killed scores.
The U.S. Environmental Protection Agency warned people affected by the storm to avoid
floodwaters, saying they could contain bacteria and other dangerous substances, but the agency
has so far provided few details about spills. The EPA said earlier this week it was responding to
more than a dozen spills in the wake of Harvey, but said it could not immediately provide volume
estimates.
The U.S. Coast Guard reports showed over 22,000 barrels of crude oil, gasoline, diesel, drilling
wastewater, and petrochemicals spilled from refineries, storage terminals and other facilities in the
days after the storm.
Nearly half of those came from a 10,988-barrel spill of unleaded gasoline from Magellan
Midstream Partners’ storage facility in Galena Park, Texas, according to the reports, confirmed by
a company official.
The U.S. Coast Guard reports showed over 22,000 barrels of crude oil, gasoline, diesel,
drilling wastewater, and petrochemicals spilled from refineries, storage terminals and
other facilities in the days after the storm.

“We expect clean-up operations to be completed within a few weeks,” the company said in an
email on Thursday. Most of the gasoline had been removed, it said, including quantities that
spilled offsite and into the Houston Ship Channel, and remaining work was mainly focused on
removing contaminated soil.
The Coast Guard filings also showed some 365 tons of toxic chemicals like sulfur dioxide,
ammonia, toluene, benzene, and carbon monoxide escaped from facilities during the storm.
In addition, some 27 million cubic feet (765,000 cubic meters) of natural gas, 1,000 tons of
asphalt, and unknown quantities of other substances from more than 200 other incidents also
escaped, according to the data.
Officials for the Coast Guard and the EPA did not immediately respond to requests for comment
on the filings.
As some spill estimates were preliminary, it was too early to assess pollution damage from the
storm, said Tom Pelton, a spokesman for environmental advocacy group the Environmental
Integrity Project.
One company is already raising its spill estimates: Valero Energy Corp told the EPA it probably
underestimated the emissions of dangerous chemicals when the roof of a storage tank at its
Houston refinery collapsed in the storm.
Valero defended its handling of the spill, noting its initial calculation came during the storm and
crews kept the spill within its grounds. “We have been diligent in responsibly addressing the tank
release and taking steps to minimize any potential impacts,” it said. Air monitoring systems that
showed elevated benzene and other emissions likely included sources other than its own plant, it
added.
Katrina caused 190,000 barrels of oil spills along the Louisiana coastline, according to Donald
Davis, the administrator of the Louisiana Applied Oil Spill Research and Development Program,
who presented his findings to the EPA in 2006.

Oman Oil’s Oxea plants in Texas unscathed by Hurricane Harvey
Oman Observer - Conrad Prabhu
The global chemical company Oxea, which is wholly owned by Oman Oil Company (OOC) — the
Omani government’s energy and strategic investment arm — has confirmed that its chemical
plants in Texas, USA, were largely spared the devastation wrought by Hurricane Harvey when the
storm slammed into the Texan coast earlier this month.
Oxea’s production facilities located in Bay City and Bishop in Texas resumed operations over the
weekend after nearly two weeks in controlled-shutdown mode as a safety precaution that went
into effect just before the storm made landfall on September 1.
In a statement issued out of the group’s
headquarters in Germany at the weekend, Salim
al Huthaili, CEO of Oxea, said the storm, while
leaving the plants relatively unscathed, did
impact the lives of some of its employers.
“The safety of our employees was of primary
concern when we shut down the Bay City and
Bishop plants and prepared for the storm. Our
thoughts are with the huge number of people
whose lives have been impacted by Hurricane
Harvey,” he said. “Now we are working closely with our employees that were significantly affected
by the storm and who are dealing with damage and flooding of their personal property and impact
on their family and friends. Many Oxea colleagues have volunteered labour, services, and
supplies and donated to relief efforts,” the CEO added.
Oxea, one of the world’s largest producers of oxo intermediates and oxo derivatives, was acquired
by Oman Oil Company in December 2013, a move that effectively catapulted Muscat-based OOC
into the ranks of the world’s top chemicals producers.
Oxea operates a global network of plants offering a total production capacity of over 1.3 million
tonnes per annum of oxo intermediates and oxo derivatives, such as alcohols, polyols, carboxylic
acids, specialty esters, and amines. These intermediate products are used in the production of a
wide array of products, including paints and coatings, lubricants, cosmetics and pharmaceutical
products.
In Texas, Oxea is currently focused on gradually ramping up operations at its Bay City and Bishop
production sites. The company, having revoked Force Majeure conditions, plans to return to full
capacity once the logistics challenges in the wider Texas region, with transport infrastructure
damaged in some areas, are resolved. Hurricane Harvey, billed as the most damaging storm in
US history, is believed to have caused damage estimated at $200 billion.
Significantly, Oxea also foresees no major challenges in the resumption of construction work on
its new world-scale propanol production unit coming up alongside its existing plant in Bay City.
The Propanol-2 plant, due to be completed next year, will boost Oxea’s propanol production
capacity by around 100,000 metric tonnes/year, and its propionaldehyde capacity by 40,000
mt/year.
Propanol is a key ingredient in the manufacture of a range of products such as adhesives, coatings,
printing inks and pharmaceuticals formulations. Propionaldehyde, on the other hand, is used in the
production of food preservatives, plasticisers, plastics, rubber chemicals and pharmaceuticals.

NewBase 17 September 2017 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Caps Best Week Since July as Demand Forecasts Improve
Bloomberg + Reuters + NewBase
Oil had its biggest weekly gain since late July as Texas refineries recovering from Hurricane
Harvey processed more crude and global demand forecasts brightened.
Futures rose 5.1 percent this week in New York, settling just below the $50-a-barrel threshold
that’s kept the industry in thrall. The increase was buoyed by higher demand forecasts from the
International Energy Agency and expectations OPEC and its partners will extend output cuts
beyond the March expiration date of their deal.
West Texas Intermediate futures for October delivery ended the session on the New York
Mercantile Exchange at $49.89, unchanged from the highest close since July 31 on Thursday.
See also: Ex-Shell Boss Marvin Odum Tapped to Lead Houston Recovery Effort
Brent for November settlement closed 15 cents higher at $55.62 a barrel on the London-based
ICE Futures Europe exchange. Prices advanced 3.4 percent this week. The global benchmark
crude traded at a premium of $5.18 to November WTI.
“The narrative in the market is that demand has really picked up,” said John Kilduff, a partner
at New York-based hedge Again Capital LLC. “As a result, we’ve gotten this push higher.”
Oil price special
coverage

Nearly a quarter of U.S. refining capacity was shuttered in the wake of Harvey. Two weeks later,
only three Gulf Coast refineries remain shut, according to the Department of Energy. The rest --
including Motiva Enterprises LLC’s Port Arthur refinery, the nation’s largest -- are gradually
coming back online, helping boost crude demand.
At the same time, the Paris-based IEA said on Wednesday it expects global demand to climb this
year by the most since 2015 while the Organization of Petroleum Exporting Countries and its
partners were said to be discussing an extension of its deal to cut output beyond its March
expiration.
"People are looking for the price to go ahead and settle above $50 a barrel, but they need some
more than just the current news," Michael Lynch, president of Strategic Energy & Economic
Research in Winchester, Massachusetts, said by telephone. "We need a couple good inventory
reports or perhaps some bearish supply data from Libya or from the U.S. shale patch."
Meanwhile, the U.S. oil rig count fell for the fourth time in five weeks, according to Baker Hughes
data released Friday. Rigs decreased by seven to 749. The decline included drops in Texas’
Permian and Eagle Ford shale basins.
“The feel-good factor appears to
have returned to the oil market,”
said Stephen Brennock, an
analyst at PVM Oil Associates
Ltd. “Underpinning the prevailing
sentiment is the positive
afterglow of this week’s frenzy of
bullish oil demand forecasts from
the leading energy agencies.”

NewBase Special Coverage
News Agencies News Release 16 Sep. 2017
EIA projects 28% increase in world energy use by 2040
Source: U.S. Energy Information Administration, International Energy Outlook 2017
The U.S. Energy Information Administration's latest International Energy Outlook 2017 (IEO2017)
projects that world energy consumption will grow by 28% between 2015 and 2040. Most of this
growth is expected to come from countries that are not in the Organization for Economic
Cooperation and Development (OECD), and especially in countries where demand is driven by
strong economic growth, particularly in Asia.
Non-OECD Asia (which includes China and India) accounts for more than 60% of the world's total
increase in energy consumption from 2015 through 2040.
Through 2040, the IEO2017 projects increased world consumption of marketed energy from all
fuel sources, except for coal demand, which is projected to remain essentially flat. Renewables
are expected to be the fastest-growing energy source, with consumption increasing by an average
2.3% per year between 2015 and 2040.
The world’s second fastest-growing source of energy is projected to be nuclear power, with
consumption increasing by 1.5% per year over that period.

Even though IEO2017 expects the nonfossil fuels (renewables and nuclear) to grow faster than
fossil fuels, fossil fuels still account for more than three-quarters of world energy consumption
through 2040.
Natural gas, which has a lower carbon intensity than coal and petroleum, is the fastest-growing
fossil fuel in the outlook, with global natural gas consumption increasing by 1.4% per year. The
relatively high rate of natural gas consumption growth is attributed to abundant natural gas
resources and rising production—including supplies of tight gas, shale gas, and coalbed methane.

Although liquid fuels—mostly petroleum-based—remain the largest energy source throughout the
IEO2017 projections, the liquids share of world marketed energy consumption is projected to fall
slightly, from 33% in 2015 to 31% in 2040. As oil prices rise, energy consumers are expected to
turn to more energy-efficient technologies and switch away from liquid fuels where possible.
Compared with the strong growth in coal use in the 2000s, global coal use remains flat in EIA’s
international projection. Coal is increasingly replaced by natural gas, renewables, and—in China
and a few other countries—nuclear power for electricity generation. Demand for coal in industrial
processes is also expected to slow.
China is the world’s largest consumer of coal, but coal use is projected to decline in China by
0.6% per year from 2015 to 2040. In OECD countries, coal’s expected decline is similar, falling by
0.6% per year.
The coal share of total world energy consumption declines significantly over the projection period,
from 27% in 2015 to 22% in 2040. World coal consumption would be even lower in 2040 were it
not for the projected increases in its use by non-OECD Asian nations outside of China.
EIA’s IEO2017 presents an assessment of long-term world energy markets. IEO2017 energy
consumption projections are provided for 16 regions of the world divided according to OECD and
non-OECD membership.

Projections for the United States in IEO2017 are consistent with those released in the Annual
Energy Outlook 2017. The IEO2017 report focuses on energy markets through 2040, but all
projections of energy consumption and production are available on an annual basis through 2050
in the International Energy Outlook online table browser.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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 25 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

New base 17 september2017 energy news issue 1072 by khaled al awadi

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to New base 17 september2017 energy news issue 1072 by khaled al awadi

Similar to New base 17 september2017 energy news issue 1072 by khaled al awadi (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

New base 17 september2017 energy news issue 1072 by khaled al awadi