New base 19 january 2020 energy news issue 1399 by khaled al awadi-

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NewBase Energy News 19 January 2021 - Issue No. 1399 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: Abu Dhabi Targets Hydrogen as Future Export Fuel
Bloomberg + NewBase
Abu Dhabi’s government-run oil company is teaming up with two of its sovereign wealth funds to
turn the petroleum-rich emirate into an exporter of blue and green hydrogen.
Abu Dhabi National Oil Co. formed an alliance with Mubadala Investment Co. and ADQ to produce
hydrogen from renewable energy, known as green hydrogen, ADQ said in a statement. Adnoc will
independently develop blue hydrogen, which is produced from natural gas in a process that
captures emissions of carbon dioxide.
In a related deal, Abu Dhabi Future Energy Co., also known as Masdar, agreed with Siemens
Energy AG to develop a facility to make green hydrogen at Masdar City in Abu Dhabi, Mubadala
said in a statement. Munich-based Siemens Energy is already building a hydrogen demonstration
plant at the Mohammed bin Rashid Al Maktoum Solar Park in the neighboring emirate of Dubai.
Abu Dhabi, the capital and largest sheikhdom in the United Arab Emirates, will market both versions
of the fuel overseas and at home.
Some Middle Eastern states that built their fortunes on oil are seeking to develop hydrogen as fuel,
given a shift among some of their buyers toward less-polluting alternatives to crude. Saudi Arabia’s
energy minister has said he wants the kingdom -- the world’s biggest oil exporter -- to become
the largest shipper of hydrogen.

Abu Dhabi, like Saudi Arabia, produces natural gas, which it could use to develop blue hydrogen. It
also has ample sunshine, which can be harnessed to make green hydrogen. However, the
technology is expensive, and both blue and green hydrogen have yet to become cost-competitive
with fossil fuels.
Adnoc produces around 300,000 tons of hydrogen annually for its downstream operations, and it
intends to expand output to more than 500,000 tons, according to a statement. It’s “well-placed to
build on its advantaged position as a major natural-gas reserves holder and producer,” according
to ADQ.
Abu Dhabi Starts $1.6 Billion Supply-Chain Financing for SMEs
Abu Dhabi started a 6-billion dirham ($1.6 billion) supply-chain financing for small and medium-
sized enterprises to help them weather the impact of the coronavirus.
The first phase of the initiative targets the healthcare sector and will partner the National Health
Insurance Co., also known as Daman, and First Abu Dhabi Bank PJSC, according to Abu Dhabi’s
Department of Finance.
It aims to facilitate quick payment of SMEs’ receivables and reduce their costs of working capital, it
said.
An AED 6 billion supply chain financing initiative has been launched by the Abu Dhabi Department
of Finance to increase liquidity for SMEs in a variety of sectors. The first phase, delivered in
partnership with Daman and FAB, is focused on the healthcare sector.

U.A.E: Abu Dhabi-funded solar project to light up Somaliland
WAM + NewBase
Abu Dhabi Fund for Development (ADFD) funded solar energy project at Berbera City in the African
nation of Somaliland has been connected to the local electricity grid. It will meet the increasing
demand of the entire city of approximately 50,000 people.
Set up at a cost of AED29.3 million, the 7-megawatt Berbera Hybrid Mini-grid Project is seen as a
game changer for the city, as it will significantly bring down energy tariffs, apart from supporting
economic development and reducing the country’s carbon footprint.
The expansion of Berbera city has created additional demand, which the plant will fulfil.
The project was launched by Abdirahman Abdilahi Ismail, Vice President of the Republic of
Somaliland, under the auspices of Jama Mohamoud Egal, Minister of Energy and Minerals, in the
presence of officials and dignitaries from both sides.
Commenting on the occasion, Mohammed Saif Al Suwaidi, Director-General of ADFD, expressed
satisfaction over the completion of the project in a record time of seven months, from March to
October 2020, overcoming the obstacles created by the coronavirus pandemic.

"Our renewable-energy project in Berbera will play a strategic role in our larger effort to sustainably
drive up the economy and raise the standard of living in benefited area," he said, adding that its
benefit would be felt at many levels.
"The demand for energy is growing continuously in Berbera as the population swells, stated Al
Suwaidi.
"This project will supply energy at a comparatively affordable price as it will replace the costly diesel
with solar energy. That will lead to heightened economic activity, financial savings, reduction of
carbon emissions and, therefore, improve the air quality. This will bring a qualitative transformation
in the city," he added.
Jama Mohamoud, thanked ADFD for
completing the project in record time
notwithstanding the many
challenges.
"It came at a time when we needed it
the most," he said, commending the
role of the UAE and the Fund in
supporting his country’s economy
through infrastructure development,"
stated Mohamoud.
"This is the first of its kind project in the
country that will benefit individuals and
businesses, while supporting the
expanding port infrastructure. More
importantly, its positive effect will be
felt beyond the city borders," said the
energy minister.
"The project will stabilise electric
supply in the city and make electricity
more affordable to its estimated
50,000 people. The power plant will
further support commercial
development and port expansion. We
are also happy to be joining the rest of
the world in our efforts to tackle
greenhouse emissions," he added.
A MoU was signed on the sidelines of the event, which was witnessed by ADFD, transferring the
plant’s ownership to the Ministry of Energy and Minerals on behalf of the Government of Somaliland
and appointed a consulting company, Coretec, to provide necessary support to the Ministry of
Energy and Mineral Resources in developing an overall operational structure for the project.
The deal agreed in principle on a public-private partnership (PPP) to operate and maintain the solar
plant, the first of its kind in the country. "This could well serve as a reference model for the rest of
the country," said the minister.

U.A.E Masdar acquires 50% stake in two wind farms in Poland
The National - Mary Sophia + NewBase
Masdar acquired a 50 per cent stake in two wind farms in Poland, further expanding the Abu Dhabi
clean energy company's portfolio. Work on the wind farms, which are currently under construction,
are expected to be completed by the end of 2021
The 37.4 megawatt Mlawa Wind Farm in Mazowieckie in northern Poland and the 14 megawatt
Grajewo Wind Farm in Podlaskie in the country's north-east will be developed in a joint venture with
Taaleri SolarWind II Fund, Masdar said in a statement on Monday. Taaleri SolarWind II Fund is
managed by Helsinki-based renewable energy investor Taaleri Energia, which is Masdar's joint
venture partner in central and eastern Europe.
“As one of the world’s leading renewable energy companies, Masdar is proud to enter into the Polish
market, which offers considerable scope for further growth and diversification of our renewable
energy portfolio,” Ahmed Al Awadi, director of business development and investment at Masdar's
clean energy arm.
“We look forward to supporting Poland’s renewable energy efforts, and to further strengthening our
partnership with Taaleri Energia.”
With a combined installed capacity of 51.4 megawatts, the projects will together produce 192
gigawatt-hours of electricity annually –enough to meet the energy needs of approximately 90,000
households. They will also help offset 146,000 tonnes of carbon dioxide each year, Masdar said.
Work on the wind farms, which are currently under construction, is expected to be completed by the
end of 2021.
Project financing is being provided by the European Bank for Reconstruction and Development
(EBRD) and DNB Polska, the statement added.
Both Masdar and Taaleri Energia have previously partnered in the 158 MW Čibuk 1 wind farm in
Serbia and in the Baynouna Solar Energy Project, a 200 MW solar PV plant in Jordan, which will be
the largest in the country.
The latest acquisitions have significantly helped expand Masdar's wind portfolio.
Last year, the renewable energy firm acquired stakes in eight projects – out of which three are wind
farms – being developed by EDF Renewables North America unit.

Egypt: Apex International Energy find oil in Western Desert
Source: Apex
Apex International Energy, which is backed in part by UK energy investment firm Blue Water
Energy, has announced a new oil discovery in Southeast Meleiha Concession (SEM), located in the
Western Desert of Egypt.
The discovery was achieved at the SEMZ-11X well located 10 kms west of Zarif field, the nearest
producing field. The well was drilled to a total depth of 5,700 feet and encountered 65 feet of oil pay
in the Cretaceous sandstones of the Bahariya and Abu Roash G formations.
Testing of the Bahariya resulted in a peak rate of 2,100 barrels of oil per day with no water.
Additional uphole pay exists in the Bahariya and Abu Roash G formations that can be added to the
production stream in the future.
The SEMZ-11X was Apex’s second exploration well in an ongoing three-well program following the
acquisition and processing of 1,342 sq kms of 3D seismic data in 2019-2020. The first well, the
SEMZ-1X drilled last month, also discovered Bahariya oil with 17 feet of indicated pay. Located 23
kms west of Zarif field, it was also drilled to 5,700 feet and tested at a rate of 100 barrels of oil per
day. Apex plans to fracture stimulate the 1X in the future to increase the producing rate.
'These oil discoveries are an important step in our company’s development and in validating our
strategy to grow an oil and
gas company of substance
through a combination of
drilling and
acquisitions.' said Apex’s
founder and CEO, Roger
Plank. 'The presence of
hydrocarbons in both the 1X
and 11X confirms our
geologic model and
significantly enhances the
prospectivity of a number of
other mapped prospects
and leads across our 2,534
sq kms.'
The third well of the current
drilling campaign, the
SEMZ-3X, is scheduled to commence later this month. Apex plans to drill the 3X to a depth of 5,700
feet in search of oil in the Bahariya formation. The SEMZ-3X location is five kilometers east of Zarif
field, which also produces from the Bahariya.
Apex holds a 100% working interest in the SEM exploration concession, encompassing 2,534 sq
kms. The company acquired the concession interest through the 2016 exploration bid round of the
Egyptian General Petroleum Corporation (EGPC) and signed the concession agreement on August
29, 2017.
Tom Maher, Apex’s President and COO based in Cairo, commented: 'We look forward to working
together with our partners at EGPC to further explore and develop the considerable potential of our
concession and to expeditiously bring online production from this first discovery.'

Saudi group DT to set up solar energy containers at Neom site
Copyright 2021 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
This comes as part of the kingdom's efforts towards a cleaner and more energy-sustainable future
Saudi-based Desert Technologies, an international developer, systems integrator and innovative
products company providing turn-key technology solutions in the sustainable power, water and
transport sectors, is set to launch Sahara Containerized Solar Generator (CSG) in collaboration with
Green Corp Konnection (GCK) to power part of the bivouac in Neom during the Dakar Rally.
This comes as part of
the kingdom's efforts
towards a cleaner and
more energy-
sustainable future, a
green installation at this
year’s Dakar Rally’s
Neom bivouac has set
the stage for ramping up
solar energy provisions
across the kingdom.
Sahara is an
international product,
that has been launched
in Saudi Arabia in line
with vision 2030 and the
reduction of
dependency on oil. The
solution is fitted off-grid
projects that require a cheaper and sustainable alternatives to diesel generators and other energy
sources.
The 40ft Sahara container can power about 100 households in remote villages in Africa, providing
energy day and night to cover the basic needs. The solution is modular and can be sized case by
case to meet different demand loads; households, schools, commercial activities, it stated.
In addition to saving the environment, the renewable energy industry creates long-term sustainable
jobs that are tailored at the need of the future of the labor market, said a top official.
"Our integrated approach from inception guaranteed long-term sustainable growth of the industry
and to ensure job creation," remarked Nour Mousa, the CEO of Desert Technologies.
"Creating jobs that did not exist before, would not be created otherwise, and are permanent. The
permanent importation of skills and technology that are new in the region and contribute directly to
the creation of a Knowledge based economy," stated Mousa.
According to Khaled Sharbatly, Managing Partner, there is a bright future for the energy industry
which is localized and can compete globally.
"The Saudi 2030 Vision is that of $200 billion in renewables to build factories and produce around
$30 million solar panels in the kingdom and this could generate more than 100 000 jobs," he added.-

Russia Prepares Earliest-Ever Arctic LNG Shipment to Asia
Bloomberg - Irina Reznik
Russia is preparing to make the earliest-ever shipment of liquefied natural gas to Asia, taking
advantage of thinning ice in the Arctic Ocean and paving the way for a record-long navigation
season this year.
The super-chilled cargo from Novatek PJSC’s Yamal LNG facility in early May will beat last year’s
record for the start of eastbound voyages through the Northern Sea Route by almost two weeks if
the plan works out, according to people familiar with the situation. It will travel with an ice-breaker.
The Northern Sea Route, stretching more than 3,000 nautical miles (5,556 kilometers) between the
Barents Sea and the Bering Strait, is the shortest passage between Europe and Asia. Yet its eastern
part is usually shut for navigation for several months at the start of the year due to thick ice, limiting
shipment potential.
Its increased use underscores how quickly the pace of climate change is accelerating in the Earth’s
northernmost regions.
The exact timing of the LNG shipment will depend on the thickness of the ice and weather
conditions, said the officials, who asked not to be identified as the schedule is not public or finalized.
“The possibility of such a voyage in May is under discussion,” Nikita Sekretarev, spokesperson for
Russian shipping company Sovcomflot PJSC, said declining to provide further details. Sovcomflot
provides the Christoph de Margerie tanker to Novatek’s Yamal LNG project.
An Arctic tanker loading liquefied natural gas at the Yamal LNG
plant in the port of Sabetta, Russia.

Russia’s state nuclear corporation Rosatom, which operates the Northern Sea Route, declined to
comment on the schedule.
Russia expects the passage to rival the Suez Canal as Arctic ice thins out. But climate experts warn
that an increase in ocean-going vessels through the route could cause more damage to the
environment.
Last year saw another period of intense heat. Especially in parts of the Arctic and northern Siberia,
where temperatures in some regions were more than 6 degrees Celsius higher than average.
The warming allowed Novatek to send an eastbound LNG cargo via the NSR with ice-breaker
support in late May in 2020 -- the earliest start to the navigation season in the area so far. Shipments
continued to Asia through January, a record-long navigation season in the eastern Arctic.
February Record
Earlier this month, Novatek sent two LNG ice-class tankers, the Christophe de Margerie and the
Nikolay Yevgenov, to China through the NSR. The vessels don’t need ice-breaker support as the
current conditions in the eastern Arctic are mild, according to Rosatom.
The Christophe de Margerie crossed the Arctic and reached Cape Dezhnyov, located between the
Chukchi Sea and the Bering Strait, late Saturday evening Moscow time, sailing 2,474 nautical miles
in almost 11 days, according to Sovcomflot’s statement emailed on Monday.
The voyage confirms that “commercial transportation of cargoes in the eastern area of Russia’s
Arctic in autumn-winter season is possible for one to two months longer, bringing the year-round
navigation via the Northern Sea Route one step closer,” Sovcomflot said.

However, the tankers, scheduled to deliver the super-chilled cargoes to China in late January, will
use an ice-breaker on their return to Russia across the passage in February, according to the
industry officials.
Until now, a cargo ship has never made a February voyage in the eastern Arctic, according to
Sovcomflot, who owns the Christophe de Margerie.
Sovcomflot confirmed the plans for the tanker. The U.S.-based Teekay LNG Partners LP, the owner
of the Nikolay Yevgenov, did not respond to Bloomberg’s request for a comment.
The planned February return voyage is part of “the systemic efforts to gradually extend transit
navigation in the eastern sector of the Arctic,” the Sovcomflot spokesman said. “In the future, the
goal is to set up a safe round-the-year navigation” across the Northern Route, he said.
Asian LNG Breaks $30 Barrier as Cold Makes Traders Scramble
North Asia’s liquefied natural gas benchmark rose above $30 per million British Thermal units for
the first time, breaking a barrier that few thought possible.
Freezing temperatures across north Asia have boosted gas consumption and caught short some
end-users, sending the spot rate to new highs. Meanwhile, numerous production issues at export
facilities and delays traversing the Panama Canal curbed supplies.
The Japan-Korea Marker, Asia’s benchmark for the fuel, rallied 15% to $32.494 per million Btu on
Tuesday, the highest since S&P Global Platts began assessments in 2009. Trafigura Group on
Tuesday bought an LNG cargo from Total SE for $39.30 per million British thermal units on the S&P
Global Platts Market on Close.
This marks a dramatic turnaround for the fuel, which hit an all-time low less than nine months ago
amid pandemic lockdowns. Tuesday’s spot price represents a 18-fold rise from that level.

Russia’s Flagship Crude Gets a Boost From Saudi Production Cuts
Bloomberg
Russia’s flagship crude is rising in price in Europe in the wake of Saudi Arabia’s surprise oil
production cuts.
The nation’s Urals crude sold at a slight discount of 70 cents a barrel to benchmark Dated Brent in
northwest Europe on Jan. 15, a increase of almost $1 from an 8-month low seen before Christmas,
according to traders monitoring a pricing platform run by S&P Global Platts.
Saudi Arabia, the world’s top oil exporter, surprised global oil markets earlier this month by
announcing a plan to go it alone with output cuts of 1 million barrels a day in February and March.
Most European buyers have seen their contractual volumes for February cut, and one refiner didn’t
get any allocated cargoes. By contrast, Russia will boost its output slightly while most other nations
participating in a supply-management pact kept production stable.
Urals, which has similar properties to Saudi Arabia’s benchmark Arab Light crude, has seen an
increase in demand from European refiners in the wake of the Riyadh’s decision to scale back
supplies. Only two or three out of 48 cargoes for loading from Baltic ports in January have yet to
find buyers, according to Urals traders, who say that the market has become busier since the Saudi
cuts.
The amount of Urals for loading the first five days of February from Baltic ports will rise slightly to
six cargoes, according to a partial loading program seen by Bloomberg. The full-month February
program will be available at the end of the January.

U.S: Fossil fuel production expected to increase through 2022
but remain below 2019 peak U.S. EIA, Monthly Energy Review and Short-Term Energy Outlook (STEO)
In 2020, fossil fuel production in the United States declined by an estimated 6% from the 2019
record high of 81.3 quadrillion British thermal units (Btu). Based on forecasts in the U.S. Energy
Information Administration’s (EIA) January 2021 Short-Term Energy Outlook (STEO), EIA expects
total production of fossil fuels in the United States to remain flat in 2021 as increased coal production
offsets declines in natural gas production.
EIA expects production of all fossil fuels—crude oil, coal, dry natural gas, and natural gas plant
liquids (NGPL)—to increase in 2022, but forecast fossil fuel production will remain lower than the
2019 peak.
EIA’s surveys measure fossil fuel production in physical units, such as cubic feet for natural gas,
barrels for crude oil, and short tons for coal. In this article, energy production is expressed in heat
content units to allow comparisons across fuel types.
On a heat-content basis, dry natural gas accounted for the largest share of fossil fuel production in
2020, at 46%. Crude oil accounted for 31%, coal for 14%, and NGPLs for 9%.
From the mid-1980s through 2010, coal was the leading source of U.S. fossil fuel production, but
coal production has since been surpassed by dry natural gas (in 2011) and by crude oil (in 2015).
In 2020, the United States produced twice as much energy from crude oil (24 quadrillion Btu) than
coal (11 quadrillion Btu) and three times as much energy from natural gas (35 quadrillion Btu).

U.S. coal production fell by an estimated 24% in 2020, but according to EIA’s forecast, U.S. coal
production will increase by 12% in 2021 and another 4% in 2022. In recent years, about 90% of
U.S. coal has been consumed by the electric power sector.
In EIA’s forecast, increases in natural gas prices are expected to reduce natural gas consumption
for electricity generation, which will result in an increased share for coal—and to a lesser extent, an
increased share for renewables such as wind and solar—in the electricity generation mix.
EIA estimates that U.S. NGPL production increased by 7% in 2020. Newly commissioned, more
efficient natural gas processing plants supported growth in NGPL production even though natural
gas production declined. EIA expects domestic NGPL production to increase by 2% in 2021 and by
7% in 2022 mostly because of ethane production growth.
U.S. oil and natural gas production to fall in 2021, then rise in 2022
In its January 2020 Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration
(EIA) forecasts that annual U.S. crude oil production will average 11.1 million b/d in 2021, down 0.2
million b/d from 2020 as result of a decline in drilling activity related to low oil prices.
A production decline in 2021 would mark the second consecutive year of production declines.
Responses to the COVID-19 pandemic led to supply and demand disruptions. EIA expects crude
oil production to increase in 2022 by 0.4 million b/d because of increased drilling as prices remain
at or near $50 per barrel (b).
The United States set annual natural gas production records in 2018 and 2019, largely because of
increased drilling in shale and tight oil formations. The increase in production led to higher volumes
of natural gas in storage and a decrease in natural gas prices. In 2020, marketed natural gas
production fell by 2% from 2019 levels amid responses to COVID-19.

EIA estimates that annual U.S. marketed natural gas production will decline another 2% to average
95.9 billion cubic feet per day (Bcf/d) in 2021. The fall in production will reverse in 2022, when EIA
estimates that natural gas production will rise by 2% to 97.6 Bcf/d.
EIA’s forecast for crude oil production is separated into three regions: the Lower 48 states excluding
the Federal Gulf of Mexico (GOM) (81% of 2019 crude oil production), the GOM (15%), and Alaska
(4%). EIA expects crude oil production in the U.S. Lower 48 states to decline through the first quarter
of 2021 and then increase through the rest of the forecast period.
As more new wells come online later in 2021, new well production will exceed the decline in legacy
wells, driving the increase in overall crude oil production after the first quarter of 2021.
Associated natural gas production from oil-directed wells in the Permian Basin will fall because of
lower West Texas Intermediate crude oil prices and reduced drilling activity in the first quarter of
2021. Natural gas production from dry regions such as Appalachia depends on the Henry Hub price.
EIA forecasts the Henry Hub price will increase from $2.00 per million British thermal units (MMBtu)
in 2020 to $3.01/MMBtu in 2021 and to $3.27/MMBtu in 2022, which will likely prompt an increase
in Appalachia's natural gas production.
However, natural gas production in Appalachia may be limited by pipeline constraints in 2021 if
the Mountain Valley Pipeline (MVP) is delayed. The MVP is scheduled to enter service in late 2021,
delivering natural gas from producing regions in northwestern West Virginia to southern Virginia.
Natural gas takeaway capacity in the region is quickly filling up since the Atlantic Coast Pipeline was
canceled in mid-2020.

India:Total Inks $B2.5 Deal to Add 20% Stake in Adani Green
Bloomberg - Baiju Kalesh + NewBase
Total SE has agreed to a $2.5 billion deal that includes a minority stake in India’s renewables
giant Adani Green Energy Ltd. as it expands its efforts to diversify beyond oil.
Paris-based Total will acquire 20% of Adani Green, take a board seat, and add a 50% stake in a
portfolio of operating solar assets with capacity to transmit 2.35 gigawatts of power to consumers,
the company said Monday in a statement. That confirmed an earlier Bloomberg News report that
Total and Adani Green were in advanced talks on a deal.
“India is the right place to put into action our energy transition strategy based on two pillars:
renewables and natural gas,” Total CEO Patrick Pouyanne said in the statement.
The deal is the third in a week for Total in the renewables area, following the acquisition of a French
biogas producer and of a stake in a large U.S. solar portfolio. The oil and gas giant and its European
peers are increasingly focusing on clean power and renewable fuels amid mounting pressure from
investors, governments and consumers to reduce carbon dioxide emissions.
Total, which invested $8 billion from 2016 to 2020 in battery manufacturing, power utilities, solar
and wind projects, intends to increase spending on electricity and clean energy to become one of
the top five renewable companies by the end of the decade. The producer, which had close to 7
gigawatts of gross renewable power capacity at the end of last year, is targeting 35 gigawatts by
2025. Adani Green is targeting 25 gigawatts of renewable capacity by the same year, the company
said in a separate statement.
Shares in Adani Green fell about 1.4% as of 11:34 a.m. in Mumbai, giving the company a market
value of about $20 billion. Adani Green’s billionaire Chairman Gautam Adani last year signaled
there was room for founders to dilute their stake in the company and flagged global energy
producers, including Total, were interested in investing as they expand their renewable portfolios.
Adani is the latest Indian tycoon to raise money by selling a piece of his energy-to-ports empire to
an overseas partner, as rising consumption of electricity to fuels and mobile data makes the country
an attractive destination for some investors.
The deal builds on previous pacts between Total and Adani Group, including a 2018 investment in
gas distribution, liquefied natural gas terminals and gas marketing, the French firm said in its
statement.

NewBase January 19-2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises as optimism over economy outweighs fuel demand concerns
Reuters + NewBase
Oil prices climbed on Tuesday as optimism that government stimulus will buoy global economic
growth and oil demand trumped concerns that renewed COVID-19 pandemic lockdowns globally
could cool fuel consumption.
Brent crude futures for March gained 55 cents, or 1%, to $55.30 a barrel by 0737 GMT after slipping
35 cents in the previous session.
U.S. West Texas Intermediate crude was at $52.52 a barrel, up 16 cents, or 0.3%. There was no
settlement on Monday as U.S. markets were closed for a public holiday. Front-month February WTI
futures expire on Wednesday.
Oil price special
coverage

Investors are upbeat about demand in China, the world’s top crude oil importer, after data released
on Monday showed its refinery output rose 3% to a new record in 2020. China was also the only
major economy in the world to avoid a contraction last year as many nations struggled to contain
the COVID-19 pandemic.
“Yesterday’s data out of China was a positive
for oil prices,” Michael McCarthy, chief market
strategist at CMC Markets in Sydney said.
Investors are watching out for U.S. President-
elect Biden’s inauguration speech on
Wednesday for details on the country’s $1.9
trillion aid package.
OANDA’s Asia-Pacific senior analyst Jeffrey
Halley said: “Like other asset classes, oil has
received a gentle U.S. stimulus tailwind in
Asia.”
Oil prices have also been supported by Saudi
Arabia’s additional supply cuts in the next two
months which are expected to draw down global inventories by 1.1 million barrels per day in the first
quarter, ANZ analysts said.
Concerns about rising COVID-19 cases globally and renewed lockdowns weighing down fuel
demand kept a lid on oil prices. ANZ analysts flagged concerns about falling fuel sales in India in
January from December and rising COVID-19 cases in China and Japan that could dampen oil
demand.
“In Europe and the U.S., the slow rollout of vaccines is also raising concerns that a rebound in
demand will remain elusive,” the bank said.

NewBase Special Coverage
The Energy world – Jan-19- -2020
O&G methane emissions down 10% in 2020 as output fell,says IEA
https://www.iea.org/reports/driving-down-methane-leaks-from-the-oil-and-gas-industry#
Global emissions of the potent greenhouse gas methane from oil and gas production dropped 10%
in 2020 mainly because of lower output as opposed to concerted climate action, a report by the
International Energy Agency (IEA) found.
Methane has more than 80 times the warming
potential of carbon dioxide in its first 20 years in
the atmosphere and is liable to leak from oil and
gas infrastructure, such as pipelines.
Other industries, including agriculture, are also
big methane emitters. Last year, oil and gas
operations emitted over 70 million tonnes of
methane, or around 10% less than in 2019, the
IEA, which helps governments set energy policy,
said.
Early satellite data suggest that the incidence of large-scale leaks fell in 2020, although some of this
likely stems from the major drops in production as a result of the Covid-19 pandemic. Under the IEA
Sustainable Development Scenario (SDS), emissions from this sector will need to fall to around
20 Mt per year by 2030 – a drop of more than 70% from levels in 2020.
“A large part of the drop in methane emissions in 2020 occurred not because companies were taking
more care to avoid methane leaks from their operations, but simply because they were producing
less oil and gas,” the IEA said.

“There is clearly a risk that this downward trend will be reversed by an increase in production to
fuel a rebound in global economic activity.”
An unprecedented deal in April between the Organization of Petroleum Exporting Countries, Russia
and other nations cut oil production by around 10 million barrels per day, or 10% of pre-coronavirus
global demand.
U.S. sanctions have crippled Venezuelan production and Libya’s oil industry has suffered from
prolonged domestic strife. U.S. producers were hit by oil prices slumping in 2020 as the COVID-19
pandemic sapped demand and a volume war broke out between Russia and Saudi Arabia.
In the IEA’s Sustainable Development Scenario, which would see global warming curbed to
manageable levels, energy sector methane emissions would have to fall to below 50 million tonnes
by 2025 and below 25 million tonnes by 2030.
Publicly listed energy majors and some national oil companies are members of the Oil and Gas
Climate Initiative that has set methane reduction targets.
Infrastructure
In many cases, captured gas can be easily brought to market. However, in other cases, particularly
where gas is co-produced (or “associated”) with oil, existing pathways or businesses may not exist
to bring the gas to productive use. In these cases, it may be necessary to construct new
infrastructure to bring the gas to a consumer, including new compression equipment, gathering
pipelines and transmission pipelines, or liquefaction facilities. Methane abatement may falter without
policies that require or incentivise productive use of natural gas.
Investment incentives
While context matters for corporate decision-making, all firms have limited capital to deploy. Thus,
opportunities to invest in methane reduction must compete with other investment opportunities.
Even where abatement is cost-effective, companies may opt to direct capital towards investments
where a higher rate of return is possible.

Moreover, abatement may seem less cost-effective as long as the environmental costs of pollution
are not factored into the investment calculation. In addition, where the owner of the gas is not the
owner of transmission infrastructure, there may be an issue of “split incentives,”
whereby the pipeline company that pays to repair leaks sees the benefits accrue to the owner of
the gas, from additional throughput. Finally, state-owned firms may not directly benefit from cost-
saving measures because they return earnings to the government treasury, and then receive
pre-determined appropriations to cover operations.
Barriers to voluntary action
Governments can address many of these barriers with policy and regulatory tools. If information
poses a barrier, policies could include educational strategies, such as trainings; certificate

programmes for workers; measures on monitoring, reporting and verification of emissions; reference
to international voluntary corporate reporting standards; or initiatives to encourage knowledge-
sharing and best practices.
With respect to infrastructure, governments might introduce requirements in the planning stages of
projects, directly invest in building new infrastructure or adopt policies that allow spreading of the
development costs across multiple firms and end users. Governments may also be able to price
environmental externalities or create financial incentives for onsite use of captured gas,
expenditures in abatement technologies, or repair transmission equipment to remove barriers to
investment.
The aim of these interventions is twofold. First, they can unlock the abatement measures that are
already economically advantageous today, i.e. the methane leaks that can, in our view, be abated
at no net cost. Second, they can facilitate and encourage actions that address the range of methane
emissions that are technically possible to abate, i.e. the 70% reductions that are achieved in the
Sustainable Development Scenario by 2030.
To reach this level, it will not be enough to simply remove the barriers that prevent companies from
acting on their own. Broader regulatory initiatives also have an important role to play. Firms are
increasingly recognising this and are expressing interest in “sound methane policies and regulations
that incentivise early action, drive performance improvements, facilitate proper enforcement, and
support flexibility and innovation.”1
Regulations calibrated to each jurisdiction’s specific goals will be critical to ensuring that companies
undertake the appropriate abatement actions alongside voluntary action by companies. There are
many types of regulations, but what they all have in common is that they can fundamentally change
the cost-benefit analysis for firms and drive them to internalise the societal cost of that pollution.

NewBase Energy News 19 January 2020 - Issue No. 1399 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. 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.
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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