New base 25 november 2021 energy news issue 1471 by khaled al awadi

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NewBase Energy News 25 November 2020 No. 1471 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Abu Dhabi blue-chips ADQ and Alpha Dhabi in $375m
hydrogen alliance with OCI
Published: November 23, 2021 07:37Gulf News Report
As Hydrogen is being seen as the 'fuel of the future' and easy on environment too, Abu Dhabi’s
hydrogen initiatives continue, with two blue-chip companies – ADQ and Alpha Dhabi Holding –
signing up with one of the biggest names in the industry, OCI, which is headquartered in the
Netherlands.
As part of the deal, a 15 per cent stake will be offered in OCI Methanol Group for $375 million, and
this company will be registered at ADGM (Abu Dhabi Global Market).
The transaction is expected to be finalised this year itself. Methanol is a key enabler of the hydrogen
economy and one the “most logical” hydrogen fuels. The alliance will focus on clean methanol as a
“fuel for the future” with hydrogen as the primary feedstock.
OCI is also a shareholder in Fertiglobe, the nitrogen fertiliser company in which ADNOC is another
shareholder. Fertiglobe recently went through a successful IPO and is listed on ADX.

“This strategic partnership further solidifies Abu Dhabi’s position in the global arena as a key player
in the industrial and chemicals space,” said Mohamed Hassan Alsuwaidi, CEO of ADQ. “We are
dedicated to bringing top-tier international companies to the UAE in line with Abu Dhabi’s plans to
create a world-class investment platform that will invest in and develop a portfolio of petrochemical
manufacturing projects in Abu Dhabi.”
WHAT'S OCI METHANOL INTO?
OCI Methanol has a globally diversified production, trading and distribution platform, with market
leading positions in the US and Europe, and with a capacity of approximately 3 million metric tonnes.
It is also the pioneer and global leader in bio-methanol, which is produced at its methanol facilities
in the Netherlands and US.
OCI Methanol Group has extensive distribution and storage capabilities in the US and Europe,
located near major inland demand centres or on major global shipping lanes next to key bunkering
hubs.
Nassef Sawiris, Executive Chairman of OCI NV, said: “This partnership can accelerate the group’s
position in the hydrogen economy. With methanol as the leading clean fuel for the shipping industry
and other applications, we believe we are best positioned to execute growth initiatives and capitalize
on the growing demand for clean hydrogen in downstream markets.”
Following the successful experience of Fertiglobe including the IPO and successful partnership with
ADNOC, we believe this new strategic partnership strengthens our commitment to Abu Dhabi as a
future hydrogen hub
- Ahmed El-Hoshy, CEO of OCI N.V. , said .

Egypt's LNG exports hike 900% YoY in Q3 2021
Zawya + NewBase
Cairo - Egypt has recorded a surge in liquified natural gas (LNG) exports by 1 million tonnes or
around 900% year-on-year (YoY) during the third quarter (Q3) of 2021, marking the highest growth
rates across the world, the Egyptian Minister of Petroleum and Mineral Resources, Tarek El-Molla,
announced on Monday.
In the past seven years, Egypt has adopted a strategy to develop and modernise the petroleum and
mineral resources sector to raise its contribution to the comprehensive development and economy
as part of Egypt Vision 2030, El-Molla added during a press conference.
The minister further remarked that the oil and gas sector contributed to 27% of the country's gross
domestic product (GDP) during fiscal year 2018/2019.
Despite the coronavirus (COVID-19) pandemic, the sector has contributed to around 24% of GDP
in fiscal year 2019/2020.
El-Molla referred that the petroleum balance of payments recorded a surplus of about EGP 9.9
billion in 2018-2019 for the first time after years of deficit.
The petroleum trade balance registered a surplus of EGP 9.5 billion in 2020-2021.
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India: Reliance to use gasification unit at world's largest
refinery to produce hydrogen… The National - Jennifer Gnana + NewBase
Reliance Industries, India's largest private sector company controlled by billionaire Mukesh Ambani,
plans to transfer the gasification units at Jamnagar – the world's largest refinery – into a wholly-
owned unit as it transitions to renewables.
The gasification unit at the 1.2 million barrels-per-day refinery in the western Gujarat state was
originally intended to produce syngas, or synthetic gas, which is a fuel gas mixture comprising
hydrogen, carbon monoxide and some carbon dioxide.
The syngas was later used as
feedstock to produce olefins, which
are used for manufacturing
plastics, detergents and adhesives.
Syngas also feeds into the
production of hydrogen at the
refinery.
"Repurposing the gasification
assets will help use syngas as a
reliable source of feedstock to
produce these chemicals and cater
to growing domestic demand,
resulting in an attractive business
opportunity," the company said.
"Further, as the hydrogen economy
expands, RIL will be well positioned to be the first mover to establish a hydrogen ecosystem." The
move follows Reliance's decision to transition away from fossil fuels and tap renewables as its
primary source of energy.
The company plans to channel the syngas into producing high-value chemicals and hydrogen,
which is increasing in importance amid global efforts to decarbonise power grids.
"Carbon dioxide released during the process of producing hydrogen is highly concentrated and easy
to capture, substantially reducing the cost of carbon capture. Overall, these steps will help sharply
reduce [the] carbon footprint of Jamnagar complex," the company said.
On Saturday, Reliance Industries and Saudi Aramco agreed to re-evaluate a previous non-binding
agreement to sell a 20 per cent stake in the Indian company's oil-to-chemicals business. The re-
evaluation follows the company's ongoing shift to renewable energy.
At Reliance's annual general meeting in June, Mr Ambani unveiled an ambitious push into clean
energy that earmarks 750 billion Indian rupees ($10.1bn) of investment over three years to help
transform the company, which still gets nearly 60 per cent of its revenue from fossil fuel-related
businesses.
Reliance has a 15-year strategy to become net-carbon zero by 2035. Reliance Industries is also
developing one of the world’s largest integrated renewable energy manufacturing facilities in Gujarat
as part of its pivot to new energy and materials businesses.

Asian Oil Refining Renaissance Is Grinding Into Reverse Gear
(Bloomberg)
Asian oil refiners are starting to see a recent resurgence in profitability go into reverse, eroding a
source of demand strength that helped drive crude prices to an seven-year high last month.
Margins from processing crude across Asia slipped from recent highs this month as the return of
some Covid-related travel curbs in China hit jet-fuel consumption, undermining progress made in
opening up travel between countries with high vaccination rates.
At the same time, an early rush for back-up winter heating fuels including diesel has eased as
concerns over natural gas and coal shortages abate, and panic over energy crises in China and
India ebbs. As the fuel-buying frenzy -- backed by anticipated gas-to-oil switching -- gives way to a
more moderate pace of consumption, Asian refiners are taking a hit to their profits.
Those dynamics offer another headwind to oil prices that are already faltering because of concerns
about governments dropping strategic petroleum reserves into a market in which supplies are soon
expected to pick up anyway.
“The market overreacted to the whole gas-to-oil switching, assuming a cold winter and reduced
refinery supplies,” said Sri Paravaikkarasu, Asia oil lead at FGE. “Refineries globally are returning
from maintenance and a big switch to oil hasn’t happened yet.”
FGE sees profits from converting crude to oil products for complex refiners in Asia at $4.25 a barrel
in November, coming off from October when they stood at $5.10. The industry consultancy expects
them to dip to $3.20 in December, before sliding further in January and February.
Last month, the region’s margins received a boost from a strong diesel market as China raced to
produce and hoard more of the fuel that’s used in heavy vehicles, industries as well as in small-

scale power generation sets. Skyrocketing coal and natural gas prices had prompted the rush, amid
a near-crisis situation that China eventually averted through a series of initiatives to halt exports,
boost imports, raise refinery output and ration pump sales.
Total exports of gasoline, diesel and jet fuel from China in October at about 564,000 barrels a day
were a third lower than the average shipments in the previous nine months, according to Vortexa.
Outbound diesel shipments saw the biggest decline as the country sought to preserve supplies for
winter. The world’s largest oil importer also ordered an aggressive ramp up of coal production, which
took more pressure off diesel.
Chinese fuel-export policy is the wild
card, Bloomberg Intelligence analysts
Horace Chan and Henik Fung said in a
note on Thursday. The Asian refining
giant’s presence in regional gasoline
and diesel markets has faded since
July, but overseas shipments may
increase if fuel cracks rise and the
country’s domestic power shortage
eases, they said.
A cold winter could turn things around
for refiners again, said Paravaikkarasu.
Asia’s total oil product demand is likely
to rise by 5.8% next year, the firm
estimates. On top of that, regional fuel
margins are likely to find some support since China slashed exports of diesel and gasoline.
“As manufacturing and industrial activity gathers more pace, we expect regional gasoil demand to
recover to pre-pandemic levels in the first quarter of 2022,”she said

European Coal Prices Rise as Profitability Jumps This Winter
Bloomberg + NewBase
Gains in coal and carbon market matched by rising gas prices , the demand for coal in Europe is
increasing ahead of the winter as rising gas prices make the dirtier fuel more profitable to burn for
power.
Coal plants in Germany remain significantly more profitable than gas plants, even as the benchmark
intraday price for the dirtier fuel rises to its highest level in a month and carbon trades near a record
above 70 euros. The spark-and-dark chart for the first quarter of next year, estimating profitability
for the different fuel types, shows coal margins above 80 euros and gas with negative margins.
German Spark and Dark chart for first quarter 2022:
High fuel prices already are showing across Europe as colder weather reached the continent and
the U.K. this week. U.K. hourly power prices surpassed 1,000 pounds per megawatt-hour in auction
for Tuesday evening as low winds lead to more coal plants turning on. French power for Wednesday
is trading at the highest level since 2012, compared with the outcome on the day-ahead market.
“We’re starting to see again the familiar signs of conventional thermal power sources having to step
in to fill the gap left by intermittent renewable generation,” Victory Hill Capital Advisors LLP said in
a note on the U.K. energy mix. “Should this trend continue into December and January, it is likely
that power prices will again rise to seasonal highs as national grid calls on more gas and coal to
meet demand.”

NewBase November 25-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Steady After OPEC Says Reserves Release to Bloat Surplus
(Bloomberg) – NewBase
Oil was steady after OPEC said a planned coordinated release of reserves may swell a crude
surplus expected early next year.
Futures in New York traded near $78 a barrel. The projection was made by the producer group’s
advisory body -- the Economic Commission Board -- ahead of an OPEC+ meeting next week. Some
of the group’s delegates warned this week that releasing strategic reserves may lead to the alliance
holding back crude supply in January.
Oil price special
coverage

Crude had fallen over the past month as President Joe Biden agitated for a response to rising energy
prices, but the landmark plan announced Tuesday fell short of expectations and saw prices rise.
The International Energy Agency accused Saudi Arabia, Russia and other major energy producers
of creating “artificial tightness” in global oil and gas markets, urging OPEC+ to accelerate the return
of supplies.
Predictions on the response are mixed. Citigroup Inc. said OPEC+ is likely to stick to its planned
increase of 400,000 barrels a day for January because reducing supply would erode the group’s
claim of providing public good by stabilizing oil markets.
Australia & New Zealand Banking Group, however, said the alliance will suspend the hike to provide
a buffer to demand headwinds.
“The move by the six consuming nations will surely result in aftershocks as the fault lines between
OPEC+ and major consuming countries become ever more visible,” said Tamas Varga, an analyst
at brokerage PVM.
The Organization of Petroleum Exporting Countries’ advisory body predicted that the excess in
markets would expand by 1.1 million barrels a day in January and February to 2.3 million and 3.7
million a day, respectively, if 66 million barrels are injected by major consumers over the two-month
period, according to a document obtained by Bloomberg.

Oil Very Cheap Relative to Other Assets, JPM’s Kolanovic Says
(Bloomberg)
While the top consuming nations are preparing to release oil from their national reserves to rein in
rising prices, crude is actually cheap relative to other financial assets, according to JPMorgan
Chase & Co.
Among global stocks, bonds and commodities, oil is in the 19th percentile over the last 20 years,
and to rise to the 50th percentile relative to historical levels, it would need to be at $115 per barrel,
strategists led by Marko Kolanovic said in a note Monday. West Texas Intermediate was near $76
on Tuesday.
“Relative to broad levels of various asset prices and the monetary base, oil looks remarkably cheap,”
JPM said in the note. “One could say that oil-producing countries (often developing countries) have
been subsidizing oil-importing countries (often developed countries), given the broad monetary and
asset inflation in the developed world over the past 20 years.”
And the $115 a barrel estimate is actually conservative because it excludes “expensive” assets like
central bank balance sheets and the Nasdaq stock exchange, the strategists said. If they’d been
included, that would imply a median oil price in the range of $300 to $500 a barrel. However, JPM
noted that this is just one way to analyze asset prices and doesn’t represent their near-term price
targets.
Crude has had some precipitous declines over the years and is still well below levels from 2011 to
2014, for example. That contrasts with many other financial assets, which are at record levels, and
suggests oil hasn’t kept up with the growth in central bank balance sheets as they try to combat the
effects of the pandemic.

LNG Tanker Rates Reach All-Time Highs On Soaring Demand
NewBase + Bloomberg
Asia is stocking up on liquefied natural gas (LNG) to avoid a repeat of last winter’s crunch when
colder than usual temperatures sent 2020/2021 winter spot LNG prices to records.
Now prices are even higher, but many Asian buyers are still on the spot market despite the
expensive gas in the global energy crunch. Surging demand for LNG and increased shipments of
U.S. gas to Asia, including China, are sending spot LNG freight rates in the Asia Pacific region to
new records.
This week, Pacific spot LNG freight rates jumped above $300,000 per day to a new record high, as
rates in both the Pacific and Atlantic basins continued to move sharply higher, LNG freight assessor
Spark Commodities said.
The spot price for LNG tankers to deliver fuel in December in the Pacific region jumped to an all-
time high of $316,750 per day, up by 9 percent compared to the previous week. This beat the
previous record for spot LNG rates set last winter when a cold snap in Asia drove LNG prices and
freight rates to records.
Those records were beaten in the past few weeks when spot LNG prices in Asia jumped to well
above $30 per metric million British thermal units (MMBtu) last month. Now LNG freight rates have
also exceeded last winter’s all-time highs and are five times higher than in early September.
At the same time, the spot LNG freight rate in the Atlantic basin jumped by 5 percent from the
previous week’s assessment to $254,250 per day this week, according to Spark Commodities data.
Soaring prices and LNG demand started to push spot LNG freight rates to over $200,000 per day
in October, as traders scrambled to book vessels to ship the fuel to energy-starved markets in Asia.
LNG tanker rates more than doubled in October alone amid high demand for vessels in the energy
crisis, industry sources told Reuters at the time.

Higher demand in Asia and a jump in U.S. exports to the region, including to China, will likely keep
the LNG tanker market tight throughout the winter, analysts and industry executives say.
“There has recently been more demand in Asia for U.S. LNG, but that also means more demand
for ships to bring LNG to the Pacific,” Joseph Sigelman, CEO at gas and LNG logistics firm AG&P
Group, told Bloomberg this week.
“The situation for ships will remain tight through the rest of winter,” Sigelman added.
Moreover, hoping to avoid a repeat of last year’s congestion in the Panama Canal, buyers in Asia
are also booking LNG tankers to travel from the United States to Asia via the Cape of Good Hope,
which is a longer voyage that further tightens the LNG vessel market, traders told Bloomberg.
Near record U.S. exports of LNG and record shipments to China in recent months have also raised
the demand for tankers to carry the super-chilled fuel to Asia.
After a year without U.S. LNG shipments to China between March 2019 and February 2020, due to
the trade war, American exports to China started rising toward the end of last year to reach a record
high in August 2021, the latest available EIA data shows.
In September 2021, China was the top destination of U.S. LNG exports, the U.S. Department of
Energy’s LNG Monthly for November 2021 showed. China received 48.6 Bcf of U.S. LNG in
September, followed by Brazil, South Korea, Spain, and Turkey. Those top five countries of
destination accounted for 61.4 percent of all American LNG exports in September, according to the
DOE data.
So far in November, the volume of gas feeding to U.S. LNG export facilities has been higher than
in October and near the monthly record from April 2021, per Refinitiv data cited by Reuters. So far
in November, the volumes of gas flowing to U.S. export plants have averaged 11.1 Bcf/d, up from
10.5 Bcf/d last month and slightly down from the April monthly record of 11.5 Bcf/d.

NewBase Special Coverage
The Energy world –Nov - 25- -2021
Energy Crunch Drives Carbon to Record as Europe Burns Coal
Bloomberg - William Mathis and Verity Ratcliffe
Europe is growing increasingly reliant on coal to keep the lights on as the weather turns cold,
sending the cost of polluting to a record.
Carbon prices exceeded 70 euros for the first time ever as utilities turn to the dirtiest of fossil fuels.
Power plants in the U.K. are burning the most coal since the beginning of March to keep the lights
on as the cooler-than-normal weather and sub-zero temperatures are forecast for major cities this
week.
Europe is facing an energy crisis as economies emerge from the pandemic and people return to the
office. That’s boosting demand at a time supplies remain limited. Years of reduced investments in
fossil fuels has combined with low wind speeds this year to send gas, power and carbon prices to
records.
With shortages of natural gas sending prices quadrupling this year, traders are preparing to burn
more coal this winter, and that will require more pollution permits. At the same time, the European
Union has increased its climate ambitions, vowing to cut emissions faster this decade. That means
the carbon price will have to increase more quickly.
“Our current gas to coal switching curve points to the fact that Europe will be burning coal at least
until March 2023, thus increasing CO2 emission,” analysts at ClearBlue Markets wrote in an emailed
note.

Benchmark carbon futures for December gained as much as 1.9% to a record-high 71.21 euros per
metric ton on ICE Endex before easing to 69.98 euros by 4:40 p.m. in Amsterdam. Prices have
more than doubled this year. BloombergNEF expect carbon to cost more than 100 euros per ton by
2030.
The rally in energy prices is bringing down some gas and power suppliers, many of which sold
energy at fixed prices before the rally. Bulb, one of the U.K.’s biggest domestic energy retailers,
cited high gas prices as part of the reason why it had to go into a process that will see the firm
nationalized by the British government.
Carbon has also gained a boost after the COP26 talks in Scotland reached an agreement to create
a global market, endorsing emissions trading as solution to tackle global warming. The EU’s market
watchdog, the European Securities and Markets Authority, also dismissed concern over abuse and
the role of speculative investors in emissions trading in a report last week.
“Market participants continued to attribute the strong bullish rally of emissions prices to technical
and option trading, possibly strengthened by the ESMA’s report,” Engie EnergyScan said in a report
on Monday.
Carbon rose even as gas prices dropped for a second day amid increased concerns that a fresh
wave of the Covid-19 pandemic in Europe would lead to more nations going into lockdown.
Concerns that Austria -- and possibly the Netherlands in coming weeks -- will impose restrictions
on movement to curb the spread of the virus are pushing gas prices lower, said Hans van Cleef, a
senior energy economist at ABN Amro.
The weather forecast for next week has also turned milder, indicating the current cold snap will be
shorter and less deep than expected. That’s helping to allay fears of gas shortages across western

Europe. More wind power in the coming days after a period of low generation is also easing pressure
on gas prices, said van Cleef.
Benchmark European gas futures tumbled as much as 6.3% to 81.68 euros a megawatt-hour and
the U.K. equivalent dropped as much as 6.2% to 206 pence a therm. European prices rallied 15%
last week after Germany suspended the certification process of the controversial Nord Stream 2
pipeline from Russia.

ewBase Energy News 25 November 2021 - Issue No. 1471 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.

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