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NewBase Energy News 27 February 2021 - Issue No. 1410 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: ADNOC Logistics & Services announces strategic fleet expansion
Source: ADNOC
ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi
National Oil Company (ADNOC), has announced the acquisition of six Very Large Crude Carriers
(VLCCs).
 Two VLCCs added to fleet in 2020 with three newbuilds placed on order and one existing
vessel recently purchased
 Project Management and Design work for newbuild vessels to be undertaken in the UAE,
contributing to In-Country Value
 Expansion supports ADNOC’s growth in Trading and opens new revenue streams for
ADNOC L&S’
Two VLCCs have already been deployed into the company’s fleet. ADNOC L&S has placed an
order for three newbuild vessels with options, which will be delivered in 2022 and 2023, and
purchased one additional existing vessel that will be joining its fleet shortly. These vessels are the
first crude carriers to join the ADNOC L&S fleet, adding a total cargo capacity of 12 million barrels.
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ADNOC L&S, which is currently the largest integrated maritime logistics and shipping company in
the GCC, and owner and operator of the largest shipping fleet in the UAE, is pursuing a major fleet
expansion program.
This will enable the company to provide better service to its global customers, while also supporting
ADNOC as it expands its production and refining capacity and grows its new trading operations.
ADNOC has established two new trading companies: -
ADNOC Trading, which is focused on crude oil and started derivatives trading in September 2020;
and ADNOC Global Trading (AGT), a joint venture with ENI and OMV that focus on trading of refined
products and began operations in December 2020.
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Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said:
'The acquisition of these six VLCCs is one of our most significant growth steps to-date. This strategic
move allows us to offer new services to our customers and supports ADNOC and its Trading entities
to access new global energy markets, while also delivering incremental value and a new revenue
stream to our business.'
'Given recent market conditions, we were able to purchase both existing and newbuild vessels at
competitive prices. Owning these vessels will deliver cost efficiencies for our business, as opposed
to chartering vessels, while also enabling us to provide a more reliable service to customers. These
purchases also further reinforce our position as the largest, fully integrated logistics and shipping
company in the region, paving the way for the transportation of greater crude volumes to customers
across the world.'
The latest purchases by ADNOC L&S reflects the company’s continued focus on modernizing,
growing and diversifying its fleet. Built to ADNOC’s specification, the newbuild vessels will be
equipped with industry-leading Smart Ship technology.
While the specialist manufacturing facilities for this type of VLCC are only available in a limited
number of countries, predominantly in Asia, ADNOC L&S secured higher levels of In-Country Value
(ICV) for this important contract by ensuring that Project Management and design work for the
newbuild vessels is undertaken in the UAE.
In addition, a team of young UAE nationals from ADNOC L&S will work closely with the design and
project management teams to enhance their knowledge and experience in the design, construction
and future maintenance of VLCC vessels.
The six vessels, each with a minimum length of 330 meters (1,082 feet), will have a 300,000 metric
tonnes deadweight and the ability to carry nearly two million barrels of crude oil, adding a total of 12
million barrels capacity to the ADNOC L&S fleet. Two VLCCs were delivered in December and are
already operational on key ADNOC Trading routes and one additional existing vessel purchased
this week will join the fleet shortly.
The establishment of a new VLCC fleet comes as ADNOC progresses its plans to grow its oil
production capacity. The company currently has a capacity of over 4 mbopd, which it intends to
grow to 5 mbopd by 2030.
ADNOC L&S grew its fleet with 16 deep-sea vessels in 2020. In addition to its new VLCC fleet, the
company confirmed the order of five newbuild and one recent second-hand Dual Fuel Very Large
Gas Carriers (VLGCs) for AW Shipping, its Joint Venture with Wanhua Chemical Group, and
recently announced the purchase of four bulk carriers (3 Ultramax and 1 Handysize).
These orders add to ADNOC L&S’s fleet of 120 owned vessels, which includes deep-sea shipping,
offshore support and marine services vessels. The ADNOC L&S international trading fleet
transports crude oil, refined products, dry bulk, containerized cargo, LPG and LNG on its owned
and chartered vessels, supporting ADNOC’s operations locally and facilitating the shipment of
commodities to global markets.
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Kuwait:Petrofac complets the integration of Kuwait Oil
Company’s new Crude Oil Control Centre… Source: Petrofac
Taking the operations of one of the Middle East’s biggest upstream projects into a new
era, Petrofac's Lower Fars heavy oil development project team has completed the successful
integration of Kuwait Oil Company’s new Crude Oil Control Centre, where Petrofac’s expertise has
been used to upgrade technology and equipment, improving the effectiveness of operations.
Mission control for the plant (Source: Petrofac)
Extracting heavy oil can be more difficult than lighter crude because of its viscosity; however, the
potential is huge. The new centre is now set to capitalise, utilising the latest state of art Orion
operations and monitoring consoles. It also controls the blends of heavy oil from the Ratqa field in
the north of the country with lighter crudes from the south, using a blending package provided by
Petrofac.
The teams worked collaboratively to anticipate and solve the many challenges involved in
connecting the new control centre with wider local control rooms, spread across southern Kuwait.
Around 220 kms of new fibre optic cable were laid, with logistics including many major road
crossovers and passing through live facilities.
Another major challenge the team overcame was in completing such complex work safely without
any interruption to ongoing oil exports. Control equipment upgrades included multiple tank farms,
manifolds and export facilities, without any process or operational shutdowns.
The merging of two huge control system legacy networks to form what is now one of the longest
single legacy networks currently operational in the world, was a further critical challenge.
Microplanning and fallback options were needed at every stage. Many steps were taken early on to
identify and mitigate risks, including manual loading trials, meaning that auto operations were
successfully resumed as planned without any issues.
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Saudi Aramco awards Lamprell contract for the Marjan field
Lamprell + NewBase
UAE-based Lamprell announced that it has been awarded an Engineering, Procurement,
Construction and Installation (EPCI) contract by Saudi Aramco as part of their Long-Term
Agreement Programme (LTA) with Lamprell.
The Marjan Field is located in the Arabian Gulf, off Saudi Arabia’s East Coast and is one of the
largest oil and gas fields in the region.
Works on this contract consists of two offshore production deck modules and associated pipeline
and subsea cables in Saudi Aramco’s Marjan Field.
Christopher McDonald, CEO, Lamprell, said: “We are delighted to have received our first LTA
contract award since joining the programme in 2018. Our team has been working closely with Saudi
Aramco over the past few months and we look forward to strengthening our partnership through this
project. Marjan is a strategic asset of global significance and we are honoured to play a role in its
development.”
About Murjan:
 The field extends into Iranian waters where it is known as Foroozan Oil Field
 Associated gas is processed at the Khursaniyah Gas Processing Plant
Contractors
 HHI: Platform, Facilities Pile, Bridge
 McDermott:
o Procurement, fabrication, transportation and installation of three electrified production deck
modules (PDM’s)
o Engineering, procurement, construction, installation (“EPCI”) and replacement of the decks
of two existing tie-in platforms, as well as the removal and salvage of existing gas turbine
generators, and the installation of two new 115kV subsea power and communication
cables.
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China’s Oil Reserves Are Close to Reaching Storage Capacity
Bloomberg - Aaron Clark
China’s oil stockpiles have risen to around 100 days worth of net imports, making it increasingly
challenging to find extra storage tanks and facilities to hold supplies, two people with knowledge of
supply levels said.
The build-up follows a push by Beijing to buy up crude for its reserves last year when prices crashed
due to the coronavirus pandemic. The figure represents government and commercial inventories,
said the people who asked not to be identified because the information isn’t public. The reserves
fluctuate but have consistently been at or above 100 days worth of imports and rose as high as 120
days recently, one of the people said.
Beijing set a goal of increasing government stockpiles to hold at least 90 days of net imports,
Bloomberg reported in April last year. That target didn’t include commercial inventories. China’s
National Energy Administration didn’t respond to a fax seeking comment.
As the world’s largest oil importer a sufficient level of reserves is critical for economic resilience to
supply shocks such as a war in the Middle East. The International Energy Agency, which China isn’t
part of, recommends that countries have enough crude to cover at least 90 days of net imports.
“In terms of crude stockpiling, we believe China’s goal will not stop at 100 or 120 days of reserves,”
said Mia Geng, an analyst at industry consultancy FGE. “National security is among the priorities
for the coming years and this will sustain continuous stockbuilds.”
Unlike the U.S., where data about the nation’s strategic petroleum reserves are updated publicly
and regularly, the size of China’s crude stockpiles are shrouded in mystery. There’s also less of a
distinction between government reserves and commercial stockpiles, with many of the country’s
biggest energy companies being state-owned.
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China was moving forward with plans to buy up oil for its emergency reserves in April of last year,
people familiar the plans said at the time. The initial target was to hold government stockpiles
equivalent to 90 days of net imports, which could eventually be expanded to as much as 180 days
when including commercial reserves, they said.
Last year’s crash in oil prices and China’s rapid rebound from the first wave of the Covid-19
pandemic set the stage for a flurry of crude purchases. However, stockpiling has leveled off as oil
prices rebounded and storage space runs out, Capital Economics Ltd. said in a note this month. Fuel
demand has also fallen this year amid a resurgence of the coronavirus in some parts of China.
This year’s crude purchases will be driven by refinery operations and new plant start-ups rather than
filling the nation’s reserves that the market witnessed in 2020, according to Michal Meidan, director
of China Energy Research Programme at the Oxford Institute for Energy Studies.
Emergency reserves, including commercial storage, exceeded 100 days worth of net imports in the
third quarter of last year, according to Yuntao Liu, a London-based analyst with Energy Aspects Ltd.
“Going forward, as crude prices rise and plants launch seasonal maintenance from April, the need
for re-stockpiling is not that urgent.”
China’s crude imports averaged 10.9 million barrels a day last year, according to import
data compiled by Bloomberg, suggesting current stockpile levels of around 1.09 billion barrel. That
aligns with an estimate from market intelligence firm Kayrros that the nation’s oil inventories rose to
1.01 billion barrels in the week through Feb. 14. Stockpiles reached a record of around 1.04 billion
barrels in September last year, according to Kayrros.
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U.S Cold weather results in near-record Gas withdrawals and
lowest productions Source: U.S. Energy Information Administration, Weekly Natural Gas Storage Report
Significant demand for natural gas in mid-February led to the second-largest reported withdrawal of
natural gas from storage in the United States, according to the U.S. Energy Information
Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR).
Weekly stocks fell by 338 billion cubic feet (Bcf) in the week ending February 19, 2021, nearly three
times the average withdrawal for mid-February. A record amount of natural gas, 156 Bcf, was
withdrawn during that week in the South Central region, which includes Texas.
Colder-than-normal temperatures across much of the Lower 48 states, especially in Texas, led to
increased demand for space heating. Population-weighted heating degree days (HDDs) represent
temperature deviations lower than 65 degrees Fahrenheit and are weighted based on population
distributions across the country. For the week ending February 19, U.S. HDDs reached 254, or
nearly 40% colder than normal, according to the National Oceanic and Atmospheric Administration.
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In Texas, the two most common space heating fuels are electricity (the primary heating fuel in more
than 60% of Texas homes, according to Census data) and natural gas (36%). Increases in electricity
demand also affect natural gas demand because natural gas is the most prevalent electricity
generation source in Texas and in much of the South.
Estimated U.S. natural gas demand on February 14, 2021, reached 148.3 Bcf, surpassing the
previous single-day record set in January 2019, according to estimates from IHS Markit. In addition,
during the week ending February 19, U.S. average weekly dry natural gas production fell by 13.8
billion cubic feet per day (Bcf/d), according to estimates from IHS Markit. The decline in natural gas
production was primarily because of freeze-offs, which occur when water and other liquids freeze
at the wellhead or in natural gas gathering lines near production activities. Dry natural gas
production fell by an estimated 10 Bcf/d in Texas alone, according to IHS Markit estimates.
Information in EIA’s Weekly Natural Gas Storage Report is also available on the Natural Gas
Storage Dashboard, which shows natural gas inventories, storage capacity, prices, and
consumption.
Texas natural gas production fell by almost half during recent cold snap
During the cold snap that affected much of the central part of the country, U.S. dry natural gas
production fell to as low as 69.7 billion cubic feet per day (Bcf/d) on February 17, a decline of 21%,
or down nearly 18.9 Bcf/d from the week ending February 13.
Natural gas production in Texas fell almost 45% from 21.3 Bcf/d during the week ending February
13 to a daily low of 11.8 Bcf/d on Wednesday, February 17, according to estimates from IHS
Markit. Temperatures in Texas averaged nearly 30 degrees Fahrenheit lower than normal during
the week of February 14.
The decline in natural gas production was mostly a result of freeze-offs, which occur when water
and other liquids in the raw natural gas stream freeze at the wellhead or in natural gas gathering
lines near production activities. Unlike the relatively winterized natural gas production infrastructure
in northern areas of the country, natural gas production infrastructure, such as wellheads, gathering
lines, and processing facilities, in Texas are more susceptible to the effects of extremely cold
weather.
After reaching a daily low on February 17, natural gas production in Texas began increasing as
temperatures started to rise. Daily production reached an estimated 20.9 Bcf/d on February 24, only
about 0.3 Bcf/d lower than the average in the week ending February 13.
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NewBase February 27-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Falls With Stronger Dollar Denting Best Start to Year Ever
Bloomberg + NewBase
Oil fell the most since November with a stronger dollar and concerns surrounding inflation weighing
on crude’s best start to the year on record.
West Texas Intermediate ( WTI – Apr- 21) for April delivery fell $2.03 to settle at $61.66 a barrel,
The U.S. crude benchmark rose 3.8% this week. Brent for May-21 settled at 64.42 this settlement,
following the expiry of Brent- Apr-21 which expired on Friday, declined 75 cents to end the session
at $66.13 a barrel.
,
Oil price special
coverage
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The contract gained 5.1% this week, The more actively traded May contract declined $1.69 to settle
at $64.42 a barrel
Futures in New York declined 3.2% on Friday, with a rising dollar reducing the appeal of
commodities priced in the currency. Yet, the U.S. crude benchmark still managed to post a nearly
18% gain this month as inventories worldwide tighten and pockets of demand return. Domestic
crude production dropped in 2020 for the first time in four years, according to the U.S. government.
“Prices have a little bit more risk to the downside from the recent run that we’ve seen,” said Tariq
Zahir, managing member of the global macro program at Tyche Capital Advisors LLC. “To continue
going higher from here, demand has to come back pretty substantially.”
Crude prices have notched the largest year-to-date gain than in any year prior for the same time
period, in part due to OPEC+ production curbs helping to deplete global stockpiles. Plus, the
unprecedented cold blast that recently halted millions of barrels of U.S. output means oil markets
are about 100,000 barrels a day tighter than previously thought, according to JPMorgan Chase &
Co. Supply scarcity may worsen in the coming months as North Sea fields undergo major
maintenance.
The Organization of Petroleum Exporting Countries and its allies will meet next week to decide on
output levels. While Russia has signaled it favors a further easing of production cuts, the country’s
oil output dipped below its OPEC+ target this month, meaning it failed to take full advantage of the
more generous quota it was afforded after January’s OPEC+ meeting.
“We all know the OPEC return to production is looming over the market pretty strongly,” said Gary
Cunningham, director at Stamford, Connecticut-based Tradition Energy. Continued declines in
global supplies will “depend on how much production OPEC brings back and whether or not the
sanctions on Iran are lifted.”
Soaring bond yields on Thursday were the latest sign that accelerating inflation could trigger
a pullback in monetary policy support that has helped fuel gains in risky assets during the pandemic.
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While global bonds have since stabilized, a less accommodative approach to monetary policy could
have ripple effects across commodity markets.
“Crude oil was in super overbought territory,” and due for a pullback, said Bob Yawger, head of the
futures division at Mizuho Securities. Plus, investors are “still anxious about rates ripping higher.”
U.S. Output to First Drop in Four Years
U.S. crude production decreased for the first time in four years in 2020 as the pandemic crushed
global oil demand.
American crude output averaged 11.313 million barrels a day last year, down nearly 8% from the
year prior, according to U.S. Energy Information Administration. That’s the lowest production rate
since 2018 and it marked the biggest year-over-year percentage decline since 1949.
Covid Drop
U.S. oil production fell for the first time in four years in 2020 as demand collapsed
Drillers laid down rigs in oil fields across the country after the heath crisis sapped demand for
gasoline, diesel and jet fuel derived from crude. At the peak of the market crisis in April, West Texas
Intermediate futures settled at -$37.63 a barrel, marking the first time in history the commodity
closed below zero.
Last year, America’s shale oil engine, Texas, saw output fall more than 200,000 barrels a day
compared with the year before, EIA data show. Production in the Gulf of Mexico slumped to 1.654
million barrels a day last year, from 1.896 million in 2019, because of a record hurricane season.
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NewBase Special Coverage
The Energy world – Feb-27- -2021
Building the World’s Largest Renewable Energy Ecosystem
Peter Terium + NewBase
THE LINE—a 105-mile-long belt of hyperconnected communities in Saudi Arabia—is taking on the
global energy challenge by pledging to create a vast carbon-free ecosystem to power these
communities.
Energy production and use around the world has long been the leading cause of unsustainable
living. Energy accounts for two-thirds of total greenhouse gas emissions[1], and is primarily
responsible for warming the climate and the resulting large-scale shifts in weather patterns, wildlife
populations and sea levels.
Under a business-as-usual scenario, by 2030 the world faces a minimum of $2 billion a day in
economic losses from weather events, severely impacting human health, livelihoods, food, water
and biodiversity.
“Building a 100% renewable energy
ecosystem at scale has never been done
before,” says Peter Terium, Head of the
Energy Sector for NEOM, the planned $500
billion, 10,230-square-mile mega-region of
the future that includes THE LINE. “Most
countries that have set ambitious targets go
for 40% or 50%, and that’s doable. But the
second step, from 40% or 50% to 100%, is
really a challenge. We want to do that in the
next 10 years.”
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“Building a 100% renewable energy ecosystem at scale has never been done
before. We want to do that in the next 10 years.”
HEAD OF THE ENERGY SECTOR, NEOM , Peter Terium
THE LINE, which will link Saudi Arabia’s Red Sea coast in a straight line to mountains and valleys
in the country’s interior, is betting on the NEOM region’s unrivaled solar-by-day, wind-by-night
climate profile to quickly reach its zero-carbon goal.
“I think we can do it because we have the unique combination of sun in the daytime and wind mainly
in the evening and during the night, and these two complementary technologies will allow us to
achieve a 100% mix of renewable electricity within the years to come,” says Terium.
“Most concepts stall because it’s too expensive to make a 100% renewable fuel mix with the
combination of resources available. We want to be able to demonstrate that not only is this
technically possible, but it is also economically possible.”
PROGRESS TO DATE
Since 2017, Saudi Arabia has embarked on a strategy to exponentially expand its solar and wind
capacity, and has targeted private-sector investment through contracts awarded at auction-style
tenders under its National Renewable Energy Program. In early 2019, the government announced
new renewable energy targets, aiming to generate 27.3 GW by 2023 and 57.8 GW by 2030.
SAUDI ARABIA’S RENEWABLE ENERGY TARGET
Construction of THE LINE will begin this year. “We are already embarking on a master plan to work
out the infrastructure that needs to be in place, what the grid design looks like, microgrids for the
city environment and PC-based transport grids for the larger distances,” explains Terium.
“All of it is in the design phase, and we are going to build a lot of that in the next months and years.”
Beyond producing renewable energy from the sun and wind, THE LINE will also become a
production site for hydrogen produced with low environmental impact. In July 2020, NEOM signed
an agreement with ACWA Power and Air Products to build the world’s largest green hydrogen
plant—a $5 billion venture that will produce more than 4 GW of solar and wind power and yield 650
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tons per day of hydrogen and 1.2 million tons per year of ammonia. NEOM calculates that the plant
will save more than 3 million tons of CO2 emissions annually once it comes on line in 2025.
Green hydrogen will play a critical role in the effort to remove carbon from the energy production
cycle in Saudi Arabia, a major goal of the circular carbon economy model the country is promoting
as a sustainable, pragmatic and cost-effective approach to achieve ambitious climate goals.
While renewables promote decarbonization primarily via electricity production, green hydrogen,
which is produced using renewable energy, contributes to decarbonization of the parts of the energy
sector that cannot be supported by electrification.
Hydrogen produced with renewable energy generates zero emissions, and can be stored in high
densities and used as fuel for transport and in power plants; in manufacturing industries such as
steel, cement and food production; and as a chemical ingredient to make plastics, fertilizers, glass
and steel. Technological advancements and falling costs continue to strengthen the market.
FROM OIL TO HYDROGEN EXPORTER
THE LINE aims to build on Saudi Arabia’s energy-exporting knowhow, infrastructure and assets—
the Kingdom is the world’s largest exporter of crude oil—through new hydrogen and ammonia
exports. While exporting electricity has its limitations—requiring long cables that often cross difficult
terrain, with the potential for line losses—green hydrogen can be exported by road, pipeline or
tanker.
From NEOM’s Red Sea coast ports, this hydrogen will reach European and Asian markets,
positioning the country as a pioneer in renewable technology and ensuring that the Saudi energy
sector continues to be both a substantial contributor to GDP and an engine of skilled job creation.
“ACWA is a proud partner in NEOM’s pioneering venture into the global green hydrogen market,”
says Mohammad Abunayyan, Chairman of AC WA Power. “This groundbreaking project will see
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Saudi Arabia set new global benchmarks for green hydrogen, fueled by our shared commitment to
environmental stewardship and to bring a circular carbon economy to life here in Saudi Arabia, in
line with the Kingdom’s Vision 2030 to become a global leader in the energy transition.”
The NEOM region provides a set of specific features that make a green hydrogen economy viable.
Beyond the availability of low-cost, renewable energy for competitive green hydrogen production,
NEOM’s strategic location and the Kingdom’s existing energy infrastructure and logistic assets
provide strong support for the national Vision 2030 plan to diversify the economy away from oil and
gas to ensure Saudi Arabia’s sustainability.
NEOM has formed partnerships with the country’s leading energy suppliers, including Saudi
Aramco, the national oil company, and SABIC, one of the world’s largest petrochemical
manufacturers.
A COMMUNITY OF DREAMERS AND DOERS
Building THE LINE’s radical energy ecosystem requires entrepreneurial human talent with a range
of expertise. Big Data and artificial intelligence experts will be required to manage the complex
system that will integrate many individual producers and various wind and solar devices that
produce electricity. THE LINE will also pioneer new forms of transport electrification and energy
use, which will require the creation of new digital applications.
“The types of people that we want to build this future are exactly the dreamers and doers who are
excited about exploring these new challenges,” says Terium. “What excites me most, even beyond
the typical energy topics, is building a community and bringing together people to work on this.
Innovation doesn’t have a passport, it doesn’t have a religion and it doesn’t have personal
preferences. The heart of innovation is bringing together a very diverse society of many people,
which in its diversity can develop these good ideas.”
Copyright © 2021 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 endeavors 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 17
NewBase Energy News 11 February 2021 - Issue No. 1406 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
Copyright © 2021 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 endeavors 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 18
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 2021 K. Al Awadi
Copyright © 2021 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 endeavors 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 19
Copyright © 2021 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 endeavors 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 20
Copyright © 2021 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 endeavors 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 21
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New base 27 february 2021 energy news issue 1410 by khaled al awadi

  • 1. Copyright © 2021 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 endeavors 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 27 February 2021 - Issue No. 1410 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: ADNOC Logistics & Services announces strategic fleet expansion Source: ADNOC ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of Abu Dhabi National Oil Company (ADNOC), has announced the acquisition of six Very Large Crude Carriers (VLCCs).  Two VLCCs added to fleet in 2020 with three newbuilds placed on order and one existing vessel recently purchased  Project Management and Design work for newbuild vessels to be undertaken in the UAE, contributing to In-Country Value  Expansion supports ADNOC’s growth in Trading and opens new revenue streams for ADNOC L&S’ Two VLCCs have already been deployed into the company’s fleet. ADNOC L&S has placed an order for three newbuild vessels with options, which will be delivered in 2022 and 2023, and purchased one additional existing vessel that will be joining its fleet shortly. These vessels are the first crude carriers to join the ADNOC L&S fleet, adding a total cargo capacity of 12 million barrels.
  • 2. Copyright © 2021 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 endeavors 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 2 ADNOC L&S, which is currently the largest integrated maritime logistics and shipping company in the GCC, and owner and operator of the largest shipping fleet in the UAE, is pursuing a major fleet expansion program. This will enable the company to provide better service to its global customers, while also supporting ADNOC as it expands its production and refining capacity and grows its new trading operations. ADNOC has established two new trading companies: - ADNOC Trading, which is focused on crude oil and started derivatives trading in September 2020; and ADNOC Global Trading (AGT), a joint venture with ENI and OMV that focus on trading of refined products and began operations in December 2020.
  • 3. Copyright © 2021 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 endeavors 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 3 Captain Abdulkareem Al Masabi, CEO, ADNOC Logistics and Services said: 'The acquisition of these six VLCCs is one of our most significant growth steps to-date. This strategic move allows us to offer new services to our customers and supports ADNOC and its Trading entities to access new global energy markets, while also delivering incremental value and a new revenue stream to our business.' 'Given recent market conditions, we were able to purchase both existing and newbuild vessels at competitive prices. Owning these vessels will deliver cost efficiencies for our business, as opposed to chartering vessels, while also enabling us to provide a more reliable service to customers. These purchases also further reinforce our position as the largest, fully integrated logistics and shipping company in the region, paving the way for the transportation of greater crude volumes to customers across the world.' The latest purchases by ADNOC L&S reflects the company’s continued focus on modernizing, growing and diversifying its fleet. Built to ADNOC’s specification, the newbuild vessels will be equipped with industry-leading Smart Ship technology. While the specialist manufacturing facilities for this type of VLCC are only available in a limited number of countries, predominantly in Asia, ADNOC L&S secured higher levels of In-Country Value (ICV) for this important contract by ensuring that Project Management and design work for the newbuild vessels is undertaken in the UAE. In addition, a team of young UAE nationals from ADNOC L&S will work closely with the design and project management teams to enhance their knowledge and experience in the design, construction and future maintenance of VLCC vessels. The six vessels, each with a minimum length of 330 meters (1,082 feet), will have a 300,000 metric tonnes deadweight and the ability to carry nearly two million barrels of crude oil, adding a total of 12 million barrels capacity to the ADNOC L&S fleet. Two VLCCs were delivered in December and are already operational on key ADNOC Trading routes and one additional existing vessel purchased this week will join the fleet shortly. The establishment of a new VLCC fleet comes as ADNOC progresses its plans to grow its oil production capacity. The company currently has a capacity of over 4 mbopd, which it intends to grow to 5 mbopd by 2030. ADNOC L&S grew its fleet with 16 deep-sea vessels in 2020. In addition to its new VLCC fleet, the company confirmed the order of five newbuild and one recent second-hand Dual Fuel Very Large Gas Carriers (VLGCs) for AW Shipping, its Joint Venture with Wanhua Chemical Group, and recently announced the purchase of four bulk carriers (3 Ultramax and 1 Handysize). These orders add to ADNOC L&S’s fleet of 120 owned vessels, which includes deep-sea shipping, offshore support and marine services vessels. The ADNOC L&S international trading fleet transports crude oil, refined products, dry bulk, containerized cargo, LPG and LNG on its owned and chartered vessels, supporting ADNOC’s operations locally and facilitating the shipment of commodities to global markets.
  • 4. Copyright © 2021 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 endeavors 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 4 Kuwait:Petrofac complets the integration of Kuwait Oil Company’s new Crude Oil Control Centre… Source: Petrofac Taking the operations of one of the Middle East’s biggest upstream projects into a new era, Petrofac's Lower Fars heavy oil development project team has completed the successful integration of Kuwait Oil Company’s new Crude Oil Control Centre, where Petrofac’s expertise has been used to upgrade technology and equipment, improving the effectiveness of operations. Mission control for the plant (Source: Petrofac) Extracting heavy oil can be more difficult than lighter crude because of its viscosity; however, the potential is huge. The new centre is now set to capitalise, utilising the latest state of art Orion operations and monitoring consoles. It also controls the blends of heavy oil from the Ratqa field in the north of the country with lighter crudes from the south, using a blending package provided by Petrofac. The teams worked collaboratively to anticipate and solve the many challenges involved in connecting the new control centre with wider local control rooms, spread across southern Kuwait. Around 220 kms of new fibre optic cable were laid, with logistics including many major road crossovers and passing through live facilities. Another major challenge the team overcame was in completing such complex work safely without any interruption to ongoing oil exports. Control equipment upgrades included multiple tank farms, manifolds and export facilities, without any process or operational shutdowns. The merging of two huge control system legacy networks to form what is now one of the longest single legacy networks currently operational in the world, was a further critical challenge. Microplanning and fallback options were needed at every stage. Many steps were taken early on to identify and mitigate risks, including manual loading trials, meaning that auto operations were successfully resumed as planned without any issues.
  • 5. Copyright © 2021 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 endeavors 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 5 Saudi Aramco awards Lamprell contract for the Marjan field Lamprell + NewBase UAE-based Lamprell announced that it has been awarded an Engineering, Procurement, Construction and Installation (EPCI) contract by Saudi Aramco as part of their Long-Term Agreement Programme (LTA) with Lamprell. The Marjan Field is located in the Arabian Gulf, off Saudi Arabia’s East Coast and is one of the largest oil and gas fields in the region. Works on this contract consists of two offshore production deck modules and associated pipeline and subsea cables in Saudi Aramco’s Marjan Field. Christopher McDonald, CEO, Lamprell, said: “We are delighted to have received our first LTA contract award since joining the programme in 2018. Our team has been working closely with Saudi Aramco over the past few months and we look forward to strengthening our partnership through this project. Marjan is a strategic asset of global significance and we are honoured to play a role in its development.” About Murjan:  The field extends into Iranian waters where it is known as Foroozan Oil Field  Associated gas is processed at the Khursaniyah Gas Processing Plant Contractors  HHI: Platform, Facilities Pile, Bridge  McDermott: o Procurement, fabrication, transportation and installation of three electrified production deck modules (PDM’s) o Engineering, procurement, construction, installation (“EPCI”) and replacement of the decks of two existing tie-in platforms, as well as the removal and salvage of existing gas turbine generators, and the installation of two new 115kV subsea power and communication cables.
  • 6. Copyright © 2021 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 endeavors 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 6 China’s Oil Reserves Are Close to Reaching Storage Capacity Bloomberg - Aaron Clark China’s oil stockpiles have risen to around 100 days worth of net imports, making it increasingly challenging to find extra storage tanks and facilities to hold supplies, two people with knowledge of supply levels said. The build-up follows a push by Beijing to buy up crude for its reserves last year when prices crashed due to the coronavirus pandemic. The figure represents government and commercial inventories, said the people who asked not to be identified because the information isn’t public. The reserves fluctuate but have consistently been at or above 100 days worth of imports and rose as high as 120 days recently, one of the people said. Beijing set a goal of increasing government stockpiles to hold at least 90 days of net imports, Bloomberg reported in April last year. That target didn’t include commercial inventories. China’s National Energy Administration didn’t respond to a fax seeking comment. As the world’s largest oil importer a sufficient level of reserves is critical for economic resilience to supply shocks such as a war in the Middle East. The International Energy Agency, which China isn’t part of, recommends that countries have enough crude to cover at least 90 days of net imports. “In terms of crude stockpiling, we believe China’s goal will not stop at 100 or 120 days of reserves,” said Mia Geng, an analyst at industry consultancy FGE. “National security is among the priorities for the coming years and this will sustain continuous stockbuilds.” Unlike the U.S., where data about the nation’s strategic petroleum reserves are updated publicly and regularly, the size of China’s crude stockpiles are shrouded in mystery. There’s also less of a distinction between government reserves and commercial stockpiles, with many of the country’s biggest energy companies being state-owned.
  • 7. Copyright © 2021 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 endeavors 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 7 China was moving forward with plans to buy up oil for its emergency reserves in April of last year, people familiar the plans said at the time. The initial target was to hold government stockpiles equivalent to 90 days of net imports, which could eventually be expanded to as much as 180 days when including commercial reserves, they said. Last year’s crash in oil prices and China’s rapid rebound from the first wave of the Covid-19 pandemic set the stage for a flurry of crude purchases. However, stockpiling has leveled off as oil prices rebounded and storage space runs out, Capital Economics Ltd. said in a note this month. Fuel demand has also fallen this year amid a resurgence of the coronavirus in some parts of China. This year’s crude purchases will be driven by refinery operations and new plant start-ups rather than filling the nation’s reserves that the market witnessed in 2020, according to Michal Meidan, director of China Energy Research Programme at the Oxford Institute for Energy Studies. Emergency reserves, including commercial storage, exceeded 100 days worth of net imports in the third quarter of last year, according to Yuntao Liu, a London-based analyst with Energy Aspects Ltd. “Going forward, as crude prices rise and plants launch seasonal maintenance from April, the need for re-stockpiling is not that urgent.” China’s crude imports averaged 10.9 million barrels a day last year, according to import data compiled by Bloomberg, suggesting current stockpile levels of around 1.09 billion barrel. That aligns with an estimate from market intelligence firm Kayrros that the nation’s oil inventories rose to 1.01 billion barrels in the week through Feb. 14. Stockpiles reached a record of around 1.04 billion barrels in September last year, according to Kayrros.
  • 8. Copyright © 2021 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 endeavors 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 8 U.S Cold weather results in near-record Gas withdrawals and lowest productions Source: U.S. Energy Information Administration, Weekly Natural Gas Storage Report Significant demand for natural gas in mid-February led to the second-largest reported withdrawal of natural gas from storage in the United States, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). Weekly stocks fell by 338 billion cubic feet (Bcf) in the week ending February 19, 2021, nearly three times the average withdrawal for mid-February. A record amount of natural gas, 156 Bcf, was withdrawn during that week in the South Central region, which includes Texas. Colder-than-normal temperatures across much of the Lower 48 states, especially in Texas, led to increased demand for space heating. Population-weighted heating degree days (HDDs) represent temperature deviations lower than 65 degrees Fahrenheit and are weighted based on population distributions across the country. For the week ending February 19, U.S. HDDs reached 254, or nearly 40% colder than normal, according to the National Oceanic and Atmospheric Administration.
  • 9. Copyright © 2021 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 endeavors 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 9 In Texas, the two most common space heating fuels are electricity (the primary heating fuel in more than 60% of Texas homes, according to Census data) and natural gas (36%). Increases in electricity demand also affect natural gas demand because natural gas is the most prevalent electricity generation source in Texas and in much of the South. Estimated U.S. natural gas demand on February 14, 2021, reached 148.3 Bcf, surpassing the previous single-day record set in January 2019, according to estimates from IHS Markit. In addition, during the week ending February 19, U.S. average weekly dry natural gas production fell by 13.8 billion cubic feet per day (Bcf/d), according to estimates from IHS Markit. The decline in natural gas production was primarily because of freeze-offs, which occur when water and other liquids freeze at the wellhead or in natural gas gathering lines near production activities. Dry natural gas production fell by an estimated 10 Bcf/d in Texas alone, according to IHS Markit estimates. Information in EIA’s Weekly Natural Gas Storage Report is also available on the Natural Gas Storage Dashboard, which shows natural gas inventories, storage capacity, prices, and consumption. Texas natural gas production fell by almost half during recent cold snap During the cold snap that affected much of the central part of the country, U.S. dry natural gas production fell to as low as 69.7 billion cubic feet per day (Bcf/d) on February 17, a decline of 21%, or down nearly 18.9 Bcf/d from the week ending February 13. Natural gas production in Texas fell almost 45% from 21.3 Bcf/d during the week ending February 13 to a daily low of 11.8 Bcf/d on Wednesday, February 17, according to estimates from IHS Markit. Temperatures in Texas averaged nearly 30 degrees Fahrenheit lower than normal during the week of February 14. The decline in natural gas production was mostly a result of freeze-offs, which occur when water and other liquids in the raw natural gas stream freeze at the wellhead or in natural gas gathering lines near production activities. Unlike the relatively winterized natural gas production infrastructure in northern areas of the country, natural gas production infrastructure, such as wellheads, gathering lines, and processing facilities, in Texas are more susceptible to the effects of extremely cold weather. After reaching a daily low on February 17, natural gas production in Texas began increasing as temperatures started to rise. Daily production reached an estimated 20.9 Bcf/d on February 24, only about 0.3 Bcf/d lower than the average in the week ending February 13.
  • 10. Copyright © 2021 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 endeavors 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 10 NewBase February 27-2021 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil Falls With Stronger Dollar Denting Best Start to Year Ever Bloomberg + NewBase Oil fell the most since November with a stronger dollar and concerns surrounding inflation weighing on crude’s best start to the year on record. West Texas Intermediate ( WTI – Apr- 21) for April delivery fell $2.03 to settle at $61.66 a barrel, The U.S. crude benchmark rose 3.8% this week. Brent for May-21 settled at 64.42 this settlement, following the expiry of Brent- Apr-21 which expired on Friday, declined 75 cents to end the session at $66.13 a barrel. , Oil price special coverage
  • 11. Copyright © 2021 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 endeavors 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 11 The contract gained 5.1% this week, The more actively traded May contract declined $1.69 to settle at $64.42 a barrel Futures in New York declined 3.2% on Friday, with a rising dollar reducing the appeal of commodities priced in the currency. Yet, the U.S. crude benchmark still managed to post a nearly 18% gain this month as inventories worldwide tighten and pockets of demand return. Domestic crude production dropped in 2020 for the first time in four years, according to the U.S. government. “Prices have a little bit more risk to the downside from the recent run that we’ve seen,” said Tariq Zahir, managing member of the global macro program at Tyche Capital Advisors LLC. “To continue going higher from here, demand has to come back pretty substantially.” Crude prices have notched the largest year-to-date gain than in any year prior for the same time period, in part due to OPEC+ production curbs helping to deplete global stockpiles. Plus, the unprecedented cold blast that recently halted millions of barrels of U.S. output means oil markets are about 100,000 barrels a day tighter than previously thought, according to JPMorgan Chase & Co. Supply scarcity may worsen in the coming months as North Sea fields undergo major maintenance. The Organization of Petroleum Exporting Countries and its allies will meet next week to decide on output levels. While Russia has signaled it favors a further easing of production cuts, the country’s oil output dipped below its OPEC+ target this month, meaning it failed to take full advantage of the more generous quota it was afforded after January’s OPEC+ meeting. “We all know the OPEC return to production is looming over the market pretty strongly,” said Gary Cunningham, director at Stamford, Connecticut-based Tradition Energy. Continued declines in global supplies will “depend on how much production OPEC brings back and whether or not the sanctions on Iran are lifted.” Soaring bond yields on Thursday were the latest sign that accelerating inflation could trigger a pullback in monetary policy support that has helped fuel gains in risky assets during the pandemic.
  • 12. Copyright © 2021 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 endeavors 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 12 While global bonds have since stabilized, a less accommodative approach to monetary policy could have ripple effects across commodity markets. “Crude oil was in super overbought territory,” and due for a pullback, said Bob Yawger, head of the futures division at Mizuho Securities. Plus, investors are “still anxious about rates ripping higher.” U.S. Output to First Drop in Four Years U.S. crude production decreased for the first time in four years in 2020 as the pandemic crushed global oil demand. American crude output averaged 11.313 million barrels a day last year, down nearly 8% from the year prior, according to U.S. Energy Information Administration. That’s the lowest production rate since 2018 and it marked the biggest year-over-year percentage decline since 1949. Covid Drop U.S. oil production fell for the first time in four years in 2020 as demand collapsed Drillers laid down rigs in oil fields across the country after the heath crisis sapped demand for gasoline, diesel and jet fuel derived from crude. At the peak of the market crisis in April, West Texas Intermediate futures settled at -$37.63 a barrel, marking the first time in history the commodity closed below zero. Last year, America’s shale oil engine, Texas, saw output fall more than 200,000 barrels a day compared with the year before, EIA data show. Production in the Gulf of Mexico slumped to 1.654 million barrels a day last year, from 1.896 million in 2019, because of a record hurricane season.
  • 13. Copyright © 2021 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 endeavors 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 13 NewBase Special Coverage The Energy world – Feb-27- -2021 Building the World’s Largest Renewable Energy Ecosystem Peter Terium + NewBase THE LINE—a 105-mile-long belt of hyperconnected communities in Saudi Arabia—is taking on the global energy challenge by pledging to create a vast carbon-free ecosystem to power these communities. Energy production and use around the world has long been the leading cause of unsustainable living. Energy accounts for two-thirds of total greenhouse gas emissions[1], and is primarily responsible for warming the climate and the resulting large-scale shifts in weather patterns, wildlife populations and sea levels. Under a business-as-usual scenario, by 2030 the world faces a minimum of $2 billion a day in economic losses from weather events, severely impacting human health, livelihoods, food, water and biodiversity. “Building a 100% renewable energy ecosystem at scale has never been done before,” says Peter Terium, Head of the Energy Sector for NEOM, the planned $500 billion, 10,230-square-mile mega-region of the future that includes THE LINE. “Most countries that have set ambitious targets go for 40% or 50%, and that’s doable. But the second step, from 40% or 50% to 100%, is really a challenge. We want to do that in the next 10 years.”
  • 14. Copyright © 2021 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 endeavors 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 14 “Building a 100% renewable energy ecosystem at scale has never been done before. We want to do that in the next 10 years.” HEAD OF THE ENERGY SECTOR, NEOM , Peter Terium THE LINE, which will link Saudi Arabia’s Red Sea coast in a straight line to mountains and valleys in the country’s interior, is betting on the NEOM region’s unrivaled solar-by-day, wind-by-night climate profile to quickly reach its zero-carbon goal. “I think we can do it because we have the unique combination of sun in the daytime and wind mainly in the evening and during the night, and these two complementary technologies will allow us to achieve a 100% mix of renewable electricity within the years to come,” says Terium. “Most concepts stall because it’s too expensive to make a 100% renewable fuel mix with the combination of resources available. We want to be able to demonstrate that not only is this technically possible, but it is also economically possible.” PROGRESS TO DATE Since 2017, Saudi Arabia has embarked on a strategy to exponentially expand its solar and wind capacity, and has targeted private-sector investment through contracts awarded at auction-style tenders under its National Renewable Energy Program. In early 2019, the government announced new renewable energy targets, aiming to generate 27.3 GW by 2023 and 57.8 GW by 2030. SAUDI ARABIA’S RENEWABLE ENERGY TARGET Construction of THE LINE will begin this year. “We are already embarking on a master plan to work out the infrastructure that needs to be in place, what the grid design looks like, microgrids for the city environment and PC-based transport grids for the larger distances,” explains Terium. “All of it is in the design phase, and we are going to build a lot of that in the next months and years.” Beyond producing renewable energy from the sun and wind, THE LINE will also become a production site for hydrogen produced with low environmental impact. In July 2020, NEOM signed an agreement with ACWA Power and Air Products to build the world’s largest green hydrogen plant—a $5 billion venture that will produce more than 4 GW of solar and wind power and yield 650
  • 15. Copyright © 2021 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 endeavors 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 15 tons per day of hydrogen and 1.2 million tons per year of ammonia. NEOM calculates that the plant will save more than 3 million tons of CO2 emissions annually once it comes on line in 2025. Green hydrogen will play a critical role in the effort to remove carbon from the energy production cycle in Saudi Arabia, a major goal of the circular carbon economy model the country is promoting as a sustainable, pragmatic and cost-effective approach to achieve ambitious climate goals. While renewables promote decarbonization primarily via electricity production, green hydrogen, which is produced using renewable energy, contributes to decarbonization of the parts of the energy sector that cannot be supported by electrification. Hydrogen produced with renewable energy generates zero emissions, and can be stored in high densities and used as fuel for transport and in power plants; in manufacturing industries such as steel, cement and food production; and as a chemical ingredient to make plastics, fertilizers, glass and steel. Technological advancements and falling costs continue to strengthen the market. FROM OIL TO HYDROGEN EXPORTER THE LINE aims to build on Saudi Arabia’s energy-exporting knowhow, infrastructure and assets— the Kingdom is the world’s largest exporter of crude oil—through new hydrogen and ammonia exports. While exporting electricity has its limitations—requiring long cables that often cross difficult terrain, with the potential for line losses—green hydrogen can be exported by road, pipeline or tanker. From NEOM’s Red Sea coast ports, this hydrogen will reach European and Asian markets, positioning the country as a pioneer in renewable technology and ensuring that the Saudi energy sector continues to be both a substantial contributor to GDP and an engine of skilled job creation. “ACWA is a proud partner in NEOM’s pioneering venture into the global green hydrogen market,” says Mohammad Abunayyan, Chairman of AC WA Power. “This groundbreaking project will see
  • 16. Copyright © 2021 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 endeavors 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 16 Saudi Arabia set new global benchmarks for green hydrogen, fueled by our shared commitment to environmental stewardship and to bring a circular carbon economy to life here in Saudi Arabia, in line with the Kingdom’s Vision 2030 to become a global leader in the energy transition.” The NEOM region provides a set of specific features that make a green hydrogen economy viable. Beyond the availability of low-cost, renewable energy for competitive green hydrogen production, NEOM’s strategic location and the Kingdom’s existing energy infrastructure and logistic assets provide strong support for the national Vision 2030 plan to diversify the economy away from oil and gas to ensure Saudi Arabia’s sustainability. NEOM has formed partnerships with the country’s leading energy suppliers, including Saudi Aramco, the national oil company, and SABIC, one of the world’s largest petrochemical manufacturers. A COMMUNITY OF DREAMERS AND DOERS Building THE LINE’s radical energy ecosystem requires entrepreneurial human talent with a range of expertise. Big Data and artificial intelligence experts will be required to manage the complex system that will integrate many individual producers and various wind and solar devices that produce electricity. THE LINE will also pioneer new forms of transport electrification and energy use, which will require the creation of new digital applications. “The types of people that we want to build this future are exactly the dreamers and doers who are excited about exploring these new challenges,” says Terium. “What excites me most, even beyond the typical energy topics, is building a community and bringing together people to work on this. Innovation doesn’t have a passport, it doesn’t have a religion and it doesn’t have personal preferences. The heart of innovation is bringing together a very diverse society of many people, which in its diversity can develop these good ideas.”
  • 17. Copyright © 2021 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 endeavors 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 17 NewBase Energy News 11 February 2021 - Issue No. 1406 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services
  • 18. Copyright © 2021 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 endeavors 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 18 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 2021 K. Al Awadi
  • 19. Copyright © 2021 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 endeavors 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 19
  • 20. Copyright © 2021 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 endeavors 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 20
  • 21. Copyright © 2021 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 endeavors 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 21 For Your Recruitments needs and Top Talents, please seek our approved agents below