New base 28 november 2019 energy news issue 1299 by khaled al awadi -compressed

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Energy News 28 November 2019 - Issue No. 1299 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE MoEI opens nuclear tech centre at Khalifa university
Gulf News + NewBase
The UAE Ministry of Energy and Industry (MoEI) has opened the Emirates Nuclear Technology
Center, at Khalifa University Campus in Abu Dhabi which will support the long-term sustainability
of the UAE Peaceful Nuclear Energy Program by creating a dedicated innovation hub for peaceful
nuclear technologies.
A MoU was exchanged by Suhail Bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of
Energy and Industry, and Lee Taeho, Second Vice Minister of Foreign Affairs, Republic of Korea,
during the launch ceremony held today.
It has been signed between the UAE MoEI and the Ministry of Science, and Information and
Communications Technology of Republic of Korea, under the UAE and Korea Consultation
Committee on Nuclear Technology.
The MoU outlines the framework of cooperation on research projects between the center’s
relevant parties.

The signing ceremony was attended by Enec CEO Engineer Mohamed Al Hammadi; Federal
Authority of Nuclear Regulation (FANR) Director General Christer Viktorsson; Khalifa University
(KU) Executive Vice President Dr. Arif Sultan Al Hammadi and senior officials from all five entities.
The Emirates Nuclear Technology Center will engage in research projects designed and approved
by Enec and FANR, and will be conducted by students, academics and researchers from Khalifa
University.
The Center’s initial research projects will focus on three areas: nuclear safety and systems,
nuclear materials science and chemistry, and radiation safety in the environment.
Through the MoU, the center will benefit from sharing knowledge and expertise from the Korean
Nuclear energy industry, which has been operating for over 40 years, along with experience in
developing nuclear research reactors.
“It is my pleasure to launch the Emirates Nuclear Technology Centre in Abu Dhabi, which is an
outcome of our collaborative approach with our South Korean government counterparts and all
UAE nuclear stakeholders, who are working to further Nuclear Science & Technology Research
and Development," remarked Al Mazrouei.
"Investing in research and innovation are prerequisites for the long-term success of the UAE’s
peaceful nuclear energy industry. It will further position the UAE as an international role model for
the development of a peaceful nuclear energy program by building UAE National capabilities and
conducting industry-leading research on radiation safety and nuclear energy technologies," he
added.
On the deal, Taeho said: "Within the frame of the High-Level Consultation on Nuclear
Cooperation, Korea and our UAE partner are expanding areas of cooperation in the Barakah
Nuclear Energy Plant construction and operations, new nuclear energy project in third countries,
nuclear R&D, and safety regulations."
"I believe that the MoU on nuclear energy and R&D cooperation will serve as a catalyst that will
further accelerate our bilateral nuclear energy cooperation," he added.
Al Hammadi expressed delight at being a part of this initiative to establish the Emirates Nuclear
Technology Center.
"As the UAE’s emerging peaceful nuclear energy industry continues to grow and develop,
collaboration and cooperation between academia and industry will allow us to ensure the long-

term sustainability of the UAE Peaceful Nuclear Energy Program, as well as enhancing our global
competitiveness and high standards of safety. Through its projects and research the Center will
provide talented UAE Nationals with the opportunity to work alongside international experts in
conducting cutting-edge research, thereby developing their skills and capabilities within the field of
peaceful nuclear energy," he noted.
Dr Arif Sultan said KU was delighted to join the official launch of the Emirates Nuclear Technology
Center (ENTC), hosted on its campus, in collaboration with stakeholders including their partners
ENEC and FANR.
"The ENTC reflects another strong commitment from Khalifa University to contribute to enhancing
the UAE’s nuclear technology research capability and support our key stakeholder’s goals for the
delivery of safe, clean and efficient nuclear technology to meet the UAE 2030 vision. The center
will significantly optimize the multidisciplinary capabilities through Khalifa University’s diverse
community of faculty and researchers to meet the national objectives," noted Dr Sultan.
Viktorsson said investing in research and innovation in nuclear technologies was indispensable to
ensure the sustainability of the nuclear program.
"We will work closely with our partners to identify priority areas, focus on strategic nuclear sector
research, ensure continuity of projects and provide support to national and international initiatives
in line with FANR’s R&D Policy, which was launched in 2017," he noted.
FANR will support the mandate of the new center by utilizing its Research and Development
Program. Its Research and Development Program aims to develop and attract UAE Nationals by
providing opportunities for postgraduate education and research in the nuclear field, said
Viktorsson.
It also aims to ensure sound technical basis for all regulatory activities, mitigate risks related to
safety, security and safeguards in the UAE nuclear energy sector,” he stated.
The MoU comes at a pivotal time for ENEC, with the 4 Units of Barakah Nuclear Energy Plant
more than 93% complete. Unit 4 is over 82% complete, Unit 3 is more than 91% and Unit 2 is
more than 95%.
Unit 1 construction has been completed and is currently undergoing operational readiness
preparations pending regulatory approval and receipt of the Operating License for Unit 1 from
FANR, anticipated in early 2020.

Oman Gas gears up for role as Transmission System Operator
Oman Observer + NewBase
A Royal Decree conferring upon Oman Gas Company (OGC) the status of ‘Transmission System
Operator’ (TSO) of the Sultanate’s natural gas network is anticipated before the end of this year,
according to a top official of the wholly government-owned entity.
Sultan al Burtmani, Acting Executive Managing Director of OGC, said the company is currently
undergoing a transformation in preparation for its new mandate as the nation’s sole independent
gas transmission system owner and operator (Gas TSO).
Speaking at a recent media event, the official said that OGC — a subsidiary of Oman Oil & Orpic
Group — is currently focused on, among other things, consolidating the group’s gas transmission
assets, centring on a 2,500 km grid spanning the length and breadth of the country.
Also as part of this consolidation effort, select gas pipeline networks operated by Petroleum
Development Oman (PDO) and BP Oman and being brought under OGC’s remit, he noted,
adding that a Royal Decree ratifying OGC’s role as the Gas TSO is likely before the year-end.
OGC’s impending elevation to Gas TSO will mark the culmination of a landmark effort by the
Ministry of Oil and Gas, as well as the Omani government, to overhaul and modernize the gas
market in the Sultanate.
Earlier this year, the Sultanate’s preeminent gas transporter signed a 50-year concession
agreement with the Omani government covering the ownership and operation of the Sultanate’s
gas transmission system of pipelines, metering, compressor and gas supply stations under a new
revenue framework.
The new framework, fashioned on the Regulatory Asset Base (RAB) model, will enable the
introduction for the first time of a cost-reflection tariff for the transportation of gas across the
network. It envisions the creation of a new gas market regulated by the Authority for Electricity

Regulation, with the Ministry of Oil & Gas playing the role of shipper and OGC as Transmission
System Operator.
According to experts, the establishment of a Regulatory Asset Base (RAB) model will enable OGC
to calculate gas transportation costs and set tariffs that are “stable and predictable”. These tariffs
will generate a steady stream of revenues for OGC to finance, among other things, new capacity
growth or procure commercial debt for future expansions.
In effect, the RAB model will enable OGC to end its long-standing dependence on the government
for its funding needs and thereby become financially independent. This is already evident from
OGC’s success, a year ago last November, when it secured $1.1 billion in bank financing to fund
the acquisition of government-owned pipeline assets, as well as pay for planned expansions of the
gas transmission system.

Saudi Arabia adds first solar power plant to grid – Sakaka P.S
The National + NewBase
Saudi Arabia's first solar project, a 300MW scheme at Sakaka will reach full
commercial operation by year-end. Saudi Arabia connected its first solar power project
to the grid as it looks to expand its renewable energy programme to free up more crude
for export markets.
Acwa Power, the developer of the kingdom's 300 megawatt Sakaka solar photovoltaic
power project in the northern Al Jouf region, expects to start full commercial operation
by year-end.
The solar plant, built at a cost of 1.2 billion Saudi riyals (Dh1.17bn) is currently
producing power in a pilot phase.
"We are confident to deliver the project on schedule and commercial operation of the
plant before the end of this year," said Acwa Power chairman Mohammad Abunayyan.
Saudi Arabia has been moving away from burning crude oil to generate power,
switching first to gas-fired plants and subsequently moving towards wind and solar
schemes as it seeks to free up its crude for the export market. The kingdom recently
revised its renewable energy target to be achieved by 2024 to 27.3GW, from 9.5GW
previously.
Around 70 per cent of renewable schemes in the kingdom will be backed by the
sovereign investment vehicle, the Public Investment Fund, while the remainder will be
awarded through the Renewable Energy Project Development Office within the Saudi
energy ministry.

Saudi Arabia is also set to become the Middle East's biggest wind power market in the
next decade. The kingdom will account for almost half of the region's wind capacity
additions by 2028.
Developers will build 6.2GW of wind capacity – or 46 per cent of the region’s total wind capacity
addition – between 2019 and 2028, according to Wood Mackenzie Power & Renewables.
The kingdom's first wind power project, costing $500m, reached financial close in July. The
400MW wind farm is being executed by a consortium led by France’s EDF and Abu Dhabi's
Masdar.
Acwa Power will also reach financial close on an $11.5bn gasification project being developed
with Saudi Aramco and Air Products by the close of the year, its chief executive Paddy
Padmanathan told The National in an interview last month.

Venezuela offers suppliers payment in Chinese yuan - sources
Reuters + NewBase
Venezuela’s government and its oil company PDVSA have offered to pay suppliers and
contractors into accounts in China using the yuan currency, five people familiar with the matter
said.
The move made in recent months is the latest example of how Caracas has sought new ways of
making international payments since sweeping sanctions by Washington, intended to force out
socialist President Nicolas Maduro, cut off the country’s access to the U.S. financial system.
Officials have made the proposal verbally to at least four companies that provide services to the
public sector, said the people, including two government officials and three sources from private
companies in the financial or oil sectors. The individuals declined to disclose which companies
have been approached.
The companies are evaluating the proposal, the sources said. Reuters could not determine
whether any such payments in yuan have been made.
China’s central bank, the Peoples’ Bank of China, did not respond to a faxed request for
comment. PDVSA, Venezuela’s central bank, and Venezuela’s information ministry did not
respond to requests for comment.

Venezuelan public entities have traditionally paid private sector partners in the local bolivar
currency or U.S. dollars. But hyperinflation and U.S. sanctions, which prohibit American
companies from doing business with Venezuela’s public sector, are complicating those methods.
The offer comes after Venezuela’s government and PDVSA have paid some suppliers and
contractors with euros in cash, which they have received from some oil and gold sales, in
response to the loss of access to the U.S. financial system due to the sanctions.
Paying suppliers in yuan would allow Venezuela to take advantage of funds it has available in
China, without touching the U.S. financial system. However, two of the sources said the process
of opening accounts at Chinese banks was proving complicated.
PDVSA and Venezuela’s central bank have long maintained accounts in China, in part thanks to a
financing deal inked more than a decade ago that saw China lend some $50 billion to the OPEC
nation in exchange for crude shipments.
Venezuela’s central bank has at least $700 million in yuan in an account at China’s central bank,
which it received earlier this year as compensation for an oil shipment, according to two people
with knowledge of the Venezuelan central bank’s operations. Reuters could not independently
confirm this.
Receiving payments in foreign currency, or overseas banks, are “the kind of setup that some
contractors now have to engage in to get paid,” said Raul Gallegos, consultancy Control Risks’
director for the Andean region. “This will become standard operating procedure as long as Maduro
and U.S. sanctions remain in place.”
Venezuela’s offer to pay in yuan comes even as some Chinese entities have taken steps to try to
distance themselves from the sanctioned country. China National Petroleum Corp, one of the
largest foreign investors in Venezuela’s oil sector, in August stopped lifting crude from Venezuelan
ports due to worries about sanctions.
Analysts said they expect China’s imports of Venezuelan crude to have fallen to zero last month.
But China is importing more and more crude blends from Malaysia, which include some
Venezuelan oil

Egypt signs $430-million natural gas deal at investment forum
Reuters + NewBase
Egypt said on Saturday it had signed several multimillion-dollar energy investment accords
including a $430-million deal for Texas-based Noble Energy to pump natural gas through the East
Mediterranean Gas Company’s pipeline.
Under another Noble agreement,
which will also be financed by the US
International Development Finance
Corporation, the energy company will
manufacture petroleum products in
partnership with Egyptian company
Dolphinus Holdings.
The cabinet detailed the plans at the
end of an Africa investment forum held
on the site of the country’s planned
new administrative capital in the
desert east of Cairo.
Amsterdam-based Lekela also announced the start of construction work on its West Bakr wind
power plant, which will have a capacity of 250 megawatts and require a total investment of $350
million.
Lekela CEO Chris Antonopoulos said Siemens Gamesa will build the West Bakr plant in the Gulf
of Suez, which is expected to create 550 jobs, according to the cabinet statement.

U.S. average fuel prices, similar to the previous two Thanksgivings
Source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update
As U.S. households prepare for Thanksgiving and the holiday travel season, gasoline prices this
year are similar to prices in recent years. As of Monday, November 25, regular retail gasoline
prices averaged $2.58 per gallon (gal) nationwide, similar to the $2.61/gal on the Monday before
Thanksgiving in 2018 and the $2.57/gal in 2017.
According to a joint forecast from the American Automobile Association (AAA) and IHS Markit,
more than 55 million travelers are expected to drive 50 miles or more to celebrate Thanksgiving
this year. This level of travel would mean 1.6 million more automobile travelers than last
Thanksgiving, the most since 2005 and the 11th consecutive increase in automobile travel during
the Thanksgiving holiday.
AAA and IHS Markit expect automobile travel volumes for Thanksgiving 2019—and, by extension,
gasoline demand—to be higher because of improved macroeconomic indicators, including high
rates of employment, growing disposable income, strong consumer spending, and record levels of
household wealth, all of which have increased since last year.
Similarly, in its most recent Short-Term Energy Outlook, the U.S. Energy Information
Administration (EIA) expects the average number of vehicle miles traveled this month to be 1.6%
more than during November 2018. Despite the intensity of travel during the week of Thanksgiving,
people generally travel less in November than in other months of the year.
According to U.S. Department of Transportation data, since 1991, vehicle miles traveled (VMT) for
November have averaged 13% lower than the annual average, making it the fourth-lowest month
for travel after the three winter months (December through February).

EIA expects this November’s VMT to also be relatively low but forecasts that U.S. drivers will
travel 8.8 billion miles per day in November 2019, only 1.8% fewer than the forecast 2019 average
of 8.9 billion vehicle miles traveled per day for 2019 as a whole.
Average U.S. regular retail gasoline prices have declined since their year-to-date highs in May.
This decline is largely a result of a corresponding decline in the price of gasoline’s primary input:
crude oil. The price of North Sea Brent—a global benchmark for crude oil and the most relevant
determinant of U.S. gasoline prices—was $62.62 per barrel on November 25, 16% lower than its
year-to-date high in May.
Similarly, U.S. average retail gasoline prices as of November 25 are 10% lower than their May
average. Other factors, such as the switch to winter gasoline blends and seasonal declines in
motor gasoline demand, also affect U.S. average retail gasoline prices.

Retail gasoline prices vary significantly across the United States as a result of regional supply and
demand balances, gasoline specification requirements, and taxes. Gasoline prices are typically
highest on the West Coast, which has relatively limited surplus refining capacity, higher state fuel
taxes, and unique product specifications that make gasoline more costly to manufacture. As of
November 25, West Coast gasoline prices averaged $3.47/gal, $0.89/gal more than the U.S.
average.
By comparison, the Gulf Coast region has abundant refinery capacity, access to lower-priced
crude oil inputs, and lower state fuel taxes. As a result, the region’s gasoline prices averaged
$2.24/gal as of November 25, or $0.34/gal lower than the U.S. average.

NewBase 28 November 2019 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil Drops as U.S. Inventories Rise, Trump Signs Hong Kong Bill
Reuters + Bloomberg + NewBase
Oil prices fell for a second day on Thursday after official data showed U.S. crude and gasoline
stocks rose against expectations as production hit a record.
Brent crude futures were down 22 cents, or 0.3%, at $63.84 a barrel by 10.13 GMT, having
dropped 0.3% on Wednesday.
U.S. West Texas Intermediate crude fell 33 cents, or 0.6%, to $57.78, after falling 0.5% in the
previous session.
Crude stockpiles in the United States swelled 1.6 million barrels last week as production rose to a
record of 12.9 million barrels per day (bpd) and refinery runs slowed, the Energy Information
Administration said. Analysts in a Reuters poll had forecast a drop of 418,000 barrels.
The United States is currently the largest consumer and producer of oil in the world.
Oil price special
coverage

More bearish was a 5.1 million-barrel rise in gasoline stocks, compared with forecasts for a 1.2
million-barrel gain.
“Stubbornly high U.S. crude inventories have seen oil prices ease in Asia today,” said Jeffrey
Halley, senior market analyst at OANDA. But “dips ... are likely to be limited for now, as the U.S.
holiday mutes activity,” he added, referring to the U.S. Thanksgiving holiday.
Oil prices had risen this week on expectations that China and the United States, the world’s two
biggest crude users, would soon sign a preliminary agreement, putting an end to their 16-month
trade dispute.
Investors have also been focusing on next week’s meeting of the Organization of the Petroleum
Exporting Countries (OPEC) and allies including Russia, which have been withholding production
to support prices.

“Traders will likely stay cautious before the coming OPEC meeting to ascertain for supply-side
commitments from key producers in 2020,” said Benjamin Lu, analyst at Phillip Futures in
Singapore.
OPEC and its allies, a group known as OPEC+, have agreed to cut output to bolster prices by 1.2
million barrels per day (bpd) through to March 2020. The group may extend the cuts at their
meeting in Vienna on Dec. 5-6.
Forces based in eastern Libya said on Wednesday they had driven rival factions from the 70,000-
bpd El Feel oilfield after attacking the area with air strikes, leading to production being halted and
raising some worries about supply.
Oil fell for a second day after U.S. crude production rose to a record and President Donald Trump
signed a bill into law expressing support for the Hong Kong protesters, potentially complicating
trade talks with China.
Futures declined as much as 0.6% in New York after dropping by 0.5% Wednesday. American
stockpiles defied analyst expectations to expand for a fifth week and output reached 12.9 million
barrels a day, according to the Energy Information Administration.
The legislation signed by Trump requires annual reviews of Hong Kong’s special trade status
under American law. China threatened to retaliate in a statement that didn’t offer any details.
Crude has been rising since early October on signs the U.S. and China will reach a limited trade
deal, although it’s not clear whether an agreement that doesn’t roll back existing tariffs will do
much to spur oil demand. On the supply side, expectations that OPEC and its partners will make
deeper cuts to crude production seem to have all but evaporated, with only one of 35 traders and
analysts surveyed by Bloomberg forecasting more reductions.
“Asian oil traders are perhaps wary of China’s reaction to the passing of the U.S. Hong Kong law”
and the possible impact on trade negotiations, Jeffrey Halley, a senior analyst at Oanda in

Singapore, said in a note. Dips in the spot market are likely to be limited for now as the U.S.
Thanksgiving holiday mutes activity, he said.
It’s unclear if the U.S. bill on Hong Kong will be a significant hurdle to reaching a limited trade
deal. When signing the legislation, Trump signaled that he didn’t want the broader relationship
with China to veer off track. He said on Tuesday the two sides were in the “final throes” of an
agreement that would start to unwind tariffs on about $500 billion in products traded between
them.
U.S. stockpiles rose by 1.57 million barrels in the week through Nov. 22 and crude production
climbed by 100,000 barrels a day, according to the EIA data. Inventories have swelled in 10 of
the last 11 weeks and are at the highest level since July.
Russia, OPEC’s largest ally in a deal to cut oil production, is once again failing to keep its side
of the bargain, exceeding its output cap by around 54,000 barrels a day from Nov. 1 to Nov. 25,
according to energy ministry data seen by Bloomberg.
Libya’s state oil company halted output at the El-Feel oilfield amid clashes between fighters
loyal to the internationally recognized government in the west of the OPEC nation and those of
eastern commander Khalifa Haftar.
Crude futures fell 0.4% to 461.6 yuan on the Shanghai International Energy Exchange after
rising 0.7% yesterday
U.S. oil drillers cut rigs for record 12th month in a row
U.S. energy firms reduced the number of oil rigs operating for a record 12th month in a row after
this week cutting rigs for a sixth consecutive week as producers slash spending on new drilling.
Drillers cut three oil rigs in the week to Nov. 27, bringing the total count down to 668, the lowest
since April 2017, energy services firm Baker Hughes Co said on Wednesday in a report released
two days early due to the U.S. Thanksgiving holiday.
In the same week a year ago, there were 887 active rigs. In November, drillers cut 28 oil rigs.

That puts the oil rig count on track to fall for the first time in three years. The 2019 decline,
however, so far only totals 217, which is much smaller than 2015’s record 963 rig decline,
according to Baker Hughes data going back to 1987.
The oil rig count, an early indicator of future output, declined for a record 12 months in a row as
independent exploration and production companies cut spending on new drilling as shareholders
seek better returns in a low energy price environment.
U.S. financial services firm Cowen & Co has said that 22 of the exploration and production (E&P)
companies it watches reported spending estimates for 2020.
Cowen said there were 16 decreases, one flat and five increases, implying a 13% year-over-year
decline in 2020, which puts spending on track to decline for a second year in a row.
Cowen has said the producers it watches expected to spend about $80.5 billion in 2019 versus
$84.6 billion in 2018.
Year-to-date, the total number of oil and gas rigs active in the United States has averaged 955.
Most rigs produce both oil and gas.
Analysts at Simmons & Co, energy specialists at U.S. investment bank Piper Jaffray, said it
lowered its rig count forecast due to the significant contraction in land rigs over the past several
weeks.
Simmons now projects the annual average combined oil and gas rig count will slide from a four-
year high of 1,032 in 2018 to 943 in 2019 and 816 in 2020 before rising to 849 in 2021.
That compares with Simmons previous forecast of 950 in 2019, 905 in 2020 and 958 in 2021.

NewBase Special Coverage
News Agencies News Release 28 August 2019
Electrical Car the heat is on from West to East
he transition towards pure electric motoring is accelerating and, as demand starts to rise, more
manufacturers are unveiling new electric cars. Even today, you’ve quite the range of options if you
want an electric vehicle (EV) – including cars such as the fabled Tesla Model 3, the
compact Renault Zoe, the Hyundai Kona Electric SUV and the ever-popular Nissan Leaf.
Over the next several years, though, you can expect the number of electric cars offered by
manufacturers to rapidly grow in number. The car industry’s heavy-hitters have been transforming
their businesses and plunging millions into the design and development of electric cars;
consequently, in the near future, we’re going to see the fruits of that huge investment.
Musk suggests Tesla has 250,000 orders for Cybertruck
Tesla Inc has received 250,000 orders for its electric pickup truck unveiled five days ago, Chief
Executive Officer Elon Musk suggested in a tweet on Tuesday. Musk has been promoting the
Cybertruck on Twitter and cryptically tweeting out updates to the number of orders the company
has received since the launch late on Thursday.

After more than 50 interaction on Twitter since the launch, he tweeted “250k” on Tuesday night in
an apparent reference to the number of orders. The company did not immediately confirm the
figure after regular market hours. Tesla opened preorders immediately after the unveiling and
allowed potential buyers to book the truck by depositing a fully refundable $100, compared with
the $1,000 it charged for booking Model 3 sedans in 2016.
Feuding South Korean firms risk to disrupt electric car battery supplies
In 2018, South Korea’s SK Innovation beat its larger, local rival LG Chem to a multibillion dollar
deal to supply German carmaker Volkswagen with electric vehicle batteries in the United States.
With great fanfare, SK Innovation (SKI) broke ground in March on a $1.7 billion factory in
Commerce, Georgia, about 200 km from VW’s Chattanooga plant, which will be the automaker’s
electric vehicle hub in the United States.
LG Chem (LGC) had other ideas.
Stung by missing out on the VW deal to the new kid on the block and the departure of 77
employees for its rival across the Han River in Seoul, LGC took SKI to court in the United States
in April accusing it of misappropriating trade secrets.
Fast forward seven months and the two firms have hit each other with US lawsuits for battery
patent infringements in a bitter row that threatens to disrupt the launches of electric vehicles (EVs)
by some of the world’s biggest carmakers.
US court filings show the feuding firms are trying to stop each other from importing and selling EV
batteries destined for the SUVs VW will build in Tennessee as well as GM’s Bolt, Ford pickups,
Jaguar’s I-Pace, Audi’s e-tron, and Kia Motor’s Niro.
At stake is the Korean firms’ ability to supply automakers in the United States with batteries just as
the car producers are scrambling to lock in supplies with lucrative contracts ahead of an expected
surge in demand, according to court filings by the two companies and several industry experts.

“Whoever loses the fight would suffer a fatal blow, unless the two reach a settlement. This will also
be a setback for automakers,” said Cho Jae-phil, a professor at Ulsan National Institute of Science
and Technology who worked previously at another Korean rival, Samsung SDI.
Ford spokeswoman Jennifer Flake said it was encouraging LGC and SKI to resolve their conflict
without litigation and that it believed there was sufficient demand for multiple suppliers.
“We are aware of the issue. As a normal course of action, we have business continuity plans in
place to protect our interests,” Flake said.
GM spokesman Patrick Morrissey said the company was aware of the dispute and at this point it
did not expect any impact on the production of its Chevy Bolt electric vehicle.
Volkswagen has said it is worried there won’t be enough batteries for all the EVs it plans to launch
in the next five years, partly because producers such as LGC and China’s CATL don’t have
enough skilled workers for new plants in Europe to ramp up output quickly.
According to Korea’s battery industry tracker SNE Research, the market for EV batteries — the
most expensive and important component in the vehicles — is set to grow 23 per cent a year to
reach $167 billion by 2025, making it bigger than the global memory chip market which is
expected to be worth $150 billion by then.
In one court filing, LGC said its rival poached employees working on its own project to supply
batteries for VW’s MEB electric vehicle architecture – and that SKI only won the VW contract
because it had misappropriated trade secrets.
SKI has denied stealing trade secrets, saying its staff signed agreements not to use information
from former workplaces. “We value intellectual property,” a spokesman for SKI said.
If the US International Trade Commission (ITC) rules in favour of LGC on June 5, when it is due to
make a preliminary ruling, that could jeopardise SKI’s plans to supply VW in the United States with
batteries from Georgia or a new factory in Hungary, according to court filings. In April, LGC
asked the ITC to block SKI from bringing batteries and components into the United States, as well
as manufacturing systems needed for US production which is scheduled to start in 2022.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
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For additional free subscription emails please contact Hawk Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
Mobile: +97150-4822502
khdmohd@hawkenergy.net
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great

experiences in the designing & constructing of gas pipelines, gas metering & regulating stations
and in the engineering of supply routes. Many years were spent drafting, & compiling gas
transportation, operation & maintenance agreements along with many MOUs for the local
authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE
and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE

New base 28 november 2019 energy news issue 1299 by khaled al awadi -compressed

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New base 28 november 2019 energy news issue 1299 by khaled al awadi -compressed