New base 31 august 2021 energy news issue 1453 by khaled al awad i

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NewBase Energy News 02 September 2021 - Issue No. 1453 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Emirates Global Aluminium Sees Profit Soar Ahead of Possible IPO
Bloomberg - Paul Wallace
Emirates Global Aluminium PJSC, the Middle East’s biggest producer of the metal, posted a record
profit in the first half of the year as prices soared along with those of other commodities.
The company, whose United Arab Emirates-based shareholders are considering an initial public
offering, generated income of 1.74 billion dirhams ($473 million), after a loss of $57 million a year
earlier. Core earnings were $950 million.
Aluminum -- a light, easily-recyclable metal used in everything from beer cans to plane parts and
which may be used more often in electric vehicles -- has climbed as major economies recover from
the Coronavirus pandemic. Futures in London are up almost 35% to $2,650 a ton, the highest in
around a decade.
“We are bullish about prices,” EGA’s chief financial officer, Zouhir Regragui, said in an interview.
The short-term outlook is positive because of the post-Covid economic bounce, while in the long
run aluminum will benefit as producers manage to cut their greenhouse gas emissions, he said.
EGA is equally owned by two sovereign wealth funds -- Investment Corp. of Dubai and Abu Dhabi’s
Mubadala Investment Co. Mubadala said in April it was close to a listing of the company, which may
be valued around $15 billion to $20 billion.

“I am confident that our performance will continue to improve, making EGA increasingly attractive
should our shareholders decide to proceed with an IPO, which would be one of the UAE’s largest
ever,” Chief Executive Officer Abdulnasser bin Kalban said.
Production fell in the first six months of the year, with sales down around 6% from the final quarter
of 2020 to 1.18 million tons. That was due to logistics constraints -- including a global shortage of
containers -- and because EGA was upgrading carbon plants, the CEO said in the same interview.
EGA, which has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea, declined to give a
production forecast for the rest of the year.
Solar Aluminum
The company said it will continue to prioritize higher-value, or premium, aluminum, which made up
86% of sales in the first half, up from 69% a year earlier.
It will also try to sell more low-carbon aluminum. In January, it began producing aluminum using
solar power and aims to make 40,000 tons this year. BMW AG was the first customer for this type
the metal, after signing a supply deal worth as much as 100 million euros ($120 million) with EGA.
Electricity generation accounts for around 60% of the industry’s greenhouse gas emissions and
most smelters still use coal.

Saudi PIF-Backed ACWA Power to Seek More than $1 Billion in IPO
Dinesh Nair, Matthew Martin and Ruth David, Bloomberg News
Saudi Arabia’s ACWA Power International is close to announcing an initial public offering to raise
more than $1 billion, according to people familiar with the matter. A Riyadh listing may value the
utility at $10 billion or more, said the people, who asked not to be named. An announcement may
be made as soon as this week, they said.
Acwa Power didn’t immediately respond to requests for comment.
While ACWA runs many natural gas-fired power plants, the Saudi government plans to make it the
main vehicle for the kingdom’s major solar and green-hydrogen projects.
ACWA is part of a
consortium, along with
U.S.-based AirProducts
and Chemicals Inc.,
developing a $5 billion
plant that will export
green hydrogen from the
new city of Neom. It’s
also building a
renewable power
project for the kingdom’s
Red Sea Development
Co.
Saudi Arabia’s Public
Investment Fund raised
its stake in ACWA
Power to 50% last year,
saying the move was
part of the wealth fund’s
strategy to support renewable energy developments. The PIF may not sell down its stake if an IPO
goes ahead, said the people.
No final decision has been made and Acwa may decide against the transaction, they said. The PIF
didn’t immediately respond to a request for comment.
A $1 billion deal would be one of the largest listings in the kingdom and comes at a time of renewed
investor appetite for new offerings.

U.A.E: Adnoc awards concession to Pakistani consortium for $304.7m
The National - Jennifer Gnana
Adnoc awarded exploration rights for an offshore block to a Pakistani consortium for $304.7 million,
marking the first-ever deal with energy companies from the South Asian nation.
The Abu Dhabi company awarded the rights to Offshore Block 5 to a consortium led by Pakistan
Petroleum Limited, or PPL, which includes Mari Petroleum Company Limited, the Oil and Gas
Development Company Limited and Government Holdings (Private) Limited.
The award, the first granted to a Pakistani consortium, is part of Abu Dhabi’s second competitive
bid round. The term of the contract is for 35 years from the start of exploration, with the "potential"
to create significant inflows of in-country value for the UAE economy, Adnoc said on Tuesday.
"This historic exploration concession award marks a new chapter of energy co-operation in the 50-
year old UAE-Pakistan relationship," said Dr Sultan Al Jaber, Minister of Industry and Advanced
Technology and managing director and group chief executive of Adnoc.

"It represents an important platform upon which we can drive win-win opportunities to support
Pakistan’s energy security and further strengthen the strategic and economic ties between our two
countries."
The UAE is Opec's third-largest oil producer, accounting for 5.6 per cent of all proven reserves
worldwide. In 2019, Adnoc launched a second competitive bid round for hydrocarbons, offering
unconventional reserves for the first time in a bid to attract international oil companies to explore for
oil and gas.The licensing round includes five blocks stretching across an area of about 34,000
square kilometres.
Pakistan, an important buyer of crude products and gas in South Asia, registered growth of 2.9 per
cent in its primary energy consumption between 2009 and 2019 and accounted for 0.6 per cent of
the world's energy consumption in 2020, according to the BP Statistical Review of World Energy.
"This award is not only a watershed moment for Pakistan and the emirate of Abu Dhabi towards
bilateral energy co-operation and economic links but also offers an opportunity to strengthen
strategic co-operation with Adnoc to share technical know-how and expertise," said Moin Raza
Khan, managing director and chief executive of PPL.
The agreement with the Pakistani consortium is part of Adnoc's partnership model towards
developing upstream concessions. The company has involved partners from key growth markets to
become developers of its oil and gas projects, locking in supply for the foreseeable future.
The Pakistani consortium will hold a 100 per cent stake in the exploration phase of the concession,
which is located 100 kilometres north-east of Abu Dhabi city and covers an offshore area of 6,223
square kilometres.
If the consortium makes a successful commercial discovery, Adnoc reserves the option to hold a 60
per cent interest in the production phase of the concession. Dr Al Jaber said the partners are
"optimistic" about "the potential to unlock significant value" from the hydrocarbon exploration in the
second competitive bid round.
The Pakistani consortium will also contribute financially and technically to the Abu Dhabi company's
mega-seismic study. "The data already acquired over a large part of the block, combined with its
proximity to existing oil and gasfields, suggests the concession area has promising potential," Adnoc
said.
PPL contributes to 20 per cent of Pakistan's natural gas supplies and operates 15 fields across the South
Asian nation. As part of the second competitive bid round, Adnoc awarded onshore exploration rights to US
company Occidental Petroleum. The company also awarded offshore rights to Japan's Cosmo Energy,
Italy's Eni and Thailand's PTT Exploration and Production Public Company as part of the second licensing
round.

Algeria: Methane spotted leaking from greenhouse gas hotspot
Bloomberg - Paul Burkhardt and Aaron Clark
A series of large methane plumes were detected by satellite near oil and gas fields, processing
plants and pipelines in Algeria, which is among the world’s top emitters of the potent greenhouse
gas.
At least five clouds have been identified so far in August, mostly in or around a sparse desert area
roughly 570 kilometers southeast of the capital Algiers, according to Kayrros SAS, a geoanalytics
company that parses satellite data to track down methane releases. The worst plume was spotted
on 18 August. It had an estimated emissions rate of 121 metric tons an hour.
Algeria is a global methane hotspot and was responsible for some of Africa’s most severe emissions
of the greenhouse gas over the past few years, according to Kayrros’ analysis. The methane
intensity of the OPEC member’s energy output was the fourth-highest among a selection of
producers last year, according to the International Energy Agency.
Sonatrach Group, Algeria’s state-owned oil company, didn’t respond to calls and emails seeking
comment.
Methane, which is the primary component of natural gas, traps more than 80 times more heat than
carbon dioxide in the short term. Curbing emissions of the gas could do more to slow climate change
than almost any other single measure and scientists are targeting leaks from the oil and gas
operations because they offer the biggest potential reductions at the cheapest cost.
Scrutiny over leaks from oil and gas production is also increasing as buyers seeking to limit the
impact of their fossil fuel operations search for the cleanest-produced fuels. French utility Engie SA
last year scrapped plans to buy liquefied natural gas from US exporter NextDecade Corp. over
pollution concerns related to American production.

Another release with an estimated emissions rate of 94 tons an hour was detected on 7 August and
a third on 13 August, with a rate of 37 tons an hour. Kayrros also detected two smaller releases in
the region this month for which it didn't estimate emissions rates.
If the three largest events lasted an hour, together they would have the same short-term climate
warming impact as the annual emissions from more than 12 000 passenger vehicles in the UK.
The findings add to our understanding
of the extent to which methane is
leaking into the atmosphere. Plumes
have been spotted in dozens of
countries, from Canada to Iraq.
Scientists are just beginning to
pinpoint the biggest sources of
methane and existing data isn’t yet
globally comprehensive.
Satellites have difficulty tracking
releases near the equator and
offshore. Cloud cover, precipitation
and varying light intensity can also
impact observations.

E.U: First Carbon Border Tax Wouldn’t Be That Expensive
Bloomberg - John Ainger
The world’s first pollution-import levy, proposed by the European Union on goods from steel to
aluminum, may not actually cost the bloc’s competitors that much, according to a study by
environmental groups Sandbag and E3G.
While the politics surrounding levies on polluting industries are politically toxic, the costs involved
are comparatively small. China, one of the biggest critics of the so-called carbon border adjustment
mechanism, would by 2035 face net costs of around 2% on 5 billion euros ($5.9 billion) of iron and
steel exports to the EU.
“The impact of the likely CBAM scenario on EU imports from China will be very small,” the authors
including Adrien Assous said. “The cost will mainly be borne by EU consumers, while importers
recover most of it thanks to price increases in EU markets.”
CBAM, which aims to prevent companies from simply shifting their emissions away from the EU to
more loosely-regulated countries, still needs approval from member states and the European
Parliament.
The U.S. would be least affected by the proposed measure, facing around 10 million euros in net
costs under the carbon border adjustment mechanism in 2026, rising to 25 million euros in 2035,
according to the report.
Russia would face the biggest impact of around 600 million euros by 2035, coming mainly from iron
and steel imports. For China, the effect too would be relatively small, rising to about 200 million
euros in 15 years time.
The CBAM proposal isn’t likely to do much to curb greenhouse gas emissions. Estimates from
German think tank Bertelsmann Stiftung, said it would only lead to an extra 0.2 percentage points
reduction in the amount of CO2 discharged into the atmosphere globally. Still, some see the EU’s
plan as more of a lever or threat to try to force other countries to match Europe’s climate ambitions.

NewBase 02 September 25-2021 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil drops after OPEC+ reaffirms supply return as demand wavers
Reuters + NewBase
Oil prices fell on Thursday after OPEC+ agreed to keep its policy of gradually returning supply to
the market at a time when coronavirus cases around the world are surging and many U.S. refiners,
a key source of crude demand, remained offline.
Brent crude was down by 18 cents, or 0.25%, at $71.41 a barrel by 05.36 BST, after dropping 4
cents on Wednesday. U.S. oil fell 26 cents, or 0.38%, to $68.33 a barrel, after rising 9 cents in the
previous session.
Oil price special
coverage

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including
Russia, together known as OPEC+, agreed on Wednesday to continue a policy of phasing out
record production reductions by adding 400,000 barrels per day (bpd) each month to the
market. read more
However, OPEC+ raised its demand forecast for 2022 while also facing pressure to accelerate
production increases from the Biden administration, which said it was "glad" the group had
reaffirmed its commitment to raising supply. read more
"What is not so certain ... is whether demand will be able to grow as quickly as OPEC+ and the
market predicts, given the risk of new lockdowns to fight the unresolved Covid-mutant spread,"
Rystad Energy's head of oil markets, Bjornar Tonhaugen, said in a note.
In the U.S., oil refineries in Louisiana may take weeks to restart after Hurricane Ida swept through
the region, with operators facing power and water shortages, which is likely to crimp demand for
oil. read more
Energy companies were scrambling to restart platforms and pipelines in the Gulf, with about 1.4
million bpd of oil production still offline, the U.S. offshore regulator said. read more
U.S. crude inventories dropped by 7.2 million barrels and petroleum products supplied by refiners
rose to a record despite the increase in coronavirus infections across the country, the Energy
Information Administration said on Wednesday.
"Stocks seem likely to rise in the weeks ahead as reports suggest that refinery activity will take
longer to restart than crude production in the aftermath of Hurricane Ida," said Kieran Clancy,
commodities economist at Capital Economics.

European Gas Falls From Record as Oil Falls on OPEC Decision
European natural gas and carbon prices fell from a record after crude oil slid following OPEC’s
decision to stick to production increases.
Benchmark futures traded in the Netherlands closed 0.2% lower, while carbon ended 1.1% down
as OPEC and its allies ratified the 400,000 barrel-a-day supply hike scheduled for October. Dutch
gas and carbon futures reached records earlier Wednesday as a supply crunch leaves Europe
struggling to refill gas storages before the start of the heating season in about a month.

NewBase Special Coverage
The Energy world – Sep. 02 - -2021
Li Auto Loss Widens as Cost of Making, Selling EVs Takes a Toll
©2011 Businesshala LP + NewBase
Chinese carmaker Li Auto Inc.’s second-quarter losses widened as the cost of manufacturing and
selling electric vehicles fell to the company’s lows.
Li Auto reported a net loss of 235.5 million yuan ($36.4 million), compared to a decrease of 75.2
million yuan a year ago, the Beijing-based company said in a statement on Monday. Analysts were
looking for a profit of 38 million yuan. Revenue for the period was 5.04 billion yuan, in line with
analyst estimates of 5.01 billion yuan.
The carmaker, which has just one model for sale – the Li One sports-utility vehicle powered by an
electric motor and gasoline engine – delivered a record 17,575 units in the quarter, up 166% from
a year ago. It shipped 8,589 vehicles to local customers in July, putting it on par with California-
based EV pioneer Tesla Inc., whose local shipments fell last month.
“The 2021 Li One received tremendous reviews and strong support from users, resulting in
cumulative deliveries of over 70,000 vehicles,” Founder and CEO Li Jiang said in the statement.
Strong sales led Lee Auto to forecast revenue for the third quarter that surpassed average analyst
estimates. It now sees revenue as high as 7.25 billion yuan for the current period, better than the
market expectation of 6.41 billion yuan.

Li Auto is the last of three US-listed Chinese EV startups to report second-quarter earnings. Xpeng
Inc. reported a wider-than-estimated loss in the form of increased research and development and
marketing expenses, while NIO Inc.’s loss was offset by increased sales.
After listing in the US last year, Lee Auto completed a $1.5 billion share sale in Hong Kong following
a similar move by Xpeng earlier this month. Hong Kong shares have changed little so far, closing
at HK$115.20 on Monday, compared to the HK$118 listing price.
Like global carmakers including giants Toyota Motor Corp and Volkswagen AG, Lee has been hit
by a worsening auto chip shortage. At the time of the Hong Kong listing, the company’s chairman
Kevin Shen said the firm only had “visibility for the next two or three weeks” of supplies.
Still small in terms of delivery, Li Auto has ambitious goals, betting on the growth of China’s EV
market as drivers switch to cleaner and cheaper rides. According to BloombergNEF, electric-car
deliveries are projected to more than triple to 6.2 million vehicles by 2025, when they will account
for a quarter of all passenger car sales in the country.
By then, Lee Auto aims to have 20% of the market, which it says will translate into annual deliveries
of 1.6 million vehicles — nearly 30 times more than what was sold in the 12 months ended June 30.
For the third quarter, Lee now sees deliveries between 25,000 and 26,000 units, although it noted
on Monday that the ongoing industry-wide semiconductor shortages due to COVID mean that could
change.
For the second quarter, operating expenses increased 45%, while R&D costs climbed 27% from the
first quarter. Selling, general and administrative expenses were up 64%.
“The increase in selling, general and administrative expenses in the first quarter was primarily driven
by increased marketing and promotional activities as well as increased headcount and rental
expenses,” Lee Auto said.

Operating Highlights for the Second Quarter of 2021
 Deliveries of Li ONEs were 17,575 vehicles in the second quarter of 2021,
representing a 166.1% year-over-year increase.
2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2
Deliveries 6,604 8,660 14,464 12,579 17,575
 As of June 30, 2021, the Company had 97 retail stores covering 64 cities and
167 servicing centers and Li Auto-authorized body and paint shops operating in
127 cities.
Financial Highlights for the Second Quarter of 2021
 Vehicle sales were RMB4.90 billion (US$759.4 million) in the second quarter
of 2021, representing an increase of 41.6% from RMB3.46 billion in the first
quarter of 2021.
 Vehicle margin2
was 18.7% in the second quarter of 2021, compared with
16.9% in the first quarter of 2021.
 Total revenues were RMB5.04 billion (US$780.4 million) in the second quarter
of 2021, representing an increase of 40.9% from RMB3.58 billion in the first
quarter of 2021.
 Gross profit was RMB952.8 million (US$147.6 million) in the second quarter
of 2021, representing an increase of 54.5% from RMB616.7 million in the first
quarter of 2021.
 Gross margin was 18.9% in the second quarter of 2021, compared with 17.3%
in the first quarter of 2021.
 Loss from operations was RMB535.9 million (US$83.0 million) in the second
quarter of 2021, representing an increase of 31.4% from RMB407.7 million in
the first quarter of 2021. Non-GAAP loss from operations3
was RMB365.5
million (US$56.6 million) in the second quarter of 2021, representing an
increase of 62.6% from RMB224.8 million in the first quarter of 2021.
 Net loss was RMB235.5 million (US$36.5 million) in the second quarter of
2021, representing a decrease of 34.6% from RMB360.0 million net loss in the
first quarter of 2021. Non-GAAP net loss3
was RMB65.1 million (US$10.1
million) in the second quarter of 2021, compared with RMB177.0 million net loss

in the first quarter of 2021.
 Operating cash flow was RMB1,407.6 million (US$218.0 million) in the second
the first quarter of 2021.
 Free cash flow4
was RMB982.1 million (US$152.1 million) in the second
the first quarter of 2021.
Key Financial Results
(in millions, except for percentages)
For the Three Months Ended % Change5
June 30,
2020
March 31,
2021
June 30,
2021
YoY QoQ
RMB RMB RMB
Vehicle sales 1,919.2 3,463.7 4,903.3 155.5% 41.6%
Vehicle margin 13.7% 16.9% 18.7% 5.0% 1.8%
Total revenues 1,947.2 3,575.2 5,039.0 158.8% 40.9%
Gross profit 259.7 616.7 952.8 266.9% 54.5%
Gross margin 13.3% 17.3% 18.9% 5.6% 1.6%
Loss from operations (176.3) (407.7) (535.9) 204.0% 31.4%
Non-GAAP loss from operations (176.3) (224.8) (365.5) 107.3% 62.6%
Net loss (75.2) (360.0) (235.5) 213.2% (34.6)%
Non-GAAP net loss (159.2) (177.0) (65.1) (59.1)% (63.2)%
Operating cash flow 451.7 926.3 1,407.6 211.6% 52.0%
Free cash flow 300.8 570.2 982.1 226.5%
72.2%

NewBase Energy News 02 Sep. 2021 - Issue No. 1453 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy news articles issues, an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities &
gas compressor stations. Executed projects in the designing & constructing of gas
pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted &
finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements.
Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass
energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous
conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-
in-Chief of NewBase Energy News and is a professional environmental writer with more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.

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