New base january 20 2022 energy news issue - 1480 by khaled al awadi (autorecovered)

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,
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NewBase Energy News 20 January 2022 No. 1480 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: Inclusion of hydrocarbon industry 'will help world make
transition to cleaner energy' The National - Fareed Rahman
The hydrocarbon industry should be included in the energy mix globally even as the world focuses
on cutting emissions and protecting the environment, according to the UAE's Minister of Industry
and Advanced Technology and special envoy for climate change.
The “hydrocarbon industry should be included as part of the mix because if we want to successfully
transition through the energy system of tomorrow, we can’t simply unplug from the energy system
of today and we can’t do this with a flip of a switch”, Dr Sultan Al Jaber, who is also managing
director and group chief executive of Abu Dhabi National Oil Company, said during a panel
discussion at the Abu Dhabi Sustainability Week Summit on Tuesday.
The world cannot simply unplug from the energy system of today, says UAE minister
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group
chief executive of Abu Dhabi National Oil Company speaking during the opening ceremony of Abu
Dhabi Sustainability Week. Pawan Singh / The National

“We need to take time and we need to consult and engage all those relevant in the consultation and
in the discussions,” Dr Al Jaber said.
“We need to make the current system more efficient with less carbon and we should leverage the
expertise from across the energy sectors to help find practical and meaningful climate solutions
The UAE announced a net-zero emissions by 2050 strategy in the build up to Cop26, which was
held in Glasgow, Scotland, in November. In 2023, the Emirates will become the first Gulf Arab nation
to host the Cop summit.
“We want Cop 28 to be as inclusive as possible reflecting the views of developed nations alongside
developing countries, also reflecting public and private sector views, scientists and civil society.”
The region can play a critical role in ensuring reliable supplies of “the least intensive oil and gas and
we can make sure that this is available to the market where it is needed”, Dr Al Jaber said.
“We are of course leveraging this position to drive down the carbon intensity through many initiatives
and projects such as carbon capture and storage. We are also investing our capabilities in hydrogen,
both blue and green.”
One of the lightest and most abundant elements in the universe, hydrogen is being prioritised around
the world as a viable alternative fuel. Blue and grey hydrogen are produced using natural gas while
green hydrogen is produced using renewable energy sources.
The UAE, the Arab world’s second-largest economy, is developing numerous clean energy projects
as it aims to become carbon neutral by 2050. It is currently constructing Barakah Nuclear Energy
Plant, the Arab world’s first multi-unit operating nuclear energy plant.
The UAE is also building renewable energy projects to boost the supply of clean energy in the
country, including the world’s largest solar plant in the Al Dhafra region of Abu Dhabi. The 2-gigawatt
plant is expected to be fully operational this year.
Dubai is developing the 5-gigawatt Mohammed bin Rashid solar park as part of its strategy to cut
emissions.
“We have invested in more than 40 countries and we today already have access to 23 gigawatts of
clean, zero carbon emission sources of power that positions us uniquely on the global renewable
energy map,” Dr Al Jaber said.
The joining of UAE's energy giants Adnoc and Taqa in Masdar will further in increase the country's
clean power generation capacity to 50 gigawatts by 2030, he added.
Taqa is set to take a major stake with a 43 per cent shareholding in Masdar’s renewable energy
business with Mubadala retaining a 33 per cent share and Adnoc holding a 24 per cent stake after
the completion of the transaction in the coming months.
There are investment opportunities worth at least $3 trillion in the renewable energy space globally
over the next 10 years, which will provide an opportunity for the UAE to capitalise on, Dr Al Jaber
said.
“In fact, this is the thinking behind our net-zero strategic initiative. We see it as a new economic
development opportunity and it is an opportunity that will help us create a new industry, new skills,
new jobs, new partnerships and new models of engagement with relevant parties around the world
and for us, the business of tackling climate change is simply a good business opportunity.”

Saudi Aramco signs 10 agreements with S.Korean companies to
advance co-operation ..The National - Mary Sophia
Saudi Aramco signed 10 agreements spanning manufacturing, low carbon energy
development and finance with South Korean companies, further strengthening cross-border co-
operation.
The state-owned oil company signed one deal and nine preliminary agreements with South Korean
companies at the Saudi-Korean Investment Forum in Riyadh on Tuesday.
Joint projects by Saudi Arabia and Korea, out of which 20 per cent are industrial projects,
are worth about $1 billion. Photo: Aramco
“The agreements seek to deepen collaboration between Aramco and leading Korean
companies to unlock new opportunities in the fields of advanced technology,
manufacturing and finance, illustrating Aramco’s commitment to driving development
through global partnerships,” said Amin Nasser, Aramco president and chief executive.
Aramco signed an agreement with South Korea’s Doosan Heavy Industries &
Construction Company and the Saudi Arabian Industrial Investments Company,
Dussur, to establish a casting and forging unit to produce equipment such as valves,
pumps, compressors, wellheads and gas and wind turbines.
The planned joint venture has a production target of 60,000 tonnes per year and plans
to supply other GCC markets later, Aramco said.
Aramco also signed preliminary agreements with Korean energy companies such as
Kepco, S-Oil, Posco, Hyundai Oilbank, H2Korea and Lotte Chemical to explore
potential collaboration in the supply, transportation, utilisation and certification of

hydrogen and ammonia. The companies also plan to study the feasibility of converting
exported ammonia into hydrogen – a process known as ammonia back-cracking.
This marks the first step towards a potential large-scale plant for hydrogen and ammonia in Saudi
Arabia, which would also include a carbon capture and storage complex, Aramco said.
The state-owned oil company
also signed an agreement with
the Export-Import Bank of Korea
to explore strategic financing
solutions to support Aramco's
business and investment
activities involving South Korean
companies.
Joint projects by Saudi Arabia
and South Korea, out of which 20
per cent are industrial projects,
are worth about $1 billion, the
Saudi Press Agency reported.
Meanwhile, trade between the
two countries jumped 66 per cent
in the third quarter of 2021, to
27.7bn Saudi riyals ($7bn), the
state news agency said. Saudi
Arabia and South Korea signed 13 agreements in total on Tuesday at the Saudi-Korean Business
Forum.
The Ministry of Investment signed an agreement with Samsung C&T to help it develop and localise
industries related to construction technologies, green products and in building and financing
infrastructure projects.
Saudi Arabia’s Public Investment Fund (PIF) signed a preliminary deal with Korean firms Posco and
Samsung C&T to develop a green hydrogen production project in the kingdom.
Housing company Roshn and Samsung C&T agreed to establish a non-exclusive framework to
jointly explore opportunities in housing development and precast concrete blocks.
Meanwhile, the South Korean Intellectual Property Office and the Saudi Authority for Intellectual
Property (Saip) signed advanced partnership arrangements for co-operation, including the
secondment of South Korean experts to Saip.
In addition, the Ministry of National Guard signed a letter of intent with EzCaretech to jointly provide
Dr Answer – an artificial intelligence-based medical solutions tool – within targeted hospitals.
South Korea's Kumho tyre and Saudi Arabia's Al Sahm Al Usud for Tires also signed an agreement
to establish a factory for tyre production. The factory’s production capacity will reach 15 million tyres
annually, and it is expected to start operations in the third quarter of 2023.
China Looks to Resell LNG as World Grapples With Gas Shortage
Bloomberg - Reuters + NewBAse

China, the world’s biggest buyer of liquefied natural gas, kicked off an unprecedented effort to resell
its supply, alleviating global fuel shortage fears that have sparked record prices this winter.
Two of China’s biggest state-owned LNG importers released tenders this week offering to sell
dozens of cargoes for delivery through November. With the end of the peak winter demand season
within sight, Chinese traders are betting that the nation will avoid a crippling supply crunch and can
offload excess cargoes.
The move has surprised traders and triggered a sell-off in spot natural gas from Asia to Europe.
More LNG could be sent to energy-starved Europe, helping to ease pressure from its abnormally
low inventories and curtailed supplies from top exporter Russia.
Cnooc is offering to sell one cargo per month between May and November, while China Petroleum
and Chemical Corp., known as Sinopec, is seeking to sell as many as 45 cargoes for delivery
through October, according to traders with knowledge of the matter. The tenders represent roughly
4% of China’s total LNG imports last year in one of the biggest offerings from the nation.
Company officials didn’t immediately respond to emailed requests for comment.
China spent much of last year buying spot LNG supplies and restocking inventories in preparation
for this winter. But milder weather has left its energy giants with a glut of scheduled shipments.
Reselling the cargoes into the pricey spot market could provide a profitable windfall for traders.
Traders also fear that the sales offers belie concerns from the Chinese firms that domestic fuel
demand could be hit this year as the government tries to prevent the spread of more transmissible
forms of Covid-19.
Omicron recently breached China’s tough Covid defenses, prompting Goldman Sachs Group Inc.
to reduce its 2022 growth forecast for the nation. The strain recently spread to China’s major port

city of Dalian following the lockdown of Anyang, a city of 5 million people. The nation is also battling
an outbreak of the delta variant in Xi’an.
LNG traders are having flashbacks to the
pandemic’s start in early 2020, when China
declared force majeures to overseas gas
suppliers because the virus destroyed
demand, sending spot prices to a record
low.
Chinese companies are offering to resell
liquefied natural gas cargoes in the spot
market as they grapple with high inventory
amid weak demand due to a slowing
economy and a milder than usual winter,
several trade sources said on Monday.
The world’s second-largest buyer of LNG is currently facing high inventory of the super-chilled fuel
in some areas, several sources familiar with the Chinese market told Reuters.
“It’s quite warm in China and the demand is very bad,” one of the sources with a state-owned
company said, declining to be named as he was not authorized to speak with media.
He added that about 5 to 7 LNG cargoes are being offered for resale in a month, though this could
not be independently verified. Further details were also not immediately available but sources say
the main company to offer cargoes for re-sale has been China National Offshore Oil Corporation
(CNOOC).
CNOOC did not immediately reply to Reuters request for comment but the sources added that
CNOOC has so far sold at least one cargo to a Japanese buyer.
A second source added that buyers in northeast China may be facing ‘tank-tops’ which refers to
storage tanks being full.
China does not release any official information on its LNG storage volumes but shipping data by
Refinitiv Eikon shows that the country imported the second highest monthly volumes of LNG for the
year in November.
The import volumes, however, likely comprise mainly term volumes, which had already been
committed for purchase by buyers, or spot volumes purchased earlier in the year, the sources said.
Temperature forecasts for Beijing and Shanghai are expected to be warmer than usual until mid-
January, according to Refinitiv’s weather data.
China’s natural gas demand is expected to expand at half the rate this winter compared to a year
earlier, as Beijing slows its gasification push due to a weaker economy and competition from
cheaper coal, state oil officials said last month.
State-owned companies are also facing additional pressure as their typical customers such as
Guangzhou Gas and Guangdong Energy Group are now importing spot cargoes directly from the
international market, the sources added.
U.S. Gasoline Markets Point to Bad News for Biden This Summer
Bloomberg

The gasoline market is painting a picture of tight supplies this summer -- the last thing Joe
Biden will want to see as he tries to contain high fuel prices.
On the New York Mercantile Exchange, futures contracts for gasoline are in an increasingly
bullish structure called backwardation. They show that those who trade the fuel expect a
summer of relatively weak supply and strong demand. And that doesn’t bode well for a U.S.
president who’s trying to keep fuel costs low.
The U.S. typically builds its supplies of gasoline from November through February. Then,
they’re drawn back down in spring and the summer driving season.
This year, inventories are starting off well below the seasonal norm and there are signs that
work on oil refineries could slow the buildup of stockpiles. ExxonMobil Corp.’s Baytown oil
refinery, the fourth largest in the U.S., has suffered a fire and this spring’s refinery
maintenance season is set to be heavy. Demand, meanwhile, has been trending above
normal. Supplies are also low in Europe -- one of the country’s biggest suppliers.
This summer’s backwardation -- whereby more immediate contracts are priced at a premium
to later ones -- is currently much steeper than it’s been at this time of year since at least
2017. It’s also more deeply backwardated than Brent crude, the global oil benchmark.
The Biden administration has invested a lot of time and effort in jawboning oil prices lower
and orchestrating a global release of strategic petroleum reserves.
NewBase January 20-2022 Khaled Al Awadi
Oil price special
coverage

NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices hover around 2014 highs, supported by supply concerns
Reuters + NewBase
Oil steadied on Thursday, clawing back losses earlier in the session, as strong demand and short-
term supply disruptions continue to support prices close to their highest levels since late 2014.
Brent crude futures fell 17 cents, or 0.2%, to $88.27 a barrel, as of 0418 GMT, having dropped more
than $1 earlier in the session. The global benchmark touched $89.17 a barrel on Wednesday, its
highest since October 2014.
U.S. West Texas Intermediate (WTI) crude futures were up 7 cents, or 0.1%, to stand at $87.03 a
barrel, having also shed nearly $1 earlier. WTI climbed to as much as $87.91 on Wednesday, the
highest since October 2014.
"The International Energy Agency said global oil demand is on track to hit pre-pandemic levels,"
analysts at ANZ bank said in a note.
"Shorter-term supply disruptions are also helping tighten markets. Brent crude rallied sharply after
reports a key oil pipeline running from Iraq to Turkey was knocked out by an explosion."

However, the flow of crude oil through the Kirkuk-Ceyhan pipeline has resumed, after it was halted
on Tuesday due to a blast near the pipeline in the southeastern Turkish province of
Kahramanmaras, officials said on Wednesday. read more
Supply concerns have mounted this week after Yemen's Houthi group attacked the United Arab
Emirates, the third-largest producer in the Organization of the Petroleum Exporting Countries
(OPEC). Meanwhile Russia, the world's second-largest oil producer, has built up a large troop
presence near Ukraine's border, stoking fears of invasion and subsequent supply uncertainties.
Underpinning oil prices is the broad post-coronavirus pandemic recovery in demand for fuel.
OPEC officials and analysts say that an oil rally may continue in the next few months, and prices
could top $100 a barrel as demand shrugs of the spread of the Omicron COVID-19 variant.
OPEC+, which groups the cartel with Russia and other producers, is struggling to hit a monthly
output increase target of 400,000 barrels per day (bpd).
U.S. crude and gasoline stocks rose while distillate inventories fell last week, according to market
sources citing American Petroleum Institute figures on Wednesday.
Crude stocks rose by 1.4 million barrels for the week ended Jan. 14. Gasoline inventories rose by
3.5 million barrels while distillate stocks fell by 1.2 million barrels, according to the sources, who
spoke on condition of anonymity.

NewBase Special Coverage
The Energy world –Jan -20 -2022
bp and EnBW successful in ScotWind offshore wind bid
bp and EnBW have been awarded a lease option off the east coast of Scotland to develop a major
offshore wind project - to be known as Morven. The award was made in the highly
competitive ScotWind leasing round, the results of which were announced by Crown Estate
Scotland today.
 Potential generating capacity of 2.9GW – enough to power more than 3 million homes
 Expected to support up to £10 billion of investment in offshore wind development, skills and
opportunities in hydrogen and EV charging
 Aberdeen to become bp’s global operations and maintenance centre of excellence for
offshore wind.
The approx. 860km2 lease is located around 60km off the coast of Aberdeen. The E1 lease is in an
advantaged area, allowing the partners to develop it as a fixed-bottom offshore wind project with a
total generating capacity of around 2.9 gigawatts (GW), sufficient to power more than three million
homes.
bp and EnBW successful in ScotWind offshore wind bid

The success of the bid is expected to unlock a number of investments across the country, as part
of bp’s integrated energy company approach, leveraging its existing North Sea infrastructure, skills
and relationships and EnBW’s experience in offshore wind.
Along with the offshore wind development, these investments include significant expansion of
electric vehicle charging infrastructure in Scotland and green hydrogen production. Together, these
represent up to £10 billion of investment in support of offshore wind and Scotland’s energy transition.
bp chief executive Bernard Looney said:
'bp has a proud 100-year history in Scotland. We want to thank Crown Estate Scotland for the
opportunity to now start a new chapter, helping Scotland continue as a global energy leader for the
next 100 years. We have a fantastic partner in EnBW and now an even more competitive portfolio
of nearly 6GW of combined offshore wind to develop together.
'Our plans go much further than just the turbines offshore. They see us investing in projects and in
people — from EV charging to green hydrogen — aligned with Scotland’s energy transition
plans. “This is good business — making disciplined investments and demonstrating what an
integrated energy company can do; we can’t wait to get to work.'
EnBW CEO Frank Mastiaux added:
'In this close partnership we succeeded in a highly competitive field of bidders. Since the
construction of the first German offshore wind
farm in 2010 by EnBW, we have become a
major player in offshore technology, even
beyond Germany's borders. We are therefore
very pleased to be able to contribute our
experience of developing and operating
technically demanding offshore wind projects
once again with our partner bp.
'This success marks so far the largest
development project in offshore wind for our
company. And we are proud to contribute
significantly to a climate-friendly energy future
in Scotland, being one of the world’s largest
market for offshore wind power.

For EnBW this investment will be a corner stone in our strategy to become CO2 neutral by 2035.
The international and European targets to reduce the CO2-footprint can only be met by
implementing large scale renewable generation capacity. Offshore Wind in Scotland provides a
perfect setting for achieving this goal.'
As a result of the successful ScotWind bid, the partners will establish their operational centre in
Scotland, and bp will make Aberdeen its global operations and maintenance centre of excellence
for offshore wind, creating up to 120 new direct jobs. It is expected to contribute up to £40 million
per year to the economy.
The offshore wind development will include investments in infrastructure, ports, harbours and
shipyards, including the construction of four ships to support EnBW and bp’s offshore wind projects
across the UK, subject to technical and commercial due diligence.
These new-builds will involve an investment of more than £100m and would be expected to support
500 associated jobs. It also triggers additional investment in Forth Ports, who are creating Scotland’s
largest renewable hub at the Port of Leith, supporting up to 3,000 direct and indirect jobs in the
Forth Estuary net zero corridor.
bp also intends to apply its integrated business model to use the clean power generated offshore to
supply and significantly accelerate the expansion of its EV charging network in Scotland, to around
4,000 public chargers, by 2030.
As part of bp’s commitment to support oil and gas workers through employment and opportunities
for re-training and reskilling in renewables, bp and EnBW have already committed more than £1
million to X-Academy in Scotland in a five-year deal, supporting both reskilling experienced workers
and the creation of entry-level energy transition roles.
Taken together, Morven will represent a significant contribution to the development of Scotland’s
energy transition infrastructure, economy, and skills, creating new opportunities and long-term, high-
quality jobs.

bp and EnBW: Successful partners in UK offshore wind
bp and EnBW are also jointly developing up to 3GW of offshore wind in the Irish Sea — the Morgan
and Mona projects — in lease areas for development awarded in the UK’s Round 4 leasing round.
Today’s award further demonstrates the partners’ commitment to developing efficient renewable
energy for the UK. These offshore wind developments will be critical in supporting the Government’s
target of producing sufficient offshore wind energy to power every UK home by the end of this
decade.
bp’s strategy includes plans to increase low carbon investment to around $5 billion a year by 2030.
Rapidly growing its renewables business is core to bp’s strategy — by 2030 it aims to have
developed 50GW of net renewable generating capacity. bp currently has a global renewables
development pipeline totaling 23GW net, and its share of this award will add to this.
bp’s wider low carbon activities in Scotland include its Aberdeen city partnership, including an
agreement to develop green hydrogen, and its memorandum of understanding (MoU) with
Aberdeen Harbour to reduce emissions and provide low-carbon power.
NewBase Energy News 20 January 2022 - Issue No. 1478 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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