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NewBase 01 September 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
The UAE to give Egypt $8.7bn worth of petroleum products
Reuters + NewBase
The United Arab Emirates will provide Egypt with petroleum products worth $8.7 billion over a
year starting in September, an Egyptian official told Reuters on Sunday.
Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands,
which have resulted in daily electricity cuts around the country of 86 million people.
Oil-producing Gulf countries have come to Egypt's aid since the army, prompted by mass protests,
oustedIslamist President Mohamed Mursi last year.
"We will complete all the details this week and the first shipment will be sent next week," the
official said, referring to the UAE agreement.
He said some of the petroleum products would comes as grants and the remainder under a credit
agreement that would be repaid in instalments.
The United Arab Emirates, Saudi Arabia and Kuwait have together provided Egypt with more tan
$20 billion in grants, loans and petroleum products since Mursi's overthrow.
Fuel subsidies have in recent years cost Egypt's government around $15 billion a year, a fifth of
the state budget. But the government slashed energy subsidies and increased prices by more
than 70 percent in July.
"Egypt imports petroleum products worth around $1 billion to $1.3 billion a month," the official
said.
Copyright © 2014 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 endeavours have been used to ensure the accuracy of the information contained
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UAE energy security lies in diversification
Robin Mills is the head of consulting at Manaar Energy
The UAE, as a major oil and gas producer, might appear immune from a physical cut-off of
supplies, a danger menacing Europe during its confrontation with Russia. But it is a small country,
in an often volatile area, and with a hostile climate.
In this desert climate, water is energy.
A failure of water or power supplies for a few hours would interrupt normal business and life, and if
continued for just a few days would be a threat to economic security – if the UAE were unable to
export its oil freely, for example, or if imported food or gas prices spiked.
The country’s power stations are almost entirely fuelled by gas, of which a quarter is imported
from Qatar via the Dolphin pipeline, or as liquefied natural gas by Dubai, most of which, again, is
of Qatari origin.
Desalination of sea water is mostly in combination with power generation, using the waste heat
from gas combustion. Dubai increased its reservoir capacity substantially last year, but it still
represents only about two-and-a-half days’ demand.
So what steps can the UAE take to safeguard its energy and water? Physical and cyber security
are already being beefed up, but it is also necessary to increase resilience to unavoidable shocks.
Winston Churchill’s oft-quoted dictum that “safety and certainty in oil, lie in variety and variety
alone” – uttered as the British government was purchasing shares of BP (then Anglo-Persian) to
guarantee access to Iranian oil – applies to energy security generally.
The nuclear power programme at Baraka in the Western Region introduces its own safety
challenges, but will diversify the power generation mix away from near-total dependence on gas.
Solar power programmes in Abu Dhabi and Dubai are very small today, but could economically
reach 10 to 20 per cent of generation capacity. Small-scale solar rooftop schemes could be
especially beneficial in boosting energy security – providing power in case of local problems such
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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in this publication. However, no warranty is given to the accuracy of its content . Page 3
as breakdowns in transmission lines. Keeping telecoms stations, phones, lifts, fridges, water
pumps and air conditioning running, at least during the day, would help mitigate short-term
outages.
Recycling “grey” water uses less energy than generating desalinated water. More energy-efficient
reverse osmosis desalination plants can run on electricity from any source and would reduce
dependence on burning gas.
The urban landscape can also be made more resilient – cityscapes tailored to avoid trapping heat,
as at Masdar City, water-efficient irrigation, and multi-modal public transport. Better insulation and
shading, and thermal storage in chilled water or ice, ensure buildings stay cool for longer even if
the power goes off. Cutting subsidies for electricity, water and fuel promotes rational use and so
economic resilience.
On the largest scale, the Emirates need to continue integrating their water, gas and electricity
networks, and building rail – and to link these systems with those of GCC partners, particularly
Oman. Food and trade security are not just a matter of physical construction, but also international
diplomacy.
These steps are all efficient and environmentally positive in themselves. But if it is hard to justify
green design and energy efficiency on financial and ecological grounds alone, it is better not to
find yourself dealing with an unexpected emergency by candlelight.
Copyright © 2014 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 endeavours 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
Masdar-UAE delivers Samoa’s first Wind Farm
Emirates News Agency, WAM -
The Samoan Prime Minister, the Honourable Tuilaepa Aiono Sailele Malielegaoi, yesterday
inaugurated the country's first wind farm.
Delivered by Masdar, Abu Dhabi's renewable energy company, the 550 kWe project is the second
completed under the United Arab Emirates' (U.A.E.)
US$50 million Pacific Partnership Fund, which is
managed by Abu Dhabi Fund for Development
(ADFD). The inauguration ceremony comes two days
before the start of the United Nations' Third
Conference on Small Island Developing States1, in
Samoa's capital.
Dr. Sultan Ahmed Al Jaber, U.A.E. Minister of State
and Chairman of Masdar, explained, "This U.A.E.
supported project, and others like it underway across
the Pacific, unlock significant economic and social
benefits across the region. By providing local sources of renewable energy and reducing reliance
on imported fuels, the U.A.E. is helping countries like Samoa realise its development ambitions,
while also delivering valuable clean energy infrastructure.
"Renewable energy has the potential to be a major contributor to the energy mix in developing
countries, acting as a catalyst for greater socioeconomic opportunity. Today's inauguration
reinforces the U.A.E.'s commitment to advancing and deploying renewable energy globally."
Located on the Samoan island of Upolu – home to nearly 75 per cent of the population – the wind
farm will supply 1,500 MWh of power per year, delivering US$475,000 in annual fuel cost savings.
The innovative ‘cyclone proof' project will also reduce the island's carbon footprint by more than
1,000 tons of carbon dioxide (CO2) each year.
The Prime Minister of Samoa added, "The new wind farm delivered by Masdar and funded by the
ADFD is a significant step forward in Samoa's transition to a more sustainable energy future. This
Copyright © 2014 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 endeavours 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
has been possible thanks to the support of Abu Dhabi and the United Arab Emirates, and their
commitment to advancing sustainable development. Access to renewable energy is vital to our
long-term economic development, even beyond the substantial gains realised by cutting our
dependence on imported fuel." Mohammed Saif Al Suwaidi, Director-General of the Abu Dhabi
Fund for Development, said, "The Abu Dhabi Fund for Development is committed to working
collaboratively with governments across the developing world, on projects that deliver tangible
social and economic benefits.
"This innovative, bespoke project offers energy access to thousands of people, whilst
demonstrating the validity of renewable energy as an economic enabler. We believe this project
will unlock a significant opportunity for the Samoan government and its people." The U.A.E.
Pacific Partnership Fund supports the deployment of renewable energy across Pacific island
states and represents one of the largest-ever investments in clean energy across the region. The
grant is managed by the Abu Dhabi Fund for Development, and coordinated by the Ministry of
Foreign Affairs, Directorate of Energy and Climate Change. Masdar partners with each nation's
government and leads the design and implementation process.
First announced during Abu Dhabi Sustainability Week in January 20142, the Samoan wind farm
is the second project to be completed under the fund. Masdar is also currently progressing solar
PV projects in Fiji, Kiribati, Tuvalu, and Vanuatu. A 512 kWe solar PV installation in Tonga,
achieving nearly 70 percent grid penetration, was the first project to be completed.
The projects address the very high cost of diesel imports in Pacific countries, as well as delivering
reductions in CO2 emissions. Research from the International Renewable Energy Agency
indicates that renewable energy is now the most cost competitive source of power in the Pacific3,
but deployment has been constrained by access to finance and expertise. The cumulative 2.8
MWe capacity of the six identified projects, will substitute 1.5 million litres of diesel fuel otherwise
imported each year. The projects together will deliver annual savings of US$1.87m and avoid
4,450 tons of CO2.
The pioneering project in Samoa includes two 55 meters high turbines that
can pivot at the base, and be lowered and locked in place in less than 1
hour. This collapsible design helps to avoid damage from the region's
numerous cyclones. –
Copyright © 2014 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 endeavours 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
Oil & Gas 40% of Saudi construction contracts in Q2 ’14
Saudi Gazette + NewBase
Upcoming contracts are expected to include numerous mega-projects within the anchor sectors.
One significant project that is expected to be awarded is the terminal upgrades at King Khalid
International Airport. Additionally, Saudi Aramco is receiving bids for its SR11 billion Khurais oil
field expansion in the Eastern
Province, the report added.
There was a significant upswing
in the value of awarded contracts
during the second quarter of
2014 as it reached SR84.9
billion. It marked a strong
rebound from the previous
quarter. Anchor sectors took
hold of the majority of spending,
as the power and oil & gas
sectors accounted for
approximately 60 percent of the
value of awarded contracts.
Those two sectors have also
dominated the value of awarded
contracts during the first half of
2014, accounting for 49 percent
of contracts. The roads sector garnered a distant third, with 9 percent of the value of awarded
contracts during H1’14. Beyond the power and oil & gas sector during Q2’14, the value of
awarded contracts was nearly even across a majority of the remaining sectors.
The total value of awarded contracts through H1’14 reached SR124.6 billion. The resurgence of
awarded contracts during Q2’14 has put the pipeline of upcoming construction projects back on
track. The Q2’14 value of awarded contracts surpassed Q2’13 by 60 percent when it reached
SR53.6 billion. Furthermore, the value of awarded contracts during H1’14 surpassed that of H1’13
by 21 percent, which stood at SR102.7 billion. As efforts to focus expenditures on construction
projects continue, the value of awarded contracts in 2014 will likely parallel the magnitude of
projects that were awarded over the last several years.
The Construction Contracts Index (CCI) recovered from the first sub 200 points in 34 straight
months that occurred in March. The CCI gradually rose from 218.95 in April to 297.66 and 304.04
in May and June, respectively. Although the CCI dipped below 200 points during Q1’14, it ended
21 percent higher than the same period in Q2’13. The rally occurred as a result of a very strong
performance in May, which witnessed approximately SR44.1 billion worth of awarded contracts.
The CCI is expected to resume this positive trend throughout 2014.
The concentration of contracts within the oil & gas sector in the Jizan region allowed it to capture
33 percent of the overall share by region. Jizan was the recipient of numerous mega-project
contracts as part of Saudi Aramco’s development of the Jizan Refinery and Terminal project. The
Eastern Province, which had a 15 percent share witnessed a sizeable petro-chemical project that
was awarded by SABIC. Riyadh had a significant residential real estate contract as part of the
Copyright © 2014 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 endeavours 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
Cordoba project. The power sector accounted for numerous contracts throughout the Kingdom
and in Makkah and Madinah in particular.
The SR19.6 billion in awarded contract
during April was led by the power and oil
& gas sectors. Numerous contracts were
awarded by the Saudi Electricity
Company (SEC) across the Kingdom as
part of it strategic plan to increase power
generation to further its reach into more
households.
Alfanar was the largest recipient of
contracts that were awarded to it by SEC
as it won 7 contracts worth
approximately SR3.2 billion of the total
SR5.7 billion. The con-tracts, which
spanned across the Kingdom, were
mainly for the construction of
substations, transformers and
switchgears. The most noteworthy contract called for Alfanar to construct the Tabarjal substation,
transformers, switchgears and buildings near Al Qurayyat, Aljouf. The SR544 million contract is
expected to be completed by the third quarter of
2016.
A single contract was awarded in the oil & gas
sector in April in the amount of SR6.2 billion. Saudi
Aramco awarded the contract to Dodsal for the
development of the first phase of the Master Gas
System Expansion (MGSE) in Madinah. The scope
of the first phase of the MGSE scheme calls for
installation of pipelines across 585 Kms of land as
well as the construction of two gas compression
stations. The project is expected to be completed
by the fourth quarter of 2017.
The residential real estate sector had three contracts worth SR1.5 billion that was awarded by the
Ministry of Housing in April. The largest contract was awarded to Bin Jarallah Establishment for
the development of infrastructure works in Khamis Mushait as part of the Saudi Housing Project.
The SR1.3 billion contract is expected to be completed by the second quarter of 2017.
Within the education sector, approximately SR1.4 billion worth of contracts were awarded. The
largest set of contracts was awarded by the Ministry of Higher Education in the amount of SR700
million for the construction of the female faculty building, study halls and laboratories at the
Salman Bin Abdulaziz University in Al Kharj.
The roads sector had approximately SR1.1 billion in awarded contracts. The majority of these
contracts were awarded by the Ministry of Transport. However, the largest contract was awarded
by the Arriyadh Development Authority to Al Fahd Company in the amount of SR900 million.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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in this publication. However, no warranty is given to the accuracy of its content . Page 8
India's ONGC Likely to Start Commercial Shale Drilling Next Year
Reuters + NewBase
India’s public sector energy company Oil and Natural Gas Corp. Ltd (ONGC) aims to commence
commercial drilling for shale gas next year, its chairman said on Friday.
“We hope to take up at least 10
wells for parameters this year and to
start commercial drilling next year,”
Sudhir Vasudeva told reporters,
reported news agency Reuters.
ONGC and Oil India have identified
56 shale gas blocks which have
potential to be explored, country oil
minister Dharamendra Pradhan
informed the parliament last month. ONGC has zeroed in on 50 blocks and Oil India on six.
These blocks are located in the states of Assam (7 blocks), Arunachal Pradesh (1 block), Gujarat
(28 blocks), Rajasthan (1 block), Andhra Pradesh (10 blocks) and Tamil Nadu (9 blocks). ONGC
has drilled one well where coring has been completed. In addition, ONGC has collected cores
from another 7 wells.
Last year, India gave a go ahead to the much awaited shale oil and gas policy boosting prospects
of exploration of the unconventional gas in the country. The Cabinet Committee on Economic
Affairs (CCEA) approved the proposal of the Ministry of Petroleum and Natural Gas on the policy
on exploration and exploitation of shale gas and oil by National Oil Companies (NOCs),
namely ONGC and Oil India Limited, on acreages they already own.
As per the policy, the NOCs will undertake a mandatory minimum work program in a fixed time
frame for shale gas and oil exploration and exploitation, so that there is optimum accretion and
development of shale gas and oil resources. According to U.S. Energy Information Administration
India may have as much as 96 trillion cubic feet (tcf) of recoverable shale gas reserves.
Copyright © 2014 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 endeavours 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
Pakistan’s production of petroleum products rises 8.35 per cent
Internews + NewBase
The production of petroleum products rose 8.35 per cent during fiscal year 2013-14 compared to
the output achieved a year earlier. On a year-on-year basis, oil production increased 1.31 per cent
in June, according to data compiled by the Pakistan Bureau of Statistics (PBS).
The products that contributed to the positive production growth included jet fuel oil, up 6.36 per
cent compared to its output in 2012-13. Similarly, the output of motor spirit (petrol) increased 5.58
per cent while production of high-speed diesel rose 11 per cent.
Diesel oil and furnace oil also recorded a rise of 52.08 per cent and 9.48 per cent respectively in
their production whereas solvent naphtha registered output growth of 12.19 per cent. The roducts
that recorded a negative growth in production included kerosene oil, down 2.32 per cent while
output of jute batching oil, liquefied petroleum gas (LPG) and lubricating oil decreased 20.08 per
cent, 9.48 per cent and 0.10 per cent respectively.
Meanwhile, on a year-on-year basis, the production of kerosene oil was higher by 19.5 per cent in
June, the data revealed. Similarly, diesel oil output surged 44.83 per cent and solvent naphtha
rose 24.10 per cent.
The products that registered a fall in June included jet fuel, output of which edged down 1.18 per
cent. Similarly, the production of motor spirit fell 3.3 per cent, high-speed diesel 1.33 per cent,
lubricating oil 13.86 per cent, jute batching oil 41.67 per cent and LPG 7.84 per cent.
The country’s large-scale manufacturing (LSM) output grew 3.95 per cent compared to the
previous year. The Quantum Index Numbers of LSM stood at 121.66 points at the end of 2013-14
against 117.04 points in 2012-13.
In another development, the State Bank of Pakistan has asked all banks to prepare their own
framework for consumer protection. “The need for consumer protection arises from asymmetry of
power, information and resources
between banks and their customers,”
said a circular issued by the bank.
The circular said that if customers with
poor financial knowledge and skills
make poor financial choices, this will
not only lead to financial fragility of that
customer, but on a macro level, will
result in greater market susceptibility to
fraud and abuse.
This will tarnish customers’ trust in
financial markets and ultimately the
play-field for the financial institutions
will shrink. On the contrary, an effective
Financial Consumer Protection regime
will empower customers to obtain fair
information while enhancing their
capabilities to make informed financial
decisions, ultimately leading to a
greater transparency and efficiency, said the SBP circular.
Copyright © 2014 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 endeavours 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
Husky and CNOOC to expand Madura in Indonesia
Calgary-based Husky Energy (Husky) and its partners, the state-owned China National Offshore Oil
Corporation (CNOOC) and the independent Singapore-registered Samudra are proceeding to the
qualification of the engineering companies and shipyard to be invited to bid (ITB) for the construction of the
floating production unit (FPU) to be moored in the Madura Strait of Indonesia offshore East Java to
develop the MDA-MBH fields.
These MDA and MBH liquid-rich gas
fields belongs to the series of discoveries
unveiled by Husky since it started the
exploration and production of this Madura
Block in Indonesia. Husky signed its first
production sharing agreement (PSA) with
the Indonesian Government in 1982 and
drilled the first wells in 1984.
Immediately Madura appeared to be
prolific prospect for natural gas and
condensate benefiting from low sulfur
content. Because of the number of fields
and size of the potential reserves,
Husky signed deal with CNOOC and then
with Samudra . Madura block is located in
the Madura Strait, 200 kilometers from
Surabaya in East Java
Today these companies share the working interests in Madura in such a way that:
- Husky 40% is the operator
- CNOOC 40%
- Samudra 20%
In 2010, Husky and the Indonesian Government renewed the PSA for a second period of 20 years. Husky
and CNOOC to develop Madura in phases Because of the size of the Madura block, Husky and its partners
decided to phase up the development of the different fields in beginning with Madura BD.
Husky awarded the floating, production, storage and offloading (FPSO) vessel and welhead
platform construction on the first half of 2014 in expecting the first production to start on early 2017. After
this major step forward, Husky, CNOOC and Samudra are still moving ahead in preparing Madura phase-2
with the development of the MDA and MBH fields.
From the front end engineering and design (FEED) performed by CNOOC, Husky and its partners are
intending to use a floating production unit (FPU) and two fields dedicated wellheads platform.
Designed to treat up to 175 million cubic feet per day (cf/d) of natural gas, the Madura MDA-MBH FPU
will be fed by:
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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- 110 million cf/d from Madura MDA
- 55 million cf/d from Madura MBH
In the first phase Husky and its partners invested $1 billion capital expenditure.
For this Madura phase-2 Husky is planning to spend $375 million additional.
To maximize advantage from these investments, Indonesia required Madura projects to hold 30% local
content.
Therefore the qualification of the engineering companies and shipyards will assess the capability of the
contenders to respect this constraint as well as to meet Husky technical requirements and process
performances.
Husky, CNOOC and Samudra are planning to sanction this FPU contract on early 2015.
Considering the good quality of the natural gas liquids (NGL) held in the Madura gas fields, Husky,
CNOOC and Samudra are targeting to produce 17,000 barrels of oil equivalent per day (boe/d) from Madura
BD, MDA and MBH fields.
In addition, Husky and its partners made five more discoveries named MAX, MBF, MBJ MCA and MDK
that should be developed in following Madura next phases in the 2020s years.
For Madura Phase-3, Husky is planning to development of the MCA and MDK gas fields.
To save time and costs, Husky, CNOOC and Samudra have given preference to the conversion of an
existing vessel to build Madura MDA-MBH FPU that should start operation under ten years lease contract
by 2017.
Copyright © 2014 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced,
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in this publication. However, no warranty is given to the accuracy of its content . Page 12
China, Russia Start Construction Of Joint Nat Gas Pipeline
HeffX-LTN ,Paul Ebeling + NewBase
China and Russia started construction of a joint Nat Gas pipeline in
Russia’s eastern Siberia this weekend, in implementation of a Nat Gas
supply contract signed between the 2 countries. Chinese Vice Premier
Zhang Gaoli flew in from Moscow to Yakutsk, the capital city of Russia’s
Sakha (Yakutia) Republic, Sunday evening to attend a start-of-
construction ceremony for the Russian part of the East Route of the
China-Russia Nat Gas pipeline.
Zhang’s attendance at the start-of-construction ceremony reflects the
importance that the Chinese government attaches to the
comprehensive strategic partnership with Russia and its will to expand
bilateral cooperation to wider fields and higher levels.
Pipe-welding begins Monday in the Russian part of the East Route of the China-Russia Nat Gas
pipeline, which the Russian side named “Siberia Power” pipeline. According to a contract signed
under the witness of Chinese President Xi Jinping and Russian President Vladimir Putin during
their Shanghai meeting in May, the pipeline will transmit 38-B cubic meters of Nat Gas yeary to
China over a period of 30 yrs starting from Y 2018.
The Russian stakeholder of the pipeline Gazprom (PINK:OGZPY) estimates that total investment
in the project could exceed US$5-B. Gazprom Chairman Alexey Miller said Saturday that the Nat
Gas supply contract was just a good beginning of bi-lateral cooperation in the field of Nat Gas.
He said the Russian side is working on implementing the consensus reached by President Putin
and President Xi and will build the planned West Route of the Nat Gas pipeline and export Nat
Gas to China through it.
The start of construction of the East Route of the China-Russia Nat Gas pipeline signifies a major
step forward in implementing the consensus reached by Xi and Mr. Putin. The Russian part of the
pipeline will link the Kovyktin and Chayandin Nat Gas fields in Siberia with the eastern port city of
Vladivostok, covering a total distance of nearly 4,000 km.
Vice Premier Zhang said the breakthrough on the Nat Gas project and other large-scale projects
helped drive the China-Russia comprehensive strategic partnership into a new era of
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development. Zhang visited Moscow to co-chair the 11th meeting of the China-Russia Energy
Cooperation Committee with Russian Deputy Prime Minister Arkady Dvorkovich in Moscow
Saturday.
Gas transmission system
The Power of Siberia will become a unified gas transmission system (GTS) for the Irkutsk and
Yakutia gas production centers and convey gas from these centers to Vladivostok via Khabarovsk.
The Yakutia – Khabarovsk – Vladivostok gas trunkline will be constructed at the first stage, and
at the second stage the Irkutsk center will be connected to the Yakutia center by the gas pipeline.
The GTS route will run in parallel with the Eastern Siberia – Pacific Ocean operational oil pipeline,
thus enabling to streamline the infrastructure and power supply costs. The GTS route will pass,
inter alia, through swampy, mountainous and seismically hazardous areas.
The bulk of pipes used in the construction will be domestically manufactured. Some 11,700
experts will be engaged within Phase 1 of the Power of Siberia project and some 3,000
employees will ensure the pipeline's operation.
Investment decision
In October 2012 the Gazprom Management Committee adopted the final investment decision
on pre-development of the Chayandinskoye field, construction of the Yakutia – Khabarovsk –
Vladivostok gas trunkline as well as gas processing facilities in Belogorsk.
Technical features
• length – about 4,000 kilometers (Yakutia – Khabarovsk – Vladivostok – some 3,200 kilometers,
Irkutsk Region – Yakutia – nearly 800 kilometers);
• diameter – 1,420 millimeters;
• working pressure – 9,8 MPa (100 Ata);
• annual throughput – 61 billion cubic meters.
Project deadlines
The first section of the Power of Siberia GTS – the Yakutia –
Khabarovsk – Vladivostok gas trunkline – will come onstream
in late 2017.
Some 3,000 experts will be engaged in operation of gas pipeline
and Gazprom’s production facilities in Yakutia
Socioeconomic development
Expansion of Gazprom's business in Yakutia is a strong driver for socioeconomic development
of the region. In particular, construction of gas transmission facilities in the region will provide for
its further gasification. The Yakutia – Khabarovsk – Vladivostok gas pipeline will run, inter alia, via
Copyright © 2014 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 endeavours 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
southern regions of Yakutia. The gas pipeline route was selected so as to convey gas to the
maximum possible number of population centers.
In addition, the Yakutia gas production center will raise the employment level of the local
population. Some 3,000 experts will be engaged in operation of the gas pipeline and Gazprom's
production facilities in Yakutia. Nowadays, the Company provides training for experts, also from
Yakutia, at Russian professional educational centers and encourages development of new
education programs.
Export potential
A vast resource base in Eastern Russia, sustained formation of large gas production centers and
building of necessary transmission corridors will make it possible to establish there a new Russian
gas export center geared to the Asian-Pacific region.
The launch of the Chayandinskoye field pre-development and the project for building the Yakutia –
Khabarovsk – Vladivostok gas trunkline made it possible to start negotiating the eastern route with
China in addition to the western route.
May 21 2014 Alexey Miller, Chairman of the Company's Management Committee and Zhou
Jiping, Chairman of China National Petroleum Corporation (CNPC) signed today a contract
to supply pipeline gas from Russia to China via the eastern route. The 30-year contract stipulates
that 38 billion cubic meters of Russian gas will be annually supplied to China.
Copyright © 2014 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 endeavours 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
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Your partner in Energy Services
Khaled Malallah Al Awadi,
MSc. & BSc. Mechanical Engineering (HON), USA
ASME member since 1995
Emarat member since 1990
Energy Services & Consultants
Mobile : +97150-4822502
khalid_malallah@emarat.ae
khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. CuOil & Gas sector. CuOil & Gas sector. CuOil & Gas sector. Currently working as Technical Affairs Specialist for Emiratesrrently working as Technical Affairs Specialist for Emiratesrrently working as Technical Affairs Specialist for Emiratesrrently working as Technical Affairs Specialist for Emirates
General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most ofa UAE operations base , Most ofa UAE operations base , Most ofa UAE operations base , Most of
the experience were spent as the Gasthe experience were spent as the Gasthe experience were spent as the Gasthe experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThroughOperations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThroughOperations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThroughOperations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through
the years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulating stationsof gas pipelines, gas metering & regulating stationsof gas pipelines, gas metering & regulating stationsof gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Manyand in the engineering of supply routes. Manyand in the engineering of supply routes. Manyand in the engineering of supply routes. Many
years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference forocal authorities. He has become a reference forocal authorities. He has become a reference forocal authorities. He has become a reference for
many of the Oil & Gas Conferences hemany of the Oil & Gas Conferences hemany of the Oil & Gas Conferences hemany of the Oil & Gas Conferences held in the UAE andld in the UAE andld in the UAE andld in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .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
NewBase 01 September 2014 K. Al Awadi

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New base special 01 september 2014

  • 1. Copyright © 2014 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 endeavours 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 01 September 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE The UAE to give Egypt $8.7bn worth of petroleum products Reuters + NewBase The United Arab Emirates will provide Egypt with petroleum products worth $8.7 billion over a year starting in September, an Egyptian official told Reuters on Sunday. Egypt has struggled to curb its swelling budget deficit and meet its soaring energy demands, which have resulted in daily electricity cuts around the country of 86 million people. Oil-producing Gulf countries have come to Egypt's aid since the army, prompted by mass protests, oustedIslamist President Mohamed Mursi last year. "We will complete all the details this week and the first shipment will be sent next week," the official said, referring to the UAE agreement. He said some of the petroleum products would comes as grants and the remainder under a credit agreement that would be repaid in instalments. The United Arab Emirates, Saudi Arabia and Kuwait have together provided Egypt with more tan $20 billion in grants, loans and petroleum products since Mursi's overthrow. Fuel subsidies have in recent years cost Egypt's government around $15 billion a year, a fifth of the state budget. But the government slashed energy subsidies and increased prices by more than 70 percent in July. "Egypt imports petroleum products worth around $1 billion to $1.3 billion a month," the official said.
  • 2. Copyright © 2014 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 endeavours 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 UAE energy security lies in diversification Robin Mills is the head of consulting at Manaar Energy The UAE, as a major oil and gas producer, might appear immune from a physical cut-off of supplies, a danger menacing Europe during its confrontation with Russia. But it is a small country, in an often volatile area, and with a hostile climate. In this desert climate, water is energy. A failure of water or power supplies for a few hours would interrupt normal business and life, and if continued for just a few days would be a threat to economic security – if the UAE were unable to export its oil freely, for example, or if imported food or gas prices spiked. The country’s power stations are almost entirely fuelled by gas, of which a quarter is imported from Qatar via the Dolphin pipeline, or as liquefied natural gas by Dubai, most of which, again, is of Qatari origin. Desalination of sea water is mostly in combination with power generation, using the waste heat from gas combustion. Dubai increased its reservoir capacity substantially last year, but it still represents only about two-and-a-half days’ demand. So what steps can the UAE take to safeguard its energy and water? Physical and cyber security are already being beefed up, but it is also necessary to increase resilience to unavoidable shocks. Winston Churchill’s oft-quoted dictum that “safety and certainty in oil, lie in variety and variety alone” – uttered as the British government was purchasing shares of BP (then Anglo-Persian) to guarantee access to Iranian oil – applies to energy security generally. The nuclear power programme at Baraka in the Western Region introduces its own safety challenges, but will diversify the power generation mix away from near-total dependence on gas. Solar power programmes in Abu Dhabi and Dubai are very small today, but could economically reach 10 to 20 per cent of generation capacity. Small-scale solar rooftop schemes could be especially beneficial in boosting energy security – providing power in case of local problems such
  • 3. Copyright © 2014 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 endeavours 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 as breakdowns in transmission lines. Keeping telecoms stations, phones, lifts, fridges, water pumps and air conditioning running, at least during the day, would help mitigate short-term outages. Recycling “grey” water uses less energy than generating desalinated water. More energy-efficient reverse osmosis desalination plants can run on electricity from any source and would reduce dependence on burning gas. The urban landscape can also be made more resilient – cityscapes tailored to avoid trapping heat, as at Masdar City, water-efficient irrigation, and multi-modal public transport. Better insulation and shading, and thermal storage in chilled water or ice, ensure buildings stay cool for longer even if the power goes off. Cutting subsidies for electricity, water and fuel promotes rational use and so economic resilience. On the largest scale, the Emirates need to continue integrating their water, gas and electricity networks, and building rail – and to link these systems with those of GCC partners, particularly Oman. Food and trade security are not just a matter of physical construction, but also international diplomacy. These steps are all efficient and environmentally positive in themselves. But if it is hard to justify green design and energy efficiency on financial and ecological grounds alone, it is better not to find yourself dealing with an unexpected emergency by candlelight.
  • 4. Copyright © 2014 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 endeavours 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 Masdar-UAE delivers Samoa’s first Wind Farm Emirates News Agency, WAM - The Samoan Prime Minister, the Honourable Tuilaepa Aiono Sailele Malielegaoi, yesterday inaugurated the country's first wind farm. Delivered by Masdar, Abu Dhabi's renewable energy company, the 550 kWe project is the second completed under the United Arab Emirates' (U.A.E.) US$50 million Pacific Partnership Fund, which is managed by Abu Dhabi Fund for Development (ADFD). The inauguration ceremony comes two days before the start of the United Nations' Third Conference on Small Island Developing States1, in Samoa's capital. Dr. Sultan Ahmed Al Jaber, U.A.E. Minister of State and Chairman of Masdar, explained, "This U.A.E. supported project, and others like it underway across the Pacific, unlock significant economic and social benefits across the region. By providing local sources of renewable energy and reducing reliance on imported fuels, the U.A.E. is helping countries like Samoa realise its development ambitions, while also delivering valuable clean energy infrastructure. "Renewable energy has the potential to be a major contributor to the energy mix in developing countries, acting as a catalyst for greater socioeconomic opportunity. Today's inauguration reinforces the U.A.E.'s commitment to advancing and deploying renewable energy globally." Located on the Samoan island of Upolu – home to nearly 75 per cent of the population – the wind farm will supply 1,500 MWh of power per year, delivering US$475,000 in annual fuel cost savings. The innovative ‘cyclone proof' project will also reduce the island's carbon footprint by more than 1,000 tons of carbon dioxide (CO2) each year. The Prime Minister of Samoa added, "The new wind farm delivered by Masdar and funded by the ADFD is a significant step forward in Samoa's transition to a more sustainable energy future. This
  • 5. Copyright © 2014 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 endeavours 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 has been possible thanks to the support of Abu Dhabi and the United Arab Emirates, and their commitment to advancing sustainable development. Access to renewable energy is vital to our long-term economic development, even beyond the substantial gains realised by cutting our dependence on imported fuel." Mohammed Saif Al Suwaidi, Director-General of the Abu Dhabi Fund for Development, said, "The Abu Dhabi Fund for Development is committed to working collaboratively with governments across the developing world, on projects that deliver tangible social and economic benefits. "This innovative, bespoke project offers energy access to thousands of people, whilst demonstrating the validity of renewable energy as an economic enabler. We believe this project will unlock a significant opportunity for the Samoan government and its people." The U.A.E. Pacific Partnership Fund supports the deployment of renewable energy across Pacific island states and represents one of the largest-ever investments in clean energy across the region. The grant is managed by the Abu Dhabi Fund for Development, and coordinated by the Ministry of Foreign Affairs, Directorate of Energy and Climate Change. Masdar partners with each nation's government and leads the design and implementation process. First announced during Abu Dhabi Sustainability Week in January 20142, the Samoan wind farm is the second project to be completed under the fund. Masdar is also currently progressing solar PV projects in Fiji, Kiribati, Tuvalu, and Vanuatu. A 512 kWe solar PV installation in Tonga, achieving nearly 70 percent grid penetration, was the first project to be completed. The projects address the very high cost of diesel imports in Pacific countries, as well as delivering reductions in CO2 emissions. Research from the International Renewable Energy Agency indicates that renewable energy is now the most cost competitive source of power in the Pacific3, but deployment has been constrained by access to finance and expertise. The cumulative 2.8 MWe capacity of the six identified projects, will substitute 1.5 million litres of diesel fuel otherwise imported each year. The projects together will deliver annual savings of US$1.87m and avoid 4,450 tons of CO2. The pioneering project in Samoa includes two 55 meters high turbines that can pivot at the base, and be lowered and locked in place in less than 1 hour. This collapsible design helps to avoid damage from the region's numerous cyclones. –
  • 6. Copyright © 2014 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 endeavours 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 Oil & Gas 40% of Saudi construction contracts in Q2 ’14 Saudi Gazette + NewBase Upcoming contracts are expected to include numerous mega-projects within the anchor sectors. One significant project that is expected to be awarded is the terminal upgrades at King Khalid International Airport. Additionally, Saudi Aramco is receiving bids for its SR11 billion Khurais oil field expansion in the Eastern Province, the report added. There was a significant upswing in the value of awarded contracts during the second quarter of 2014 as it reached SR84.9 billion. It marked a strong rebound from the previous quarter. Anchor sectors took hold of the majority of spending, as the power and oil & gas sectors accounted for approximately 60 percent of the value of awarded contracts. Those two sectors have also dominated the value of awarded contracts during the first half of 2014, accounting for 49 percent of contracts. The roads sector garnered a distant third, with 9 percent of the value of awarded contracts during H1’14. Beyond the power and oil & gas sector during Q2’14, the value of awarded contracts was nearly even across a majority of the remaining sectors. The total value of awarded contracts through H1’14 reached SR124.6 billion. The resurgence of awarded contracts during Q2’14 has put the pipeline of upcoming construction projects back on track. The Q2’14 value of awarded contracts surpassed Q2’13 by 60 percent when it reached SR53.6 billion. Furthermore, the value of awarded contracts during H1’14 surpassed that of H1’13 by 21 percent, which stood at SR102.7 billion. As efforts to focus expenditures on construction projects continue, the value of awarded contracts in 2014 will likely parallel the magnitude of projects that were awarded over the last several years. The Construction Contracts Index (CCI) recovered from the first sub 200 points in 34 straight months that occurred in March. The CCI gradually rose from 218.95 in April to 297.66 and 304.04 in May and June, respectively. Although the CCI dipped below 200 points during Q1’14, it ended 21 percent higher than the same period in Q2’13. The rally occurred as a result of a very strong performance in May, which witnessed approximately SR44.1 billion worth of awarded contracts. The CCI is expected to resume this positive trend throughout 2014. The concentration of contracts within the oil & gas sector in the Jizan region allowed it to capture 33 percent of the overall share by region. Jizan was the recipient of numerous mega-project contracts as part of Saudi Aramco’s development of the Jizan Refinery and Terminal project. The Eastern Province, which had a 15 percent share witnessed a sizeable petro-chemical project that was awarded by SABIC. Riyadh had a significant residential real estate contract as part of the
  • 7. Copyright © 2014 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 endeavours 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 Cordoba project. The power sector accounted for numerous contracts throughout the Kingdom and in Makkah and Madinah in particular. The SR19.6 billion in awarded contract during April was led by the power and oil & gas sectors. Numerous contracts were awarded by the Saudi Electricity Company (SEC) across the Kingdom as part of it strategic plan to increase power generation to further its reach into more households. Alfanar was the largest recipient of contracts that were awarded to it by SEC as it won 7 contracts worth approximately SR3.2 billion of the total SR5.7 billion. The con-tracts, which spanned across the Kingdom, were mainly for the construction of substations, transformers and switchgears. The most noteworthy contract called for Alfanar to construct the Tabarjal substation, transformers, switchgears and buildings near Al Qurayyat, Aljouf. The SR544 million contract is expected to be completed by the third quarter of 2016. A single contract was awarded in the oil & gas sector in April in the amount of SR6.2 billion. Saudi Aramco awarded the contract to Dodsal for the development of the first phase of the Master Gas System Expansion (MGSE) in Madinah. The scope of the first phase of the MGSE scheme calls for installation of pipelines across 585 Kms of land as well as the construction of two gas compression stations. The project is expected to be completed by the fourth quarter of 2017. The residential real estate sector had three contracts worth SR1.5 billion that was awarded by the Ministry of Housing in April. The largest contract was awarded to Bin Jarallah Establishment for the development of infrastructure works in Khamis Mushait as part of the Saudi Housing Project. The SR1.3 billion contract is expected to be completed by the second quarter of 2017. Within the education sector, approximately SR1.4 billion worth of contracts were awarded. The largest set of contracts was awarded by the Ministry of Higher Education in the amount of SR700 million for the construction of the female faculty building, study halls and laboratories at the Salman Bin Abdulaziz University in Al Kharj. The roads sector had approximately SR1.1 billion in awarded contracts. The majority of these contracts were awarded by the Ministry of Transport. However, the largest contract was awarded by the Arriyadh Development Authority to Al Fahd Company in the amount of SR900 million.
  • 8. Copyright © 2014 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 endeavours 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 India's ONGC Likely to Start Commercial Shale Drilling Next Year Reuters + NewBase India’s public sector energy company Oil and Natural Gas Corp. Ltd (ONGC) aims to commence commercial drilling for shale gas next year, its chairman said on Friday. “We hope to take up at least 10 wells for parameters this year and to start commercial drilling next year,” Sudhir Vasudeva told reporters, reported news agency Reuters. ONGC and Oil India have identified 56 shale gas blocks which have potential to be explored, country oil minister Dharamendra Pradhan informed the parliament last month. ONGC has zeroed in on 50 blocks and Oil India on six. These blocks are located in the states of Assam (7 blocks), Arunachal Pradesh (1 block), Gujarat (28 blocks), Rajasthan (1 block), Andhra Pradesh (10 blocks) and Tamil Nadu (9 blocks). ONGC has drilled one well where coring has been completed. In addition, ONGC has collected cores from another 7 wells. Last year, India gave a go ahead to the much awaited shale oil and gas policy boosting prospects of exploration of the unconventional gas in the country. The Cabinet Committee on Economic Affairs (CCEA) approved the proposal of the Ministry of Petroleum and Natural Gas on the policy on exploration and exploitation of shale gas and oil by National Oil Companies (NOCs), namely ONGC and Oil India Limited, on acreages they already own. As per the policy, the NOCs will undertake a mandatory minimum work program in a fixed time frame for shale gas and oil exploration and exploitation, so that there is optimum accretion and development of shale gas and oil resources. According to U.S. Energy Information Administration India may have as much as 96 trillion cubic feet (tcf) of recoverable shale gas reserves.
  • 9. Copyright © 2014 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 endeavours 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 Pakistan’s production of petroleum products rises 8.35 per cent Internews + NewBase The production of petroleum products rose 8.35 per cent during fiscal year 2013-14 compared to the output achieved a year earlier. On a year-on-year basis, oil production increased 1.31 per cent in June, according to data compiled by the Pakistan Bureau of Statistics (PBS). The products that contributed to the positive production growth included jet fuel oil, up 6.36 per cent compared to its output in 2012-13. Similarly, the output of motor spirit (petrol) increased 5.58 per cent while production of high-speed diesel rose 11 per cent. Diesel oil and furnace oil also recorded a rise of 52.08 per cent and 9.48 per cent respectively in their production whereas solvent naphtha registered output growth of 12.19 per cent. The roducts that recorded a negative growth in production included kerosene oil, down 2.32 per cent while output of jute batching oil, liquefied petroleum gas (LPG) and lubricating oil decreased 20.08 per cent, 9.48 per cent and 0.10 per cent respectively. Meanwhile, on a year-on-year basis, the production of kerosene oil was higher by 19.5 per cent in June, the data revealed. Similarly, diesel oil output surged 44.83 per cent and solvent naphtha rose 24.10 per cent. The products that registered a fall in June included jet fuel, output of which edged down 1.18 per cent. Similarly, the production of motor spirit fell 3.3 per cent, high-speed diesel 1.33 per cent, lubricating oil 13.86 per cent, jute batching oil 41.67 per cent and LPG 7.84 per cent. The country’s large-scale manufacturing (LSM) output grew 3.95 per cent compared to the previous year. The Quantum Index Numbers of LSM stood at 121.66 points at the end of 2013-14 against 117.04 points in 2012-13. In another development, the State Bank of Pakistan has asked all banks to prepare their own framework for consumer protection. “The need for consumer protection arises from asymmetry of power, information and resources between banks and their customers,” said a circular issued by the bank. The circular said that if customers with poor financial knowledge and skills make poor financial choices, this will not only lead to financial fragility of that customer, but on a macro level, will result in greater market susceptibility to fraud and abuse. This will tarnish customers’ trust in financial markets and ultimately the play-field for the financial institutions will shrink. On the contrary, an effective Financial Consumer Protection regime will empower customers to obtain fair information while enhancing their capabilities to make informed financial decisions, ultimately leading to a greater transparency and efficiency, said the SBP circular.
  • 10. Copyright © 2014 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 endeavours 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 Husky and CNOOC to expand Madura in Indonesia Calgary-based Husky Energy (Husky) and its partners, the state-owned China National Offshore Oil Corporation (CNOOC) and the independent Singapore-registered Samudra are proceeding to the qualification of the engineering companies and shipyard to be invited to bid (ITB) for the construction of the floating production unit (FPU) to be moored in the Madura Strait of Indonesia offshore East Java to develop the MDA-MBH fields. These MDA and MBH liquid-rich gas fields belongs to the series of discoveries unveiled by Husky since it started the exploration and production of this Madura Block in Indonesia. Husky signed its first production sharing agreement (PSA) with the Indonesian Government in 1982 and drilled the first wells in 1984. Immediately Madura appeared to be prolific prospect for natural gas and condensate benefiting from low sulfur content. Because of the number of fields and size of the potential reserves, Husky signed deal with CNOOC and then with Samudra . Madura block is located in the Madura Strait, 200 kilometers from Surabaya in East Java Today these companies share the working interests in Madura in such a way that: - Husky 40% is the operator - CNOOC 40% - Samudra 20% In 2010, Husky and the Indonesian Government renewed the PSA for a second period of 20 years. Husky and CNOOC to develop Madura in phases Because of the size of the Madura block, Husky and its partners decided to phase up the development of the different fields in beginning with Madura BD. Husky awarded the floating, production, storage and offloading (FPSO) vessel and welhead platform construction on the first half of 2014 in expecting the first production to start on early 2017. After this major step forward, Husky, CNOOC and Samudra are still moving ahead in preparing Madura phase-2 with the development of the MDA and MBH fields. From the front end engineering and design (FEED) performed by CNOOC, Husky and its partners are intending to use a floating production unit (FPU) and two fields dedicated wellheads platform. Designed to treat up to 175 million cubic feet per day (cf/d) of natural gas, the Madura MDA-MBH FPU will be fed by:
  • 11. Copyright © 2014 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 endeavours 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 - 110 million cf/d from Madura MDA - 55 million cf/d from Madura MBH In the first phase Husky and its partners invested $1 billion capital expenditure. For this Madura phase-2 Husky is planning to spend $375 million additional. To maximize advantage from these investments, Indonesia required Madura projects to hold 30% local content. Therefore the qualification of the engineering companies and shipyards will assess the capability of the contenders to respect this constraint as well as to meet Husky technical requirements and process performances. Husky, CNOOC and Samudra are planning to sanction this FPU contract on early 2015. Considering the good quality of the natural gas liquids (NGL) held in the Madura gas fields, Husky, CNOOC and Samudra are targeting to produce 17,000 barrels of oil equivalent per day (boe/d) from Madura BD, MDA and MBH fields. In addition, Husky and its partners made five more discoveries named MAX, MBF, MBJ MCA and MDK that should be developed in following Madura next phases in the 2020s years. For Madura Phase-3, Husky is planning to development of the MCA and MDK gas fields. To save time and costs, Husky, CNOOC and Samudra have given preference to the conversion of an existing vessel to build Madura MDA-MBH FPU that should start operation under ten years lease contract by 2017.
  • 12. Copyright © 2014 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 endeavours 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 China, Russia Start Construction Of Joint Nat Gas Pipeline HeffX-LTN ,Paul Ebeling + NewBase China and Russia started construction of a joint Nat Gas pipeline in Russia’s eastern Siberia this weekend, in implementation of a Nat Gas supply contract signed between the 2 countries. Chinese Vice Premier Zhang Gaoli flew in from Moscow to Yakutsk, the capital city of Russia’s Sakha (Yakutia) Republic, Sunday evening to attend a start-of- construction ceremony for the Russian part of the East Route of the China-Russia Nat Gas pipeline. Zhang’s attendance at the start-of-construction ceremony reflects the importance that the Chinese government attaches to the comprehensive strategic partnership with Russia and its will to expand bilateral cooperation to wider fields and higher levels. Pipe-welding begins Monday in the Russian part of the East Route of the China-Russia Nat Gas pipeline, which the Russian side named “Siberia Power” pipeline. According to a contract signed under the witness of Chinese President Xi Jinping and Russian President Vladimir Putin during their Shanghai meeting in May, the pipeline will transmit 38-B cubic meters of Nat Gas yeary to China over a period of 30 yrs starting from Y 2018. The Russian stakeholder of the pipeline Gazprom (PINK:OGZPY) estimates that total investment in the project could exceed US$5-B. Gazprom Chairman Alexey Miller said Saturday that the Nat Gas supply contract was just a good beginning of bi-lateral cooperation in the field of Nat Gas. He said the Russian side is working on implementing the consensus reached by President Putin and President Xi and will build the planned West Route of the Nat Gas pipeline and export Nat Gas to China through it. The start of construction of the East Route of the China-Russia Nat Gas pipeline signifies a major step forward in implementing the consensus reached by Xi and Mr. Putin. The Russian part of the pipeline will link the Kovyktin and Chayandin Nat Gas fields in Siberia with the eastern port city of Vladivostok, covering a total distance of nearly 4,000 km. Vice Premier Zhang said the breakthrough on the Nat Gas project and other large-scale projects helped drive the China-Russia comprehensive strategic partnership into a new era of
  • 13. Copyright © 2014 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 endeavours 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 development. Zhang visited Moscow to co-chair the 11th meeting of the China-Russia Energy Cooperation Committee with Russian Deputy Prime Minister Arkady Dvorkovich in Moscow Saturday. Gas transmission system The Power of Siberia will become a unified gas transmission system (GTS) for the Irkutsk and Yakutia gas production centers and convey gas from these centers to Vladivostok via Khabarovsk. The Yakutia – Khabarovsk – Vladivostok gas trunkline will be constructed at the first stage, and at the second stage the Irkutsk center will be connected to the Yakutia center by the gas pipeline. The GTS route will run in parallel with the Eastern Siberia – Pacific Ocean operational oil pipeline, thus enabling to streamline the infrastructure and power supply costs. The GTS route will pass, inter alia, through swampy, mountainous and seismically hazardous areas. The bulk of pipes used in the construction will be domestically manufactured. Some 11,700 experts will be engaged within Phase 1 of the Power of Siberia project and some 3,000 employees will ensure the pipeline's operation. Investment decision In October 2012 the Gazprom Management Committee adopted the final investment decision on pre-development of the Chayandinskoye field, construction of the Yakutia – Khabarovsk – Vladivostok gas trunkline as well as gas processing facilities in Belogorsk. Technical features • length – about 4,000 kilometers (Yakutia – Khabarovsk – Vladivostok – some 3,200 kilometers, Irkutsk Region – Yakutia – nearly 800 kilometers); • diameter – 1,420 millimeters; • working pressure – 9,8 MPa (100 Ata); • annual throughput – 61 billion cubic meters. Project deadlines The first section of the Power of Siberia GTS – the Yakutia – Khabarovsk – Vladivostok gas trunkline – will come onstream in late 2017. Some 3,000 experts will be engaged in operation of gas pipeline and Gazprom’s production facilities in Yakutia Socioeconomic development Expansion of Gazprom's business in Yakutia is a strong driver for socioeconomic development of the region. In particular, construction of gas transmission facilities in the region will provide for its further gasification. The Yakutia – Khabarovsk – Vladivostok gas pipeline will run, inter alia, via
  • 14. Copyright © 2014 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 endeavours 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 southern regions of Yakutia. The gas pipeline route was selected so as to convey gas to the maximum possible number of population centers. In addition, the Yakutia gas production center will raise the employment level of the local population. Some 3,000 experts will be engaged in operation of the gas pipeline and Gazprom's production facilities in Yakutia. Nowadays, the Company provides training for experts, also from Yakutia, at Russian professional educational centers and encourages development of new education programs. Export potential A vast resource base in Eastern Russia, sustained formation of large gas production centers and building of necessary transmission corridors will make it possible to establish there a new Russian gas export center geared to the Asian-Pacific region. The launch of the Chayandinskoye field pre-development and the project for building the Yakutia – Khabarovsk – Vladivostok gas trunkline made it possible to start negotiating the eastern route with China in addition to the western route. May 21 2014 Alexey Miller, Chairman of the Company's Management Committee and Zhou Jiping, Chairman of China National Petroleum Corporation (CNPC) signed today a contract to supply pipeline gas from Russia to China via the eastern route. The 30-year contract stipulates that 38 billion cubic meters of Russian gas will be annually supplied to China.
  • 15. Copyright © 2014 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 endeavours 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 NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Your partner in Energy Services Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990 Energy Services & Consultants Mobile : +97150-4822502 khalid_malallah@emarat.ae khdmohd@hotmail.com Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. CuOil & Gas sector. CuOil & Gas sector. CuOil & Gas sector. Currently working as Technical Affairs Specialist for Emiratesrrently working as Technical Affairs Specialist for Emiratesrrently working as Technical Affairs Specialist for Emiratesrrently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service asGeneral Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most ofa UAE operations base , Most ofa UAE operations base , Most ofa UAE operations base , Most of the experience were spent as the Gasthe experience were spent as the Gasthe experience were spent as the Gasthe experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThroughOperations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThroughOperations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . ThroughOperations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructingthe years , he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulating stationsof gas pipelines, gas metering & regulating stationsof gas pipelines, gas metering & regulating stationsof gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Manyand in the engineering of supply routes. Manyand in the engineering of supply routes. Manyand in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the lyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference forocal authorities. He has become a reference forocal authorities. He has become a reference forocal authorities. He has become a reference for many of the Oil & Gas Conferences hemany of the Oil & Gas Conferences hemany of the Oil & Gas Conferences hemany of the Oil & Gas Conferences held in the UAE andld in the UAE andld in the UAE andld in the UAE and Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .Energy program broadcasted internationally , via GCC leading satellite Channels .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 NewBase 01 September 2014 K. Al Awadi