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NewBase 07 April 2014 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Biofuel for aerospace ecosystem in focusTradeArabia News Service
Experts are set to discuss the challenges and opportunities toward research and development of
biofuel for the aerospace ecosystem at a summit in Abu Dhabi this week.
The Global Aerospace Summit, in its second edition this year, will take place on April 7 and 8 at
the St. Regis Hotel, Saadiyat Island, with a focus on the importance of R&D in the aviation,
aerospace, defense and space sectors.
It will bring together vice presidents, directors and heads of sustainability, alternative fuels,
renewable energy, research and development and innovation from various industries, who will
discuss R&D and commercialisation of alternative jet fuel.
The key themes include the viability of biofuels, technical challenges of developing and
commercialising biofuels for aviation. The short and long term challenges for airlines to adopting
alternative fuels and the inherent risks in developing, selling and using these fuels will also be
addressed.
Dr Abdelqader Abusafieh, head of R&D of aerospace and engineering services at Mubadala, said:
“Though there has been strong progress in the field of alternative jet fuels, and particularly
biofuels, further work is needed for biofuels to be fully integrated into the aviation fuel supply
chain. There is a demand for biofuels from the sector, not just for environmental reasons, but also
to increase long term fuel security.”
“Companies and universities need to work
together within R&D, examine successes
within fields like biofuels, and debate what the
industry can do to further ensure that
alternative fuel adoption becomes more
common place,” he said.
In the UAE, Etihad Airways, Takreer, Total
and the Masdar Institute of Science and
Technology have joined Boeing in its R&D
efforts to develop a sustainable aviation
biofuel supply chain. The R&D within
technology has also led to growing demand for
lighter, stronger and more advanced materials
and chemical advancements for aerospace
applications.
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“Academic capability takes both investment and time, and the growth of R&D rests upon a strong
relationship between higher and vocational education institutes and the industry. In an era of
austerity in public funding, the industry needs to discuss what it can do to protect academia and
ensure its continued strengthening of the aerospace, aviation, space and defense industries,”
added Dr Abusafieh.
The summit will focus on how advanced manufacturing and materials are transforming the
aerospace industries and on the challenges of driving industrialisation and growth across aviation,
aerospace, defense and space sectors.
Specialised sessions will examine R&D within advanced manufacturing and its impact on
development and supply chain. Panelists will consider the use of carbon fibre composites and
developments in ferrous and non-ferrous metal, with the summit bringing together senior
programme and development representatives to predict the next materials of the future. –
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Taqa chief executive plans ‘simplified’ corporate structure in shake-up
Source : TheNational
Abu Dhabi National Energy will reveal a new “simplified” corporate structure this month under its
new chief operating officer.
Edward LaFehr, the chief operating officer of the company that is also known as Taqa, is set to
disclose details of the shake-up on April 22. The company last month reported a loss last year of
Dh1.1 billion. Mr LaFehr, formerly the head of Taqa’s North American subsidiary, took over at the
helm of the company in February after the departure of the chief executive Carl Sheldon.
Taqa also announced an accelerated timetable for the opening of the company’s Netherlands gas
storage facility, and the fifth and sixth units of its Jorf Lasfar coal plant in Morocco, Wam reported
yesterday. Taqa is reshaping its business after its North American oil and gas operations were hit
hard by the effect of a shale
gas boom that has pushed
natural gas prices to less than
a quarter of their peak.
“My action plan for the coming
100 days has already begun,”
said Mr LaFehr in a statement
issued to Wam. “I am also
committed to simplifying and
strengthening the organisation,
and rebalancing our profitability
and growth agenda, which is
about improving free cash flow
and reducing debt leverage
over time.” Taqa’s existing operations spread over 11 countries and cover oil and gas and power
and water generation.
About TAQA in North America :- (www.taqaglobal.com)
In the United States, TAQA has interests in power generation through a gas fired power station on the
East coast and a Mid-West wind farm. It also has oil and gas interests in three North Western states.
Power Generation
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Energy Solutions
The Lakefield wind project, located in Jackson County, Minnesota, consists
of 137 General Electric 1.5 MW wind turbines with the capacity to generate
205.5 MW of emissions-free electricity for more than 68,000 homes.
The electricity is sold to Indianapolis Power & Light Company, a subsidiary
of the AES Corporation, under a 20-year power purchase agreement. The
Lakefield wind project has been supplying the regional transmission system covering the Midwestern United States
and Manitoba, Canada since 2011.
Oil & Gas in North America
TAQA, through its North American oil and gas business, also holds
leases on land for oil and gas production in the States of Montana,
North Dakota and Wyoming. In the United States, almost all of the
Group’s leases are freehold with a three-year primary term after
which, unless the lease has been proved productive, it reverts to the original owner. For production figures,
please see TAQA’s North American oil and gas business, headquartered in Canada.
TAQA has extensive land holdings in North America with exploration and production rights. As of 30 September
2012, the Group had approximately 1.22 million net producing acres with approximately a further 1.62 million net
acres of non-producing land, as well as an interest in approximately 556,000 producing acres and 344,000 non-
producing acres.
TAQA’s strategy is to realise the full potential of this land base through exploration and development-drilling
programmes. As part of that strategy, TAQA will continue to consider acquisitions of land holdings that complement
its core operating areas, while disposing of land that is not core to its operations.
TAQA’s North American oil and gas activities are divided into three main areas: North, Central and South. The North
area encompasses all assets from the Alberta-Saskatchewan border west through Alberta and into Northeast British
Columbia. In total, the Group’s assets in this area span over 1.8 million acres, of which slightly less than 0.7 million
acres are non-producing. The Group’s oil and natural gas production facilities in the North consist mainly of well site
separation and dehydration, low pressure gas gathering systems, oil batteries and compressor stations. The Group also
owns and operates gas plants in Sousa, Chinchaga, Valhalla and Whitecourt.
The Central area falls within West Central Alberta south and west of Red Deer. In total, the Group’s properties in this
area span approximately 1.2 million acres, of which slightly more than 0.3 million acres are non-producing. The
Group’s crude oil and natural gas production facilities in the Central area consist of well site separation and
dehydration, extensive gas gathering systems, and field and booster compressor stations. The Group operates several
gas plants in the areas including Bearberry, Caroline, Columbia,, Sundre and Brewster.
The South area stretches across Southern Alberta and Southwest Saskatchewan and into the States of Montana, North
Dakota and Wyoming in the northwestern United States. In total, the Group’s properties in this area span
approximately 1.4 million acres, of which slightly more than 0.6 million net acres are nonproducing. The Group’s
natural gas production facilities in the South area consist of the East Crossfield gas plant which it operates.
TAQA’s low pressure gas gathering systems and field compression stations are connected to processing infrastructure
operated by both itself and other operators. There are central, multi-well oil batteries at Brant Farrow, Grand Forks,
Viking Kinsella, Mikwan and Flat Lake. Proven plus probable reserves in North America are 475.4 mmboe, with a
total average daily production of 85.9 mboed in 2012.
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Cement giants Holcim, Lafarge in merger talks
BYBLOOMBERG NEWS
Holcim and Lafarge, the world's two biggest cement makers, are in advanced merger talks to
create a company with $40 billion in sales and better able to deal with production overcapacities
and higher energy costs.
The companies are exploring a merger of equals that would build on their "strengths and
identities," Jona, Switzerland-based Holcim and Lafarge said on Friday after Bloomberg News
reported the discussions. Paris-based Lafarge rose 8.9 per cent while Holcim gained 6.9 per cent
in Zurich. A deal would let the two producers cut costs by combining operations as some of the
industry's kilns run at a loss after the
recent global recession eroded
demand. To improve returns from
energy-gobbling plants, Holcim in
August agreed to swap assets in
Germany and the Czech Republic
with Monterrey, Mexico- based
Cemex SAB, the biggest cement
maker in the Americas.
"There is still massive oversupply in
the industry," Ian Osburn, an analyst
at Cantor Fitzgerald, said in an
interview. A deal would help Holcim
and Lafarge to "cut a lot of costs
and dominate a few more markets."
Regulatory scrutiny
A transaction may face scrutiny from
regulators in markets around the
world, and Osburn said the
companies would need to sell assets in Europe and the US The deal would face reviews in
Europe, especially in France, as well as in Spain and Germany, he said, while regulators in
Russia, Hungary and the Czech Republic may also examine the transaction.
Lafarge estimates in its 2013 annual report that last year it had a cement market share of 34 per
cent in France, 40 per cent in the UK and 10 per cent in Germany and Spain. It had a market
share of 12 per cent in the US and 7.0 per cent in Russia. Holcim didn't provide market shares for
individual markets.
Holcim now employs 71,000 people in about 70 countries while Lafarge has about 65,000 workers
in 64 markets. News of the discussions lifted construction and materials shares in Europe, helping
the Stoxx Europe 600 Index rise to a six-year high. Germany's HeidelbergCement, the world's
third-largest maker of cement, rose 4.3 per cent in Frankfurt.
Holcim Chief Executive Officer Bernard Fontana became the first outsider to lead Holcim when he
joined the 102-year-old Swiss company in February 2012. Drawing on his past experience of
overhauling steelmaker Aperam, the French national has embarked on a similar cost-cutting
program, using the same "Leadership Journey" label he employed in his prior post.
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OGC signs MoU for setting up LPG plant in Salalah
Written by Oman Observer
Oman Gas Company (OGC), the Sultanate’s gas transportation utility, yesterday signed a Memorandum of
Understanding (MoU) for setting up a world-class Liquefied Petroleum Gas (LPG) processing plant at
Salalah Free Zone (SFZ), as well as for establishing related storage and export facilities at the Port of
Salalah. The state-of-the-art plant, which is proposed to be designed and built in compliance with strict HSE
principles, will allow for the very high recovery of
propane, butane and condensates from natural gas
flowing through OGC’s southern gas grid. Around
1,000 people will be engaged in the construction of
the complex which, when operational, will provide
employment to some 170 highly skilled technical
staff.
While the free zone will house the LPG extraction
plant, LPG and condensate storage facilities, as well
as an export jetty, are proposed to be construction at
the adjoining port. Also as part of the project, gas and liquid pipeline networks will be built in Salalah.
Yousuf al Ojaili, CEO of Oman Gas Company, commented that the project is expected to come on stream
by 2018 and will generate employment and industrial growth opportunities in Salalah area. It will also
secure supplies of cooking gas to the Dhofar area, instead of current practice of trucking supplies by road
from oilfield locations. Al Ojaili thanked the Ministry of Oil and Gas, and the Minister of Oil and Gas in
particular, for their continued support in the crystallisation of this strategically vital project.
He voiced hope that similar ventures aimed at adding value to Oman’s natural gas volumes will soon be
pursued in other locations around Oman. Awadh Salim al Shanfari, CEO of SFZ, stated: “The MoU to
construct this vital project in the Salalah region stems from the strategic goal of exploiting the natural
resources of the Sultanate to create projects which will add value, and broaden the horizons for other
industries that are located downstream of the LPG value chain. This project will bring with it a lot of
advantages, including help in creating employment training opportunities for Omanis in the region.
Furthermore, the project will also help in the development of opportunities for SMEs.” Ahmed Akaak,
Deputy CEO at the Port Of Salalah said, “Gas has increasingly becoming a critical energy resource for the
current as well as future development of the Sultanate and surrounding region.
As a vital supplier and catalyst for new businesses and new job opportunities to come into Salalah Free
Zone and the Port, we welcome Oman Gas Company and look forward to having the project’s expansion
storage facilities here in the Port of Salalah.” Wholly-owned by Oman Oil Company, OGC is responsible
for delivering natural gas to all the major consumers, notably domestic power and water desalination plants,
fertilizer, methanol, petrochemical, refineries, steel and cement plants. Since its inception in 2000, Oman
Gas Company has grown in stature and reputation into an integrated enterprise harnessing the power of
Oman’s natural gas transportation. The utility operates a roughly 2,500 nationwide high-pressure gas
transmission network that supplies natural gas as feedstock and fuel to a growing number of domestic
industrial consumers.
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Series of small earthquakes rock Oklahoma in record seismic activity
BY CAREY GILLAM (Reuters) –
Earthquakes rattled residents in Oklahoma on Saturday, the latest in a series that have put the state on
track for record quake activity this year, which some seismologists say may be tied to oil and gas
exploration.
One earthquake recorded at 3.8
magnitude by the U.S. Geological
Survey rocked houses in several
communities around central
Oklahoma at 7:42 a.m. local time.
Another about two hours earlier in the
same part of the state, north of
Oklahoma City, was recorded at 2.9
magnitude, USGS said.
Those two were preceded by two
more, at 2.6 magnitude, and 2.5
magnitude, that also rolled the
landscape in central Oklahoma early
Saturday morning. A 3.0 magnitude
tremor struck late Friday night in that
area as well, following a 3.4 magnitude hit Friday afternoon. Austin Holland, a seismologist with the
Oklahoma Geological Survey who tracks earthquake activity for the USGS, said the earthquake activity
in the state is soaring.
"We have had almost as many magnitude 3 and greater already in 2014 than we did for all of 2013,"
Holland said. Last year's number of "felt" earthquakes - those strong enough to rattle items on a shelf -
hit a record 222 in the state. This year, less than four months into the year, the state has recorded 253
such tremors, according to state seismic data.
"We have already crushed last year's record for number of earthquakes," Holland said. Most
earthquakes occur naturally. But scientists have long linked some small earthquakes to oil and gas
work underground, which can alter pressure points and cause shifts in the earth.
Oil and gas exploration has increased in recent years across the country, spurred by U.S. efforts for
energy independence. Modern hydraulic fracturing, or fracking, is one particularly controversial
technique.
For bigger quakes, so far this year the state has recorded 106 at 3.0 magnitude and above, according to
Holland. For all of last year the state had 109 at 3.0 and above. In November 2011, Oklahoma suffered
a 5.6 magnitude quake that damaged more than a dozen homes and several businesses.
Wastewater disposal related to the fracking is suspected by many scientists to contribute to the
earthquake activity. Millions of gallons of wastewater are typically trucked from a fracking site to wells
where the water is injected thousands of feet underground into porous rock layers. That work, if done
near a fault, can trigger larger quakes, according to several recent scientific studies.
Oklahoma recorded 278 earthquakes from 2008 through 2013 that have registered on the Richter
scale at a magnitude of 3.0 or greater, a level that can shake objects inside a home. Before that, from
1975-2008, the state on average recorded less than six earthquakes a year.
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US: California regulations block state shale oil boom - Republicans
Source: Reuters
Republican lawmakers said on Friday over regulation has prevented a shale oil boom in California and if
eased, could boost production in the state and reduce its dependence on foreign energy.
With more than an estimated 15 billion barrels of oil, according to the U.S. Energy Information
Administration, California's Monterey shale formation is twice as large as North Dakota's Bakken
formation. That state has risen to become the second-largest U.S. oil producer in recent years, behind Texas.
California had the third-largest U.S. oil output in 2013, narrowly ahead of Alaska, but could produce far
more if the state aggressively moved to develop its energy resources, lawmakers said at a House Natural
Resources committee hearing.
'The challenge now is not our ability to find it, it's the ability of government allowing us to be able to
produce it in a sound way,' said Republican Kevin McCarthy, who represents California's oil-producing
Kern county.
Mostly cut off from the rest of the country's oil production, California relies on countries such as Iraq and
Saudi Arabia to meet more than half of its crude oil needs. State regulators are working to update oversight
of hydraulic fracturing, or fracking, the drilling technique that has helped to spur the U.S. shale oil and gas
boom.
Uncertainty surrounding future energy policies and lengthy permitting processes have pushed energy
companies away from California, Jean Fuller, a California state senator, told lawmakers. Critics of fracking,
have blamed the practice for water contamination and have raised concerns that increased drilling has
polluted the air. Fracking involves injecting water, sand and chemicals underground at high pressures to
extract oil and gas.
California Democrats at the hearing pushed back against claims that the state's stringent environmental rules
have harmed the state. 'In California we try to balance ... extraction of resources with the health of our
communities and our ecosystems, and we are not going to change that model,' said Democrat Alan
Lowenthal, whose district includes parts of Los Angeles and Orange counties. While companies may find
the state's regulations burdensome, there is no law blocking them from developing the Monterey shale
formation, Lowenthal said. California Governor Jerry Brown, a Democrat, has said he supports more leasing
for shale development if it can be done in a safe manner.
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Indonesia: CBM Asia anounces plan for commercializing its 705 Bcf
resource at Kutai West PSC , Source: CBM Asia
CBM Asia Development Corp has announced plans for the Kutai West PSC development. CBM Asia's
primary goal for 2014 is to commercialize the Kutai West Production Sharing Contract (PSC) in East
Kalimantan, Indonesia, located near the Bontang LNG export facility. Achieving early-stage commercial
production will help unlock the value of this asset, which is situated close to high-priced Asian gas markets.
705 Bcf Near Bontang LNG
Facility. CBM Asia holds an
18% working interest in the
Kutai West PSC, representing
705 Bcf of recoverable
prospective resources net to
CBM Asia from the total 3.9
Tcf estimated by an
independent audit conducted
in 2013 by Netherland, Sewell
& Associates, Inc.1 Kutai West
is regarded as one of the best
and commercially most
advanced of the more than 50
awarded CBM blocks in
Indonesia.
Kutai West is adjacent to the
Sanga-Sanga PSC, where
VICO (BP and partners) is
commercially producing and selling CBM for power generation and gas to the nearby Bontang LNG
facility. As VICO notes: 'This is the first time in Indonesia that any CBM facilities have produced and sold
gas and represents a major milestone in the exploration of CBM potential.'
Kutai West will produce from the same coal seams as at Sanga-Sanga. To date, the Company and its
partners have drilled four CBM test wells on the block, verifying thick coal seams (average 105 ft) with
high gas content (average 300 ft3/ton; dry, ash-free basis) and gas saturation (close to 100%), as well as 5-
mD permeability. The KWCBM-01 well is currently being dewatered, venting produced gas from the flare
stack, which is a key first step towards larger scale production.
Management's main focus this year is to initiate commercial gas production at Kutai West with a 5-well
pilot, followed by a larger commercial scale 25-well development (total 30 wells). To this end we have
reached consensus with our partners to sell the produced gas to locally installed gas engine power
generation units selling power into the PLN grid and later to feed gas into the gas-short Bontang LNG
export network. Anticipated gas prices are USD8/Mcf or higher. Bontang exports LNG to Japan and other
Asian rim importers, which are critically short of natural gas.
Phase 1: Under Phase 1 four new CBM wells will be drilled near the existing KW-CBM01, forming an
effective dewatering pilot on tight 40-acre spacing to accelerate gas production and demonstrate
commerciality. Produced gas estimated at 2.0-2.5 MMcfd (gross) would be sold to a power station
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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developer/operator and PLN for on-site power generation at about US$8/Mcf. The government of Indonesia
strongly supports such commercialization prior to formal Plan of Development (POD) approval. Total capex
for Phase 1 is estimated at US$7.16 million, comprising four wells at US$1.46 million/well cost (drilling &
completion, water management, and surface facilities) plus US$1.32 million in engineering and overhead
costs. An additional $200,000 would be required for field operating expenses during the first year. CBM
Asia's share of the Phase 1 costs is estimated at US$2.15 million.
The 10-MW power station would employ an array of 1- to 5-MW reciprocating engines; hundreds of such
installations already are in operation throughout Indonesia. The power station would be independently
owned and operated, with no capital required from CBM Asia. Drilling and completing the wells would
require about two months, plus an additional four months to install and commission the power plant. An
updated engineering audit would be conducted to certify proved and probable reserves, with an excellent
chance of qualifying the project for low-cost Phase 2 project financing.
Phase 2: Following success in Phase 1 and the approval of the Phase 2 POD, CBM Asia and its partners
would utilize two rigs to drill an additional 25 wells (30 total) over a 7-month period. The increased
production initially would supply the power station. Pending successful conclusion of a sales agreement, a
12-inch, 20-km pipeline would be constructed to the Badak compressor station by a third party under BOO
basis and funded via an estimated $0.50/Mcf transport tariff. Total capex for phase 2 is estimated at
US$36.3 million with CBM Asia's share of costs estimated at US$8.0 million. Production estimated at 12.5
MMcfd (gross) would be sold into the Bontang LNG export network at approximately US$8/Mcf or more.
Note that Bontang is the world's second largest LNG plant (22.5 mtpa), shipping primarily to Japan, but
local conventional gas supplies are in decline and the facility is currently operating at less than 60% of
capacity.
'The Kutai West and Sekayu PSC's both have substantial engineered resources for commercialization, but
Kutai West is most viable for near-term commercial development' noted President and CEO Charles
Bloomquist. 'We are focusing our efforts on achieving commercial production and gas sales at the block as
soon as possible, likely before the end of 2014. We estimate that with completion of the Phase 2
development CBM Asia will be operational cash flow positive. Jointly with its partners the Company has
developed a technical plan and budget for the Kutai West commercial development and will post details in a
new presentation on its website in the coming days.'
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in this publication. However, no warranty is given to the accuracy of its content . Page 11
Brent slips below $106 as Libya deal eases supply worries
Manash Goswami - Reuters
Brent crude prices fell below $106 a barrel on Monday, snapping a two-day winning streak, as worries
about supply disruption eased after Libyan rebels occupying four eastern oil ports agreed to gradually end
their eight-month old blockade.
A major advance for the north African exporter, the end to the oil port standoff is taking some supply
worries off the market that helped push prices to a high of $112 for the year. Investors are now waiting for
details on the volume Libya will start shipping, while also assessing U.S. gasoline demand to gauge the
outlook for oil.
Brent crude dropped 77 cents to $105.95 a barrel by 0425 GMT, after ending the week 1.3 percent lower.
U.S. oil declined 26 cents to $100.88, after posting its first weekly loss in three. "Oil, particularly Brent, will
come under pressure only if Libyan exports rise above 1 million barrels per day (bpd)," said Tetsu Emori, a
commodity fund manager at Astmax Investment. "If they are less than that, the downside will be limited."
Libya's Zueitina and Hariga ports, held by federalist rebels demanding more autonomy from Tripoli, will
open immediately while the larger ports, Ras Lanuf and Es Sider, will be freed in two to four weeks after
more talks. Further losses in oil prices were, however, checked by data showing strong jobs growth in the
United States. The jobs number added to
a range of indicators from
manufacturing and services sector
activity to automobile sales that have
signalled strength as the first quarter
ended. The promising economic
indicators are boosting expectations of
strong gasoline sales as the world's top
oil consumer, the United States, enters
the peak summer driving season.
PRICE OUTLOOK
"We might see oil holding around these levels because peak winter demand has ended and the market is
waiting to see what the summer gasoline demand will be like," Emori said. "The market wants to see if
gasoline will offset the fall in heating oil demand."
U.S. gasoline demand over the past four weeks was 3.8 percent higher than a year ago at 8.79 million bpd,
the latest Energy Information Administration (EIA) data. Gasoline stocks fell 1.6 million barrels, compared
with forecast for a 1.1-million-barrel drop, data showed.
Investors are also watching the progress in talks between world powers and Iran on the Islamic Republic's
nuclear programme. The United States dismissed suggestions that Iran was exporting much more oil than it
is allowed to sell under a preliminary nuclear deal and predicted that aggregate Iranian oil sales would meet
targets set for Tehran.
The remarks from a senior U.S. official came ahead of a new round of senior-level negotiations between
Iran and the United States, Britain, France, Germany, China and Russia in Vienna on April 8-9. Brent is
expected to fall into a range of $104.08-$104.90 per barrel, while U.S. oil is expected to retrace more into a
range of $100.15-$100.55, according to Reuters technical analyst Wang Tao.
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in this publication. However, no warranty is given to the accuracy of its content . Page 12
Singapore sees LNG trading hub ambition fulfilled after 2018
WRITTEN BY BLOOMBERG
Singapore’s political neutrality and English-speaking workforce will help the city-state become an
Asian hub for LNG trading, according to the government.
“Singapore will become a LNG trading hub within the next
five to 10 years,” Seah Moon Ming, chairman of
government trade promotion agency IE Singapore, said in
an interview on April 2. Singapore’s location, financial
system and common law system will also boost its
chances of becoming a regional center, he said.
Singapore, Asia’s oil-trading center, has spent $1.7 billion
on its first LNG terminal. Asia has overtaken Europe as the
world’s biggest gas importer, accounting for 46% of global
trade, according to the International Energy Agency, which cites Singapore as best-placed to be
the hub for liquefied natural gas.
The country has the only LNG terminal in Asia that can reload cargoes from storage, allowing
traders to store gas during low-consumption periods before selling them during peak demand
seasons. It is Southeast Asia’s largest receiving facility, with a capacity of 6 million metric tons a
year.
Global LNG demand
Global LNG capacity and demand
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
Saudi metro project kicks off in Riyadh
– Reuters
Saudi Arabia has begun construction work on its long awaited first metro rail system in Riyadh.
The multi-billion project will involve six rail lines extending 176 kilometers and carrying electric, driverless
trains, in what Saudi officials project to be the world's largest public transport system.
Prince Khalid Bin Bandar, the Riyadh emir,
attended a groundbreaking ceremony in the
capital on Thursday to mark the first day of
construction work.
“On this blessed day we witness the start
of works on the grounds of the metro
project. The phase of research and
planning is over and now it is time for
implementation,” said Prince Khalid Bin
Bandar. Saudi Arabia awarded $22.5
billion in contracts to three foreign-led
consortia for the design and construction
of the system.
While the metro is unlikely to persuade
some Saudis to abandon their love for the
automobile, others may welcome the
chance to escape severe traffic
congestion in the capital. The new service
will also enable lower-income individuals
to head around the city
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
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 ofofofof experience in theexperience in theexperience in theexperience in the Oil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as
Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for
the GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed
great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelof gas pipelof gas pipelof gas pipelines, gas metering & regulating stations and in the engineering of supplyines, gas metering & regulating stations and in the engineering of supplyines, gas metering & regulating stations and in the engineering of supplyines, gas metering & regulating stations and in the engineering of supply
routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for
the local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted
internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels ....
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 07 April 2014 K. Al Awadi
M.D Zaidi
SQ International
www.sq-intl.com
Tel: +92 21 34822200
Mob: +92 300 3482660

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New base special 07 april 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 07 April 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Biofuel for aerospace ecosystem in focusTradeArabia News Service Experts are set to discuss the challenges and opportunities toward research and development of biofuel for the aerospace ecosystem at a summit in Abu Dhabi this week. The Global Aerospace Summit, in its second edition this year, will take place on April 7 and 8 at the St. Regis Hotel, Saadiyat Island, with a focus on the importance of R&D in the aviation, aerospace, defense and space sectors. It will bring together vice presidents, directors and heads of sustainability, alternative fuels, renewable energy, research and development and innovation from various industries, who will discuss R&D and commercialisation of alternative jet fuel. The key themes include the viability of biofuels, technical challenges of developing and commercialising biofuels for aviation. The short and long term challenges for airlines to adopting alternative fuels and the inherent risks in developing, selling and using these fuels will also be addressed. Dr Abdelqader Abusafieh, head of R&D of aerospace and engineering services at Mubadala, said: “Though there has been strong progress in the field of alternative jet fuels, and particularly biofuels, further work is needed for biofuels to be fully integrated into the aviation fuel supply chain. There is a demand for biofuels from the sector, not just for environmental reasons, but also to increase long term fuel security.” “Companies and universities need to work together within R&D, examine successes within fields like biofuels, and debate what the industry can do to further ensure that alternative fuel adoption becomes more common place,” he said. In the UAE, Etihad Airways, Takreer, Total and the Masdar Institute of Science and Technology have joined Boeing in its R&D efforts to develop a sustainable aviation biofuel supply chain. The R&D within technology has also led to growing demand for lighter, stronger and more advanced materials and chemical advancements for aerospace applications.
  • 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 “Academic capability takes both investment and time, and the growth of R&D rests upon a strong relationship between higher and vocational education institutes and the industry. In an era of austerity in public funding, the industry needs to discuss what it can do to protect academia and ensure its continued strengthening of the aerospace, aviation, space and defense industries,” added Dr Abusafieh. The summit will focus on how advanced manufacturing and materials are transforming the aerospace industries and on the challenges of driving industrialisation and growth across aviation, aerospace, defense and space sectors. Specialised sessions will examine R&D within advanced manufacturing and its impact on development and supply chain. Panelists will consider the use of carbon fibre composites and developments in ferrous and non-ferrous metal, with the summit bringing together senior programme and development representatives to predict the next materials of the future. –
  • 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 Taqa chief executive plans ‘simplified’ corporate structure in shake-up Source : TheNational Abu Dhabi National Energy will reveal a new “simplified” corporate structure this month under its new chief operating officer. Edward LaFehr, the chief operating officer of the company that is also known as Taqa, is set to disclose details of the shake-up on April 22. The company last month reported a loss last year of Dh1.1 billion. Mr LaFehr, formerly the head of Taqa’s North American subsidiary, took over at the helm of the company in February after the departure of the chief executive Carl Sheldon. Taqa also announced an accelerated timetable for the opening of the company’s Netherlands gas storage facility, and the fifth and sixth units of its Jorf Lasfar coal plant in Morocco, Wam reported yesterday. Taqa is reshaping its business after its North American oil and gas operations were hit hard by the effect of a shale gas boom that has pushed natural gas prices to less than a quarter of their peak. “My action plan for the coming 100 days has already begun,” said Mr LaFehr in a statement issued to Wam. “I am also committed to simplifying and strengthening the organisation, and rebalancing our profitability and growth agenda, which is about improving free cash flow and reducing debt leverage over time.” Taqa’s existing operations spread over 11 countries and cover oil and gas and power and water generation. About TAQA in North America :- (www.taqaglobal.com) In the United States, TAQA has interests in power generation through a gas fired power station on the East coast and a Mid-West wind farm. It also has oil and gas interests in three North Western states. Power Generation
  • 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 Energy Solutions The Lakefield wind project, located in Jackson County, Minnesota, consists of 137 General Electric 1.5 MW wind turbines with the capacity to generate 205.5 MW of emissions-free electricity for more than 68,000 homes. The electricity is sold to Indianapolis Power & Light Company, a subsidiary of the AES Corporation, under a 20-year power purchase agreement. The Lakefield wind project has been supplying the regional transmission system covering the Midwestern United States and Manitoba, Canada since 2011. Oil & Gas in North America TAQA, through its North American oil and gas business, also holds leases on land for oil and gas production in the States of Montana, North Dakota and Wyoming. In the United States, almost all of the Group’s leases are freehold with a three-year primary term after which, unless the lease has been proved productive, it reverts to the original owner. For production figures, please see TAQA’s North American oil and gas business, headquartered in Canada. TAQA has extensive land holdings in North America with exploration and production rights. As of 30 September 2012, the Group had approximately 1.22 million net producing acres with approximately a further 1.62 million net acres of non-producing land, as well as an interest in approximately 556,000 producing acres and 344,000 non- producing acres. TAQA’s strategy is to realise the full potential of this land base through exploration and development-drilling programmes. As part of that strategy, TAQA will continue to consider acquisitions of land holdings that complement its core operating areas, while disposing of land that is not core to its operations. TAQA’s North American oil and gas activities are divided into three main areas: North, Central and South. The North area encompasses all assets from the Alberta-Saskatchewan border west through Alberta and into Northeast British Columbia. In total, the Group’s assets in this area span over 1.8 million acres, of which slightly less than 0.7 million acres are non-producing. The Group’s oil and natural gas production facilities in the North consist mainly of well site separation and dehydration, low pressure gas gathering systems, oil batteries and compressor stations. The Group also owns and operates gas plants in Sousa, Chinchaga, Valhalla and Whitecourt. The Central area falls within West Central Alberta south and west of Red Deer. In total, the Group’s properties in this area span approximately 1.2 million acres, of which slightly more than 0.3 million acres are non-producing. The Group’s crude oil and natural gas production facilities in the Central area consist of well site separation and dehydration, extensive gas gathering systems, and field and booster compressor stations. The Group operates several gas plants in the areas including Bearberry, Caroline, Columbia,, Sundre and Brewster. The South area stretches across Southern Alberta and Southwest Saskatchewan and into the States of Montana, North Dakota and Wyoming in the northwestern United States. In total, the Group’s properties in this area span approximately 1.4 million acres, of which slightly more than 0.6 million net acres are nonproducing. The Group’s natural gas production facilities in the South area consist of the East Crossfield gas plant which it operates. TAQA’s low pressure gas gathering systems and field compression stations are connected to processing infrastructure operated by both itself and other operators. There are central, multi-well oil batteries at Brant Farrow, Grand Forks, Viking Kinsella, Mikwan and Flat Lake. Proven plus probable reserves in North America are 475.4 mmboe, with a total average daily production of 85.9 mboed in 2012.
  • 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 Cement giants Holcim, Lafarge in merger talks BYBLOOMBERG NEWS Holcim and Lafarge, the world's two biggest cement makers, are in advanced merger talks to create a company with $40 billion in sales and better able to deal with production overcapacities and higher energy costs. The companies are exploring a merger of equals that would build on their "strengths and identities," Jona, Switzerland-based Holcim and Lafarge said on Friday after Bloomberg News reported the discussions. Paris-based Lafarge rose 8.9 per cent while Holcim gained 6.9 per cent in Zurich. A deal would let the two producers cut costs by combining operations as some of the industry's kilns run at a loss after the recent global recession eroded demand. To improve returns from energy-gobbling plants, Holcim in August agreed to swap assets in Germany and the Czech Republic with Monterrey, Mexico- based Cemex SAB, the biggest cement maker in the Americas. "There is still massive oversupply in the industry," Ian Osburn, an analyst at Cantor Fitzgerald, said in an interview. A deal would help Holcim and Lafarge to "cut a lot of costs and dominate a few more markets." Regulatory scrutiny A transaction may face scrutiny from regulators in markets around the world, and Osburn said the companies would need to sell assets in Europe and the US The deal would face reviews in Europe, especially in France, as well as in Spain and Germany, he said, while regulators in Russia, Hungary and the Czech Republic may also examine the transaction. Lafarge estimates in its 2013 annual report that last year it had a cement market share of 34 per cent in France, 40 per cent in the UK and 10 per cent in Germany and Spain. It had a market share of 12 per cent in the US and 7.0 per cent in Russia. Holcim didn't provide market shares for individual markets. Holcim now employs 71,000 people in about 70 countries while Lafarge has about 65,000 workers in 64 markets. News of the discussions lifted construction and materials shares in Europe, helping the Stoxx Europe 600 Index rise to a six-year high. Germany's HeidelbergCement, the world's third-largest maker of cement, rose 4.3 per cent in Frankfurt. Holcim Chief Executive Officer Bernard Fontana became the first outsider to lead Holcim when he joined the 102-year-old Swiss company in February 2012. Drawing on his past experience of overhauling steelmaker Aperam, the French national has embarked on a similar cost-cutting program, using the same "Leadership Journey" label he employed in his prior post.
  • 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 OGC signs MoU for setting up LPG plant in Salalah Written by Oman Observer Oman Gas Company (OGC), the Sultanate’s gas transportation utility, yesterday signed a Memorandum of Understanding (MoU) for setting up a world-class Liquefied Petroleum Gas (LPG) processing plant at Salalah Free Zone (SFZ), as well as for establishing related storage and export facilities at the Port of Salalah. The state-of-the-art plant, which is proposed to be designed and built in compliance with strict HSE principles, will allow for the very high recovery of propane, butane and condensates from natural gas flowing through OGC’s southern gas grid. Around 1,000 people will be engaged in the construction of the complex which, when operational, will provide employment to some 170 highly skilled technical staff. While the free zone will house the LPG extraction plant, LPG and condensate storage facilities, as well as an export jetty, are proposed to be construction at the adjoining port. Also as part of the project, gas and liquid pipeline networks will be built in Salalah. Yousuf al Ojaili, CEO of Oman Gas Company, commented that the project is expected to come on stream by 2018 and will generate employment and industrial growth opportunities in Salalah area. It will also secure supplies of cooking gas to the Dhofar area, instead of current practice of trucking supplies by road from oilfield locations. Al Ojaili thanked the Ministry of Oil and Gas, and the Minister of Oil and Gas in particular, for their continued support in the crystallisation of this strategically vital project. He voiced hope that similar ventures aimed at adding value to Oman’s natural gas volumes will soon be pursued in other locations around Oman. Awadh Salim al Shanfari, CEO of SFZ, stated: “The MoU to construct this vital project in the Salalah region stems from the strategic goal of exploiting the natural resources of the Sultanate to create projects which will add value, and broaden the horizons for other industries that are located downstream of the LPG value chain. This project will bring with it a lot of advantages, including help in creating employment training opportunities for Omanis in the region. Furthermore, the project will also help in the development of opportunities for SMEs.” Ahmed Akaak, Deputy CEO at the Port Of Salalah said, “Gas has increasingly becoming a critical energy resource for the current as well as future development of the Sultanate and surrounding region. As a vital supplier and catalyst for new businesses and new job opportunities to come into Salalah Free Zone and the Port, we welcome Oman Gas Company and look forward to having the project’s expansion storage facilities here in the Port of Salalah.” Wholly-owned by Oman Oil Company, OGC is responsible for delivering natural gas to all the major consumers, notably domestic power and water desalination plants, fertilizer, methanol, petrochemical, refineries, steel and cement plants. Since its inception in 2000, Oman Gas Company has grown in stature and reputation into an integrated enterprise harnessing the power of Oman’s natural gas transportation. The utility operates a roughly 2,500 nationwide high-pressure gas transmission network that supplies natural gas as feedstock and fuel to a growing number of domestic industrial consumers.
  • 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 Series of small earthquakes rock Oklahoma in record seismic activity BY CAREY GILLAM (Reuters) – Earthquakes rattled residents in Oklahoma on Saturday, the latest in a series that have put the state on track for record quake activity this year, which some seismologists say may be tied to oil and gas exploration. One earthquake recorded at 3.8 magnitude by the U.S. Geological Survey rocked houses in several communities around central Oklahoma at 7:42 a.m. local time. Another about two hours earlier in the same part of the state, north of Oklahoma City, was recorded at 2.9 magnitude, USGS said. Those two were preceded by two more, at 2.6 magnitude, and 2.5 magnitude, that also rolled the landscape in central Oklahoma early Saturday morning. A 3.0 magnitude tremor struck late Friday night in that area as well, following a 3.4 magnitude hit Friday afternoon. Austin Holland, a seismologist with the Oklahoma Geological Survey who tracks earthquake activity for the USGS, said the earthquake activity in the state is soaring. "We have had almost as many magnitude 3 and greater already in 2014 than we did for all of 2013," Holland said. Last year's number of "felt" earthquakes - those strong enough to rattle items on a shelf - hit a record 222 in the state. This year, less than four months into the year, the state has recorded 253 such tremors, according to state seismic data. "We have already crushed last year's record for number of earthquakes," Holland said. Most earthquakes occur naturally. But scientists have long linked some small earthquakes to oil and gas work underground, which can alter pressure points and cause shifts in the earth. Oil and gas exploration has increased in recent years across the country, spurred by U.S. efforts for energy independence. Modern hydraulic fracturing, or fracking, is one particularly controversial technique. For bigger quakes, so far this year the state has recorded 106 at 3.0 magnitude and above, according to Holland. For all of last year the state had 109 at 3.0 and above. In November 2011, Oklahoma suffered a 5.6 magnitude quake that damaged more than a dozen homes and several businesses. Wastewater disposal related to the fracking is suspected by many scientists to contribute to the earthquake activity. Millions of gallons of wastewater are typically trucked from a fracking site to wells where the water is injected thousands of feet underground into porous rock layers. That work, if done near a fault, can trigger larger quakes, according to several recent scientific studies. Oklahoma recorded 278 earthquakes from 2008 through 2013 that have registered on the Richter scale at a magnitude of 3.0 or greater, a level that can shake objects inside a home. Before that, from 1975-2008, the state on average recorded less than six earthquakes a year.
  • 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 US: California regulations block state shale oil boom - Republicans Source: Reuters Republican lawmakers said on Friday over regulation has prevented a shale oil boom in California and if eased, could boost production in the state and reduce its dependence on foreign energy. With more than an estimated 15 billion barrels of oil, according to the U.S. Energy Information Administration, California's Monterey shale formation is twice as large as North Dakota's Bakken formation. That state has risen to become the second-largest U.S. oil producer in recent years, behind Texas. California had the third-largest U.S. oil output in 2013, narrowly ahead of Alaska, but could produce far more if the state aggressively moved to develop its energy resources, lawmakers said at a House Natural Resources committee hearing. 'The challenge now is not our ability to find it, it's the ability of government allowing us to be able to produce it in a sound way,' said Republican Kevin McCarthy, who represents California's oil-producing Kern county. Mostly cut off from the rest of the country's oil production, California relies on countries such as Iraq and Saudi Arabia to meet more than half of its crude oil needs. State regulators are working to update oversight of hydraulic fracturing, or fracking, the drilling technique that has helped to spur the U.S. shale oil and gas boom. Uncertainty surrounding future energy policies and lengthy permitting processes have pushed energy companies away from California, Jean Fuller, a California state senator, told lawmakers. Critics of fracking, have blamed the practice for water contamination and have raised concerns that increased drilling has polluted the air. Fracking involves injecting water, sand and chemicals underground at high pressures to extract oil and gas. California Democrats at the hearing pushed back against claims that the state's stringent environmental rules have harmed the state. 'In California we try to balance ... extraction of resources with the health of our communities and our ecosystems, and we are not going to change that model,' said Democrat Alan Lowenthal, whose district includes parts of Los Angeles and Orange counties. While companies may find the state's regulations burdensome, there is no law blocking them from developing the Monterey shale formation, Lowenthal said. California Governor Jerry Brown, a Democrat, has said he supports more leasing for shale development if it can be done in a safe manner.
  • 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 Indonesia: CBM Asia anounces plan for commercializing its 705 Bcf resource at Kutai West PSC , Source: CBM Asia CBM Asia Development Corp has announced plans for the Kutai West PSC development. CBM Asia's primary goal for 2014 is to commercialize the Kutai West Production Sharing Contract (PSC) in East Kalimantan, Indonesia, located near the Bontang LNG export facility. Achieving early-stage commercial production will help unlock the value of this asset, which is situated close to high-priced Asian gas markets. 705 Bcf Near Bontang LNG Facility. CBM Asia holds an 18% working interest in the Kutai West PSC, representing 705 Bcf of recoverable prospective resources net to CBM Asia from the total 3.9 Tcf estimated by an independent audit conducted in 2013 by Netherland, Sewell & Associates, Inc.1 Kutai West is regarded as one of the best and commercially most advanced of the more than 50 awarded CBM blocks in Indonesia. Kutai West is adjacent to the Sanga-Sanga PSC, where VICO (BP and partners) is commercially producing and selling CBM for power generation and gas to the nearby Bontang LNG facility. As VICO notes: 'This is the first time in Indonesia that any CBM facilities have produced and sold gas and represents a major milestone in the exploration of CBM potential.' Kutai West will produce from the same coal seams as at Sanga-Sanga. To date, the Company and its partners have drilled four CBM test wells on the block, verifying thick coal seams (average 105 ft) with high gas content (average 300 ft3/ton; dry, ash-free basis) and gas saturation (close to 100%), as well as 5- mD permeability. The KWCBM-01 well is currently being dewatered, venting produced gas from the flare stack, which is a key first step towards larger scale production. Management's main focus this year is to initiate commercial gas production at Kutai West with a 5-well pilot, followed by a larger commercial scale 25-well development (total 30 wells). To this end we have reached consensus with our partners to sell the produced gas to locally installed gas engine power generation units selling power into the PLN grid and later to feed gas into the gas-short Bontang LNG export network. Anticipated gas prices are USD8/Mcf or higher. Bontang exports LNG to Japan and other Asian rim importers, which are critically short of natural gas. Phase 1: Under Phase 1 four new CBM wells will be drilled near the existing KW-CBM01, forming an effective dewatering pilot on tight 40-acre spacing to accelerate gas production and demonstrate commerciality. Produced gas estimated at 2.0-2.5 MMcfd (gross) would be sold to a power station
  • 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 developer/operator and PLN for on-site power generation at about US$8/Mcf. The government of Indonesia strongly supports such commercialization prior to formal Plan of Development (POD) approval. Total capex for Phase 1 is estimated at US$7.16 million, comprising four wells at US$1.46 million/well cost (drilling & completion, water management, and surface facilities) plus US$1.32 million in engineering and overhead costs. An additional $200,000 would be required for field operating expenses during the first year. CBM Asia's share of the Phase 1 costs is estimated at US$2.15 million. The 10-MW power station would employ an array of 1- to 5-MW reciprocating engines; hundreds of such installations already are in operation throughout Indonesia. The power station would be independently owned and operated, with no capital required from CBM Asia. Drilling and completing the wells would require about two months, plus an additional four months to install and commission the power plant. An updated engineering audit would be conducted to certify proved and probable reserves, with an excellent chance of qualifying the project for low-cost Phase 2 project financing. Phase 2: Following success in Phase 1 and the approval of the Phase 2 POD, CBM Asia and its partners would utilize two rigs to drill an additional 25 wells (30 total) over a 7-month period. The increased production initially would supply the power station. Pending successful conclusion of a sales agreement, a 12-inch, 20-km pipeline would be constructed to the Badak compressor station by a third party under BOO basis and funded via an estimated $0.50/Mcf transport tariff. Total capex for phase 2 is estimated at US$36.3 million with CBM Asia's share of costs estimated at US$8.0 million. Production estimated at 12.5 MMcfd (gross) would be sold into the Bontang LNG export network at approximately US$8/Mcf or more. Note that Bontang is the world's second largest LNG plant (22.5 mtpa), shipping primarily to Japan, but local conventional gas supplies are in decline and the facility is currently operating at less than 60% of capacity. 'The Kutai West and Sekayu PSC's both have substantial engineered resources for commercialization, but Kutai West is most viable for near-term commercial development' noted President and CEO Charles Bloomquist. 'We are focusing our efforts on achieving commercial production and gas sales at the block as soon as possible, likely before the end of 2014. We estimate that with completion of the Phase 2 development CBM Asia will be operational cash flow positive. Jointly with its partners the Company has developed a technical plan and budget for the Kutai West commercial development and will post details in a new presentation on its website in the coming days.'
  • 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 Brent slips below $106 as Libya deal eases supply worries Manash Goswami - Reuters Brent crude prices fell below $106 a barrel on Monday, snapping a two-day winning streak, as worries about supply disruption eased after Libyan rebels occupying four eastern oil ports agreed to gradually end their eight-month old blockade. A major advance for the north African exporter, the end to the oil port standoff is taking some supply worries off the market that helped push prices to a high of $112 for the year. Investors are now waiting for details on the volume Libya will start shipping, while also assessing U.S. gasoline demand to gauge the outlook for oil. Brent crude dropped 77 cents to $105.95 a barrel by 0425 GMT, after ending the week 1.3 percent lower. U.S. oil declined 26 cents to $100.88, after posting its first weekly loss in three. "Oil, particularly Brent, will come under pressure only if Libyan exports rise above 1 million barrels per day (bpd)," said Tetsu Emori, a commodity fund manager at Astmax Investment. "If they are less than that, the downside will be limited." Libya's Zueitina and Hariga ports, held by federalist rebels demanding more autonomy from Tripoli, will open immediately while the larger ports, Ras Lanuf and Es Sider, will be freed in two to four weeks after more talks. Further losses in oil prices were, however, checked by data showing strong jobs growth in the United States. The jobs number added to a range of indicators from manufacturing and services sector activity to automobile sales that have signalled strength as the first quarter ended. The promising economic indicators are boosting expectations of strong gasoline sales as the world's top oil consumer, the United States, enters the peak summer driving season. PRICE OUTLOOK "We might see oil holding around these levels because peak winter demand has ended and the market is waiting to see what the summer gasoline demand will be like," Emori said. "The market wants to see if gasoline will offset the fall in heating oil demand." U.S. gasoline demand over the past four weeks was 3.8 percent higher than a year ago at 8.79 million bpd, the latest Energy Information Administration (EIA) data. Gasoline stocks fell 1.6 million barrels, compared with forecast for a 1.1-million-barrel drop, data showed. Investors are also watching the progress in talks between world powers and Iran on the Islamic Republic's nuclear programme. The United States dismissed suggestions that Iran was exporting much more oil than it is allowed to sell under a preliminary nuclear deal and predicted that aggregate Iranian oil sales would meet targets set for Tehran. The remarks from a senior U.S. official came ahead of a new round of senior-level negotiations between Iran and the United States, Britain, France, Germany, China and Russia in Vienna on April 8-9. Brent is expected to fall into a range of $104.08-$104.90 per barrel, while U.S. oil is expected to retrace more into a range of $100.15-$100.55, according to Reuters technical analyst Wang Tao.
  • 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 Singapore sees LNG trading hub ambition fulfilled after 2018 WRITTEN BY BLOOMBERG Singapore’s political neutrality and English-speaking workforce will help the city-state become an Asian hub for LNG trading, according to the government. “Singapore will become a LNG trading hub within the next five to 10 years,” Seah Moon Ming, chairman of government trade promotion agency IE Singapore, said in an interview on April 2. Singapore’s location, financial system and common law system will also boost its chances of becoming a regional center, he said. Singapore, Asia’s oil-trading center, has spent $1.7 billion on its first LNG terminal. Asia has overtaken Europe as the world’s biggest gas importer, accounting for 46% of global trade, according to the International Energy Agency, which cites Singapore as best-placed to be the hub for liquefied natural gas. The country has the only LNG terminal in Asia that can reload cargoes from storage, allowing traders to store gas during low-consumption periods before selling them during peak demand seasons. It is Southeast Asia’s largest receiving facility, with a capacity of 6 million metric tons a year. Global LNG demand Global LNG capacity and demand
  • 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 Saudi metro project kicks off in Riyadh – Reuters Saudi Arabia has begun construction work on its long awaited first metro rail system in Riyadh. The multi-billion project will involve six rail lines extending 176 kilometers and carrying electric, driverless trains, in what Saudi officials project to be the world's largest public transport system. Prince Khalid Bin Bandar, the Riyadh emir, attended a groundbreaking ceremony in the capital on Thursday to mark the first day of construction work. “On this blessed day we witness the start of works on the grounds of the metro project. The phase of research and planning is over and now it is time for implementation,” said Prince Khalid Bin Bandar. Saudi Arabia awarded $22.5 billion in contracts to three foreign-led consortia for the design and construction of the system. While the metro is unlikely to persuade some Saudis to abandon their love for the automobile, others may welcome the chance to escape severe traffic congestion in the capital. The new service will also enable lower-income individuals to head around the city
  • 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 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 ofofofof experience in theexperience in theexperience in theexperience in the Oil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working asOil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation forTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Mostthe GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof the experience were spent as the Gas Operationsof the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developedhas developedhas developedhas developed great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelof gas pipelof gas pipelof gas pipelines, gas metering & regulating stations and in the engineering of supplyines, gas metering & regulating stations and in the engineering of supplyines, gas metering & regulating stations and in the engineering of supplyines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs forOUs forOUs forOUs for the local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a referencethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE andfor many of the Oil & Gas Conferences held in the UAE and Energy program broadcastedEnergy program broadcastedEnergy program broadcastedEnergy program broadcasted internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels .... NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase 07 April 2014 K. Al Awadi M.D Zaidi SQ International www.sq-intl.com Tel: +92 21 34822200 Mob: +92 300 3482660