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NewBase Energy News 04 April 2024 No. 1713 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
OPEC+ keeps current output policy unchanged & Oil at $90/B
NewBase + Reuters
The participants of the 53rd Meeting of the Joint Ministerial Monitoring Committee (JMMC) of the
Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to keep current
oil production levels unchanged.
During the meeting which took place via videoconference today, the JMMC reviewed the crude oil
production data for the months of January and February 2024, noting to the high conformity for
participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC).
The Committee welcomed the Republic of Iraq and the Republic of Kazakhstan pledge to achieve
full conformity as well as compensate for overproduction. The Committee also welcomed the
announcement by the Russian Federation that its voluntary adjustments in the second quarter of
2024 will be based on production instead of exports.
ww.linkedin.com/in/khaled-al-awadi-80201019/
 Oil hold to gains as market monitors OPEC+ policy, geopolitical tensions
 Oil prices climb to five-month high on escalating Middle East tensions
 Oil Advances After OPEC+ Affirms Production Cuts Through June
 Oil Advances After OPEC+ Affirms Production Cuts Through June
Copyright © 2024 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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The JMMC stated that participating countries with outstanding overproduced volumes for the
months of January, February and March 2024, will submit their detailed compensation plans to the
OPEC Secretariat by 30th April 2024.
The Committee noted that it will continue to monitor the conformity of the production adjustments
decided upon at the 35th ONOMM held on 4th June 2023, and the additional voluntary production
adjustments announced by some participating OPEC and participating non-OPEC countries in April
2023, and the subsequent adjustments in November 2023 and February 2024.
The Committee further stated that it will continue to closely assess market conditions and noted the
willingness of the DoC countries to address market developments and their readiness to take
additional measures at any time building on the strong cohesion between OPEC and participating
non-OPEC oil-producing countries.
The next meeting of the JMMC (54th) is scheduled for 1st June 2024.
OPEC optimistic on global oil demand growth in 2024, 2025
Global oil demand growth is forecast to far outpace the expected rise in non-OPEC supply
over the next two years, OPEC said Jan. 17, as the producer group charts its course to
manage the market ahead.
HIGHLIGHTS
 Increase in oil demand far ahead of growth in non-OPEC supply
 Call on OPEC crude well above Dec production of 26.7 mil b/d
 OPEC releases first 2025 market outlook
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In its closely watched monthly oil market report, OPEC estimated the world's thirst for oil to increase
2.25 million b/d in 2024 and another 1.8 million b/d in 2025, on the back of a strengthening Chinese
economy.
Meanwhile, non-OPEC liquids production was expected to grow more slowly, at 1.34 million b/d in
2024 and 1.27 million b/d in 2025, with the US, Canada, Guyana and Brazil leading the gains.
Should the forecasts come to pass, that would leave OPEC in a strong position to influence prices,
as the call on OPEC crude -- the amount the bloc would have to pump to balance global supply with
demand -- is well above its current output, currently reined in through a series of production cuts.
OPEC estimated the call on its crude at 28.49 million b/d for 2024 and 28.96 million b/d for 2025,
above output of 26.7 million b/d in December 2023, according to secondary sources used by the
organization to monitor production.
strong economic forecasts
That came after a year in which global oil consumption exceeded supply by 640,000 b/d in 2023,
OPEC said in the report.
Despite its optimism, OPEC, alongside its allies in OPEC+, is maintaining a policy of aggressive
supply cuts for 2024.
Several members of the group, including Russia and Saudi Arabia, committed at a Nov. 30 meeting
to continue and deepen cuts in the first quarter of 2024. If adhered to, they would take an additional
700,000 b/d of supply off the market.
The move has failed to boost prices so far. Platts assessed Dated Brent at $79.89/b on Jan. 16,
below the assessment of $82.28/b on Nov. 29 -- the day before the latest cuts were announced.
OPEC kingpin Saudi Arabia reported December production of 8.944 million b/d, below its quota
under the OPEC+ accord of 8.98 million b/d.
2025 outlook
It was OPEC's first forecast of 2025 market fundamentals. It typically waits until July to begin
releasing its forecasts of the following year's outlook, but OPEC said it decided to move up its
reporting to offer more transparency and help guide policy for both consumers and producers.
The OPEC+ alliance is next scheduled to meet in Vienna June 1, though ministers have said they
could convene earlier, if needed, to adjust production quotas as market conditions warrant.
OPEC's positive demand growth projections are based on an expected economic growth of 2.8%
in 2025, compared to 2.6% in 2024, on declining inflation and expectations for key policy rates to
peak in the first half of 2024.
Despite some predictions of peak oil demand by the end of the decade, OPEC Secretary General
Haitham al-Ghais said in an article published Jan. 17 that there is no sign of this in short and mid-
term forecasts.
"There are many reasons behind this. For example, a pushback from populations comprehending
the implications of ambitious and unrealistic net zero policy agendas, policymakers reevaluating
their approach to energy transition pathways, and faster industrialization in developing countries,
where we are seeing the emergence of a larger middle class, an expansion in transport services,
and greater energy demand and access," he said.
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OPEC estimates that global demand will reach 116 million b/d by 2045.
There has been a spurt in attacks on oil supply infrastructure in the Middle East amid production
and supply risks linked to the war in Ukraine. However, OPEC said it did not see political and
geopolitical developments materially altering the momentum of growth.
On the supply side, it forecast non-OPEC upstream investment to drop to $473 billion in 2025 from
$482 billion in 2024 and $487 billion in 2023.
OPEC estimated OECD commercial oil stocks at 2.819 billion barrels as of November 2023, up 7.3
million barrels month on month. That included an increase in crude stocks of 17.5 million barrels
and a 10.2 million barrels fall in products stocks month on month.
November oil stock levels were 25 million barrels above November 2022 levels but 62 million barrels
lower than the latest five-year average, according to OPEC.
 Oil hold to gains as market monitors OPEC+ policy, geopolitical tensions
 Oil prices climb to five-month high on escalating Middle East tensions
 Oil Advances After OPEC+ Affirms Production Cuts Through June
 Oil Advances After OPEC+ Affirms Production Cuts Through June
Copyright © 2024 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 endeavors 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
Copyright © 2024 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 endeavors 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
UAE’s Masdar to host World Future Energy Summit on 16th April
(WAM)
Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy powerhouse, is
gearing up to host the World Future Energy Summit (WFES).
Taking place from 16th to 18th April at Abu Dhabi National Exhibition Centre (ADNEC), WFES is
the world’s leading business event for future energy, clean technology and sustainability, with a
packed programme of events, activations, discussions and forums.
The Masdar Pavilion at WFES will act as a hub for innovation, collaboration and knowledge sharing,
with its theatre featuring an engaging programme of panels and presentations, including forums by
Masdar’s global strategic initiatives, Y4S (Youth 4 Sustainability) and WiSER (Women in
Sustainability, Environment and Renewable Energy).
The Innovation Zone, hosted by Masdar, will feature a series of industry panels with innovators and
experts, focusing on the latest climate solutions. It will include technology showcases from ADSW
partners, international startups and SMEs across urban mobility, clean energy, agritech, and
artificial intelligence, and will officially launch the SME Day at WFES on 18th April to continue the
legacy of the COP28 SME Climate Hub initiative.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar
and COP28 President, said, “By delivering the UAE Consensus and the Action Agenda, COP28
raised the bar on climate action, but our work is just beginning. Now is the time to turn agreement
into action and accelerate our efforts to meet the ambitions of the UAE Consensus and keep 1.5 °C
within reach. The size of the problem demands we explore all avenues and all technologies,
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including artificial intelligence (AI). I encourage the energy industry to invest in Artificial Intelligence
and harness its climate potential. WFES provides a crucial platform for every stakeholder - including
governments, industry leaders and policymakers - to play their part and unlock the investments
needed to deliver the energy transition.”
Masdar will also host the annual Green
Hydrogen Summit on April 16, which aims to
accelerate the development of the global green
hydrogen economy to support the energy
transition. Highlighting green hydrogen’s
growing potential to support economies in
reaching net-zero emissions, the Green
Hydrogen Summit will bring together
policymakers, industry leaders, forward-thinking
investors and pioneering entrepreneurs.
Mohamed Jameel Al Ramahi, Masdar’s Chief
Executive Officer, said, “As a founding host and
longstanding supporter of the World Future
Energy Summit, Masdar looks forward to
working with global partners, leaders and innovators to address some of the world’s most pressing
climate challenges. From Masdar’s innovative pavilion programming to the Green Hydrogen
Summit, WFES is the ideal platform for us to showcase our commitment to advancing clean energy,
accelerating the energy transition in support of The UAE Consensus agreed at COP28.”
Masdar is aiming for a renewable energy portfolio capacity of 100GW by 2030, supporting the target
set in The UAE Consensus to triple global renewables capacity by the end of this decade, and aims
to be a leading producer of green hydrogen by the same year.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors 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
Saudi Aramco awards $7.7bn for Fadhili gas plant expansion
-TradeArabia News Service
Aramco, one of the world’s leading integrated energy and chemicals companies, on Tuesday
awarded engineering, procurement and construction (EPC) contracts worth $7.7 billion for a major
expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia.
The contracts for the Fadhili Gas Plant increment project were awarded to Samsung Engineering
Company, GS Engineering & Construction Corporation, and Nesma & Partners. The project is
expected to increase the plant’s processing capacity from 2.5 billion to up to 4 billion standard cubic
feet per day (bscfd).
This additional 1.5 bscfd of processing capacity is expected to contribute to the company’s strategy
to raise gas production by more than 60 per cent by 2030, compared to 2021 levels. The Fadhili
Gas Plant expansion, which is expected to be completed by November 2027, is also expected to
add an additional 2,300 metric tons per day to sulphur production.
Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said: “The award of these
contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce
greenhouse gas emissions, and free up more crude oil for value-added refining and export.
Together with leading international companies, we are advancing our goal to increase gas
production. The expansion also supports our ambitions to develop a lower-carbon hydrogen
business, while associated liquids from gas are an important feedstock for the petrochemical
industry.”
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Morocco: SDX Energy spuds BMK-2 well in the Rharb Basin,
Source: SDX Energy
SDX Energy has commenced drilling the Beni Malek-2 well ('BMK-2') in the Rharb Basin,
Morocco, approx. 1.5km from the BMK-1 discovery well. The BMK-2 well will be drilled to a planned
depth of approx. 1,470 metres and is targeting three stacked reservoirs in the Guebbas formation,
which have been identified using 3D seismic.
This well follows the success of the KSR-21 well drilled in September 2023 and is part of an ongoing
drilling campaign in Morocco. If BMK-2 is a success, the well will be completed and tied-in for
production as quickly as possible, to supplement existing production and, in particular, provide to
CITIC Dicastal, which is the Company's largest offtaker and has an immediate and increasing
demand for SDX's gas.
In Morocco, the Company is the sole independent gas producer and has ambitions to be a major
gas producer and works closely with its partner, Office National des Hydrocarbures et des Mines
('ONHYM') on all aspects of development and production. The gas from SDX's wells is sold to
multiple offtakers in the Kenitra industrial area.
The Beni Malek-2 well ('BMK-2') is located in the Gharb Occidental (Centre) permit. Map source: SDX Energy
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NewBase April 04 -2024 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices rise on concerns of lower supply, signs of U.S.
economic growth
Reuters + NewBase
Oil prices rose on Thursday on concerns of lower supply as major producers are keeping output
cuts in place and on signs of stronger economic growth in the U.S., the world's biggest oil consumer.
Brent futures for June rose 31 cents, or 0.4%, to $89.66 a barrel at 0443 GMT. U.S. West Texas
Intermediate (WTI) futures for May rose 30 cents, or 0.4%, to $85.73 a barrel.
A meeting of top ministers from the Organization of Petroleum Exporting Countries and its allies
(OPEC+) including Russia, kept oil supply policy unchanged on Wednesday and pressed some
countries to boost compliance with output cuts.
The group said some members would compensate for oversupply in the first quarter. It also said
Russia would switch to output rather than export curbs. Analysts at ING said oil prices continued to
edge higher after the meeting recommended no change to OPEC+ output policy.
Both the June Brent contract and the May WTI contract have risen for the past four days and closed
on Wednesday at the highest since the end of October.
Oil price special
coverage
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"Brent is facing some resistance at the US$90/bbl level, with it unable to break above it so far," the
ING analysts said. Also on Wednesday, Federal Reserve Chair Jerome Powell was cautious about
future interest rate cuts because of recent data showing higher-than-expected job growth and
inflation.
The comments were positive for oil because they indicated solid U.S. economic growth, said Rob
Haworth, senior investment strategist for U.S. Bank's asset management group. Oil's recent gains
have followed Ukrainian attacks on Russian refineries that cut fuel supply and concerns that the
Israel-Hamas war in Gaza may spread to include Iran, possibly disrupting supplies in the key Middle
East region.
Iran has vowed revenge against Israel for an attack on Monday that killed high-ranking Iranian
military personnel. Iran is the third-largest producer in OPEC.
"While this (OPEC+ decision) was widely expected, it provides some assurance that the recent rise
in tension in the Middle East has not altered the group's view on the market," ANZ analysts said in
a note on Thursday.
Oil Advances Near $90 as OPEC Sticks With Its Production Cuts
(Bloomberg) -- Oil climbed, extending a rally that has brought prices to a five-month high, after
OPEC+ ministers affirmed current supply cuts.
Brent crude edged toward $90 a barrel after OPEC and its allies didn’t recommend any changes to
their existing output cuts at an online ministerial review meeting on Wednesday. The move means
roughly 2 million barrels a day of curbs will be in place until the end of June.
In the US, a government report showed nationwide crude stockpiles rose 3.21 million barrels last
week, contrasting with an industry group’s projection of a drop in inventories. The official US figures
showed a decline in gasoline stockpiles.
Still, bullishness is showing up beyond front-month futures prices, with oil options traders
increasingly looking to protect against rising prices. Brent’s second-month options skew has flipped
from its usual put skew — favored by producers seeking to protect against price drops — to a bias
toward calls. That comes as time spreads move further into backwardation, another indicator of
strength.
Crude has pushed higher this year, with Ukrainian attacks on Russian energy infrastructure and
Middle East tensions supporting prices.
OPEC+’s curbs have been tightening the
market, while there have been patches of
disruption elsewhere, including an early-year
deep freeze in the US and a recent curb to
exports by Mexico.
However, the recent surge in prices is already
drawing the ire of major consumers. A top
Indian oil official said on Wednesday that the
recent gain was causing anxiety and that
companies would have to act if higher prices
are sustained.
Copyright © 2024 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Specual Coverage
The Energy world –April 04 -2024
CLEAN ENERGY
U.S. petroleum product exports set another record high in 2023
source: U.S. Energy Information Administration, Petroleum Supply Monthly
Petroleum product exports from the United States averaged a record 6.1 million barrels per day
(b/d) in 2023, a 2.5% increase from 2022, according to our Petroleum Supply Monthly. Propane
drove the growth in U.S. petroleum product exports, offsetting decreases in gasoline and distillate
exports.
source: U.S. Energy Information Administration, Petroleum Supply Monthly
Note: Total motor gasoline includes finished motor gasoline and gasoline blending components.
HGLs=hydrocarbon gas liquids
Growing 14% in 2023, U.S.
propane exports averaged 1.6
million b/d in 2023, establishing an
annual record high. Propane
exports made up 26% of all U.S.
petroleum product exports, more
than any other petroleum product.
Propane is consumed globally for
space heating and is increasingly
used as a petrochemical feedstock
in East Asia.
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Note: Mexico accounts for 97% of all U.S. propane exports to North America, and the remainder goes to Canada.
Propane consumption as a petrochemical feedstock has been driven by propylene production in
East Asia. Propylene is a base chemical used to manufacture polypropylene, a fiber used to make
car interiors, packaging, and personal protective equipment.
Annual U.S. propane exports to Asia rose 27% (204,000 b/d) in 2023 compared with 2022. Most
U.S. propane exports to Asia went to Japan, South Korea, and China. China accounted for the most
growth in U.S. propane exports to Asia, increasing by 50% (72,000 b/d) in 2023.
Distillate fuel has been the second-highest U.S. petroleum product export since 2020, after propane.
In 2023, U.S. exports of distillate fuel oil decreased by 8% to 1.1 million b/d. The United States
typically exports more distillate fuel to Central America and South America than to any other region,
which was true in 2023, when the region accounted for 54% of all U.S. distillate exports.
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Despite the region’s top ranking, U.S. exports of distillate to the region were 23% lower in 2023
compared with 2022, decreasing to 602,000 b/d, the lowest since 2015. Mexico remained the top
destination country in 2023, when U.S. exports of distillate averaged 291,000 b/d.
U.S. distillate exports to Brazil declined more than to any other country in 2023, driving the drop in
exports to Central America and South America. U.S. distillate exports to Brazil fell 67%, from
136,000 b/d in 2022 to 45,000 b/d in 2023.
Trade press reports indicate that Brazil increased distillate imports from Russia. Russia has been
looking for destinations outside of Europe to export its oil. Partially offsetting decreasing exports to
Brazil, U.S. exports of distillate to the Netherlands grew more than to any other country, rising from
36,000 b/d in 2022 to 62,000 b/d in 2023.
In 2023, total gasoline exports (including finished motor gasoline and motor gasoline blending
components) decreased 5% from 2022 and averaged 900,000 b/d. Most U.S. gasoline exports go
to Mexico, which was the destination for 56% of all U.S. gasoline exports in 2023. U.S. gasoline
exports to Mexico remained essentially flat in 2023, dropping less than 1% and averaging 502,000
b/d.
Exports to Brazil fell more than to any other country in 2023, declining 74% (28,000 b/d) compared
with 2022. However, overall volumes were relatively small; only 1% of U.S gasoline exports went to
Brazil.
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The U.S is the world’s largest liquefied natural gas exporter
Data source: U.S. Energy Information Administration, Natural Gas Monthly, Cedigaz
The United States exported more liquefied natural gas (LNG) than any other country in 2023. U.S.
LNG exports averaged 11.9 billion cubic feet per day (Bcf/d)—a 12% increase (1.3 Bcf/d) compared
with 2022, according to data from our Natural Gas Monthly.
LNG exports from Australia and Qatar—the world’s two other largest LNG exporters—each ranged
from 10.1 Bcf/d to 10.5 Bcf/d annually between 2020 and 2023, according to data from Cedigaz.
Russia and Malaysia were the fourth- and fifth-highest LNG exporters globally over the last five
years (2019–23). In 2023, LNG exports from Russia averaged 4.2 Bcf/d, and exports from Malaysia
average 3.5 Bcf/d.
U.S. LNG exports increased in the first half of 2023 after Freeport LNG returned to service in
February and ramped up to full production by April. Relatively strong demand for LNG
in Europe amid high international natural gas prices supported increased U.S. LNG exports during
the year. U.S. LNG exports set monthly records late last year: 12.9 Bcf/d in November, followed by
13.6 Bcf/d in December. We estimate that utilization of U.S. LNG export capacity averaged 104%
of nominal capacity and 86% of peak capacity across the seven U.S. LNG terminals operating in
2023.
Similar to 2022, Europe (including Türkiye) remained the primary destination for U.S. LNG exports
in 2023, accounting for 66% (7.8 Bcf/d) of U.S. exports, followed by Asia at 26% (3.1 Bcf/d) and
Latin America and the Middle East with a combined 8% (0.9 Bcf/d).
In 2023, Europe (EU-27 and the UK) continued to import LNG to compensate for the loss of natural
gas previously supplied by pipeline from Russia. Europe’s LNG imports capacity continued to
expand, and we expect it will increase by more than one-third between 2021 and 2024.
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The countries that imported the most U.S. LNG were the Netherlands, France, and the UK, with a
combined 35% (4.2 Bcf/d) of all U.S. LNG exports. LNG imports increased in the Netherlands
after the Gate LNG regasification terminal was expanded and two new floating storage and
regasification units (FSRUs) were commissioned.
. Germany began importing LNG in 2023 when three new FSRUs were commissioned. We expect
another four terminals (three of which are FSRUs) to come online between 2024 and 2027.
In Asia, Japan and South Korea each received 0.8 Bcf/d of LNG exports from the United States, the
fourth- and fifth-highest U.S. LNG export volumes by country in 2023. Japan, China, and India
increased LNG imports from the United States by a combined 0.6 Bcf/d compared with 2022. The
Philippines and Vietnam started importing LNG in 2023; the Philippines imported LNG cargoes from
the United States only in October and November.
In Latin America, U.S. LNG exports to Brazil continued to decline last year as Brazil continued to
primarily use hydropower for electricity generation. U.S. LNG exports to Brazil peaked in 2021,
when the country experienced its worst drought in more than 90 years.
Data source: U.S. Energy Information Administration, Natural Gas Monthly
Note: Percentages shown denote year-on-year change in U.S. export volumes. Europe includes
Türkiye.
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U.S. ethane production, consumption, and exports set records
source: U.S. Energy Information Administration, Petroleum Supply Monthly
U.S. ethane production, consumption, and exports established new record highs in 2023, according
to data from our Petroleum Supply Monthly. Continued growth in ethane consumption in the global
petrochemical sector and rising ethane recovery associated with natural gas production drove these
increases.
U.S. ethane production rose 9% to average 2.6 million barrels per day (b/d) in 2023, driven
by record natural gas production. In the United States, almost all ethane is recovered at natural gas
processing plants, which remove ethane and other natural gas plant liquids (NGPL) from raw natural
gas.
The Texas Inland and New Mexico refining districts, which span the Permian Basin, accounted for
61% of all U.S. ethane production in 2023. Production in those districts averaged 1.6 million b/d in
2023, about the same as in 2022.
Production in the Appalachian No. 1 Refining District, which straddles most of the Appalachian Basin
production area in Pennsylvania and West Virginia, accounted for 11% of total U.S. ethane
production, also nearly the same as in 2022.
Domestic ethane consumption, measured as product supplied, rose 5% in 2023 to 2.1 million b/d.
In the United States, ethane is consumed almost exclusively in the petrochemical industry as a
feedstock.
Two new petrochemical crackers, located in Port Arthur, Texas, and in Monaca, Pennsylvania,
ramped up operations in 2023 after coming on line in late 2022. Ethane consumption in the Gulf
Coast (PADD 3), where most crackers are located, increased 4% from 2022 to 2.0 million b/d.
Copyright © 2024 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 endeavors 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 18
Ethane consumption on the East Coast (PADD 1) more than doubled, averaging 38,000 b/d in 2023,
a 22,000 b/d increase from 2022.
U.S. ethane exports averaged a record 471,000 b/d during 2023, a 57,000-barrel increase from the
previous record set the year before. Strong ethane exports were driven by growth in global
petrochemical sector demand and rising tanker capacity.
Low prices for U.S. ethane compared with other feedstocks globally contributed to the record
exports. China imported 45% of U.S. ethane exports in 2023, followed by India (16%), Canada
(14%), and Norway (10%).
Data source: Bloomberg, L.P., and Natural Gas Intelligence
Note: The Houston Ship Channel is the closest natural gas pricing hub to the Mont Belvieu NGPL
pricing hub. NGPL=natural gas plant liquids.
U.S. ethane prices at Mont Belvieu, Texas, the main pricing hub for NGPLs, were volatile throughout
2023. Ethane prices averaged under 25 cents per gallon (gal) for the year but briefly rose close to
39 cents/gal ($5.89 per million British thermal units) in mid-July.
Ethane prices fell below 18 cents/gal in the last week of the year due to lower natural gas prices.
When ethane prices are low relative to natural gas prices, plant operators can leave more ethane
in the natural gas stream to be sold in natural gas markets.
In our March 2024 Short-Term Energy Outlook (STEO), we forecast that U.S. ethane production will
rise to average 2.7 million b/d in 2024 and 2.8 million b/d in 2025. U.S. ethane consumption will rise
to average 2.2 million b/d in 2024 and 2.3 million b/d in 2025, and exports will remain flat at an
average of 500,000 b/d in 2024 and 490,000 b/d in 2025.
Copyright © 2024 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 endeavors 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 19
NewBase Energy News 04- April - Issue No. 1704 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.
Copyright © 2024 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 endeavors 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 20

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NewBase 04 April 2024 Energy News issue - 1713 by Khaled Al Awadi_compressed.pdf

  • 1. Copyright © 2024 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 endeavors 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 Energy News 04 April 2024 No. 1713 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE OPEC+ keeps current output policy unchanged & Oil at $90/B NewBase + Reuters The participants of the 53rd Meeting of the Joint Ministerial Monitoring Committee (JMMC) of the Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to keep current oil production levels unchanged. During the meeting which took place via videoconference today, the JMMC reviewed the crude oil production data for the months of January and February 2024, noting to the high conformity for participating OPEC and non-OPEC countries of the Declaration of Cooperation (DoC). The Committee welcomed the Republic of Iraq and the Republic of Kazakhstan pledge to achieve full conformity as well as compensate for overproduction. The Committee also welcomed the announcement by the Russian Federation that its voluntary adjustments in the second quarter of 2024 will be based on production instead of exports. ww.linkedin.com/in/khaled-al-awadi-80201019/  Oil hold to gains as market monitors OPEC+ policy, geopolitical tensions  Oil prices climb to five-month high on escalating Middle East tensions  Oil Advances After OPEC+ Affirms Production Cuts Through June  Oil Advances After OPEC+ Affirms Production Cuts Through June
  • 2. Copyright © 2024 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 endeavors 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 The JMMC stated that participating countries with outstanding overproduced volumes for the months of January, February and March 2024, will submit their detailed compensation plans to the OPEC Secretariat by 30th April 2024. The Committee noted that it will continue to monitor the conformity of the production adjustments decided upon at the 35th ONOMM held on 4th June 2023, and the additional voluntary production adjustments announced by some participating OPEC and participating non-OPEC countries in April 2023, and the subsequent adjustments in November 2023 and February 2024. The Committee further stated that it will continue to closely assess market conditions and noted the willingness of the DoC countries to address market developments and their readiness to take additional measures at any time building on the strong cohesion between OPEC and participating non-OPEC oil-producing countries. The next meeting of the JMMC (54th) is scheduled for 1st June 2024. OPEC optimistic on global oil demand growth in 2024, 2025 Global oil demand growth is forecast to far outpace the expected rise in non-OPEC supply over the next two years, OPEC said Jan. 17, as the producer group charts its course to manage the market ahead. HIGHLIGHTS  Increase in oil demand far ahead of growth in non-OPEC supply  Call on OPEC crude well above Dec production of 26.7 mil b/d  OPEC releases first 2025 market outlook
  • 3. Copyright © 2024 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 endeavors 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 In its closely watched monthly oil market report, OPEC estimated the world's thirst for oil to increase 2.25 million b/d in 2024 and another 1.8 million b/d in 2025, on the back of a strengthening Chinese economy. Meanwhile, non-OPEC liquids production was expected to grow more slowly, at 1.34 million b/d in 2024 and 1.27 million b/d in 2025, with the US, Canada, Guyana and Brazil leading the gains. Should the forecasts come to pass, that would leave OPEC in a strong position to influence prices, as the call on OPEC crude -- the amount the bloc would have to pump to balance global supply with demand -- is well above its current output, currently reined in through a series of production cuts. OPEC estimated the call on its crude at 28.49 million b/d for 2024 and 28.96 million b/d for 2025, above output of 26.7 million b/d in December 2023, according to secondary sources used by the organization to monitor production. strong economic forecasts That came after a year in which global oil consumption exceeded supply by 640,000 b/d in 2023, OPEC said in the report. Despite its optimism, OPEC, alongside its allies in OPEC+, is maintaining a policy of aggressive supply cuts for 2024. Several members of the group, including Russia and Saudi Arabia, committed at a Nov. 30 meeting to continue and deepen cuts in the first quarter of 2024. If adhered to, they would take an additional 700,000 b/d of supply off the market. The move has failed to boost prices so far. Platts assessed Dated Brent at $79.89/b on Jan. 16, below the assessment of $82.28/b on Nov. 29 -- the day before the latest cuts were announced. OPEC kingpin Saudi Arabia reported December production of 8.944 million b/d, below its quota under the OPEC+ accord of 8.98 million b/d. 2025 outlook It was OPEC's first forecast of 2025 market fundamentals. It typically waits until July to begin releasing its forecasts of the following year's outlook, but OPEC said it decided to move up its reporting to offer more transparency and help guide policy for both consumers and producers. The OPEC+ alliance is next scheduled to meet in Vienna June 1, though ministers have said they could convene earlier, if needed, to adjust production quotas as market conditions warrant. OPEC's positive demand growth projections are based on an expected economic growth of 2.8% in 2025, compared to 2.6% in 2024, on declining inflation and expectations for key policy rates to peak in the first half of 2024. Despite some predictions of peak oil demand by the end of the decade, OPEC Secretary General Haitham al-Ghais said in an article published Jan. 17 that there is no sign of this in short and mid- term forecasts. "There are many reasons behind this. For example, a pushback from populations comprehending the implications of ambitious and unrealistic net zero policy agendas, policymakers reevaluating their approach to energy transition pathways, and faster industrialization in developing countries, where we are seeing the emergence of a larger middle class, an expansion in transport services, and greater energy demand and access," he said.
  • 4. Copyright © 2024 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 endeavors 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 OPEC estimates that global demand will reach 116 million b/d by 2045. There has been a spurt in attacks on oil supply infrastructure in the Middle East amid production and supply risks linked to the war in Ukraine. However, OPEC said it did not see political and geopolitical developments materially altering the momentum of growth. On the supply side, it forecast non-OPEC upstream investment to drop to $473 billion in 2025 from $482 billion in 2024 and $487 billion in 2023. OPEC estimated OECD commercial oil stocks at 2.819 billion barrels as of November 2023, up 7.3 million barrels month on month. That included an increase in crude stocks of 17.5 million barrels and a 10.2 million barrels fall in products stocks month on month. November oil stock levels were 25 million barrels above November 2022 levels but 62 million barrels lower than the latest five-year average, according to OPEC.  Oil hold to gains as market monitors OPEC+ policy, geopolitical tensions  Oil prices climb to five-month high on escalating Middle East tensions  Oil Advances After OPEC+ Affirms Production Cuts Through June  Oil Advances After OPEC+ Affirms Production Cuts Through June
  • 5. Copyright © 2024 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 endeavors 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
  • 6. Copyright © 2024 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 endeavors 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 UAE’s Masdar to host World Future Energy Summit on 16th April (WAM) Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy powerhouse, is gearing up to host the World Future Energy Summit (WFES). Taking place from 16th to 18th April at Abu Dhabi National Exhibition Centre (ADNEC), WFES is the world’s leading business event for future energy, clean technology and sustainability, with a packed programme of events, activations, discussions and forums. The Masdar Pavilion at WFES will act as a hub for innovation, collaboration and knowledge sharing, with its theatre featuring an engaging programme of panels and presentations, including forums by Masdar’s global strategic initiatives, Y4S (Youth 4 Sustainability) and WiSER (Women in Sustainability, Environment and Renewable Energy). The Innovation Zone, hosted by Masdar, will feature a series of industry panels with innovators and experts, focusing on the latest climate solutions. It will include technology showcases from ADSW partners, international startups and SMEs across urban mobility, clean energy, agritech, and artificial intelligence, and will officially launch the SME Day at WFES on 18th April to continue the legacy of the COP28 SME Climate Hub initiative. Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said, “By delivering the UAE Consensus and the Action Agenda, COP28 raised the bar on climate action, but our work is just beginning. Now is the time to turn agreement into action and accelerate our efforts to meet the ambitions of the UAE Consensus and keep 1.5 °C within reach. The size of the problem demands we explore all avenues and all technologies,
  • 7. Copyright © 2024 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 endeavors 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 including artificial intelligence (AI). I encourage the energy industry to invest in Artificial Intelligence and harness its climate potential. WFES provides a crucial platform for every stakeholder - including governments, industry leaders and policymakers - to play their part and unlock the investments needed to deliver the energy transition.” Masdar will also host the annual Green Hydrogen Summit on April 16, which aims to accelerate the development of the global green hydrogen economy to support the energy transition. Highlighting green hydrogen’s growing potential to support economies in reaching net-zero emissions, the Green Hydrogen Summit will bring together policymakers, industry leaders, forward-thinking investors and pioneering entrepreneurs. Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, said, “As a founding host and longstanding supporter of the World Future Energy Summit, Masdar looks forward to working with global partners, leaders and innovators to address some of the world’s most pressing climate challenges. From Masdar’s innovative pavilion programming to the Green Hydrogen Summit, WFES is the ideal platform for us to showcase our commitment to advancing clean energy, accelerating the energy transition in support of The UAE Consensus agreed at COP28.” Masdar is aiming for a renewable energy portfolio capacity of 100GW by 2030, supporting the target set in The UAE Consensus to triple global renewables capacity by the end of this decade, and aims to be a leading producer of green hydrogen by the same year.
  • 8. Copyright © 2024 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 endeavors 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 Saudi Aramco awards $7.7bn for Fadhili gas plant expansion -TradeArabia News Service Aramco, one of the world’s leading integrated energy and chemicals companies, on Tuesday awarded engineering, procurement and construction (EPC) contracts worth $7.7 billion for a major expansion of its Fadhili Gas Plant in the Eastern Province of Saudi Arabia. The contracts for the Fadhili Gas Plant increment project were awarded to Samsung Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners. The project is expected to increase the plant’s processing capacity from 2.5 billion to up to 4 billion standard cubic feet per day (bscfd). This additional 1.5 bscfd of processing capacity is expected to contribute to the company’s strategy to raise gas production by more than 60 per cent by 2030, compared to 2021 levels. The Fadhili Gas Plant expansion, which is expected to be completed by November 2027, is also expected to add an additional 2,300 metric tons per day to sulphur production. Wail Al Jaafari, Aramco Executive Vice President of Technical Services, said: “The award of these contracts reflects Aramco’s goal to increase supplies of natural gas, help efforts to reduce greenhouse gas emissions, and free up more crude oil for value-added refining and export. Together with leading international companies, we are advancing our goal to increase gas production. The expansion also supports our ambitions to develop a lower-carbon hydrogen business, while associated liquids from gas are an important feedstock for the petrochemical industry.”
  • 9. Copyright © 2024 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 endeavors 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 Morocco: SDX Energy spuds BMK-2 well in the Rharb Basin, Source: SDX Energy SDX Energy has commenced drilling the Beni Malek-2 well ('BMK-2') in the Rharb Basin, Morocco, approx. 1.5km from the BMK-1 discovery well. The BMK-2 well will be drilled to a planned depth of approx. 1,470 metres and is targeting three stacked reservoirs in the Guebbas formation, which have been identified using 3D seismic. This well follows the success of the KSR-21 well drilled in September 2023 and is part of an ongoing drilling campaign in Morocco. If BMK-2 is a success, the well will be completed and tied-in for production as quickly as possible, to supplement existing production and, in particular, provide to CITIC Dicastal, which is the Company's largest offtaker and has an immediate and increasing demand for SDX's gas. In Morocco, the Company is the sole independent gas producer and has ambitions to be a major gas producer and works closely with its partner, Office National des Hydrocarbures et des Mines ('ONHYM') on all aspects of development and production. The gas from SDX's wells is sold to multiple offtakers in the Kenitra industrial area. The Beni Malek-2 well ('BMK-2') is located in the Gharb Occidental (Centre) permit. Map source: SDX Energy
  • 10. Copyright © 2024 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 endeavors 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 NewBase April 04 -2024 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil prices rise on concerns of lower supply, signs of U.S. economic growth Reuters + NewBase Oil prices rose on Thursday on concerns of lower supply as major producers are keeping output cuts in place and on signs of stronger economic growth in the U.S., the world's biggest oil consumer. Brent futures for June rose 31 cents, or 0.4%, to $89.66 a barrel at 0443 GMT. U.S. West Texas Intermediate (WTI) futures for May rose 30 cents, or 0.4%, to $85.73 a barrel. A meeting of top ministers from the Organization of Petroleum Exporting Countries and its allies (OPEC+) including Russia, kept oil supply policy unchanged on Wednesday and pressed some countries to boost compliance with output cuts. The group said some members would compensate for oversupply in the first quarter. It also said Russia would switch to output rather than export curbs. Analysts at ING said oil prices continued to edge higher after the meeting recommended no change to OPEC+ output policy. Both the June Brent contract and the May WTI contract have risen for the past four days and closed on Wednesday at the highest since the end of October. Oil price special coverage
  • 11. Copyright © 2024 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 endeavors 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 is facing some resistance at the US$90/bbl level, with it unable to break above it so far," the ING analysts said. Also on Wednesday, Federal Reserve Chair Jerome Powell was cautious about future interest rate cuts because of recent data showing higher-than-expected job growth and inflation. The comments were positive for oil because they indicated solid U.S. economic growth, said Rob Haworth, senior investment strategist for U.S. Bank's asset management group. Oil's recent gains have followed Ukrainian attacks on Russian refineries that cut fuel supply and concerns that the Israel-Hamas war in Gaza may spread to include Iran, possibly disrupting supplies in the key Middle East region. Iran has vowed revenge against Israel for an attack on Monday that killed high-ranking Iranian military personnel. Iran is the third-largest producer in OPEC. "While this (OPEC+ decision) was widely expected, it provides some assurance that the recent rise in tension in the Middle East has not altered the group's view on the market," ANZ analysts said in a note on Thursday. Oil Advances Near $90 as OPEC Sticks With Its Production Cuts (Bloomberg) -- Oil climbed, extending a rally that has brought prices to a five-month high, after OPEC+ ministers affirmed current supply cuts. Brent crude edged toward $90 a barrel after OPEC and its allies didn’t recommend any changes to their existing output cuts at an online ministerial review meeting on Wednesday. The move means roughly 2 million barrels a day of curbs will be in place until the end of June. In the US, a government report showed nationwide crude stockpiles rose 3.21 million barrels last week, contrasting with an industry group’s projection of a drop in inventories. The official US figures showed a decline in gasoline stockpiles. Still, bullishness is showing up beyond front-month futures prices, with oil options traders increasingly looking to protect against rising prices. Brent’s second-month options skew has flipped from its usual put skew — favored by producers seeking to protect against price drops — to a bias toward calls. That comes as time spreads move further into backwardation, another indicator of strength. Crude has pushed higher this year, with Ukrainian attacks on Russian energy infrastructure and Middle East tensions supporting prices. OPEC+’s curbs have been tightening the market, while there have been patches of disruption elsewhere, including an early-year deep freeze in the US and a recent curb to exports by Mexico. However, the recent surge in prices is already drawing the ire of major consumers. A top Indian oil official said on Wednesday that the recent gain was causing anxiety and that companies would have to act if higher prices are sustained.
  • 12. Copyright © 2024 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 endeavors 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 NewBase Specual Coverage The Energy world –April 04 -2024 CLEAN ENERGY U.S. petroleum product exports set another record high in 2023 source: U.S. Energy Information Administration, Petroleum Supply Monthly Petroleum product exports from the United States averaged a record 6.1 million barrels per day (b/d) in 2023, a 2.5% increase from 2022, according to our Petroleum Supply Monthly. Propane drove the growth in U.S. petroleum product exports, offsetting decreases in gasoline and distillate exports. source: U.S. Energy Information Administration, Petroleum Supply Monthly Note: Total motor gasoline includes finished motor gasoline and gasoline blending components. HGLs=hydrocarbon gas liquids Growing 14% in 2023, U.S. propane exports averaged 1.6 million b/d in 2023, establishing an annual record high. Propane exports made up 26% of all U.S. petroleum product exports, more than any other petroleum product. Propane is consumed globally for space heating and is increasingly used as a petrochemical feedstock in East Asia.
  • 13. Copyright © 2024 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 endeavors 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 Note: Mexico accounts for 97% of all U.S. propane exports to North America, and the remainder goes to Canada. Propane consumption as a petrochemical feedstock has been driven by propylene production in East Asia. Propylene is a base chemical used to manufacture polypropylene, a fiber used to make car interiors, packaging, and personal protective equipment. Annual U.S. propane exports to Asia rose 27% (204,000 b/d) in 2023 compared with 2022. Most U.S. propane exports to Asia went to Japan, South Korea, and China. China accounted for the most growth in U.S. propane exports to Asia, increasing by 50% (72,000 b/d) in 2023. Distillate fuel has been the second-highest U.S. petroleum product export since 2020, after propane. In 2023, U.S. exports of distillate fuel oil decreased by 8% to 1.1 million b/d. The United States typically exports more distillate fuel to Central America and South America than to any other region, which was true in 2023, when the region accounted for 54% of all U.S. distillate exports.
  • 14. Copyright © 2024 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 endeavors 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 Despite the region’s top ranking, U.S. exports of distillate to the region were 23% lower in 2023 compared with 2022, decreasing to 602,000 b/d, the lowest since 2015. Mexico remained the top destination country in 2023, when U.S. exports of distillate averaged 291,000 b/d. U.S. distillate exports to Brazil declined more than to any other country in 2023, driving the drop in exports to Central America and South America. U.S. distillate exports to Brazil fell 67%, from 136,000 b/d in 2022 to 45,000 b/d in 2023. Trade press reports indicate that Brazil increased distillate imports from Russia. Russia has been looking for destinations outside of Europe to export its oil. Partially offsetting decreasing exports to Brazil, U.S. exports of distillate to the Netherlands grew more than to any other country, rising from 36,000 b/d in 2022 to 62,000 b/d in 2023. In 2023, total gasoline exports (including finished motor gasoline and motor gasoline blending components) decreased 5% from 2022 and averaged 900,000 b/d. Most U.S. gasoline exports go to Mexico, which was the destination for 56% of all U.S. gasoline exports in 2023. U.S. gasoline exports to Mexico remained essentially flat in 2023, dropping less than 1% and averaging 502,000 b/d. Exports to Brazil fell more than to any other country in 2023, declining 74% (28,000 b/d) compared with 2022. However, overall volumes were relatively small; only 1% of U.S gasoline exports went to Brazil.
  • 15. Copyright © 2024 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 endeavors 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 The U.S is the world’s largest liquefied natural gas exporter Data source: U.S. Energy Information Administration, Natural Gas Monthly, Cedigaz The United States exported more liquefied natural gas (LNG) than any other country in 2023. U.S. LNG exports averaged 11.9 billion cubic feet per day (Bcf/d)—a 12% increase (1.3 Bcf/d) compared with 2022, according to data from our Natural Gas Monthly. LNG exports from Australia and Qatar—the world’s two other largest LNG exporters—each ranged from 10.1 Bcf/d to 10.5 Bcf/d annually between 2020 and 2023, according to data from Cedigaz. Russia and Malaysia were the fourth- and fifth-highest LNG exporters globally over the last five years (2019–23). In 2023, LNG exports from Russia averaged 4.2 Bcf/d, and exports from Malaysia average 3.5 Bcf/d. U.S. LNG exports increased in the first half of 2023 after Freeport LNG returned to service in February and ramped up to full production by April. Relatively strong demand for LNG in Europe amid high international natural gas prices supported increased U.S. LNG exports during the year. U.S. LNG exports set monthly records late last year: 12.9 Bcf/d in November, followed by 13.6 Bcf/d in December. We estimate that utilization of U.S. LNG export capacity averaged 104% of nominal capacity and 86% of peak capacity across the seven U.S. LNG terminals operating in 2023. Similar to 2022, Europe (including Türkiye) remained the primary destination for U.S. LNG exports in 2023, accounting for 66% (7.8 Bcf/d) of U.S. exports, followed by Asia at 26% (3.1 Bcf/d) and Latin America and the Middle East with a combined 8% (0.9 Bcf/d). In 2023, Europe (EU-27 and the UK) continued to import LNG to compensate for the loss of natural gas previously supplied by pipeline from Russia. Europe’s LNG imports capacity continued to expand, and we expect it will increase by more than one-third between 2021 and 2024.
  • 16. Copyright © 2024 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 endeavors 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 16 The countries that imported the most U.S. LNG were the Netherlands, France, and the UK, with a combined 35% (4.2 Bcf/d) of all U.S. LNG exports. LNG imports increased in the Netherlands after the Gate LNG regasification terminal was expanded and two new floating storage and regasification units (FSRUs) were commissioned. . Germany began importing LNG in 2023 when three new FSRUs were commissioned. We expect another four terminals (three of which are FSRUs) to come online between 2024 and 2027. In Asia, Japan and South Korea each received 0.8 Bcf/d of LNG exports from the United States, the fourth- and fifth-highest U.S. LNG export volumes by country in 2023. Japan, China, and India increased LNG imports from the United States by a combined 0.6 Bcf/d compared with 2022. The Philippines and Vietnam started importing LNG in 2023; the Philippines imported LNG cargoes from the United States only in October and November. In Latin America, U.S. LNG exports to Brazil continued to decline last year as Brazil continued to primarily use hydropower for electricity generation. U.S. LNG exports to Brazil peaked in 2021, when the country experienced its worst drought in more than 90 years. Data source: U.S. Energy Information Administration, Natural Gas Monthly Note: Percentages shown denote year-on-year change in U.S. export volumes. Europe includes Türkiye.
  • 17. Copyright © 2024 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 endeavors 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 17 U.S. ethane production, consumption, and exports set records source: U.S. Energy Information Administration, Petroleum Supply Monthly U.S. ethane production, consumption, and exports established new record highs in 2023, according to data from our Petroleum Supply Monthly. Continued growth in ethane consumption in the global petrochemical sector and rising ethane recovery associated with natural gas production drove these increases. U.S. ethane production rose 9% to average 2.6 million barrels per day (b/d) in 2023, driven by record natural gas production. In the United States, almost all ethane is recovered at natural gas processing plants, which remove ethane and other natural gas plant liquids (NGPL) from raw natural gas. The Texas Inland and New Mexico refining districts, which span the Permian Basin, accounted for 61% of all U.S. ethane production in 2023. Production in those districts averaged 1.6 million b/d in 2023, about the same as in 2022. Production in the Appalachian No. 1 Refining District, which straddles most of the Appalachian Basin production area in Pennsylvania and West Virginia, accounted for 11% of total U.S. ethane production, also nearly the same as in 2022. Domestic ethane consumption, measured as product supplied, rose 5% in 2023 to 2.1 million b/d. In the United States, ethane is consumed almost exclusively in the petrochemical industry as a feedstock. Two new petrochemical crackers, located in Port Arthur, Texas, and in Monaca, Pennsylvania, ramped up operations in 2023 after coming on line in late 2022. Ethane consumption in the Gulf Coast (PADD 3), where most crackers are located, increased 4% from 2022 to 2.0 million b/d.
  • 18. Copyright © 2024 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 endeavors 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 18 Ethane consumption on the East Coast (PADD 1) more than doubled, averaging 38,000 b/d in 2023, a 22,000 b/d increase from 2022. U.S. ethane exports averaged a record 471,000 b/d during 2023, a 57,000-barrel increase from the previous record set the year before. Strong ethane exports were driven by growth in global petrochemical sector demand and rising tanker capacity. Low prices for U.S. ethane compared with other feedstocks globally contributed to the record exports. China imported 45% of U.S. ethane exports in 2023, followed by India (16%), Canada (14%), and Norway (10%). Data source: Bloomberg, L.P., and Natural Gas Intelligence Note: The Houston Ship Channel is the closest natural gas pricing hub to the Mont Belvieu NGPL pricing hub. NGPL=natural gas plant liquids. U.S. ethane prices at Mont Belvieu, Texas, the main pricing hub for NGPLs, were volatile throughout 2023. Ethane prices averaged under 25 cents per gallon (gal) for the year but briefly rose close to 39 cents/gal ($5.89 per million British thermal units) in mid-July. Ethane prices fell below 18 cents/gal in the last week of the year due to lower natural gas prices. When ethane prices are low relative to natural gas prices, plant operators can leave more ethane in the natural gas stream to be sold in natural gas markets. In our March 2024 Short-Term Energy Outlook (STEO), we forecast that U.S. ethane production will rise to average 2.7 million b/d in 2024 and 2.8 million b/d in 2025. U.S. ethane consumption will rise to average 2.2 million b/d in 2024 and 2.3 million b/d in 2025, and exports will remain flat at an average of 500,000 b/d in 2024 and 490,000 b/d in 2025.
  • 19. Copyright © 2024 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 endeavors 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 19 NewBase Energy News 04- April - Issue No. 1704 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 20. Copyright © 2024 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 endeavors 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 20