NewBase 05 January 2024 Energy News issue - 1687 by Khaled Al Awadi_compressed (1).pdf

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NewBase Energy News 05 January 2024 No. 1687 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Arabia launches bids for 7200MW plants with CCU
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
The Saudi Power Procurement Company (SPPC) has invited bids from leading utility project
developers and construction firms for setting up four power plants across the kingdom with a total
capacity of 7,200MW.
These are distributed across two power plants in the central region (Rumah1 & Rumah2), and two
in the eastern region (Nairyah1 & Nairyah2), with a capacity of 1800 MW per plant. According to
SPPC, all of these plants will operate using natural gas combined cycle technology with provision
for carbon capture unit readiness.
These projects, it stated, come in alignment with the Saudi Green Initiative, and its ambition to
achieve greenhouse gases (GHGs) net-zero through the circular carbon economy approach by
2060, or before depending on technology maturity and availability and count as a part of the Saudi
energy sector's endeavors to achieve the Saudi Vision 2030 goals pertaining to improving
generation efficiency and reducing costs
through diversifying energy production
sources.
This will help it reach the optimal energy mix
for electricity production and reducing the
amount of liquid fuel used by the country's
electricity production sector, in order to
achieve the optimal energy mix for electricity
production in the kingdom from renewable
energy and gas at a 50% for each of them, it
added.
ww.linkedin.com/in/khaled-al-awadi-80201019/

Kuwait: KAPP invites bids for 1,100MW Kuwait solar PV project
TradeArabia News Service
The Kuwait Authority for Partnership Projects (KAPP) has invited bids from leading global and
regional construction companies for the development of the third phase of Al Dibdibah Power and
Al Shagaya Renewable Energy solar PV project - in collaboration with the Ministry of Electricity &
Water & Renewable Energy.
A renewable power facility, the Al Dibdibah Power and Al Shagaya plant lies within the
administrative boundary of Jahra Governorate in the west of Kuwait City, approximately 100km from
the capital. On completion, it will boast a net capacity of 1,100MW.
According to KAPP, the winning developer or developer/consortium will be responsible for the
financing, design, procurement, engineering, construction, testing, commissioning, operation and
maintenance as well as transfer of the Al Dibdibah Power and Al Shagaya Renewable Energy –
Phase III – Zone 1 Solar PV IPP. The deadline for submitting the bids has been set at February 22.
As the main body responsible for implementation of the public-private-partnership projects, KAPP
aims to utilise private sector skills and expertise to maximize value for money and service quality.
It is currently in the process of initiating several high-impact projects in the power, water/wastewater,
education, health, transportation, communications, real estate, and solid waste management
sectors.
KAPP pointed out that following its completion, the project will benefit from power purchase
agreement with Ministry of Electricity & Water & Renewable Energy. as the off taker for a 30-year
term.
It will export the output from the plant to Kuwait’s electricity grid and transmission network. Both
KAPP and Ministry of Electricity & Water & Renewable Energy were assisted in the project by Ernst
& Young as lead and financial advisor, DLA Piper as legal advisor and DNV as technical and
environmental advisor.-

UAE’s AD Ports to build, develop, operate, maintain terminals at
Egyptian Red Sea ports …. WAM
Egypt has initialled a contract with AD Ports Group (AD Ports) to build, develop, operate and
maintain terminals for passengers and cruise lines at the Red Sea ports of Hurghada, Safaga and
Sharm El Sheikh.
The contract will also commit AD Ports Group to develop yacht and cruise ship tourism in Egypt,
the Egyptian Ministry of Transport said in a statement.
"This contract will contribute to operating cruise lines
between Zayed Port and Safaga, Hurghada and Sharm
El-Sheikh and, later, Arabian Gulf ports, Aqaba and
Europe and Asia," a statement by the Egyptian Ministry
of Transport said.
AD Ports on December 27th announced that it has
signed a definitive concession agreement with the
Egyptian Red Sea Ports Authority (RSPA) for the
development and operation of a multi-purpose terminal
at Safaga Seaport. Following the Government of
Egypt’s approval, this significant milestone reaffirms
the strong trade ties between the UAE and the Arab Republic of Egypt.

Uganda/Tanzania: TotalEnergies to assess land acquisition as
part of the Tilenga and EACOP projects …
Source: TotalEnergies
Patrick Pouyanné, Chairman and CEO of TotalEnergies, has entrusted Lionel Zinsou, a recognized
expert in African economic development, with a mission to assess the land acquisition program
carried out in Uganda and Tanzania as part of the Tilenga and EACOP (East African Crude Oil
Pipeline) projects, and the socio-economic development initiatives accompanying this program.
As the land acquisition process draws to a close, this mission will evaluate the land acquisition
procedures implemented, the conditions for consultation, compensation and relocation of the
populations concerned, and the grievance handling mechanism. It will also assess the actions taken
by TotalEnergies EP Uganda and EACOP to contribute to the improvement of the living conditions
for the people affected by these land acquisitions and suggest additional measures to be
implemented if needed.
The mission will submit its report by April 2024, and its conclusions will be shared with the Tilenga
and EACOP project partners.
The Tilenga and EACOP projects include a land acquisition program covering some 6,400 hectares,
carried out on behalf of the Ugandan and Tanzanian governments. This program concerns 19,140
households and communities owning or using plots of land and includes the relocation of 775
primary residences. To date, 98% of the households concerned have signed compensation
agreements, 97% have received their compensation, and 98% of households to be relocated have
taken possession of their new homes.

The Tilenga upstream development project in Uganda is carried out by TotalEnergies (56.67%,
operator), CNOOC (28.33%) and UNOC (15%). Production from the oil fields in Uganda will be
transported to the port of Tanga in Tanzania through the cross-border pipeline developed by the
EACOP Company, whose shareholders are TotalEnergies (62%), UNOC (15%), TPDC (15%) and
CNOOC (8%).
East African Crude Oil Pipeline
To move the oil out of landlocked Uganda, CNOOC and TotalEnergies want to build the 1,445 km
(898 mi) East African Crude Oil Pipeline (EACOP). EACOP would run all the way through Uganda
and Tanzania to the Indian Ocean Port of Tanga. From there, the oil would be shipped out into the
world.
TotalEnergies and CNOOC want to produce oil in the Tilenga and Kingfisher oil fields in Uganda.
The East African Crude Oil Pipeline would bring the oil all the way through Tanzania to the Indian
Ocean port of Tanga. Map: Yale Environment 360. Source: Total
On its way to the Tanzanian coast, EACOP would run through forests, savannahs and swamps. A
30-meter-wide (98 ft) pipeline corridor, cleared of houses and trees, would crisscross countless
nature reserves. EACOP would scatter the natural homes of chimpanzees, lions, buffalos, zebras,
antelopes, elephants, and migratory birds. If the pipeline is completed and reaches the Tanzanian
coast, oil tankers would steer through mangrove swamps and coral reefs to export the oil.
TotalEnergies and CNOOC have planned the pipeline in a way that would force tens of thousands
of farmers and families off their land. EACOP would cut through 178 Ugandan and 231 Tanzanian
villages and invade the lands of more than 86,000 people.[18][19] As for Tilenga, the affected
people have no say in this. They claim that if they don’t make space for EACOP voluntarily, the oil
giants’ subcontractors will intimidate and threaten the people to make them leave.

UK: Lerwick Harbour to service Equinor’s 1st phase of
development of the Rosebank oil and gas field
Source: Lerwick Port Authority
Lerwick Harbour is to be the main marine support hub for Norwegian company Equinor’s first phase
of development of the Rosebank oil and gas field, north-west of Shetland.
Contractor TechnipFMC is responsible for integrated engineering, procurement, installation and
construction for Rosebank. The subsea production systems, umbilicals, risers and flowlines it
manufactures will be de livered, stored and mobilised at the deep-water port.
Local supply chain companies will support Equinor and its contractors through various work scopes,
which will sustain and develop local employment opportunities.
Calum Grains, Lerwick Port Authority Chief Executive, said:
'It is another significant opportunity for Lerwick and Shetland to continue serving the energy sector.
We are perfectly positioned to support this project, both in proximity to the field, bringing savings in
sailing times, fuel and emissions, and minimising vessel turnaround time, and with our ready-made
facilities, including extensive quaysides and laydown.
'The Rosebank development is an excellent example of how the offshore industry is implementing
measures to counter climate change with lowest emissions possible while helping to secure the
UK’s energy supplies enroute to net zero.'
Equinor and partner, Ithaca Energy, are investing USD $3.8 billion in Rosebank, located around
130 kms north-west of Shetland with the largest untapped reserves in UK waters. Subsea wells will
be tied back to a redeployed Floating Production Storage and Offloading vessel (FPSO), Petrojarl
Knarr, with start-up from phase one planned in 2026-2027.

China Regains LNG Buyer’s Crown as Rivals Brace for More Growth
Bloomberg
China has regained the title of world’s biggest buyer of liquefied natural gas, as a further rebound
in deliveries threatens to tighten supply of the heating and power plant fuel.
LNG shipments to China rose 12% last year to nearly 71 million tons, according to ship-tracking
data compiled by Bloomberg. High prices and virus restrictions had significantly cut demand in 2022,
which helped free up LNG shipments to gas hungry nations elsewhere.
Although China’s LNG deliveries remain below 2021 levels, due in part to cheaper alternatives, the
nation is expected to drive global demand growth for the next decade. China’s imports are slated to
increase almost 20% to 84 million tons through 2025, and to 136 million tons by 2030, according to
Rystad Energy.
A surge in shipments to China before new supply comes online later this decade risks upending the
gas market’s careful balance. Europe is far more dependent on the fuel after the loss of Russian
pipeline gas, and a jump in Chinese LNG buying — especially this year or next — could threaten a
price war between the regions.
Gas makes up just 8.5% of China’s total energy mix, based on data from the Energy Institute,
leaving it with plenty of room to grow as it replaces dirtier alternatives like coal. In Japan, by contrast,
gas makes up a fifth of the mix, while it’s a third in the US.
China imported 17% of all LNG shipments last year, according to ship-tracking data. For
comparison, the entirety of western Europe accounted for 26%. Gazprom’s gas supplies to China
via the Power of Siberia pipeline reached 22.7 billion cubic meters last year, above contracted
volumes.China’s thermal coal benchmark, already on a downturn last year, may slide further as
milder demand growth makes little headway in clearing the nation’s surplus.

NewBase January 05 -2024 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices higher on Fed comments on inflation, Middle East tensions
Reuters + NewBase
January 5, 202411:45 AM GMT+4Updated 4 min ago
Oil prices edged higher on Friday after minutes from a Federal Reserve meeting suggested inflation
was under control and as U.S. Secretary of State Antony Blinken prepared to visit the Middle East
to try and prevent the Israel-Gaza conflict from widening.
Brent crude futures were up 29 cents, or 0.3%, to $77.88 a barrel, while U.S. West Texas
Intermediate crude futures rose 39 cents, or 0.54%, to $72.58 at 0839 GMT.
Both benchmarks, which are on track to end the first week of the year higher, had nearly recouped
all losses from Thursday, when prices settled lower in a choppy session due to massive weekly
gasoline and distillate stock builds.
While the minutes of the Fed meeting did not provide direct clues about when interest rate cuts
might commence, the discussions signalled a growing sense that inflation is under control and rising
concern about the risks that an "overly restrictive" monetary policy may hold for the economy.
Oil price special
coverage

Lower interest rates reduce consumer borrowing costs, which can boost economic growth and
demand for oil.
Also adding to supply concerns were developments in the Middle East, where Israeli forces are
planning a more targeted approach in the north and further pursuit of Hamas leaders in the south,
its defence minister said on Thursday.
Aiming to help prevent the conflict from expanding, Blinken was set to travel on Thursday to the
Middle East for a week of diplomacy, the State Department said.
U.S. Energy Information Administration data showed gasoline stocks had last week registered their
highest week-on-week rise in more than 30 years, while distillate products supplied, a proxy for
demand, fell to its lowest level since 1999.
But the bearish data was offset by geopolitical concerns, hopes of economic recovery on potential
easing of interest rates and lingering shipping concerns.
"There is still plenty of tension in the Middle East with Houthi rebels launching a sea drone in the
Red Sea, a US airstrike in Baghdad," ING analysts said in a report on Friday.

Oil Set for Weekly Gain as Supply Risks Outweigh Weak US Demand
Oil rose, cementing a weekly advance, as simmering tensions in the Middle East and North Africa
eclipsed signs of weakening US demand.
Brent crude traded near $78 a barrel after falling 0.8% on Thursday as US gasoline inventories
swelled by the most in three decades. West Texas Intermediate was below $73. Implied American
gasoline demand — a volatile number — dropped to the lowest in a year, Energy Information
Administration data showed.
Tensions in the Middle East and North Africa ratcheted higher this week, with US Secretary of State
Antony Blinken heading to the region for the fourth time since the Hamas attack on Israel in early
October. The Islamic State claimed responsibility for an explosion in central Iran that killed almost
100 people. Tehran had earlier said the blast was aimed at punishing its stance against Israel’s
invasion of Gaza.
Protesters in Libya disrupted supply from the Sharara and El-Feel fields, which could take a
combined 300,000 barrels a day off the market. Meanwhile, the Houthi militant group in Yemen
claimed another attack on a merchant ship in the Red Sea.
“There’s still plenty of tension in the Middle East” with the Houthis in the Red Sea, a US airstrike in
Baghdad, and the Islamic State blast in Iran, said Warren Patterson, head of commodities strategy
at ING Groep NV. Still, the “bearish EIA report yesterday saw the oil market give back some gains.”
Geopolitical flare-ups notwithstanding, the demand outlook for crude still looks shaky. Wall Street
is already cutting price forecasts for this year after global benchmark Brent dropped by nearly a fifth
last quarter. A surge in supplies from outside the OPEC+ alliance, led by US shale drillers, is
expected to continue, while consumption growth is forecast to slow.
Crude stockpiles at the Cushing, Oklahoma, hub rose for an 11th straight week to the highest since
July, the EIA data showed, although nationwide levels fell.

NewBase Specual Coverage
The Energy world –January 05 -2024
CLEAN ENERGY
Oil’s ample supply has analysts predicting tough year for crude
(Bloomberg) + NewBase
Supply is back in the driver’s seat for global oil markets. At issue is rising crude
production from non-OPEC+ nations including the US, which could outstrip global
demand that’s still growing but at a slower pace.
The oil cartel’s response has been to pledge deeper output cuts, but traders are
skeptical they’ll be sufficiently implemented to fully eliminate a surplus.

The combination has already pushed crude to its first annual decline since 2020,
upending expectations of higher prices stemming from a post-pandemic recovery.
Complicating the picture further, speculators have tightened their grip on the market,
fueling price swings that are sometimes divorced from fundamentals.
Looking ahead “further than a quarter seems very difficult to me” said Trevor Woods,
chief investment officer of commodities fund Northern Trace Capital LLC. “This year
coming up is a tricky, tricky year.” Oil is relying heavily on the Organization of the
Petroleum Exporting Countries and allies for support, and a collapse in the group’s
earlier agreement to curb supply could send prices crashing, he said.
There’s weakness coming through in multiple indicators. The Brent futures curve
stood in a bearish contango structure for most of December, with contracts for near-
term barrels trading at discounts to later ones. And speculators in 2023 were the most
bearish they’ve been on the commodity in more than a decade. Net-long positions
held by non-commercial players across the major oil contracts on average stand at
the lowest in records dating back to 2011, according to data compiled by Bloomberg.
Brent Crude Oil Last Day Financ (BZ=F)

“The market may have finally moved into ‘show-me mode,’ which will require some
combination of substantial stock draws, stronger grades, structure and margins
before buying interest returns,” said Vikas Dwivedi, Macquarie Group Ltd.’s global
energy strategist.
At least twice in 2023, money managers piled into short positions ahead of OPEC+
meetings and responded to the group’s production cut announcements with waves of
selling.
Their diminishing faith in the cartel’s ability to balance the market has been further
compounded by the rise of algorithmic trading, which can now account for nearly 80%
of the daily trades in oil and increasingly fuels prices swings that are independent of
fundamentals. A wave of consolidation among producers is also weakening the
futures market’s link to physical flows.
Speculators will need some convincing before deciding to turn decisively long on oil
in 2024. Commodity hedge funds saw returns slump last year to the lowest since
2019, while raw-material prices logged their first decline in five years, according to
Bloomberg indexes. Notably, oil trader Pierre Andurand’s eponymous hedge fund
was headed for its worst loss on record.

OPEC versus shale
OPEC+’s additional 900,000 barrels a day of voluntary supply curbs, agreed to just a
few weeks ago, are a sticking point for analysts and traders trying to price in global
demand and supply balances. Traders wonder if the group will deliver enough of the
cutbacks to rein in the looming surplus.
The cartel faces a “balancing act,” said Parsley Ong, head of Asia energy and
chemicals research at JPMorgan Chase & Co. It “revolves around the fact that US
producers are fundamentally price sensitive. The higher OPEC+ keeps oil prices by
reducing production, the more traditional oil producers and US shale production will
respond to that and boost supply.”
In the US, weekly crude production hit a record 13.3 million barrels a day last month,
as drillers from the Permian Basin in West Texas to the Bakken Shale of North Dakota
ramped up oil production well beyond what analysts foresaw.
And in 2024, output is expected to set a new all-time high, according to the US Energy
Information Administration. Brazil and Guyana are also set to boost supplies
significantly, contributing to a wave of new crude from the Americas.
Demand growth

On the demand side, global consumption growth should slow as economic activity
weakens, according to the International Energy Agency’s latest market outlook. The
group forecasts demand will edge up by 1.1 million barrels a day this year.
While that’s less than half of 2023’s latest estimated growth rate, the figure is still high
by historical standards. Consumption is normalizing after the once-in-a-generation
disruption caused by the pandemic and in the US, growing expectations of a so-called
soft landing are buoying energy demand.
Still, the global picture is uneven with a rapid switch away from oil in some sectors. In
China, Asia’s top crude importer, the electrification of cars is presenting structural
headwinds for oil consumption, weighing on demand growth, said Anthony Yuen,
head of energy strategy at Citigroup Inc.
“This is limiting oil’s sensitivity toward wider macroeconomic factors,” he said. “In the past, economic
indicators might directly translate into higher ground transportation and fuel demand,” but this
relationship now appears to be weakening as electric vehicle uptake increases.
Analysts are, however, mindful of geopolitical risks. Attacks in the Red Sea by Yemen-based Houthi
militants remain in focus, and Russia is still waging war in Ukraine. And ultimately, global producers
still have the power to withhold output to meet demand trends, although that will boil down to
discipline and intention.
“OPEC+ is interested in maximizing their revenue, so it’s in their interest to consider producing
more,” said Citi’s Yuen. “But I think it will depend on how production from non-OPEC sources pans
out over next year.”
NewBase Energy News 05-January - Issue No. 1687 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.

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