NewBase 10-Octoberr -2022 Energy News issue - 1556 by Khaled Al AwadiNewBase 04-Octoberr -2022 Energy News issue - 1555 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 10 October 2022 No. 1556 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE Ministry of Energy teams up with Engie subsidiary to
develop clean energy projects
The National - John Benny + NewBAse
The UAE Ministry of Energy and Infrastructure (MoEI) signed a preliminary agreement with Engie
Solutions, a subsidiary of French utility company Engie, to develop clean energy projects and
support the country's decarbonisation goals.
As part of the agreement, they will jointly develop "technical co-operation” to generate clean energy
projects on MoEI’s assets, while exploring other energy-related corporate social responsibility
initiatives, Engie said in a statement on Thursday.
Engie Solutions and the UAE Ministry of Energy and Infrastructure will jointly develop "technical
co-operation” on clean energy projects. Photo: Engie Solutions
“Developing renewable energy fulfils numerous national priorities, including helping tackle carbon
emissions, create new high-tech jobs and inspire innovation,” said Sharif Al Olama, undersecretary
of the Ministry of Energy and Infrastructure for Energy and Petroleum affairs.

“This project adds to UAE’s growing capabilities in the renewable sector; the UAE already hosts the
largest single-site solar park in the world based on the independent power producer model. We will
continue to pursue such projects in line with UAE’s renewable energy goals."
The UAE has invested more than $40 billion in the clean energy sector and further plans to invest
a total of Dh600bn ($163.5bn) in clean and renewable energy projects over the next three decades
as it aims to achieve net zero emissions by 2050.
The UAE’s clean energy capacity is “on track” to reach 14 gigawatts by 2030 as a result of new
initiatives and projects, Mariam Al Mheiri, Minister of Climate Change and Environment, said at the
RAK Energy Summit on Wednesday.
It is building the world’s largest solar plant in the Al Dhafra region of Abu Dhabi with a capacity of 2
gigawatts, as well as the Mohammed bin Rashid Solar Park in Dubai with a 5 gigawatt capacity.
Meanwhile, Engie is targeting a renewable energy capacity of 80 gigawatts by 2030 from 35
gigawatts at present. The company is planning to start new projects in Europe, the US, the Middle
East and Africa and Australia, Frederic Claux, Engie’s country manager for GCC and
Pakistan told The National last week.
Engie aims to expand in the renewables sector in the UAE and Saudi Arabia and is planning to bid
for the 1.5 gigawatts Al Ajban solar project in Abu Dhabi as well as new renewable projects in Saudi
Arabia, he said.
“Our latest partnership with the UAE Ministry of Energy and Infrastructure extends our partnership
with regional governments to support green energy and mobility projects,” said Ian Harfield, chief
executive for Engie Solutions GCC.
“Such projects will positively impact the region’s challenges while fostering innovation in the clean
energy sector."

U.A.E: 3rd Barakah Plant Unit 3 connected to UAE power grid
Gulf News + NewBase
Emirates Nuclear Energy Corporation (ENEC) has announced that following the start-up of Unit 3
of the Barakah nuclear plant, its operations and maintenance subsidiary, Nawah Energy Company
(Nawah), has now safely and successfully connected the unit to the UAE’s transmission grid,
delivering the first megawatts of carbon-free electricity from the third of the four units at the Barakah
Plant.
Unit 3 will add another 1,400 megawatts of zero-carbon emission electricity capacity to the national
grid, a major step forward in guaranteeing UAE energy security and energy sustainability to tackle
climate change – two of the biggest challenges facing the world today.
With both Units 1 and 2 already in commercial operation, generating clean electricity every minute
of the day and with Unit 3 close to commercial operations in the coming months – Barakah is
accelerating the decarbonisation of the power sector and forms an essential component of the
UAE’s Net Zero 2050 Strategy.
The nuclear sector as whole is a vital part of the UAE’s clean energy system of multiple low-carbon
technologies, ensuring the reliability, efficiency and resilience of the UAE grid for at least the next
60 years.
Lauding the milestone, Enec Managing Director and CEO Mohamed Ibrahim Al Hammadi said: "Our
leadership’s long-term vision and decisions more than 13 years ago are paying dividends today as
we celebrate another proud moment for the UAE Peaceful Nuclear Energy Program."
"Connecting Unit 3 to the UAE transmission grid adds thousands more megawatts of clean
electricity to power all aspects of society, replaces the need to burn $4 billion worth of gas which
can be diverted for export, and through Clean Energy Certification, gives many companies in the
UAE a unique competitive advantage," stated Al Hammadi.

According to Enec, following grid connection, Unit 3 will undergo the process of gradually raising
power levels, known as Power Ascension Testing (PAT).
The process will be continuously monitored and tested until maximum electricity production is
reached, while adhering to all local regulatory requirements and the highest international standards
of safety, quality and security.
According to Enec, the four units at Barakah alone are contributing 25% of the UAE’s National
Determined Contributions to Net Zero and is the largest source of dispatchable clean electricity.
The plant demonstrates how
nuclear energy projects can be
delivered safely, successfully and
competitively to tackle growing
carbon emissions. Through clean
electricity generated at Barakah,
nuclear is helping to decarbonise
some of the most energy intense
sectors.
In the coming weeks, Unit 3 will be
connected to the national electricity
grid and the operations team will
continue with the process of
gradually raising power levels,
known as Power Ascension Testing
(PAT). The process will be
continuously monitored and tested
until maximum electricity
production is reached, while
adhering to all regulatory
requirements and the highest
international standards of safety,
quality, and security.
Both Units 1 and 2 of the Barakah
Plant are operating commercially,
providing an abundant source of
clean and reliable electricity 24/7,
while Unit 4 is in the final stages of
commissioning prior to completion
of construction. ENEC is spearheading the decarbonisation of the power sector and the Barakah
Plant is an essential component of the UAE’s Net Zero 2050 Strategy. The plant is a catalyst for
innovation in the clean energy transition, including SMR development and next generation reactors,
and a bridge to other clean fuels like hydrogen.
A powerhouse for the nation’s development, energy security and stability, the plant generates high-
value jobs and stimulates the growth of local industries. Barakah also provides significant
environmental benefits for the nation today, and for the next 60 years and beyond, through rapid
decarbonization of the energy sector. When fully operational, the plant will prevent 22.4 million
tonnes of carbon emissions - the leading cause of climate change - every year.

U.S: Number of DUCs wells continues to decline record in 2020
source: U.S. Energy Information Administration, Drilling Productivity Report (DPR), September 2022
Based on our latest Drilling Productivity Report (DPR), drilled but uncompleted wells (DUCs) in all
U.S. DPR regions totaled an estimated 4,283 wells in August 2022, the least in any month since we
started estimating DUCs in October 2013.
The decline in DUCs in most major U.S. onshore oil- and natural gas-producing regions indicates
that more wells are being completed and fewer new wells are being drilled.
In the second quarter of 2020, COVID-19 mitigation efforts resulted in less worldwide demand for
petroleum products.
Crude oil and natural gas producers shut in existing production and halted completions of new wells
in the United States. Based on our current estimates, DUCs reached a record of more than 8,800
wells in second-quarter 2020.
Due to continued market uncertainty and limited access to new investment capital, oil and natural
gas producers have focused their spending on existing operations. Since June 2020, the overall
number of DUC wells has steadily declined by an average of 227 DUCs per month during 2021 and
by 82 DUCs per month during 2022.
For August 2022 (the most recent month available), DUCs totaled 4,283 wells in all DPR regions.
The number of completed wells has increased from a low of 253 in June 2020 to 969 in August 2022
because producers have been accelerating the completion of DUCs.

Since the second quarter of 2020, DUCs have declined the most in the Permian region. Oil makes
up most Permian production, but significant volumes of natural gas are also produced in the
Permian region in the form of associated natural gas.
DUCs have also declined in the Appalachia region, the largest natural gas-producing region in the
United States. Only the Haynesville region has seen a slight increase, by 100 DUCs, because of
growth in natural gas demand from newly added liquefied natural gas (LNG) export capacity on the
Gulf Coast.
In 2022, drilling for both
oil- and natural gas-
directed wells has
increased in the United
States, according to
weekly data collected
by Baker Hughes. Natural
gas-directed rigs total 160
as of September 30, an
increase of 53 so far this
year.
Oil-directed rigs total
602, an increase of 481
so far this year. Although
the total number of U.S.
DUC wells has declined
overall throughout 2022,
this increase in drilling activity has slowed the monthly decline. In August, the number of DUC wells
grew by 16, the smallest monthly addition since July 2020.

China processed the least Crude oil since early 2020 in Q-2 2022
China National Bureau of Statistics and China General Administration of Customs, as compiled by Bloomberg, L.P.
In the second quarter of 2022, China processed the least crude oil since the first quarter of 2020,
when the COVID-19 pandemic had the strongest effect on China’s economic activity.
The resurgence of COVID-19 cases since March 2022 and China’s policy of localized mobility
restrictions explain China’s reduced demand for petroleum products, and as a result, reduced
refinery activity, in the second quarter of 2022.
In addition to decreased domestic demand, lower export quotas for finished petroleum products,
beginning around the second half of 2021, have contributed to reduced demand for crude oil
processing in China.
Because China has been processing less crude oil, it has also been importing less crude oil for
processing. China’s crude oil imports peaked in late 2020 and early 2021 before decreasing as a
result of lower domestic demand and higher global crude oil prices.
China’s crude oil imports were particularly low in June and July 2022. In June, China’s crude oil
imports decreased to 8.8 million barrels per day (b/d), the least since July 2018. Imports remained
at 8.8 million b/d in July, down 2.0 million b/d from May of this year, but increased to 9.5 million b/d
in August.

Despite China’s total crude oil imports decreasing in recent months, China’s crude oil imports from
Russia have increased from 8% (slightly less than 400,000 b/d) of total crude oil imports in 2011 to
about 16% (1.6 million b/d) in 2021, and to as much as 21% (2.0 million b/d) in August 2022.
Russia's share of China’s crude oil imports was 20% in June and 19% in July.
Western economic sanctions have reduced consumption of Russia’s crude oil in many countries.
Europe, for example, has been looking for alternative sources, driving up prices for Brent crude oil
and leaving crude oil prices in Russia at a discount. Likely in response to these dynamics, China
has shifted its imports away from more expensive western sources to imports from Russia.
Note: Figure includes China's top 15 crude oil import sources, based on imports from November
2021 to January 2022.

India's imports of Russian oil jump fivefold, helping war efforts
TOMOYOSHI OSHIKIRI, Nikkei staff writer + NewBase
Russian fossil fuel exports to China and India have risen significantly since Moscow invaded Ukraine
early this year, helping to replenish the Kremlin's war chest even as shipments to the U.S., Europe
and Japan fall sharply.
The value of Russia's energy exports to China increased 17%, or 30 million euros ($29 million), in
the July-August period compared with February and March, according to an analysis of data from
the Center for Research on Energy and Clean Air, a Finnish think tank. Coal exports jumped 53%,
while oil shipments rose 16%.
Exports to India increased by a factor of 5.7, or 40 million euros, during the same period, marking
the largest increase in the world. Russia was the second-largest supplier of crude for India in June,
jumping from 10th place in 2021, according to Indian trade statistics.
Russia's overall daily exports of oil, coal, and natural gas in July and August were down 18% from
February and March. Natural gas sent via pipeline sustained the largest decline of 56%, followed
by a 34% drop in petroleum products and a 29% fall in coal. Crude oil, on the other hand, increased
19%.
Energy is a key industry for Russia, with oil and gas accounting for about 40% of government
revenue. To starve Moscow of funds to finance its war in Ukraine, the U.S., Japan and the European
Union have imposed a series of sanctions on Russian oil and coal.

As a result, Russia's fossil fuel exports to the EU fell 35%. The U.S. and the U.K. saw plunges of
roughly 90%, and Japan a drop of around 70%. The decrease in exports to these countries totals
about 250 million euros per day.
But the overall decrease in Russia's energy exports is much smaller, at about 170 million euros
because of Moscow's successful efforts to sell to countries not participating in the sanctions, such
as China and India, at a discount.
Exports to the Middle East also expanded, with shipments to the United Arab Emirates and Egypt
increasing by factors of about nine and three. They are reportedly processing Russian crude oil into
petrochemical products for export to the rest of the world.
For example, the Port of Fujairah in the UAE is considered a "major hub" for the export of petroleum
products mixed with Russian products. As the sanctions on Russian gas and oil take root in Europe
and the U.S., Russia's oil is reaching global customers through third-party processors.
The value of exports to Turkey increased about 20%. The country is a NATO member and has
criticized the Russian invasion of Ukraine, but it is also cautious about economic sanctions.
U.S. Treasury Secretary Janet Yellen revealed in September that Russia is heavily discounting oil
for emerging economies, adding that she has confirmed a 30% price reduction to several countries.
Indonesian President Joko Widodo did not rule out the possibility of importing Russian oil, telling
the Financial Times that "we always monitor all of the options."
Soaring energy prices are also blunting the impact of economic sanctions. According to CREA,
Russia earned a total of 158 billion euros from fossil fuel exports in the six months following the
invasion of Ukraine. It estimates Russia's war costs for the same period to be around 100 billion
euros.
To exact a bigger toll on Russia's finances, finance ministers from the Group of Seven major
economies agreed in September to introduce a price cap on Russian oil imports, starting in
December. The arrangement bars insurance companies from insuring marine transportation of oil
above the cap. EU member states agreed to the cap on Wednesday.
According to the Russian Ministry of Finance, the country had a fiscal surplus of 1.37 trillion rubles
($21.9 billion) in the first half of 2022, but the figure narrowed to 137 billion rubles for the year to
August.

NewBase October 10 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil falls as investors take profit on China demand concerns
Reuters + NewBase
Oil prices fell on Monday, snapping five days of gains, as investors took profits after a report on
slowing economic activity in China, the world's biggest crude importer, re-ignited concerns about
falling global fuel demand.
Brent crude futures for December settlement fell by as much as 1.1%, and was last down 85 cents,
or 0.9%, at $97.07 a barrel by 0500 GMT. West Texas Intermediate crude for November delivery
declined by as much as 1.1% and was at $91.84 a barrel, down 80 cents, or 0.9%.
Oil price special
coverage

Services activity in China during September contracted for the first time in four months as COVID-
19 restrictions hit demand and business confidence, data showed on Saturday. read more
The slowdown in the economy of China, the world's second-largest oil consumer after the U.S.,
adds to growing concerns about a possible global recession triggered by numerous central banks
raising interest rates to combat high inflation rates.
"Oil ... is getting hit with the triple whammy of China's economic weakness, U.S. monetary policy
tightening and Biden administration SPR intervention," Stephen Innes, managing director at SPI
Asset Management, said in a note.
Innes was referring to the possibility of additional releases from the U.S. Strategic Petroleum
Reserve next month in response to the decision last week by the Organization of the Petroleum
Exporting Countries (OPEC) and allies including Russia, known as OPEC+, to lower their output
target by 2 million barrels per day.
Brent and WTI
posted their biggest
percentage gains
since March after the
reduction was
announced.
The OPEC+ cuts,
which come ahead of
a European Union
embargo on Russian
oil, will squeeze
supply in an already
tight market. EU
sanctions on Russian
crude and oil
products will take
effect in December
and February,
respectively.
"The cut is clearly
bullish," ING analysts
said in a note.
"However, there is obviously still plenty of other uncertainty in the market, including how Russian oil
supply evolves due to the EU oil ban and G-7 price cap, as well as the demand outlook given the
deteriorating macro picture."
Analysts at banks and brokerages have raised their crude price forecasts and expect Brent to rise
above $100 a barrel in the coming months.
Despite the promised cuts in output, Saudi Arabian state oil company Saudi Aramco has told at
least five North Asian customers they will receive full contract volumes of crude oil in November,
according to sources with knowledge of the matter. read more
That would indicate little change in the physical supply of oil at least to Asian buyers of crude from
Saudi Arabia, who as OPEC's biggest producer will assume a large portion of the announced
reductions.

NewBase Specual Coverage
The Energy world –October -10 -2022
CLEAN ENERGY
Natural gas markets expected to remain tight into 2023 as
Russia further reduces supplies to Europe
Source: IEA
European demand for LNG sets off global competition for supplies, even as demand tumbles in
Europe and Asian growth stalls, according to latest IEA market report
Russia’s continued curtailment of natural gas
flows to Europe has pushed international prices
to painful new highs, disrupted trade flows and
led to acute fuel shortages in some emerging
and developing economies, with the market
tightness expected to continue well into 2023,
according to the IEA’s latest quarterly Gas
Market Report.
Natural gas markets worldwide have been
tightening since 2021, and global gas
consumption is expected to decline by 0.8% in
2022 as result of a record 10% contraction in
Europe and unchanged demand in the Asia
Pacific region. Global gas consumption is
forecast to grow by only 0.4% next year, but the
outlook is subject to a high level of uncertainty,
particularly in terms of Russia’s future actions
and the economic impacts of sustained high
energy prices.
Russia has largely cut off gas supplies to
Europe in retaliation against sanctions imposed
on it following its invasion of Ukraine. This has
deepened market tensions and uncertainty
ahead of the coming winter, not just for Europe
but also for all markets that rely on the same
supply pool of liquefied natural gas (LNG).
'Russia’s invasion of Ukraine and sharp reductions in natural gas supplies to Europe are
causing significant harm to consumers, businesses and entire economies – not just in
Europe but also in emerging and developing economies,' said Keisuke Sadamori, the
IEA’s Director of Energy Markets and Security. 'The outlook for gas markets
remains clouded, not least because of Russia’s reckless and unpredictable conduct,
which has shattered its reputation as a reliable supplier. But all the signs point to
markets remaining very tight well into 2023.'
The current gas crisis also casts longer-term uncertainty on the prospects for natural gas, especially
in developing markets where its use was expected to rise at least in the medium term as it replaced
other higher-emission fossil fuels.

European natural gas prices and Asian spot LNG prices spiked to record highs in the third quarter
of 2022. This reduced gas demand and incentivised switching to other fuels such as coal and oil for
power generation.
In some emerging and developing economies, the price spikes triggered shortages and power cuts.
Europe’s gas consumption declined by more than 10% in the first eight months of this year
compared with the same period in 2021, driven by a 15% drop in the industrial sector as factories
curtailed production.
Natural gas demand in China and Japan was almost unchanged in that same period, while it
contracted in India and Korea. Chinese gas demand is forecast to increase by less than 2% this
year, its lowest annual growth rate since the early 1990s.
Meanwhile, natural gas prices in the United States hit their highest summer levels since 2008, yet
North America was one of the few regions of the world where demand increased, supported by
demand from power generation.
Europe has offset the sharp falls in Russian gas supplies through LNG imports, as well as alternative
pipeline supplies from Norway and elsewhere. Europe’s surging demand for LNG – up 65% in the
first eight months of 2022 from a year earlier – has drawn supply away from traditional buyers in the
Asia-Pacific region, where demand dropped by 7% in the same period as a result of high prices,
mild weather and continued Covid lockdowns in China.
The IEA forecasts that Europe’s LNG imports will increase by over 60 billion cubic metres (bcm) this
year, or more than double the amount of global LNG export capacity additions, keeping international
LNG trade under strong pressure for the short- to medium-term.
This implies that Asia’s LNG imports will remain lower than last year for the rest of 2022. However,
China’s LNG imports could rise next year under a series of new contracts concluded since the
beginning of 2021, while a colder-than-average winter would also result in additional demand from
northeast Asia, further adding to market tightness.
In addition to diversifying supply, the European Union and its member states have taken other steps
to increase gas security, such as setting minimum storage obligations and implementing energy
saving measures for the coming winter.
EU storage facilities were close to 90% full as of end of September, though the absence of Russian
supply presents challenges for refilling them next year. Both Japan and Korea have instituted
policies to reduce reliance on imported LNG for power generation and have developed contingency
plans for possible LNG supply disruptions.
e new report, the IEA conducted a resilience analysis of the EU’s gas market in the case of a
complete Russian supply shutdown starting from 1 November 2022. The analysis shows that
without demand reductions in place and if Russian pipeline supply is completely cut, EU gas storage
would be less than 20% full in February, assuming a high level of LNG supply – and close to 5%
full, assuming low LNG supply.
Storage falling to these levels would increase the risk of supply disruptions in the event of a late
cold spell. A reduction in EU gas demand through the winter period of 9% from the average level of
the past five years would be necessary to maintain gas storage levels above 25% in the case of
lower LNG inflows.
And a reduction in demand of 13% from the 5-year average would be necessary through the winter
period to sustain storage levels above 33% in the case of low LNG inflows. Therefore, gas saving

measures will be crucial to minimise storage withdrawals and keep inventories at adequate levels
until the end of the heating season.

NewBase Energy News 10 October 2022 - Issue No. 1556 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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