NewBase 14 August 2023 Energy News issue - 1647 by Khaled Al Awadi.docx22.pdf

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NewBase Energy News 14 August 2023 No. 1647 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: DEWA selects Masdar to build phase 6 of Dubai solar park
BY GULF BUSINESS + NEWBASE
Dubai Electricity and Water Authority (DEWA) has selected Abu Dhabi Future Energy Company
(Masdar) to build and operate the 1,800 megawatt (MW) sixth phase of the Mohammed bin Rashid
Al Maktoum Solar Park with an estimated cost of up to Dhs5.51bn, according to Dubai Government
Media Office.
Earlier in June, DEWA said it received the lowest bid from Masdar to build phase six of Mohammed
Bin Rashid Al Maktoum Solar Park. The Abu Dhabi renewable energy firm bid 1.62154 cents per
kilowatt-hour for the solar power plant.
“The 1,800MW 6th phase of the solar park using photovoltaic (PV) solar panels based on the
independent power producer (IPP) model will become operational in stages starting from Q4 of
2024,” said Saeed Mohammed Al Tayer, managing director & CEO of DEWA.
“The project documents, power purchase agreement (PPA), and financial close agreements will be
signed in due course.” The total capacity of the solar energy projects commissioned at the
Mohammed bin Rashid Al Maktoum Solar Park has reached 2,427MW. The sixth phase of the solar
park will increase the total production capacity to 4,660MW.
The Dubai utility firm received 23 expressions of interest from international applicants to develop
this project.
ww.linkedin.com/in/khaled-al-awadi-80201019/
The total capacity of the solar energy projects commissioned at the Mohammed bin
Rashid Al Maktoum Solar Park has reached 2,427MW

DEWA accelerates energy transition
Meanwhile, the share of clean energy in Dubai’s energy mix is about 16.3 per cent of its total
installed capacity. Al Tayer said this percentage is expected to reach 24 per cent in 2026 with the
completion of the sixth phase and the remaining phases under construction of the solar park.
DEWA has attracted huge investments to the UAE from the private sector and foreign banks,
leading to increased cash flow to the economy of Dubai and the UAE. The utility giant said it is
building another project with a total capacity of 433MW.
Under the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy,
the city seeks to obtain 100 per cent of its power from clean energy sources. Sheikh Mohammed
bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of
Dubai inaugurated the 900MW phase 5 of the solar park in June.
The fifth phase of the solar park is expected to power 270,000 homes and offset 1.18 million tonnes
of carbon emissions per year. With a total investment of Dhs50bn based on the IPP model, the solar
park will cut carbon emissions by 6.5 million tonnes annually upon completion.
DEWA posted Dhs12.7bn in half-year revenues, a 5.4 per cent increase driven by an increase in
demand for electricity, water, cooling services and an increase in the revenues of the utility firm’s
other portfolio of assets.
Revenue growth for electricity, water and cooling increased by 5.7 per cent, 3.8 per cent and 4.9
per cent, respectively.

UN averts disaster; oil emptied from Yemen 'time bomb' tanker
.-TradeArabia News Service
The United Nations has announced the successful completion of the ship-to-ship transfer of more
than 1 million barrels of oil by a team from SMIT, a unit of Dutch dredging and heavylift company
Boskalis, from the decaying FSO Safer tanker off Yemen, thus averting 'a monumental
environmental and humanitarian catastrophe.'
The FSO Safer was built as a supertanker in 1976 and converted a decade later into what is in
effect a floating oil container. It was abandoned off the Red Sea port of Hudaydah in Yemen in 2015
after war broke out.
Prior to the conflict, it was used to store and export oil from fields around Ma’rib, but the fighting
brought production, as well as maintenance of the vessel, to a halt.
With more than one million barrels of oil on board, it was feared the deteriorating FSO Safer, which
industry experts dubbed it a 'floating time bomb.' could explode or break apart, causing a major spill.
The safe removal of more than a million barrels of oil from the decaying FSO Safer tanker off Yemen,
helped avert a worst case scenario oil spill that would have devastated coastal communities and
created a crisis in vital Red Sea shipping lanes.
Leading up to the transfer of the oil, the salvage team executed several preparatory activities. After
the Boskalis multipurpose support vessel Ndeavor arrived at the site of the FSO Safer in late May,
the salvage team conducted a thorough inspection of the vessel and its cargo. In addition, various
measures were taken to ensure a safe working environment. Preparations were then made to
transfer the oil to the Very Large Crude Carrier (VLCC) purchased by the UN, said the statement
from Boskalis.

The VLCC was moored alongside the FSO Safer on July 23 with the support from two Smit
Lamnalco tugs, and oil screens were installed on the bow and stern between the two tankers as a
precautionary measure. Following this mooring operation, oil transfer pipes were connected
between the FSO Safer and the VLCC on July 25 and hydraulic pumps were installed to transfer
the oil to the VLCC.
The UN led a $120 million fundraising effort to secure the decaying ship and buy another tanker to
take the recovered oil. It took 18 days to complete the transfer in a stretch of water where naval
mines were known to be located.
The Kingdom of Saudi Arabia had been among the first countries to extend financial grants through
the King Salman Humanitarian Aid and Relief Center (KSrelief) as part of its efforts with the
international community in solving the crisis.
On completion of the safe transfer of oil, the Saudi ministry lauded the efforts of the UN Development
Programme (UNDP), that had been implementing the operation, as well as other donor countries
who raised funds.
The UN Resident and Humanitarian Coordinator for Yemen, David Gressly, who has led UN system-
wide efforts on the Safer since September 2021, said today marks a great milestone. "A remarkable
global coalition came together under the UN umbrella to prevent the worst-case scenario of a
catastrophic oil spill in the Red Sea," said Gressly.
"We need to finish the work the UN started. The installation of a CALM buoy to which the
replacement vessel will be safely tethered is the next crucial step," he added.
The SMIT team has been on-site since late May preparing the Safer for the oil transfer operation,
which officially kicked off on July 25. The preparations included inspections, safety measures, and
the installation of oil screens and transfer pipes.
The transfer was supported by two Smit Lamnalco tugs and hydraulic pumps were installed to
facilitate the transfer. Oil was transferred to the replacement vessel Yemen, formerly the Nautica,
which the UN secured from Euronav earlier this year.
The UN had warned that a major spill would devastate fishing communities on Yemen’s Red Sea
coast and cost estimated at $20 billion to cleanup. Disruptions to shipping through the Bab al-
Mandab strait to the Suez Canal could cost billions more in global trade losses every day.
"I welcome the news that the transfer of oil from the FSO Safer has been safely concluded today,"
remarked UN Secretary-General António Guterres. "The UN-led operation has prevented what
could have been an environmental and humanitarian catastrophe on a colossal scale," he added.
German Foreign Minister Annalena Baerbock said the international community had "defused a
floating time bomb and prevented a potentially enormous environmental and health disaster".
Boskalis CEO Peter Berdowski said: "With our salvage activities, we have once again averted a
potential environmental disaster of unprecedented proportions." "Thanks in part to the efforts of the
Dutch Ministry of Ministry of Foreign Trade and Development Cooperation and over two years of
preparations by Boskalis, we were able to successfully execute this complex operation on behalf of
the UN," he added

US awards $1.2 billion to Oxy, Climeworks-led carbon air
capture hubs , ….. Reuters
The U.S. Department of Energy on Friday announced that projects in Texas and Louisiana to
remove more than 2 million metric tons of carbon emissions per year will get over $1 billion in federal
grants, a key step in scaling up direct air capture (DAC) technology.
The Department of Energy (DOE) selected Project Cypress in Louisiana, run by Battelle,
Climeworks Corporation and Heirloom Carbon Technologies; and the South Texas DAC Hub in
Kleberg County, Texas, proposed by Occidental Petroleum's (Oxy) (OXY.N) subsidiary 1PointFive
and partners Carbon Engineering Ltd and Worley.
The agency also launched several new initiatives aimed at bringing the cost of the technology down
to less than $100 per net metric ton of CO2-equivalent within this decade. That includes a $35
million government procurement program for carbon removal credits, and funding for 14 feasibility
studies and five engineering and design studies for earlier-stage hub projects.
Worsening climate change and inadequate efforts to cut emissions have thrust carbon removal into
the spotlight. U.N. scientists estimate billions of tons of carbon must be sucked out of the
atmosphere annually to keep in line with a global goal to cap global warming at 1.5 degrees Celsius.
DAC, when deployed at scale, can help the U.S. meet its goal of neutralizing greenhouse gas
emissions by 2050, according to the DOE.
But the young technology needs to become much cheaper quickly to roll out at the scale needed to
affect the planet.
"If we deploy this at scale, this technology can help us make serious headway toward our net-zero
emissions goals while we are still focused on deploying, deploying, deploying more clean energy at
the same time," Energy Secretary Jennifer Granholm told reporters.

The grants, which will require some negotiations before disbursement, are the first made by the
Energy Department, which got $3.5 billion from Congress to invest in regional DAC hubs from the
passage of the bipartisan infrastructure bill.
Vicki Hollub, CEO of Oxy, told reporters that the project has the potential to remove up to 30 million
tons of CO2 per year when fully operational and "validates our readiness, technical maturity, and
our ability to use Oxy's expertise in large projects."
DAC uses chemical reactions to remove CO2 from the air, which can then be stored underground
or used in products such as concrete or aviation fuel. Climeworks said its hub will be built in several
stages with an eventual 1 million tons per year capacity by 2030 and construction starting as soon
as possible.
“It depends on multiple factors, but I would wish to have first capture in 2025/2026,” Jan
Wurzbacher, Climeworks director and founder, told Reuters. Heirloom CEO Shashank Samala said
he hoped to hit a million tons per year by 2029 or 2030.
"Just two years ago, we were in a petri dish where we were removing grams of CO2 from the air,"
Samala said. Now the company is doing tons and aiming soon for hundreds and thousands of tons
per year.
"If we continue this pace of exponential growth every year, I think a billion tons a year is definitely,
definitely achievable." Both CEOs said factors such as the timeline of the permitting process would
be key to the process.
Although most environmental activists acknowledge that carbon removal will be needed for global
climate targets to be met, they are concerned companies could use carbon removal development
to give fossil fuel companies cover to maintain production, especially in minority and low-income
areas.
The announcement comes just over three months before the COP28 climate summit, where the
host country, the United Arab Emirates, is expected to focus on the role of carbon removal
technologies.
This month, its national oil company ADNOC and Occidental agreed to evaluate investment
opportunities in DAC in the United States and overseas. Erin Burns, director of carbon removal
advisory firm Carbon180, said the United States is positioning itself as a leader in this technology.
"This is the first major federal
investment from any country
on carbon removal at this
level," Burns said. "The U.S. is
making a very large bet on this
technology." Reporting by
Valerie Volcovici; Additional
reporting by Susanna Twidale
and Peter Henderson; Editing
by Gerry Doyle, Susan Fenton
and Jonathan Oatis

NewBase August 14-2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil steadies as China worries counter supply cuts
Reuters + NewBase
Oil prices stabilised on Monday as investors weighed concerns about China's faltering economic
recovery and a stronger dollar against seven weeks of gains on tightening supply from OPEC+
output cuts.
Brent crude futures slipped 24 cents to $86.57 a barrel by 11157 GMT while U.S. West Texas
Intermediate crude edged lower by 27 cents to $82.92 a barrel.
"Crude has been in overbought territory for some time now, defying expectations of a correction. It
has been singularly focused on U.S. economic optimism, to the exclusion of the increasingly
stronger headwinds blowing in the eurozone and China," said Vandana Hari, founder of oil market
analysis provider Vanda Insights.
"A rebalancing is overdue but it may need a reality check in the markets stateside," Hari said. Oil
may be range-bound this week as China's sluggish economic recovery and a stronger U.S. dollar
Oil price special
coverage

could depress prices, but OPEC+ has indicated it would do whatever it takes to tighten supply and
stabilise markets, CMC Markets analyst Tina Teng said.
Earlier in the session prices dipped about 1% as the U.S. dollar index (.DXY) extended gains after
a slightly bigger increase in U.S. producer prices in July lifted Treasury yields despite expectations
the Federal Reserve is at the end of hiking interest rates.
A stronger dollar pressures oil demand by making the commodity more expensive for buyers holding
other currencies.
Meanwhile, supply cuts by Saudi Arabia and Russia, part of the alliance between the Organization
of the Petroleum Exporting Countries and their allies, or OPEC+, are expected to erode oil
inventories over the rest of this year, potentially driving prices even higher, the International Energy
Agency said in its monthly report on Friday.
Last week’s encouraging demand estimates, falling OPEC supply, declining inventories and
mitigated inflationary pressure, said Tamas Varga of oil broker PVM, "is a warning signal that unless
China joins the party the path upwards will be paved with pitfalls".

NewBase Specual Coverage
The Energy world –August-14 -2023
CLEAN ENERGY
World oil demand scaling record highs as supply plunges in July
IEA
World oil demand is scaling record highs, boosted by strong summer air travel, increased oil use in
power generation and surging Chinese petrochemical activity. Global oil demand is set to expand
by 2.2 mb/d to 102.2 mb/d in 2023, with China accounting for more than 70% of growth. With the
post-pandemic rebound running out of steam, and as lacklustre economic conditions, tighter
efficiency standards and new electric vehicles weigh on use, growth is forecast to slow to 1 mb/d in
2024.
Global oil supply plunged by 910 kb/d to 100.9 mb/d in July. A sharp reduction in Saudi production
in July saw output from the OPEC+ bloc fall 1.2 mb/d to 50.7 mb/d, while non-OPEC+ volumes rose
310 kb/d to 50.2 mb/d. Global oil output is projected to expand by 1.5 mb/d to a record 101.5 mb/d
in 2023, with the US driving non-OPEC+ gains of 1.9 mb/d. Next year, non-OPEC+ supply is also
set to dominate world supply growth, up 1.3 mb/d while OPEC+ could add just 160 kb/d.
Refinery throughputs are set to reach a summer peak of 83.9 mb/d in August, up 2.4 mb/d since
May and 2.6 mb/d higher than a year ago. The increase in refined product output has failed to ease
product market tightness, pushing gasoline and middle distillate cracks to near record-highs. High
sulphur fuel oil cracks provided further support to margins, which pushed above 2022 levels in July.
Russian oil exports held steady at around 7.3 mb/d in July, as a 200 kb/d decline in crude oil loadings
was offset by higher product flows. Crude exports to China and India eased m-o-m but accounted
for 80% of Russian shipments. Higher oil prices, combined with narrowing discounts for Russian
grades, pushed estimated export revenues up by $2.5 bn to $15.3 bn, $4.1 bn below year-ago
levels.

Global observed oil inventories declined by 17.3 mb in June, led by the OECD. Non-OECD stocks
and oil on water were largely unchanged. OECD industry stocks fell by 14.7 mb, in line with the
seasonal trend, to 2 787 mb. Industry stocks were 115.4 mb below the five-year average, with
product inventories particularly tight. Preliminary data suggest global inventories drew further in July
and August.
ICE Brent futures rallied by $11/bbl to $86/bbl in July as macroeconomic sentiment improved
markedly with inflation easing. Tightening physical balances in the wake of Saudi output cuts and
lower Russian loadings added additional momentum to the price rebound, pushing crude forward
curves deeper into backwardation. At the time of writing, Brent traded around $87/bbl, close to 2023
highs.
Global oil prices moved steadily higher during July and into early August, reflecting a market
tightening long projected by this Report. Deepening OPEC+ supply cuts have collided with improved
macroeconomic sentiment and all-time high world oil demand. North Sea Dated rose by $10/bbl
over the month to around $85/bbl, its highest since April. With output cuts hitting the heavy sour
crude market hard, Dubai crude is trading at a rare premium to Brent, while the price of Urals crude
has breached the G7-led price cap now making all Russian oil exports ineligible for G7 and EU
maritime services.
In July, oil supply from the OPEC+ alliance fell by 1.2 mb/d to a near two-year low as a voluntary
reduction from Saudi Arabia came into effect. At 50.7 mb/d, the bloc’s production was down more
than 2 mb/d from the start of the year. Over the same period, producers outside the group ramped
up output by 1.6 mb/d to 50.2 mb/d but limited non-OPEC+ gains are expected for the remainder of
the year. The US, Brazil and Guyana lead the expansion, with exports from the trio rising by roughly
15% y-o-y to more than 9 mb/d in July, boosting the availability of light sweet grades in the Atlantic
Basin. The US accounts for nearly 80% of global 2023 supply growth, or 1.2 mb/d of the 1.5 mb/d
total. Next year, that share is set to slip as activity slows in the shale patch.
World oil demand hit a record 103 mb/d in June and August could see yet another peak. After
months of lacklustre readings, OECD demand was revised up for May and June, with overall
consumption returning to growth in 2Q23 after two quarters of contraction. Chinese demand was
also stronger than expected, reaching fresh highs despite persistent concerns over the health of the
economy. For the year, global oil demand looks on track to expand by 2.2 mb/d to 102.2 mb/d, its
highest ever annual level. With the post-pandemic recovery having largely run its course and as the
energy transition gathers pace, growth will slow to 1 mb/d in 2024.
Refiners are struggling to keep up with demand growth, as the shift to new feedstocks, outages and
high temperatures have forced many operators to run at reduced rates. Tight gasoline and diesel
markets have pushed margins to six-month highs. While naphtha remains under pressure, due to
competition from cheap LPG and weak petrochemical activity outside of China, high-sulphur fuel oil
has tightened significantly as refiners replace lost OPEC+ crude with lighter and sweeter grades.
High sulphur fuel oil in Rotterdam rose above North Sea Dated for the first time in 28 years.
As a result, crude and products inventories have drawn sharply. In July, observed oil stocks
decreased for a third consecutive month, with OECD industry stocks more than 100 mb below the
five-year average. Market balances are set to tighten further into the autumn as Saudi Arabia and
Russia extend supply cuts at least through September. An ample OPEC+ spare capacity cushion
of 5.7 mb/d means there is significant scope for the alliance to raise output later in the year.
Additional supplies of heavy sour crude would allow refiners to boost activity and help ease product
market tensions. But if the bloc’s current targets are maintained, oil inventories could draw by 2.2
mb/d in 3Q23 and 1.2 mb/d in the fourth quarter, with a risk of driving prices still higher.

NewBase Energy News 03-August 2023 - Issue No. 1645 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.

NewBase 14 August 2023 Energy News issue - 1647 by Khaled Al Awadi.docx22.pdf

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