NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 14 March 2024 No. 1707 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE: ADNOC issues early EPC award for Ruwais LNG project
Source: ADNOC
ADNOC has issued a Limited Notice to Proceed (LNTP) for early engineering, procurement and
construction (EPC) activities to a joint venture, led by Technip Energies, with JGC
Corporation and National Petroleum Construction Company PJSC for its low-carbon liquefied
natural gas (LNG) project in Al Ruwais Industrial City, Abu Dhabi.
With the Final Investment Decision (FID) expected this year, the Ruwais LNG project is set to be
the first LNG export facility in Middle East and North Africa region to run on clean power, making it
one of the lowest-carbon intensity LNG plants in the world.
Fatema Al Nuaimi, Executive Vice President, Downstream Business Management at ADNOC,
said: 'The Ruwais LNG project will reinforce ADNOC’s position as a reliable global natural gas
supplier, underscoring its pivotal role and contribution to global energy security. The project is set
to significantly contribute to the Al Dhafra region’s economy by boosting the local industrial
ww.linkedin.com/in/khaled-al-awadi-80201019/

ecosystem, attracting further investments and creating a vital energy trade gateway in Al Ruwais
Industrial City.'
Once completed, the project will consist of two 4.8 million metric tonnes per annum (mmtpa) LNG
liquefaction trains with a total capacity of 9.6mmtpa, and is set to more than double ADNOC’s LNG
production capacity, from 6mmtpa to around 15mmtpa.
Natural gas is a key transition fuel and the low-carbon LNG project in Al Ruwais Industrial City
underscores ADNOC’s commitment to decarbonization, sustainability and innovation.
About ADNOC LNG
Our liquefaction facilities supply LNG from gas produced in ADNOC’s offshore operations for export
to utilities and industrial customers around the globe. Our LNG facilities are located on Das Island,
an oil and gas operations hub that also plays a major role in ADNOC’s upstream production
operations.
ADNOC LNG was established in 1973 as the first LNG production company in the Arabian Gulf.
The Das Island facility is the third longest established LNG operation still in production globally, a
testament to our focus on operational excellence and asset integrity. Since 1977, when operations
began, we have delivered over 2,800 cargoes to customers around the world.
Our three LNG trains treat and super-cool natural gas, bringing its temperature down to below -
160°C, liquefying it ready for loading on to a fleet of LNG tankers. It is shipped to customers around
the globe who operate regasification facilities, turning the LNG back into gas that is used to generate
power and supply end customers.
On Das Island, in addition to LNG, we produce liquefied petroleum gas (LPG), paraffinic naphtha
and sulfur, both for export and transmission onshore to the Habshan Complex. Our dedicated LNG
liquefaction and export terminal facilities currently have a capacity of 6 mtpa. ADNOC has ambitions
to significantly grow this capacity and its presence in the global LNG market.
Our LNG is being shipped to a growing range of international markets in Asia, Europe and beyond.

UAE inaugurates hurricane-resistant power plant in Caribbean
OGN/TradeArabia News Service
The UAE-Caribbean Renewable Energy Fund (UAE-CREF), announced that the hurricane-resistant
power project developed by Masdar for Antigua and Barbuda to withstand even the fiercest winds,
is now operational.
In the wake of Hurricane Irma, which destroyed 95 percent of Barbuda on September 6, 2017, and
forced all 1,800 residents to be evacuated to Antigua, the climate resistant plant is designed to
survive 265 km-per-hour winds and provide a safe, reliable, and sustainable supply of electrical
power for the island.
The hybrid solar, batteries, and back-up diesel project is already helping to support the twin-island
nation’s objective of meeting 86 percent of its electricity sources from renewable energy by 2030.
The Green Barbuda project was formally inaugurated at an event on the island of Barbuda by Hon.
Gaston Browne, Prime Minister of Antigua and Barbuda, Hazza Ahmed Al Kaabi, the UAE
Ambassador to the Republic of Cuba, and Ambassador Brian Challenger, the Ministry of Energy of
Antigua and Barbuda, accompanied by a delegation from local and state entities.
Masdar developed and implemented the Green Barbuda project as part of its work under UAE-
CREF, the largest renewable energy investment of its type in the region.
Through the establishment of the UAE-Caribbean
Renewable Energy Fund (UAE-CREF), ADFD committed a
grant of AED183.6 million (US$ 50 million) to finance
renewable energy projects benefiting 16 Caribbean
countries.

Fully financed by the Abu Dhabi Fund for Development (ADFD), the $50 million UAE-CREF was
launched at Abu Dhabi Sustainability Week 2017 as a partnership between the Ministry of Foreign
Affairs (MoFA), ADFD and Masdar.
New Zealand, Antigua and Barbuda and the CARICOM Development Fund (CDF) also provided
funding for the project.
The bespoke project combines a hybrid solar photovoltaic (PV) plant, featuring 720 kilowatts-peak
(kWp) of solar PV panels, connected to a 863 kilowatt-hour (kWh) battery, and capable of fully
meeting the island’s current daytime energy demand. The plant will enable Barbuda to reduce
annual diesel fuel consumption by 406,000 liters and cut carbon dioxide emissions by over 1 million
kg.
Mohamed Saif Al Suwaidi, Director General of ADFD, said: “It is a landmark achievement for the
UAE-CREF to have
driven an energy
transformation in
Antigua and Barbuda at
such a scale. The
project took into
consideration the
country’s high
dependence on fossil
fuel imports for energy
needs despite having
the potential to exploit
its solar, wind and geothermal power.
This initiative highlights the extraordinary
capability of clean energy to drive socioeconomic
development. This is why ADFD is multiplying it
effort to accelerate the energy transition in the
developing world, as the UAE leads the way to a
low-carbon and zero-emission future.”
Sultan Al Shamsi, Assistant Minister of Foreign
Affairs for International Development Affairs,
commended the project, which will both enhance sustainable development efforts in Caribbean
countries, and consolidate the UAE's leading role in providing foreign aid, and promoting global
peace and prosperity.
"Renewable energy plays a key role in enhancing energy security within emerging markets,
especially in small island countries that are vulnerable to the consequences of climate change,” he
said.
He added: “The UAE is committed to advancing global climate change initiatives, as evidenced by
its successful hosting of COP28 in 2023. The conference emphasized inclusivity and engagement
with diverse stakeholders, resulting in the historic UAE Consensus among 198 Parties.

This underscores the UAE's commitment to ushering in a new era of climate action. In Antigua and
Barbuda, renewable energy projects not only ensure a sustainable future but also address
immediate needs, aligning with the Sustainable Development Goals.”
Prime Minister of Antigua and Barbuda, Gaston Browne, said, “The Government and people of
Antigua and Barbuda are extremely appreciative of the assistance from the UAE in our efforts to
achieve sustainable development. In that regard the Green Barbuda electricity project has been a
truly transformative one for Barbuda.
It harnesses our indigenous renewable energy resources and has provided for the transfer of
cutting-edge technologies as well as capacity building at the local level to manage the project. The
project supports Antigua and Barbuda’s efforts to reduce its dependence on costly and volatile
imported petroleum fuels and to develop our own renewable energy resources.
At the same time, it also enables us in both adapting to and mitigating the adverse impacts of climate
change. We look forward to continuing to collaborate with the UAE and other partners in expanding
this project as a showcase of sustainable energy in the Caribbean.”
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, “This is a proud moment for
everybody connected with this project to deliver clean energy to the people of Antigua and Barbuda.
The Green Barbuda project will ensure a more resilient energy supply for the country, helping to
accelerate economic growth and provide tangible benefits to local communities. Here at Masdar,
we look forward to supporting other nations across the region through the UAE-CREF initiative.”
The UAE-CREF initiative intends to deploy renewable energy projects in 16 Caribbean countries in
three cycles to reduce energy costs, increase energy access, and enhance climate resilience.
Projects have already been successfully launched in the Bahamas, Barbados, and Saint Vincent
and the Grenadines. --

India's coal-fired electricity output & emissions hit record highs
Reuters
Cumulative clean-powered electricity generation was 26.6 TWh in January, which was 11.2% down
from January 2023 and resulted in clean power's share of India's total electricity generation mix
dropping to a 5-year low of 18.4% last month
LITTLETON, Colorado - India's coal-fired electricity generation scaled a new high in January 2024
as the world's second largest coal user after China cranked coal's share of the country's electricity
generation mix to a record 80%.
Coal-powered electricity output was 115 terawatt hours (TWh) in January 2024, a new high and up
10% from the same month in 2023, data from energy think tank Ember shows.
Emissions from coal generation in January hit 104.5 million metric tons of carbon dioxide (CO2),
while emissions from all power sources hit 107.5 million tons, which marked a record in both
categories and a 10% rise from January 2023.
CLEAN CUTS
The increase in coal generation came as output from solar, wind and hydro facilities dropped by
3%, 19% and 21.4% respectively from the same month a year ago.
Cumulative clean-powered electricity generation was 26.6 TWh in January, which was 11.2% down
from January 2023 and resulted in clean power's share of India's total electricity generation mix
dropping to a 5-year low of 18.4% last month.

Going forward, utilities should be able to deploy growing volumes of clean power onto India's
electricity grids, as the country's clean power generation total tends to peak around August when
solar, wind and hydro output have historically scaled their highs for the year.
That growth in output from renewables and hydro facilities should allow clean power's share of the
national generation mix to climb as well, to a peak of around 30%-32% during the third quarter of
the year.
FOSSIL FOUNDATION
Despite the expected climb in clean energy generation, rising demand for air conditioning during the
warmest months of the year means that power generation firms are unlikely to be able to make big
cuts to the use of coal and other fossil fuels.
Indeed, as India's total power consumption continues to climb at a faster pace than utilities can add
supply, power firms have been forced to boost output from coal and natural gas alongside clean
power generation just to keep up with the country's round-the-clock electricity use.
This means that India's power sector emissions rarely deviate much over the course of the year,
and tend to climb to new highs each year as total generation from fossil fuel and clean energy
sources climb.
In 2023, India's total power sector emissions hit 1.18 billion tons of CO2, undergoing an 8.6% climb
on the year.
India's power firms are likely to smash that record in 2024 if they sustain the high levels of coal
generation seen in January through the coming months, even if output from clean energy sources
also scales new highs later in the year.

Britain vows to build new gas power stations
AFP + Reuters + NewBase
The UK has spearheaded low-carbon energies such as nuclear, solar and wind power in a strategy
to combat sky-high domestic electricity and gas bills
Prime Minister Rishi Sunak's government Tuesday pledged to build new gas-fired power stations to
boost energy security, drawing criticism over his climate policies ahead of a general election this
year.
The Conservative government, which aims to achieve net zero carbon emissions by 2050,
announced in a statement that it would seek to construct the gas power plants to avert a threat of
energy blackouts.
A photograph taken on April 24, 2022 shows an aerial view of the Fawley Refinery (rear), the biggest
oils refinery in the UK processing 16 million tonnes per year, in Fawley, south England. - Fawley
Refinery is owned by Esso Petroleum Company Limited, a subsidiary of Exxon Mobil Corporation.
(Photo by Daniel LEAL / AFP) Image used for illustrative purpose.
The UK has spearheaded low-carbon energies such as nuclear, solar and wind power in a strategy
to combat sky-high domestic electricity and gas bills, which rocketed after key producer Russia
invaded Ukraine in early 2022, cutting off gas supplies and sparking a cost-of-living crisis.
"The government has committed to support the building of new gas power stations to maintain a
safe and reliable energy source for days when the weather forecast doesn't power up renewables,"
it said in Tuesday's statement.

Sunak added that Britain needed to reach its net zero target "in a sustainable way that doesn't leave
people without energy on a cloudy, windless day".
The independent Climate Change Committee (CCC), a UK body which advises the state, conceded
last year that a "small amount" of gas-fired power in 2035 was "compatible with a decarbonised
power system" in order to provide balance and ensure security of energy supplies.
Sunak last year softened his administration's net zero goals, specifically by delaying a ban on the
sale of petrol and diesel cars by five years to 2035.
The UK has also issued a swathe of new oil and gas exploration licences to lift energy supplies
amid Russian President Vladimir Putin's war in Ukraine.
"This is the latest step in efforts to reach net zero in a sustainable, pragmatic way that rids the UK
of the need to rely on foreign dictators like Putin," the British government added Tuesday.
"The UK led the way on banning imports of Russian gas and is delivering new sources of home-
grown energy: with new nuclear power plants, record investment in renewables, and new oil and
gas licences in the North Sea."
The announcements sparked anger from environmentalists who argue they are counter to the
nation's net zero ambitions.
"The government's cunning plan to boost energy security and meet our climate goals is to make
Britain more dependent on the very fossil fuel that sent our bills rocketing and the planet's
temperature soaring," said Greenpeace UK policy director Doug Parr.
"The only route to a low-cost, secure and clean energy system is through attracting massive private
investment to develop renewables and upgrade our ageing grid, but this government has failed on
both fronts."

Russian Major Oil Refinery on Fire After Drone Strike
Bloomberg
A Ukrainian drone attack hit one of Russia’s biggest refineries in an assault President Vladimir Putin
said was aimed at disrupting his presidential election later this week.
It was not immediately clear how much damage had been caused to Rosneft PJSC’s largest oil
refinery, which was hit in the latest wave of drone attacks on Russia.
The strike on the refinery in Ryazan about 200 kilometers (124 miles) southeast of Moscow was on
a facility that has a capacity of 17.1 million tons a year, or around 340,000 barrels a day. It is a major
supplier of motor fuels for Russian regions around the capital. It’s the second casualty of Ukrainian
strikes that have damaged facilities accounting for more than 10% of Russia’s oil-processing
capacity in the past two days.
Ukrainian strikes in Russian regions “are aimed at, if not frustrating the elections in Russia, then
interfering with them,” Putin said in an interview with the RIA Novosti news service published
Wednesday. “Another goal is to get some kind of trump card in a possible negotiation process.”

The Russian Defense Ministry said its forces intercepted 58 drones overnight in the Belgorod,
Bryansk, Voronezh, Kursk, Ryazan and Leningrad regions. That’s among the largest assaults in
recent months.
The attacks underline how the invasion of Ukraine that was intended to last a few days is instead
leading to growing insecurity for ordinary Russians living in regions near the border as the war
enters its third year. That’s in sharp contrast to Kremlin claims that Putin is the guarantor of the
country’s defense.
The drone attack “started a fire” that was later extinguished, regional Governor Pavel Malkov said
Wednesday on his Telegram channel, without giving details of the extent of any damage. Two
people were hospitalized, the Tass news service reported.
Later on Wednesday, the independent Novoshakhtinsk refinery in Russia’s southern Rostov region
halted operations after a drone strike, regional governor Vasily Golubev said on Telegram, while
giving no details of any damage. The facility has a capacity of 5.6 million tons per year, or around
112,000 barrels a day.
Since the start of this year, Ukraine has used drones to target important Russian oil-processing
plants from the Black Sea to the Baltic Sea. As fighting on the front lines swings in Moscow’s favor,
Kyiv has been trying to hamper the country’s oil-product exports and its ability to send fuel to its
forces. The initial flurry of attacks in February affected almost a fifth of the country’s crude-
processing capacity, but by early March the industry was already recovering.

Ukrainian President Volodymyr Zelenskiy said it was “totally fair” to inflict losses on the Russian
state in retaliation for missile and drone attacks that are killing and injuring civilians in his country.
“I think everyone sees that our drones work, and they work at long distance,” Zelenskiy said in an
address late Tuesday. “Our ability for long-distance strikes is the real way to move towards security
for everyone.”
The latest wave of attacks that started Tuesday damaged a unit of Lukoil PJSC’s Norsi refinery in
Nizhny Novgorod and hit an oil depot in the Oryol region. Ukrainian drones also repeatedly targeted
Surgutneftegas PJSC’s major export-focused Kinef refinery in Kirishi, on the Baltic coast, according
to Leningrad region Governor Alexander Drozdenko.
Ukraine was targeting the refineries in Ryazan, Kirishi and Norsi, a Ukrainian official with knowledge
of the matter said.
The governor of Russia’s southern Voronezh region, Aleksandr Gusev, said 30 drones were
destroyed. Some infrastructure and residential properties sustained “minor damage,” he said.
The attacks are taking place as Russia prepares for the March 15-17 presidential election that’s
been tightly controlled by the Kremlin to deliver an overwhelming victory for Putin and another six
years in power.
Ukraine has launched drones targeting Russian infrastructure and industrial facilities, as it seeks to
undermine the Kremlin’s war effort and retaliate for waves of missile and drone assaults on its own
territory since the February 2022 invasion began.
The strikes on oil facilities also aim to disrupt Russia’s exports and fuel supplies to the Russian army
on the front lines.
“We are fighting everything that finances Russia’s army and the war,” Andriy Yermak, Zelenskiy’s
chief of staff said, after Russian air strikes killed and injured civilians in three cities overnight. “Russia
is fighting civilians and apartment blocks.”
In his interview with state-run RIA, Putin said Russia would demand security guarantees to consider
talks to end the war in Ukraine and reiterated that “realities on the ground” should be the basis of
any negotiations.
“We are primarily interested in the security of Russia,” Putin said. “We will proceed from that.”
Asked if a “fair deal” with the West is possible, Putin replied: “I don’t trust anyone, but we need
assurances.”
Ukraine’s government has previously rejected any deal involving territorial concessions that would
reward Putin’s aggression. Putin has declared four annexed regions of eastern and southern
Ukraine to be “forever” part of Russia, even as his forces don’t fully control them.
Russian troops have made recent advances as the government in Kyiv struggles to keep its military
supplied with munitions following delays in aid from its US and European allies. Zelenskiy claimed
this week that his forces have halted Russia’s offensive and were stabilizing the front line.
Putin said the thought of using tactical nuclear weapons in Ukraine had never crossed his mind and
there’s never been a need for them. He didn’t think Russia and the US were heading toward a
nuclear conflict.
Still, he said countries that declared they had no red lines toward Russia should understand that
Russia would respond in the same way.

NewBase March 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 as US inventory drop, attacks on Russian refineries
Reuters + NewBase
Oil extended gains in Asian trade on Thursday after a surprise drop in U.S. crude stockpiles
indicated strengthening demand, while possible supply disruptions following Ukrainian attacks on
Russian refineries also underpinned prices.
Brent futures rose 10 cents, or 0.12%, to $84.13 a barrel at 0115 GMT, while U.S. West Texas
Intermediate (WTI) crude was up 7 cents, or 0.9%, at $79.79 per barrel.
Ukrainian drone strikes on Russian refining facilities continued for a second day on Wednesday,
causing a fire at Rosneft's (ROSN.MM), opens new tab biggest refinery in one of the most serious
attacks against Russia's energy sector in recent months.
After seriously damaging Lukoil's (LKOH.MM), opens new tab refinery in Nizhny Novgorod on
Tuesday, Ukraine hit refineries in the Rostov and Ryazan regions, Russian officials said.
In Ryazan, a drone attack caused a fire at Rosneft's refinery. Two sources familiar with the situation
told Reuters that the refinery had been forced to shut down two primary oil refining units.
Oil price special
coverage
Both contracts had risen about 3% to a four-month high on Wednesday
on the elevated U.S. demand outlook and heightened geopolitical risk.

Russian President Vladimir Putin told western countries on Wednesday in an interview with state
media that Russia was technically ready for nuclear war.
On the demand side, U.S. crude oil stockpiles fell unexpectedly as processing increased and
gasoline inventories decreased amid strong demand ahead of the summer driving season, the
Energy Information Administration (EIA) said on Wednesday.
Crude inventories ended six straight weeks of builds to fall by 1.5 million barrels to 447 million
barrels in the week ended March 8, the EIA said, compared with analysts' expectations in a Reuters
poll for a 1.3 million barrel rise.
Gasoline inventories slid for a sixth straight week, falling by 5.7 million barrels to 234.1 million
barrels, the EIA said, triple the expectations for a 1.9 million-barrel draw.
Stocks of motor fuel at the U.S. Gulf Coast fell to their lowest since November 2022, while finished
motor gasoline supplied, a proxy for demand, edged up 30,000 barrels per day to more than 9
million bpd for the first time this year.

NewBase Specual Coverage
The Energy world –March 14 -2024
CLEAN ENERGY
After slight rise in 2023, methane emissions from fossil fuels are
set to go into decline soon
IEA
New IEA analysis shows that fully implementing existing pledges on methane would deliver the majority, but not all,
of the emissions cuts needed this decade to align with 1.5 °C,
Methane emissions from the energy sector remained near a record high in 2023
We estimate that the production and use of fossil fuels resulted in close to 120 million tonnes (Mt)
of methane emissions in 2023, while a further 10 Mt came from bioenergy – largely stemming from
the traditional use of biomass. Emissions have remained around this level since 2019, when they
reached a record high. Since fossil fuel supply has continued to expand since then, this indicates
that the average methane intensity of production globally has declined marginally during this period.
The latest IEA Global Methane Tracker is based on the most recently available data on methane
emissions from the energy sector and incorporates new scientific studies, measurement campaigns,
and information collected from satellites.
Analysis of this data reveals both signs of progress and some worrying trends. On one hand, more
governments and fossil fuel companies have committed to take action on methane. Global efforts
to report emissions estimates consistently and transparently are strengthening, and studies suggest
emissions are falling in some regions.
However, overall emissions remain far too high to meet the world’s climate goals. Large methane
emissions events detected by satellites also rose by more than 50% in 2023 compared with 2022,
with more than 5 Mt of methane emissions detected from major fossil fuel leaks around the world –
including a major well blowout in Kazakhstan that went on for more than 200 days.

Close to 70% of methane emissions from fossil fuels come from the top 10 emitting countries
Of the nearly 120 Mt of emissions we estimate were tied to fossil fuels in 2023, around 80 Mt came
from countries that are among the top 10 emitters of methane globally. The United States is the
largest emitter of methane from oil and gas operations, closely followed by the Russian Federation
(hereafter “Russia”).
The People’s Republic of China (hereafter “China”) is by far the highest emitter in the coal sector.
The amount of methane lost in fossil fuel operations globally in 2023 was 170 billion cubic metres,
more than Qatar’s natural gas production.
The methane emissions intensity of oil and gas production varies widely. The best-performing
countries score more than 100 times better than the worst. Norway and the Netherlands have the
lowest emissions intensities.
Countries in the Middle East, such as Saudi Arabia and the United Arab Emirates, also have
relatively low emissions intensities. Turkmenistan and Venezuela have the highest. High emissions
intensities are not inevitable; they can be addressed cost-effectively through a combination of high
operational standards, policy action and technology deployment. On all these fronts, best practices
are well established.
Cutting methane emissions from fossil fuels by 75% by 2030 is vital to limit warming to 1.5 °C
The energy sector accounts for more than one third of total methane emissions attributable to
human activity, and cutting emissions from fossil fuel operations has the most potential for major
reductions in the near term. We estimate that around 80 Mt of annual methane emissions from fossil
fuels can be avoided through the deployment of known and existing technologies, often at low – or
even negative – cost.

In our Net Zero Emissions by 2050 (NZE) Scenario – which sees the global energy sector achieving
net zero emissions by mid-century, limiting the temperature rise to 1.5 °C – methane emissions from
fossil fuel operations fall by around 75% by 2030. By that year, all fossil fuel producers have an
emissions intensity similar to the world’s best operators today. Targeted measures to reduce
methane emissions are necessary even as fossil fuel use begins to decline; cutting fossil fuel
demand alone is not enough to achieve the deep and sustained reductions needed.
Full implementation of COP28 and other pledges would cut fossil fuel methane emissions by 50%
The COP28 climate summit in Dubai produced a host of new pledges to accelerate action on
methane. Importantly, the outcome of the first Global Stocktake called for countries to substantially
reduce methane emissions by 2030.
Additionally, more than 50 oil and gas companies launched the Oil and Gas Decarbonization
Charter (OGDC) to speed up emissions reductions within the industry, new countries joined the
Global Methane Pledge, and new finance was mobilised to support the reduction of methane and
greenhouse gases (GHGs) other than carbon dioxide (CO2).
Substantial new policies and regulations on methane were also established or announced in 2023,
including by the United States, Canada, and the European Union and China published an action
plan dedicated to methane emission control.
A series of supportive initiatives have been launched to accompany these efforts, such as
the Methane Alert and Response System and the Oil and Gas Climate Initiative’s Satellite
Monitoring Campaign.
Taken together, we estimate that if all methane policies and pledges made by countries and
companies to date are implemented and achieved in full and on time, methane emissions from fossil
fuels would decline by around 50% by 2030. However, in most cases, these pledges are not yet
backed up by detailed plans, policies and regulations.

The detailed methane policies and regulations that currently exist would cut emissions from fossil
fuel operations by around 20% from 2023 levels by 2030.
The upcoming round of updated Nationally Determined Contributions (NDCs) under the Paris
Agreement, which will see countries set climate goals through 2035, presents a major opportunity
for governments to set bolder targets on energy-related methane and lay out plans to achieve them.
Around 40% of today’s methane emissions from fossil fuels could be avoided at no net cost
Methane abatement in the fossil fuel industry is one of the most pragmatic and lowest cost options
to reduce greenhouse gas emissions. The technologies and measures to prevent emissions are
well known and have already been deployed successfully around the world.
Around 40% of the 120 Mt of methane emissions from fossil fuels could be avoided at no net cost,
based on average energy prices in 2023. This is because the required outlays for abatement
measures are less than the market value of the additional methane gas captured and sold or used.
The share is higher for oil and natural gas (50%) than for coal (15%).
There are many possible reasons why companies are not deploying these measures even though
they pay for themselves. For example, the return on investment for methane abatement projects
may be longer than for other investment opportunities.
There may also be a lack of awareness regarding the scale of methane emissions and the cost-
effectiveness of abatement. Sometimes infrastructure or institutional arrangements are inadequate,
making it difficult for companies to receive the income from avoided emissions.
Regardless of the value of captured gas, we estimate that it would be cost-effective to deploy nearly
all fossil fuel methane abatement measures if emissions are priced at about

USD 20/tonne CO2-equivalent. Tapping into this potential will require new regulatory frameworks,
financing mechanisms and improved emissions tracking.
Delivering the 75% cut in methane emissions requires USD 170 billion in spending to 2030
We estimate that around USD 170 billion in spending is needed to deliver the methane abatement
measures deployed by the fossil fuel industry in the NZE Scenario. This includes around USD 100
billion of spending in the oil and gas sector and USD 70 billion in the coal industry. Through 2030,
roughly USD 135 billion goes towards capital expenditures, while USD 35 billion is for operational
expenditures.
Fossil fuel companies should carry the primary responsibility for financing these abatement
measures, given that the amount of spending needed represents less than 5% of the income the
industry generated in 2023. Nonetheless, we estimate that about USD 45 billion of spending in low-
and middle-income countries requires particular attention, as sources of finance are likely to be
more limited. To date, we estimate that external sources of finance targeted at reducing methane in
the fossil fuel industry total less than USD 1 billion, although this should catalyse a far greater level
of spending.

New tools to track emissions will bring a step change in transparency
Better and more transparent data based on measurements of methane emissions is becoming
increasingly accessible and will support more effective mitigation. In 2023, Kayrros, an analytics
firm, released a tool based on satellite imagery that quantifies large methane emissions on a daily
basis and provides country-level oil and gas methane intensities.
GHGSat, another technology company, increased its constellation of satellites in orbit to 12 and
started to offer targeted monitoring of offshore methane emissions, while the United Nations
Environment Programme (UNEP) Methane Alert and Response System (MARS) ramped up usage
of satellites to detect major methane emission events and alert government authorities and involved
operators.
Despite this progress, little or no measurement-based data is used to report emissions in most parts
of the world – which is an issue since measured emissions tend to be higher than reported
emissions. For example, if companies that report emissions to UNEP’s Oil & Gas Methane
Partnership 2.0 were to be fully representative of the industry globally, this would imply that global
oil and gas methane emissions in 2023 were around 5 Mt, 95% lower than our estimate.
Total oil and gas emissions levels reported by countries to the UN Framework Convention on
Climate Change are close to 40 Mt, about 50% lower than our 2023 estimate. There are many
possible reasons for these major discrepancies, but they will only be resolved through more
systematic and transparent use of measured data.
Regardless, all assessments make clear that methane emissions from fossil fuels operations are a
major issue and that renewed action – by governments, companies, and financial actors – is
essential.

NewBase Energy News 14- March - Issue No. 1707 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.
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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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