NewBase 19-December-2022 Energy News issue - 1575 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 19 December 2022 No. 1575 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Aramco, TotalEnergies to build $11bn Saudi petchem complex
Reuters + NewBase
Saudi oil giant Aramco and TotalEnergies have taken the final investment decision for the
construction of a world scale petrochemical facility in Saudi Arabia.
The ‘Amiral’ complex will be owned, operated, and integrated with the existing Satorp refinery
located in Jubail on Saudi Arabia’s eastern coast. The investment decision is subject to customary
closing conditions and approvals.
The petrochemical facility will enable Satorp to convert internally produced refinery off-gases and
naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher value chemicals,
helping to advance Aramco’s liquids to chemicals strategy.
Aramco said the complex will comprise a mixed feed cracker capable of producing 1.65 million
tonnes per annum of ethylene, the first in the region to be integrated with a refinery. It will also
include two state-of-the-art polyethylene units using Advanced Dual Loop technology, a butadiene
extraction unit, and other associated derivatives units.The project alone represents an investment
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of around $11 billion, of which $4 billion will be funded through equity by Aramco (62.5%) and
TotalEnergies (37.5%). Its construction is scheduled to begin during the first quarter of 2023 with
commercial operation targeted to start in 2027.
Aramco President & CEO Amin H. Nasser said: "Our long-standing relationship with TotalEnergies
has been further strengthened by this important project, which represents an opportunity for us to
showcase the potential for cutting edge liquids to chemicals technologies that support the circular
economy."
"With this collaboration we aim to expand the value chain by producing advanced chemicals more
efficiently than ever before, accelerating industrial progress in the Kingdom," he stated.
TotalEnergies Chairman and CEO Patrick Pouyanné said: "We are delighted to write a new page
of our joint history by launching this expansion project, building on the successful development of
SATORP, our biggest and most efficient refining and petrochemicals platform in the world. It also
deepens the exemplary relationship between our two companies over many decades in the
Kingdom of Saudi Arabia."
"This world-class complex also fits with our strategy to expand sustainably in petrochemicals by
maximizing the synergies within our major platforms," he added.
Eventually, the complex will provide feedstock to other petrochemical and specialty chemical plants,
located in the Jubail industrial area, which will be built, owned and operated by globally renowned
downstream investors, entailing an estimated additional $4 billion of investments.
This will support the establishment of key manufacturing industries such as carbon fibers, lubes,
drilling fluids, detergents, food additives, automotive parts and tyres, said the global oil major. The
overall complex, including adjacent facilities, is expected to create 7,000 local direct and indirect
jobs, it stated.
In July, Satorp was the first Mena refinery to be certified ISCC+, an international recognition towards
its circular initiatives, such as the recycling of plastic and used cooking oil. A first batch of recycled
plastic was processed by the refinery last month, it added.

Saudi Aramco, Sinopec and Sabic in mega projects in KSA, China
TradeArabia News Service
Saudi Aramco, China Petroleum and Chemical Corporation (Sinopec) and Sabic will explore setting
up a petrochemical complex to be integrated with an existing refinery in Yanbu and build a greenfield
project in Gulei, in China’s Fujian Province.
For the Yanbu project, the entities have signed a Memorandum of Understanding (MoU) to study
the economic and technical feasibility of developing a petchem complex.
Heads of agreement
Aramco, one of the world’s leading integrated energy and chemicals firms, and Sinopec, one of the
world’s largest energy and petrochemical corporations, have signed heads of agreement for the
greenfield project in China with plans to include a 320,000 barrels-per-day refinery and 1.5 million
tonnes-per-year petrochemical cracker complex. It is expected to commence operations by the end
of 2025.
Mohammed Y Al Qahtani, Aramco Senior Vice President of Downstream, said: “These projects
represent an opportunity to contribute to a modern, efficient and integrated downstream sector in
both China and Saudi Arabia. They also underpin our long-term commitment to remain a reliable
supplier of energy and chemicals to Asia’s largest economy.”
Reliable energy supplier to China
The announcements support Aramco’s role as a reliable energy supplier to China as the company
seeks to expand its liquids to chemicals capacity to up to 4 million barrels per day by 2030.
The collaboration also aligns with Sinopec’s vision to become a world-leading energy and
petrochemical corporation, providing quality products and reliable energy to benefit the lives of
people worldwide.

Oman: OQ completes work on Ras Markaz crude storage terminal
Oman Observer + NewBase
Oman-based OQ, a global integrated energy group, has completed the basic construction works of
Ras Markaz crude oil storage terminal whose storage capacity is about 26.7 million barrels.
This oil storage and export project, carried out by Oman Tank Terminal Company (OTTCO), which
is part of the global integrated energy group OQ, is the biggest of its kind in the region,
reported Oman News Agency (ONA).
The project was built according to the international standards and100% nationally financed.
Ras Markaz crude oil storage terminal, which is located in the Governorate of Al Wusta, is one of
the strategic projects in Oman, thanks to its location that mediates the Asian and African markets.
It is scheduled to receive the first shipment of crude oil in the first quarter of 2023 to secure the
needs of Duqm refinery after the refinery was connected with Ras Markaz through a pipeline that
extends for 80 kilometres. Eight huge reservoirs were constructed at Ras Markaz for storing the
refinery’s oil.
Salem Marhoon Al Hashemi, General Manager of the project, said: “Ras Markaz crude oil storage
terminal aims to store and mix all kinds of crude oil in large quantities. The project has very advanced
infrastructure that is capable to meet the needs of local and international markets.
“We aspire to turn this terminal into the biggest project for storing crude oil in the Middle East to
become an important international hub for trading crude oil thanks to its strategic location
overlooking the Arabian Sea and Indian Ocean. This project will cement the position of Oman as a
main hub for storing oil in the region.”
Al Hashemi explained: “Oman relies currently on Mina Al Fahl in exporting crude oil. Therefore, the
addition of Ras Markaz boosts the strategic importance of securing the export of crude oil abroad
due to its distinguished location. The terminal is located outside the Strait of Hormuz. This

encourages many investors to perform the businesses of importing, storing, exporting and mixing
crude oil. Additionally, it will provide an added value for mixing different kinds of oil with the Omani
crude oil.”
He pointed out that the area of the current completed first phase of the project is 10 sq km
approximately with a capacity of about 26.7 million barrels. Al Hashemi also explained that the total
area allocated for the project is 40 square kilometres, which is customized to store up to about 200
million barrels of oil. The company will increase its capacity according to the growing demand from
investors.
The General Manager of the project added
that the project consists of two parts, the first
of which includes marine works and has been
completely executed. This part comprises of
the floating import and export terminal, which
is about 7 km offshore, along with two
pipelines with a diameter of 42 inches, in
addition to the systems associated with it.
The second part of the project includes
constructing the oil pumping systems, water
treatment systems, the construction of
reservoirs, the power stations network and
other associated systems.
Al Hashemi further said that the floating import
and export terminal was built to receive the biggest
oil tankers in the world. He explained that the terminal was connected with four main pumps to push
crude oil to the storage area, which is located at an altitude of more than 100 meters from sea level.
The site is ready to add additional pumps to keep pace with the demand for oil storage at the station
whenever a need for expansion arises.
He concluded that the storage period and selection of services are subject to technical
considerations and the preferences of investors as well as oil trading and marketing companies. He
stressed that the storage of crude oil primarily follows the standards set locally and globally.
96% construction work at Duqm Refinery project completed
Muscat: Duqm Refinery construction work has reached 96 per cent completion by the end of
November 2022 and programmes have been launched to achieve operational readiness.
The Duqm Refinery project is one of the major projects being implemented in the Special Economic
Zone at Duqm (SEZD), and it serves as the starting line for the plan to transform Duqm into one of
the largest industrial and economic centres in the region.
The refinery is also one of the most important tributaries of development in the SEZD, as it provides
direct and indirect job opportunities and development opportunities for projects, directly and
indirectly, related to the refinery.
The Duqm Refinery project is a joint venture between the OQ Group and Kuwait Petroleum
International. It is located in the heart of the Special Economic Zone at Duqm, which is characterised
by its strategic location. The location has a competitive advantage because it is situated on the path
of international shipping lines on the Indian Ocean and the Arabian Sea.

The project includes three main packages, the first package includes the main processing units of
the refinery, the second includes facilities and services, and the third includes three sub-packages,
which are storage and export facilities for liquid and bulk petroleum materials located in the port of
Duqm, crude oil storage facilities in Ras Markaz and 81-km pipeline transportation of crude oil from
Ras Markaz to Duqm Refinery.
The Duqm Refinery includes main processing units capable of producing diesel, aviation fuel,
naptha, liquefied petroleum gas, sulfur and petroleum coke. To become a world-class refining
company committed to providing high-quality oil products to customers all over the world, which
enhances economic growth
in the Duqm region and the refining position of the Sultanate of Oman to exceed 500,000 barrels
per day of refined products when Duqm refinery operations, which have a capacity of 230,000
barrels per day, start operations. It is capable of handling various types of crude oil, including Omani
and Kuwaiti crude.
It is noteworthy that the value of contracts for the supply of local goods and services that were
awarded to local companies amounted to $1.7 billion, of which $ 166 million were for contracts for
manufactured goods in the Sultanate of Oman, in addition to awarding more than $398 million to
small and medium enterprises (SMEs), of which $36 million were to registered enterprises in Al
Wusta Governorate alone.

U.S. White House Begins Plan to Refill US Emergency Oil Reserves
Bloomberg + NewBase
The Biden administration is making good on a plan to replenish the nation’s emergency oil reserves,
starting with a 3 million barrel purchase of crude.
The purchase of barrels for February delivery follows a historic 180 million barrel release of oil from
the US Strategic Petroleum Reserve to tame high gasoline prices amid Russia’s invasion of Ukraine
and other supply issues.
“This repurchase is an opportunity to secure a good deal for American taxpayers by repurchasing
oil at a lower price than the $96 per barrel average price it was sold for, as well as to strengthen
energy security,” the Department of Energy said in a notice Friday announcing the plan.
The announcement caps a year that saw President Joe Biden make unprecedented use of the SPR
to help curb soaring domestic costs of fuel. The price of oil has come down in recent months and
it’s now almost 40% off the highs seen in the immediate aftermath of the Russian invasion. Even
so, the administration has repeatedly said it reserves the right to do more sales if needed.
US benchmark oil futures initially pared some losses on the news before eventually settling down
2.4% at $74.29 a barrel.
The Biden administration previously laid out a plan to repurchase oil for the approximately 700
million barrel-strong reserve when the price of crude hit around $70 a barrel. The SPR — the world’s
largest emergency supply — was created in 1975 in the wake of the Arab oil embargo.
In addition, the DOE is planning a roughly 2 million barrel crude oil exchange to meet emergency
supply needs caused by the shutdown of TC Energy Corp.’s Keystone pipeline, a senior
administration official said Friday. In an exchange, an entity — often a refiner — borrows from the

SPR for a brief period due to extreme circumstances and later replaces it in full, along with a
premium of an additional amount of oil, according to the agency’s website.
The purchases are being made using a new rule tweak that allows the Energy Department to buy
oil using fixed-price contracts. Previously, the DOE could enter into contracts for future delivery, but
the price paid reflected prices at the time the product was delivered.
About the SPR
The Strategic Petroleum Reserve (SPR), the world's largest supply of emergency crude oil was
established primarily to reduce the impact of disruptions in supplies of petroleum products and to
carry out obligations of the United States under the international energy program. The federally-
owned oil stocks are stored in huge underground salt caverns at four sites along the coastline of
the Gulf of Mexico. The sheer size of the SPR (authorized storage capacity of 714 million barrels)
makes it a significant deterrent to oil import cutoffs and a key tool in foreign policy.
SPR oil is sold competitively when the President finds, pursuant to the conditions set forth in the
Energy Policy and Conservation Act (EPCA), that a sale is required. Such conditions have only
existed three times, most recently in June 2011 when the President directed a sale of 30 million
barrels of crude oil to offset disruptions in supply due to unrest in Libya. During this severe energy
supply interruption, the United States acted in coordination with its partners in the International
Energy Agency (IEA). IEA countries released altogether a total of 60 million barrels of petroleum.
Additionally, the Secretary of Energy may authorize limited releases in the form of exchanges with
entities that are not part of the Federal Government. This authority allows the SPR to negotiate
exchanges where the SPR ultimately receives more oil than it released; thereby acquiring additional
oil. With the exception of the 2000 Heating Oil Exchange,

Energy crisis fuels coal comeback in Germany
Reuters + NewBase
Coal has made a comeback in Germany this year, as Europe's largest economy turns to the dirty
fuel to power it through an energy crisis.
More than a third (36.3%) of the electricity fed into the German power grids between July and
September came from coal-fired power plants, compared with 31.9 percent in the third quarter of
2021, according to German statistics office Destatis.
Long demonised by Germany's Green party, which leads some of the government's top ministries,
coal was set to be phased out by 2030, but Russia's war with Ukraine and gas export curbs, brought
coal back into favour.
Coal-to-power generation output rose by 13.3% year-on-year to 42.9 terawatt hours (TWh) in the
three months of July-September, during which
overall German power output - at 118.1 TWh -
lagged the same period in 2021 by 0.5 percent,
Destatis said.
Gas generation rose slightly, despite high
prices, as wind and hydro power output were
low, and domestic nuclear output also fell in
July-Sept. The latter was because only three
reactors remain online compared to six a year
earlier as Germany exits from the technology
following the Fukushima crisis.
General view of open cast coal mine in Welzow, Germany, October 21, 2021. REUTERS/Matthias

Under the threat of gas shortages, some coal plants that had closed or been left in reserve have re-
entered the market in Europe this year, but in most countries, the amount was limited.
"Only in Germany, with 10 gigawatts (GW), is the reversal at a significant scale. This has increased
coal power generation in the European Union, which is expected to remain at these higher levels
for some time," the IEA's annual coal market report said.
Global coal consumption reached a record high of over 8 billion tonnes this year, with Germany one
of the highest with a 19% rise, or 26 million tonnes, versus 2021, the IEA said.
Instead of shutting down 1.6 GW of lignite-fired power plants by the end of 2022 as planned, the
German government has issued a waiver to allow production until March 2024.
Germany has created a "gas replacement reserve" with a total capacity of 11.6 GW. This includes
1.9 GW of lignite and 4.3 GW of hard coal power plants which are allowed to return to the market
until 2024, the IEA report said.
The decommissioning of 2.6 GW of hard coal power capacity and 1.2 GW of lignite capacity has
been postponed.

Since Destatis started compiling statistics in 1990, 2022 will likely be the first that Germany will be
a net exporter of electricity to France, not the other way round, it said.
However, the IEA added that due to an expected ramp-up of electricity production from renewables
and a recovery in French nuclear power availability, Germany should return to being a net importer
of electricity in the next few years.

U.S. electricity 24% generation came from renewable sources
source: U.S. Energy Information Administration, Electric Power Monthly, June 2022
In the first six months of 2022, 24% of U.S. utility-scale electricity generation came from renewable
sources, based on data from our Electric Power Monthly. The renewables' share increased from
21% for the same time period last year. Renewables are the fastest-growing electricity generation
source in the United States.
Renewable generation sources include conventional hydropower, wind, solar, geothermal, and
biomass.
In the United States, most renewable electricity generation comes from hydropower, solar, and
wind. Generation from renewable energy sources has grown rapidly as renewable capacity, mostly
solar and wind, has been added to the grid.
In 2021, a record amount of new utility-scale solar capacity was installed in the United States. From
June 2021 to June 2022, 17.6 gigawatts (GW) of new utility-scale solar capacity came online,
bringing U.S. utility-scale solar capacity to 65.8 GW, according to our Preliminary Monthly Electric
Generator Inventory.
In June 2022, the United States had 137.6 GW of wind capacity, and 10% (14.3 GW) of that capacity
was installed between June 2021 and June 2022. Based on planned additions reported to us by
power plant owners and developers, another 7.0 GW of wind and 13.0 GW of solar capacity will
come online by the end of the year.
Hydropower and wind generation, which, combined, make up the majority of U.S. renewable
generation, typically peak in the first half of the year, when there are more windy days and the winter

snowpack is melting. In the second half of 2022, we expect that renewables will make up a smaller
share of generation than they did in the first half of the year (20%) as wind and hydroelectric
generation decline, based on our latest Short-Term Energy Outlook.
Renewables will supply 44% of US electricity by 2050’ – EIA
In its Annual Energy Outlook 2022 Reference case, which reflects current laws and regulations, the
US Energy Information Administration forecasts that the share of US power generation from
renewables will increase from 21% in 2021 to 44% in 2050.
This increase in renewable energy mainly consists of new wind and solar power. The contribution
of hydropower remains largely unchanged through 2050, and other renewable sources of power
generation, such as geothermal and biomass, collectively remain less than 3% of total generation.
EIA projects that the contribution of
total solar generation, including both
utility-scale solar farms and small-
scale rooftop end-use systems, will
exceed wind generation by the early
2030s. Early growth in wind and
solar is driven by federal tax credits
set to expire or significantly decline
by 2026, but declining costs for both
technologies play a significant role in
both near- and long-term growth.
Meanwhile, the total share of US
fossil fuel-fired power generation will
decrease from 60% to 44% as a
result of the continuing retirement of
coal generators, and slow growth in
natural gas-fired generation.
Although the latter increases in
absolute terms, the share of natural
gas in the total generation mix will
decrease slightly, from 37% in 2021
to 34% in 2050.
In our EIA’s projections, the natural
gas share remains consistent
despite several prospective
retirements of coal and nuclear generating units, which cause the shares from those sources to
drop by half. Generation from renewable sources increases to offset the declining coal and nuclear
shares, largely because existing regulatory programs and market factors incentivise renewable
sources.
Energy storage systems, such as stand-alone batteries or solar-battery hybrid systems, compete
with natural gas-fired generators to provide electric power generation and back-up capacity for times
when non-dispatchable renewable energy sources, such as wind and solar, are unavailable.
(Storage is not a generation source, therefore it is not included in the chart). Based on planned
projects reported to EIA, energy storage capacity is expected to increase in the coming
years. Renewables will supply 44% of US electricity by 2050’ .

NewBase December 19 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil climbs on optimism over China's demand recovery
Reuters + NewBase
Oil prices reclaimed ground on Monday after tumbling more than $2 a barrel in the previous session
as optimism from China's reopening and oil demand recovery outweighed concerns of a global
recession.
Brent crude futures rose 75 cents, or 0.95%, to $79.79 a barrel by 05.37 GMT while U.S. West
Texas Intermediate crude was at $75.00 a barrel, up 71 cents, or 0.96%.
China, the world's top crude oil importer and No. 2 oil consumer, is experiencing its first of three
expected waves of COVID-19 cases after Beijing relaxed mobility restrictions.
"Despite a surge in COVID cases, the reopening optimism and accommodative policy improve oil's
demand outlook," CMC Markets analyst Tina Teng said.
On Friday, news outlet Caixin reported that China's plans to increase flights with a goal to restore
the country's average daily passenger flight volumes to 70% of 2019 levels by Jan. 6.
Oil price special
coverage

China's diesel and gasoline exports continued to surge in November to their highest level in over a
year as refiners dashed to use up their 2022 export quotas and sell down rising inventory.
Brent and WTI rose more than 3% last week as a Canada to U.S. pipeline remained shut with its
operator TC Energy Corp (TRP.TO) focused on cleaning up an oil spill. The shutdown of the
pipeline, with a capacity to send 622,000 barrels per day of Canadian crude to U.S. refiners, has
supported prices for U.S. heavy crude grades.
An announcement by the U.S. Energy Department on Friday that it will begin repurchasing crude
oil for the Strategic Petroleum Reserve also supported outlook for stronger prices.
This will be the United States' first purchase since this year's record 180 million barrel release from
the stockpile.

NewBase Specual Coverage
The Energy world –December -01 -2022
CLEAN ENERGY
Global coal consumption to reach all-time high this year – IEA
High gas prices following Russia's invasion of Ukraine and consequent disruptions to supply have
led some countries to turn to relatively cheaper coal this year Global coal consumption is set to rise
to an all-time high in 2022 and remain at similar levels in the next few years if stronger efforts are
not made to move to a low-carbon economy, a report by the International Energy Agency (IEA) said
on Friday.
High gas prices following Russia's invasion of Ukraine and consequent disruptions to supply have
led some countries to turn to relatively cheaper coal this year.
Heatwaves and droughts in some regions have also driven up electricity demand and reduced
hydropower, while nuclear generation has also been very weak, especially in Europe, where France
had to shut down nuclear reactors for maintenance.
The IEA's annual report on coal forecasts global coal use is set to rise by 1.2% this year, exceeding
8 billion tonnes in a single year for the first time and a previous record set in 2013.
It also predicts that coal consumption will remain flat at that level to 2025 as falls in mature markets
are offset by continued strong demand in emerging Asian economies.
Global coal consumption, 2000-2025

This means coal will continue to be the global energy system’s largest single source of carbon
dioxide emissions by far. The largest increase in coal demand is expected to be in India at 7%,
followed by the European Union at 6% and China at 0.4%.
"The world is close to a peak in fossil fuel use, with coal set to be the first to decline, but we are not
there yet," said Keisuke Sadamori, the IEA’s director of energy markets and security. Europe's coal
demand has risen due to more switching from gas to coal due to high gas prices and as Russian
gas has reduced to a trickle.
However, by 2025 European coal demand is expected to decline below 2022 levels, the report said.
Global coal-fired power generation is set to rise to a new record of around 10.3 terawatt hours this
year, while coal production is forecast to rise by 5.4% to around 8.3 billion tonnes, also an all-time
high.
Production is expected to reach a peak next year but by 2025 should fall to below 2022 levels. The
three largest coal producers - China, India and Indonesia - will all hit production records this year
but despite high prices and comfortable margins for coal producers, there is no sign of surging
investment in export-driven coal projects.
This reflects caution among investors and mining companies about the medium- and longer-term
prospects for coal, the report said.
n 2022, high natural gas prices led to significant fuel switching to coal in electricity generation in
Europe, although both gas and coal generation increased as the growth of wind and solar was
insufficient to fully offset lower hydro and nuclear power output.
In China, low hydropower output in the summer amid a big heat wave pushed coal power generation
significantly higher. In August, coal power generation in China increased by around 15% year-on-
year to over 500 terawatt-hours (TWh).
This monthly level of generation is higher than the total annual coal power generation of any other
country, except India and the United States. In India and China, where coal is the backbone of
electricity systems and gas accounts for just a fraction of power generation, the impact of steeper
gas prices on coal demand has been limited.
Nevertheless, increased coal use in these countries has replaced some gas, which has been
purchased by other regions willing to pay more for it. Coal power generation will rise to a new record
in 2022, surpassing its 2021 levels. This is driven by robust coal power growth in India and the
European Union (EU) and by small increases in China – and it comes despite a decline in the United
States.
Europe – and the European Union in particular – has been one of the regions hardest hit by the
energy crisis, given its reliance on Russian pipeline supplies of natural gas. Lower hydro and nuclear
power output due to weather conditions, combined with technical problems in French nuclear power
plants, put additional strains on the European electricity system.
In response, some European countries have increased their use of coal power generation while
also accelerating the deployment of renewables and, in some cases, extending the lifetimes of
nuclear plants.
Under the threat of gas shortages and potential issues ensuring sufficient power system adequacy,
some coal plants that had closed down or been left in reserve have re-entered the market. In most
countries, this involved a limited amount of coal power capacity.

Only in Germany, with 10 gigawatts (GW), is the reversal at a significant scale. This has increased
coal power generation in the European Union, which is expected to remain at these higher levels
for some time. But redoubled efforts to improve energy efficiency and expand renewables will see
EU coal generation and demand return to a downward trajectory as soon as 2024 in our forecast.
In our forecast, global coal demand plateaus around the 2022 level of 8 billion tonnes through 2025.
However, given the current energy crisis with all its uncertainties, a lurch into growth or contraction
is possible. This could be driven by changes in global economic activity, weather conditions, fuel
prices or government policies – among many other potential variables.
Developments in China may well have the largest impact on the outlook for global coal demand,
since China accounts for more than half of it. China’s power sector alone accounts for one-third of
global coal consumption.
Coal consumption in China grew strongly in 2021, but growth is expected to remain relatively
stagnant at an average of 0.7% a year to 2025, largely because of the increase in renewable power
generation.
In the 2022-2025 period, we expect China’s renewable power generation to increase by almost
1 000 TWh, equivalent to the total power generation of Japan today. Meanwhile, India’s coal
consumption has doubled since 2007 at an annual growth rate of 6% – and it is set to continue to
be the growth engine of global coal demand.
By contrast, coal use is forecast to maintain its downward trajectory in the United States, and to fall
considerably in the European Union by 2025. At a global level, we expect new renewable generation
to cover almost 90% of additional electricity demand through 2025.
With a modest increase in nuclear power generation and high gas prices prevailing, coal power
generation increases slightly to 2025. Therefore, in the absence of low-emissions alternatives that
can replace coal at scale in the iron and steel sector in the near term, global coal demand is set to
remain flat through our forecast period.

China and India, the world’s largest coal consumers, are also the biggest producers and, in addition,
the top two coal importers. In response to price rises and supply shortages, China and, to a lesser
extent, India, pushed up domestic coal production after summer 2021.
In March 2022, Chinese production reached a new monthly high and it is set to rise to a new annual
record, with expected growth of 8% for the full year, reducing the need for imports and replenishing
stocks. In India, the government has tried to increase production for a long time to reduce imports.
In 2021, coal production reached 800 million tonnes for the first time. In our forecast, India’s
production surpasses 1 billion tonnes by 2025.
Indonesia, the world’s third-largest producer, is also expected to expand production to reach a new
high in 2022, with exports playing a more important role than domestic demand. With minor growth
in the United States and even in Europe, global coal production will rise above 8 billion tonnes in
2022, its highest level ever.

NewBase Energy News 19 December 2022 - Issue No. 1575 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
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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 19-December-2022 Energy News issue - 1575 by Khaled Al Awadi_compressed.pdf

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NewBase 19-December-2022 Energy News issue - 1575 by Khaled Al Awadi_compressed.pdf