NewBase 23 June-2023 Energy News issue - 1632 by Khaled Al Awadi.pdf

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NewBase Energy News 23 June 2023 No. 1632 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Qatar: QatarEnergy selects CNPC as NFE partner, and sells
4 MTA of LNG to China for 27 years
Source: QatarEnergy
QatarEnergy has signed definitive agreements with China National Petroleum Corporation (CNPC),
covering the long-term supply of LNG to China and partnership in the North Field East LNG
expansion project (NFE).
The two parties signed an LNG Sales and Purchase Agreement (SPA) for the delivery of 4 million
tons of LNG per annum from the NFE project to CNPC’s receiving terminals in China over a span
of 27 years, marking the industry’s longest term SPA commitment.
The two parties also signed a share sale and purchase agreement pursuant to which QatarEnergy
will transfer to CNPC a 5% interest in the equivalent of one NFE train with a capacity of 8 million
tons per annum. This transfer will see CNPC become a partner in the NFE project and will not affect
the participating interests of any of the other shareholders in the project.
The agreements were signed by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State
for Energy Affairs, the President and CEO of QatarEnergy, and Mr. Dai Houliang, the Chairman of
ww.linkedin.com/in/khaled-al-awadi-80201019/

CNPC, during a special ceremony held at QatarEnergy’s headquarters and attended by senior
executives from both companies.
In remarks at the signing ceremony, His Excellency Minister Al-Kaabi welcomed CNPC as a
valuable partner in the NFE project. His Excellency articulated, 'We are pleased to embark on this
partnership with CNPC and to build on the excellent relations between the People’s Republic of
China and the State of Qatar.
These agreements demonstrate our unwavering commitment to our customers and partners and to
our shared ambition for a sustainable future facilitated by a cleaner, and more eco-friendly energy
source that would catalyze substantial socio-economic development.'
H.E. Minister Al-Kaabi expressed his thanks and appreciation to the teams from CNPC and
QatarEnergy for their dedication and for working tirelessly to finalize the agreements.
H.E. Minister Al-Kaabi concluded his remarks by stating: 'We are forever grateful for the wise
guidance of His Highness the Amir Sheikh Tamim bin Hamad Al Thani, and for his continued support
of the energy sector.'
On his part, Mr. Dai Houliang, the Chairman of CNPC, said: 'Our collaboration over the NFE project
represents a major achievement and excellent practice of both CNPC and QatarEnergy in delivering
on the strategic consensus of the leaders of our countries.
It is another milestone in forming a strategic synergy between China’s “Belt and Road” Initiative
and Qatar’s National Vision 2030. It lays a solid foundation for the energy cooperation between the
two sides in the next three decades.
From this brand-new starting point, CNPC will continue to actively discuss with QatarEnergy all-
round cooperation across the hydrocarbon industry chain and other areas like green and low carbon
energies, so as to build a stable, long-term, and multi-dimensional strategic partnership.'

Oman inks 10-year gas export deal with Bangladesh
Staff Writer, Muscat Daily + NewBase
Bangladesh has signed a new long-term gas supply deal with Oman to import up to 1.5mn metric
tonnes of liquefied natural gas (LNG) per annum from 2026.
Petrobangla – Bangladesh’s state-owned oil and gas company – signed the ten-year LNG import
deal with Oman’s OQ Trading Limited – an energy trading entity owned by OQ Group – in Dhaka
on Monday.
‘Bangladesh has signed a new sales
and purchase agreement with Oman
to start importing an additional
0.25mn to 1.5mn metric tonnes of
LNG for ten years from 2026,’
Bangladesh’s Ministry of Power,
Energy and Mineral Resources
tweeted.
In a press statement, OQ Group
confirmed that OQ Trading will deliver
between 0.25mn tonnes to 1.5mn
tonnes of LNG per annum from its
diverse global portfolio to
Petrobangla. The agreement will give
both companies increased stability
and a prolonged avenue for growth.
Said al Maawali, Executive Director of OQ Trading, and Ruchira Islam, Board Secretary of
Petrobangla, signed the agreement, Bangladeshi media reported.
OQ Trading has been supplying 1mn tonnes of LNG per annum to Bangladesh under an existing
ten-year deal signed in 2018.
Under the new agreement, OQ Trading will supply four cargoes in 2026, 16 cargoes in 2027 and
2028 each, and 24 cargoes every year from 2029 to 2035, according to a report published in
Bangladesh’s The Financial Express.
In the report, Tawfiq-e-Elahi Chowdhury,
Advisor to Bangladesh Prime Minister on
power, energy and mineral resources, stated
that the deal will play a key role in ensuring
energy security in Bangladesh. He also urged
Oman to engage in gas exploration in
Bangladesh.
Wail bin Zuhair al Jamali, CEO of OQ
Trading, said, “The new agreement marks a
pivotal moment in the collaboration between
OQ Trading, Petrobangla, and both nations.”
In the last six months, several international
energy firms from countries such as Japan,
China and Turkey have signed long-term agreements to import LNG from the sultanate.

Oman: ENGIE and POSCO led consortium to develop a 1.2MTPA
green ammonia project Source: ENGIE
As part of the 'Hydrom Phase A Round 1' call for projects, the consortium led
by ENGIE and POSCO was awarded land block (Z1-02) by Hydrom, the orchestrator and master
planner of Oman's green hydrogen industry. Spanning 340 sq km, the concession block is located
in Duqm, with downstream elements to be established at the Port of Duqm.
Continuing their alliance which began through the signing of an MoU in March 2022, ENGIE and
POSCO have announced their role as spearheads in a consortium designed to mobilize Oman's
renewable energy resources through the development of a green ammonia project with a capacity
of 1.2 million tonnes per year.
Other partners in the consortium include Samsung Engineering, Korea East-West Power Co.
(EWP), Korea Southern Power Co. (KOSPO), and FutureTech Energy Ventures Company Ltd. (a
subsidiary of PTTEP).
The project will include up to approximately 5 GW of new wind and solar capacity, Battery Energy
Storage System (BESS) and a renewable hydrogen plant with a capacity of up to 200 ktpa. The
hydrogen will then be transported by a hydrogen pipeline to be built till the port of Duqm where it
will feed the ammonia production plant. 1.2 mtpa of green ammonia will be exported in Korea in
2030.
The project contract will last for a period of 47 years, broken down into a seven-year development
and construction phase followed by a 40-year operational period. Construction is projected to begin
in 2027, with the first shipment of green ammonia to Korea planned for the second half of 2030. The
consortium will carry out the feasibility and technical studies, in order to finalize the total capital
expenditure requirement for the project.
'This venture will benefit from ENGIE's industrial expertise. By developing renewable energies,
renewable hydrogen and flexible assets such as batteries, this project is perfectly in line with the
Group's strategy to accelerate the transition to carbon neutrality.
It will contribute to several of our 2030 ambitions: reaching 4 GW of hydrogen capacity and 10 GW
of batteries', said Sébastien Arbola, Executive Vice President in charge of Flex Gen & Retail
activities.
This project, which reaffirms ENGIE’s commitment to accelerating the Gulf Cooperation Council's
low-carbon transition, is also in line with Korea's national decarbonization target, which aims to
reduce the country's carbon footprint by 40% by 2030.

US boosts biofuel mandates over next 3 years
REUTERS
The Biden administration on Wednesday increased the amount of biofuels that oil refiners must
blend into the nation's fuel mix over the next three years, but the plan has angered the biofuel
industry, which says mandates for corn-based ethanol and biodiesel are not high enough.
The U.S. Environmental Protection Agency has finalized biofuel blending volumes at 20.94 billion
gallons in 2023, 21.54 billion gallons in 2024 and 22.33 billion gallons in 2025. That compares with
the initial proposal announced in December of 20.82 billion in 2023, 21.87 billion in 2024, and 22.68
billion in 2025.
But the finalized volumes include just 15 billion gallons of conventional biofuels like corn-based
ethanol in all three years, plus a 250 million-gallon supplemental amount for 2023. That represents
a decline from the initial proposal, which included 15 billion gallons of conventional biofuels in 2023
and 15.25 billion gallons in both 2024 and 2025.
The plan also has modest increases to biomass-based diesel volumes compared with the proposal,
despite a major lobbying push from groups that produce biodiesel, renewable diesel and sustainable
aviation fuel to boost volumes higher.
The announcement drew strong rebukes from ethanol and biodiesel advocates.
"The industry responded to signals from the Biden administration and Congress aiming to rapidly
decarbonize U.S. fuel markets, particularly aviation, marine, and heavy-duty transport, and make
clean fuels available to more consumers," said Kurt Kovarik, vice president of federal affairs with
Clean Fuels, a biodiesel group. "The volumes EPA finalized today are not high enough to support
those goals."

Iowa Secretary of Agriculture Mike Naig said the finalized mandates fail to fully support benefits that
biofuels can provide to farmers and consumers. The Renewable Fuels Association called the
reductions in ethanol mandates "inexplicable" and "unwarranted."
The final rule marks a new phase in the U.S. Renewable Fuel Standard program, which is more
than a decade old and frequently pits the powerful oil and biofuel industries against each other.
Under the RFS, oil refiners must blend billions of gallons of biofuels into the nation's fuel mix, or buy
tradable credits from those that do.
Ethanol producers and corn farmers like the mandates because they provide a market for their
products, while the oil industry finds the requirements too pricey. While Congress set out specific
goals for the program through 2022, the law expands the EPA's authority for 2023 and beyond to
change the way the RFS is administered.
The EPA said the finalized rule would reduce reliance on foreign sources of oil by between 130,000
to 140,000 barrels per day over 2023-2025. U.S. renewable fuel credit prices dropped 8% following
the news, trading at $1.34 each from as much as $1.46 each the day prior, traders said. Biomass-
based credits dropped to $1.38 each from $1.48 each the previous day.
The futures market fell sharply in reaction to the lower-than-expected biofuel mandates, with most
Chicago Board of Trade soyoil contracts locked down their daily 4 cent-per-lb trading limit. The
soyoil market had rallied to its highest in nearly 3-1/2 months last week.
OTHER PROVISIONS
The EPA also set out a series of regulatory changes in the final rule, in an effort to strengthen the
agency's implementation of the RFS program.
The agency will modify provisions for biogas-derived renewable fuels to ensure that biogas is
produced from renewable biomass and used as a transportation fuel, as well as to allow for the use
of biogas as a biointermediate.
Absent from the rule, however,
was a much-anticipated
pathway for electric vehicle
manufacturers to generate
lucrative credits under the RFS,
though it was included in the
original proposal in December.
Reuters previously reported
that the administration was
planning to abandon the
scheme over worries about
lawsuits.
The plan would have given EV
automakers, such as
Tesla (TSLA.O), credits for charging vehicles using power generated from renewable natural gas,
or methane collected from sources such as cattle or land fills.
The EPA said on Wednesday it will continue to assess stakeholder comments it received on the EV
scheme, and it will work on potential paths forward for it.
The American Fuel and Petrochemical Manufacturers said it was pleased to see the EPA abandon
the EV program, saying the RFS is a liquid fuels program that should not include electric vehicles.

NewBase June 23 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil resumes slide on demand worries after latest rate hikes
Reuters + NewBase
Oil dropped for a second day on Friday and was heading for a weekly decline, as a UK interest rate
hike added to concern over economic growth that outweighed lower U.S. crude stocks and other
signs of tighter supplies.
Both crude benchmarks had dropped about $3 on Thursday after the Bank of England raised
interest rates by a bigger-than-expected half a percentage point. Central banks in Norway and
Switzerland also hiked rates.
Brent crude slipped $1.17, or 1.58%, to $72.97 a barrel by 13.48 GMT, while U.S. West Texas
Intermediate (WTI) crude was down $1.23, or 1.8%, at $68.29.
"After yesterday's central banks' action, anxiety has palpably grown," said Tamas Varga of oil
broker PVM. "Due to strengthening economic headwinds caused by recession fears, only
conspicuous stock depletion will herald a protracted change in the currently ominous outlook."
Higher interest rates increase borrowing costs for businesses and consumers, which could slow
economic growth and cloud the oil demand outlook for the rest of the year.
Oil price special
coverage

The prospect of more U.S. interest rate hikes added to those headwinds. U.S. Federal Reserve
Chair Jerome Powell said this week two more rate hikes of 25 basis points each by the end of the
year was "a pretty good guess."
Gains in the dollar, drawing support from the hawkish comments from global central banks, also
weighed. A strong dollar makes oil more expensive for other currency holders and can hit demand
and indicate higher risk aversion among investors.
The recession and demand concerns outweighed signs of supply-side tightness. This week's U.S.
inventory report showed crude stocks posted a surprise decline of 3.8 million barrels.
Also set to tighten the market is Saudi Arabia's production cut of 1 million barrels per day in July
announced along with an OPEC+ deal to limit supplies into 2024.
Additional reporting by Arathy Somasekhar and Sudarshan Varadhan; Editing by Philipp

NewBase Specual Coverage
The Energy world –June-23 -2023
CLEAN ENERGY
US grapples with how clean is green hydrogen
Reuters - Paul Day + NewBase
The Inflation Reduction Act will help build a viable hydrogen economy, but its success in reducing
emissions may depend on how the United States defines what counts as clean.
June 7 - Signed into law last year, the Biden administration’s Inflation Reduction Act will plough
almost $400 billion into clean energy projects and a large part of that will finance a tiered subsidy
for emission-free hydrogen production.
The tax credits are expected to attract investment in the U.S. clean hydrogen industry at every stage
of the process and from companies all over the world.
However, the plan has prompted concerns hydrogen production will ramp up faster than the addition
of new, emission-free electricity, and the newly installed electrolyzers will absorb all available
emissions-free power from renewables, nuclear, and hydro, leaving the country’s coal- and gas-
fired plants to fill the void.
“The electrolysis process only makes sense if we're using completely renewable energy and we
need to ensure that the effective energy being used by the grid for these projects is renewable,”
says Pete Budden who leads the Natural Resources Defense Council’s (NRDC’s) state and
regional-level hydrogen policy work.
“We can't allow these projects to incorrectly incentivize fossil fuel generators to increase their output
on the grid to meet this need of electrolyzers.”
Dollars for green gas
Hydrogen can only be considered clean, and eligible for the subsidy, if it is accompanied by the
installation of clean electricity, Budden says.
The inflation act’s 45V Hydrogen Production Tax Credit (PTC) awards up to $3 per kilograms (kg)
of hydrogen produced to projects with lifecycle greenhouse gas emission (GHG) intensity of less
than 0.45 kg per kg of hydrogen.

The system has four tiers, depending on how much CO2 is produced in the production of the
hydrogen, with the lowest offering $0.6/kg for GHG intensity of 2.5-4.0 kg per kg of hydrogen.
The question of tax credits is one for the U.S. Treasury, which must decide by August which
activities will be eligible for which tier.
Until that is clear, developers are left waiting.
“The Treasury must develop a set of guidelines so that businesses know that if they do X, they get
the credit. The promise of the inflation act has been extremely helpful for the United States and has
stimulated investments from overseas, but this incomplete guidance leaves for unfinished
business,” says President and CEO of the Fuel Cell and Hydrogen Energy Association (FCHEA)
Frank Wolak.
“The question is, how do you calculate and score the greenness of the highest tier?”
Determining the “greenness” of the hydrogen is a high stakes game for the industry, which is already
laying plans to invest in electrolyzers, hydrogen hubs, pipelines, refueling stations, and other

essential infrastructure, while also finding the right consumers that are ready to decarbonize their
own supply lines.
Failure to qualify for the highest tier would undermine the economic viability of any green hydrogen
project, says Wolak.
Defining guidelines
The guidelines for calculating the level of emissions rest on the ‘Three Pillars’: new supply, or
additionality, deliverability, and hourly time-matching.
The stickiest point has been additionality, which stipulates that any electricity used for hydrogen
production must be from new generating projects and not rest on the existing national grid.
Renewable energy accounted for just 20% of the U.S.’s electricity generation in 2021, according to
the U.S. Energy Information Administration, while another 19% is from nuclear power. The
remaining 61% is power generated by plants running on natural gas (38%), coal (22%) and
petroleum (0.5%).
Today, 99% of U.S. hydrogen production of more than 10 million metric tons (MT) is from fossil
fuels, with 95% from natural gas by steam methane reforming (SMR) and 4% from partial oxidation
of natural gas via coal gasification.
The remaining 1% is from electrolysis.
Decarbonizing industry
Hydrogen use is currently for industrial purposes, such as in the production of steel, and chemicals,
such as fertilizers and ammonia, all of which must be decarbonized.
New markets for the gas will also include energy storage, and heavy-duty, long-haul trucks, and
may even be extended to smaller industrial vehicles, aviation, and shipping.

According to the U.S. government’s ‘Hydrogen Shot’, which aims to bring green hydrogen prices
down to $1/kg within one decade, there is an opportunity for at least a five-fold increase in clean
hydrogen use.
With or without additionality, this would require a massive increase in domestic power generation.
Around 50 kWh is needed to produce one kilo of hydrogen, meaning the Hydrogen Shots’ goal of
50 MT of hydrogen a year by 2050 would need around 2,500 TWh to produce, on top of the nearly
4,000 TWh of power already used every year in the country, a 62.5% increase.
Interim targets aim for 10 MT a year capacity by 2030 and 20 MT by 2040.
For all that hydrogen to be green, the extra power must be generated from emission-free sources,
including wind, solar, nuclear, and hydro.
The timing of when that extra capacity should be installed is at the center of a growing battle between
those that wish to immediately jump on the inflation act subsidies and start producing discounted
hydrogen and those that fear the national grid needs to be reinforced before the electrolyzers start
running.

NewBase Energy News 23-June 2023 - Issue No. 1632 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 23 June-2023 Energy News issue - 1632 by Khaled Al Awadi.pdf

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NewBase 23 June-2023 Energy News issue - 1632 by Khaled Al Awadi.pdf