NewBase 23 November 2023 Energy News issue - 1676 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 23 November 2023 No. 1676 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's Biggest Oil Producer, Santos to Work on Carbon Capture
Bloomberg + NewBase
The United Arab Emirates’ main oil producer and Australia’s Santos Ltd. agreed to work together
on carbon management and to develop technology to trap emissions that contribute to global
warming.
The technology that could emerge from the cooperation would help support the companies’
customers in the Asia-Pacific region as they seek to curb emissions, Abu Dhabi National Oil Co.
said in a statement.
The oil industry, including companies such as Exxon Mobil Corp., have backed carbon capture as
an important technology to fight climate change. But critics have said it’s costly and will be difficult
to deploy at the scale needed to reduce emissions. Adnoc has announced similar projects to study
ways to eliminate carbon with other producers like Occidental Petroleum Corp.
The UAE, OPEC’s third-biggest oil producer, was the first major Middle Eastern petrostate to declare
a net zero target. The country is also hosting the world’s most important annual climate conference
ww.linkedin.com/in/khaled-al-awadi-80201019/

later this month, but its role has been criticized by environmentalists because oil remains central to
the economy.
Adnoc is investing hundreds of billions of dollars to boost output capacity for oil and gas even as it
looks to develop technologies to mitigate emissions.
“Large scale-up of CCS is required to meet the world’s climate objectives,” Alan Stuart-Grant,
executive vice president for energy solutions at Santos, said in the
statement.
Adnoc earlier this year announced plans to develop a major gas field off the
UAE coast, which will include carbon capture. The company has several similar
projects at fields in the emirate as it seeks to capture 10 million tons of emissions
a year by 2030. That’s less than half of Adnoc’s declared emissions from its own
operations.
The International Energy Agency believes that carbon capture & storage technologies have a key
role to play in realising an ambitious, climate-friendly future energy scenario and are expected to
account for one sixth of required emissions reductions by 2050.
Santos has strengthened its position as a regional carbon capture and storage (CCS) leader by
entering into a strategic collaboration agreement with ADNOC, a progressive energy company
based in Abu Dhabi.

The agreement will explore the potential for establishing a platform offering decarbonisation
services to a broad range of energy users and includes potential:
 Collaboration on the development of CCS technologies
 Joint participation in global CCS projects
 Provision of CCS solutions to emitting companies across Asia including the development of
shipping and transport infrastructure.
Santos Energy Solutions Executive Vice President Alan Stuart-Grant said the agreement
highlighted the globally-recognised credibility of Santos’ growing CCS portfolio and the ongoing role
for energy companies in delivering real decarbonisation solutions to the large energy-consuming
economies of Asia.
'Energy companies like Santos and ADNOC have been long-term energy suppliers to the Asian
region and key to its energy security, industrial growth and rising living standards,' Mr Stuart-Grant
said.
'Through collaboration, we can accelerate the region’s transition toward a low-carbon future that is
both reliable and affordable. There is an enormous opportunity for traditional energy suppliers like
Australia and the United Arab Emirates to be at the forefront of helping regional decarbonisation
through utilisation of our natural competitive advantages in carbon storage and energy supply
chains.
'As demand for CO2 transport and storage grows, Santos continues to work with governments to
urgently progress the necessary regulatory, fiscal and carbon credit frameworks to support
international collaboration on CCS to decarbonise our region.
'We know a large scale-up of CCS is required to meet the world’s climate objectives and companies
like Santos and ADNOC have the technology, infrastructure and knowhow to be able to deliver low-
cost CCS and low-carbon energy on a global scale.
'CCS is a proven technology that is critical to achieving climate goals throughout the region and this
agreement with ADNOC positions Santos to accelerate the development and expansion of our CCS
portfolio to meet the increasing demand for CCS in the region.'
Santos has a three-hub CCS strategy with the Moomba CCS project on track for first injection in
2024, front-end engineering and design (FEED) at Bayu-Undan CCS (offshore Timor Leste) nearing
completion, and plans for Reindeer (offshore Western Australia) progressing well.
The International Energy Agency 2023 Net Zero Roadmap update assumes about 6 gigatonnes per
year of storage from CCS will be required by 2050 – more than 100 times more than today’s
operational capacity.
The IEA recognises Australia’s competitive advantage in CCS, saying earlier this year, 'Australia is
well-suited to large-scale deployment of CCS to facilitate domestic CO2 abatement and support
regional emissions reductions.'
ADNOC is a progressive global energy company based in Abu Dhabi. The company has allocated
an initial $15 billion to advance and accelerate lower-carbon solutions by investing in new energies
and decarbonisation technologies.
The company has ambitions to reach net zero by 2045 and has already announced the intention to
capture up to 10 Mtpa of CO2 by 2030.

Saudi Aramco discovers two Nat.Gas fields in the Empty Quarter
Source: Saudi Press Agency
Minister of Energy HRH Prince Abdulaziz bin Salman bin Abdulaziz announced that the Saudi
Arabian Oil Company (Saudi Aramco) has discovered two natural gas fields in the Empty Quarter:
Al-Hiran and Al-Mahakik natural gas fields.
The discovery of Al-Hiran natural gas field was confirmed after gas flowed from Hanifa reservoir in
the Al-Hiran – 1 well, at a rate of 30 Million standerd cubic feet (MMSCF), and 1,600 Barrel of
Condensates daily (BCPD), and from the Al-’Arab – C reservoir in the same field at a rate of 3.1 MMSCFD.
The discovery of Al-Mahakik natural gas field was confirmed after gas flowed from the Al-Mahakik
– 2 well, at a rate of 0.85 MMSCFD.
Natural gas was also discovered in five reservoirs in previously discovered fields. It was discovered
in the Jallah reservoir in the ‘Usaikerak field in the Empty Quarter, after gas flowed at a rate of 46
MMSCFD, in addition to discovering an additional natural gas reservoir in Shadoun field, west of
Haradh, after gas flowed from ‘Unayzah – A reservoir, at a rate of 15.5 MMSCFD, with about 460
BCPD.
Natural gas was also discovered in ‘Unayzah B/C reservoirs in Mazalij field, southwest of Dhahran,
where gas flowed at a rate of 14 MMSCFD, with about 4,150 BCPD, and in Al-Sarah reservoir in Al-
Wadhihi field and Al-Qusaibah reservoir in Awtad field, southwest of Hofuf city, where natural gas
flowed at a rate of 11.7 MMSCFD and 5.1 MMSCFD, respectively, with about 57 BCPD.

Egypt: Shell find gas in North East El-Amriya block in Medt. Sea
Source: Shell
Shell Egypt has safely and successfully completed the drilling of the first well in its three-well
exploration campaign, Mina West, located in the North East El-Amriya block, in the Mediterranean
Sea.
Drilling activities took place at a water depth of around 250 meters below sea level in the offshore
Nile Delta, with primary data confirming the presence of gas-bearing reservoir. Further evaluation
of the acquired data is required to determine the size and recoverable potential of the discovery.
Shell has contracted the Stena Drilling for Mobile Offshore Drilling Unit (MODU) – Stena Forth rig –
to carry out the drilling campaign.
Khaled Kacem, Vice President and Country Chair of Shell Egypt, said: 'This discovery is an
important step forward for Shell Egypt bolstering our growth aspirations and ongoing commitment
as a key partner in Egypt’s energy landscape.
Successful delivery of our current exploration campaign is part of Shell Egypt’s growth strategy.
Shell, together with its partners, will continue to work towards safely and efficiently reaching the
development phase of the block.'
In September this year, Shell signed a Farm Out Agreement (FOA) with Kuwait Foreign Petroleum
Exploration Company (KUFPEC) under which KUFPEC acquired a 40% stake in North East El-
Amriya block, with Shell holding the remaining 60% stake, of the partner’s share with the Egyptian
Natural Gas Holding Company (EGAS).

Nigeria: 7000MW electricity can’t drive Nigeria's economy
Zawya + NewBase
The Director General of Nigerian Textile Garment and Tailoring Employers (NTGTE) Dr Hamma
Kwajafa has said 7,000 megawatts electricity generated by Nigeria can’t drive the country’s
economy.
Kwajafa who stated this in Kaduna on Tuesday while addressing the 35th Annual Nation’s National
Education Conference of National Union of Textile Garment and Tailoring Workers of Nigeria
(NUTGTWN), said South Africa’s economy is doing better than Nigeria’s because of electricity.
According to him, South Africa with population of just 60 million people, can boast of 50,000
megawatts of electricity, while Nigeria with population of over 200 million people, is battling with
7,000 megawatts of electricity.
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“The truth is the current megawatts cannot drive our economy.”
“We say Nigeria is the giant of Africa, but infrastructure is our biggest challenge. Go to South Africa,
they have 50,000 megawatts of electricity for a population of 60 million people. We are 200 million
in Nigeria, but only 7,00 megawatts. How can that work for the industry?
“All dealers of textile materials now go to China to buy polyester fabrics and in Nigeria, they are
asking us to use backward integration; that we have to buy cotton. And this polyester can be
produced in Nigeria, but our refineries are not refining in Nigeria for us to get the raw material. The
refineries are exporting jobs.
“How can we have four refineries and none is working? But an individual, Dangote could build a
refinery. Why can’t our own work? It is nothing but corruption. And we have high petrol price. We
need to occupy the refineries, NLC ought to go on strike to demand that refineries work, not when

somebody is slapped. “We must fight to ensure that, we have adequate infrastructures; this power
must work for us, without that, we cannot have new jobs and prosperous economy.
“The reason Dollar is growing higher everyday against the Naira is because we are not exporting.
Instead, we are the highest importer of Champagne. We are busy consuming what we don’t
produce, giving others job, that cannot help us,” he said.
In his keynote address at the Education Conference themed; ‘The Future of Work in the Nigeria
Textile and Garment Industry’ President of the Textile Workers’ Union, Comrade John Adaji called
on the Federal Government to take drastic steps to save the textile sector through tightening up of
the nation’s borders by the Nigeria Customs Service.
He also called for increase in import duties for finished textile products, granting of tax waivers to
local industries, provision of adequate infrastructure especially energy and availability of forex to
import raw materials among other measures.
According to him, “Today, the cotton, textile and garment sub-sector of the economy which used to
be the second largest employer of labour after the public sector is on steady decline due to company
closures and massive loss of jobs. Massive and indiscriminate importation of textile products has
become the order of the day.
“It is time to address decisively the perennial challenges facing the textile industry particularly
smuggling and electricity supply. We also urge the government at all levels to direct their
procurement policies towards patronage of Made in Nigeria Textile fabrics in line with the Executive
Order of the previous administration,” he said.

S.Korea Takes Short-Term LNG Path While Rivals Embrace Long Deals
Bloomberg
South Korea is avoiding the global trend toward long-term agreements on liquefied natural gas due
to high prices, a risky move that will leave the top importer exposed to the volatile spot market.
Russia’s invasion of Ukraine last year upended gas markets around the world, triggering record-
high prices and stoking worries about fuel security. In contrast to Korea, neighboring Japan is urging
its importers to lock in long-term deals to insulate itself from supply shocks, while rivals in Europe
and Asia have signed several 27-year pacts with Qatar in recent months.
Long-term LNG purchase agreements insulate buyers from wild fluctuations in spot prices, but the
contracts still tend to reflect the market sentiment of the day. For instance, 20-year LNG deals are
currently being signed at about a 13% link to Brent oil. That’s much higher than in 2020, when similar
agreements were done closer to 10% as the Covid pandemic triggered a supply glut.
Goldman Sachs analysts expect the next so-called bear cycle for LNG to begin in 2025, as new
supplies from the US and elsewhere flood the market. The result could give Korea a better position
when negotiating deals that span decades.
South Korea’s two biggest LNG
supply agreements that were
signed in the mid-1990s will expire
next year, according to data
compiled by Bloomberg. That
represents 20% of the country’s
annual consumption, according to
the data.
Kogas has signed two long-term
contracts with Qatar and BP Plc,
which will be supplied from 2025
with a combined annual volume of
3.58 million tons, but the company will still be facing a shortfall.
The proliferation of private importers, including Posco Energy Co. and GS Energy Corp., also means
that Kogas doesn’t need as many long-term LNG deals as it did a few decades ago, according to a
spokesman from the company. It also expects LNG demand to decline as South Korea pursues
clean energy goals.

U.S: Natural gas combined-cycle power plants high utilization
with improved technology
source: U.S. Energy Information Administration, Form EIA-860M, Monthly Electric Power Industry Report
The average utilization rate (or capacity factor) for the entire U.S. fleet of combined-cycle natural
gas turbine (CCGT) electric power plants has risen as the operating efficiency of new CCGT units
has improved. The CCGT capacity factor rose from 40% in 2008 to 57% in 2022. Increased
efficiency improved the competitiveness of newer CCGT units against other fuel sources and older
CCGT units.
Two factors affect the utilization of a CCGT unit: the efficiency of the generator and the delivered
cost of natural gas. More advanced H- and J-class natural gas turbine technology entered the
market in the mid 2010s, increasing the efficiency of newer natural gas-fired power plants.
Lower natural gas prices typically increase capacity factors at natural gas-fired power plants
because the electricity generated is cheaper than from other sources, such as coal-fired plants.
In 2012 and 2015, annual average capacity factors of CCGT units increased by more than seven
percentage points when the annual Henry Hub natural gas price declined.
Grid operators generally dispatch generators sequentially from lowest to highest cost. Because
CCGT units built between 2010 and 2022 typically have the lowest operating costs, they are
dispatched more frequently compared with older CCGT power plants. In 2022, the capacity factor
of CCGT units that began operations between 2010 and 2022 averaged 64%, compared with 55%
for those that began operations between 2000 and 2009 and 35% for units that began operations
between 1990 and 1999.
About one-half of today's CCGT capacity was built between 2000 and 2006. This sudden increase in the
number of CCGT plants was in response to power shortages that occurred in the late 1990s, coinciding with
new and more efficient F-class natural gas turbines entering the market. Now, many of these CCGT plants
are about 20 years old, which could lead to lower capacity factors as the units age.
Lower heat rates, the ratio of the amount of fuel required to generate a unit of electricity, are the result of
increased efficiency of newer CCGT power plants. CCGT power plants built between 2010 and 2022 have
the lowest average heat rate among all CCGT plants, at 6,960 British thermal units per kilowatthour
(Btu/kWh) in 2022, which is 7% lower than units built between 2000 and 2009.

NewBase November 23 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil down more than 3% in 2 days as uncertainty swirls over
delayed OPEC+ meeting
Reuters + NewBase
Oil prices fell by more than 1% on Thursday, extending losses from the previous session, after
OPEC+ postponed a ministerial meeting, leading to speculation that producers might cut output less
than earlier anticipated.
Brent futures were down $1.04, or 1.3%, at $80.92 a barrel by 0230 GMT, after falling as much as
4% on Wednesday. U.S. West Texas Intermediate crude dipped 90 cents, or 1.2%, to $76.20, after
declining as much as 5% in the previous session.
Trade was expected to remain muted due to the Thanksgiving holiday in the United States.
In a surprise move, the Organization of the Petroleum Exporting Countries and allies including
Russia delayed to Nov. 30 a ministerial meeting where they were expected to discuss oil output
cuts. Producers were struggling to agree on output levels and hence possible reductions ahead of
the meeting originally set for Nov. 26, OPEC+ sources said.
Oil price special
coverage

Three OPEC+ sources, however, said this was linked to African countries, which are smaller
producers in the group, which somewhat eased investor concerns. Analysts said that Angola, Congo
and Nigeria were seeking to raise their 2024 supply quotas above the provisional levels agreed at
the OPEC+ June meeting.
"At that meeting, OPEC squared the books on increasing UAE’s quota... by reducing the targets for
the African nations that were underperforming their required production numbers," said Helima
Croft, an analyst at RBC Capital Markets in a client note.
Angola and Congo have been producing below their 2024 production targets, whilst Nigeria has
been able to increase output above target due to the improving security situation in the oil-rich Niger
Delta.
"We think Nigeria can be assuaged as the leadership values its longstanding OPEC membership
and improving ties with Saudi Arabia... However, it may be more difficult to bridge the gap with
Angola which has been a moodier member of the producer group since it joined in 2007," said
RBC's Croft.
"Disagreement between members will likely increase volatility within the market over the course of
the next week," analysts at ING Bank said in a note.
The questions over OPEC+ supply come as data showed U.S. crude stocks jumped by 8.7 million
barrels last week, which was much more than the 1.16-million build that analysts had expected.
U.S. oil rigs remained unchanged at 500 in the week to Nov. 22, energy services firm Baker
Hughes (BKR.O) said in its closely followed report on Wednesday.
Meanwhile, about 3% of crude oil production in the Gulf of Mexico, or around 61,165 barrels of daily
output, was shut in by an underwater pipeline leak, the U.S. Coast Guard said on Wednesday.

OPEC+ postpones policy meeting to Nov 30, oil drops
OPEC+ has delayed a ministerial meeting expected to discuss oil
output cuts to Nov. 30 from Nov. 26 as producers struggled to agree
on production levels and hence possible reductions, OPEC+ sources
said, a surprise delay that sent oil prices sliding.
Three OPEC+ sources said this was linked to African countries.
OPEC+ said after its last meeting in June that the 2024 output quotas
of Angola, Nigeria and Congo were conditional on reviews by outside analysts.
Sunday's meeting of the Organization of the Petroleum Exporting Countries and allies such as
Russia, known as OPEC+, had been expected to consider further changes to a deal that already
limits supply into 2024, according to analysts and OPEC+ sources.
"Uncertainty is never good for financial markets, with markets now having to wait longer to get clarity
what OPEC+ does next year," said UBS analyst Giovanni Staunovo. "The postponement of the
meeting also shows there are some different views among the group participants."
Brent crude was last down $3 a barrel, or almost 4%, trading below $80. The price has fallen from
near $98 in late September, pressured by rising supplies and concern about demand and a potential
economic slowdown.
Russian Deputy Prime Minister Alexander Novak and Saudi Energy Minister Prince Abdulaziz bin
Salman agreed to delay the meeting, another OPEC+ source said, citing issues around other
producers.
The Sunday meeting had been expected to convene in OPEC's Vienna headquarters. OPEC
announced the delay in a statement which didn't mention if the group would convene online or in
person on Nov. 30, although three delegates said it was expected to be in person in Vienna.
EXTRA CUTS?
Several analysts have predicted OPEC+ is likely to extend or even deepen oil supply cuts into next
year and some, including Helima Croft at RBC Capital, have said Saudi Arabia might ask other
members to share the task.
"We see some scope for the group to do a deeper reduction," Croft said this week.
Before the OPEC statement, Bloomberg News reported that the meeting could be delayed for an
unspecified period of time, citing delegates who said Saudi Arabia had expressed its dissatisfaction
with other members about their output numbers.
Saudi Arabia, Russia and other OPEC+ members have already pledged oil output cuts of about 5
million barrels per day (bpd), or about 5% of daily global demand, in a series of steps that started in
late 2022.
This figure includes a 1 million bpd voluntary reduction by Saudi Arabia and a 300,000 bpd cut in
Russian oil exports, both of which last until the end of 2023.
Reporting by Nadine Awadalla, Nayera Abdalla, Ahmad Ghaddar, Vladimir Soldatkin and Maha El
Dahan Writing and additional reporting by Alex Lawler Editing by Jason Neely and Mark Potter,
Kirsten Donovan

NewBase Specual Coverage
The Energy world –November 23 -2023
CLEAN ENERGY
Global Shipping’s Climate / Carbon Bill Clean Up or Pay Billions
NewBase + Bloomberg + Maersk
Shipping emissions negatively impact the climate through the production of greenhouse gases. But
the good news is that the IMO and the shipping industry are working towards curbing these
emissions, and you too can contribute to this. Read this blog to know more. Also, find out how you
can save hundreds of dollars for your business on container repositioning on xChange.
Shipping is essential to world trade, but unfortunately, ships run on fossil fuels — producing harmful
greenhouse gases (GHG). Approximately 2.5% of the world’s CO2 emissions or 940 MtCO2 per
year, are attributed to shipping. These emissions contribute to rising temperatures and eventually
lead to climate change.
Ships sailing to European ports face a combined carbon emissions bill of $3.6 billion next year, the
start of a levy that’s almost certainly going to rise as the continent steps up efforts to combat climate
change.
The figure is an estimate of the total price of complying with the European Union’s Emissions
Trading System from Drewry Shipping Consultants Ltd.
Under the regulation, which takes effect Jan. 1, vessels going into and out of EU ports must pay for
their carbon pollution, affecting deliveries of everything from container loads of finished goods to the
liquefied natural gas needed to keep homes warm in winter.
The global shipping industry spewed more than a billion tons of CO2 into the atmosphere in 2018
and is almost exclusively powered by oil-derived fuels, which are significantly cheaper than low
carbon alternatives. Folding it into the ETS is part of the EU’s plan to decarbonize the sector to
combat climate change.

Despite stretching into the billions, the bill is a sliver of the revenues generated by international
shipping and is unlikely to have a major impact on the prices consumers ultimately pay for goods.
Last year, container giant A.P. Moller-Maersk A/S alone enjoyed profit just shy of $30 billion.
In 2024, a container ship sailing between Europe and Asia could incur charges of about €810,000
($887,000) under the ETS, according to a recent estimate from marine classification society DNV
that assumes a carbon price of €90 a ton.
Based on Monday’s marine fuel price in northwest Europe, that’s only about 10% of what the same
ship’s annual fuel bill would be — meaning swings in the oil price alone could easily outweigh the
entire cost of the ETS.
Containers
Similarly, variations in the cost of carrying goods in containers between Europe and Asia in recent
years have dwarfed the EU’s ETS costs. And the mechanism would make up only a tiny fraction of
oil — and gas — freight bills.
The new rules are unlikely to enable clean alternatives like green methanol to compete on price with
fossil fuels in the near future, according to Stijn Rubens, a senior consultant at Drewry.
“Even if the cost of green fuels halves in the next three years, there is more taxation required to
level the playing field,” he said. “Green methanol is likely to remain at a considerable cost
disadvantage until at least 2026.”
Trading Loopholes
Despite the ETS making up a small part of freight costs, there has already been talk of how traders
and companies could exploit loopholes to avoid paying the fees.
Six EU member states — mainly along the Mediterranean coastline — raised concerns last month
that shippers may dodge ETS fees by docking at ports close to, but outside of, the EU. The bloc
has already said Egypt’s East Port Said and Morocco’s Tanger Med should be identified as
“neighboring container transshipment ports” to prevent evasion.
Another potential way round the charges would be to use ship-to-ship transfers, whereby cargoes
are transferred between vessels at sea.

For instance, if an oil tanker sailed from Singapore to just outside a European port area, unloaded
via STS transfer, and then sailed back to Singapore, it would not owe anything under the ETS,
according to DNV. That’s because it never actually called at an EU port.
“The Commission will closely monitor possible ship-to-ship transfers in the context of the upcoming
application of EU ETS to the maritime sector,” a spokesperson for the European Commission said.
“Where appropriate, the Commission would be ready to propose measures to address any evasive
behavior, to preserve the integrity and effectiveness of the EU ETS.”
Rising Costs
The costs of complying with the ETS, which applies to European Economic Area as well as EU
ports, may for now be relatively small for an industry as big as shipping. But it will almost certainly
get more expensive: while shippers only have to cover 40% of their emissions in 2024, that ratchets
up to 70% in 2025 and 100% in 2026 — the same year methane and nitrous oxide emissions come
under the rules.
Using the same assumptions that went into Drewry’s 2024 estimate, which was based on 2022
actual emissions and a price of €100 per ton of CO2, that would generate a total 2026 bill of $9
billion.
And assuming ETS compliance does indeed get significantly more expensive, the economic case
for using loopholes could grow too.
With only 40% covered next year, the ETS “may not be seen as high enough to change business
patterns,” said Alain Savary, founder of Carbonex, a consultancy focused on the EU ETS. But this
may change in years to come when more emissions are covered, he said.
How to reduce shipping emissions?
Shipping emissions negatively impact the climate through the production of greenhouse gases. But
the good news is that the IMO and the shipping industry are working towards curbing these

emissions, and you too can contribute to this. Read this blog to know more. Also, find out how you
can save hundreds of dollars for your business on container repositioning on xChange.
Shipping is essential to world trade, but unfortunately, ships run on fossil fuels — producing harmful
greenhouse gases (GHG). Approximately 2.5% of the world’s CO2 emissions or 940 MtCO2 per
year, are attributed to shipping. These emissions contribute to rising temperatures and eventually
lead to climate change.
Thankfully, there are ways in which the industry can cut down shipping emissions. Being in the
container business, if you want to contribute to this positive change too and reduce your carbon
footprint, we have 4 words for you – avoid empty container repositioning.
That’s right, you can cut down shipping emissions by organizing your logistics better. When you
avoid moving empty containers, you lessen the shipping industry’s burden on the environment by
preventing the unnecessary burning of fossil fuels. And with xChange, you can put an end to empty
container repositioning by leasing one-way containers.
If you have empty boxes you’d like to move to your desired location, use our public search below.
You’ll see a list of container users currently looking for one-way containers on your stretch. Just
select ‘I want to supply’ and fill out where you want your containers picked up and dropped off. This
way, you’ll earn while you move your container, and also prevent unnecessary shipping emissions.
Try it below!

Road to de-carbonization: Why reducing shipping emissions is important?
Reducing shipping emissions is important for the shipping sector because these emissions lead to
adverse effects on the climate and the depletion of non-renewable fossil fuels.
You know by now that shipping emissions are mainly GHG. These harmful gasses — including
carbon dioxide (CO2) — are directly responsible for triggering climate change. You know how big
the carbon numbers produced by shipping are already but let’s break it down even further with an
example.
If you’re shipping from China to Europe, you produce 1.913 kg of CO2 per container. If 20,000+
TEUs per vessel are moved on almost 90,000 cargo ships annually, the amount of CO2 produced
will be overwhelming.
We can’t stress enough how severe the climate impact will be. If left unchecked, such carbon
emissions can increase by 50-250% by 2050, according to an International Maritime Organization
(IMO) study.
If you want to do your part to cut these emissions, move your boxes one way on our platform today
and avoid repositioning costs along the way.
The IMO has already undertaken measures to prevent shipping emission-induced climate change.
One of the important steps taken by IMO is drafting the Initial IMO GHG Strategy. Let’s look at it in
detail below.
IMO has been banking on EEDI to increase energy efficiency in shipping. Cutting down shipping
emissions can only happen if ships become more energy-efficient. Hence, the EEDI is a technical
measure that checks the energy efficiency of new ships. In a way, EEDI promotes new ships to use
less polluting equipment and engines in their build.
The EEDI requires a minimum energy efficiency level per capacity mile (e.g. tonne mile) for ships
of different types and sizes. So, the shipbuilders and designers have to build vessels that meet
these energy-efficient requirements. These processes are tightened every five years. As a result,
the shipping industry has to constantly innovate and come up with more energy-efficient ship
designs.
Apart from this, there’s also the IMO data collection system in place which instructs owners of large
ships (above 5,000 gross tonnage) to report on the fuel consumption of their ships. The data
collected from the system helps IMO in making decisions for enhancing energy efficiency and
reducing GHG emissions.
The 2023 framework for reducing shipping emissions by the IMO

All of the above is already in practice since 2018 and in 2023, the IMO GHG strategy has gone
through a revision. Here’s what it states:
 Reduce CO2 emissions per transport network by at least 40% by 2030.
 Focus on using energy-efficient green fuels and implementing zero or near-zero GSoHG
emission technologies in international shipping.
 Strengthen the energy efficiency design requirements for ships.
 Aim to achieve at least 5% to 10% of GSoHG emission technologies by 2030.
 Peak the GHG emissions in international shipping by (or around) 2050. Then pursue efforts
towards phasing them out in line with the Paris Agreement’s temperature goals.
As you can see, the implementation of the IMO GHG strategy, the IMO data collection system, and
the EEDI fall on the shipping lines, carriers, owners, and operators. But as container owners, you
too can do your bit to reduce shipping emissions— avoid empty container repositioning by leasing
containers one way on our online neutral marketplace. Check out the offers available on your
desired route today!
Different ways shipping lines are adopting to reduce shipping emissions
With all these new strategies in place, many shipping lines are already jumping on the green
bandwagon and adopting new initiatives to help cut down on carbon emissions. Let’s take a look at
how these companies are going green:
 Maersk implemented the green bunkering service with methanol, a sustainable fuel, making
this shipping line the world’s first container vessel to operate on green fuel.
 Maersk has also placed an order for 25 ships that will be powered by green methanol.
Following this trend, other industry leaders like A.P. Moller-Maersk, CMA CGM, Cosco
Shipping Holdings, HMM Company Limited, Stena Bulk, Hafnia, and XpressFeeders have
also taken similar steps.
 In July 2023, COSCO Shipping successfully launched an electric container vessel (N997)
with a capacity of 700 TEUs.
 Additionally, the Mediterranean Shipping Company (MSC) has joined SEA-LNG, a multi-
sector industry coalition advocating for the benefits of the LNG pathway as a means to
achieve maritime decarbonization.
 Wallenius Wilhelmsen, a Norwegian car carrier, has not only ordered vessels ready for green
methanol bunkering but has also made preparations for introducing ammonia-powered ships
into their fleet.
 Further contributing to environmental protection and carbon reduction goals, DB Schenker
and Hapag-Lloyd have entered into an agreement to reduce emissions in container
transports through the use of waste and residue-based biofuels.
 Evergreen Marine Corp has undertaken a systematic inspection and calculation of
greenhouse gas emission inventories for its business operations, aligning with its
commitment to environmental protection policies.

 Several major ports, including those in China, Singapore, Melbourne, Sweden, and Egypt,
have begun providing green methanol fuel and establishing green methanol bunkering
services for container vessels.
In addition to methanol, shipping lines are also showing growing interest in alternative fuels such as
hydrogen, ammonia, and liquid natural gas (LNG).
6 ways shipping lines can reduce shipping emissions to lower impact on climate change
It’s great to see how shipping lines are doing their part to reduce CO2 emissions. But there’s still a
lot to do. And these six tips we’ve curated below will help propel the process:
 Utilize battery storage- The progress in energy storage will allow decarbonization. It’ll pave
the way for all-electric ships. You’ll find it interesting to know that Ampere— the first all-
electric ferry in Norway cuts shipping emissions by 95% and costs by 80%.
 Slow down the speed- Slow steaming can surely reduce fuel consumption. A 12% reduction
in at-sea average speed leads to an average decrease of 27% in daily fuel consumption. If
shipping lines are decreasing fuel consumption, they’re also decreasing GHG emissions.
 Take incremental measures- These are mostly short-term but would reduce emissions per
vessel by as much as 5%. Shipping lines can improve the hull design, propeller optimization,
and waste heat recovery to bring about such measures. Potential upgrades for ships also
include reducing the friction with water. Shipping lines can fit ship bows with bulbous
extensions below the water line to reduce drag. Or even paint hulls with low-friction coatings.
 Use renewable energy- You know that using renewable energy reduces carbon emissions
significantly. In shipping, using wind assist or wind power for propulsion can be one such use
of renewable energy.
 Switch to green fuel -More than 90,000 ships account for the burning of nearly 2 billion barrels
of the heaviest fuel oil. The most significant reductions come with a fuel switch to low sulphur

content. According to IMO’s 2020 regulation, only 0.5% sulphur can be used in commercial
ship fuel globally. This sulphur cap will reduce the emission of sulphur dioxide (SO2).
One-way container leasing can minimize shipping emissions
As a container owner, you too can help shipping lines reduce their emissions by avoiding empty
container transport. By curbing this process, you can save up to 30% of pollution caused by cargo
ships and contribute to the change. Container xChange can help get one-way containers to avoid
empty container transport.
On our platform, you can make your container available for one-way leasing. When you do that, you
invite shippers to lease your container on your desired shipping route. They’ll move your boxes, pay
you the rent (if applicable), and save you from paying the freight shipping rate. All this plus you help
in decreasing shipping emissions.
Our global network comprises 1,500+ vetted container suppliers and lessors making transactions
in 2500+ locations across the world. All our members go through a mandatory vetting process to
ensure that you only work with verified names. The process is easy. You pick a company you like
after seeing their profile, reviews, and ratings and speak to them through our marketplace directly
via chats and calls.
We also have a standard one-way leasing agreement on Container xChange. During the one-way
leasing transaction, all members sign the BIMCO contract to evade confusion as both parties
remain informed and are on the same page. With this, you can avoid the hassle of networking by
yourself and scheduling endless calls and lengthy email exchanges with multiple companies about
contracts and terms. On xChange, we make your negotiations smoother and your work faster.
Click the banner below to connect with a vetted partner, negotiate a deal on your own terms, get
your boxes repositioned in no time, and help save the environment too!

Putting a price on shipping emissions: How will carbon revenue be used?
Circling back to the earlier sections, we saw how the IMO is focusing on zero-carbon fuels and
innovative technologies to green its energy footprint. Plus, they’re also looking to make these
changes in a cost-effective and equitable way to make it easier for countries to adopt these greener
strategies. And putting a price on carbon emissions is the method through which they plan to
achieve this. This strategy can help to reduce GHG emissions and – as a by-product – generate
revenue. It has been estimated, in shipping alone, that putting a price on carbon could raise $40 to
$60 billion dollars each year between 2025 and 2050.
So, what would the money from carbon revenues be used for? You’ll find the answer to this in our
insightful image below.
Reduce shipping emissions of GHG by moving empty boxes one way on Container xChange
With all your knowledge secured on how to reduce shipping emissions, it’s time to take action and
do your part to help the environment. As you already know, Container xChange is here to help you

with that by providing you with one-way leasing options, and container interchange agreements with
1,500+ vetted members.
Another feature we offer that can make moving your boxes easier is our real-time tracking through
which you can monitor your box and effectively plan your container movements. This ensures that
containers are in the locations where they need to be and that all your operations flow smoothly.
Another plus with us is our easy and secure payment handling feature – the xChange wallet which
manages all your transactions in one place and sends you one consolidated bill at the end of each
month.
Here’s what Zarina Wang, from the Container Operation Department, Neptune Logistics has to say:
“We discovered xChange in 2019 and immediately became a leasing member. Since joining, we’ve
made 39+ reliable partners overseas and have successfully repositioned 1000s of our empty
containers. And, we’ve simplified our container operations while doing so! No more back-and-forth
emails and cold calling.”
What are you waiting for? Join our platform and be a part of the plan to save our planet while also
saving your company hundreds of dollars on empty container repositioning. Click on the banner
below!
Common FAQs: Shipping Emissions
How much CO2 is produced from shipping?
The shipping industry produces 940 million tonnes of CO2 annually. This accounts for 2.5% of the world's
total CO2 emissions.
Why is shipping bad for the environment?
Shipping is bad for the environment because it produces greenhouse gasses. These GHG emissions lead
to climate change.
Who is responsible for shipping emissions?
According to international guidelines, the shipping emissions produced when a ship is sailing between two
countries are the responsibility of the International Maritime Organisation (IMO). When the ship sails between
two ports of the same country, the responsibility for emissions falls on that country.

NewBase Energy News 23-November - Issue No. 1676 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 November 2023 Energy News issue - 1676 by Khaled Al Awadi_compressed.pdf

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