NewBase 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 23 May 2024 No. 1727 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE ADNOC to acquire 10% stake in Rovuma Mozambique &
11.7% in U.S ’s Rio Grande LNG developments
NewBase + The National
ADNOC has announced the acquisition of Galp’s 10% interest in the Area 4 concession of the
Rovuma basin in Mozambique, marking a major milestone in the company’s international growth
strategy. The acquisition will entitle ADNOC to a share of the liquefied natural gas (LNG) production
from the concession, which has a combined production capacity exceeding 25 million tonnes per
annum (mtpa).
 ADNOC to acquire 10% equity stake in major LNG development in Mozambique
 Equity stake in Area 4 concession within Mozambique’s Rovuma basin acquired from Galp,
supporting ADNOC’s international growth strategy
 First investment in Mozambique complements ADNOC’s efforts to expand its lower-carbon
LNG portfolio to meet growing gas demand and support a just, orderly and equitable energy
transition
 Acquisition provides access to world-class gas projects and reserves in the concession with
a combined potential LNG capacity of more than 25 mtpa
The Area 4 concession includes the operational Coral South Floating LNG (FLNG) facility, the
planned Coral North FLNG development and the planned Rovuma LNG onshore facilities. This
strategic investment is ADNOC’s first in Mozambique and complements ADNOC’s efforts to expand
its lower-carbon LNG portfolio to meet growing gas demand and support a just, orderly and equitable
energy transition.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth,
said: 'For over fifty years, ADNOC has been a reliable and responsible global provider of LNG and
we are building on this role with this landmark investment in the world-class Rovuma supergiant gas
basin in Mozambique as we deliver on our international growth strategy.
ww.linkedin.com/in/khaled-al-awadi-80201019/

Natural gas plays an important role to meet growing global demand with lower emissions compared
to other fossil fuels and this acquisition supports our efforts to build an integrated global gas
business to ensure we continue providing a secure, reliable and responsible supply of natural gas.'
The Coral South development, currently in operation, is capable of producing up to 3.5 mtpa of
LNG, and represents the first facility of its kind in Africa. The proposed Coral North development is
expected to produce a further 3.5 mtpa of LNG through a FLNG facility to process and liquefy natural
gas for export.
The 18-mtpa Rovuma Onshore LNG development is a modular, electric-drive design that will
dramatically reduce the carbon intensity of the LNG it produces, when compared to industry
benchmarks. The facility’s design philosophy and its emphasis on limiting carbon dioxide (CO2)
emissions aligns with ADNOC’s ambition to achieve net zero by 2045.
Mozambique’s Rovuma supergiant gas basin represents one of the world’s largest gas discoveries
in the past fifteen years and holds proven reserves to provide a stable supply of natural gas to the
FLNG and Onshore facilities.
Adnoc makes first investment in US
Abu Dhabi company’s agreement with GIP in Texas also secures an option for equity participation
in the future expansion of the project
Adnoc has acquired a 11.7 per cent stake in phase one of NextDecade’s Rio Grande liquefied
natural gas export project in Texas, marking its first investment in the US.
The equity stake was acquired by the Abu Dhabi energy company through an investment vehicle of
Global Infrastructure Partners, Adnoc said on Monday.

The agreement with GIP, an infrastructure investor, also secures an option for equity participation
in the future Train 4 and Train 5 of the project.
Trains are the liquefaction units that convert natural gas into LNG. Each train consists of equipment
and processes that cool and condense natural gas into its liquid form for storage and transport.
Adnoc also entered a 20-year LNG offtake agreement with NextDecade for 1.9 million tonnes a year
on a free on-board basis at a price indexed to Henry Hub, subject to a final investment decision.
“We are delighted to partner with NextDecade on this world-class, lower-carbon LNG project as it
marks a significant milestone in Adnoc’s international growth strategy and provides us [with] access
to one of the world’s top LNG export markets,” said Musabbeh Al Kaabi, Adnoc's executive director
for low-carbon solutions and international growth.
The project will also include a carbon capture and storage project capable of handling five million
metric tonnes of carbon dioxide annually, equal to removing a million vehicles from the road each
year.
The US became the world’s largest LNG exporter last year amid growing demand from Europe,
which is looking to end its reliance on Russian gas imports.
For companies, US offers a strategic location with access to major markets in Asia and Europe. US
and Mexican LNG project export capacity is expected to reach 238 million metric tonnes a year by
2050, accounting for 30 per cent of global supply, according to Wood Mackenzie.

However, the US government halted approvals for pending and future applications to export LNG
in January, in response to activist concerns about its impact on climate change.
China, India and countries in South-East Asia are driving an increase in energy demand. LNG is
considered to be more environmentally friendly than coal when it comes to power generation and
industrial applications.
Last week, Qatar’s Energy Minister Saad Al Kaabi said the Gulf country would sign more long-term
LNG contracts this year as demand for the fuel grows in Asia and Europe.
LNG is not difficult to sell but negotiations surrounding the specifics of the sale, such as contractual
terms and pricing, can become a “sticking point” in finalising agreements, he said during the Qatar
Economic Forum.
NextDecade aims to reach a final investment decision on Train 4 at the Rio Grande LNG complex
in the second half of this year.
It is subject to the finalisation of an engineering, procurement and construction contract, as well as
the necessary commercial arrangements and adequate financing, Adnoc said.
“LNG from our facility will allow Adnoc to further increase its presence in the global LNG market
while also supplying global customers with more affordable and less carbon-intensive LNG,” said
NextDecade chairman and chief executive Matt Schatzman.

KSA signs record-breaking PPA for 1,100MW wind projects
TradeArabia News Service
Saudi Power Procurement Company (SPPC) has signed two power purchase agreements (PPAs)
with a consortium led by top Japanese business conglomerate Marubeni Corporation to procure
power from its key wind projects - 600MW AlGhat and 500MW Wa'ad Alshamal.
This comes as part of Round 4 of the Saudi National Renewable Energy Program (NREP) which is
supervised by kingdom's Ministry of Energy. The deals were signed by the principal buyer SPPC
during the Saudi-Japan Vision 2030 Business Forum.
On the key achievement, Prince Abdulaziz Bin Salman bin Abdulaziz Al Saud, Minister of Energy,
said: "AlGat had achieved a new record low cost of electricity production from wind power at 1.56558
cents/kWh levelized cost of electricity (LCOE), while Wa'ad Alshamal project achieved a second
world record low for wind power at 1.70187 cents/kWh LCOE."
The electricity produced from both projects, he stated, was sufficient to power 257,000 residential
units per year, which emphasis the significance of these projects in enhancing the energy efficiency
in Saudi Arabia.
Prince Abdulaziz commended the Saudi King Salman and His Royal Highness Prince Mohammed
bin Salman bin Abdulaziz Al Saud, the Crown Prince, Prime Minister and the Chairman of the
Supreme Committee for Energy Mix Affairs for Electricity Production and Enabling Renewable
Energy Sector, for all the encouragement, support, enablement and follow up that the Ministry of
Energy and its ecosystem receive from the Country’s leadership, to enable achieving the Vision
2030 targets in the energy sector.
He pointed out that these two projects were part of the National Renewable Energy Programme
which is supervised by the Ministry of Energy and is an extension of the energy ecosystem's efforts
towards realizing Vision 2030's objectives, achieving the optimal energy mix, and displacing liquid
fuels in the kingdom's power sector. Additionally, the programme utilises vast lands to harness
renewable energy resources and increase the share of renewables in the energy mix to around 50%
by 2030, he added.-

Saudi Arabia, renewable power is cheaper than fossil fuels.
By Oliver Townsend + NewBase
Renewable energy is gaining momentum worldwide, with even countries like Saudi Arabia
recognizing the cost-effectiveness of shifting towards cleaner power sources. Recently, Saudi
Arabia signed agreements to procure electricity from two large-scale wind farms at prices lower than
traditional natural gas plants.
This move is part of the kingdom’s ambitious goal to generate half of its power from renewable
sources by 2030. Let’s delve deeper into this significant shift towards renewables in Saudi Arabia.
The Transition to Renewable Power in Saudi Arabia
Saudi Arabia, known for its oil exports, has historically relied heavily on oil and gas for power
generation. However, with the Crown Prince’s vision to diversify the economy away from oil
dependence, the country is now embracing renewable energy on a large scale. The recent
agreements to purchase electricity from wind farms at record-low prices mark a significant step
towards achieving their renewable energy goals.
Driving Factors Behind the Shift
State support and favorable wind conditions in Saudi Arabia have played a crucial role in making
renewable projects more cost-effective than traditional fossil fuel alternatives. The strategic
partnerships with companies like Marubeni Corp have enabled the kingdom to achieve remarkably
low tariffs on renewable energy, making it an attractive option for sustainable power generation.

Goals and Progress Towards Clean Energy
Saudi Arabia’s ambitious
target of generating half of its
power from clean sources by
2030 signifies a substantial
shift in the country’s energy
landscape. With plans to
install over 45 gigawatts of
solar and wind capacity by the
end of the decade, the
kingdom is set to significantly
reduce its reliance on oil for
electricity generation, opening
up more of its oil output for
exports.
Benefits of Renewable Power in Saudi Arabia
Cost-Effectiveness and Sustainability
The cost-effectiveness of renewable energy projects in Saudi Arabia, exemplified by the low tariffs
on wind power, not only reduces the overall cost of power generation but also contributes to the
country’s sustainability goals. By investing in renewables, Saudi Arabia can secure a more stable
and eco-friendly energy future while diversifying its economy.
Enhanced Energy Security and Market Competitiveness
Diversifying the energy mix with renewables enhances Saudi Arabia’s energy security by reducing
its dependence on finite fossil fuel resources. Moreover, by embracing clean energy technologies,
the kingdom can position itself as a competitive player in the global energy market, attracting
investments and fostering innovation in the renewable sector.

Algeria: Baker Hughes to support strategic gas project to
enhance Italy, Europe’s energy security
Source: Baker Hughes
Consortium with Tecnimont (MAIRE) will supply SONATRACH with 20 compression trains that are
expected to boost gas production at the Hassi R’ Mel gas field in Algeria, one of the world’s largest
Project is critical to enhance resilience of Algeria’s energy ecosystem, supporting Europe’s energy
security by ensuring stable gas supplies Agreement strengthens Italy-Algeria bilateral relations as
Baker Hughes and Tecnimont will leverage their Italian industrial expertise to deliver on the project
Baker Hughes has been awarded a major contract from SONATRACH for a gas-boosting project
for the Hassi R’Mel gas field in Algeria. The contract is part of a broader order awarded to a

consortium between Baker Hughes and Tecnimont, part of technology and engineering
group MAIRE.
The signing ceremony took place in Algiers in the presence of the three company CEOs: Rachid
Hachichi of SONATRACH, Lorenzo Simonelli of Baker Hughes, and Alessandro Bernini of MAIRE,
as well as H.E. Mohamed Arkab, Minister of Energy & Mines.
Baker Hughes’ awarded scope includes the supply of 20 compression trains based on Frame 5 gas
turbine and BCL compressor technology, which will be installed across three gas boosting stations
within the Hassi R’ Mel gas field. Located 550 km south of Algiers, Hassi R’ Mel is the largest gas
field in Algeria and one of the largest in the world, representing a key source of energy supply for
Algeria and Europe.
Baker Hughes’ proven technology solutions are expected to play a central role in the project by
boosting and stabilizing the pressure of natural gas and increasing production at site, which will
enhance Algeria’s domestic energy system and economy as well as Europe’s energy security.
'Today’s announcement marks a notable milestone in our historical collaboration with SONATRACH
for key energy projects in Algeria that have played a crucial role in supplying reliable energy to
Europe,' said Lorenzo Simonelli, chairman and CEO of Baker Hughes. 'We have long believed that
it is critical to increase gas within the overall global energy mix to help achieve a lower-carbon
economy.
This project helps to solve for energy producers’ multi-faceted challenge of driving sustainable
energy development as energy demand increases. We are proud to support such a critical energy
project in partnership with Tecnimont.'
The new gas-boosting stations are part of Algeria’s ambitious plan to strengthen its role in the global
energy market and its commitment to natural gas as a key energy source for socio-economic
development. According to Bloomberg NEF, Algeria became the second-largest gas supplier to
Europe in 2023, further strengthening the country’s role in enhancing the energy security of the
continent, particularly in Italy where Algeria represents the biggest single source of import.
The Hassi R’ Mel Project is part of a broader strategic collaboration between Algeria and Italy, which
includes recently signed agreements to foster bilateral cooperation and provide financial support for
Algeria’s gas production as part of the Mattei Plan. The Mattei Plan seeks to promote cooperation
between Africa and Italy along five main policy pillars: education and training, agriculture, health,
water and energy.
Packaging of the compressor trains, as well as manufacturing of the compressors and testing of the
trains, will take place at Baker Hughes’ facilities in Italy.

Indonesia: Masdar signs deals for new renewable projects
OGN/TradeArabia News Service
Masdar, the UAE’s clean energy powerhouse, has signed strategic agreements for new renewable
energy projects in Indonesia in support of the country’s energy transition. The agreements reinforce
the ongoing partnership between the UAE and Indonesia towards developing the region’s
renewables sector, while supporting Indonesia’s current and future energy needs.
Masdar is aiming for a renewable energy portfolio capacity of 100GW by 2030, supporting the target
set in the UAE Consensus to triple global renewables capacity by the end of this decade, and aims
to be a leading producer of green hydrogen by the same year. --
The agreements were signed by Masdar’s Director of Development & Investment, Abdulla Zayed,
the Chief Executive Officer Pertamina Power Indonesia, John Anis, President Director of PLN
Nusantara Power, Ruly Firmansyah, and Agung Wicaksono, Deputy Chair of Funding and
Investment, Nusantara Capital City Authority.
. The UAE commends Indonesia's climate leadership as we progress together towards a new era
of sustainable prosperity, supporting communities with their net-zero ambitions, in line with the
priority of the historic UAE Consensus to triple global renewable energy capacity by 2030.”

Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, commented: "The UAE remains
firmly committed to advancing Indonesia's energy sector through a focus on renewables. In line with
the UAE Consensus reached at COP28, Masdar is dedicated to forging partnerships that unlock
transformative solutions for clean energy access. Our joint efforts will catalyze investments in green
hydrogen, solar and wind to position Indonesia as a regional leader in the global energy transition.”
The agreements included: a Memorandum of Understanding (MoU) with Pertamina Power
Indonesia, for the development of solar, wind and green hydrogen projects in Indonesia and abroad.
This builds on Masdar’s existing partnership with the company through Pertamina Geothermal
Energy. The MoU represents a significant step forward in strengthening the strategic relationship
between Masdar and Pertamina Power Indonesia.
Masdar also signed a Joint Development Study Agreement with PLN Nusantara Power for Cirata
Phase II to triple capacity by up to 500MW, following the successful 2023 launch of the initial 145MW
phase of the innovative floating PV project– the largest of its kind in the region.
Supporting the energy transition in urban environments, Masdar received approval to proceed
towards developing up to 2GW of renewable energy in Nusantara, starting with 200 megawatts as
phase 1, in Indonesia’s new capital city. This follows a proposal by Masdar to meet the city’s energy
needs by 2045, using solar and wind projects.
Anis added: "We are delighted with the strategic partnership between Pertamina NRE and Masdar.
Both parties have been building a very good relationship. Pertamina has a key role in Indonesia's
energy transition and ambition to expand globally, while Masdar owns a reputable experience in the
renewable energy development. I believe together we will create more value and contribute more
to combat global climate issues and strengthening the collaboration between UAE and Indonesia."
Firmansyah said: "PLN Nusantara Power is proud to partner with Masdar to further develop the
Cirata II initiative across Indonesia. This strategic alliance combines our expertise to unlock the
nation's vast solar potential. This partnership underscores our commitment to Indonesia’s clean
energy targets and net-zero goals. We look forward to collaborating with Masdar to deliver a
greener, more sustainable future."
Bambang Susantono, Chairman of Nusantara
Capital City Authority, commented: "Indonesia is
committed to making our new capital city of
Nusantara as a city that prioritizes sustainability. We
welcome Masdar’s plan to develop 200MW of
renewable energy plant for the city. We also
appreciate Masdar’s further commitment on
renewable energy up to 2GW to support the
fulfillment of renewable energy needs by 2045.
Prioritizing solar and wind energy positions the new
capital as a model eco-city thriving on clean energy. This can be a future testament on how urban
centers can be developed in harmony with nature."
Indonesia and Southeast Asia are key investment destinations for Masdar. The company has
developed the region’s largest floating solar facility in Indonesia – the 145MW Cirata Floating Solar
PV plant – which will generate enough electricity to power 50,000 homes. In February 2023, it
entered the geothermal energy sector through a strategic investment in Pertamina Geothermal
Energy.

Russian refineries targeted by Ukraine's drones
By Reuters + NewBase
Ukraine has stepped up attacks on Russian fuel facilities in recent weeks, sending drones as far as
1,500 km (930 miles) to hit a major oil refinery in the Urals region.
Following is a list of oil refineries and terminals attacked in the past month:
GAZPROM NEFTEKHIM SALAVAT
Gazprom Neftekhim Salavat oil processing, petrochemical and fertiliser complex in the Urals region
of Bashkortostan has stopped its catalytic cracker after being attacked by a drone on May 9, two
sources familiar with the matter told Reuters.
Smoke billows after Ukraine's SBU drone strikes a refinery, amid Russia's attack on Ukraine, in
Ryazan, Ryazan Region, Russia, in this screen grab from a video obtained by Reuters, March 13,
2024. Video Obtained By Reuters/via REUTERS/ File photo
The catalytic cracker is part of gasoline production chain responsible for 600,000 metric tons of
output at Salavat which in total is capable of producing about 1.5 million tons of gasoline a year.
Salavat complex refinery runs totalled 6.498 million tons in 2023, or some 2.36% of overall oil
processing in Russia.
TUAPSE
Rosneft's (ROSN.MM), opens new tab Black Sea oil refinery in Tuapse resumed operations on
Sunday after a drone attack on May 17, an industry source familiar with the plant's work told
Reuters.
Sources have said that drones damaged a unit that produces liquefied petroleum gas (LPG).
The Tuapse plant, which has a processing capacity of 240,000 barrels of oil per day, was also struck
by a drone in January and resumed work around the end of April, industry sources said.

The plant produces naphtha, fuel oil, vacuum gasoil and high-sulphur diesel, supplying fuel mainly
to Turkey, China, Malaysia and Singapore. In 2023, the plant processed 9.322 million metric tons
of crude oil, producing 3.306 million tons of gasoil and 3.123 million tons of fuel oil.
VOLGOGRAD
Lukoil (LKOH.MM), opens new tab last week restarted a key production unit at
its Volgograd refinery, the largest in southern Russia, which was shut this month after being
damaged in a drone attack, two industry sources told Reuters on Monday.
The plant, with production capacity of some 300,000 bpd, caught fire on May 12 following a drone
strike, local officials said. Sources said the CDU-1 unit had been damaged in the attack.
NOVOROSSIISK PORT, TERMINALS
The Importpischeprom oil products terminal at Russia's Black Sea port of Novorossiisk resumed
fuel loadings on May 18 after suspending operations following a drone attack a day earlier,
according to industry sources and LSEG data.
Novorossiisk is Russia's largest port on the Black Sea, and a key outlet for crude oil and oil product
exports and transit in Russia's south. The Importpischeprom terminal exports light oil products as
well as fertilizers and vegetable oils.
A drone attack on Novorossiisk on May 17 hit the Importpischeprom terminal and Sheskharis oil
harbour, sources said and video shared on social media showed.
The port was shut soon after the attack, but resumed oil loadings from the Sheskharis oil harbour
and fuel oil terminal later the same day, according to industry sources and LSEG data.
Novorossiisk also loads oil from Kazakhstan and Azerbaijan, and handles grain, coal, mineral
fertilizers, timber, containers, food and chemical cargoes.
Russia's Urals, Siberian Light and Kazkahstan's KEBCO oil grades loadings from Novorossiisk are
planned at 2.3 million tons (543,000 bpd) in May.
SLAVYANSK
Slavyansk oil refinery, located in the Krasnodar region, was damaged after a weekend drone attack,
state-run TASS reported on Monday, citing a company security official.
The refinery also caught fire on Saturday after a drone attack. The blaze was extinguished and there
were no casualties, the district administration said. Slavyansk refinery is a private plant with a
capacity of around 100,000 bpd.

UK: Leading energy companies launch new Humber Hydrogen
Hub projects in Parliament
Source: Equinor
Leading energy companies Equinor, Centrica and SSE Thermal have launched plans for a
collaboration of multiple low carbon hydrogen projects on the north bank of the Humber which also
link to wider plans within the region.
The plans, which include the transformation of the Easington gas terminal, were launched yesterday
in the Houses of Parliament to an audience of MPs, civil servants, industry bodies and regional
stakeholders. Lord Callanan, the Energy Minister responsible for Hydrogen and Carbon Capture
policy, spoke at the event alongside Beverley & Holderness MP Graham Stuart and representatives
from the Equinor, Centrica Energy Storage and SSE Thermal.
H2H Easington includes proposals by Equinor and Centrica to deliver a multi-stage green and blue
hydrogen production facility which will scale up over time as a hydrogen economy develops.
Since a co-operation agreement was signed between the two companies in 2022, detailed
engineering studies have assessed projects which could produce up to 1.2GW of blue hydrogen
production and up to 1GW of green hydrogen at Easington with initial projects commissioned by the
end of the decade then expansion through the 2030s.
Left to right: John Johnson, SSE Thermal; Martin Scargill, Centrica Energy Storage; Dan Sadler,
Equinor; Lord Callanan, Energy Minister; Graham Stuart MP, Beverley & Holderness; Martin Vickers
MP, Cleethorpes. (Source: Equinor)
To unlock these ambitions, proposals for a green hydrogen electrolyser have been submitted to
Government as part of the second Hydrogen Allocation Round process. If successful, this initial
electrolytic hydrogen system would be operational by early 2029 and would fuel switch off-takers
within the Easington terminal, displacing current natural gas demand and significantly reducing the
site’s CO2 footprint by 100,000 tonnes per year. An immediate next step would include hydrogen

for Sustainable Aviation Fuel (SAF), which is key to facilitating the energy transition in the aviation
sector.
Such a transition would also safeguard many existing jobs within the historic gas terminal whilst
creating new jobs and supply chain opportunities for the future. It is estimated that the 35-year
economic impact of the green hydrogen proposals at Easington, including construction, operation
and decommissioning of the facility, will be in the region of £1.5bn of gross value added, supporting
thousands of jobs in the region.
In addition to the above, the partnership will also explore a dedicated hydrogen pipeline that would
link H2H Easington to Equinor’s proposed H2H Saltend hydrogen production facility at Saltend
Chemicals Park, and to Equinor and SSE Thermal’s proposed hydrogen storage facility at
Aldbrough on the East Yorkshire Coast. Collectively, these projects form the Humber Hydrogen
Hub.
Equinor and SSE Thermal are currently consulting on the proposals for hydrogen storage at the
existing gas storage site near Aldbrough. The use of the geologically unique underground salt
caverns for storage helps to balance the fluctuating supply and demand of a future hydrogen
economy whilst improving energy security.
The 45km hydrogen pipeline proposals also include a crossing of the River Humber to provide
connectivity between north and south banks, whilst there is also potential for connection to the
‘Project Union’ gas network to expand across the wider Humber region.
Decision makers from government departments including Energy Security & Net Zero, Business &
Trade and Transport, joined the Government’s ‘Hydrogen Champion’, UK Research & Innovation
and the Carbon Capture & Storage Association to listen to the new proposals. Levelling Up Minister
Jacob Young MP, who is also a proactive advocate of hydrogen, was in attendance. The Humber
region was represented by MPs Graham Stuart and Martin Vickers, as well as representatives from
the East Riding of Yorkshire Council, Humber Chamber of Commerce and the Yorkshire & Humber
CBI.

Norway: Equinor makes oil discovery in well 25/11-H-1 H at the
Svalin field in the North Sea
Equinor has made an oil discovery in well 25/11-H-1 H at the Svalin field in the North Sea. The
licensees will consider whether the discovery is sufficiently profitable for production.
Preliminary calculations show between 0 and 0.1 million standard cubic metres of recoverable oil
equivalent, which is the equivalent of between 0 and 0.6 million barrels. The discovery was made
in a development well with the Deepsea Aberdeen rig in production licence PL169.
Geological information
The Svalin field was proven in
1992 in sandstone from the
Palaeocene to early Eocene in
the Heimdal and Balder
Formations, and has been in
production since 2014. The field
consists of two separate
structures; Svalin C and Svalin
M. Svalin C has been developed
with a subsea template tied back
to the Grane installation and
Svalin M has been developed
with a multi-branch well drilled
from Grane.
Development well 25/11-H-1 H
encountered oil in thin sandstone
layers (< 3 m) with very good
reservoir quality in the Balder
Formation, which is part of the
Rogaland Group. The oil in the
Balder Formation is presumed to
be in pressure communication
with su rrounding reservoir
sands in the Heimdal Formation
on the Svalin C structure. The
oil/water contact was not
encountered.

NewBase May 24 -2024 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil flat as firming US gasoline demand offsets rate jitters
Reuters + NewBase
Oil prices were steady early in the session on Friday as players took stock of the U.S. Federal
Reserve's latest comments on interest rates amid sticky inflation, while firming seasonal U.S. fuel
demand lent support.
Brent crude futures were up 1 cent at $81.37 a barrel at 0002 GMT. U.S. West Texas Intermediate
crude (WTI) futures were down 2 cents at $76.85.
Both benchmarks settled at multi-month lows on Thursday, with Brent crude futures closing at their
weakest point since January and U.S. crude futures hitting a three-month low.
Ongoing macroeconomic constraints in the U.S. held prices in the balance as investors digested
Wednesday's minutes from the Fed's latest policy meeting, which showed policymakers remain
doubtful if current interest rates are high enough to tame stubborn inflation.
Oil price special
coverage

Some officials said they would be willing to hike borrowing costs again if inflation surged. However,
Fed Chair Jerome Powell and other policymakers have since said they feel further rate hikes are
unlikely.
Meanwhile, strengthening U.S. gasoline demand was helping to stabilise prices ahead of the
Memorial Day holiday weekend, which is considered the start of the U.S. summer driving season.
Gasoline demand in the U.S. reached its highest level since November, the Energy Information
Administration (EIA) said on Wednesday. That helped support the market as U.S. drivers account
for around a tenth of global oil demand, "making the upcoming driving season a pillar of the recovery
in global demand growth", ANZ analysts said in a note.
All eyes are now on the Organization of the Petroleum Exporting Countries and allies, together
called OPEC+, set to meet on June 1, where they are expected to discuss whether to extend
voluntary oil output cuts of 2.2 million barrels per day.
"The market is also tentative about taking an aggressive positioning ahead of next week’s OPEC
meeting, where supply policy will be discussed," ANZ analysts added.
Oil Nears 3-Month Low as US Report Points to Swelling Stockpiles
Oil extended losses after an industry report pointed to rising US crude inventories, adding to bearish
signs for the market.
Oil Holds Near Three-Month Low as Market Shows Signs of Weakness
US Memorial Day weekend is start of peak summer driving period
Brent futures closed at the lowest since Feb. 7 on Thursday

Brent traded below $82 a barrel, near its lowest in three months, while West Texas Intermediate
also edged below $77. The American Petroleum Institute reported crude stockpiles rose by 2.5
million barrels last week, according to people familiar. Genscape data meanwhile show rising
inventories in the Amsterdam-Rotterdam-Antwerp region, Europe’s oil trading hub.
The reports come ahead of next month’s OPEC+ meeting, where the group will decide on whether
to extend existing supply curbs. Along with falling oil futures, it must contend with Brent’s prompt
spread nearing a bearish contango structure — a sign of increasing supply relative to demand.
“The view on the fundamental outlook remains grim,” said Tamas Varga, an analyst at brokerage
PVM. “It is manifested in the weakening of the backwardation in crude oil, where the front spread
on the European benchmark settled at 18 cents a barrel yesterday.”
Global benchmark Brent is around 7% higher so far this year, supported by OPEC+ supply cuts,
although prices have cooled since mid-April. The group is expected to prolong output curbs when it
meets June 1. Meanwhile, geopolitical risks continue, with recent drone strikes on Russian refineries
and an oil tanker hit by a missile in the Red Sea area.
If the API’s stockpile build is confirmed by EIA data later on Wednesday, it would be the first reported
gain this month. Analysts, however, forecast a drop. Other metrics showing weakness include the
Brent DFL — a measure of Dated Brent relative to futures — turning negative and money managers
recently trimmed their bullish bets on Brent, although they were increased for WTI.

 Hawk Energy Sees Oil at $85-$100 This Year With Strong Demand Growth
 That’s a ‘ foreseeable & sensible range,’ Hawk Energy CEO M. Al Shihabi says
 Demand set to grow to 104 MBD up by 2.0 MBD, in 2024: Al Awadhi says

NewBase Specual Coverage
The Energy world – May 23 -2024
CLEAN ENERGY
DNV study indicates high potential of hydrogen in the Northern
Baltic sea region
Not only the North Sea, but also the Baltic Sea region holds considerable potential to produce
cheap, green hydrogen, which could be a significant contribution to the diversification of sources
and energy independence in Europe. This is the conclusion of the new DNV study 'Potential for a
Baltic Hydrogen Offshore Backbone'.
The EU estimates the demand for climate-neutral hydrogen in 2050 at up to 2,000 terawatt hours
(TWh). Part of this hydrogen could come from onshore wind farms in the Baltic Sea region. While
the DNV Study saw high potential for offshore production of hydrogen in the North Sea (especially
in areas more than 100 km from the coast), onshore hydrogen production in the Baltic Sea region
is more favorable in neighboring countries.
Finland in particular could become an important hydrogen supplier: The export potential is 70 TWh
of hydrogen per year in 2050, which corresponds to around 2.1 million tons of hydrogen. Due to its

high proportion of renewable electricity in the power grid (compliance with RED III criteria),
production costs (LCOH = levelized cost of hydrogen) of around 2.5 EUR/kg H2 can be achieved in
Finland. In combination with favorable pipeline transport through the Baltic Sea, the system costs
for green hydrogen are around 3 EUR/kg H2.
According to analyses conducted by GASCADE Gastransport, this would be half the cost assumed
for hydrogen derivatives such as ammonia. Transported to Germany by ship, estimates here
assume approx. 6 EUR/kg H2.
The study sees less production and export potential in Sweden, based on the current relatively low
expansion targets for renewable energies in an already largely decarbonized environment.
The Baltic Sea region is favorable as a stable source not only from a geopolitical point of view: 'If
we know about such a large and comparatively inexpensive potential right on our doorstep, it would
be criminal not to exploit it,' emphasises GASCADE Managing Director Ulrich
Benterbusch regarding to the need for energy supply security in the emerging hydrogen market.
An offshore pipeline connection between the production sources and Germany presents itself as a
comparatively inexpensive alternative for transportation: In view of the transport infrastructure and
the expected volumes, the study recommends a combination of offshore and onshore pipelines to
diversify the connection.
An offshore pipeline starting in Finland can not only transport quantities of the green hydrogen
produced there. It can also potentially collect the produced energy carrier along the route, for
example on the Åland Islands, Gotland and Bornholm. The onshore route runs via the Baltic states
and Poland.
Quantities from this import corridor could be transported in Germany via the hydrogen project Flow
- making hydrogen happen. It is part of the German hydrogen core network and is set to go into
operation in a first step in 2025.
The surplus potential in the Nordic countries changes its pattern under the
conservative scenario. Whilst Sweden offers surplus potential in 2030 this potential

is reduced to almost zero by 2040, whilst Finland shows a significant surplus. In total
around 70 TWhel are available in 2050
• As we have shown in this chapter, the hydrogen production potential depends very much on
the decarbonisation pathways that are adopted in the individual countries. In the conservative
scenario, we see that Finland in particular can achieve a significant electricity surplus in 2050, which
could be used to produce green hydrogen for export. But Sweden’s electricity surplus will fall
continuously over the chosen period, with no surplus in 2050.
• In total we find a potential under the conservative scenario of about 70 TWhel in 2050 that
can be sourced from the region in 2050 with Finland providing the main source of surplus.
• Overall, the surplus shown is relatively small, particularly given that Sweden has little or no
surplus due to industry electrification and domestic hydrogen use.
• The surplus is likely to originate from onshore and offshore wind. Onshore wind electricity
can be expected to be the main source of surplus, with a share of about 40-50% (SE) and 70-80%
(FI) of RES electricity generation in 2030-2050. This is followed by offshore wind with a share of
RES generation increasing to 10-20% in 2050 (SE), and some 5% in 2030 and 11% in 2050 (FI). •
As the scenarios show, there is a potential in the Nordics for hydrogen production for export.
Depending on the scenario, in 2050 this ranges from 70 to 109 TWhel. The latter would equate to
approximately 70 TWh of hydrogen. Compared to the potential that can be found in the North Sea
this is significantly lower – looking at current plans.
• The analysis nevertheless illustrates how dependent this production potential is on the
national energy plans in the respective countries. For Sweden and Finland, we consider the potential
could even be higher if there were more ambitious plans to produce electricity for the purpose of
exporting hydrogen. These plans nevertheless are non- existent or are at an immature state at the
moment. Especially for Sweden the surplus remains rather low compared to the size of the country.
If Sweden could be developed into a strategic hydrogen sourcing partner for Central Europe, the
patterns shown above could change.
• On the other hand, and as stated in the introduction to this study, the assumption that the
electricity surplus is entirely used for hydrogen production neglects the parallel electrification in
Central Europe, and the likely demand for electricity imports. Part of the electricity generation
surplus in Finland and Sweden may therefore also be used to export electricity directly, without
converting it into hydrogen.
• Before we address a potential pipeline routing and dimensioning in chapter 4, that describes
how this hydrogen potential might be transported to Central Europe, we will in chapter 3 take a
closer look at the hydrogen production economics that come with the wind resources in the different
geographies in the north.
• This aspect is very relevant to a potential case to make use of hydrogen produced in the
north and therefore also to the question of whether the Baltic countries should take a joint action for
an even higher ambition for renewable energy, in order to build a significant hydrogen production in
the region for export through hydrogen pipeline connections.
Baltic states’ green hydrogen production cost - Conclusions
The LCOH analysis shows that hydrogen from the Baltic Sea countries is likely competitive
compared to imports from other areas of the world.
• Comparing the LCOH of the various hydrogen production options, it becomes apparent that
if we look at directly connected RES, Finland in general is able to produce renewable hydrogen at

the lowest cost. Therefore, economically, directly connected projects in Finland are better suited for
hydrogen production than Swedish ones.
• In terms of offshore wind, the Baltic states and Southern Sweden can also achieve relatively
low LCOH, compared with the rest of the region.
• The overall cost pattern shows that the best combined LCOH with directly connected RES
could be achieved when sourcing hydrogen from Finland and the Baltic states. Overall, however,
the analysis shows that, for directly connected RES, hydrogen production costs are significantly
higher than areas of the world where production can make use of cheap solar PV or higher wind
capacity factors, as for example in the North Sea.
• This picture changes significantly with EU regulation. The RED II criteria allow grid electricity
to be used in bidding zones with a RES share of more than 90%. Given that the region already runs
on a very high share of renewable and low carbon electricity supply, electrolysers can in some cases
operate with electricity directly from the grid. This enables a much lower LCOH, which makes the
region as a whole more attractive for low-cost hydrogen production.
• Therefore, from an economic as well as a strategic viewpoint, it is reasonable to take offshore
and onshore wind resources in the Baltic area into account for European hydrogen production.
• As the LCOHs here do not account for the system cost in order to transport and store the
hydrogen – the system cost for transported hydrogen will be somewhat higher than the LCOH
explained in this chapter – we will address these additional costs and the options to transport the
hydrogen to Central Europe in chapter 4 of this study.
About GASCADE
GASCADE Gastransport GmbH operates a gas pipeline network throughout Germany. The Kassel-
based transmission system operator offers its customers modern and competitive transport services
for natural gas and, in future, other gases in the heart of Europe via its own high-pressure pipeline
network, which is around 3,700 kilometres long. GASCADE is pursuing the goal of successively
converting its pipeline network to transport hydrogen and is therefore active in several onshore and
offshore hydrogen projects.
Alternative Pipeline Route:
European gas grid operators collaborate through various initiatives to realise north-south oriented
hydrogen transport corridors, connecting Sweden and Finland to Central Europe. As no significant
surplus hydrogen in Sweden was found, this study looks at routing from central Finland to Central
Europe.
As pointed out in the introduction there are different routes that could be established to transport
hydrogen from the northern Baltic Sea to Central Europe. These routes are especially the following:
• The Nordic-Baltic Hydrogen Corridor initiative foresees a (largely) onshore hydrogen pipeline
connecting Finland and Germany through the Baltic states and Poland.
• The Baltic Hydrogen Collector initiative foresees an offshore hydrogen pipeline through the Baltic
Sea, central Sweden and Finland to Germany.
• The Nordic Hydrogen Route initiative foresees an onshore hydrogen pipeline connecting the north of
Sweden and Finland to the Nordic-Baltic Hydrogen Corridor in Finland and the Swedish hydrogen backbone
in Sweden, which could ultimately be connected via central Sweden and Denmark to Germany.

The initiatives are integrated into the European Hydrogen Backbone vision.
As a result of the surplus analysis, it was found that there exists effectively no significant surplus
hydrogen in Sweden across all analysed years and scenarios, and therefore the Nordic Hydrogen
Route is not taken into consideration for further analysis of pipeline routing to Central Europe. This
outcome could be significantly altered if Sweden decides to speed up the deployment of renewable
energy compared to current plans.
In this report, we refer to the Nordic-Baltic Hydrogen Corridor as the “onshore route” and the Baltic
Hydrogen Collector as the “offshore route”.
For comparison's sake, in this analysis the starting point of the onshore route and the offshore route
is chosen to be the same point near the Finnish city of Turku. Both routes connect to the planned
Finnish onshore hydrogen transport grid that will come from the north of Finland.
1. The offshore route starts by connecting Turku to the island of Åland. From there two parallel
pipelines of approximately 760 kilometres length pass the Baltic Sea and connect to the
Danish island of Bornholm. From there, again a set of two pipelines connect to the German
mainland. The total length of a single trace of pipelines is approximately 1,000 km. The total
length, including a dual trace of pipelines is approximately 1 ,900 km. In this study, both the
prospect of a single and dual trace are analysed. Additionally, the possibility of having a
single optimised offshore pipeline is investigated. This pipeline will be dimensioned such that
it is able to transport the expected surplus for all analysed scenarios and years. Furthermore,
the optimised pipeline will feature a branch from Bornholm connecting to the Niechorze-
Pogorzelica area in Poland.
2. The onshore route starts by connecting Turku to Helsinki where the Finnish gulf is crossed
by an offshore pipeline segment that connects Helsinki to Tallinn. From there, a newbuilt

pipeline through Estonia and Latvia transports the hydrogen until a repurposed natural gas
pipeline segment in Latvia of approximately 100 kilometres is encountered. A newbuilt
pipeline that crosses the borders of Latvia and Lithuania connects to a second repurposed
natural gas pipeline segment of around 100 kilometres length is encountered. From there on,
newbuilt pipeline segments through Lithua nia and Poland connect to the German border at
Eisenhüttenstadt. The total length of the onshore route is approximately 2,000 km.
3. On the following pages we will investigate the necessity and cost-effectiveness of having
these north-south oriented hydrogen transport corridors in parallel, or whether having any
single one of them will provide sufficient transport capacity based on the surplus hydrogen
production scenarios in Finland that were derived in this report.

Summary and recommendations
Baltic hydrogen production offers opportunities to strengthen Europe’s strategic hydrogen supply.
Conclusions
• The option of sourcing hydrogen from the Baltic Sea region is economically and strategically
interesting for CentralEurope. Low production costs coupled with intra-European production can
support Europe’s industrial competitiveness and would make Europe less dependent on imports.
• For many end-uses, the possibility to obtain pure hydrogen (and not derivatives like ammonia) is
attractive as it ismore efficient and avoids the cost of conversion processes.
• A combination of offshore and onshore pipelines can diversify the supply, as there is sufficient
hydrogen generation potential, if the potential for surplus renewable electricity is realised. An
optimised offshore pipeline would provide the most cost-effective means of transport to Central
Europe.
• A hydrogen partnership between the countries bordering the Baltic Sea region and potential
customers such asGermany and Poland presupposes that there is a social consensus in the
Scandinavian countries that the expansion of renewable energies should be on a larger scale
than is necessary for local demand.
Recommendations for next steps
• In this study, a first analysis of the potential of hydrogen production and possible transport to
Central Europe was carried out. The study is based on assumptions from different sources and
modelling.
• Furthermore, we recommend a strategic dialogue between the countries bordering the Baltic Sea
and the countries of the EU that are dependent on hydrogen imports (especially Germany and
Poland). The aim should be to develop a joint strategy and vision for a hydrogen network in the
Baltic Sea region that develops the previous ideas in the discussions on a European hydrogen
backbone and firms up the plans for RES expansion, pipeline planning and industrial use. Due to
the many aspects that need to be considered, a multinational agreement for such a hydrogen
production and network expansion would be necessary.
•

NewBase Energy News 24- May - Issue No. 1727 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 24 May 2024 Energy News issue - 1727 by Khaled Al Awadi_compressed.pdf

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