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NewBase Energy News 28 September 2023 No. 1660 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 willing to fund and advance Africa’s energy
transformation: Minister
Staff Writer, ZAWYA
The UAE is ready to help Africa with finance and technology for the continent’s energy
transformation, said Mariam Almheiri, the Emirate’s Minister of Climate Change and Environment.
The country’s experience in developing green energy and industry projects, including some of the
world’s largest solar parks, puts the UAE in a strong position to contribute to Africa’s energy
transition, she told African Business magazine.
Earlier this month, the UAE pledged to invest $4.5 billion to accelerate Africa’s switch to clean
energy. The funds will be provided by the Abu Dhabi Future Energy Company (Masdar), the Abu
Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based AMEA Power.
“We are walking the talk, stepping up where we can, to say: this is our contribution to help Africa in
their energy systems transformation,” Almheiri said. She confirmed that the $4.5 billion pledge
came about through the UAE government working with the four institutions.
The minister admitted that Africa is bearing the brunt of climate change despite contributing only “a
very small” share of cumulative global emissions.
ww.linkedin.com/in/khaled-al-awadi-80201019/
Earlier this month, the UAE pledged to invest $4.5 billion to
accelerate Africa’s switch to clean energy
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Almheiri stated that ensuring that “things get fixed is vital to keep Africa intact and stop the migration
routes”.
African governments have agreed at the Nairobi summit that their focus at COP28 will be on pushing
governments in the Global North to deliver on previous commitments, which include the loss and
damage fund pledged at COP27.
“They have projects ready, but they always say the availability, affordability and accessibility of
finance is the biggest challenge they’re facing,” Almheiri said.
“We’ve realised we cannot just wait,” she stated.
“Every country has to step up and do something. And because we’re hosting the world, we took it
in our own hands to say: Okay, let’s bring some of these entities together and see what we can do,”
Almheiri added.
The UAE will host the COP28 climate summit at Expo City Dubai from November 30 to December
12, 2023.
Wind turbines at the West Coast One wind farm near Vredenburg, South Africa
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UAE Masdar, PLN NP to triple size of ASEAN’s floating solar plant
OGN/ TradeArabia News Service
Masdar and PLN Nusantara Power (PLN NP), have signed an agreement to develop Phase II of
the successful Cirata floating photovoltaic (FPV) power plant in Indonesia by up to 500MW, in a
major expansion to Southeast Asia’s largest FPV plant.
The initial 145MW phase of the innovative floating PV project, located in the picturesque Cirata
reservoir in West Java, Indonesia, is expected to come online later this year.
A recent regulatory development from the Ministry of Public Works and Housing in Indonesia now
allows up to 20 per cent of water coverage for renewable energy uses which will open up the Cirata
expansion to a further 500MW, in addition to the 145MW expected to be operational this year.
The signing ceremony was witnessed by UAE Minister of Energy and Infrastructure, Suhail Al
Mazrouei, Indonesia’s Minister of Defense, Prabowo Subianto, and Indonesia’s Coordinating
Minister of Maritime and Investment Affairs, Luhut Binsar Pandjaitan.
Also in attendance were the UAE Ambassador to Indonesia, ASEAN and Timor Leste, Abdulla Al
Dhaheri, and Indonesia’s Ambassador to the UAE, Husin Bagis.
The ceremony was held at the UAE-Indonesia Economic Forum hosted by the UAE Embassy of
Indonesia to deepen the clean energy partnership between the two nations.
Al Mazrouei, said: “The UAE and Indonesia share a common vision of achieving sustainable
development and realise that renewables are at the heart of this vision. I am pleased to see that
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this partnership has been taken to the next level. Such partnerships feed into our priorities for
COP28, where the energy transition will be front and center with a concerted push to triple
renewable energy capacity by 2030.”
In February 2023, Masdar entered the geothermal energy sector through a strategic investment in
Pertamina Geothermal Energy (PGE). Masdar also opened an office in Jakarta, Indonesia, in 2021
to further strengthen links with key players within the region.
Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, commented, “Masdar, the UAE and
Indonesia are pushing the boundaries of innovation with the Cirata floating solar photovoltaic
project, already the largest in the region at 145MW – and set to grow by an impressive additional
500MW as part of Phase II. Within the key strategic markets of Southeast Asia and Indonesia,
Masdar is building on our productive partnership with PLN group to grow renewable energy capacity
and support Indonesia’s ambitious net-zero objectives ahead of COP28 and beyond.”
Indonesia has plans to increase its renewable energy mix and has pledged to reach net-zero
emissions by 2060 or sooner. The Southeast Asian nation has committed to a 29 per cent reduction
in greenhouse gas (GHG) emissions by 2030, or a 41 per cent reduction with international support.
Ahead of COP28 to be hosted in the UAE later this year, the Memorandum of Understanding (MoU)
expansion agreement demonstrates the UAE’s commitment to supporting countries around the
world with their decarbonisation plans for a cleaner, greener future.
Scaling up renewables could save Indonesia, the largest energy user in the Association of Southeast Asian
Nations (ASEAN) region, as much as $ 51.7 billion per year when the impacts on air pollution and climate
change are included, according to the International Renewable Energy Agency (IRENA).
President Director of PLN NP, Ruly Firmansyah, said: “We’re delighted to be growing our renewable energy
portfolio for Indonesia as we extend our successful partnership with Masdar. The Cirata floating solar
photovoltaic power plant is already a regional leader in size and innovation. With this next phase of
development, we can further expand what is already the largest floating solar PV platform in Southeast Asia
at 145MW which PLN NP and Masdar will be bringing into operation this year.
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UK: Equinor to develop the Rosebank Oil field on the UKCS
Equinor + NewBase
Equinor and Ithaca Energy have taken the final investment decision to progress Phase 1 of the
Rosebank development on the UK Continental Shelf (UKCS), investing USD 3.8 billion. The North
Sea Transition Authority (NSTA) granted consent for the development of the field on 27 September.
'Developing the Rosebank field will allow us to grow our position as a broad energy partner to the
UK, while optimising our oil and gas portfolio, and increasing energy supply in Europe. Rosebank
provides an opportunity to develop a field within the UK Continental Shelf which will bring significant
benefits to Scotland and the wider UK,' says Geir Tungesvik, executive vice president Projects,
Drilling and Procurement at Equinor.
The Rosebank field is located around 130 kms north-west of Shetland in approx. 1,100 metres of
water depth. Total recoverable resources are estimated at around 300 million barrels of oil, with
Phase 1 targeting estimated 245 million barrels of oil.
The field will be developed with subsea wells tied back to a redeployed Floating Production Storage
and Offloading vessel (FPSO), with start-up planned in 2026-2027. Oil will be transported to
refineries by shuttle tankers, while gas will be exported through the West of Shetland Pipeline
system to mainland Scotland.
'We are pleased to move forward with the Rosebank field together with Ithaca Energy,' says Philippe
Mathieu, executive vice president for Exploration and Production International. 'This development
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further strengthens our international business, and we look forward to collaborating closely with our
partner and suppliers to develop and operate Rosebank with the lowest possible carbon footprint
while bringing the maximum value to society in the shape of UK investment, local jobs and energy
security,' says Mathieu.
The Rosebank oil and gas field is being developed in compliance with the North Sea Transition
Deal, an agreement between the UK government and the offshore industry. It acknowledges that
whilst there is a continued, though over time reducing need for oil and gas, the remaining demand
for oil and gas must be met with the lowest emissions possible.
The FPSO has been designed to be electrification-ready and Equinor is collaborating with
government and industry to pursue a regional solution for power from shore to Rosebank and nearby
fields to minimise carbon emissions from production.
According to an independent socioeconomic report by Wood Mackenzie and Voar Energy,
Rosebank is estimated to create £8.1 billion of total direct investment over the lifetime of the field,
of which 78% is likely to be invested in UK-based businesses. It is expected to support around 1,600
jobs during the height of the construction phase of the project, and it will continue to support approx.
450 UK-based jobs during the lifetime of the field.
'We know that the world needs to transition to new, cleaner energy systems and our broad energy
investments into the UK support this. And while we do this there is going to be a continued need for
oil and gas, which currently meets 76% of the UK’s energy needs.
Our decision to progress the Rosebank development is the result of work and collaboration by our
employees, partners, government, regulators, and other stakeholders to ensure that this
development is able to help meet this ongoing need, with the lowest carbon footprint
possible,' says Arne Gürtner, senior vice president Upstream at Equinor in the UK.
TechnipFMC has been awarded an integrated engineering, procurement, construction and
installation (iEPCI™) contract for subsea production systems, umbilicals, risers and flowlines with
an estimated value of around USD 500 million for the local content part. TechnipFMC has estimated
that more than half of the contract value will be generated from local activities across the UK, with
a large portion in Scotland.
Project management and engineering activities will be performed mainly from Aberdeen and tree
systems will be manufactured in Dunfermline. Umbilicals will be produced in Newcastle, pipelines
will be fabricated in Evanton and the main vessel mobilisation site will also be in the UK. In addition,
several other fabrication sites in the UK will contribute to the project.
Odfjell Drilling has been awarded a rig contract, with an estimated value of USD 328 million including
integrated services, modifications and options. The Deepsea Atlantic mobile rig is scheduled to start
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a seven-well drilling campaign in the second quarter of 2025, and in addition four single well options
are included.
Altera has been awarded a bareboat charter and an operations and maintenance contract related
to the Petrojarl Knarr FPSO which is set to be deployed on the Rosebank field on a firm contract for
nine years, and options up to a total of 25 years.
Equinor has been a reliable energy partner to the UK for 40 years, providing a stable supply of oil
and gas, developing the UK’s offshore wind industry, and pioneering solutions to decarbonise the
UK economy.
Today, Equinor supplies 29% of the UK’s gas, and 15% of the UK’s oil. Equinor is currently working
with government in developing plans to invest over £10 billion in the UK by 2030, in total creating
over 5,000 high-quality jobs. For every £1 we plan to invest in the UK in oil and gas we aim to spend
over £2 in renewables, CO2 capture and storage, and hydrogen.
The Rosebank field, relatively small in the global
context, is expected to produce 300 million barrels of
oil in its lifetime.
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EU Should Stick to Fossil Fuel for Making Hydrogen, NGO Says
Bloomberg News - John Ainger
Decarbonizing some of the European Union’s most polluting industries could be more effective if
fossil fuels are used to produce hydrogen in the near term rather than renewables, according to an
environmental organization.
So-called “blue hydrogen” — which is made from natural gas, but with carbon dioxide emissions
captured and stored — is less costly and therefore more likely to be scaled rapidly than “green
hydrogen” made from renewables, according to Clean Air Task Force, a Boston-based
organization.
Its researchers criticized the
EU’s target to produce and
import 20 million tons of green
hydrogen by 2030, arguing it
lacks a “clear basis” and would
suck up electricity made from
renewables that could be put to
better use. Their findings cast
doubt over the envisaged role of
green hydrogen in
decarbonizing the EU’s
economy, even as policy makers
have made it a crucial part of
their plans.
“We should not invest public funding in projects that are not ideal and will lead to very inefficient
projects,” Magnolia Tovar, CATF’s global director of zero-carbon fuels, said in an interview. “We are
critical of the targets. It would be good if the goals are reassessed.”
Hydrogen, the basic chemical element that fuels the sun, has the potential to generate energy with
hardly any CO2 emissions. But unlike solar power or wind, hydrogen first needs to be extracted.
That can be done in a number of ways, some of which are cleaner than others. For now, the most
common — and cheapest — forms of production rely on fossil fuels.
CATF researchers said hydrogen deployment should be limited to emissions-intensive industries
that either already use it, for example as a chemical feedstock, or where no other energy-efficient
or cost-effective decarbonization options are available.
Other environmental groups have pushed against the use of blue hydrogen, arguing that mitigating
emissions via carbon capture and storage risks locking the continent into fossil fuels.
CATF, however, says it’s more cost-effective than importing hydrogen made far away using
renewables. It also recommended exploring the use of imported liquefied natural gas to produce
hydrogen closer to end users in Europe, particularly after the continent increased LNG import
capacity in the aftermath of Russia’s war in Ukraine.
CATF’s report analyzes the cost implications of different methods of transporting hydrogen to
Europe from potential exporters like Norway, Algeria, the US or Chile.
For pipeline transport, Norway is the cheapest provider of low-carbon hydrogen at small volumes of
around 250,000 tons of hydrogen per year, while Algeria is the lowest cost at volumes of 1 million
tons and above.
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Qatar: QatarEnergy signs new LNG ship-building agreement
Source: Qatar Energy
QatarEnergy has signed an agreement with Korea’s HD Hyundai Heavy Industries (HHI) for the
construction of 17 ultra-modern LNG carriers.
The deal, valued at 14.2 billion Qatari Riyals, marks the start of the second phase of QatarEnergy's
LNG ship acquisition program, which will support its expanding LNG production capacity from
the North Field LNG expansion and Golden Pass LNG export projects as well as its long-term fleet
replacement requirements.
Together with the 60 ships that were contracted for by QatarEnergy in the first phase of the program,
which will be built at Korean and Chinese shipyards, today’s agreement brings the total number of
confirmed new LNG vessels to be delivered to QatarEnergy and its affiliates to 77, with more to
follow.
Commenting on this occasion, H.E. Minister Al-Kaabi said 'This is another milestone in our long-
term relationship with HD Hyundai Heavy Industries and the Korean shipbuilding industry in general,
which is built on the strong and strategic partnership between the State of Qatar and the Republic
of Korea.'
His Excellency added: 'These 17 LNG carriers will be built by HD Hyundai Heavy Industries to the
highest technical and environmental standards and specifications. Further, the vessels are designed
to achieve optimal fuel efficiency and significant reduction in carbon emissions. This emphasizes
our continued commitment as a leader in sustainability, innovation, and growth within the LNG
industry.'
To commemorate this occasion, a special ceremony was held in Seoul and was attended by H.E. Mr. Saad
Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of QatarEnergy, senior
executives from QatarEnergy, QatarEnergy LNG and HD Hyundai. The agreement was signed by H.E.
Minister Al-Kaabi and Mr. Ka Sam-hyun , the Vice Chairman & CEO of HD Korea Shipbuilding & Offshore
Engineering (KSOE).
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China moves to modernise power grid, but coal looks set to stay
Reuters
China's plans to create a unified national power market should boost consumption of renewable
power, analysts say, but the impact could be diluted by factors such as flexibility given to provinces
in adopting the system and greater support for coal.
In the bid to reform a rigid and disjointed system that has contributed to severe power outages in
recent years, the powerful state planner aims to set up a national power system by 2030.
That will merge six regional grids into a unified electricity market with spot trading that allows quicker
response to supply and demand issues.
A system blueprint issued last week lays out the mechanisms for spot trading nationwide for the first
time, as well as pricing determined by short-term supply and demand conditions. "Power sector
reform is critical in China's energy transition and ensuring energy security," said Xuewan Chen, an
energy transition analyst at LSEG.
The cabinet has pledged to double down on such reforms as China looks also to spur a move to
renewable power, since the world's largest producer of wind and solar power keeps adding new
capacity but faces challenges in supplying it in time.
A nationwide spot market will allow discovery of electricity prices in real time, boosting renewable
power consumption, Fitch Ratings analysts said in a note following the new rules. Most power deals
are governed by medium and long-term contracts, though a handful of province have trialled spot
trading since 2019.
"Downward price pressure during the hours when renewable power output increases may guide
coal- and gas-fired power generators to reduce production," the Fitch analysts said.
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"Renewable power would also become more competitive due to its lower variable cost." In theory,
as the share of renewables in the power mix increases, coal-fired plants should shift from baseload
operations to providing standby capacity during demand peaks.
But the new rules also propose a capacity compensation scheme for "reasonable returns" at thermal
power plants, Fitch said.
For coal power plants, such payments may just entrench the fuel as a back-up source and reduce
power trading between provinces, said Anders Hove of the China energy research programme at
the Oxford Institute for Energy Studies.
China's economic planner, the National Development and Reform Commission (NDRC), did not
respond to a Reuters request for comment on the risks analysts pointed out.
A capacity payment compensates power generators for standby capacity, regardless of how much
energy they actually produce.
China is considering introducing capacity fees, charged to industrial and commercial power users,
from the beginning of next year, the Bloomberg news agency said on Tuesday, citing a draft of the
plan.
But the rules give provinces leeway in adoption "according to actual conditions", which could
potentially slow the reforms, said Lauri Myllyvirta, lead analyst at the Centre for Research on Energy
and Clean Air and Global Energy Monitor.
Local governments, often the owners of coal power plants and mines, may resist a spot market
system that threatens use of thermal power.
"The owners of the excess coal power capacity that is currently protected by the inefficient electricity
system have a major interest in opposing reforms," said Myllyvirta.
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NewBase September 28 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil surge spooks investors as Dollar shines
NewBase + Reuters
Oil prices scaled one-year highs on Thursday while world stocks eyed their longest losing streak in
two years as worries deepened about persistently high interest rates, sending investors to shelter
in the safety of a surging U.S. dollar.
A surprisingly big drop in U.S. crude stocks has stoked concern that fuel demand is outstripping
production right when markets least needed another supply-side shock.
U.S. crude rose 3.6% on Wednesday and another 1% on Thursday to hit $95 a barrel for the first
time since August 2022. Brent futures hit a one-year high at $97.69.
The prospect of higher energy costs and the spectre of sticky inflation put more pressure on longer-
dated bonds. Benchmark 10-year Treasury yields were steady in Asia, but at 4.599% are up more
than 50 basis points this month.
"It doesn't help," said ING economist Rob Carnell. "What's really starting to weigh on stocks is this
upwards push in Treasury yields, and it's a pretty sensible response," he said, with equities at risk
of further losses even if bonds rebound.
Oil price special
coverage
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Traders are also watching lawmakers' efforts to avoid a U.S. government shutdown. MSCI's index
of global equities (.MIWD00000PUS) moved a fraction lower and could notch its 10th straight daily
fall on Thursday, which would equal a long losing streak from 2021.
MSCI's index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was pinned near a 10-month
trough. U.S. and European futures fluctuated either side of flat. Japan's Nikkei (.N225) fell 1.8%,
with investors selling stocks that went ex-dividend.
The strong dollar has the Japanese yen within a whisker of 150-per-dollar, seen as a level likely to
provoke an official response or intervention. Dollar/yen hit 149.71 on Wednesday and traded at
149.40 on Thursday in Asia. The euro dropped 0.7% to a nine-month low of $1.0488 on Wednesday
and last bought $1.0503.
German and Spanish inflation data are due later in the day, as are a number of central banker
appearances, most notably Federal Reserve Chair Jerome Powell at 2000 GMT.
CHINA BREAK
Chinese markets limped toward a long holiday that begins on Friday and the break may be a
welcome one for traders since recent weeks have brought a drumbeat of bad news and selling.
On Thursday shares in cash-strapped developer China Evergrande (3333.HK) were suspended in
Hong Kong after a report that chairman Hui Ka Yan was under police watch. The stock, once worth
more than HK$30, had closed at HK$0.32 on Wednesday.
Investors worry a liquidation would further damage the tanking property market and stifle signs of
recovery in parts of the Chinese economy.
"China’s property-sector stress will continue to pose cross-sector credit risks in the near term," said
Fitch Ratings on Thursday. "The government’s modest policy easing to date is unlikely to drive a
sharp turnaround in homebuyers’ sentiment."
The Hang Seng (.HSI) fell 1% and is close to a 10-month low. The mainland CSI300 (.CSI300) fell
0.2%.
China's yuan is also coming under pressure and only a very strong fixing of its trading band has
held off sellers. The yuan last changed hands at 7.3057 per dollar, not far from the weaker extremity
of its trading band.
Higher energy prices helped the Australian dollar to stabilise at $0.6378. Gold is heading for its
worst week since February as the rise in Treasury yields drives investors out of the precious metal,
which pays no yield, and it nursed losses at $1,875 an ounce.
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Sour crude oil price rise around the world
Eia + NewBase
Crude oil production cuts among OPEC+ members are limiting the global supply of medium, sour
and heavy, sour grades of crude oil. These cuts are increasing prices for these grades compared
with sweet crude oils, reversing typical price relationships.
Crude oil is classified into categories based on the oil’s density (light, medium, or heavy) and sulfur
content (sweet or sour). Light, sweet crude oils typically trade at a premium compared with any sour
crude oil because sweet crude oils cost less to refine and produce higher yields of more valuable
products.
Medium, sour Dubai Fateh (an Asia-Middle East benchmark), however, recently traded at a
premium to light, sweet Dated Brent (a global benchmark). Dated Brent traded at an average
premium of $2.56 per barrel (b) compared with Dubai Fateh between January 4, 2021, and June
20, 2023.
Note: The figure is based on the five-day moving average of the price spread between Dated
Brent and Dubai Fateh.
However, between June 21 and September 19, the roles reversed, and Dubai Fateh traded at an
average premium of $0.48/b compared with Dated Brent. Trade press reports similar movement in
the price of Norway’s Johan Sverdrup—a medium, sour crude oil—as refiners offer increased prices
to attract constrained supply.
In North America, the spread between the price of medium, sour Mars crude oil and the light, sweet
Magellan East Houston (MEH) has declined since late 2022, and Mars sold at a small premium
briefly in July 2023.
The price of MEH reflects the price of light, sweet crude oil at the Enterprise ECHO terminal in
Houston, Texas. The spread between Mars and MEH has increased over the past few weeks,
although it is still lower than earlier this year.
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In June 2023, OPEC+ members announced they would extend crude oil production cuts through
2024, limiting global crude oil supplies, particularly sour crude oils. On top of the OPEC+ production
cuts, Saudi Arabia announced it would reduce crude oil production by an additional 1 million barrels
per day (b/d) for July.
These additional voluntary production cuts were extended several times, and Saudi Arabia
announced on September 5 that it would extend them through the end of 2023. In our
September Short-Term Energy Outlook, we estimate that OPEC crude oil production averaged 27.0
million b/d in August, the lowest since August 2021, and crude oil production in Saudi Arabia
averaged 8.7 million b/d, the lowest since May 2021.
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook, August
2023, Data Browser
Most of Saudi Arabia’s crude oil contains more than 1% sulfur, our threshold for classifying crude
oil as sour, and production cuts have put more upward price pressure on sour barrels than sweet.
Saudi Arabia also increased the official selling price (OSP) of Arab Light (a medium, sour crude oil)
to Asia and Europe, further pushing up sour crude oil prices.
As a result, sweet and sour crude oil price spreads have narrowed in most major trading hubs,
including those in North America, Europe, and the Middle East.
The extent and duration of the current market dynamics, with sour crude oil prices trading unusually
high, remain uncertain against a backdrop of production cuts, higher OSPs, and heightened demand
for sour crude oil as several new Middle East refineries come online.
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NewBase Specual Coverage
The Energy world –September 28 -2023
CLEAN ENERGY
One Chart worth a Million words.
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 17
NewBase Energy News 28-September - Issue No. 1660 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.
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 18
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 19
Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 20

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NewBase 28 September 2023 Energy News issue - 1660 by Khaled Al Awadi_compressed.pdf

  • 1. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 28 September 2023 No. 1660 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 willing to fund and advance Africa’s energy transformation: Minister Staff Writer, ZAWYA The UAE is ready to help Africa with finance and technology for the continent’s energy transformation, said Mariam Almheiri, the Emirate’s Minister of Climate Change and Environment. The country’s experience in developing green energy and industry projects, including some of the world’s largest solar parks, puts the UAE in a strong position to contribute to Africa’s energy transition, she told African Business magazine. Earlier this month, the UAE pledged to invest $4.5 billion to accelerate Africa’s switch to clean energy. The funds will be provided by the Abu Dhabi Future Energy Company (Masdar), the Abu Dhabi Fund for Development, Etihad Credit Insurance, and Dubai-based AMEA Power. “We are walking the talk, stepping up where we can, to say: this is our contribution to help Africa in their energy systems transformation,” Almheiri said. She confirmed that the $4.5 billion pledge came about through the UAE government working with the four institutions. The minister admitted that Africa is bearing the brunt of climate change despite contributing only “a very small” share of cumulative global emissions. ww.linkedin.com/in/khaled-al-awadi-80201019/ Earlier this month, the UAE pledged to invest $4.5 billion to accelerate Africa’s switch to clean energy
  • 2. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 Almheiri stated that ensuring that “things get fixed is vital to keep Africa intact and stop the migration routes”. African governments have agreed at the Nairobi summit that their focus at COP28 will be on pushing governments in the Global North to deliver on previous commitments, which include the loss and damage fund pledged at COP27. “They have projects ready, but they always say the availability, affordability and accessibility of finance is the biggest challenge they’re facing,” Almheiri said. “We’ve realised we cannot just wait,” she stated. “Every country has to step up and do something. And because we’re hosting the world, we took it in our own hands to say: Okay, let’s bring some of these entities together and see what we can do,” Almheiri added. The UAE will host the COP28 climate summit at Expo City Dubai from November 30 to December 12, 2023. Wind turbines at the West Coast One wind farm near Vredenburg, South Africa
  • 3. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 UAE Masdar, PLN NP to triple size of ASEAN’s floating solar plant OGN/ TradeArabia News Service Masdar and PLN Nusantara Power (PLN NP), have signed an agreement to develop Phase II of the successful Cirata floating photovoltaic (FPV) power plant in Indonesia by up to 500MW, in a major expansion to Southeast Asia’s largest FPV plant. The initial 145MW phase of the innovative floating PV project, located in the picturesque Cirata reservoir in West Java, Indonesia, is expected to come online later this year. A recent regulatory development from the Ministry of Public Works and Housing in Indonesia now allows up to 20 per cent of water coverage for renewable energy uses which will open up the Cirata expansion to a further 500MW, in addition to the 145MW expected to be operational this year. The signing ceremony was witnessed by UAE Minister of Energy and Infrastructure, Suhail Al Mazrouei, Indonesia’s Minister of Defense, Prabowo Subianto, and Indonesia’s Coordinating Minister of Maritime and Investment Affairs, Luhut Binsar Pandjaitan. Also in attendance were the UAE Ambassador to Indonesia, ASEAN and Timor Leste, Abdulla Al Dhaheri, and Indonesia’s Ambassador to the UAE, Husin Bagis. The ceremony was held at the UAE-Indonesia Economic Forum hosted by the UAE Embassy of Indonesia to deepen the clean energy partnership between the two nations. Al Mazrouei, said: “The UAE and Indonesia share a common vision of achieving sustainable development and realise that renewables are at the heart of this vision. I am pleased to see that
  • 4. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 this partnership has been taken to the next level. Such partnerships feed into our priorities for COP28, where the energy transition will be front and center with a concerted push to triple renewable energy capacity by 2030.” In February 2023, Masdar entered the geothermal energy sector through a strategic investment in Pertamina Geothermal Energy (PGE). Masdar also opened an office in Jakarta, Indonesia, in 2021 to further strengthen links with key players within the region. Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, commented, “Masdar, the UAE and Indonesia are pushing the boundaries of innovation with the Cirata floating solar photovoltaic project, already the largest in the region at 145MW – and set to grow by an impressive additional 500MW as part of Phase II. Within the key strategic markets of Southeast Asia and Indonesia, Masdar is building on our productive partnership with PLN group to grow renewable energy capacity and support Indonesia’s ambitious net-zero objectives ahead of COP28 and beyond.” Indonesia has plans to increase its renewable energy mix and has pledged to reach net-zero emissions by 2060 or sooner. The Southeast Asian nation has committed to a 29 per cent reduction in greenhouse gas (GHG) emissions by 2030, or a 41 per cent reduction with international support. Ahead of COP28 to be hosted in the UAE later this year, the Memorandum of Understanding (MoU) expansion agreement demonstrates the UAE’s commitment to supporting countries around the world with their decarbonisation plans for a cleaner, greener future. Scaling up renewables could save Indonesia, the largest energy user in the Association of Southeast Asian Nations (ASEAN) region, as much as $ 51.7 billion per year when the impacts on air pollution and climate change are included, according to the International Renewable Energy Agency (IRENA). President Director of PLN NP, Ruly Firmansyah, said: “We’re delighted to be growing our renewable energy portfolio for Indonesia as we extend our successful partnership with Masdar. The Cirata floating solar photovoltaic power plant is already a regional leader in size and innovation. With this next phase of development, we can further expand what is already the largest floating solar PV platform in Southeast Asia at 145MW which PLN NP and Masdar will be bringing into operation this year.
  • 5. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 UK: Equinor to develop the Rosebank Oil field on the UKCS Equinor + NewBase Equinor and Ithaca Energy have taken the final investment decision to progress Phase 1 of the Rosebank development on the UK Continental Shelf (UKCS), investing USD 3.8 billion. The North Sea Transition Authority (NSTA) granted consent for the development of the field on 27 September. 'Developing the Rosebank field will allow us to grow our position as a broad energy partner to the UK, while optimising our oil and gas portfolio, and increasing energy supply in Europe. Rosebank provides an opportunity to develop a field within the UK Continental Shelf which will bring significant benefits to Scotland and the wider UK,' says Geir Tungesvik, executive vice president Projects, Drilling and Procurement at Equinor. The Rosebank field is located around 130 kms north-west of Shetland in approx. 1,100 metres of water depth. Total recoverable resources are estimated at around 300 million barrels of oil, with Phase 1 targeting estimated 245 million barrels of oil. The field will be developed with subsea wells tied back to a redeployed Floating Production Storage and Offloading vessel (FPSO), with start-up planned in 2026-2027. Oil will be transported to refineries by shuttle tankers, while gas will be exported through the West of Shetland Pipeline system to mainland Scotland. 'We are pleased to move forward with the Rosebank field together with Ithaca Energy,' says Philippe Mathieu, executive vice president for Exploration and Production International. 'This development
  • 6. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 further strengthens our international business, and we look forward to collaborating closely with our partner and suppliers to develop and operate Rosebank with the lowest possible carbon footprint while bringing the maximum value to society in the shape of UK investment, local jobs and energy security,' says Mathieu. The Rosebank oil and gas field is being developed in compliance with the North Sea Transition Deal, an agreement between the UK government and the offshore industry. It acknowledges that whilst there is a continued, though over time reducing need for oil and gas, the remaining demand for oil and gas must be met with the lowest emissions possible. The FPSO has been designed to be electrification-ready and Equinor is collaborating with government and industry to pursue a regional solution for power from shore to Rosebank and nearby fields to minimise carbon emissions from production. According to an independent socioeconomic report by Wood Mackenzie and Voar Energy, Rosebank is estimated to create £8.1 billion of total direct investment over the lifetime of the field, of which 78% is likely to be invested in UK-based businesses. It is expected to support around 1,600 jobs during the height of the construction phase of the project, and it will continue to support approx. 450 UK-based jobs during the lifetime of the field. 'We know that the world needs to transition to new, cleaner energy systems and our broad energy investments into the UK support this. And while we do this there is going to be a continued need for oil and gas, which currently meets 76% of the UK’s energy needs. Our decision to progress the Rosebank development is the result of work and collaboration by our employees, partners, government, regulators, and other stakeholders to ensure that this development is able to help meet this ongoing need, with the lowest carbon footprint possible,' says Arne Gürtner, senior vice president Upstream at Equinor in the UK. TechnipFMC has been awarded an integrated engineering, procurement, construction and installation (iEPCI™) contract for subsea production systems, umbilicals, risers and flowlines with an estimated value of around USD 500 million for the local content part. TechnipFMC has estimated that more than half of the contract value will be generated from local activities across the UK, with a large portion in Scotland. Project management and engineering activities will be performed mainly from Aberdeen and tree systems will be manufactured in Dunfermline. Umbilicals will be produced in Newcastle, pipelines will be fabricated in Evanton and the main vessel mobilisation site will also be in the UK. In addition, several other fabrication sites in the UK will contribute to the project. Odfjell Drilling has been awarded a rig contract, with an estimated value of USD 328 million including integrated services, modifications and options. The Deepsea Atlantic mobile rig is scheduled to start
  • 7. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 a seven-well drilling campaign in the second quarter of 2025, and in addition four single well options are included. Altera has been awarded a bareboat charter and an operations and maintenance contract related to the Petrojarl Knarr FPSO which is set to be deployed on the Rosebank field on a firm contract for nine years, and options up to a total of 25 years. Equinor has been a reliable energy partner to the UK for 40 years, providing a stable supply of oil and gas, developing the UK’s offshore wind industry, and pioneering solutions to decarbonise the UK economy. Today, Equinor supplies 29% of the UK’s gas, and 15% of the UK’s oil. Equinor is currently working with government in developing plans to invest over £10 billion in the UK by 2030, in total creating over 5,000 high-quality jobs. For every £1 we plan to invest in the UK in oil and gas we aim to spend over £2 in renewables, CO2 capture and storage, and hydrogen. The Rosebank field, relatively small in the global context, is expected to produce 300 million barrels of oil in its lifetime.
  • 8. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 EU Should Stick to Fossil Fuel for Making Hydrogen, NGO Says Bloomberg News - John Ainger Decarbonizing some of the European Union’s most polluting industries could be more effective if fossil fuels are used to produce hydrogen in the near term rather than renewables, according to an environmental organization. So-called “blue hydrogen” — which is made from natural gas, but with carbon dioxide emissions captured and stored — is less costly and therefore more likely to be scaled rapidly than “green hydrogen” made from renewables, according to Clean Air Task Force, a Boston-based organization. Its researchers criticized the EU’s target to produce and import 20 million tons of green hydrogen by 2030, arguing it lacks a “clear basis” and would suck up electricity made from renewables that could be put to better use. Their findings cast doubt over the envisaged role of green hydrogen in decarbonizing the EU’s economy, even as policy makers have made it a crucial part of their plans. “We should not invest public funding in projects that are not ideal and will lead to very inefficient projects,” Magnolia Tovar, CATF’s global director of zero-carbon fuels, said in an interview. “We are critical of the targets. It would be good if the goals are reassessed.” Hydrogen, the basic chemical element that fuels the sun, has the potential to generate energy with hardly any CO2 emissions. But unlike solar power or wind, hydrogen first needs to be extracted. That can be done in a number of ways, some of which are cleaner than others. For now, the most common — and cheapest — forms of production rely on fossil fuels. CATF researchers said hydrogen deployment should be limited to emissions-intensive industries that either already use it, for example as a chemical feedstock, or where no other energy-efficient or cost-effective decarbonization options are available. Other environmental groups have pushed against the use of blue hydrogen, arguing that mitigating emissions via carbon capture and storage risks locking the continent into fossil fuels. CATF, however, says it’s more cost-effective than importing hydrogen made far away using renewables. It also recommended exploring the use of imported liquefied natural gas to produce hydrogen closer to end users in Europe, particularly after the continent increased LNG import capacity in the aftermath of Russia’s war in Ukraine. CATF’s report analyzes the cost implications of different methods of transporting hydrogen to Europe from potential exporters like Norway, Algeria, the US or Chile. For pipeline transport, Norway is the cheapest provider of low-carbon hydrogen at small volumes of around 250,000 tons of hydrogen per year, while Algeria is the lowest cost at volumes of 1 million tons and above.
  • 9. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 Qatar: QatarEnergy signs new LNG ship-building agreement Source: Qatar Energy QatarEnergy has signed an agreement with Korea’s HD Hyundai Heavy Industries (HHI) for the construction of 17 ultra-modern LNG carriers. The deal, valued at 14.2 billion Qatari Riyals, marks the start of the second phase of QatarEnergy's LNG ship acquisition program, which will support its expanding LNG production capacity from the North Field LNG expansion and Golden Pass LNG export projects as well as its long-term fleet replacement requirements. Together with the 60 ships that were contracted for by QatarEnergy in the first phase of the program, which will be built at Korean and Chinese shipyards, today’s agreement brings the total number of confirmed new LNG vessels to be delivered to QatarEnergy and its affiliates to 77, with more to follow. Commenting on this occasion, H.E. Minister Al-Kaabi said 'This is another milestone in our long- term relationship with HD Hyundai Heavy Industries and the Korean shipbuilding industry in general, which is built on the strong and strategic partnership between the State of Qatar and the Republic of Korea.' His Excellency added: 'These 17 LNG carriers will be built by HD Hyundai Heavy Industries to the highest technical and environmental standards and specifications. Further, the vessels are designed to achieve optimal fuel efficiency and significant reduction in carbon emissions. This emphasizes our continued commitment as a leader in sustainability, innovation, and growth within the LNG industry.' To commemorate this occasion, a special ceremony was held in Seoul and was attended by H.E. Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of QatarEnergy, senior executives from QatarEnergy, QatarEnergy LNG and HD Hyundai. The agreement was signed by H.E. Minister Al-Kaabi and Mr. Ka Sam-hyun , the Vice Chairman & CEO of HD Korea Shipbuilding & Offshore Engineering (KSOE).
  • 10. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 China moves to modernise power grid, but coal looks set to stay Reuters China's plans to create a unified national power market should boost consumption of renewable power, analysts say, but the impact could be diluted by factors such as flexibility given to provinces in adopting the system and greater support for coal. In the bid to reform a rigid and disjointed system that has contributed to severe power outages in recent years, the powerful state planner aims to set up a national power system by 2030. That will merge six regional grids into a unified electricity market with spot trading that allows quicker response to supply and demand issues. A system blueprint issued last week lays out the mechanisms for spot trading nationwide for the first time, as well as pricing determined by short-term supply and demand conditions. "Power sector reform is critical in China's energy transition and ensuring energy security," said Xuewan Chen, an energy transition analyst at LSEG. The cabinet has pledged to double down on such reforms as China looks also to spur a move to renewable power, since the world's largest producer of wind and solar power keeps adding new capacity but faces challenges in supplying it in time. A nationwide spot market will allow discovery of electricity prices in real time, boosting renewable power consumption, Fitch Ratings analysts said in a note following the new rules. Most power deals are governed by medium and long-term contracts, though a handful of province have trialled spot trading since 2019. "Downward price pressure during the hours when renewable power output increases may guide coal- and gas-fired power generators to reduce production," the Fitch analysts said.
  • 11. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 "Renewable power would also become more competitive due to its lower variable cost." In theory, as the share of renewables in the power mix increases, coal-fired plants should shift from baseload operations to providing standby capacity during demand peaks. But the new rules also propose a capacity compensation scheme for "reasonable returns" at thermal power plants, Fitch said. For coal power plants, such payments may just entrench the fuel as a back-up source and reduce power trading between provinces, said Anders Hove of the China energy research programme at the Oxford Institute for Energy Studies. China's economic planner, the National Development and Reform Commission (NDRC), did not respond to a Reuters request for comment on the risks analysts pointed out. A capacity payment compensates power generators for standby capacity, regardless of how much energy they actually produce. China is considering introducing capacity fees, charged to industrial and commercial power users, from the beginning of next year, the Bloomberg news agency said on Tuesday, citing a draft of the plan. But the rules give provinces leeway in adoption "according to actual conditions", which could potentially slow the reforms, said Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air and Global Energy Monitor. Local governments, often the owners of coal power plants and mines, may resist a spot market system that threatens use of thermal power. "The owners of the excess coal power capacity that is currently protected by the inefficient electricity system have a major interest in opposing reforms," said Myllyvirta.
  • 12. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase September 28 -2023 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil surge spooks investors as Dollar shines NewBase + Reuters Oil prices scaled one-year highs on Thursday while world stocks eyed their longest losing streak in two years as worries deepened about persistently high interest rates, sending investors to shelter in the safety of a surging U.S. dollar. A surprisingly big drop in U.S. crude stocks has stoked concern that fuel demand is outstripping production right when markets least needed another supply-side shock. U.S. crude rose 3.6% on Wednesday and another 1% on Thursday to hit $95 a barrel for the first time since August 2022. Brent futures hit a one-year high at $97.69. The prospect of higher energy costs and the spectre of sticky inflation put more pressure on longer- dated bonds. Benchmark 10-year Treasury yields were steady in Asia, but at 4.599% are up more than 50 basis points this month. "It doesn't help," said ING economist Rob Carnell. "What's really starting to weigh on stocks is this upwards push in Treasury yields, and it's a pretty sensible response," he said, with equities at risk of further losses even if bonds rebound. Oil price special coverage
  • 13. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 Traders are also watching lawmakers' efforts to avoid a U.S. government shutdown. MSCI's index of global equities (.MIWD00000PUS) moved a fraction lower and could notch its 10th straight daily fall on Thursday, which would equal a long losing streak from 2021. MSCI's index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was pinned near a 10-month trough. U.S. and European futures fluctuated either side of flat. Japan's Nikkei (.N225) fell 1.8%, with investors selling stocks that went ex-dividend. The strong dollar has the Japanese yen within a whisker of 150-per-dollar, seen as a level likely to provoke an official response or intervention. Dollar/yen hit 149.71 on Wednesday and traded at 149.40 on Thursday in Asia. The euro dropped 0.7% to a nine-month low of $1.0488 on Wednesday and last bought $1.0503. German and Spanish inflation data are due later in the day, as are a number of central banker appearances, most notably Federal Reserve Chair Jerome Powell at 2000 GMT. CHINA BREAK Chinese markets limped toward a long holiday that begins on Friday and the break may be a welcome one for traders since recent weeks have brought a drumbeat of bad news and selling. On Thursday shares in cash-strapped developer China Evergrande (3333.HK) were suspended in Hong Kong after a report that chairman Hui Ka Yan was under police watch. The stock, once worth more than HK$30, had closed at HK$0.32 on Wednesday. Investors worry a liquidation would further damage the tanking property market and stifle signs of recovery in parts of the Chinese economy. "China’s property-sector stress will continue to pose cross-sector credit risks in the near term," said Fitch Ratings on Thursday. "The government’s modest policy easing to date is unlikely to drive a sharp turnaround in homebuyers’ sentiment." The Hang Seng (.HSI) fell 1% and is close to a 10-month low. The mainland CSI300 (.CSI300) fell 0.2%. China's yuan is also coming under pressure and only a very strong fixing of its trading band has held off sellers. The yuan last changed hands at 7.3057 per dollar, not far from the weaker extremity of its trading band. Higher energy prices helped the Australian dollar to stabilise at $0.6378. Gold is heading for its worst week since February as the rise in Treasury yields drives investors out of the precious metal, which pays no yield, and it nursed losses at $1,875 an ounce.
  • 14. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 Sour crude oil price rise around the world Eia + NewBase Crude oil production cuts among OPEC+ members are limiting the global supply of medium, sour and heavy, sour grades of crude oil. These cuts are increasing prices for these grades compared with sweet crude oils, reversing typical price relationships. Crude oil is classified into categories based on the oil’s density (light, medium, or heavy) and sulfur content (sweet or sour). Light, sweet crude oils typically trade at a premium compared with any sour crude oil because sweet crude oils cost less to refine and produce higher yields of more valuable products. Medium, sour Dubai Fateh (an Asia-Middle East benchmark), however, recently traded at a premium to light, sweet Dated Brent (a global benchmark). Dated Brent traded at an average premium of $2.56 per barrel (b) compared with Dubai Fateh between January 4, 2021, and June 20, 2023. Note: The figure is based on the five-day moving average of the price spread between Dated Brent and Dubai Fateh. However, between June 21 and September 19, the roles reversed, and Dubai Fateh traded at an average premium of $0.48/b compared with Dated Brent. Trade press reports similar movement in the price of Norway’s Johan Sverdrup—a medium, sour crude oil—as refiners offer increased prices to attract constrained supply. In North America, the spread between the price of medium, sour Mars crude oil and the light, sweet Magellan East Houston (MEH) has declined since late 2022, and Mars sold at a small premium briefly in July 2023. The price of MEH reflects the price of light, sweet crude oil at the Enterprise ECHO terminal in Houston, Texas. The spread between Mars and MEH has increased over the past few weeks, although it is still lower than earlier this year.
  • 15. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 In June 2023, OPEC+ members announced they would extend crude oil production cuts through 2024, limiting global crude oil supplies, particularly sour crude oils. On top of the OPEC+ production cuts, Saudi Arabia announced it would reduce crude oil production by an additional 1 million barrels per day (b/d) for July. These additional voluntary production cuts were extended several times, and Saudi Arabia announced on September 5 that it would extend them through the end of 2023. In our September Short-Term Energy Outlook, we estimate that OPEC crude oil production averaged 27.0 million b/d in August, the lowest since August 2021, and crude oil production in Saudi Arabia averaged 8.7 million b/d, the lowest since May 2021. Data source: U.S. Energy Information Administration, Short-Term Energy Outlook, August 2023, Data Browser Most of Saudi Arabia’s crude oil contains more than 1% sulfur, our threshold for classifying crude oil as sour, and production cuts have put more upward price pressure on sour barrels than sweet. Saudi Arabia also increased the official selling price (OSP) of Arab Light (a medium, sour crude oil) to Asia and Europe, further pushing up sour crude oil prices. As a result, sweet and sour crude oil price spreads have narrowed in most major trading hubs, including those in North America, Europe, and the Middle East. The extent and duration of the current market dynamics, with sour crude oil prices trading unusually high, remain uncertain against a backdrop of production cuts, higher OSPs, and heightened demand for sour crude oil as several new Middle East refineries come online.
  • 16. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 NewBase Specual Coverage The Energy world –September 28 -2023 CLEAN ENERGY One Chart worth a Million words.
  • 17. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 NewBase Energy News 28-September - Issue No. 1660 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.
  • 18. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18
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  • 20. Copyright © 2023 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20