NewBase 29 January 2024 Energy News issue - 1703 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 29 February 2024 No. 1703 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 Lanches new EcoMark Global Framework Initiative
WAM + NewBase
The United Arab Emirates, hosts of the 13th WTO Ministerial Conference (MC13) of the World Trade
Organisatio n, have activated the new EcoMark Global Framework Initiative in partnership with the
International Chamber of Commerce (ICC), and the Presidency of the 28th UNFCCC Conference
of the Parties (COP28), which was hosted by the UAE at the close of last year.
Announced at MC13 by Abdelsalam Mohamed Al Ali, Plenipotentiary Minister, UAE Representative
to the World Trade Organisation, the EcoMark Global Framework Initiative aims to establish globally
structured, cost-effective, and universally recognized standards for sustainable products.
The initiative works by facilitating the establishment of trusted accreditation bodies in each country
who will be empowered to assess and certify companies on their green credentials and, in parallel,
providing a toolkit for companies to meet the required criteria. By doing so, EcoMark is making
global green accreditation accessible and affordable for MSMEs.
ww.linkedin.com/in/khaled-al-awadi-80201019/

The COP Presidency and ICC will actively support the promotion of the EcoMark framework to
global SMEs, encouraging greater adoption as a means of enhancing MSMEs' involvement in green
trade. Their role will extend to providing advice on standards development and potential strategies
for engaging SMEs.
Additionally, these supporters will explore the integration of EcoMark with existing and future
initiatives aimed at making trade greener and more inclusive for MSMEs.
The EcoMark Global Framework initiative fills a critical emerging gap in the global trade architecture.
The evolving landscape of green trade presents new opportunities, with growing consumer demand
for eco-friendly products. However, MSMEs struggle to showcase their green credentials due to
high costs and complex processes, keeping them on the outskirts of global green trade.
The new Framework Initiative will support governments in creating accreditation bodies, while also
providing direct capacity building and training for MSMEs toward attaining and demonstrating green
credentials. This will empower them to reach new markets, find customers, and receive proper credit
for their sustainable production practices.
Abdelsalam Mohamed Al Ali said: “The UAE saw a need for an inclusive and accessible green trade
framework tailored for MSMEs to help them capitalize on the increasing demand for sustainable
products and adapt to the evolving trade paradigm. The EcoMark framework represents a significant
step towards a more sustainable and inclusive global economy.”
The initiative’s activation took place on the margins of the World Trade Organization’s (WTO) 13th
Ministerial Conference in Abu Dhabi. The WTO is comprised of 166 Members and is the only
multilateral organization overseeing the rules of trade between nations, dedicated to enabling
member states to use trade as a means to raise living standards, create jobs, and improve people’s
lives across the world. The Ministerial Conference, its topmost decision-making body, meets
biannually.

Egypt: BP to Invest $1.5 Billion as Egypt’s Gas Output Falls
Bloomberg News
BP Plc plans to invest about $1.5 billion in Egypt during the next few years as it seeks to develop
gas projects and drilling in the North African country.
The spending, which will be net to BP, follows the London-based major’s announcement earlier this
month it will form a gas-focused joint venture in Egypt with Abu Dhabi National Oil Co.
The new spending will occur during the next three to four years, a BP spokesperson said in an
emailed response to questions. BP will continue to hold about 70% of its existing interests in Egypt
outside the joint venture with Adnoc.
That partnership, expected to be completed in the second half of this year, will include interests in
three of BP’s development concessions as well as exploration projects. Adnoc will provide a
“proportionate cash contribution” to help fund future growth opportunities, the companies said at the
time.
Egypt’s gas production has fallen to the lowest levels in years as domestic output has been hit by
natural declines at fields, according to Bloomberg calculations.
At the same time, the country has been shipping excess liquefied natural gas to Europe outside the
summer months as the continent seeks to cushion the blow from Russia choking supplies.

Tanzania LNG Slows as State Delays on Signing Agreement
With Equinor, Shell….. Paul Burkhardt and Kari Lundgren, Bloomberg News
Tanzania is delaying key agreements needed to realize a $42 billion liquefied natural gas plant,
slowing a project that developers Equinor ASA and Shell Plc warn has limited time to become a
reality before demand for fossil fuels begins to wane.
Plans to connect offshore gas discoveries to feed an LNG export terminal on the East African
nation’s coast have been in the works for a decade.
The development appeared to gain momentum last year when Tanzania’s President Samia Suluhu
Hassan expressed her support and negotiations were concluded over the host-government
agreement — which outlines commercial legal and fiscal terms — and an amended production-
sharing deal with the project consortium.
Project partners put their initials to fully termed agreements with the government in May 2023, but
since then “progress has indeed been slower than we expected,” said Equinor spokesman Ola
Morten Aanestad. “As the world’s energy system is slowly transitioning from oil and gas, we hope
to advance Tanzania LNG – an attractive project in many respects – on time.”
Major gas discoveries in Tanzania and Mozambique within the last two decades set the region up
as a potential hub for exports of LNG, a fuel that has newfound global importance since Russian
gas exports to Europe largely halted. Yet both have faced years of delays.

Tanzania has had multiple iterations of its project awaiting next steps amid long negotiations over
the terms of contracts, land leases and security arrangements. In Mozambique, construction of
TotalEnergies SE’s LNG facility remains on hold due to attacks near the site by Islamic State-linked
fighters.
Tanzania had expected to sign the documents last July, pending a final assurance process, with a
potential investment decision targeted for 2025. Instead the government has stalled without any
indication of what’s behind the delay, according to a person familiar with the talks, who asked not
to be identified because of the sensitivity of the matter. There’s no sign of how to resolve the
situation, the person said.
“The HGA is still under negotiation,” Tanzania’s Energy Minister Doto Biteko said in a reply to
questions from Bloomberg. He declined to comment further.
“We had hoped to see these agreements signed faster, but we remain ready to continue to work
with the government on competitive and investable agreements, consistent with what we agreed
last year,” a Shell spokesperson said.
It’s not the first time Equinor and Shell, who form a consortium for the project that includes Exxon
Mobil Corp., called for Tanzania to act quickly on the project. They warned about the complexity
and timeline required by mega projects in an article written by their respective country managers
and published in a local newspaper in 2021, a month after Hassan was sworn in as the nation’s
leader.
Completing Tanzania LNG would add at least $7 billion a year to the nation’s GDP, according to a
study by Standard Bank Group Ltd.
Talks on the host government agreement had effectively stopped before 2019 under former
President John Magufuli, as private infrastructure projects stalled and the government clamped
down on opposition leaders and the media.

Europe’s Carbon Market Takes an Unexpected Turn
Bloomberg + NewBase
Europe’s carbon price has done something peculiar this year: It’s gone down.
Right now, if a coal-fired power plant or a steel producer spews a ton of carbon dioxide into the
atmosphere it will cost them around €57. While the market’s up this week, the price is still about
43% lower than a year ago.
It’s a move that’s surprised observers. The region’s emissions trading system is set to tighten in the
coming years as the European Union works toward net zero in 2050.
But the continent’s power network is cleaning up so fast it’s destroying demand for carbon permits,
slashing the price.
Last year, wind and solar farms produced their most electricity ever across the EU, a push
accelerated by the energy crisis, when dwindling natural gas supplies sent fuel costs soaring.
Meanwhile, France’s massive nuclear fleet has recovered from crippling outages to generate near-
record levels, and hydropower is rebounding from a drought. A warm and blustery winter has
subdued energy consumption while boosting output from wind.
The region’s power system is cleaning up so fast it’s destroying
demand for emission permits.
Wind turbines and the lignite-fired Niederaussem power plant in western Germany.

“Decarbonization in the power sector is happening faster than the carbon market can keep up,”
said Mark Lewis, head of research and portfolio manager at Andurand Capital Management.
CO2 prices have also been dragged lower by lackluster demand from industry as scores of
factories were shuttered following 2022’s spike in energy costs. With the market for emission
allowances set to tighten significantly later this decade, it’s likely only a matter of time before prices
pick up again. And that could make buying now a sensible move, according to Lewis.
“At these levels, we’ll look back in two years time and say: ‘If you could have bought carbon at €50,
it was a really smart trade.’”

UK: Labour on a mission to make Britain a 'clean energy superpower'
The National Matthew Davies + NewBase
UK's shadow energy y minister tells the International Energy Week conference that he would lift the
ban on onshore wind in the country if the opposition gets into government
The UK’s shadow energy secretary has told a major conference in London that a Labour
government would make Britain a clean energy superpower, should the opposition party win the
next general election.
Ed Miliband, who is the Labour party's shadow minister for energy security and net zero, promised
delegates at International Energy Week that “becoming a top clean energy superpower will be one
of the top priorities of a Labour government”.
“It’ll be one of Keir Starmer’s five missions for government. That’s because he sees it as being about
good jobs, growing our economy, lower bills and energy security.
“So, it’s not just a climate mission. It’s a security mission, it’s a growth mission and it’s a cost-of-
living mission.”
Earlier, Prof Jim Skea, the chairman of the Intergovernmental Panel on Climate Change, told the
IEW audience that in a stocktake of where the world is currently on climate change, the picture could
be described as “pretty gloomy.”
“The world continues to warm and depending on which data set you use, we may or may not have
passed the 1.5ºC threshold last year.”

“Things that we expected to happen decades in the future, actually started to happen last year –
wildfires, extreme events, etc.”
Nonetheless, while Prof Skea noted that global emissions were still going up, he said the trend had
been “bent”.
“We identified about 20 countries around the world where we’ve seen sustained reductions in
emissions,” he added.
Value for money
Meanwhile, in his speech to the gathering of energy industry leaders, company executives,
economists and academics and policymakers, Mr Miliband added that a clean power system was
“the linchpin of net zero”.
Mr Miliband said a possible future Labour government could not “reject any power sources, we need
them all, providing they are value for money”.
“Our 2030 clean power aim means doubling onshore wind, trebling solar power, quadrupling
offshore wind with support from nuclear power and other technologies.”
As such, Mr Miliband said that
should he become the UK’s next
energy minister, on day one in the
job he would lift the ban on
onshore wind development.
“It’s costing families £180 a year in
higher bills. The current
government could overturn this
ban very easily, it doesn’t require
legislation. But there is a culture of
inertia and stasis,” he said.
Noting that many in the audience
were from the oil and gas
companies, Mr Miliband also said
it was “vital to have a managed
transition” in the sector, “for energy
security, for workers and so we can use the extraordinary infrastructure of the North Sea for our
future”.
Labour’s plan is to use the existing oil and gasfields for their lifetimes, beyond which the North Sea
can be used for carbon capture and storage (CCS), hydrogen and other future technology.
Mr Miliband went on to say that the delivery of clean energy by 2030 depended not so much on the
scale of public investment, but the removal of barriers to private investment.
“I want you to be in no doubt that we stand ready to do what it takes with political will to help unleash
the private investment to help deliver the future that I am laying out,” he said.
“We see public investment crowding-in, not crowding-out private investment. That is the lesson of
the US Inflation Reduction Act.” The Labour Party recently dropped its pledge to spend £28 billion
a year on green projects should it win the next general election.

In the event that it forms the next government, the Labour Party replaced the promise with a new
one of spending £23.7 billion over the course of the next parliament, essentially cutting the annual
amount by more than 75 per cent.
Mr Miliband listed several of Labour’s public investment plans – from upgrading ports so offshore
wind turbines can be made in Britain to industrial clusters to hasten the development of CCS and
hydrogen, and from investment in battery factories to putting money into steel.
'Big economic opportunity'
But he was adamant that while the road to net zero was about large and small projects and adjusting
consumer demand and habits, the outcome of decarbonisation was not just positive in terms of
global temperature reduction but also in terms of baseline economic growth.
“It really matters that we see this as the big economic opportunity of the 21st century,” he said.
“There’s a tendency for us to talk about this, and I think it’s certainly true among parts of the green
movement, in a much too hair-shirtish a way.
“This is a positive vision to make people’s lives better. This about warmer homes, this is about good
jobs for people and it is about lower bills.
“That’s not to say there are not trade-offs and difficulties when managing the [energy] transition, but
I think we should feel that this is positive and exciting and is the vision of the future that the country
needs, rather than some burden that we’ve simply got to take on.”

NewBase February 29 -2024 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices ease, US crude stock build fuels demand fears
Reuters + NewBase
Oil prices eased early on Thursday after a larger-than-expected build in U.S. crude stockpiles stoked
worries about slow demand, while signs that U.S. interest rates could remain elevated for longer
also added to pressure.
Brent crude futures fell 14 cents, or 0.17%, to $83.54 a barrel by 0530 GMT. U.S. West Texas
Intermediate crude futures were down 7 cents, or 0.1%, to $78.47 a barrel. It is expected that prices
will make a gain today and in closing this week end .
U.S. crude oil stockpiles rose while gasoline and distillate inventories fell last week as refiners ran
at below seasonal lows due to planned and unplanned outages, the Energy Information
Administration said on Wednesday.
Crude inventories rose for the fifth consecutive week, increasing by 4.2 million barrels to 447.2
million barrels in the week ended Feb. 23, the EIA said, compared with analysts' expectations in a
Reuters poll for a 2.7 million-barrel rise.
Oil price special
coverage

"Large stockpiles heightened investors' worries over a slow economy and reduced oil demand in
the U.S.," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
"The anticipation of delayed U.S. rate cuts also weighed on the market sentiment as it could
undermine oil demand," he said.
High borrowing costs typically reduce economic growth and oil demand.
Traders have already dialled back expectations for U.S. interest rate cuts after a slew of strong data,
including hot consumer price index and producer price index readings. They expect an easing cycle
to kick off in June, compared with the start of 2024 when bets were on March.
Market participants are now waiting for the U.S. personal consumption expenditures price index,
the Fed's preferred measure of inflation, for more trading cues.
The index, to be released on Thursday, is expected to show prices ticked up 0.3% on a monthly
basis in January.
Still, the conflict in the Middle East is expected to keep a floor under oil prices, Rakuten's Yoshida
said.
Hamas urged Palestinians on Wednesday to march to Jerusalem's Al-Aqsa Mosque at the start of
Ramadan next month, raising the stakes in negotiations for a truce in Gaza, which U.S. President
Joe Biden hopes will be in place by then.
But both Israel and Hamas have played down the prospects for a truce and Qatari mediators have
said the most contentious issues are still unresolved.

From Energy History
More than 20 countries launch declaration to triple nuclear
energy capacity by 2050 at COP28

NewBase Specual Coverage
The Energy world –February 29 -2024
CLEAN ENERGY
Climate change confined to mere annex in draft WTO deal
Reuters + NewBase
The World Trade Organization's chief is on a mission to put climate change at the heart of its work
as part of an effort she is leading to get the watchdog to square up to some of the world's most
pressing challenges.
But at a biennial WTO meeting, opens new tab in Abu Dhabi where negotiators hope to fix new
rules for global commerce, the sole paragraph in a 56-page draft agreement that explicitly
addresses the topic is stuck in an annex - with an explanatory note referring to "deep divergences"
among members.
Director-General of the World Trade Organization Ngozi Okonjo-Iweala speaks during the opening
ceremony of the WTO ministerial meeting in Abu Dhabi, United Arab Emirates, February 26, 2024.
At first blush, it's hard for an outsider to tell what is so controversial since the section merely pledges
to "promote cooperation on environmental aspects of trade" and mandates a WTO committee to
offer recommendations by the next major meeting in two years.
In a rare move, Director-General Ngozi Okonjo-Iweala has intervened to propose alternative
language in the draft Abu Dhabi agreement and negotiations continue.

A commitment to sustainable trade is in the WTO's 30-year- old founding document, with members
aspiring to "protect and preserve the environment and to enhance the means for doing so".
Yet, while it hosts brainstorming sessions among some groups of countries on climate change, it
has no global negotiating stream on it.
Okonjo-Iweala, who recently appointed a special adviser on climate change, wants to confront the
view of some ecologists that free trade is part of the climate problem because it generates transport
emissions and can help drive carbon-intensive economic growth.
Instead, she argues the body can be part of the solution: by tackling fossil fuel subsidies,
harmonising carbon price policies to prevent emissions merely being displaced to other countries
or tackling import tariffs for low-c arbon goods like electric cars, which tend to be higher than for
combustion ones.
But some countries, like India, say the issue has no place on an WTO agenda it wants confined to
pure trade matters.
"WTO should not negotiate rules on non-trade related subjects like climate change, gender, labor
etc. Rather they should be addressed in respective intergovernmental organisations," said India's
Commerce Minister Piyush Goyal, voicing a reticence felt by other developing countries.
Meanwhile, some wealthier states would prefer to go it alone with their own policies, trade experts
say.
"They believe they have enough flexibilities under the rules as they are, and that a big multilateral
negotiation on new rules would not be helpful, and could even constrain some of their future
environmental measures," said Dmitry Grozoubinski, executive director of trade policy think tank,
the Geneva Trade Platform.
 WTO meets in Abu Dhabi to reach trade deals
 'Deep divergences' on climate seen among countries
 Some seek rules on plastics, fossil fuel subsidies
 Others, like India, say no place for climate on WTO agenda

INTERNAL BATTLES
The debate over the climate change paragraph illustrates the difficulties Okonjo-Iweala has
sometimes faced in prioritising the topic within an organisation that is supposed to be led by its
members – all 164 of whom must agree by consensus.
Okonjo-Iweala, a former Nigerian finance minister, has warned about trade policy fragmentation if
the WTO does not step in, citing the example of more than 70 existing carbon price schemes in the
world.
But a presentation by the WTO's Secretariat on a proposed global carbon price methodology last
year in Geneva received a lukewarm reception, according to trade delegates who attended.
Jean-Marie Paugam, WTO Deputy Director-General, acknowledged that there were "different
visions" on carbon pricing but that a WTO-led task force was making progress on the topic.
Overall, Okonjo-Iweala's ideas on the WTO's role in climate change have been well received, he
said. "There is recognition of the DG's leadership in terms of trade and climate," he said.

An area of hope is that, since 2020, groups of countries keen to make progress on environmental
topics are discussing ideas such as new rules constraining fossil fuel subsidies or bans on trade in
some plastic goods.
"Now we are having a discussion on these issues, three years ago this would have been
impossible," said Carolyn Deere Birkbeck, Executive Director of the Forum on Trade, Environment
and the SDGs (Sustainable Development Goals).
One day these talks known as "plurilaterals" may form the basis for broader negotiations on new
rules binding for all countries, the trade experts say.
"This work is really foundational to inform what the membership may wish to do at the WTO," said
Canada's Trade Minister Mary Ng. If the second part of a deal on cutting subsidies that lead to
overfishing is agreed in Abu Dhabi after more than 20 years of talks, this could spur more progress.
Many developing states fear that countries' new policies in this area, such as the EU's carbon border
tax, will place them at a trade disadvantage since they have fewer resources to decarbonise their
industries.
The EU has said the tax is in line with WTO rules, affecting both domestic and foreign producers. It
has proactively engaged with partners and made presentations at the WTO to explain its policies,
an EU spokesperson said.
But for some, discussions around such tensions are exactly the right place for the WTO to start.
"What we do not want is a new form of protectionism to arise. But these are things that can only be
treated if you are at the table engaging in the give and take," said Kerrie Symmonds, minister of
foreign affairs and trade for Barbados.
"We believe strongly the WTO has the convening power to host these types of discussions and
facilitate them."

NewBase Energy News 29-February - Issue No. 1703 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.

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