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NewBase Energy News 24 August 2022 No. 1541 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi betting on EV batteries may prompt others to announce
ambitious plans
Bloomberg + NewBase
The world’s oil capital wants to go electric and get clean. To do so, it’s getting its hands on minerals
critical for batteries and taking a stake in the electric vehicle-supply chain. That should put countries
and companies prone to announcing ambitious plans but then doing little to make them a reality on
high alert.
As shortages loom and firms attempt to secure prohibitively expensive resources in a bid to scale
up manufacturing, Saudi Arabia has drawn in lithium miners and battery makers to set up
operations, filling a critical gap. The country wants 30% of cars on its capital city’s roads to be
electric by the end of this decade.
Australian battery chemicals and technology company EV Metals Group Plc said it was kicking off
the development of its processing plants for lithium hydroxide monohydrate — a key compound for
batteries — deepening its plans in the kingdom.
The firm has worked with its partners for the past two years on feasibility studies, and the facility
now plans to produce high-grade chemicals for cathode materials in powerpacks, an important
component that EV makers are trying to get their hands on. Another Australian firm, Avass Group,
Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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announced it signed an agreement in February to jointly manufacture electric vehicles and lithium
batteries with the country.
Along with these commitments, Saudi Arabia’s Ministry of Industry and Mineral Resources has
announced $6 billion of projects as part of a larger push to boost its mining industry. It’s also
processing almost 150 exploration license applications from foreign companies.
The government signed an agreement to buy as many as 100,000 electric vehicles over 10 years
from Lucid Group Inc, an EV maker that the country’s sovereign wealth fund has a stake in. It is
allocating more than $3 billion in financing and incentives to set up the plant over the next decade
and a half. Foxconn Technology Group, the largest assembler of iPhones, was in talks to establish
a $9 billion facility that could make chips and EV parts.
Creating manufacturing and processing facilities within its borders is a shrewd and prescient move.
Not only will it eventually help bring down the costs, but more immediately — and importantly — will
ensure the nation becomes a key part of the global electric vehicle-value chain. So far, besides
China and its behemoth battery makers, few others have been able to achieve manufacturing scale.
Saudi Arabia has the resources, capital and conviction — and that’s exactly what’s missing for many
companies and countries. It’s now using its oil-price and demand advantage to make a transition
that others are struggling with.
Its geographical position adds to that, allowing it to supply Europe and get resources from China
and Australia. The kingdom has started assessing and issuing mining licenses quickly to tap into its
mineral resources, with an estimated potential value of $1.3 trillion. Compare that to the US, where
permitting is held up and approvals for such extraction plans have fallen to multi-year lows.
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Meanwhile, it could develop its own resources, too: The lithium in the salty brine byproduct around
its oilfields is becoming a key source for the metal as a supply deficit widens. Researchers are now
working on economically efficient ways to remove and process the lithium into a pure enough form
for use in batteries.
, as shortages raise costs and companies’ battle tightening green regulations to get ahead, is turning
what stands to be a huge threat to its economy into a long-term benefit.
It’s almost too late for the US and parts of Europe to catch up. Other places in the Middle East are
also looking to make the transition away from their economic reliance on oil toward greener
technology. Abu Dhabi recently drew in a lithium firm to build facilities at the Khalifa Industrial Zone
to extract the metal and recover valuable by-products from lithium-mica and phosphate minerals.
It shouldn’t be a surprise, then, if firms and nations soon end up swapping their dependence on
Saudi Arabian oil for critical battery materials, much like they’ve had to do with China.
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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
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QatarEnergy awards EPC contract for 875MW solar plants
QatarEnergy + NewBase
QatarEnergy has awarded an engineering, procurement and construction (EPC) contract for its
industrial cities solar power project (IC Solar), which includes 2 large scale photovoltaic (or PV) solar
power plants to generate 875 MW of renewable electricity.
The plants are to be built in Mesaieed Industrial City (MIC) and Ras Laffan Industrial City (RLIC)
and are expected to start electricity production by the end of 2024.
The announcement was made at a special ceremony held in Doha today to sign the EPC contract
between QatarEnergy Renewable Solutions and Samsung C&T, which has been selected as the
contractor to execute the project.
QatarEnergy Renewable Solutions is a wholly owned affiliate of QatarEnergy tasked with investing
in renewable energy and sustainability projects and products within the State of Qatar and across
the globe.
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, President and CEO of QatarEnergy
witnessed the signing of the EPC contract. Attendees in the ceremony included Sechul Oh,
President & CEO of Samsung C&T Corporation and other senior executives from QatarEnergy and
Samsung C&T.
Saad Sherida Al-Kaabi said: “This IC Solar project is a major step in the implementation of our
strategy to diversify Qatar’s energy resources and to increase the reliance on high-efficiency
renewable energy, which is a cornerstone for a sustainable future.
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“It also reaffirms our commitment towards delivery on QatarEnergy’s Sustainability Strategy and our
mid-term target of having 5 GW of solar generated power by 2035.
It also gives me great pleasure that this landmark project marks the first investment for our newly
formed, wholly owned subsidiary, QatarEnergy Renewable Solutions, which will invest in and hold
all our renewables and other sustainable initiatives going forward.”
This is the second utility-scale solar project in Qatar. Along with Al Kharsaa Solar PV Power Plant,
which is currently under construction, the IC Solar project will increase Qatar’s renewable energy
generation capacity to 1.675 GW by 2024.
The project will utilize high-efficiency bifacial modules mounted on single-axis trackers as well as
cleaning robots that will operate daily to minimize losses due to soiling by removing dust from the
PV modules. This will maximize the additional energy yield produced by the bifacial modules.
The project’s power generation capacity is strategically distributed between the two main industrial
cities in Qatar, MIC and RLIC. MIC will have a 417 MW plant and RLIC will have a 458 MW plant.
The two plants will occupy a combined area of 10 sq km.
The QR2.3 billion ($630 million) IC Solar project will result in direct emissions reduction of more
than 28 million tons of CO2 over its lifetime. The output of both plants will contribute to the reduction
of QatarEnergy’s GHG footprints from its facilities in RLIC and MIC, most notable its NFE and NFS
LNG expansion projects, in addition to expanding grid capacity in other locations.
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Egypt: 4 companies shortlisted for $2bn petrochemicals complex
The National Nada El Sawy + NewBase
Egypt’s Anchorage Investments has shortlisted four international companies to construct a $2 billion
petrochemicals complex in the Suez Canal Economic Zone on the Red Sea. These are :
- South Korea's Hyundai
- Samsung,
- Italy's Technip Energies and
- Spain's Tecnicas Reunidas
Anchorage Investments, which develops and invests in industrial projects within the downstream oil
and gas and mining-driven manufacturing sectors, had issued a tender for the Anchor Benitoite
project in Ain Sokhna in March.
“The international companies that qualified for the second phase are world-class contractors who
have proven track records and global experience,” said Ahmed Moharram, founder and managing
director of Anchorage Investments.
An aerial view of the Suez Canal Economic Zone in Ain Sokhna on Egypt's Red Sea. Photo:
Anchorage Investments.
“Our selection reflects how Anchorage Investments is keen to make the Anchor Benitoite project a
lighthouse project that meets international standards and delivers for investors who are looking to
strengthen their presence in Egypt.”
Scheduled to be completed within three years after the front-end engineering and design phase,
the project aims to contribute to Egypt’s gross domestic project and increase its chemical exports
and foreign direct investments.
Anchorage Investments has selected Hyundai, Samsung, Technip Energies and Tecnicas
Reunidas to compete to be the main contractor for Ain Sokhna project
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Petrochemicals are derived from crude oil processed in a refinery. The derivatives are used to
produce industrial chemicals, plastic products and synthetic rubber.
Egypt’s exports of petrochemicals and fertilisers rose 45 per cent last year, compared to 2020, to
about $6.7bn, according to Minister of Petroleum and Mineral Resources Tarek El Molla.
The Mena region has shown a strong appetite for directing more funds to petrochemicals, the Arab
Petroleum Investments Corporation said in a report in June.
For Egypt, the focus is “import substitution and value chain integration and monetisation”, such as
producing materials that feed into other sectors like industry and agriculture and even aid in the
green energy transition such as solar energy components, the Mena Energy Investment Outlook
2022-2026 report found.
Petrochemical complexes make up four of Egypt’s top 10 energy projects by value.
These are an $8.5bn El Alamein petrochemical complex, a $7.5bn petrochemical complex in Suez,
a $4.29bn Suez Oil refining and petrochemical complex and a $3.71bn crude oil refining and
petrochemical complex in Ain Sokhna, according to Apicorp.
The Anchor Benitoite project encompasses a number of production units producing a total of 1.75
million tonnes per year of petrochemical products and intermediates.
Meanwhile, the SCZone, which covers a 460-kilometre area, has so far signed nine memorandums
of understanding with several global partners for the production of green fuel.
The economic zone said in a statement earlier this week that it expects to sign more MoUs “within
the next few days to reach the largest possible number of final contracts by the Cop27 summit” that
will be held at Red Sea resort Sharm El Sheikh in November.
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UK: Step forward for Keadby 3 Carbon Capture Power Station
Source: SSE
A landmark project in the Humber which could become the UK’s first power station equipped with
carbon capture technology has taken a major leap forward following an announcement by the UK
Government.
Keadby 3 Carbon Capture Power Station, which is being jointly developed by SSE
Thermal and Equinor, has been selected to be taken forward to the due diligence stage by
the Department for Business, Energy and Industry Strategy (BEIS) as part of its Cluster Sequencing
Process.
Significant step forward for Keadby 3 Carbon Capture Power Station
This process will give the project the opportunity to receive government support, allowing it to deploy
cutting edge carbon capture technology, and to connect to the shared CO2 pipelines being
developed through the?East Coast Cluster, with its emissions?safely?stored under the Southern
North Sea. The common infrastructure will also supply low-carbon hydrogen to potential users
across the region.
The planned power station at Keadby – which would have a generating capacity of up to 910MW -
could be operational by 2027 subject to reaching a final investment decision in 2023. It would
capture up to one and a half million tonnes of CO2 a year, which represents at least five per cent of
the UK Government’s 2030 target, while providing low-carbon, flexible power to back-up renewable
generation.
Equinor’s H2H Saltend project, the ‘kick-starter’ for the wider Zero Carbon Humber ambition, has
also been taken to the next stage of the process by BEIS. The planned hydrogen production facility
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could provide a hydrogen supply to Triton Power’s Saltend Power Station as well as other local
industrial users. In June, SSE Thermal and Equinor entered into an agreement to acquire the Triton
Power portfolio.
The two companies are also collaborating on major hydrogen projects in the Humber. Keadby
Hydrogen Power Station could be one of the world’s first 100% hydrogen-fuelled power stations,
while Aldbrough Hydrogen Storage could be one of the world’s largest hydrogen storage facilities.
In addition, they are developing Peterhead Carbon Capture Power Station in Aberdeenshire, which
would be a major contributor to decarbonising the Scottish Cluster.
Catherine Raw, Managing Director of SSE Thermal, said:
'As we continue to scale up renewables across the UK, the need for flexible generation to keep the
lights on and provide vital backup becomes ever more critical. Keadby 3 Carbon Capture Power
Station can do exactly that and will be crucial in meeting our net zero ambitions.'
Catherine added: 'The Humber is the UK’s most carbon intensive industrial cluster, and our
proposed plant will not only help to decarbonise the region but will also ensure a just transition for
workers and communities. We are delighted that BEIS has recognised the strength of our project,
which is being developed alongside Equinor, and we look forward to engaging with them as we
move closer to delivering on the promise of carbon capture.
'Ultimately, both carbon capture and hydrogen will be essential to the UK’s decarbonisation journey,
and momentum continues to build towards this low-carbon future with SSE leading the way through
its ambitious Net Zero Acceleration Programme, which will see £24bn invested this decade alone.'
The first phase of the Cluster Sequencing Process saw the UK Government announce the two
‘Track 1’ clusters which will be supported to develop carbon capture and storage infrastructure. The
East Coast Cluster, which includes the Humber and Teesside regions, was named in ‘Track 1’.
In the second phase, individual emitter projects within those clusters – including Keadby 3 Carbon
Capture Power Station – submitted applications to be considered for government support. BEIS
today announced the 20 projects across both clusters were selected to be taken forward to the due
diligence stage.
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S. Africa’s coal exports to EU surge amid Russia-Ukraine war
Reuters + NewBase
Demand for affordable energy sources such as thermal coal escalated amid the energy security
crisis exacerbated by the escalation of the Russia-Ukraine conflict, South Africa-based Thungela
Resources Limited said in its H1 2022 interim results statement.
Supply constraints in major coal-producing regions resulted in the price of thermal coal increasing
to unprecedented level s, the Johannesburg Stock Exchange-listed thermal coal exporter added.
“Energy security, reliability and affordability concerns in Europe have highlighted the importance of
coal in the energy transition, July Ndlovu, CEO of Thungela Resources, said in the statement.
“Coal is set to remain a critical input for affordable and reliable power generation, not only in the
developing world but also in highly industrialised and developed nations, which have recently
increased their reliance on coal to meet their energy needs.
“We are monitoring these trends and their implications for Thungela’s strategy in the short to
medium-term, with particular attention to exploring opportunities for geographic diversification,” he
added.
Coal sales from South Africa to Europe have increased eight-fold in the first six months of 2022
year-on-year, digital newspaper Africa News reported, quoting the coal exporter. The European
Union banned Russian coal imports in response to the invasion of Ukraine in April, but the ban took
effect on August 10 as part of the wide-ranging sanctions.
European countries, which previously imported 45% of their coal from Russia, have been swapping
expensive natural gas for coal from Colombia, Australia, the US and South Africa, the news report said.
The Netherlands, Germany, Poland, Denmark, France, Italy and Ukraine are among European
countries importing growing quantities of coal from South Africa. In the first five months of this year,
European countries imported more than three million tonnes of coal from South Africa, up 40% more
than the total volume in 2021. Meanwhile, South Africa’s Richards Bay Coal Terminal data showed
it delivered 3.24 million tonnes of coal to European countries by May-end, 15% higher year-on-
year.
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NewBase August 24 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U$D 100 Oil Steadies as US Stockpiles Adds to Tightening Outlook
NewBase + Bloomberg
Oil was steady around U$D 100 per Barrel following an industry report that signaled another draw
in US crude inventories, adding to a tightening supply outlook after Saudi Arabia flagged possible
cuts to production.
West Texas Intermediate traded near $93 a barrel after rising almost 4% in the previous session.
The American Petroleum Institute reported crude stockpiles dropped by 5.63 million barrels last
week, according to people familiar. That followed news that exports from Kazakhstan may be
disrupted for months.
The market is holding up despite a raft of bearish data. Economic activity has weakened from the
US to Europe and Asia, reinforcing concerns that soaring prices and the war in Ukraine will tip the
world into a recession. A stronger dollar also added to headwinds for commodities.
The potential revival of a nuclear deal with Iran, which could lead to a surge in exports from the
OPEC producer, has also weighed on the market recently. A senior House Republican demanded
that the US Congress be given a chance to review any agreement as Tehran and Western powers
inch toward an accord.
Oil price special
coverage
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“Potential OPEC+ production cuts hinted by Saudi Arabia this week has provided a catalyst for
buyers,” said Jun Rong Yeap, a market strategist at IG Asia Pte. However, the prospect for a
renewed nuclear deal with Iran could drive a knee-jerk reaction in oil prices to the downside, he
added.
Oil has lost around a quarter of its value since early June on concerns over an economic slowdown.
Saudi Arabia’s Oil Minister Prince Abdulaziz bin Salman said this week that the futures market is
increasingly disconnected from fundamentals and the OPEC+ alliance may be forced to cut output.
The gap between prompt Brent futures and the second month contract widened on Tuesday
following news of disruptions to Kazakh exports. The spread rose to $1.05 a barrel in backwardation
from 67 cents the day before, a bullish signal indicating supply tightness. It was at 94 cents on
Wednesday.
The Energy Information Administration will release official figures on US demand and stockpiles
later on Wednesday. The API also reported that fuel inventories and supplies at the key storage
hub at Cushing, Oklahoma, rose.
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U.S. crude in SPR hits lowest level since January 1985
U.S. crude inventory in the Strategic Petroleum Reserve (SPR) fell by 8.1 million barrels in the latest
week to the lowest level in more than 35 years, according to data from the Department of Energy.
Stockpiles in the Strategic Petroleum Reserve (SPR) fell to 453.1 million barrels in the week to Aug.
19, according to the data. The 8.1 million-barrel draw was the largest since the end of April and
brought inventory to the lowest level since January 1985.
The large draw comes after a few weeks of smaller releases. An Energy Department spokesperson
said the use of an additive to cool crude for transportation had slowed deliveries in recent weeks,
adding that deliveries for August are being released according to schedule.
President Joe Biden in March set a plan to release 1 million barrels per day over six months from
the SPR to tackle high fuel prices, which have been contributing to soaring inflation.
The SPR stocks have also declined due to sales from congressional mandates and Biden's price
initiative. The oil is sold to accredited oil companies via online auctions, and prices are set using a
five-day average bracketing the date of delivery.
The Energy Department has proposed to replenish the SPR by allowing it to enter contracts to
purchase oil in future years at fixed, preset prices. The administration said it believes the plan would
help boost domestic oil production.
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NewBase Specual Coverage
The Energy world –August -24 -2022
CLEAN ENERGY
Germany's efforts to tackle energy crisis
Reuters + NewBase
Germany has decided to replace all Russian energy imports, most notably natural gas,
by as soon as mid-2024, a Herculean effort given Europe's top economy depends on
Moscow for the fuel to power its industry.
In 2021, Russia accounted for 55% of Germany's gas imports, a level that had declined
to 26% by the end of June 2022, due to significantly reduced flows via the Nord Stream
1 pipeline, which is operating at just 20% of capacity.
Cars park in front of an oil tank of Shell as a pilot flame burns atop a flare stack at the refinery of
the Shell Energy and Chemicals Park Rheinland in Godorf near Cologne, Germany, August 3, 2022.
REUTERS/Wolfgang Rattay
Since a landmark strategic shift outlined in a speech by Chancellor Olaf Scholz, Germany
has taken numerous measures to tackle the challenge while softening the blow to its
economy and citizens.
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Here's an overview:
LNG
Germany has leased four floating storage and regasification units (FSRUs) to quickly
start importing liquefied natural gas (LNG) directly and replace Russian volumes.
Two of the FSRUs will be stationed in
Wilhelmshaven and Brunsbuettel, able to jointly
handle up to 12.5 billion cubic metres a year.
Efforts to build fixed terminals at those two
locations at a later stage are also underway.
The economy ministry has identified the Elbe
river port of Stade and Lubmin on the Baltic Sea
as the two other recipients of the remaining
FSRU.
Germany is also in talks with Qatar and Canada, among others, to raise LNG imports in
the medium term. German utilities have existing supply agreements with Qatar, Australia
and the United States.
LEVIES
Germany has imposed two levies, one to help fund the higher gas procurement costs
which importers are facing to replace lower Russian volumes, and one to beef up efforts
to fill the country's storage facilities.
The gas levy will cost an average family of four an additional annual 480 euros ($482) a
year based on annual consumption of 20,000 kilowatt hours, while another 13 euros
come on top due to the gas storage levy. Both will kick in from Oct. 1.
To protect consumers somewhat, Germany has announced a sales tax reduction for a
limited period, which will cost the state 10 billion euros.
COAL
Germany has passed a law to bring back oil- and coal-fired power plants into the
country's energy mix in case of a critical gas supply situation. This could add 10 gigawatts
of reserve capacity on an interim basis in a deal that runs until March 31, 2024.
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The move has been described as “painful but necessary” by the government’s environmentalist
economics minister, Robert Habeck. It has the backing of leading Greens in the coalition
government, who argue it is needed as a short-term crisis management tool.
It was given final approval by the upper house of parliament on Friday, passed along with a package
of measures to boost the expansion of renewable energies – in part by classifying them as a matter
of public security – including by setting a minimum on the proportion of land each federal state must
allow for windfarms.
But environmental campaigners argue the potential return to using such a highly polluting energy is
a compromise too far and that Germany is in danger of missing even its most basic climate targets.
Before the Ukraine conflict, Germany planned to phase out coal by 2030 as it is far more carbon
intensive than gas. But when gas supplies from Russia – on which Germany is highly dependent –
started running short after Russia reduced the flow, moves were made to restart coal-fired power
plants that had been mothballed.
STORAGE
Germany is trying to fill its gas storage facilities and has set targets to reach 85% by Oct.
1 and 95% by Nov. 1. Storage levels stood at 77.79% on Aug. 16.
Its gas market operator Trading Hub Europe has received 15 billion euros from state
lender KfW (KFW.UL) to fill storage facilities faster, a government source said in
June. read more
BAILOUT
The government has agreed a 15 billion euros bailout for Uniper (UN01.DE), Germany's largest
importer of Russian gas, to ensure it can continue to operate and fulfil its contracts.
Under a bailout that is among the biggest in German corporate history, the government will take a
30% stake in Uniper, reducing the ownership of its Finnish parent Fortum to 56% from nearly 80%
after weeks of tough negotiations.
It will also allow Uniper to start passing on some of the costs of soaring gas prices to consumers in
the coming months, which German Chancellor Olaf Scholz said would be offset by more welfare
support to shield poorer households.
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Aside from taking a 30% in the group, the government has also said it stands ready to provide
further support if operating losses due to lower gas flows and sky-high prices exceed 7 billion euros.
SAVINGS PLEA
The government and its network regulator are regularly asking citizens and companies to reduce
gas consumption. Consumers need to cut the amount they use by at least 20% to avoid the country
from entering a gas supply emergency, at which point rationing would kick in.
RATIONING
Network regulator BNetzA, which would be in charge of rationing, is collecting data from around
2,750 companies to determine gas usage and draw up a list of which sectors would have to be
switched off first.
BNetzA has said it is trying to put together a shutdown list for industry based on six criteria, which
include a company's size, economic damage, and how long it would take to restart specific facilities.
keep nuclear plants running?
Germany's grid operators are carrying out a stress test on behalf of the government to see whether
the lifetime of Germany's three remaining nuclear plants, which account for 6% of the country's
power mix, can be extended.
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The reactors - Isar 2, Neckarwestheim and Emsland - are operated by E.ON (EONGn.DE),
EnBW (EBKG.DE) and RWE (RWEG.DE), some of which have said a short-term lifetime extension
beyond Dec. 31, 2022 is possible without ordering new fuel rods.
A general view shows the nuclear power plant Isar 2 by the river Isar in Eschenbach near Landshut,
Germany, August 17, 2022. REUTERS/Christian Mang/File Photo
German utilities have said they may operate the country's three remaining nuclear reactors beyond
their scheduled year-end closure date, but it is up to Berlin to get the ball rolling.
Power grid operators are currently stress testing the transmission system to assess the risks of an
escalation in the the Russian gas supply crisis as winter approaches, with the results expected
shortly.
The outcome could prompt the government to extend the life of the reactors as it attempts to power
the economy and ward off a recession seen as increasingly likely if faltering Russian gas exports
stop entirely. read more
Former Chancellor Angela Merkel initiated legislation to halt the use of nuclear power after the
Fukushima nuclear disaster of 2011 with a majority of voters in favour, but attitudes are shifting
amid fears of fuel shortages.
A reversal or postponement of the exit plan would mean utilities E.ON (EONGn.DE),
RWE (RWEG.DE) and EnBW (EBKG.DE) having to re-arrange decommissioning schedules and
staffing provisions, while legal, safety and liability issues would have to be worked out with Berlin.
Copyright © 2022 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
NewBase Energy News 25 August 2022 - Issue No. 1541 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 © 2022 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
Copyright © 2022 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 21
Copyright © 2022 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 22
Copyright © 2022 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 23
Copyright © 2022 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 24

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NewBase August 24-2022 Energy News issue - 1541 by Khaled Al Awadi (AutoRecovered).pdf

  • 1. Copyright © 2022 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 24 August 2022 No. 1541 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Saudi betting on EV batteries may prompt others to announce ambitious plans Bloomberg + NewBase The world’s oil capital wants to go electric and get clean. To do so, it’s getting its hands on minerals critical for batteries and taking a stake in the electric vehicle-supply chain. That should put countries and companies prone to announcing ambitious plans but then doing little to make them a reality on high alert. As shortages loom and firms attempt to secure prohibitively expensive resources in a bid to scale up manufacturing, Saudi Arabia has drawn in lithium miners and battery makers to set up operations, filling a critical gap. The country wants 30% of cars on its capital city’s roads to be electric by the end of this decade. Australian battery chemicals and technology company EV Metals Group Plc said it was kicking off the development of its processing plants for lithium hydroxide monohydrate — a key compound for batteries — deepening its plans in the kingdom. The firm has worked with its partners for the past two years on feasibility studies, and the facility now plans to produce high-grade chemicals for cathode materials in powerpacks, an important component that EV makers are trying to get their hands on. Another Australian firm, Avass Group,
  • 2. Copyright © 2022 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 announced it signed an agreement in February to jointly manufacture electric vehicles and lithium batteries with the country. Along with these commitments, Saudi Arabia’s Ministry of Industry and Mineral Resources has announced $6 billion of projects as part of a larger push to boost its mining industry. It’s also processing almost 150 exploration license applications from foreign companies. The government signed an agreement to buy as many as 100,000 electric vehicles over 10 years from Lucid Group Inc, an EV maker that the country’s sovereign wealth fund has a stake in. It is allocating more than $3 billion in financing and incentives to set up the plant over the next decade and a half. Foxconn Technology Group, the largest assembler of iPhones, was in talks to establish a $9 billion facility that could make chips and EV parts. Creating manufacturing and processing facilities within its borders is a shrewd and prescient move. Not only will it eventually help bring down the costs, but more immediately — and importantly — will ensure the nation becomes a key part of the global electric vehicle-value chain. So far, besides China and its behemoth battery makers, few others have been able to achieve manufacturing scale. Saudi Arabia has the resources, capital and conviction — and that’s exactly what’s missing for many companies and countries. It’s now using its oil-price and demand advantage to make a transition that others are struggling with. Its geographical position adds to that, allowing it to supply Europe and get resources from China and Australia. The kingdom has started assessing and issuing mining licenses quickly to tap into its mineral resources, with an estimated potential value of $1.3 trillion. Compare that to the US, where permitting is held up and approvals for such extraction plans have fallen to multi-year lows.
  • 3. Copyright © 2022 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 Meanwhile, it could develop its own resources, too: The lithium in the salty brine byproduct around its oilfields is becoming a key source for the metal as a supply deficit widens. Researchers are now working on economically efficient ways to remove and process the lithium into a pure enough form for use in batteries. , as shortages raise costs and companies’ battle tightening green regulations to get ahead, is turning what stands to be a huge threat to its economy into a long-term benefit. It’s almost too late for the US and parts of Europe to catch up. Other places in the Middle East are also looking to make the transition away from their economic reliance on oil toward greener technology. Abu Dhabi recently drew in a lithium firm to build facilities at the Khalifa Industrial Zone to extract the metal and recover valuable by-products from lithium-mica and phosphate minerals. It shouldn’t be a surprise, then, if firms and nations soon end up swapping their dependence on Saudi Arabian oil for critical battery materials, much like they’ve had to do with China.
  • 4. Copyright © 2022 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 QatarEnergy awards EPC contract for 875MW solar plants QatarEnergy + NewBase QatarEnergy has awarded an engineering, procurement and construction (EPC) contract for its industrial cities solar power project (IC Solar), which includes 2 large scale photovoltaic (or PV) solar power plants to generate 875 MW of renewable electricity. The plants are to be built in Mesaieed Industrial City (MIC) and Ras Laffan Industrial City (RLIC) and are expected to start electricity production by the end of 2024. The announcement was made at a special ceremony held in Doha today to sign the EPC contract between QatarEnergy Renewable Solutions and Samsung C&T, which has been selected as the contractor to execute the project. QatarEnergy Renewable Solutions is a wholly owned affiliate of QatarEnergy tasked with investing in renewable energy and sustainability projects and products within the State of Qatar and across the globe. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, President and CEO of QatarEnergy witnessed the signing of the EPC contract. Attendees in the ceremony included Sechul Oh, President & CEO of Samsung C&T Corporation and other senior executives from QatarEnergy and Samsung C&T. Saad Sherida Al-Kaabi said: “This IC Solar project is a major step in the implementation of our strategy to diversify Qatar’s energy resources and to increase the reliance on high-efficiency renewable energy, which is a cornerstone for a sustainable future.
  • 5. Copyright © 2022 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 “It also reaffirms our commitment towards delivery on QatarEnergy’s Sustainability Strategy and our mid-term target of having 5 GW of solar generated power by 2035. It also gives me great pleasure that this landmark project marks the first investment for our newly formed, wholly owned subsidiary, QatarEnergy Renewable Solutions, which will invest in and hold all our renewables and other sustainable initiatives going forward.” This is the second utility-scale solar project in Qatar. Along with Al Kharsaa Solar PV Power Plant, which is currently under construction, the IC Solar project will increase Qatar’s renewable energy generation capacity to 1.675 GW by 2024. The project will utilize high-efficiency bifacial modules mounted on single-axis trackers as well as cleaning robots that will operate daily to minimize losses due to soiling by removing dust from the PV modules. This will maximize the additional energy yield produced by the bifacial modules. The project’s power generation capacity is strategically distributed between the two main industrial cities in Qatar, MIC and RLIC. MIC will have a 417 MW plant and RLIC will have a 458 MW plant. The two plants will occupy a combined area of 10 sq km. The QR2.3 billion ($630 million) IC Solar project will result in direct emissions reduction of more than 28 million tons of CO2 over its lifetime. The output of both plants will contribute to the reduction of QatarEnergy’s GHG footprints from its facilities in RLIC and MIC, most notable its NFE and NFS LNG expansion projects, in addition to expanding grid capacity in other locations.
  • 6. Copyright © 2022 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 Egypt: 4 companies shortlisted for $2bn petrochemicals complex The National Nada El Sawy + NewBase Egypt’s Anchorage Investments has shortlisted four international companies to construct a $2 billion petrochemicals complex in the Suez Canal Economic Zone on the Red Sea. These are : - South Korea's Hyundai - Samsung, - Italy's Technip Energies and - Spain's Tecnicas Reunidas Anchorage Investments, which develops and invests in industrial projects within the downstream oil and gas and mining-driven manufacturing sectors, had issued a tender for the Anchor Benitoite project in Ain Sokhna in March. “The international companies that qualified for the second phase are world-class contractors who have proven track records and global experience,” said Ahmed Moharram, founder and managing director of Anchorage Investments. An aerial view of the Suez Canal Economic Zone in Ain Sokhna on Egypt's Red Sea. Photo: Anchorage Investments. “Our selection reflects how Anchorage Investments is keen to make the Anchor Benitoite project a lighthouse project that meets international standards and delivers for investors who are looking to strengthen their presence in Egypt.” Scheduled to be completed within three years after the front-end engineering and design phase, the project aims to contribute to Egypt’s gross domestic project and increase its chemical exports and foreign direct investments. Anchorage Investments has selected Hyundai, Samsung, Technip Energies and Tecnicas Reunidas to compete to be the main contractor for Ain Sokhna project
  • 7. Copyright © 2022 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 Petrochemicals are derived from crude oil processed in a refinery. The derivatives are used to produce industrial chemicals, plastic products and synthetic rubber. Egypt’s exports of petrochemicals and fertilisers rose 45 per cent last year, compared to 2020, to about $6.7bn, according to Minister of Petroleum and Mineral Resources Tarek El Molla. The Mena region has shown a strong appetite for directing more funds to petrochemicals, the Arab Petroleum Investments Corporation said in a report in June. For Egypt, the focus is “import substitution and value chain integration and monetisation”, such as producing materials that feed into other sectors like industry and agriculture and even aid in the green energy transition such as solar energy components, the Mena Energy Investment Outlook 2022-2026 report found. Petrochemical complexes make up four of Egypt’s top 10 energy projects by value. These are an $8.5bn El Alamein petrochemical complex, a $7.5bn petrochemical complex in Suez, a $4.29bn Suez Oil refining and petrochemical complex and a $3.71bn crude oil refining and petrochemical complex in Ain Sokhna, according to Apicorp. The Anchor Benitoite project encompasses a number of production units producing a total of 1.75 million tonnes per year of petrochemical products and intermediates. Meanwhile, the SCZone, which covers a 460-kilometre area, has so far signed nine memorandums of understanding with several global partners for the production of green fuel. The economic zone said in a statement earlier this week that it expects to sign more MoUs “within the next few days to reach the largest possible number of final contracts by the Cop27 summit” that will be held at Red Sea resort Sharm El Sheikh in November.
  • 8. Copyright © 2022 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 UK: Step forward for Keadby 3 Carbon Capture Power Station Source: SSE A landmark project in the Humber which could become the UK’s first power station equipped with carbon capture technology has taken a major leap forward following an announcement by the UK Government. Keadby 3 Carbon Capture Power Station, which is being jointly developed by SSE Thermal and Equinor, has been selected to be taken forward to the due diligence stage by the Department for Business, Energy and Industry Strategy (BEIS) as part of its Cluster Sequencing Process. Significant step forward for Keadby 3 Carbon Capture Power Station This process will give the project the opportunity to receive government support, allowing it to deploy cutting edge carbon capture technology, and to connect to the shared CO2 pipelines being developed through the?East Coast Cluster, with its emissions?safely?stored under the Southern North Sea. The common infrastructure will also supply low-carbon hydrogen to potential users across the region. The planned power station at Keadby – which would have a generating capacity of up to 910MW - could be operational by 2027 subject to reaching a final investment decision in 2023. It would capture up to one and a half million tonnes of CO2 a year, which represents at least five per cent of the UK Government’s 2030 target, while providing low-carbon, flexible power to back-up renewable generation. Equinor’s H2H Saltend project, the ‘kick-starter’ for the wider Zero Carbon Humber ambition, has also been taken to the next stage of the process by BEIS. The planned hydrogen production facility
  • 9. Copyright © 2022 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 could provide a hydrogen supply to Triton Power’s Saltend Power Station as well as other local industrial users. In June, SSE Thermal and Equinor entered into an agreement to acquire the Triton Power portfolio. The two companies are also collaborating on major hydrogen projects in the Humber. Keadby Hydrogen Power Station could be one of the world’s first 100% hydrogen-fuelled power stations, while Aldbrough Hydrogen Storage could be one of the world’s largest hydrogen storage facilities. In addition, they are developing Peterhead Carbon Capture Power Station in Aberdeenshire, which would be a major contributor to decarbonising the Scottish Cluster. Catherine Raw, Managing Director of SSE Thermal, said: 'As we continue to scale up renewables across the UK, the need for flexible generation to keep the lights on and provide vital backup becomes ever more critical. Keadby 3 Carbon Capture Power Station can do exactly that and will be crucial in meeting our net zero ambitions.' Catherine added: 'The Humber is the UK’s most carbon intensive industrial cluster, and our proposed plant will not only help to decarbonise the region but will also ensure a just transition for workers and communities. We are delighted that BEIS has recognised the strength of our project, which is being developed alongside Equinor, and we look forward to engaging with them as we move closer to delivering on the promise of carbon capture. 'Ultimately, both carbon capture and hydrogen will be essential to the UK’s decarbonisation journey, and momentum continues to build towards this low-carbon future with SSE leading the way through its ambitious Net Zero Acceleration Programme, which will see £24bn invested this decade alone.' The first phase of the Cluster Sequencing Process saw the UK Government announce the two ‘Track 1’ clusters which will be supported to develop carbon capture and storage infrastructure. The East Coast Cluster, which includes the Humber and Teesside regions, was named in ‘Track 1’. In the second phase, individual emitter projects within those clusters – including Keadby 3 Carbon Capture Power Station – submitted applications to be considered for government support. BEIS today announced the 20 projects across both clusters were selected to be taken forward to the due diligence stage.
  • 10. Copyright © 2022 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 S. Africa’s coal exports to EU surge amid Russia-Ukraine war Reuters + NewBase Demand for affordable energy sources such as thermal coal escalated amid the energy security crisis exacerbated by the escalation of the Russia-Ukraine conflict, South Africa-based Thungela Resources Limited said in its H1 2022 interim results statement. Supply constraints in major coal-producing regions resulted in the price of thermal coal increasing to unprecedented level s, the Johannesburg Stock Exchange-listed thermal coal exporter added. “Energy security, reliability and affordability concerns in Europe have highlighted the importance of coal in the energy transition, July Ndlovu, CEO of Thungela Resources, said in the statement. “Coal is set to remain a critical input for affordable and reliable power generation, not only in the developing world but also in highly industrialised and developed nations, which have recently increased their reliance on coal to meet their energy needs. “We are monitoring these trends and their implications for Thungela’s strategy in the short to medium-term, with particular attention to exploring opportunities for geographic diversification,” he added. Coal sales from South Africa to Europe have increased eight-fold in the first six months of 2022 year-on-year, digital newspaper Africa News reported, quoting the coal exporter. The European Union banned Russian coal imports in response to the invasion of Ukraine in April, but the ban took effect on August 10 as part of the wide-ranging sanctions. European countries, which previously imported 45% of their coal from Russia, have been swapping expensive natural gas for coal from Colombia, Australia, the US and South Africa, the news report said. The Netherlands, Germany, Poland, Denmark, France, Italy and Ukraine are among European countries importing growing quantities of coal from South Africa. In the first five months of this year, European countries imported more than three million tonnes of coal from South Africa, up 40% more than the total volume in 2021. Meanwhile, South Africa’s Richards Bay Coal Terminal data showed it delivered 3.24 million tonnes of coal to European countries by May-end, 15% higher year-on- year.
  • 11. Copyright © 2022 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 NewBase August 24 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE U$D 100 Oil Steadies as US Stockpiles Adds to Tightening Outlook NewBase + Bloomberg Oil was steady around U$D 100 per Barrel following an industry report that signaled another draw in US crude inventories, adding to a tightening supply outlook after Saudi Arabia flagged possible cuts to production. West Texas Intermediate traded near $93 a barrel after rising almost 4% in the previous session. The American Petroleum Institute reported crude stockpiles dropped by 5.63 million barrels last week, according to people familiar. That followed news that exports from Kazakhstan may be disrupted for months. The market is holding up despite a raft of bearish data. Economic activity has weakened from the US to Europe and Asia, reinforcing concerns that soaring prices and the war in Ukraine will tip the world into a recession. A stronger dollar also added to headwinds for commodities. The potential revival of a nuclear deal with Iran, which could lead to a surge in exports from the OPEC producer, has also weighed on the market recently. A senior House Republican demanded that the US Congress be given a chance to review any agreement as Tehran and Western powers inch toward an accord. Oil price special coverage
  • 12. Copyright © 2022 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 “Potential OPEC+ production cuts hinted by Saudi Arabia this week has provided a catalyst for buyers,” said Jun Rong Yeap, a market strategist at IG Asia Pte. However, the prospect for a renewed nuclear deal with Iran could drive a knee-jerk reaction in oil prices to the downside, he added. Oil has lost around a quarter of its value since early June on concerns over an economic slowdown. Saudi Arabia’s Oil Minister Prince Abdulaziz bin Salman said this week that the futures market is increasingly disconnected from fundamentals and the OPEC+ alliance may be forced to cut output. The gap between prompt Brent futures and the second month contract widened on Tuesday following news of disruptions to Kazakh exports. The spread rose to $1.05 a barrel in backwardation from 67 cents the day before, a bullish signal indicating supply tightness. It was at 94 cents on Wednesday. The Energy Information Administration will release official figures on US demand and stockpiles later on Wednesday. The API also reported that fuel inventories and supplies at the key storage hub at Cushing, Oklahoma, rose.
  • 13. Copyright © 2022 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 U.S. crude in SPR hits lowest level since January 1985 U.S. crude inventory in the Strategic Petroleum Reserve (SPR) fell by 8.1 million barrels in the latest week to the lowest level in more than 35 years, according to data from the Department of Energy. Stockpiles in the Strategic Petroleum Reserve (SPR) fell to 453.1 million barrels in the week to Aug. 19, according to the data. The 8.1 million-barrel draw was the largest since the end of April and brought inventory to the lowest level since January 1985. The large draw comes after a few weeks of smaller releases. An Energy Department spokesperson said the use of an additive to cool crude for transportation had slowed deliveries in recent weeks, adding that deliveries for August are being released according to schedule. President Joe Biden in March set a plan to release 1 million barrels per day over six months from the SPR to tackle high fuel prices, which have been contributing to soaring inflation. The SPR stocks have also declined due to sales from congressional mandates and Biden's price initiative. The oil is sold to accredited oil companies via online auctions, and prices are set using a five-day average bracketing the date of delivery. The Energy Department has proposed to replenish the SPR by allowing it to enter contracts to purchase oil in future years at fixed, preset prices. The administration said it believes the plan would help boost domestic oil production.
  • 14. Copyright © 2022 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 NewBase Specual Coverage The Energy world –August -24 -2022 CLEAN ENERGY Germany's efforts to tackle energy crisis Reuters + NewBase Germany has decided to replace all Russian energy imports, most notably natural gas, by as soon as mid-2024, a Herculean effort given Europe's top economy depends on Moscow for the fuel to power its industry. In 2021, Russia accounted for 55% of Germany's gas imports, a level that had declined to 26% by the end of June 2022, due to significantly reduced flows via the Nord Stream 1 pipeline, which is operating at just 20% of capacity. Cars park in front of an oil tank of Shell as a pilot flame burns atop a flare stack at the refinery of the Shell Energy and Chemicals Park Rheinland in Godorf near Cologne, Germany, August 3, 2022. REUTERS/Wolfgang Rattay Since a landmark strategic shift outlined in a speech by Chancellor Olaf Scholz, Germany has taken numerous measures to tackle the challenge while softening the blow to its economy and citizens.
  • 15. Copyright © 2022 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 Here's an overview: LNG Germany has leased four floating storage and regasification units (FSRUs) to quickly start importing liquefied natural gas (LNG) directly and replace Russian volumes. Two of the FSRUs will be stationed in Wilhelmshaven and Brunsbuettel, able to jointly handle up to 12.5 billion cubic metres a year. Efforts to build fixed terminals at those two locations at a later stage are also underway. The economy ministry has identified the Elbe river port of Stade and Lubmin on the Baltic Sea as the two other recipients of the remaining FSRU. Germany is also in talks with Qatar and Canada, among others, to raise LNG imports in the medium term. German utilities have existing supply agreements with Qatar, Australia and the United States. LEVIES Germany has imposed two levies, one to help fund the higher gas procurement costs which importers are facing to replace lower Russian volumes, and one to beef up efforts to fill the country's storage facilities. The gas levy will cost an average family of four an additional annual 480 euros ($482) a year based on annual consumption of 20,000 kilowatt hours, while another 13 euros come on top due to the gas storage levy. Both will kick in from Oct. 1. To protect consumers somewhat, Germany has announced a sales tax reduction for a limited period, which will cost the state 10 billion euros. COAL Germany has passed a law to bring back oil- and coal-fired power plants into the country's energy mix in case of a critical gas supply situation. This could add 10 gigawatts of reserve capacity on an interim basis in a deal that runs until March 31, 2024.
  • 16. Copyright © 2022 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 The move has been described as “painful but necessary” by the government’s environmentalist economics minister, Robert Habeck. It has the backing of leading Greens in the coalition government, who argue it is needed as a short-term crisis management tool. It was given final approval by the upper house of parliament on Friday, passed along with a package of measures to boost the expansion of renewable energies – in part by classifying them as a matter of public security – including by setting a minimum on the proportion of land each federal state must allow for windfarms. But environmental campaigners argue the potential return to using such a highly polluting energy is a compromise too far and that Germany is in danger of missing even its most basic climate targets. Before the Ukraine conflict, Germany planned to phase out coal by 2030 as it is far more carbon intensive than gas. But when gas supplies from Russia – on which Germany is highly dependent – started running short after Russia reduced the flow, moves were made to restart coal-fired power plants that had been mothballed. STORAGE Germany is trying to fill its gas storage facilities and has set targets to reach 85% by Oct. 1 and 95% by Nov. 1. Storage levels stood at 77.79% on Aug. 16. Its gas market operator Trading Hub Europe has received 15 billion euros from state lender KfW (KFW.UL) to fill storage facilities faster, a government source said in June. read more BAILOUT The government has agreed a 15 billion euros bailout for Uniper (UN01.DE), Germany's largest importer of Russian gas, to ensure it can continue to operate and fulfil its contracts. Under a bailout that is among the biggest in German corporate history, the government will take a 30% stake in Uniper, reducing the ownership of its Finnish parent Fortum to 56% from nearly 80% after weeks of tough negotiations. It will also allow Uniper to start passing on some of the costs of soaring gas prices to consumers in the coming months, which German Chancellor Olaf Scholz said would be offset by more welfare support to shield poorer households.
  • 17. Copyright © 2022 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 Aside from taking a 30% in the group, the government has also said it stands ready to provide further support if operating losses due to lower gas flows and sky-high prices exceed 7 billion euros. SAVINGS PLEA The government and its network regulator are regularly asking citizens and companies to reduce gas consumption. Consumers need to cut the amount they use by at least 20% to avoid the country from entering a gas supply emergency, at which point rationing would kick in. RATIONING Network regulator BNetzA, which would be in charge of rationing, is collecting data from around 2,750 companies to determine gas usage and draw up a list of which sectors would have to be switched off first. BNetzA has said it is trying to put together a shutdown list for industry based on six criteria, which include a company's size, economic damage, and how long it would take to restart specific facilities. keep nuclear plants running? Germany's grid operators are carrying out a stress test on behalf of the government to see whether the lifetime of Germany's three remaining nuclear plants, which account for 6% of the country's power mix, can be extended.
  • 18. Copyright © 2022 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 The reactors - Isar 2, Neckarwestheim and Emsland - are operated by E.ON (EONGn.DE), EnBW (EBKG.DE) and RWE (RWEG.DE), some of which have said a short-term lifetime extension beyond Dec. 31, 2022 is possible without ordering new fuel rods. A general view shows the nuclear power plant Isar 2 by the river Isar in Eschenbach near Landshut, Germany, August 17, 2022. REUTERS/Christian Mang/File Photo German utilities have said they may operate the country's three remaining nuclear reactors beyond their scheduled year-end closure date, but it is up to Berlin to get the ball rolling. Power grid operators are currently stress testing the transmission system to assess the risks of an escalation in the the Russian gas supply crisis as winter approaches, with the results expected shortly. The outcome could prompt the government to extend the life of the reactors as it attempts to power the economy and ward off a recession seen as increasingly likely if faltering Russian gas exports stop entirely. read more Former Chancellor Angela Merkel initiated legislation to halt the use of nuclear power after the Fukushima nuclear disaster of 2011 with a majority of voters in favour, but attitudes are shifting amid fears of fuel shortages. A reversal or postponement of the exit plan would mean utilities E.ON (EONGn.DE), RWE (RWEG.DE) and EnBW (EBKG.DE) having to re-arrange decommissioning schedules and staffing provisions, while legal, safety and liability issues would have to be worked out with Berlin.
  • 19. Copyright © 2022 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 NewBase Energy News 25 August 2022 - Issue No. 1541 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.
  • 20. Copyright © 2022 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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  • 24. Copyright © 2022 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 24