NewBase July 20-2022 Energy News issue - 1530 by Khaled Al Awadi.pdf

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NewBase Energy News 20 July 2022 No. 1524 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E: Abu Dhabi's NPCC, France's Technip Energies sign J.V. pact
Zawya + NewBase
The JV, which will be headquartered in Abu Dhabi, will target energy transition projects in the UAE
and MENA region. The signing ceremony took place in Paris on the sidelines of the state visit by
the UAE President Sheikh Mohammed bin Zayed Al Nahyan to France.
Abu Dhabi-based energy industry contractor National Petroleum Construction Company (NPCC)
and France-based energy engineering and technology company Technip Energies have signed an
agreement to establish a joint venture company headquartered in Abu Dhabi, it was announced on
Tuesday.
NPCC said in a press statement that the new company, called NT Energies, will target energy
transition projects in the UAE and the broader Middle East and North Africa region by providing
Abu Dhabi’s NPCC launches new company NT Energies with France’s
Technip Energies

added value services in blue and green hydrogen and related decarbonisation projects,
CO2 capture in addition to industrial projects in the fields of waste-to-energy, biorefining,
biochemistry, as well as other energy transition related themes.
The new JV will also provide onshore and offshore oil and gas fields and facilities services, building
and energy efficiency services, oil tanks installation and repair, installation, maintenance and
manufacturing of alternative energy equipment as well as oil and gas facilities consultancy and
engineering consultations on alternative energy and research.
The statement said the agreement was signed by NPCC’s CEO Ahmed Al Dhaheri and Technip
Energy's CEO Arnaud Pieton in the presence of the foreign ministers of UAE and France. NPCC is
wholly-owned by the Abu Dhabi Stock Exchange-listed National Marine Dredging
Company (NMDC).
About NPCC:

Africa, Asia to account for 61% of global VDU capacity additions
TradeArabia News Service
Africa and Asia are set to drive the global refinery vacuum distillation unit (VDU) capacity additions
globally contributing around 61% during 2022-2026, forecasts GlobalData, a leading data, and
analytics company.
The Middle East will be the third-highest contributor, accounting for 27% of the global VDU capacity
additions during the outlook period. Iran will account for most of the capacity additions in the region,
with 516 mbd of capacity expected to be added by 2026 from three new build and an expansion
projects.
GlobalData’s latest report, ‘Refinery Vacuum Distillation Units (VDU) Capacity and Capital
Expenditure Outlook with Details of All Operating and Planned Units, 2021-2026’, reveals that Africa
is likely to witness total VDU capacity additions of 1,327 thousand barrels per day (mbd) through
2026, accounting for 31% of the total global capacity additions. Out of this, 1,307 mbd will be from
new build refineries and the remaining capacity will be from the expansion of existing refineries.
Nigeria to lead
Teja Pappoppula, Oil and Gas Analyst at GlobalData, comments: “Nigeria will lead the new build
VDU capacity additions in Africa through 2026, accounting for around 44% of the total capacity
additions. The planned Lagos I refinery will account for most of the capacity additions in the country.
Around 312 mbd capacity is expected to be added to the refinery by 2023. The Mostorod II refinery
in Egypt is the only upcoming expansion project in Africa, with 19 mbd of capacity expected to be
added in 2024.”
GlobalData identified Asia as the second-highest contributor to the global VDU capacity additions,
accounting for roughly 30% of the total additions through 2026. The announced Larkana refinery in
Pakistan is one of the highest contributors in the region, with 192 mbd of capacity expected to
become operational in 2025.

EU: Nord Stream 1 Russian gas pipeline resumes flows to Germany
Reuters + NewBase
Russia resumed pumping gas through its biggest pipeline to Germany on Thursday after a 10-day
outage, the operator said, easing Europe's supply concerns amid an economic tit-for-tat with the
Kremlin over its invasion in Ukraine.
Europe has been on edge about the restart after annual maintenance of the Nord Stream 1 gas
pipeline, which accounts for more than a third of Russian gas exports to the European Union.
"We are in process of resuming gas transportation. It can take few hours to reach the nominated
transport volumes," a spokesperson for the operator told Reuters.
Governments have been bracing for possible further supply cuts and chasing alternative supplies,
although the global gas market was stretched even before the Ukraine crisis, with demand for the
fuel recovering from the pandemic-induced downturn. read more
Russia has been curbing gas supplies to Europe for months amid a dispute with the West over
sanctions imposed on Moscow for the February invasion. The reductions have exacerbated an
energy crisis, sending gas prices rocketing and putting the region at risk of rationing and shortages
as it seeks to refill energy stores ahead of the winter.
Nord Stream 1 transports 55 billion cubic metres (bcm) a year of gas under the Baltic Sea and has
been offline since July 11.
On the Nord Stream AG website, physical flows were at 21,388,236 kwh/h for 0600-0700 CET
(0400-0500 GMT), from zero previously.
A spokesperson for Austria's OMV said Gazprom signalled it would deliver around 50% of agreed
gas volumes on Thursday, levels seen before the shutdown.

On June 14, Russia reduced gas flows to 40% of capacity through the pipeline, citing the delay of
a turbine being serviced in Canada. read more
As the West accuses Moscow of using its energy resources as a weapon, some European
governments, such as Germany, have said the turbine delay was not a good enough reason for the
curtailment.
Canada has said it had issued a permit for the turbine's return, but it is not known when it will reach
Nord Stream.
Russia insists it is a reliable supplier and dismisses Western charges it is using energy to blackmail
Europe. It also accuses the West in its support for Ukraine of waging economic warfare against
Moscow.
The European Union told member states on Wednesday to cut gas usage by 15% until March amid
further warnings from President Vladimir Putin about future Russian supplies.

U.S. N.Gas supply and demand balance shifts amid outage at
Freeport LNG. source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO)
A fire at Freeport LNG’s natural gas liquefaction plant led to the full shutdown of the facility on June
8. The shutdown reduced U.S. export capacity by an estimated 2.0 billion cubic feet per day (Bcf/d),
and as a result, the U.S. benchmark Henry Hub natural gas spot price fell by $1.27 per million British
thermal units (MMBtu) to $8.16/MMBtu on June 9. The Henry Hub price continued to decline through
the end of June, ending the month at $6.54/MMBtu.
Note: 2H2022=second half of 2022; LNG=liquefied natural gas
Prices fell largely because the outage at Freeport LNG decreased U.S. natural gas exports (a factor
in U.S. natural gas demand), putting downward pressure on natural gas prices. In our July Short-
Term Energy Outlook (STEO), we estimate that U.S. liquefied natural gas (LNG) exports averaged
10.1 Bcf/d in June, a 1.5 Bcf/d decline from May, as a result of the outage.
We expect U.S. LNG exports to remain
below average, at 10.5 Bcf/d in the second
half of 2022 (2H22), which is 1.8 Bcf/d
lower than in our June STEO forecast.
We expect the Henry Hub natural gas spot
price will continue to decline from its June
average of $7.70/MMBtu to an average of
$5.97/MMBtu in the 2H2022. We expect a
price decline mainly because fewer U.S.
LNG exports will likely contribute to a
lower overall U.S. natural gas demand
outlook.

Amid lower natural gas prices, we forecast natural gas consumption in the industrial sector and
electric power sector to rise, offsetting some of the drop in total demand. We expect total demand
(consumption plus exports) to be down by 0.7 Bcf/d in 2H22.
By the spring of 2023, we expect U.S. natural gas production will increase and inventories will build
back to their five-year (2017–2022) average levels, putting additional downward pressure on prices.
The July STEO forecasts the 2023 Henry Hub spot price will average $4.76/MMBtu.

NewBase July -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil price dip down continues on higher U.S. gasoline stockpiles
Reuters+ NewBase
Oil prices fell for a second session on Thursday after higher U.S. gasoline stockpiles
stoked demand worries and returning energy supply from Libya and Russia eased
supply concerns.
Brent crude futures dropped $, or 3.73%, to $103.19 a barrel by 10.00 GMT after slipping
0.4% in the previous session. U.S. West Texas Intermediate crude futures fell $3.92, or 3.9%, to
$95.96 a barrel following a 1.9% drop on Wednesday.
Oil price special
coverage
• Oil prices fall for second session
• Libya's NOC says production resumes at several oilfields
• Gazprom resumes gas flows to EU in Nord Stream 1 pipeline
• ECB poised to hike rates which can weigh on energy demand

Oil prices have been volatile as traders have had to square tighter global supply because of the loss
of Russian barrels following the country's invasion of Ukraine, with recessionary worries that could
weaken energy demand.
The European Central Bank is set to join other central banks in hiking rates, focusing on fighting
runaway inflation rather than the economic downturn, which, in turn, can weigh on oil demand. read
more
U.S. gasoline inventories (USOILG=ECI) rose 3.5 million barrels last week, government data
showed on Wednesday, far exceeding analysts' forecasts. "U.S. gasoline demand is struggling to
shift into top gear during the peak summer driving season," said PVM analyst Stephen Brennock.
Meanwhile, Libya's National Oil Corp (NOC) said on Wednesday crude production had resumed at
several oilfields, after lifting force majeure on oil exports last week. On the natural gas front,
Gazprom (GAZP.MM) resumed flows via the Nord Stream 1 pipeline which supplies more than a
third of Russian gas exports to the European Union.
Still, one of Canada's major oil export arteries, the Keystone pipeline, was operating at reduced
rates for a third day on Wednesday, operator TC Energy said.

NewBase Special Coverage
The Energy world –July -01 -2022
What happens if Russia completely cuts off gas supplies to
Europe before winter?
Babu Das Augustine | Aarti Nagraj + NewBase
With the growing possibility of Moscow stopping supplies coming through the Nord Stream 1 gas
pipeline, European countries need to rapidly look at alternatives. Europe appears to be headed
towards a major energy crisis as Russia, its main source market for natural gas, squeezes supplies
to the continent before the winter months.
Russian state-owned energy company Gazprom declared force majeure on gas supplies to at least
one major customer in Europe, Reuters reported on Monday. Force majeure is a legal measure
allowing companies to free themselves from contractual obligations due to circumstances beyond
their control.
Pipes and pressure gauges for gas lines are pictured at Open Grid Europe, one of Europe's largest
gas transmission system operators, in Germany. AFP
Gazprom, which has a monopoly on Russian gas exports by pipeline, said in a letter that it could
not fulfil its supply obligations owing to "extraordinary" circumstances outside its control, the report
said.

There were already concerns that Russia, which shut down its main Nord Stream 1 pipeline for 10
days starting from July 11 for planned maintenance, will use the opportunity to close it for good,
because of Moscow's stand-off with western powers over its military offensive in Ukraine.
If Russian gas flows from Nord Stream 1, a 1,224-kilometre pipeline under the Baltic Sea, do not
resume, there will be an “intensification of energy saving measures, higher prices and reduced
production in some industries, especially in late autumn and during winter”, across Europe, rating
agency Fitch Ratings said last week.
“We estimate that the shortfall in natural gas will not exceed 10 per cent of annual European
consumption, although the actual amount will depend on factors such as weather that are difficult
to predict,” the rating agency said.
For months, European leaders have been grappling with the prospect of losing Russia’s natural gas
supply, which accounts for some 40 per cent of European imports and has been a crucial energy
lifeline for the continent.
In the immediate short-term, reduction of gas supplies will hit Europe as it battles a severe heat
wave and wild fires with temperatures expected to climb above 40°C over the coming days. This
has put undue demand on gas-fired power generation to keep homes and businesses cool.
If Russia’s prolonged disruptions continue, experts warn of a difficult winter: one of potential
rationing, industrial shutdowns ― and even massive economic dislocation. Last month, Europe’s

largest economy, Germany, declared a gas emergency and called on people to save power, so
that their lights will stay on in winter. The move would also cause problems for other European
countries, after modelling by German regulators said the country would have to curb its onward
exports to countries such as Austria and the Czech Republic.
Unrest has already been brewing, with strikes erupting across the continent as households struggle
under the pressures of spiralling costs of living amid soaring inflation. If timely co-ordinated action
is not taken, the issue could snowball into a massive crisis, the International Energy Agency
(IEA) warned on Monday.
“The gas crisis in Europe has been building for a while, and Russia’s role in it has been clear from
the beginning,” said Fatih Birol, executive director of the IEA.
Even before Russia’s invasion of Ukraine in February, Moscow had started preventing a "significant
amount of gas" from reaching Europe, the IEA said.
This in turn created “artificial tightness in markets”, driving up prices at exactly the same time as
tensions were rising over Ukraine.

Imports of natural gas into Europe come from both pipelines and liquefied natural gas. A major gas
pipeline also shut down for scheduled maintenance last week, and there are fears that flows through
Nord Stream 1 between Russia and Germany will not restart.
By taking steps such as maximising gas supplies from other sources, accelerating the deployment
of solar and wind, leveraging existing low emissions energy sources — such as renewables and
nuclear — and ramping up energy efficiency measures in homes and businesses, the EU can
reduce its reliance on Russia, the IEA said.
“With early and sustained action, it would be possible to reduce the EU’s reliance on Russia gas
imports by one-third within a year — and to do so in an orderly manner that would be consistent
with the EU’s climate ambitions,” Mr Birol said.
This winter could become a historic test of European solidarity — one it
cannot afford to fail — with implications far beyond the energy sector
Fatih Birol, executive director of the IEA
While he acknowledged the introduction of some measures, such as diversifying gas supplies, more
needs to be done on the demand side to "prevent Europe from finding itself in an incredibly
precarious situation today", he said.
European countries will require to save an extra 12 billion cubic metres of gas in the next three
months.
“The first immediate step towards filling European gas storage to adequate levels before winter is
to reduce Europe’s current gas consumption, and to put the saved gas into storage. Some of this is
happening already because of sky-high gas prices, but more is required,” Mr Birol said.
But if Russia decides to completely cut off gas supplies before Europe can increase its storage
levels up to 90 per cent, the situation will be "even more grave and challenging".

"It will require cool-headed leadership, careful co-ordination and a strong degree of solidarity.
European leaders need to be preparing for this possibility now to avoid the potential damage that
would result from a disjointed and destabilising response," Mr Birol said.
The IEA suggested five steps to address the situation, including introducing auction platforms to
incentivise EU industrial gas users to reduce demand; minimising gas use in the power sector;
enhancing co-ordination among gas and electricity operators across Europe; bringing down
household electricity demand; and harmonising emergency planning across the EU at the national
and regional level.
Calling the next few months "critical", Mr Birol said he has been urging EU leaders to "do all they
can right now to prepare for a long, hard winter".
"This winter could become a historic test of European solidarity — one it cannot afford to fail — with
implications far beyond the energy sector. Europe may well be called upon to show the true strength
of its union," Mr Birol said.

NewBase Energy News 21 July 2022 - Issue No. 1530 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the GCC
area via many leading Energy Services companies. Khaled is the Founder of the
NewBase Energy news articles issues, Khaled is an international consultant, advisor,
ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste
management, waste-to-energy, renewable energy, environment protection and
sustainable development. His geographical areas of focus include Middle East, Africa
and Asia. Khaled has successfully accomplished a wide range of projects in the areas
of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor
stations. Executed projects in the designing & constructing of gas pipelines, gas
metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted
& finalized many contracts/agreements in products sale, transportation, operation & maintenance
agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing
for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in
numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is
the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400
popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy,
waste management, plant Automation IA and environmental sustainability in different parts of the world.
Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

NewBase July 20-2022 Energy News issue - 1530 by Khaled Al Awadi.pdf

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