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NewBase Energy News 27 July 2022 No. 1531 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Egypt: Rosatom kicks off work at Egypt’s first nuclear reactor
Alahram + NewBase
Russian nuclear giant Rosatom has kicked off work on Egypt’s first reactor with the pouring of the
concrete base at the nuclear plant located in the city of El Dabaa, Matrouh Governorate, on the
Mediterranean coast, roughly 300 km north-west of Cairo.
On completion, the El Dabaa Nuclear Power Plant will boast four VVER-1200 pressurised water
reactors with total capacity of 1200 MW. The project, which was conceived in the 1980s, was agreed
by presidents Abdel Fattah el-Sisi and Vladimir Putin in December 2017, but the start of works was
then subject to numerous delays.
In February 2020, three Egyptian companies – Petrojet, Hassan Allam and Arab Contractors – were
chosen to begin site preparation work.
As per the contract, Rosatom will be responsible for the funding and construction of the plant in
addition to supply of Russian uranium to fuel it. Also the company will assist in personnel training
and support the Egyptians in the operation and servicing of the Nuclear Power Plant for the first 10
years of its operation.
They will provide training to Egyptian engineers to help update their skills needed to run the reactors.
The Russian group will also build a storage facility for nuclear fuel.
Speaking at the ceremony, Rosatom Director General Alexey Likhachev said: "The construction
launch at the El Dabaa NPP Unit 1 means that Egypt has joined the nuclear club. Rosatom will build
cutting-edge power units of VVER-1200 design in the Arab Republic of Egypt."
"We have gained experience constructing and operating NPPs with such reactors both in Russia
and abroad. Construction of the nuclear power plant will allow Egypt to reach a new level of
technology, industry and education development. The plant will be the largest project of the Russian-
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Egyptian cooperation since the Aswan High Dam. Having its own nuclear energy industry has been
a dream for the Egyptian people for more than half-a-century, and it is a great honour for Rosatom
to make this dream come true," he stated.
He was joined by Dr Mohamed Shaker, Egyptian Minister of Electricity and Renewable Energy, and
Dr Amged El-Wakeel, Board Chairman of the Nuclear Power Plants Authority of Egypt (NPPA), the
owner and future operator of the El Dabaa Nuclear Power Plant, at the pouring in ceremony.
Dr Shaker dubbed the commencement of full-scale construction of Unit 1 as a historic event for
Egypt.
"The political leadership and the Egyptian-Russian cooperation contributed to implementation of
this ambitious project despite the challenges presented by the Covid-19 pandemic which did not
have a negative impact on the project," he added.-
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UAE’s Adnoc Buys ZMI Holdings in Offshore Oil and Wind Push
Bloomberg - Paul Wallace
The United Arab Emirates’ main energy company has bought privately-owned ZMI Holdings as it
looks to bolster its offshore oil, natural gas and wind businesses.
Abu Dhabi National Oil Co. will acquire all of ZMI, which is based in the UAE and also known as
Zakher Marine International, according to a statement. Financial details of the transaction were not
disclosed.
ZMI said it will probably
make record earnings
before interest, tax,
depreciation and
amortization this year of
more than $300 million,
helped by a surge in oil
and gas prices since
Russia’s invasion of
Ukraine. Companies in
the sector are typically
valued at anything
between five and 15
times Ebitda.
ZMI will retain its brand
and continue operating
as a standalone entity,
though it will come
under Adnoc Logistics & Services, an arm that Adnoc is considering listing, Bloomberg reported in
February.
Goldman Sachs Group Inc. advised ZMI and Moelis & Co. worked with Adnoc.
ZMI was established in 1984 and employs around 1,400 people in the UAE, Saudi Arabia, Qatar
and China, where it won its first contract -- for an offshore wind project -- last year. The firm’s fleet
of 62 support ships and barges is valued at roughly $1.6 billion, Finance Director Ahmed Omar said
in an interview.
Wind Power
Oil and gas still make up most of ZMI’s business, though it sees its wind division growing rapidly in
the coming years as governments and investors shift from fossil fuels to renewable energy.
“The energy transition played a large role in Adnoc’s view of the business,” ZMI’s chief executive
offer, Ali Hassan El Ali, said in the same interview. “A large part of the strategy is to continue
expanding geographically.”
The CEO is the son of ZMI’s founder and sole shareholder, Hassan Abdelkader El Ali.
ZMI began talks with Adnoc in 2020. It considered an initial public offering but was partly put off by
this year’s slump in global equity markets, Omar said.
“It’s been a lengthy process,” he said. “Adnoc has ambitious plans for the business. We wanted to
make sure we were aligned.”
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Libyan Oil Output Hits 1 Million Barrels a Day
Bloomberg News + NewBase
Libya boosted oil production to more than 1 million barrels a day, a milestone for the North African
country where output had more than halved since mid-April.
The OPEC member, home to Africa’s largest crude reserves, ramped up its production to a “little
over” a million barrels a day, Oil Minister Mohamed Oun said. The increase follows an agreement
with protesters and tribal heads reached more than a week ago to reopen fields and export terminals
that had been largely shut since mid-April. Before the restart, production was down to 560,000
barrels a day.
Libya has seen production plummet by about 50% in recent months due to a power struggle
between rival governments, while chronic underinvestment in infrastructure also curtailed output.
Higher Libyan production could offer some relief for undersupplied oil markets and high prices that
have stoked inflation across the globe.
Part of the deal to reopen oil was the government’s move on July 14 to overhaul the board of the
state oil firm National Oil Corp. and the appointment of Farhat Bengdara as head of the group. He
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replaced Mustafa Sanalla, who had frequently been at odds with the oil ministry that was reinstated
by the Tripoli-based government. Bengadara vowed to ramp up production quickly to its normal
levels of 1.2-1.3 million barrels a day soon.
Libya’s energy facilities have been at the heart of the North African nation’s conflicts over the past
decade, with various groups shutting down oil output to press their political and economic demands.
The nation has been mired in conflict since the fall of dictator Moammar Al Qaddafi in 2011. It’s now
facing a standoff between two politicians — Abdul Hamid Dbeibah in the west and Fathi Bashagha
in the east— who each claim to be the legitimate prime minister. The recent closures in mid-April
were linked to politics with some protests at ports and fields demanding the transfer of power to
Bashagha, the fair distribution of oil revenues and the dismissal of Sanalla.
Libya’s Alfaragh field begins pumping gas
Libya’s National Oil Company (NOC) said that the country’s largest gas field Alfaragh has begun
the process of pumping gas to the Electrical Sarir station. The Alfaragh field is one of Waha Oil
Company’s fields and is located 60 km southwest of the Jalu field.
NOC explained that this process will contribute to reducing the hours of electricity cut-off as the
Electrical Sarir station enters the electricity network. Over the next few months, crude oil production
is expected to reach one million and two hundred thousand barrels per day.
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U.S is the world’s largest LNG exporter in the first half of 2022
Data source: U.S. Energy Information Administration, Liquefaction Capacity Table, and U.S. Department of Energy LNG reports
The United States became the world’s largest liquefied natural gas (LNG) exporter during the first
half of 2022, according to data from CEDIGAZ. Compared with the second half of 2021, U.S. LNG
exports increased by 12% in the first half of 2022, averaging 11.2 billion cubic feet per day (Bcf/d).
U.S. LNG exports continued to grow for three reasons—increased LNG export capacity, increased
international natural gas and LNG prices, and increased global demand, particularly in Europe.
According to our estimates, installed U.S. LNG export capacity has expanded by 1.9 Bcf/d nominal
(2.1 Bcf/d peak) since November 2021. The capacity additions included a sixth train at the Sabine
Pass LNG, 18 new mid-scale liquefaction trains at the Calcasieu Pass LNG, and increased LNG
production capacity at Sabine Pass and Corpus Christi LNG facilities.
As of July 2022, we estimate that U.S. LNG liquefaction capacity averaged 11.4 Bcf/d, with a
shorter-term peak capacity of 13.9 Bcf/d.
International natural gas and LNG prices hit record highs in the last quarter of 2021 and first half of
2022. Prices at the Title Transfer Facility (TTF) in the Netherlands have been trading at record highs
since October 2021.
TTF averaged $30.94 per million British thermal units (MMBtu) during the first half of 2022. LNG
spot prices in Asia have also been high, averaging $29.50/MMBtu during the same period.
Since the end of last year, countries in Europe have increasingly imported more LNG to compensate
for lower pipeline imports from Russia and to fill historically low natural gas storage inventories. LNG
imports in the EU and UK increased by 63% during the first half of 2022 to average 14.8 Bcf/d.
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Most U.S. LNG exports went to the EU and the UK during the first five months of this year,
accounting for 71%, or 8.2 Bcf/d, of the total U.S. LNG exports. Similar to 2021, the United States
sent the most LNG to the EU and UK during the first half of the year, providing 47% of the 14.8 Bcf/d
of Europe's total LNG imports, followed by Qatar at 15%, and Russia at 14%, and four African
countries combined at 17%.
In June, the United States exported 11% less LNG than the 11.4 Bcf/d average exports during the
first five months of 2022, mainly as a result of an unplanned outage at the Freeport LNG export
facility. Freeport LNG is expected to resume partial liquefaction operations in early October 2022.
Utilization of the peak capacity at the seven U.S. LNG export facilities averaged 87% during the first
half of 2022, mainly before the Freeport LNG outage, which is similar to the utilization on average
during 2021.
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Nigeria: TotalEnergies start of production from the Ikike field
Source: TotalEnergies
TotalEnergies, OML99 operator (40%) in partnership with the Nigerian National Petroleum
Corporation (NNPC, 60%), has announced the start of production from the Ikike field, in Nigeria.
Located 20 kms off the coast, at a depth of about 20 meters, the Ikike platform is tied back to the
existing Amenam offshore facilities through a 14 km multiphase pipeline. It will deliver peak
production of 50,000 barrels of oil equivalent per day by the end of 2022.
The Ikike project leverages existing facilities to keep costs low, and is designed to minimize
greenhouse gas emissions: estimated at less than 4kg CO2e/boe, they will contribute to reducing
the average carbon intensity of TotalEnergies’ upstream portfolio. In addition, 95% of hours were
worked locally: the jacket as well as the topside modules were entirely built and integrated by local
contractors.
'TotalEnergies is pleased to start production at Ikike, which was launched a few months before the
covid pandemic, and whose success owes a lot to the full mobilization of the teams. By tapping
discoveries close to existing facilities, this project fits the Company’s strategy of focusing on low-
cost and low-emission oil projects,' said Henri-Max Ndong-Nzue, Senior Vice President Africa,
Exploration and Production at TotalEnergies.
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E.U looks to replace gas from Russia with Nigerian supplies
Reuters + NewBase
The European Union is seeking additional gas supplies from Nigeria as the bloc prepares for
potential Russian supply cuts, Matthew Baldwin, deputy director general of the European
Commission's energy department, said on Saturday.
Baldwin was speaking in Nigeria where he held meetings with officials from Africa's largest oil
producer this week.
He was told that Nigeria was improving security in the Niger Delta and planned to re-open the Trans
Niger pipeline after August, which would yield more gas exports to Europe.
The EU imports 14% of its total LNG supplies from Nigeria and there is potential to more than double
this, Baldwin told Reuters by phone.
Oil and gas output in Nigeria is being throttled by theft and vandalism of pipelines, leaving gas
producer Nigeria LNG Ltd's terminal at Bonny Island operating at 60% capacity.
"If we can get up to beyond 80%, at that point, there might be additional LNG that could be available
for spot cargoes to come to Europe," Baldwin said. "They (Nigerian officials) said to us, 'Come and
talk to us again at the end of August because we think we can deliver real progress on this'."
Nigeria NLG is owned by state-oil company NNPC Ltd, Shell, TotalEnergies and Eni.
The European Commission said on Wednesday that EU member states should cut their gas use by
15% from August to March. The target would initially be voluntary, but would become mandatory if
the Commission declared an emergency. read more
Last year, Nigeria exported 23 billion cubic metres (bcm) of gas to the EU, but the figure has been
declining over the years. In 2018 the bloc bought 36 bcm of LNG from Nigeria, Baldwin said.
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NewBase July 27 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises for a second day on supply tightness concerns
Reuters + NewBase
Oil prices rose on Tuesday for a second day on increasing concerns about tightening European
supply after Russia, a key energy supplier to the region, cut gas supply through a major pipeline.
Brent crude futures rose $1.14, or 1.1%, to $106.29 a barrel by 1029 GMT, extending a 1.9% gain
the previous day. U.S. West Texas Intermediate (WTI) crude futures increased $1.31, or 1.4%, to
$98.01 a barrel, having gained 2.1% on Monday.
Russia tightened its gas squeeze on Europe on Monday as Gazprom (GAZP.MM) said supplies
through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity.
Oil price special
coverage
 Russia's Gazprom tightens squeeze on gas flow to Europe
 Fed expected to hike rates 75 bps on Wednesday
 Brent premium to U.S. crude hits widest in three years
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The cut in supplies will leave countries unable to meet their goals to refill natural gas storage ahead
of the winter demand period. Germany, Europe's biggest economy, faces potentially rationing gas
to industry to keep its citizens warm during the winter months.
"The announcement revived fears that Russia, despite its cynical denial, will not shy away from
using its energy as a weapon in order to gain concessions in its war against Ukraine and...could
probably expect short-term success," Tamas Varga from oil brokerage PVM said.
The European Union has repeatedly accused Russia of resorting to energy blackmail, while the
Kremlin says shortfalls have been caused by maintenance issues and the effect of Western
sanctions.
On Tuesday, EU countries agreed an emergency regulation to curb their gas use this winter.
Europe's crude, oil product and gas supplies have been disrupted by a combination of Western
sanctions and payment disputes with Russia since its Feb. 24 invasion of Ukraine, which Moscow
calls a "special military operation."
Still, falling demand because of recent high crude and fuel prices and the expectation of an increase
in interest rates in the United States have put pressure on prices.
The U.S. central bank is widely expected to raise interest rates by 75 basis points at the conclusion
of its policy meeting on Wednesday. That increase may reduce economic activity and thus impact
fuel demand growth.
Morgan Stanley said that 77% of global central banks have hiked rates in the last six months, with
that percentage reaching a 40-year high, and "making this the most-synchronised cycle of rate hikes
since the early 1980s".
The bank lowered its demand growth forecasts for this year and next. It forecasts Brent crude prices
at $110 a barrel in the third quarter and WTI at $107.50, each $20 lower than their previous forecast.
The gap between European and international oil benchmark Brent and U.S. benchmark WTI has
widened to levels not seen since June 2019 as easing gasoline demand in the United States weighs
on U.S. crude while tight supply supports Brent.
Prompt Brent inter-month spreads reached $5 a barrel on Tuesday, their highest level in three
weeks. In a backwardated market, front-month prices are higher than those in future months.
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NewBase Special Coverage
The Energy world –July -01 -2022
CLEAN ENERGY
U.S. is sidelined in critical minerals push
Jordan Wolman + John Barrasso
The United States is falling behind other countries in the race to mine minerals essential for climate-
friendly technology because of its longstanding refusal to ratify an international treaty.
The European Union and 167 countries are working out rules this month governing the mining of
deep-sea deposits, some of the richest sources of manganese, cobalt, copper and nickel that are
ingredients in solar panels, wind turbines and electric-vehicle batteries.
But the U.S. can’t take advantage of them because it’s never had enough political support to ratify
the U.N.’s Convention on the Law of the Sea, which governs the use of ocean resources.
Mining proponents say that could jeopardize the Biden administration's push for climate-friendly
technologies and domestic supply chains. If foreign entities are able to secure the minerals first, it
will further America’s reliance on other countries, as deep-sea mining companies have to be based
in a country that's party to the agreement.
"Is the U.S. missing an opportunity?" asked Gerard Barron, CEO and chair of The Metals Co., a
Canadian mining firm pushing for more seabed exploration. "Yes. I think they are."
One region between Hawaii and Mexico contains more copper, cobalt, nickel and manganese than
is known in all land deposits combined. Mining companies are eager to begin undersea operations
— The Metals Co. touts its exploration rights there as potentially containing enough minerals to
build more than 250 million EV batteries.
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The Biden administration cited a projected 400 to 600 percent increase in demand for critical
minerals earlier this year as justification for reducing reliance on foreign sources. But dating back to
the Reagan administration, the U.S. has refused to ratify the Law of the Sea treaty, which governs
the International Seabed Authority talks underway in Kingston, Jamaica.
The international seabed group is looking to hammer out a complex regulatory scheme, royalty
system, enforcement apparatus and set of protections for the marine environment that would allow
countries to permit seabed mining by July 2023.
Ratification of UNCLOS is a requirement for a country to be part of the ISA and to sponsor a mining
expedition. The treaty has been shelved in the U.S. Senate since Reagan declared his opposition to
seabed mining provisions when it was initially signed in 1982. In 2004, the Senate failed to take
action after the Foreign Relations Committee recommended ratification, and the same thing
happened in 2007. In 2012, Senate Republicans sunk a Democrat-led effort to ratify UNCLOS. The
Biden administration supports UNCLOS ratification.
There still isn’t sufficient Republican backing in the Senate to ratify UNCLOS, though Sen. Lisa
Murkowski (R-Alaska) has signaled support. Duncan Wood, a vice president at the Wilson Center,
said he doesn’t expect the stalemate to change any time soon.
"It’s a fundamental weakness that the U.S. will just have to sit by and watch other countries scoop
up critical resources," he said. "I don’t see any willingness on the part of Republicans to engage
with the UNCLOS. And I think that that conversation will take a long time to work its way through."
Republicans like Sen. John Barrasso (R-Wyo.) signed onto a letter the last time UNCLOS was
brought up in the Senate in 2012, stating concerns that U.S. “sovereignty could be subjugated”
under the treaty. Barrasso remains opposed to ratifying the treaty, a spokesperson said. Several
other Republican senators didn't respond to requests for comment.
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The U.S. has had its own rules on the books for deep-sea mining since 1980, well ahead of the rest
of the world. But without international recognition, companies are in a legal gray area when
operating in areas outside of national jurisdiction. Just two exploration licenses are in effect in
international waters through the U.S. regulations — both to defense giant Lockheed Martin Corp.
— and none for actual mining.
Lockheed Martin sought an extension of its two exploration licenses in international waters from the
National Oceanic and Atmospheric Administration earlier this year, citing the “lack of international
recognition” of its licenses because the U.S. has not ratified UNCLOS.
Other companies are also hesitant to rely on U.S. rules. Issuing mining permits for seabed minerals
outside of the international process could undermine America’s efforts to get adversarial nations
like China and Russia to conform to a rules-based system on other issues, companies point out.
“While the USA has put in place the framework for allowing exploitation outside of areas of national
jurisdiction, it would be very politically antagonizing to do so — and would likely immediately cause
other actors to step outside of the ISA processes also, which isn’t something that would be of benefit
to the U.S. or anyone,” said Renee Grogan, the chief sustainability officer of Impossible Mining, a
seabed mining technology company.
Administration officials are aware of the logjam. Greg O’Brien, a senior ocean policy adviser at the
State Department, said Lockheed Martin’s example shows why it’s difficult for the U.S. to pursue
seabed mining outside of the ISA — and how that leads to business uncertainty.
“Investment capital is blocked because the potential lendee does not have security of title and tenure
to those exploration sites," he said at a Wilson Center forum last month. "There are obvious
disadvantages of being an observer as opposed to a member of the Seabed Authority.”
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The ISA's talks aren't guaranteed to produce a consensus on seabed mining. Some island nations
and activists are pushing for a moratorium, citing environmental concerns, and France, Costa
Rica and Chile are also urging caution. Some major potential customers, including BMW, Volvo,
Volkswagen and Google, have also come out in support of a moratorium. There’s even debate at
the U.N. itself: A recent report from the U.N. Environment Programme said there’s “no foreseeable
way” deep-sea mining can be viewed as sustainable.
There are also other headwinds facing domestic seabed mining. Washington and Oregon have both
banned it in state waters, citing environmental threats to marine life, and California lawmakers are
considering a similar bill.
But because the U.S. failure to ratify UNCLOS appears to have frozen the industry domestically,
the government isn’t doing outreach to the private sector to spur development — creating a
feedback loop, said Saleem Ali, a professor of energy and environment at the University of
Delaware.
It all comes as the U.S. has struggled to get new terrestrial mines operating and secure a domestic
battery supply chain while demand for critical minerals is projected to surge as climate targets loom.
“We have never really been able to get consensus around UNCLOS and [agencies] are not really
going out and recruiting the industry to engage,” Ali said. “That has led to some part of the atrophying
of the domestic U.S. mining industry.”
Still, all hope isn’t lost for the U.S. to access seafloor minerals, even if it can’t mine the raw materials.
Failure to ratify UNCLOS doesn’t preclude the U.S. from partaking in mineral processing. That would
require foreign entities mining the seafloor and allied nations to sell those minerals to a U.S.
processing facility to turn them into the batteries and magnets that power electric vehicles and
storage for solar and wind energy.
“Certainly there is an argument to be made that firms from those [allied] countries are better places
perhaps than the Chinese and Russians,” Wood said.
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Battery processing is something the Biden administration says it’s prioritizing through executive
actions and provisions in the infrastructure law under the umbrella of clean energy jobs and a
manufacturing rebirth. And it’s an attempt to reduce dependence on China, which dominates raw
material refining and battery manufacturing, as the nation looks inward due to Russia’s invasion of
Ukraine.
On this front, there may be industry interest.
Barron of The Metals Co., which has rights to three ISA-approved exploration contracts, said the
company will apply for a mining contract in the second half of next year should regulations be
adopted.
Barron, who wrote in March to Sens. Joe Manchin (D-W.Va.) and Barrasso — the top two members
on the Senate Energy and Natural Resources Committee — said the U.S. could gain access to
seabed minerals “with the right set of circumstances.”
“We need a deep water port, we need a stable political jurisdiction and we need access to cheap
renewable power,” Barron said in an interview. “We’ve identified places in the U.S. that could fit that.
The opportunity is there for the USA to build a bigger facility to service American industry. And we’re
talking to customers ranging from those in the auto industry, those in the resources sector, and the
battery sector as well.”
But commercial seabed mining is still years away, Ali said. That means the U.S. will still be waiting
for quite some time to bear any fruits from the world’s potential foray into the sea’s minerals.
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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 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 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 20

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NewBase July 27-2022 Energy News issue - 1531 by Khaled Al Awadi.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 27 July 2022 No. 1531 Senior Editor Eng. Khaed Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Egypt: Rosatom kicks off work at Egypt’s first nuclear reactor Alahram + NewBase Russian nuclear giant Rosatom has kicked off work on Egypt’s first reactor with the pouring of the concrete base at the nuclear plant located in the city of El Dabaa, Matrouh Governorate, on the Mediterranean coast, roughly 300 km north-west of Cairo. On completion, the El Dabaa Nuclear Power Plant will boast four VVER-1200 pressurised water reactors with total capacity of 1200 MW. The project, which was conceived in the 1980s, was agreed by presidents Abdel Fattah el-Sisi and Vladimir Putin in December 2017, but the start of works was then subject to numerous delays. In February 2020, three Egyptian companies – Petrojet, Hassan Allam and Arab Contractors – were chosen to begin site preparation work. As per the contract, Rosatom will be responsible for the funding and construction of the plant in addition to supply of Russian uranium to fuel it. Also the company will assist in personnel training and support the Egyptians in the operation and servicing of the Nuclear Power Plant for the first 10 years of its operation. They will provide training to Egyptian engineers to help update their skills needed to run the reactors. The Russian group will also build a storage facility for nuclear fuel. Speaking at the ceremony, Rosatom Director General Alexey Likhachev said: "The construction launch at the El Dabaa NPP Unit 1 means that Egypt has joined the nuclear club. Rosatom will build cutting-edge power units of VVER-1200 design in the Arab Republic of Egypt." "We have gained experience constructing and operating NPPs with such reactors both in Russia and abroad. Construction of the nuclear power plant will allow Egypt to reach a new level of technology, industry and education development. The plant will be the largest project of the Russian-
  • 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 Egyptian cooperation since the Aswan High Dam. Having its own nuclear energy industry has been a dream for the Egyptian people for more than half-a-century, and it is a great honour for Rosatom to make this dream come true," he stated. He was joined by Dr Mohamed Shaker, Egyptian Minister of Electricity and Renewable Energy, and Dr Amged El-Wakeel, Board Chairman of the Nuclear Power Plants Authority of Egypt (NPPA), the owner and future operator of the El Dabaa Nuclear Power Plant, at the pouring in ceremony. Dr Shaker dubbed the commencement of full-scale construction of Unit 1 as a historic event for Egypt. "The political leadership and the Egyptian-Russian cooperation contributed to implementation of this ambitious project despite the challenges presented by the Covid-19 pandemic which did not have a negative impact on the project," he added.-
  • 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 UAE’s Adnoc Buys ZMI Holdings in Offshore Oil and Wind Push Bloomberg - Paul Wallace The United Arab Emirates’ main energy company has bought privately-owned ZMI Holdings as it looks to bolster its offshore oil, natural gas and wind businesses. Abu Dhabi National Oil Co. will acquire all of ZMI, which is based in the UAE and also known as Zakher Marine International, according to a statement. Financial details of the transaction were not disclosed. ZMI said it will probably make record earnings before interest, tax, depreciation and amortization this year of more than $300 million, helped by a surge in oil and gas prices since Russia’s invasion of Ukraine. Companies in the sector are typically valued at anything between five and 15 times Ebitda. ZMI will retain its brand and continue operating as a standalone entity, though it will come under Adnoc Logistics & Services, an arm that Adnoc is considering listing, Bloomberg reported in February. Goldman Sachs Group Inc. advised ZMI and Moelis & Co. worked with Adnoc. ZMI was established in 1984 and employs around 1,400 people in the UAE, Saudi Arabia, Qatar and China, where it won its first contract -- for an offshore wind project -- last year. The firm’s fleet of 62 support ships and barges is valued at roughly $1.6 billion, Finance Director Ahmed Omar said in an interview. Wind Power Oil and gas still make up most of ZMI’s business, though it sees its wind division growing rapidly in the coming years as governments and investors shift from fossil fuels to renewable energy. “The energy transition played a large role in Adnoc’s view of the business,” ZMI’s chief executive offer, Ali Hassan El Ali, said in the same interview. “A large part of the strategy is to continue expanding geographically.” The CEO is the son of ZMI’s founder and sole shareholder, Hassan Abdelkader El Ali. ZMI began talks with Adnoc in 2020. It considered an initial public offering but was partly put off by this year’s slump in global equity markets, Omar said. “It’s been a lengthy process,” he said. “Adnoc has ambitious plans for the business. We wanted to make sure we were aligned.”
  • 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 Libyan Oil Output Hits 1 Million Barrels a Day Bloomberg News + NewBase Libya boosted oil production to more than 1 million barrels a day, a milestone for the North African country where output had more than halved since mid-April. The OPEC member, home to Africa’s largest crude reserves, ramped up its production to a “little over” a million barrels a day, Oil Minister Mohamed Oun said. The increase follows an agreement with protesters and tribal heads reached more than a week ago to reopen fields and export terminals that had been largely shut since mid-April. Before the restart, production was down to 560,000 barrels a day. Libya has seen production plummet by about 50% in recent months due to a power struggle between rival governments, while chronic underinvestment in infrastructure also curtailed output. Higher Libyan production could offer some relief for undersupplied oil markets and high prices that have stoked inflation across the globe. Part of the deal to reopen oil was the government’s move on July 14 to overhaul the board of the state oil firm National Oil Corp. and the appointment of Farhat Bengdara as head of the group. He
  • 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 replaced Mustafa Sanalla, who had frequently been at odds with the oil ministry that was reinstated by the Tripoli-based government. Bengadara vowed to ramp up production quickly to its normal levels of 1.2-1.3 million barrels a day soon. Libya’s energy facilities have been at the heart of the North African nation’s conflicts over the past decade, with various groups shutting down oil output to press their political and economic demands. The nation has been mired in conflict since the fall of dictator Moammar Al Qaddafi in 2011. It’s now facing a standoff between two politicians — Abdul Hamid Dbeibah in the west and Fathi Bashagha in the east— who each claim to be the legitimate prime minister. The recent closures in mid-April were linked to politics with some protests at ports and fields demanding the transfer of power to Bashagha, the fair distribution of oil revenues and the dismissal of Sanalla. Libya’s Alfaragh field begins pumping gas Libya’s National Oil Company (NOC) said that the country’s largest gas field Alfaragh has begun the process of pumping gas to the Electrical Sarir station. The Alfaragh field is one of Waha Oil Company’s fields and is located 60 km southwest of the Jalu field. NOC explained that this process will contribute to reducing the hours of electricity cut-off as the Electrical Sarir station enters the electricity network. Over the next few months, crude oil production is expected to reach one million and two hundred thousand barrels per day.
  • 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 U.S is the world’s largest LNG exporter in the first half of 2022 Data source: U.S. Energy Information Administration, Liquefaction Capacity Table, and U.S. Department of Energy LNG reports The United States became the world’s largest liquefied natural gas (LNG) exporter during the first half of 2022, according to data from CEDIGAZ. Compared with the second half of 2021, U.S. LNG exports increased by 12% in the first half of 2022, averaging 11.2 billion cubic feet per day (Bcf/d). U.S. LNG exports continued to grow for three reasons—increased LNG export capacity, increased international natural gas and LNG prices, and increased global demand, particularly in Europe. According to our estimates, installed U.S. LNG export capacity has expanded by 1.9 Bcf/d nominal (2.1 Bcf/d peak) since November 2021. The capacity additions included a sixth train at the Sabine Pass LNG, 18 new mid-scale liquefaction trains at the Calcasieu Pass LNG, and increased LNG production capacity at Sabine Pass and Corpus Christi LNG facilities. As of July 2022, we estimate that U.S. LNG liquefaction capacity averaged 11.4 Bcf/d, with a shorter-term peak capacity of 13.9 Bcf/d. International natural gas and LNG prices hit record highs in the last quarter of 2021 and first half of 2022. Prices at the Title Transfer Facility (TTF) in the Netherlands have been trading at record highs since October 2021. TTF averaged $30.94 per million British thermal units (MMBtu) during the first half of 2022. LNG spot prices in Asia have also been high, averaging $29.50/MMBtu during the same period. Since the end of last year, countries in Europe have increasingly imported more LNG to compensate for lower pipeline imports from Russia and to fill historically low natural gas storage inventories. LNG imports in the EU and UK increased by 63% during the first half of 2022 to average 14.8 Bcf/d.
  • 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 Most U.S. LNG exports went to the EU and the UK during the first five months of this year, accounting for 71%, or 8.2 Bcf/d, of the total U.S. LNG exports. Similar to 2021, the United States sent the most LNG to the EU and UK during the first half of the year, providing 47% of the 14.8 Bcf/d of Europe's total LNG imports, followed by Qatar at 15%, and Russia at 14%, and four African countries combined at 17%. In June, the United States exported 11% less LNG than the 11.4 Bcf/d average exports during the first five months of 2022, mainly as a result of an unplanned outage at the Freeport LNG export facility. Freeport LNG is expected to resume partial liquefaction operations in early October 2022. Utilization of the peak capacity at the seven U.S. LNG export facilities averaged 87% during the first half of 2022, mainly before the Freeport LNG outage, which is similar to the utilization on average during 2021.
  • 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 Nigeria: TotalEnergies start of production from the Ikike field Source: TotalEnergies TotalEnergies, OML99 operator (40%) in partnership with the Nigerian National Petroleum Corporation (NNPC, 60%), has announced the start of production from the Ikike field, in Nigeria. Located 20 kms off the coast, at a depth of about 20 meters, the Ikike platform is tied back to the existing Amenam offshore facilities through a 14 km multiphase pipeline. It will deliver peak production of 50,000 barrels of oil equivalent per day by the end of 2022. The Ikike project leverages existing facilities to keep costs low, and is designed to minimize greenhouse gas emissions: estimated at less than 4kg CO2e/boe, they will contribute to reducing the average carbon intensity of TotalEnergies’ upstream portfolio. In addition, 95% of hours were worked locally: the jacket as well as the topside modules were entirely built and integrated by local contractors. 'TotalEnergies is pleased to start production at Ikike, which was launched a few months before the covid pandemic, and whose success owes a lot to the full mobilization of the teams. By tapping discoveries close to existing facilities, this project fits the Company’s strategy of focusing on low- cost and low-emission oil projects,' said Henri-Max Ndong-Nzue, Senior Vice President Africa, Exploration and Production at TotalEnergies.
  • 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 E.U looks to replace gas from Russia with Nigerian supplies Reuters + NewBase The European Union is seeking additional gas supplies from Nigeria as the bloc prepares for potential Russian supply cuts, Matthew Baldwin, deputy director general of the European Commission's energy department, said on Saturday. Baldwin was speaking in Nigeria where he held meetings with officials from Africa's largest oil producer this week. He was told that Nigeria was improving security in the Niger Delta and planned to re-open the Trans Niger pipeline after August, which would yield more gas exports to Europe. The EU imports 14% of its total LNG supplies from Nigeria and there is potential to more than double this, Baldwin told Reuters by phone. Oil and gas output in Nigeria is being throttled by theft and vandalism of pipelines, leaving gas producer Nigeria LNG Ltd's terminal at Bonny Island operating at 60% capacity. "If we can get up to beyond 80%, at that point, there might be additional LNG that could be available for spot cargoes to come to Europe," Baldwin said. "They (Nigerian officials) said to us, 'Come and talk to us again at the end of August because we think we can deliver real progress on this'." Nigeria NLG is owned by state-oil company NNPC Ltd, Shell, TotalEnergies and Eni. The European Commission said on Wednesday that EU member states should cut their gas use by 15% from August to March. The target would initially be voluntary, but would become mandatory if the Commission declared an emergency. read more Last year, Nigeria exported 23 billion cubic metres (bcm) of gas to the EU, but the figure has been declining over the years. In 2018 the bloc bought 36 bcm of LNG from Nigeria, Baldwin said.
  • 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 NewBase July 27 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil rises for a second day on supply tightness concerns Reuters + NewBase Oil prices rose on Tuesday for a second day on increasing concerns about tightening European supply after Russia, a key energy supplier to the region, cut gas supply through a major pipeline. Brent crude futures rose $1.14, or 1.1%, to $106.29 a barrel by 1029 GMT, extending a 1.9% gain the previous day. U.S. West Texas Intermediate (WTI) crude futures increased $1.31, or 1.4%, to $98.01 a barrel, having gained 2.1% on Monday. Russia tightened its gas squeeze on Europe on Monday as Gazprom (GAZP.MM) said supplies through the Nord Stream 1 pipeline to Germany would drop to just 20% of capacity. Oil price special coverage  Russia's Gazprom tightens squeeze on gas flow to Europe  Fed expected to hike rates 75 bps on Wednesday  Brent premium to U.S. crude hits widest in three years
  • 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 The cut in supplies will leave countries unable to meet their goals to refill natural gas storage ahead of the winter demand period. Germany, Europe's biggest economy, faces potentially rationing gas to industry to keep its citizens warm during the winter months. "The announcement revived fears that Russia, despite its cynical denial, will not shy away from using its energy as a weapon in order to gain concessions in its war against Ukraine and...could probably expect short-term success," Tamas Varga from oil brokerage PVM said. The European Union has repeatedly accused Russia of resorting to energy blackmail, while the Kremlin says shortfalls have been caused by maintenance issues and the effect of Western sanctions. On Tuesday, EU countries agreed an emergency regulation to curb their gas use this winter. Europe's crude, oil product and gas supplies have been disrupted by a combination of Western sanctions and payment disputes with Russia since its Feb. 24 invasion of Ukraine, which Moscow calls a "special military operation." Still, falling demand because of recent high crude and fuel prices and the expectation of an increase in interest rates in the United States have put pressure on prices. The U.S. central bank is widely expected to raise interest rates by 75 basis points at the conclusion of its policy meeting on Wednesday. That increase may reduce economic activity and thus impact fuel demand growth. Morgan Stanley said that 77% of global central banks have hiked rates in the last six months, with that percentage reaching a 40-year high, and "making this the most-synchronised cycle of rate hikes since the early 1980s". The bank lowered its demand growth forecasts for this year and next. It forecasts Brent crude prices at $110 a barrel in the third quarter and WTI at $107.50, each $20 lower than their previous forecast. The gap between European and international oil benchmark Brent and U.S. benchmark WTI has widened to levels not seen since June 2019 as easing gasoline demand in the United States weighs on U.S. crude while tight supply supports Brent. Prompt Brent inter-month spreads reached $5 a barrel on Tuesday, their highest level in three weeks. In a backwardated market, front-month prices are higher than those in future months.
  • 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 NewBase Special Coverage The Energy world –July -01 -2022 CLEAN ENERGY U.S. is sidelined in critical minerals push Jordan Wolman + John Barrasso The United States is falling behind other countries in the race to mine minerals essential for climate- friendly technology because of its longstanding refusal to ratify an international treaty. The European Union and 167 countries are working out rules this month governing the mining of deep-sea deposits, some of the richest sources of manganese, cobalt, copper and nickel that are ingredients in solar panels, wind turbines and electric-vehicle batteries. But the U.S. can’t take advantage of them because it’s never had enough political support to ratify the U.N.’s Convention on the Law of the Sea, which governs the use of ocean resources. Mining proponents say that could jeopardize the Biden administration's push for climate-friendly technologies and domestic supply chains. If foreign entities are able to secure the minerals first, it will further America’s reliance on other countries, as deep-sea mining companies have to be based in a country that's party to the agreement. "Is the U.S. missing an opportunity?" asked Gerard Barron, CEO and chair of The Metals Co., a Canadian mining firm pushing for more seabed exploration. "Yes. I think they are." One region between Hawaii and Mexico contains more copper, cobalt, nickel and manganese than is known in all land deposits combined. Mining companies are eager to begin undersea operations — The Metals Co. touts its exploration rights there as potentially containing enough minerals to build more than 250 million EV batteries.
  • 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 The Biden administration cited a projected 400 to 600 percent increase in demand for critical minerals earlier this year as justification for reducing reliance on foreign sources. But dating back to the Reagan administration, the U.S. has refused to ratify the Law of the Sea treaty, which governs the International Seabed Authority talks underway in Kingston, Jamaica. The international seabed group is looking to hammer out a complex regulatory scheme, royalty system, enforcement apparatus and set of protections for the marine environment that would allow countries to permit seabed mining by July 2023. Ratification of UNCLOS is a requirement for a country to be part of the ISA and to sponsor a mining expedition. The treaty has been shelved in the U.S. Senate since Reagan declared his opposition to seabed mining provisions when it was initially signed in 1982. In 2004, the Senate failed to take action after the Foreign Relations Committee recommended ratification, and the same thing happened in 2007. In 2012, Senate Republicans sunk a Democrat-led effort to ratify UNCLOS. The Biden administration supports UNCLOS ratification. There still isn’t sufficient Republican backing in the Senate to ratify UNCLOS, though Sen. Lisa Murkowski (R-Alaska) has signaled support. Duncan Wood, a vice president at the Wilson Center, said he doesn’t expect the stalemate to change any time soon. "It’s a fundamental weakness that the U.S. will just have to sit by and watch other countries scoop up critical resources," he said. "I don’t see any willingness on the part of Republicans to engage with the UNCLOS. And I think that that conversation will take a long time to work its way through." Republicans like Sen. John Barrasso (R-Wyo.) signed onto a letter the last time UNCLOS was brought up in the Senate in 2012, stating concerns that U.S. “sovereignty could be subjugated” under the treaty. Barrasso remains opposed to ratifying the treaty, a spokesperson said. Several other Republican senators didn't respond to requests for comment.
  • 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 The U.S. has had its own rules on the books for deep-sea mining since 1980, well ahead of the rest of the world. But without international recognition, companies are in a legal gray area when operating in areas outside of national jurisdiction. Just two exploration licenses are in effect in international waters through the U.S. regulations — both to defense giant Lockheed Martin Corp. — and none for actual mining. Lockheed Martin sought an extension of its two exploration licenses in international waters from the National Oceanic and Atmospheric Administration earlier this year, citing the “lack of international recognition” of its licenses because the U.S. has not ratified UNCLOS. Other companies are also hesitant to rely on U.S. rules. Issuing mining permits for seabed minerals outside of the international process could undermine America’s efforts to get adversarial nations like China and Russia to conform to a rules-based system on other issues, companies point out. “While the USA has put in place the framework for allowing exploitation outside of areas of national jurisdiction, it would be very politically antagonizing to do so — and would likely immediately cause other actors to step outside of the ISA processes also, which isn’t something that would be of benefit to the U.S. or anyone,” said Renee Grogan, the chief sustainability officer of Impossible Mining, a seabed mining technology company. Administration officials are aware of the logjam. Greg O’Brien, a senior ocean policy adviser at the State Department, said Lockheed Martin’s example shows why it’s difficult for the U.S. to pursue seabed mining outside of the ISA — and how that leads to business uncertainty. “Investment capital is blocked because the potential lendee does not have security of title and tenure to those exploration sites," he said at a Wilson Center forum last month. "There are obvious disadvantages of being an observer as opposed to a member of the Seabed Authority.”
  • 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 The ISA's talks aren't guaranteed to produce a consensus on seabed mining. Some island nations and activists are pushing for a moratorium, citing environmental concerns, and France, Costa Rica and Chile are also urging caution. Some major potential customers, including BMW, Volvo, Volkswagen and Google, have also come out in support of a moratorium. There’s even debate at the U.N. itself: A recent report from the U.N. Environment Programme said there’s “no foreseeable way” deep-sea mining can be viewed as sustainable. There are also other headwinds facing domestic seabed mining. Washington and Oregon have both banned it in state waters, citing environmental threats to marine life, and California lawmakers are considering a similar bill. But because the U.S. failure to ratify UNCLOS appears to have frozen the industry domestically, the government isn’t doing outreach to the private sector to spur development — creating a feedback loop, said Saleem Ali, a professor of energy and environment at the University of Delaware. It all comes as the U.S. has struggled to get new terrestrial mines operating and secure a domestic battery supply chain while demand for critical minerals is projected to surge as climate targets loom. “We have never really been able to get consensus around UNCLOS and [agencies] are not really going out and recruiting the industry to engage,” Ali said. “That has led to some part of the atrophying of the domestic U.S. mining industry.” Still, all hope isn’t lost for the U.S. to access seafloor minerals, even if it can’t mine the raw materials. Failure to ratify UNCLOS doesn’t preclude the U.S. from partaking in mineral processing. That would require foreign entities mining the seafloor and allied nations to sell those minerals to a U.S. processing facility to turn them into the batteries and magnets that power electric vehicles and storage for solar and wind energy. “Certainly there is an argument to be made that firms from those [allied] countries are better places perhaps than the Chinese and Russians,” Wood said.
  • 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 Battery processing is something the Biden administration says it’s prioritizing through executive actions and provisions in the infrastructure law under the umbrella of clean energy jobs and a manufacturing rebirth. And it’s an attempt to reduce dependence on China, which dominates raw material refining and battery manufacturing, as the nation looks inward due to Russia’s invasion of Ukraine. On this front, there may be industry interest. Barron of The Metals Co., which has rights to three ISA-approved exploration contracts, said the company will apply for a mining contract in the second half of next year should regulations be adopted. Barron, who wrote in March to Sens. Joe Manchin (D-W.Va.) and Barrasso — the top two members on the Senate Energy and Natural Resources Committee — said the U.S. could gain access to seabed minerals “with the right set of circumstances.” “We need a deep water port, we need a stable political jurisdiction and we need access to cheap renewable power,” Barron said in an interview. “We’ve identified places in the U.S. that could fit that. The opportunity is there for the USA to build a bigger facility to service American industry. And we’re talking to customers ranging from those in the auto industry, those in the resources sector, and the battery sector as well.” But commercial seabed mining is still years away, Ali said. That means the U.S. will still be waiting for quite some time to bear any fruits from the world’s potential foray into the sea’s minerals.
  • 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 NewBase Energy News 27 July 2022 - Issue No. 1531 call on +971504822502, UAE The Editor:” Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscriptions, please email us. About: Khaled Malallah Al Awadi, Energy Consultant MS & BS Mechanical Engineering (HON), USA Emarat member since 1990 ASME member since 1995 Hawk Energy member 2010 www.linkedin.com/in/khaled-al-awadi-38b995b Mobile: +971504822502 khdmohd@hawkenergy.net or khdmohd@hotmail.com Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S. Universities. Currently working as self leading external Energy consultant for the GCC area via many leading Energy Services companies. Khaled is the Founder of the NewBase Energy news articles issues, Khaled is an international consultant, advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks, waste management, waste-to-energy, renewable energy, environment protection and sustainable development. His geographical areas of focus include Middle East, Africa and Asia. Khaled has successfully accomplished a wide range of projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of gas/oil supply routes. Has drafted & finalized many contracts/agreements in products sale, transportation, operation & maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities. Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has participated in numerous conferences and workshops as chairman, session chair, keynote speaker and panelist. Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over 1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste management, plant Automation IA and environmental sustainability in different parts of the world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see contact details above.
  • 18. Copyright © 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
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  • 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