NewBase July 28-2022 Energy News issue - 1532 by Khaled Al Awadi.pdf

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NewBase Energy News 28 July 2022 No. 1532 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oman: TotalEnergies,Veolia to build solar system for desal plant
TradeArabia News Service NewBAse
France-based TotalEnergies and utility major Veolia have signed an agreement to start the
construction of the largest solar photovoltaic (PV) systems providing power for a desalination plant
in Oman, in the city of Sur.
The power plant will be located on the site of the Sharqiyah Desalination plant, which is a reference
in Oman and in the gulf region, supplying drinking water to more than 600,000 inhabitants of the
Sharqiyah region.
This 17-megawatt peak (MWp) solar project will be the first of its kind to be installed in the region.
It produces annually over 30,000 megawatt-hours (MWh) of green electricity, or more than a third
of the desalination plant's daily consumption, enabling it to avoid close to 300,000 tons of CO2
emissions.
This is in line with Oman’s National Energy Strategy to convert 30% of its electricity use to renewable
sources by 2030. The plant will be equipped with more than 32,000 high-efficiency solar panels and
will use an innovative East-West tracker system to increase energy production. It will cover an area
of 130,000 square meters, equivalent to approximately 18 football pitches.
“At Veolia, we are committed to bring the ecological transformation in the water sector for our clients
and for our own assets. We’re happy to launch the construction of the solar plant on our desalination
unit in the city of Sur, to be able to power it with the green electricity while drastically reducing its
carbon footprint,” Estelle Brachlianoff, Chief Executive Officer of Veolia said.

“As one of the key players of Oman’s water sector, Veolia is fully committed to supporting Oman’s
Vision 2040 sustainability objectives for the Sultanate’s communities and industries and our solar
project with TotalEnergies goes in this direction.”
Vincent Stoquart, Senior
Vice President
Renewables at
TotalEnergies, said: “This
project is in line with our
strategy to develop
renewable energy in the
Middle East and provide
our customers with clean,
reliable and affordable
energy solutions. We are
committed to helping
Veolia decarbonize its
operations, building on our
strong track record of
deploying renewable
energy solutions at highly
technical and complex
sites. As a global multi-
energy company, our goal
is to contribute to the development of renewables in Oman and its region.”
Yaqoob Al Kiyumi, CEO of Oman Power and Water Procurement company OPWP said: “This
initiative is adding another perspective to the goal of having access to clean water in Oman.
Employing solar energy as another energy source for desalination operation contributes to the
sustainability objectives in Oman.”
Veolia is deploying solutions to optimize the energy efficiency of its desalination activities, including
its Sharqiyah Desalination plant. The Group, in partnership with TotalEnergies, has decided to take
a further step towards green transformation by using renewable energy to power the plant instead
of fossil fuels.
TotalEnergies aims to assist producing countries in building a more sustainable future through a
better use of the country’s natural resources, including solar energy, which will directly improve the
accessibility of cleaner, more reliable and more affordable electricity.
The company is leveraging its leadership position in the region to develop large-scale solar projects
in Qatar, Iraq and Libya. These projects illustrate the sustainable development model of
TotalEnergies, a global multi-energy company that supports producing countries in their energy
transition.
TotalEnergies is a global multi-energy company that produces and markets energies: oil and
biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000
employees are committed to energy that is ever more affordable, cleaner, more reliable and
accessible to as many people as possible. Active in more than 130 countries, TotalEnergies puts
sustainable development in all its dimensions at the heart of its projects and operations to contribute
to the well-being of people.

UAE launches power-to-liquids roadmap
Trade Arabia + NewBase
The UAE has launched its Power-to-Liquids Roadmap, which was drafted in cooperation between
the Ministry of Energy and Infrastructure and the World Economic Forum. The PtL roadmap shows
the financial, economic and environmental benefits of PtL in decarbonising the UAE aviation
industry, said a Wam news agency report.
The paper, 'Power-to-Liquids Roadmap: Fuelling the Aviation Energy Transition in the United Arab
Emirates', was launched at an event attended by Eng Sharif Al Olama, Under-Secretary of the
Ministry of Energy and Infrastructure for the Energy and Petroleum Sector.
He said that achieving the Principles of the 50 and the efforts to enhance the country's overall
stature, including in the energy sector, requires greater cooperation between government authorities
and the private sector.
Eng Yousef Al Ali, Assistant Under-Secretary for the Electricity, Water and Future Energy Sector,
and several officials from national airlines and major companies operating in the sector also
attended the launch.
Al Olama said the UAE has exerted significant efforts to launch distinguished projects and initiatives
in the energy sector, most notably in clean energy, to support the UAE Net Zero by 2050 Strategic
Initiative and in line with the Paris Climate Agreement.
The UAE is closely cooperating with regional and international partners, with the aim of achieving
sustainability in the energy sector, he added.
This white paper, published by the Forum's Clean Skies Tomorrow initiative, in collaboration with
the United Arab Emirates Ministry of Energy and Infrastructure and ICF International, sees Power-
to-liquids sustainable aviation fuel (PtL SAF) production is the most important technology for the
UAE to decarbonise aviation.
It says PtL offers a unique opportunity for the Emirates to leverage domestic resources,
infrastructure and expertise to grow and decarbonise the economy.
The UAE is in an excellent strategic position to build a globally leading PtL industry. The analysis
demonstrates that it will be financially beneficial, environmentally necessary and practical to deploy
PtL capacity to decarbonize the United Arab Emirates aviation industry, the roadmap says.
The aviation sector is one of the UAE's success stories and has a central place within the national
and the regional economies, helping diversification, tourism and supporting job creation, it added.

U.A.E Adnoc Distribution buy 50% stake in TotalEnergies Egypt
The National + NewBase
Adnoc Distribution, the UAE’s largest fuel and retail distributor, will acquire a 50 per cent stake in
TotalEnergies Marketing Egypt for approximately $186 million as part of its global expansion plans.
Under the agreement signed with TotalEnergies Marketing Afrique, Adnoc Distribution also has the
provision for additional earn-out of up to $17.3m if certain conditions are satisfied.
The overall deal marks the Abu Dhabi company's largest investment to date, it said in a
statement on Thursday to the Abu Dhabi Securities Exchange, where its shares are traded.
Established in 1998, TotalEnergies Egypt is among the top four fuel retail operators in the country.
The deal will "develop future growth opportunities of TotalEnergies Egypt through unlocking value
potential and exploring beneficial synergies in fuel distribution, lubricants and aviation businesses
driven by economic growth and post Covid recovery", Adnoc Distribution said.
The acquisition is expected to be completed in the first quarter of 2023, subject to regulatory
approvals.
“This acquisition marks a significant milestone in Adnoc Distribution’s international growth story,"
said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, managing director and
group chief executive of Adnoc and chairman of Adnoc Distribution.
"Egypt is the Arab world’s most populous country and we look forward to entering such a dynamic
market. The acquisition is also well-aligned with the Industrial Partnership for Sustainable Economic
Growth between the UAE, Bahrain, Egypt and Jordan and will leverage the strengths of both the
UAE and Egypt to boost growth in the related markets."
Adnoc Distribution, which had 464 retail fuel stations and 350 convenience stores in the UAE as of
March 31, has been expanding its portfolio. It opened its first stations outside the UAE in Saudi
Arabia, in 2018, with 55 stations operational across the kingdom as at the end of March.
Adnoc Distribution, which reported a 6 per cent rise in first-quarter net profit, said in March that it
was on track to deliver 60-80 stations across the UAE and international markets by the end of this
year. The company’s Adnoc Voyager lubricants are also exported to 20 countries.

Adnoc Distribution's partnership with TotalEnergies includes a diversified portfolio comprising 240
fuel retail stations, more than 100 convenience stores, 250 lube changing stations and car washes,
as well as wholesale fuel, aviation fuel and lubricant operations, the company said.
The acquisition will also involve the refurbishment of several service stations to Adnoc branding,
with certain future sites being constructed under the Adnoc brand. “Egypt’s fuel retail market is
highly attractive with exciting potential for future growth," said Bader Al Lamki, chief executive of
Adnoc Distribution.
"Due to its young and
expanding population,
alongside a series of
progressive economic
reforms, Egypt has
recorded positive GDP
[gross domestic
product] growth with a
strong outlook." The
acquisition will be
earnings accretive to
Adnoc Distribution from
the first year post
closing, the company
said.
The move will support
Adnoc Distribution's
strategy to establish
itself as a "regional
leader in the fuel
distribution sector" and
unlock new earnings potential in its next phase of growth, it added. Egypt is the Arab world’s most
populous country and we look forward to entering such a dynamic market
Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, managing director and group
chief executive of Adnoc and chairman of Adnoc Distribution “This acquisition by Adnoc Distribution
reaffirms our commitment to expanding our business in attractive international growth markets," Mr
Al Lamki said.
"It is a testament to our ability to leverage our experience in both fuel and non-fuel retail, to deploy
cash to accelerate our international expansion, and to realise natural business synergies and
partnership opportunities that allow us to quickly and efficiently enter new and dynamic markets."
Last month, Adnoc Distribution also struck three new deals with its parent, Adnoc, as part of its
growth strategy that focuses on product diversification. The company entered into an agreement
with Adnoc for the sale of base oil, which it will purchase until the end of 2026.
It also struck a white spirit supply agreement with Adnoc to help the company increase its market
share in the long term, and a new carbon black supply agreement, which will run until the end of
this year.
White spirit is a petroleum-derived liquid used as a solvent in painting, while carbon black is used
in tyres and rubbers.

Germany to impose gas levy on consumers to support importers
Reuters + NewBase
Germany is set to impose a levy on all gas consumers from Oct. 1 aimed at helping suppliers
grappling with soaring gas import prices, a draft law showed on Thursday. The levy aims to share
the additional costs for replacing gas from Russia among all gas users and prevent insolvencies
among gas traders.
Households and industrial consumers with long-term
contracts will be hit by the charge, which will be valid until
the end of September, 2024, the document showed. Gas
importers will have to bear rising costs by themselves until
the levy kicks in.
German Economy Minister Robert Habeck said the levy
would amount to between 1.5 euro cents and 5 euro cents
per kilowatt hour (Kwh), with the proceeds available to all
companies that need to replace Russian gas.
He said the measure was a difficult but important one to stabilise the energy market. "One doesn't
know exactly how much (gas) will cost in November, but the bitter news is that it's definitely a few
hundred euros per household," he said.
More details about the levy will be announced in August, the document showed. Local utility
association VKU welcomed the measure, adding the levy should be raised or extended if high prices
persist.
A prerequisite to the government triggering the mechanism is significant disruption to gas flows into
Germany. Russia's Gazprom cut flows through the Nord Stream 1 gas pipeline to just 20% of
capacity this week.
Germany moved to the second of three stages of its supply emergency plan last month, allowing
the government to trigger a price adjustment clause so suppliers can pass price increases on to
their customers, although it has yet to do so.
A general levy that would increase gas prices for everyone, regardless of their supplier, is
considered more fair, however. The government has meanwhile appealed to citizens and industry
to save energy now so it can fill gas storage facilities before winter - aiming for 95% of capacity by
November from 67.2% currently.
Firms are weighing their options, while Berlin has already said it will switch off lights at 200 public
buildings and landmarks at night.
With Germany going through what Habeck called its "biggest energy crisis", Gazprom's failure to
deliver reserved gas was pushing companies to procure the fuel at significantly higher market prices,
he said. "This (price) difference is the levy. It is then passed on to the end consumer because
otherwise the companies would permanently lose millions per week," he added.
Marcel Fratzscher, president of the DIW economic institute, said it was "right and necessary" to
pass on costs to all consumers and Germans should prepare for at least a tripling of gas heating
bills, according to the Rheinische Post, but there should be relief measures to support low-income
households.
Habeck said people falling into poverty because of higher energy prices must be protected and relief
measures would be targeted.

Germany: bp opens its first electric truck charging facilities
Source: bp
bp has opened its first ultra-fast-charging facilities aimed at medium and heavy-duty electric
trucks to support the decarbonisation of the sector – where, according to the IEA(i), tailpipe CO2
emissions have increased on average 2.2% annually since 2000.
Operated by bp’s Aral brand, the retail site at Schwegenheim in Rheinland-Pfalz, Germany now has
two state-of-the-art 300kw ultra-fast chargers intended for electric trucks, powered by 100%
renewable energy(ii).
Situated on the major B9 road, the Schwegenheim site provides truck drivers with a convenient,
safe, well-lit station where an electric truck capable of charging at 300kw could increase its
remaining range by around 150-200km during a driver’s mandatory 45-minute break(iii). And the
driver has access to additional services such as food and drink for their journeys, as well as toilets.
Emma Delaney, executive vice president, customers & products, bp said: 'With the transition to
electric vehicles well underway in Europe, we’re now seeing the move towards electric trucks. Truck
manufacturers and truck fleet operators are demanding low carbon alternative fuels and
electrification is an attractive option. Opening our first truck charging facilities at Schwegenheim is
an important milestone for bp and the industry.
'Schwegenheim is a perfect example of what the industry needs – ultra-fast charging with safe
charging bays for trucks, close to strategic road networks and a place where drivers can take a
break and refresh with food and drinks'.
 First charging facilities for electric trucks for bp globally.
 Now live and open at Aral’s retail site at Schwegenheim in Rheinland-Pfalz,
Germany.
 Enables truck drivers to charge close to strategic road networks and
manufacturers to test the charging capabilities of their electric trucks under real-
world conditions.
 Daimler Truck and bp worked closely together to understand the requirements
for a truck charging hub.

In 2021 around 1,000 battery electric trucks were sold in Germany(iv). In Europe that number is
expected to reach over 150,000 units by 2030 with the highest penetration in Germany, at 43%(v).
Daimler Truck, who are based in Germany and one of the world’s largest commercial vehicle
manufacturers, launched their battery-electric Mercedes-Benz eActros for heavy urban distribution
in 2021.
The company has worked closely with bp to provide insights into the required layout, charging
speeds, and convenience offers to provide truck drivers with the accessibility they need and a
comfortable charging experience.
'I am pleased that bp and Aral pulse continue to support the electrification of German truck fleets.
Zero tailpipe emission trucks will be crucial if we are to reach our decarbonisation goals and to
expand the charging infrastructure across Germany.
This project is another milestone for the electrification of mobility in Germany and Europe', says
Kurt-Christoph von Knobelsdorff, CEO & Spokesman NOW GmbH, National Organization Hydrogen
and Fuel Cell Technology.
bp is helping fleets accelerate their transition to low carbon - one way is through electrification. It
believes there are key transport corridors which will benefit from a network of EV charging. The
charging facilities at Schwegenheim add to Aral pulse’s growing network of ultra-fast chargers
across the country.
Aral pulse is Germany´s leading operator of public high power charging sites and has over 850 ultra-
fast charge points for cars and lighter commercial vehicles located at its well-lit and manned Aral
retail stations, offering high reliability as well as additional convenience services.

Angola: Eni comples to start up New Gas Consortium in Angola
Source: Eni
The New Gas Consortium has reached Final Investment Decision for the Quiluma and Maboqueiro
gas project, the first non-associated gas project in Angola
Eni and its Partners in the New Gas Consortium (NGC), Chevron’s affiliate in Angola Cabinda Gulf
Oil Company Limited (CABGOC), Sonangol P&P, bp and TotalEnergies, together with Angola’s
National Agency for Oil, Gas and Biofuels ANPG, have announced that the Final Investment
Decision (FID) for the development of the Quiluma and Maboqueiro (Q&M) fields has now been
taken by the Consortium. This is Angola’s first non-associated gas development project.
The project includes two offshore wellhead platforms, an onshore gas processing plant and a
connection to Angola LNG plant for the marketing of condensates and gas via LNG cargoes. Project
execution activities will start in 2022 with a first gas planned in 2026 and an expected production of
330 mmscf/day at plateau (approximately 4 billion cubic meters/year).
The sanctioning of the Q&M Project is an important milestone towards unlocking new undeveloped
sources of energy, sustaining a reliable supply of gas to the Angola LNG plant, and fostering the
continued economic and social development of Angola.
The support provided by Angola’s Ministry of Mineral Resources, Petroleum and Gas, as well as all
the Ministries and the National Concessionaire (ANPG), has been essential in unlocking this new
phase of the Angolan offshore gas development. In this regard, the establishment of a legal and
fiscal regime applicable to the upstream activities and sale of natural gas in Angola was a key
enabler for the project.
The New Gas Consortium partners encompass Eni (25.6%, operator), Chevron affiliate
CABGOC (31%), Sonangol P&P (19.8%), bp (11.8%) and TotalEnergies (11.8%).
Eni holds a 13.6% interest in Angola LNG, together with Chevron affiliate CABGOC (36.4%),
Sonangol (22.8%), bp (13.6%) and TotalEnergies (13.6%). The plant is located in Soyo, Province
of Zaire and has a treatment capacity of approximately 353 bcf a year of feed gas and a liquefaction
capacity of 5.2 mmtonnes a year of LNG.
Eni has been present in Angola since 1980. Currently, the company operates Blocks 15/06, Cabinda
Norte, Cabinda Centro, 1/14, 28 and has in addition a stake in non-operated Blocks 0 (Cabinda),
3/05, 3/05A, 14, 14 K/A-IMI, 15.
In March 2022, Eni signed an agreement with bp to form a joint venture company called Azule
Energy, combining both companies' businesses in Angola. The Operatorship of the Q&M Project
will be guaranteed by Azule Energy after the Completion Date of the transaction.

U.S: Battery systems on power grid rising as respond to price
Data source: U.S. Energy Information Administration, Annual Electric Generator Report, early release
According to the early release of our Annual Electric Generator Report, the capacity of utility-scale
battery storage more than tripled in the United States during 2021, from 1.4 gigawatts (GW) at the
end of 2020 to 4.6 GW. The survey asked respondents how they use batteries, and respondents
could cite more than one application for a system.
Although battery systems have several common applications, more systems are increasingly used
to store electricity when prices are low and discharge electricity when prices are high, a strategy
known as price arbitrage.
During 2021, 59% of the 4.6 GW of utility-scale U.S. battery capacity was used for price arbitrage,
up from 17% in 2019. In certain markets, price arbitrage is more common than in others. For
example, more than 80% of the battery capacity added in 2021 in the California Independent System
Operator service territory was used for price arbitrage.
Batteries also help maintain grid reliability. For example, batteries used to regulate frequency—still
the most common battery application in the United States—help maintain the grid frequency of 60
cycles per second. Deviations from that frequency could lead to power surges or other types of grid
instability. Batteries are well suited for frequency regulation because they do not require any startup
time, and they can quickly absorb power surges.
Similarly, batteries that help ramp generation and provide spinning reserve can balance electricity
supply and demand for periods ranging from a few seconds to a few hours, depending on the
requirements of changing electricity demand and generator outages.
Batteries can also counter excess wind and solar generation in some markets. To do this, batteries
absorb excess solar or wind generation when demand is low and then discharge it later when
demand is high. Battery storage is often paired with renewable sources in the United States; more
than 93% of the battery capacity that came online in 2021 was co-located with solar power plants.

NewBase July 28 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil steady with risk appetite improves, U.S. inventories fall
Reuters + NewBAse
Oil rose more than $2 a barrel on Thursday, extending gains from the previous session, buoyed by
improved risk appetite among investors as lower crude inventories and a rebound in gasoline
demand in the United States supported prices.
Brent crude futures for September rose $2.09, or 1.96%, to $108.71 a barrel by 1201 GMT, after
gaining $2.22 on Wednesday. Later at 15:48 it was at 106.96, see image below.
U.S. West Texas Intermediate crude (WTI) was at $99.62 a barrel, up $2.36, or 2.43%, after rising
$2.28 in the previous session. Later at 15.49 GMT it drops to 97.49, see attached below.
"Yesterday's stock market rally after the Fed's rate hike and the consequent easing of the dollar
helped oil prices re-gain their footing," Tamas Varga, analyst at PVM Oil Associates, said.
Oil price special
coverage

"The weekly EIA statistics also proved supportive. There were draws in major categories and
products supplied."
The U.S. Federal Reserve raised its benchmark overnight interest rate by three-quarters of a
percentage point, in line with expectations, to cool inflation, while the dollar fell on hopes for a slower
hiking path.
A weaker dollar makes oil, priced in the currency, cheaper for buyers in other countries to purchase.
U.S. crude oil stockpiles fell by 4.5 million barrels last week, against expectations for a 1 million-
barrel drop, while U.S. gasoline demand rebounded by 8.5% week on week, data from the Energy
Information Administration (EIA) showed.
"The U.S. consolidated its position as the world’s largest petroleum exporter," Citi analysts said in
a note, as combined gross exports of crude oil and refined products stood at a record 10.9 million
barrels a day.
U.S. crude exports reached a record 4.5 million bpd as WTI traded at a steep discount to Brent.
However, in a bullish signal, U.S. crude oil production growth could stall due to a lack of fracking
equipment and crews, as well as capital constraints, executives said this week.
Prices found further support from the energy supply battle between the West and Russia. The Group
of Seven richest economies aims to have a price-capping mechanism on Russian oil exports in
place by Dec. 5, a senior G7 official said on Wednesday.
Meanwhile, Russia has cut gas supplies via Nord Stream 1, its main gas link to Europe, to just 20%
of capacity. That could lead to switching to crude from gas and prop up oil prices in the short term,
analysts said.
"We increase our total estimates for additional oil demand from gas to oil switching by 700,000 bpd
from October 2022 through March 2023," JP Morgan analysts said in a note.

However, this could be offset by normalising Libyan supply, leading to a largely balanced global oil
market in the fourth quarter, followed by a 1 million bpd stockbuild in the first quarter of 2023, they
added.
"We keep our price forecast unchanged and see global oil price in the low-$100s in 2H22 and high
$90s in 2023," the bank said.
OPEC+ to weigh holding oil output steady or small hike, sources say
OPEC and its allies will consider keeping oil output unchanged for September when they meet next
week, despite calls from the United States for more supply, although a modest output increase is
also likely to be discussed, eight sources said.
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively
known as OPEC+, will by August have fully unwound record output cuts in place since the COVID-
19 pandemic took hold in 2020.
Oil has soared in 2022 to its highest since 2008, climbing above $139 a barrel in March, after the
United States and Europe imposed sanctions on Russia over its invasion of Ukraine. Prices have
since eased to around $108, as soaring inflation and higher interest rates raise fears of a recession
that would erode demand.
Of eight OPEC+ sources spoken to by Reuters, two said a modest increase for September will be
discussed at the Aug. 3 meeting and five said output would likely be held steady.
"There are various talks ranging from a small increase to a freeze on current levels," one of the
OPEC+ sources said.
A lack of an output increase would disappoint the United States, whose President Joe Biden visited
Saudi Arabia this month, hoping to strike a deal on oil production. A senior U.S. administration
official said on Thursday extra supply would help to stabilise the market.
Given the easing in oil prices since this year's March peak, some in OPEC+ do not believe there is
a strong argument for a further hike in supply.
"I expect production to not increase for September," another OPEC+ source said, adding the
meeting was unlikely to discuss output beyond that.
Any further supply increase by OPEC+ would be likely to fall short of pledged levels given that many
producers have struggled to meet output targets following a lack of investment in oilfields.
Saudi Arabia and the United Arab Emirates are believed to hold the world's only sizeable amounts
of unused production capacity. Some industry sources have questioned whether even Saudi output
can easily reach maximum stated levels.

NewBase Special Coverage
The Energy world –July -01 -2022
CLEAN ENERGY
UK Grid Warns Energy Costs to Skyrocket If Russia Curbs Gas
Bloomberg - Rachel Morison + NewBase
Britain faces “knock-on impacts” for the country’s energy supplies such as rocketing prices if Russia
cuts off natural gas flows to Europe, according to National Grid Plc.
Only about 6% of the UK’s gas imports come from Russia, a statistic the government has so far
used to play down the risks of reduced flows to the UK energy system. The grid operator’s warning
is the first time it has openly addressed the threat of Moscow’s decision to throttle fuel supplies.
“It is clear that the cessation of flows of gas into Europe could have knock-on impacts, including
very high prices,” National Grid said Thursday in its early outlook for winter.
Britain’s gas market is linked to Europe through its network of pipelines to the continent and Norway,
and summer prices are already four times higher than usual. But with limited gas storage capacity,
the UK is reliant on Europe for exports in winter and exposed to further disruptions in Russian flows,
which Kremlin insiders say are likely to continue in retaliation for European sanctions.
Higher prices would put even more strain on consumer bills that are already projected to reach
record levels in October before rising again in January. There’s mounting pressure on the
government to do more beyond the £400 discount on household tariffs already pledged.
“The UK’s secure and diverse energy supplies will ensure households, businesses and industry can
be confident they can get the electricity and gas they need,” a spokesperson for the government’s
Business, Energy and Industrial Strategy office said. “Unlike Europe, we are not dependent on
Russian energy imports.”

Keeping the lights on is going to be more difficult too. System margins, or the buffer National Grid
needs to keep in reserve, are expected to shrink this year. The network operator’s base case margin
is 6.7%, or 4 gigawatts, down from 7.3% last year, according to the report published Thursday.
The UK will need to rely on imports of electricity on its power cables to France, Norway, Belgium
and the Netherlands when supplies run short.
“On the tightest days the price in Great Britain will be higher than in Europe,” National Grid said.
This will mean power flowing into the UK “in response to these market signals, which include scarcity
prices, as they have done in previous winters,” it said.
Right now, prices in France are the highest in Europe, meaning it’s importing from its neighbors
including the UK. Last week, France’s grid operator made an emergency call to secure power
supplies from Britain, highlighting the potential battle ahead over the direction of flows on these
interconnecting cables.
There is also looming threat from the unavailability of Electricite de France SA’s nuclear fleet,
National Grid said. Usually a power exporter, less than half of France’s reactors are running now
with maintenance and repairs taking longer than expected.
“We are continuing to monitor the outlook in France and will undertake further assessments,” the
network operator said in the report.
The UK has already contracted two coal stations to be kept in reserve this winter, and National Grid
is in talks with a third operator to extend the measure. Those units won’t run in the market and aren’t
counted in the margin assumptions.

One scenario National Grid will model before winter includes how Britain would manage with no gas
imports from Europe. But it remains uncertain how European Union member states will act if there
is a gas emergency and the fuel has to be locked within specific states.
Britain’s power system has been riding to the rescue of mainland Europe in recent months,
becoming a net exporter of electricity for the first time since 2017 to make up for record shutdowns
of French nuclear reactors. Data from National Grid show that Britain has been a net exporter of
electricity via subsea cables that connect to countries including France, Belgium and the
Netherlands every month since the start of April.
This is a significant change; Britain usually relies on imports from the continent to help balance its
own grid, particularly during periods when renewables such as wind and solar aren’t generating.
The last time the country was a net electricity exporter on a monthly basis was in November 2017.
The trend is largely driven by France having its lowest nuclear output for more than 10 years as half
of the country’s 56 reactors, which form the backbone of the country’s electricity system, were offline
in May for refuelling or maintenance, as well as unexpected problems such as corrosion at older
plants.
British gas-fired power stations have meanwhile taken advantage of increased cargoes of liquefied
natural gas arriving at the country’s ports this year to generate more electricity for export.
The difficulties in France have pushed power prices in the country to record highs, “which has led
to the regular occurrence of [Great Britain] to France exports”, said Joe Camish, lead analyst at the
consultancy Cornwall Insight. France’s nuclear difficulties have exacerbated the energy crisis
ravaging the continent as the EU prepares for further cuts in imports of Russian gas.

NewBase Energy News 29 July 2022 - Issue No. 1532 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 28-2022 Energy News issue - 1532 by Khaled Al Awadi.pdf

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NewBase July 28-2022 Energy News issue - 1532 by Khaled Al Awadi.pdf