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NewBase Energy News 09 May 2022 No. 1511 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Mohammed bin Rashid Al Maktoum Solar Park key pillar to
reach 100% clean energy in Dubai by 2050
WAM/Khoder Nashar
Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world, is one
of the most extensive clean and renewable energy projects that Dubai Electricity and Water
Authority (DEWA) is implementing to achieve net-zero emissions by 2050.
The solar park has a planned capacity of 5,000 megawatts (MW) by 2030 with investments up to
AED50 billion. When completed, it will reduce over 6.5 million tonnes of carbon emissions annually.
In October 2022, the UAE launched its strategic initiative for net-zero emissions by 2050, to become
the first country in the Middle East and North Africa (MENA) Region to undertake such a strategic
initiative. Dubai also launched the Net Zero Carbon Emissions Strategy 2050 to provide 100 percent
of Dubai's total power capacity from clean energy sources by 2050.
Saeed Mohammed Al Tayer, MD and CEO of DEWA, said that the regulatory frameworks in Dubai,
which enable the private sector to take part in energy production projects in Dubai, have encouraged
international investors and developers to participate in the Mohammed bin Rashid Al Maktoum Solar
Park's projects, which DEWA is implementing using the Independent Power Producer (IPP) model.
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He noted that DEWA has attracted investments of around AED40 billion through this model in public-
private partnerships. DEWA received the lowest solar energy prices (Levelised Cost of Energy)
globally five consecutive times, making Dubai a global benchmark for solar power prices.
"At DEWA, we work in line with the vision and directives of His Highness Sheikh Mohammed bin
Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to promote sustainability
and innovation and transform into a sustainable green economy.
"The Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world,
is our biggest project to achieve this vision. It has a planned capacity of 5,000 MW by 2030. The
current capacity at the solar park is 1,527MW using photovoltaic solar panels.
DEWA is implementing more projects with a total capacity of 1,333 MW using solar photovoltaic
and Concentrated Solar Power (CSP), in addition to future phases to reach 5,000 MW by 2030. The
clean energy capacity share is currently around 11.4 percent of Dubai's energy mix, and is expected
to reach around 14 percent by the end of 2022," added Al Tayer.
The solar park hosts two pioneering projects: The Innovation Centre and the R&D Centre. The
Innovation Centre supports DEWA's efforts to enhance innovation and creativity in clean and
renewable energy and raise awareness on sustainability, in addition to strengthening national
capabilities and enhancing business competitiveness. It also provides visitors with a unique
experience to explore the latest innovations in clean energy technologies.
The R&D Centre supports DEWA's efforts to anticipate the future, develop proactive, long-term
plans to keep pace with the Fourth Industrial Revolution by developing disruptive technologies. It
has the largest and most comprehensive solar testing and certification facility in the UAE, and it
operates the longest continuous testing of photovoltaic panels in the UAE in desert climate
conditions.
This is achieved by increasing the share of clean and
renewable energy in line with the Dubai Clean Energy
Strategy 2050 and the Dubai Net Zero Carbon Emissions
Strategy to provide 100 percent of Dubai's total power
capacity from clean energy sources by 2050.
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or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
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Algeria: Wintershall interest in the Reggane Nord gas project
Source: Wintershall Dea
Summary:
 Agreement to acquire additional 11.25% participating interest from Edison
 Decision is part of plan to grow in Algeria
 Country with major potential for an enhanced energy partnership with Europe
Wintershall Dea continues to strengthen its presence in Algeria. As of 4 May, the company has
entered into a sale and purchase agreement to acquire Edison’s 11.25% participating interest in the
Reggane Nord natural gas project.
After the transaction is closed, the consortium Groupement Reggane Nord (GRN), operator of the
project, will comprise Sonatrach (40%), Wintershall Dea (30.75%) and Repsol (29.25%).
Wintershall Dea expands interest in the Algerian Reggane Nord gas project,
Algeria has significant energy potential. The country is the third largest exporter of gas to Europe,
after Russia and Norway; and is the largest natural gas producer in Africa. Algeria is a prime
candidate for an enhanced energy partnership with Europe, particularly at this critical time.
Located just across the Mediterranean, the country has well developed infrastructure connections
to Europe. These include two subsea gas pipelines and LNG facilities at two locations. In the long
term, the country has major potential for climate-friendly hydrogen, solar and wind power, and
carbon capture and storage.
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On that basis, Wintershall Dea wants to grow in Algeria. Dawn Summers, Chief Operating Officer
and responsible board member for Middle East and North Africa says: 'Algeria holds great potential
for natural gas production and future energy projects. That is why we want to grow our presence in
Algeria and contribute to the development of its energy sector. Increasing our interest in the
Reggane Nord project is a first step.'
Thomas Ruttmann, Senior Vice President and Managing Director for Algeria, adds: 'Wintershall Dea
has always been an active partner in the Reggane Nord project, and we are pleased to strengthen
our role. The project has been reliably producing low-cost natural gas since 2017 and has a long
future securing energy supply in Algeria and the region.'
The transaction is subject, among others, to customary authority approvals.
It comes after Wintershall Dea and Sonatrach recently extended a Memorandum of Understanding
to consider new business opportunities in the field of gas production and low-carbon energy
solutions. Wintershall Dea first entered the Algerian market in 2002 and subsequently became a
partner for the Reggane Nord project.
The project comprises six gas fields over an 1,800 km2 area in the Southwest of the country. The
operator GRN marked first gas in 2017 and the project is expected to be in production until at least
2041.
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India orders all imported coal plants to operate at full capacity
By CNBCTV18.com | May 06, 2022, 02:37 PM IST (Updated)
The government has ordered all imported coal power plants ordered to operate at full capacity as
power demand has surged almost 20 percent in energy terms, the Ministry of Power said in a
statement on Thursday.
“All imported coal-based power plants shall operate and generate power to their full capacity. Where
the imported coal-based plant is under NCLT, the Resolution Professional shall take steps to make
it functional," the government ordered, invoking Section 11 of the Electricity Act, 2003.
With the power crisis at hand, all states and gencos based on domestic coal have been directed to
import at least 10 percent of their requirement of coal for blending, the Centre said.
"The demand for power has gone up by almost 20% in energy terms. The supply of domestic coal
has increased but the increase in the supply is not sufficient to meet the increased demand for
power. This is leading to load shedding in different areas. Because of the mismatch between the
daily consumption of coal for power generation and the daily receipt of coal at the power plant, the
stocks of coal at the power plant has been declining at a worrisome rate," the Power Ministry
explained.
The plants are have been told to first supply power to power purchase agreement (PPA) holders
and sell surplus to power exchanges. If generators/group cos own coal mines abroad, mining profit
is to be set off to extent of shareholding, the statement said.
PPA holders shall pay generating co on weekly basis, either at benchmark rate or mutually
negotiated rate, it added. If discoms/states are unable to buy power, either way, it will be sold in
power exchanges.
Harry Dhaul, DG, Independent Power Producers Association of India (IPPAI) welcomed the
government’s order. “It's a good step, much needed to marshal all resources of power generating
cos to tackle the present crisis,” he told CNBC-TV18.
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What is Section 11 of the Electricity Act?
As per Section 11 of the Electricity Act, in the event of extraordinary circumstances, the government
can ask generating companies to operate and maintain their generating stations in accordance with
its directions.
For the purposes of this section, the expression “extraordinary circumstances” means
circumstances arising out of threat to security of the State, public order or a natural calamity or such
other circumstances arising in the public interest. As per the section, an appropriate commission
may offset the adverse financial impact of such directions.
power shortage concerns. India is witnessing electricity shortage which is at its peak compared to
the past six years. The centre has blamed states for being slow to respond to peak power demand.
It has urged states to revive imported coal-based power units and clear dues of power producers to
help them buy more coal.
The shortage of coal across many states has further exacerbated power shortage concerns. India
is witnessing its worst electricity crisis in six years.
The centre has blamed states for being too slow to respond to peak power demand. It has urged
states to revive imported coal-based power units and clear dues of power producers to help them
buy more coal.
Speaking to CNBC-TV18, Baldev Singh Sran, Chairman & MD of Punjab State Power Corporation,
said the state faced shortage only between April 26 and 29. However he added that Punjab is seeing
an increase in power demand by 32 percent.
“As of now there is no shortage of power in Punjab. We faced power shortage only between April
26 and 29 as two of our thermal plants developed a snag and took 3 days to revive. However
definitely there is an increase in demand in April by 32 percent.”
According to Sran, all thermal plants in Punjab have less than 6 days of coal. He added that the
state government has ordered 5 lakh tonnes of imported coal and will receive it by May end.
“There are issues on the coal front. Presently all our thermal plants have coal for less than 6 days.
The coal is being supplied but to meet the future demand indigenous coal from Coal India is
required. As far as imported coal is concerned, Punjab has already gone for tendering and 5 lakh
tonne has been ordered which we will receive by end of May and start using it from June.”
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
Indonesia: Acwa Power selected to develop solar projects
Reuters + The National - Fareed Rahman
Acwa Power raised $1.2bn from its IPO last year. The company plans to develop two floating
photovoltaic plants in the biggest South-East Asian economy. Riyadh utility developer Acwa Power
has been selected as the preferred bidder to develop two solar photovoltaic plants in Indonesia,
South-East Asia's largest economy.
The two projects include the Singkarak floating
plant in Sumatra with a capacity of 50
megawatts and another project in Java with a
total capacity of 60 megawatts. Acwa Power
announced the plans in a statement on Sunday
to the Tadawul stock exchange, where its
shares ar e traded.
“Acwa Power will now work with the relevant
stakeholders to take this project towards the
final award stage,” the company said, without
giving further details.
Indonesia is planning to meet at least 51 per cent of its total energy requirement from renewable
sources by 2030. The country also aims to become carbon neutral by 2060 or sooner, with
renewable energy providing up to 85 per cent of its energy mix within that timetable.
Earlier this year, Abu Dhabi’s Masdar also formed a joint venture with Indonesia’s Mitrabara to
provide renewable energy solutions to the fast-growing commercial and industrial sectors in the
country as the company continues to expand its operations globally.
Acwa Power plays a pivotal role in diversifying Saudi Arabia's energy sources through its
investments in renewable projects. The world's largest oil exporter plans to add to its gas and
renewables capacity, equating to 1 million barrels of oil per day by 2030.
Saudi Arabia's sovereign wealth fund, the Public Investment Fund, is the biggest shareholder in the
company, with a 50 per cent stake. Acwa Power has seven other stakeholders, including the Saudi
Public Pension Agency.
The company raised $1.2 billion from its listing last year, making it one of the biggest share sales in
the energy space after Saudi Aramco's record IPO on the Tadawul in 2019, which raised a record
$29.4bn.
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Austria is years away from cutting off Russian natural gas Bloomberg
- Brian Evans
Europeans continue to request millions of tonnes of gas from Russia despite sanctions. ON the
othr hand Austria isn't close to cutting off Russian natural gas, according to a top energy official.
"it will be a huge effort, and we have to be upfront that it will take time," said Energy Minister Leonore
Gewessler. The country entered a long-term contract with Russia that expires in 2040.
Austria's top energy official
acknowledged the country is
years away from severing its
connection to Russian natural
gas and that amassing an
emergency reserve would most
likely include Russian supplies.
Russia's war on Ukraine has
pushed Austria to face several
"uncomfortable truths," one of
which being the difficulty
associated with seeking gas
supplies from other markets, said
Energy Minister Leonore
Gewessler, according to
Bloomberg.
"It will be a huge effort, and we
have to be upfront that it will take
time," she said. Austria is still tied
into a long-term contract with the
Kremlin for a stream of gas
supplies that runs through 2040.
But a recent report from the
Austrian Energy Agency said the
country could stop importing
Russian natural gas in five years
via diversification of supplies, improvements in energy efficiency, and synthetic fuels.
Gewessler's comments show the difficulty some European countries face as seek to end their
reliance on Russian energy.
While the European Union is inching closer to a full-scale embargo on Russian oil, it faces opposition
from some countries like Hungary, which has called for the EU exclude member states that receive
their supply via pipeline.
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U.S. LNG exports decrease, Europe remains top destination
Reuters + NewBase
U.S. exports of liquefied natural gas (LNG) fell about 8% last month, according to preliminary
Refinitiv vessel tracking data on Monday, but Europe remained the top importer as the continent
secures alternate supply following Russia's invasion of Ukraine.
U.S. LNG exports to all destinations came to about 7.10 million tonnes (MT) last month, according
to Refinitiv, down from a record high 7.67 MT in March.
Europe was the top importer of U.S. LNG for a fifth straight month, taking about 64% of U.S. exports,
according to the data. European countries are slashing gas imports from Russia after its invasion
of Ukraine. Moscow has threatened to cut supply to "unfriendly nations," and even cut flow to
Bulgaria and Poland last week. read more
"Europe remains the dominant buyer of U.S. volumes," said Reid I'Anson, senior commodity analyst
at Kpler. "That seems to be continuing into the shoulder months."
U.S. liquefied natural gas (LNG) exports decreased about 8% last month, according to preliminary
Refinitiv data, with shipments to Europe continuing to dominate.
The drop in U.S. exports stems mainly from planned maintenance at U.S. LNG plants, experts said,
which reduces available liquefaction capacity, though exports still exceeded expectations.
Eventually, operators will have to conduct maintenance or risk operational troubles during peak
winter demand.
"The longer and harder these facilities run, which they have been for the last year, the more likely
you're going to have issues pop up," said Ross Wyeno, lead analyst of Americas LNG Analytics at
S&P Global Commodity Insights.
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Last month, U.S. energy company Sempra Energy's (SRE.N) Cameron LNG plant in Louisiana
began a three-week maintenance period on a liquefaction train, while Freeport LNG had an 18-day
maintenance period, according to S&P.
The United States is producing more
LNG year-over-year because of
additional capacity from Venture
Global's new Calcasieu Pass LNG
export terminal in Cameron Parish,
Louisiana, as it ramps up.
Cheniere Energ yInc's (LNG.A) Sabine
Pass facility in Louisiana now has a
sixth liquefaction train operating. The
U.S. Energy Department last month
approved Cheniere to export more
LNG from its Sabine Pass and Corpus
Christi, Texas, terminals.
About 13% of exports went to Asia and 2% to Latin America, data showed. About 21 vessels
responsible for 21% of volumes had not signaled a destination.
Global prices have tapered off in recent weeks. The European LNG benchmark this week traded at
$30 per million British thermal units (mmBtu), according to Refinitiv, compared with $39.22 per
mmBtu for the same week in March.
Asia spot gas this week traded at $23.50 per mmBtu , down from $35.00 per mmBtu in March.
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
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NewBase May 09 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Swings as Traders Weigh Up G-7 Crude Ban, Saudi Price Cuts
Bloomberg + NewBase
Oil fluctuated as investors weighed a pledge by the Group of Seven to ban imports of Russian crude
against a cut in official prices by Saudi Arabia and the impact of China’s energy-sapping lockdowns.
West Texas Intermediate traded near $110 a barrel after earlier losing as much as 1.7%. The
leaders of the most-industrialized countries made the vow in response to President Vladimir Putin’s
war in Ukraine after holding a video call with Ukraine President Volodymyr Zelenskiy on Sunday. A
similar plan by the European Union, or EU, has yet to be agreed as some members object.
Saudi Arabia cut prices for buyers in Asia as coronavirus lockdowns in China weigh on consumption
in the top importer. State-controlled Saudi Aramco lowered prices for the first time in four months,
dropping its key Arab Light grade for next month’s flows to $4.40 a barrel above the benchmark it
uses.
Crude has had a tempestuous year as Russia’s invasion of its smaller neighbor upended global
commodity markets, lifting prices. The U.S. and the U.K. have already moved to ban imports of
Russian fuel in response to the assault, but the weekend pledge by the G-7 will increase the
pressure on Moscow further. Raw material prices have also been buffeted as leading central banks
including the U.S. Federal Reserve tighten policy to quell a powerful surge in inflation.
Oil price special
coverage
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“Expect some pullback in prices as the EU struggles to get unanimity on a Russian oil ban,” said
Vandana Hari, founder of oil analysis firm Vanda Insights. The downside may be limited, however,
as the bloc continues with its efforts to reach consensus, keeping the market on tenterhooks, she
added.
Oil’s resilience in the week’s opening session came despite a shift toward risk aversion in financial
markets, and a further gain for the U.S. currency, amid growth concerns. A stronger dollar can
undercut demand for commodities such as crude as it makes raw materials more expensive for
overseas buyers.
The G-7 leaders made their commitment to phasing out Russian oil on the eve of Russia’s May 9
Victory Day, which commemorates the nation’s role in the triumph over Nazi Germany in World War
II. The date has become a touchstone of the Kremlin’s campaign to whip up public support for the
invasion.
“It’s an extremely difficult decision for a country that imports most of its energy,” Japanese Prime
Minister Fumio Kishida said. “But this is a time when G-7 unity is more important than anything.”
The plan by the EU to follow suit with its own ban on Russian crude remains under discussion amid
objections from Hungary. A meeting of the bloc’s 27 ambassadors ended on Sunday without an
agreement, with talks expected to resume in the coming days. A ban on shipping Russian oil to third
countries may also be delayed until G-7 countries commit to similar measures.
China’s repeated attempts to halt Covid-19 outbreaks with the lockdown of urban centers including
the key hub of Shanghai have curbed energy consumption. Highlighting the economic damage,
Premier Li Keqiang warned at the weekend of a “complicated and grave” employment situation.
Still, oil markets remain in backwardation, a bullish pattern marked by near-term prices commanding
a premium to those further out. The spread between Brent’s two nearest December contracts was
at $13.75 a barrel, close to the level seen in the initial weeks after Russia began its invasion.
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NewBase Special Coverage
The Energy world –May -09 -2022
CLEAN ENERGY
…………………………………………………………………………………………………………………………………………………………
Why the EU may find it tough to squeeze out Russian oil
Reuters - Rowena Edwards
The European Union has proposed a phased embargo of Russian oil but may find it tricky to
implement, given Europe's complex distribution network and challenges in tracking crude once it is
blended or refined.
The plan, if agreed by member states, would take effect in six months for crude, and in eight months
for diesel and other oil products.
Under the proposal, Hungary and Slovakia would be granted a longer period - until the end of 2023
- to adapt to the embargo. This means that countries in the EU would still be able to purchase
Russian oil via Hungary and Slovakia, unless the plan is ratified to prevent both countries from
buying more oil than they need.
European countries might still
continue buying Russian cargoes from
other third countries without being
aware of its origin.
Oil can usually be traced to its origin
based on its chemical make up, such
as sulphur content and density.
However, some buyers have been
deceived in the past by forged
documents, hiding the origin of
cargoes from countries under
sanctions, including Iran and
Venezuela, according to industry
sources.
That becomes more difficult if the
crude is blended with other crudes for
refiners, and almost impossible after it
is processed into standard products,
such as gasoline, diesel or jet fuel.
At least 26 major European refiners
and trading companies have suspended spot purchases or intend to phase out a combined 2.1
million barrels per day (bpd) of Russian imports, according to JP Morgan.
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European companies including Shell (SHEL.L), TotalEnergies (TTEF.PA), Repsol (REP.MC) and
BP (BP.L) no longer buy any refined products with Russian content. And BP's contracts state any
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deal with a seller that violates its policy will be invalid, according to trade information detailed in the
Platts trading window.
Several shipping firms are also asking for guarantees that cargoes have no Russian origin or
interest, and have not been transferred from a ship with Russian ties, according to documents seen
by Reuters.
Even with all those documents in place, there is no guarantee of eliminating any traces of Russian
hydrocarbons once it enters the EU's main oil importing hub, the Amsterdam-Rotterdam-Antwerp
(ARA) complex - made up of eight ports spread across two countries, 96 terminals, and 6,300
storage tanks owned by hundreds of international oil companies.
"Some products processed in European refineries will continue to contain Russian oil," Shell says.
"At the same time, many products like diesel are typically blended – meaning a proportion of the
liquids mixed into the pipes and tanks that feed the entire industry will have originated in Russia."
In ARA, the blended Russian oil may show up in customs data simply as fuel from the Netherlands,
said Cuneyt Kazokoglu, head of oil demand analysis at FGE.
"I think a lot of European countries will quote imports from 'Netherlands' to hide the origin of Russian
products," Kazokoglu said.
Impacted Russian Refineries
WHERE DOES THE OIL GO FROM ARA?
Fuel can be loaded onto cargoes and re-exported to other regions and countries. It can go by barge
to other terminals within the same port, or head down the Rhine river to Switzerland, France and
Germany. This can hide the fuel’s origin, traders said.
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From the ARA hub, oil products can be distributed through NATO’s Central European Pipeline
System (CEPS), which links to six maritime ports and 11 refineries across the continent, three rail
and 16 truck-loading stations, and six international airports.
"If it's not a Russian owner, then apart from the origin certificate — but even that can be changed
— it's hard for the (storage) terminal to identify the origin of products," said Krien van Beek, a broker
at ODIN-RVB Tank Storage Solutions in Rotterdam.
Buyers are increasingly requesting breakdowns on the origin of blended oil from storage sites,
industry sources said, to make their own decision on whether they can accept it. But fully traceable
origin documentation is not always readily available in a reasonable time frame before a deal takes
place.
Some shipping charterers provide a certificate detailing where fuel was produced or processed.
While a country's customs authority would have access to that data with imported cargoes, the
documents are considered confidential.
Shell previously classified goods of Russian origin as those with 50% or more of their content from
fuel produced in Russia. But the firm recently tightened its restrictions on buying Russian oil, saying
it would no longer accept refined products with Russian content, including blended fuels, according
to clauses in its trading contracts.
The restriction, however, only applies to platforms where companies are allowed to insert their own
clauses, and would exclude the gasoil contract on the major ICE exchange, one source familiar with
the matter said. read more
Some other traders continue to evaluate whether a diesel blend, for example, containing up to 49%
Russian diesel, would count as a non-Russian product, three trading sources told Reuters.
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NewBase Energy News 09 May 2022 - Issue No. 1511 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
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About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
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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 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 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

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NewBase May 09-2022 Energy News issue - 1511 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 09 May 2022 No. 1511 Senior Editor Eng. Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Mohammed bin Rashid Al Maktoum Solar Park key pillar to reach 100% clean energy in Dubai by 2050 WAM/Khoder Nashar Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world, is one of the most extensive clean and renewable energy projects that Dubai Electricity and Water Authority (DEWA) is implementing to achieve net-zero emissions by 2050. The solar park has a planned capacity of 5,000 megawatts (MW) by 2030 with investments up to AED50 billion. When completed, it will reduce over 6.5 million tonnes of carbon emissions annually. In October 2022, the UAE launched its strategic initiative for net-zero emissions by 2050, to become the first country in the Middle East and North Africa (MENA) Region to undertake such a strategic initiative. Dubai also launched the Net Zero Carbon Emissions Strategy 2050 to provide 100 percent of Dubai's total power capacity from clean energy sources by 2050. Saeed Mohammed Al Tayer, MD and CEO of DEWA, said that the regulatory frameworks in Dubai, which enable the private sector to take part in energy production projects in Dubai, have encouraged international investors and developers to participate in the Mohammed bin Rashid Al Maktoum Solar Park's projects, which DEWA is implementing using the Independent Power Producer (IPP) model.
  • 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 He noted that DEWA has attracted investments of around AED40 billion through this model in public- private partnerships. DEWA received the lowest solar energy prices (Levelised Cost of Energy) globally five consecutive times, making Dubai a global benchmark for solar power prices. "At DEWA, we work in line with the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to promote sustainability and innovation and transform into a sustainable green economy. "The Mohammed bin Rashid Al Maktoum Solar Park, the largest single-site solar park in the world, is our biggest project to achieve this vision. It has a planned capacity of 5,000 MW by 2030. The current capacity at the solar park is 1,527MW using photovoltaic solar panels. DEWA is implementing more projects with a total capacity of 1,333 MW using solar photovoltaic and Concentrated Solar Power (CSP), in addition to future phases to reach 5,000 MW by 2030. The clean energy capacity share is currently around 11.4 percent of Dubai's energy mix, and is expected to reach around 14 percent by the end of 2022," added Al Tayer. The solar park hosts two pioneering projects: The Innovation Centre and the R&D Centre. The Innovation Centre supports DEWA's efforts to enhance innovation and creativity in clean and renewable energy and raise awareness on sustainability, in addition to strengthening national capabilities and enhancing business competitiveness. It also provides visitors with a unique experience to explore the latest innovations in clean energy technologies. The R&D Centre supports DEWA's efforts to anticipate the future, develop proactive, long-term plans to keep pace with the Fourth Industrial Revolution by developing disruptive technologies. It has the largest and most comprehensive solar testing and certification facility in the UAE, and it operates the longest continuous testing of photovoltaic panels in the UAE in desert climate conditions. This is achieved by increasing the share of clean and renewable energy in line with the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy to provide 100 percent of Dubai's total power capacity from clean energy sources by 2050.
  • 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 Algeria: Wintershall interest in the Reggane Nord gas project Source: Wintershall Dea Summary:  Agreement to acquire additional 11.25% participating interest from Edison  Decision is part of plan to grow in Algeria  Country with major potential for an enhanced energy partnership with Europe Wintershall Dea continues to strengthen its presence in Algeria. As of 4 May, the company has entered into a sale and purchase agreement to acquire Edison’s 11.25% participating interest in the Reggane Nord natural gas project. After the transaction is closed, the consortium Groupement Reggane Nord (GRN), operator of the project, will comprise Sonatrach (40%), Wintershall Dea (30.75%) and Repsol (29.25%). Wintershall Dea expands interest in the Algerian Reggane Nord gas project, Algeria has significant energy potential. The country is the third largest exporter of gas to Europe, after Russia and Norway; and is the largest natural gas producer in Africa. Algeria is a prime candidate for an enhanced energy partnership with Europe, particularly at this critical time. Located just across the Mediterranean, the country has well developed infrastructure connections to Europe. These include two subsea gas pipelines and LNG facilities at two locations. In the long term, the country has major potential for climate-friendly hydrogen, solar and wind power, and carbon capture and storage.
  • 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 On that basis, Wintershall Dea wants to grow in Algeria. Dawn Summers, Chief Operating Officer and responsible board member for Middle East and North Africa says: 'Algeria holds great potential for natural gas production and future energy projects. That is why we want to grow our presence in Algeria and contribute to the development of its energy sector. Increasing our interest in the Reggane Nord project is a first step.' Thomas Ruttmann, Senior Vice President and Managing Director for Algeria, adds: 'Wintershall Dea has always been an active partner in the Reggane Nord project, and we are pleased to strengthen our role. The project has been reliably producing low-cost natural gas since 2017 and has a long future securing energy supply in Algeria and the region.' The transaction is subject, among others, to customary authority approvals. It comes after Wintershall Dea and Sonatrach recently extended a Memorandum of Understanding to consider new business opportunities in the field of gas production and low-carbon energy solutions. Wintershall Dea first entered the Algerian market in 2002 and subsequently became a partner for the Reggane Nord project. The project comprises six gas fields over an 1,800 km2 area in the Southwest of the country. The operator GRN marked first gas in 2017 and the project is expected to be in production until at least 2041.
  • 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 India orders all imported coal plants to operate at full capacity By CNBCTV18.com | May 06, 2022, 02:37 PM IST (Updated) The government has ordered all imported coal power plants ordered to operate at full capacity as power demand has surged almost 20 percent in energy terms, the Ministry of Power said in a statement on Thursday. “All imported coal-based power plants shall operate and generate power to their full capacity. Where the imported coal-based plant is under NCLT, the Resolution Professional shall take steps to make it functional," the government ordered, invoking Section 11 of the Electricity Act, 2003. With the power crisis at hand, all states and gencos based on domestic coal have been directed to import at least 10 percent of their requirement of coal for blending, the Centre said. "The demand for power has gone up by almost 20% in energy terms. The supply of domestic coal has increased but the increase in the supply is not sufficient to meet the increased demand for power. This is leading to load shedding in different areas. Because of the mismatch between the daily consumption of coal for power generation and the daily receipt of coal at the power plant, the stocks of coal at the power plant has been declining at a worrisome rate," the Power Ministry explained. The plants are have been told to first supply power to power purchase agreement (PPA) holders and sell surplus to power exchanges. If generators/group cos own coal mines abroad, mining profit is to be set off to extent of shareholding, the statement said. PPA holders shall pay generating co on weekly basis, either at benchmark rate or mutually negotiated rate, it added. If discoms/states are unable to buy power, either way, it will be sold in power exchanges. Harry Dhaul, DG, Independent Power Producers Association of India (IPPAI) welcomed the government’s order. “It's a good step, much needed to marshal all resources of power generating cos to tackle the present crisis,” he told CNBC-TV18.
  • 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 What is Section 11 of the Electricity Act? As per Section 11 of the Electricity Act, in the event of extraordinary circumstances, the government can ask generating companies to operate and maintain their generating stations in accordance with its directions. For the purposes of this section, the expression “extraordinary circumstances” means circumstances arising out of threat to security of the State, public order or a natural calamity or such other circumstances arising in the public interest. As per the section, an appropriate commission may offset the adverse financial impact of such directions. power shortage concerns. India is witnessing electricity shortage which is at its peak compared to the past six years. The centre has blamed states for being slow to respond to peak power demand. It has urged states to revive imported coal-based power units and clear dues of power producers to help them buy more coal. The shortage of coal across many states has further exacerbated power shortage concerns. India is witnessing its worst electricity crisis in six years. The centre has blamed states for being too slow to respond to peak power demand. It has urged states to revive imported coal-based power units and clear dues of power producers to help them buy more coal. Speaking to CNBC-TV18, Baldev Singh Sran, Chairman & MD of Punjab State Power Corporation, said the state faced shortage only between April 26 and 29. However he added that Punjab is seeing an increase in power demand by 32 percent. “As of now there is no shortage of power in Punjab. We faced power shortage only between April 26 and 29 as two of our thermal plants developed a snag and took 3 days to revive. However definitely there is an increase in demand in April by 32 percent.” According to Sran, all thermal plants in Punjab have less than 6 days of coal. He added that the state government has ordered 5 lakh tonnes of imported coal and will receive it by May end. “There are issues on the coal front. Presently all our thermal plants have coal for less than 6 days. The coal is being supplied but to meet the future demand indigenous coal from Coal India is required. As far as imported coal is concerned, Punjab has already gone for tendering and 5 lakh tonne has been ordered which we will receive by end of May and start using it from June.”
  • 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 Indonesia: Acwa Power selected to develop solar projects Reuters + The National - Fareed Rahman Acwa Power raised $1.2bn from its IPO last year. The company plans to develop two floating photovoltaic plants in the biggest South-East Asian economy. Riyadh utility developer Acwa Power has been selected as the preferred bidder to develop two solar photovoltaic plants in Indonesia, South-East Asia's largest economy. The two projects include the Singkarak floating plant in Sumatra with a capacity of 50 megawatts and another project in Java with a total capacity of 60 megawatts. Acwa Power announced the plans in a statement on Sunday to the Tadawul stock exchange, where its shares ar e traded. “Acwa Power will now work with the relevant stakeholders to take this project towards the final award stage,” the company said, without giving further details. Indonesia is planning to meet at least 51 per cent of its total energy requirement from renewable sources by 2030. The country also aims to become carbon neutral by 2060 or sooner, with renewable energy providing up to 85 per cent of its energy mix within that timetable. Earlier this year, Abu Dhabi’s Masdar also formed a joint venture with Indonesia’s Mitrabara to provide renewable energy solutions to the fast-growing commercial and industrial sectors in the country as the company continues to expand its operations globally. Acwa Power plays a pivotal role in diversifying Saudi Arabia's energy sources through its investments in renewable projects. The world's largest oil exporter plans to add to its gas and renewables capacity, equating to 1 million barrels of oil per day by 2030. Saudi Arabia's sovereign wealth fund, the Public Investment Fund, is the biggest shareholder in the company, with a 50 per cent stake. Acwa Power has seven other stakeholders, including the Saudi Public Pension Agency. The company raised $1.2 billion from its listing last year, making it one of the biggest share sales in the energy space after Saudi Aramco's record IPO on the Tadawul in 2019, which raised a record $29.4bn.
  • 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 Austria is years away from cutting off Russian natural gas Bloomberg - Brian Evans Europeans continue to request millions of tonnes of gas from Russia despite sanctions. ON the othr hand Austria isn't close to cutting off Russian natural gas, according to a top energy official. "it will be a huge effort, and we have to be upfront that it will take time," said Energy Minister Leonore Gewessler. The country entered a long-term contract with Russia that expires in 2040. Austria's top energy official acknowledged the country is years away from severing its connection to Russian natural gas and that amassing an emergency reserve would most likely include Russian supplies. Russia's war on Ukraine has pushed Austria to face several "uncomfortable truths," one of which being the difficulty associated with seeking gas supplies from other markets, said Energy Minister Leonore Gewessler, according to Bloomberg. "It will be a huge effort, and we have to be upfront that it will take time," she said. Austria is still tied into a long-term contract with the Kremlin for a stream of gas supplies that runs through 2040. But a recent report from the Austrian Energy Agency said the country could stop importing Russian natural gas in five years via diversification of supplies, improvements in energy efficiency, and synthetic fuels. Gewessler's comments show the difficulty some European countries face as seek to end their reliance on Russian energy. While the European Union is inching closer to a full-scale embargo on Russian oil, it faces opposition from some countries like Hungary, which has called for the EU exclude member states that receive their supply via pipeline.
  • 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 U.S. LNG exports decrease, Europe remains top destination Reuters + NewBase U.S. exports of liquefied natural gas (LNG) fell about 8% last month, according to preliminary Refinitiv vessel tracking data on Monday, but Europe remained the top importer as the continent secures alternate supply following Russia's invasion of Ukraine. U.S. LNG exports to all destinations came to about 7.10 million tonnes (MT) last month, according to Refinitiv, down from a record high 7.67 MT in March. Europe was the top importer of U.S. LNG for a fifth straight month, taking about 64% of U.S. exports, according to the data. European countries are slashing gas imports from Russia after its invasion of Ukraine. Moscow has threatened to cut supply to "unfriendly nations," and even cut flow to Bulgaria and Poland last week. read more "Europe remains the dominant buyer of U.S. volumes," said Reid I'Anson, senior commodity analyst at Kpler. "That seems to be continuing into the shoulder months." U.S. liquefied natural gas (LNG) exports decreased about 8% last month, according to preliminary Refinitiv data, with shipments to Europe continuing to dominate. The drop in U.S. exports stems mainly from planned maintenance at U.S. LNG plants, experts said, which reduces available liquefaction capacity, though exports still exceeded expectations. Eventually, operators will have to conduct maintenance or risk operational troubles during peak winter demand. "The longer and harder these facilities run, which they have been for the last year, the more likely you're going to have issues pop up," said Ross Wyeno, lead analyst of Americas LNG Analytics at S&P Global Commodity Insights.
  • 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 Last month, U.S. energy company Sempra Energy's (SRE.N) Cameron LNG plant in Louisiana began a three-week maintenance period on a liquefaction train, while Freeport LNG had an 18-day maintenance period, according to S&P. The United States is producing more LNG year-over-year because of additional capacity from Venture Global's new Calcasieu Pass LNG export terminal in Cameron Parish, Louisiana, as it ramps up. Cheniere Energ yInc's (LNG.A) Sabine Pass facility in Louisiana now has a sixth liquefaction train operating. The U.S. Energy Department last month approved Cheniere to export more LNG from its Sabine Pass and Corpus Christi, Texas, terminals. About 13% of exports went to Asia and 2% to Latin America, data showed. About 21 vessels responsible for 21% of volumes had not signaled a destination. Global prices have tapered off in recent weeks. The European LNG benchmark this week traded at $30 per million British thermal units (mmBtu), according to Refinitiv, compared with $39.22 per mmBtu for the same week in March. Asia spot gas this week traded at $23.50 per mmBtu , down from $35.00 per mmBtu in March.
  • 11. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 NewBase May 09 -2022 Khaled Al Awadi NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE Oil Swings as Traders Weigh Up G-7 Crude Ban, Saudi Price Cuts Bloomberg + NewBase Oil fluctuated as investors weighed a pledge by the Group of Seven to ban imports of Russian crude against a cut in official prices by Saudi Arabia and the impact of China’s energy-sapping lockdowns. West Texas Intermediate traded near $110 a barrel after earlier losing as much as 1.7%. The leaders of the most-industrialized countries made the vow in response to President Vladimir Putin’s war in Ukraine after holding a video call with Ukraine President Volodymyr Zelenskiy on Sunday. A similar plan by the European Union, or EU, has yet to be agreed as some members object. Saudi Arabia cut prices for buyers in Asia as coronavirus lockdowns in China weigh on consumption in the top importer. State-controlled Saudi Aramco lowered prices for the first time in four months, dropping its key Arab Light grade for next month’s flows to $4.40 a barrel above the benchmark it uses. Crude has had a tempestuous year as Russia’s invasion of its smaller neighbor upended global commodity markets, lifting prices. The U.S. and the U.K. have already moved to ban imports of Russian fuel in response to the assault, but the weekend pledge by the G-7 will increase the pressure on Moscow further. Raw material prices have also been buffeted as leading central banks including the U.S. Federal Reserve tighten policy to quell a powerful surge in inflation. Oil price special coverage
  • 12. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 “Expect some pullback in prices as the EU struggles to get unanimity on a Russian oil ban,” said Vandana Hari, founder of oil analysis firm Vanda Insights. The downside may be limited, however, as the bloc continues with its efforts to reach consensus, keeping the market on tenterhooks, she added. Oil’s resilience in the week’s opening session came despite a shift toward risk aversion in financial markets, and a further gain for the U.S. currency, amid growth concerns. A stronger dollar can undercut demand for commodities such as crude as it makes raw materials more expensive for overseas buyers. The G-7 leaders made their commitment to phasing out Russian oil on the eve of Russia’s May 9 Victory Day, which commemorates the nation’s role in the triumph over Nazi Germany in World War II. The date has become a touchstone of the Kremlin’s campaign to whip up public support for the invasion. “It’s an extremely difficult decision for a country that imports most of its energy,” Japanese Prime Minister Fumio Kishida said. “But this is a time when G-7 unity is more important than anything.” The plan by the EU to follow suit with its own ban on Russian crude remains under discussion amid objections from Hungary. A meeting of the bloc’s 27 ambassadors ended on Sunday without an agreement, with talks expected to resume in the coming days. A ban on shipping Russian oil to third countries may also be delayed until G-7 countries commit to similar measures. China’s repeated attempts to halt Covid-19 outbreaks with the lockdown of urban centers including the key hub of Shanghai have curbed energy consumption. Highlighting the economic damage, Premier Li Keqiang warned at the weekend of a “complicated and grave” employment situation. Still, oil markets remain in backwardation, a bullish pattern marked by near-term prices commanding a premium to those further out. The spread between Brent’s two nearest December contracts was at $13.75 a barrel, close to the level seen in the initial weeks after Russia began its invasion.
  • 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 NewBase Special Coverage The Energy world –May -09 -2022 CLEAN ENERGY ………………………………………………………………………………………………………………………………………………………… Why the EU may find it tough to squeeze out Russian oil Reuters - Rowena Edwards The European Union has proposed a phased embargo of Russian oil but may find it tricky to implement, given Europe's complex distribution network and challenges in tracking crude once it is blended or refined. The plan, if agreed by member states, would take effect in six months for crude, and in eight months for diesel and other oil products. Under the proposal, Hungary and Slovakia would be granted a longer period - until the end of 2023 - to adapt to the embargo. This means that countries in the EU would still be able to purchase Russian oil via Hungary and Slovakia, unless the plan is ratified to prevent both countries from buying more oil than they need. European countries might still continue buying Russian cargoes from other third countries without being aware of its origin. Oil can usually be traced to its origin based on its chemical make up, such as sulphur content and density. However, some buyers have been deceived in the past by forged documents, hiding the origin of cargoes from countries under sanctions, including Iran and Venezuela, according to industry sources. That becomes more difficult if the crude is blended with other crudes for refiners, and almost impossible after it is processed into standard products, such as gasoline, diesel or jet fuel. At least 26 major European refiners and trading companies have suspended spot purchases or intend to phase out a combined 2.1 million barrels per day (bpd) of Russian imports, according to JP Morgan. Meet Fatimeezzahra, a success story from EFE-Maroc. She applied for the Job in Tech training to follow her passion which is computer coding in a 6 months professional reskilling program. At the end of the program, she was placed in Atos, one of the leading IT companies in Morocco. Discover how... European companies including Shell (SHEL.L), TotalEnergies (TTEF.PA), Repsol (REP.MC) and BP (BP.L) no longer buy any refined products with Russian content. And BP's contracts state any
  • 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 deal with a seller that violates its policy will be invalid, according to trade information detailed in the Platts trading window. Several shipping firms are also asking for guarantees that cargoes have no Russian origin or interest, and have not been transferred from a ship with Russian ties, according to documents seen by Reuters. Even with all those documents in place, there is no guarantee of eliminating any traces of Russian hydrocarbons once it enters the EU's main oil importing hub, the Amsterdam-Rotterdam-Antwerp (ARA) complex - made up of eight ports spread across two countries, 96 terminals, and 6,300 storage tanks owned by hundreds of international oil companies. "Some products processed in European refineries will continue to contain Russian oil," Shell says. "At the same time, many products like diesel are typically blended – meaning a proportion of the liquids mixed into the pipes and tanks that feed the entire industry will have originated in Russia." In ARA, the blended Russian oil may show up in customs data simply as fuel from the Netherlands, said Cuneyt Kazokoglu, head of oil demand analysis at FGE. "I think a lot of European countries will quote imports from 'Netherlands' to hide the origin of Russian products," Kazokoglu said. Impacted Russian Refineries WHERE DOES THE OIL GO FROM ARA? Fuel can be loaded onto cargoes and re-exported to other regions and countries. It can go by barge to other terminals within the same port, or head down the Rhine river to Switzerland, France and Germany. This can hide the fuel’s origin, traders said.
  • 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 From the ARA hub, oil products can be distributed through NATO’s Central European Pipeline System (CEPS), which links to six maritime ports and 11 refineries across the continent, three rail and 16 truck-loading stations, and six international airports. "If it's not a Russian owner, then apart from the origin certificate — but even that can be changed — it's hard for the (storage) terminal to identify the origin of products," said Krien van Beek, a broker at ODIN-RVB Tank Storage Solutions in Rotterdam. Buyers are increasingly requesting breakdowns on the origin of blended oil from storage sites, industry sources said, to make their own decision on whether they can accept it. But fully traceable origin documentation is not always readily available in a reasonable time frame before a deal takes place. Some shipping charterers provide a certificate detailing where fuel was produced or processed. While a country's customs authority would have access to that data with imported cargoes, the documents are considered confidential. Shell previously classified goods of Russian origin as those with 50% or more of their content from fuel produced in Russia. But the firm recently tightened its restrictions on buying Russian oil, saying it would no longer accept refined products with Russian content, including blended fuels, according to clauses in its trading contracts. The restriction, however, only applies to platforms where companies are allowed to insert their own clauses, and would exclude the gasoil contract on the major ICE exchange, one source familiar with the matter said. read more Some other traders continue to evaluate whether a diesel blend, for example, containing up to 49% Russian diesel, would count as a non-Russian product, three trading sources told Reuters.
  • 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 NewBase Energy News 09 May 2022 - Issue No. 1511 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.
  • 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
  • 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
  • 19. Copyright © 2022 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19