NewBase May 30 -2022 Energy News issue - 1518 by Khaled Al Awadi.pdf

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NewBase Energy News 30 May 2022 No. 1518 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
UAE, Egypt and Jordan sign Industrial Partnership for
Sustainable Economic Growth
WAM/Hazem Hussein
The United Arab Emirates, the Arab Republic of Egypt and the Hashemite Kingdom of Jordan have
announced an Industrial Partnership for Sustainable Economic Growth in Abu Dhabi today to unlock
new industrial opportunities and enhance sustainable economic growth in the three countries,
across 5 sectors.
H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs,
witnessed the signing of the partnership, which is designed to achieve sustainable economic growth
across food and agriculture, fertilisers, pharmaceuticals, textiles, minerals, and petrochemicals.
In order to accelerate the partnership objectives, a US$10bn investment fund has been allocated
and will be managed by ADQ Holding. Dr. Mostafa Madbouly, Prime Minister of Egypt, and Dr.
Bisher Al Khasawneh, Prime Minister of Jordan, witnessed the signing alongside His Highness.
The partnership agreement was signed by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and
Advanced Technology, Dr. Nevein Gamea, Egyptian Minister of Industry and Trade, and Yousef Al
Shamali, Jordan Minister of Industry, Trade and Supply.
H.H. Sheikh Mansour added: "Advancing the industrial sector in the UAE, Egypt and Jordan will
help strengthen and diversify the economy in each nation and increase the contribution of industry
to the national GDP. This partnership is also a testament to its signatories’ ability to strengthen their

relations and introduce new projects and industries within an integrated industrial ecosystem, while
unlocking promising opportunities for future generations."
The three nations who are party to this partnership have diverse resources and unique competitive
advantages, including access to raw materials. In particular, they enjoy robust capabilities in the
pharmaceutical industries, with clear ambition to develop and expand them further and increase
their production capacity. They also wish to strengthen manufacturing capabilities in the steel,
aluminum, petrochemicals and derivatives sectors.
The three nations’ combined industrial capacity represents around 26% of the total industrial
capacity of the MENA region. These countries also enjoy a highly developed logistical infrastructure,
including airports, ports and strategic transport corridors such as the Suez Canal; major companies
with distinct capabilities in the main focus areas of the partnership; and access to capital and smart
financing solutions. Almost half the total population of the partner countries comprising 122 million
people are young people, who represent both a large market and an emerging workforce.
Dr. Bishr Al-Khasawneh delivered remarks at the signing ceremony highlighting that the partnership
is a testament to the depth of the historic relationship between the 3 countries; emphasizing that
that the partnership enhances integration, protects supply chains, empowers import substitution,
and promotes sustainable economic development; all of which will result in economic growth, job
creation and other benefits.
Dr. Al-Khasawneh thanked the leadership of the UAE for their efforts towards strengthening
relations and economic cooperation in the region.
Al-Khasawneh said, "The continued active interaction and coordination at the leadership level
confirms the strength of these relations with the industrial sector at the center of the partnership. In
Jordan, an attractive investment destination, industry contributes to 24% of the GDP, and account
for 21% of the countries employment. Jordan exports to many countries around the world and is
empowered by supportive laws and regulations.
In his speech at the beginning of the signing ceremony, Dr. Sultan bin Ahmed Al Jaber, UAE Minister
of Industry and Advanced Technology, said: "In line with the directives of President His Highness
Sheikh Mohamed bin Zayed Al Nahyan, the Ministry of Industry and Advanced Technology focuses
on developing and empowering the industrial sector, enhancing its contribution to the GDP and on
economic diversification."
He added, "We extend an open invitation to our partners to support this collaboration by
encouraging private sector participation, enhancing advanced technology applications, providing
smart financing solutions, and opening markets to encourage the growth of the industrial sector in
these and other countries."
He continued: "In line with the directives of President His Highness Sheikh Mohamed bin Zayed Al
Nahyan, and with the aim of accelerating the objectives of this partnership between the three

nations, a US$10 billion investment fund has been allocated to accelerate the partnership objectives
and will be managed by ADQ Holding."
Dr Al Jaber added: "This partnership will contribute to strengthening
relations and cooperation with our brothers in Jordan and Egypt, and are
in line with the goals of the Principles of the 50 that were announced by
the UAE with the aim of building a better future. Developing distinguished
economic partnerships is one of the most important priorities of the UAE
leadership and government. The partnership will help diversify our
economies and promote growth by increasing the in-country value of
industrial products, especially in priority industries such as
petrochemicals, pharmaceuticals, agriculture, food, and others. Through
collaboration across expertise and resources, we will be able to add
industrial value and reduce production costs, create more jobs, and achieve positive results for all
parties."
He concluded: "This partnership reflects our efforts to build constructive development partnerships
that enhance our national economies, promote sustainable economic growth, support the
knowledge sharing, deepen integration of the unique advantages of each participating country,
boost self-sufficiency, enhance food and health security, integrate value chains, and develop more
joint industrial ventures."
During his remarks, Mohamed Hassan Al-Suwaidi, Managing Director and CEO of ADQ, said: "In
line with the directives of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, the
US10billion investment fund allocated and managed by the Abu Dhabi Holding Company will
catalyse the projects identified in this partnership across the agreed sectors and will strengthen the
economic infrastructure in the 3 countries.
He added: "The allocation of this fund confirms ADQ's commitment to industrial investment, directly
or through its portfolio of companies, to enhance and enable the partnership and achieve
sustainable economic benefits for the three participating nations and their people and is aligned with
our objective of solidifying the UAE and Abu Dhabi’s position as a leading global investment and
partnership destination across various critical sectors; and particularly in the industrial sector."
Al-Suwaidi continued: "ADQ is committed to driving further investments and infrastructure,
specifically in the industrial sectors agreed to in this partnership, which are of vital importance and
will enhance the industrial GDP contribution for all three countries and result in significant positive
impact on their efforts of economic diversification and development as well as job creation in the
years to come."
Industry is the backbone of economy The partnership is based on enhancing investment
opportunities in each country’s industrial sector, developing the three nations’ human and natural
capital, and exploring a collective consumer market that offers opportunities for both the local private
sector and international investors. The partnership includes launching joint industrial projects
between the countries to promote economic growth and industrial integration, achieve self-
sufficiency, and integrate value chains across the UAE, Egypt and Jordan.
Regional and Global Industrial Partnerships The Integrated Industrial Partnership For Sustainable
Economic Growth reflects the UAE’s commitment to creating key partnerships at the regional and
global levels, especially in the industrial sector. This is in line with its vision to enhance the industrial
sector’s role in the national economy, integrate advanced technology, and utilise the competitive
advantages and capabilities of each country. This makes the UAE a leading global destination for
the industries of the future and a hub that attracts the most prominent industries. The UAE is a

launching pad for industrial investors targeting global markets due to its advanced logistical services
and infrastructure, modern transportation networks, and the availability of raw materials. Taken
together, these ensure supply-chain flexibility in, increase sustainable economic growth, and
enhance value-added industries.
The partnership also embodies the close relations between the three countries, their common vision
and mutual trust. This partnership provides a platform for cooperation in the future, and is based on
the importance of integration and openness, and the shared commitment to developing the industrial
sector, exchanging economic benefits, and utilizing human resources and experiences through the
establishment of major joint industrial projects in more than one country.
Five Key Sectors Agriculture, Food
and Fertilisers Food security is a key
objective of this partnership. The
participating countries possess all the
key elements across the food value
chain to scale up investment in
fertilisers, cereal, animal protein, and
food production capacity. The UAE,
Egypt and Jordan have the required
combination of renewables and
mineral resources to produce the
basic materials to ensure sustainable
development. Egypt, for instance,
enjoys a global leading position as a
producer and processor of food and
agricultural processes that can meet
the growing needs of the populations.
The Jordan Valley is blessed with diversity of agricultural areas, bio-climatic and environmental
conditions, and a variety of agricultural products with high technical specifications, thanks to the
application of modern production technology. The innovative technologies, fertiliser components
and basic plastic products available in the UAE will be harnessed in agriculture and irrigation, with
recent cross-border transactions reflecting these sectors’ growing strength and influence.
The value of the agricultural and food products market in the three countries was estimated at
US$52 billion in 2019, with an annual growth rate of 11 percent. The value of imports such as wheat,
fodder, fruits, vegetables, meat and fish reached US$37 billion in 2019.
There are opportunities for promising projects to increase fertilizer production and agriculture,
especially wheat and corn, and feed production to meet the growth needs in the dairy, meat, poultry,
food processing and food packaging sectors.
The value of wheat and corn imports for the three countries reaches US$5.8 billion annually (21
million tons), which represents a great opportunity to increase production. Wheat and maize
increased from 16.5 million tons to about 30 million tons annually to meet demand, and the value of
meat and fish imports amounted to US$4.9 billion (1.8 million tons).
The three countries also have a high potential in fertilizer production, estimated at 7.6 million tons
annually, which offers an important platform for expansion projects in fertiliser production to meet
the increasing demand.
Pharmaceuticals The UAE, Egypt and Jordan are amongst the largest drug manufacturing centers
in the region, with more than 200 pharmaceutical factories and exports to 90 countries worth more

than US$1 billion. The value of the pharmaceutical market in these countries is estimated at US$9
billion, with an annual growth rate of 7 percent. The value of the pharmaceutical market of imports
reached US$5 billion in 2019.
The industry is characterised by skilled labor, innovation, and high regulatory and production
standards. The partnership will leverage the UAE’s chemical inputs, its manufacturing capabilities
and storage and distribution facilities. It will also capitalize on Egypt’s pharmaceutical mega projects
to build the largest pharma manufacturing center in MENA, in addition to leveraging Egypt’s
considerable market size and access to a large pool of trained doctors, pharmacists, engineers and
skilled technicians.
Jordan has a significant expertise in areas such as small molecule manufacturing, in addition to its
global competitiveness and reach, with its products reaching 90 countries across the globe. The
partnership also seeks to benefit from the increasing development of the UAE in the pharmaceutical
sector, which exports medicines to 48 countries.
There are opportunities for projects in medicines estimated at about US$5 billion, especially in the
field of producing alternative medicines and manufacturing active ingredients for medicines (raw
materials).
Clothing and Textiles The textile industry across the three countries is worth US$5 billion today.
Collectively, they supply some of the leading global brands with high-quality fabrics and finished
garments. All three countries bring inherent strengths across the value chain to create substantial
economic opportunities.
Egypt brings a vertically integrated textile sector, leveraging competitive labor cost and skills,
extensive fabric and garment facilities, a strategic location and exports equivalent to 300,000-plus
tons of cloth and apparel annually.
Jordan has a competitive export-oriented finished garment sector, benefitting from numerous free-
trade agreements with various countries including the US. The UAE is well positioned to provide
competitive raw materials to support the scaling up of fabric manufacturing in both Egypt and

Jordan. Additionally, it also has ready access to large regional markets, such as India with which it
recently signed a Comprehensive Economic Partnership Agreement.
The value of clothing and textile imports for the three countries amounts to about US$9 billion
annually, which provides significant opportunities for new projects, especially in the polyester
industry, whose imports amount to more than US$600 million.
Petrochemicals Petrochemicals are key enablers for the agriculture, food, fertilizer, textile,
pharmaceutical and other sectors. In 2019, the combined contribution of the petrochemical industry
to GDP in the UAE, Egypt and Jordan exceeded US$16 billion.
The three countries have access to a range of energy sources, especially natural gas, which is
estimated at about 278 trillion cubic feet, in addition to advanced capabilities in the field of
petrochemical production and derivatives, which are estimated at about 20 million tons per year.
This paves the way for expansion projects in the petrochemical sector and manufacturing industries
which could exceed US$21 billion.
Metals The three countries have abundant sources of metals that will make an important contribution
to value-added products. The value of the iron, aluminum, metal and steel market in the three
countries is estimated at US$13 billion, with an annual growth rate of 2 percent.
Egypt and Jordan also have large reserves of high-quality silica, which is the building block for many
manufacturing industries, providing a platform for higher value-added industries.
For its part, the UAE is one of the world's five largest aluminum producers, benefiting from its access
to bauxite ore, competitive and sustainable energy sources, and advanced technology. There are
opportunities in the metals sector (aluminum, iron, silica and potash) for projects worth US$23 billion
by using these materials to manufacture higher value products such as glass, electrical wires, car
components, solar panels and microelectronic chips.
Supreme Committee and Executive Committee Under the partnership, a tripartite supreme
committee, headed by the signing ministers, will be established. In addition, there will be an
executive committee composed of undersecretaries of the ministries and representatives from
relevant authorities and sectors. This committee will work with the private sector to increase
opportunities, and the participating nations will identify the stakeholders and the courses of action
required to achieve the objectives of these partnerships.
The committee will also review achieved progress, facilitate and supervise cooperation, and
consider next steps and new projects of the strategic economic partnership. It will accelerate the
introduction of economically viable opportunities and coordinate the pool of private-sector
participants.
Cooperative economic relations between the three countries are of great importance. For example,
the UAE Holding Company (ADQ) has invested in two Egyptian companies: MOPCO (US$266
million) and Abu Qir Fertilisers (US$391 million). ADQ also invested in the Commercial International
Bank Egypt with a value of US$987 million, and in the Alexandria Container and Cargo Handling
Company (US$186 million) with the aim of developing the river transport system and establishing
ports.
The UAE’s investments in Jordan exceed US$17 billion, and are targeted primarily at infrastructure,
transportation, tourism, agriculture, industry and renewable energy. Jordan's investment in the UAE
amounts to US$2 billion, mostly in the real estate sector. There is also a joint economic, commercial
and investment program between the UAE and Jordan that includes business incubators, non-oil
trade exchange, investment projects, and joint projects in financial technology, health and
agriculture.

Essential industrial exports The UAE's main exports are oil and gas, plastics, rubber, foodstuffs,
chemical industries, metal industries, and building materials. Egypt exports gold, gas, electrical
wiring, iron, textiles, and citrus fruits, while Jordan’s principal exports are phosphates, potassium
fertilizers, medicines and metals.
Strong economies and booming industries The economies and industries of the three countries
represent a unique model in the region. The industrial sector in Jordan is a key partner in the nation’s
economic plans. Work is being done to develop and implement economic policies that will contribute
to strengthening the Jordanian industrial sector, enabling it to access regional and international
markets and enhancing its contribution to sustainable economic development.
This sector contributes 25 percent to the GDP and ranks first among Arab countries, with its annual
production amounting to US$25 billion.
The industrial sector employs about 250,000 workers in 17,000 establishments. The exports of the
industrial sector amounted to 8 billion dollars, while industrial exports constitute 93 percent of the
total national exports. Jordanian exports reach more than 140 countries around the world, and the
average annual growth rate of the industrial sector’s exports during the past decade was 2.3
percent. Industry accounted for 80 percent of the flow of foreign direct investment to Jordan in the
past decade.
Jordan produces a variety of products within various manufacturing industries, the most important
of which are the pharmaceutical, chemical, clothing, engineering and food sectors. Jordan also has
the fifth largest reserves of phosphate in the world. It is the world's seventh largest producer of
potash, and has unique Dead Sea products.
The investment in silica sand in Jordan is an attractive opportunity due to its quality, purity, and
availability in abundant quantities. Silica is used in a number of industries such as glass, solar cells
and technological products. If technological investments are made available, it will contribute to
building advanced and competitive industries, given that Jordan's reserve of silica sand exceeds 20
billion tons.
The contribution of the industrial sector to the GDP in the UAE has increased to US$40.8 billion,
and industrial exports exceeded US$31.6 billion, an increase of more than 50 percent compared to
2019. More than 220 new industrial production units were licensed; US$11.3 billion was directed
back into the UAE market through the National In-Country Value Program. The UAE jumped five
places in the UNIDO Competitive Industrial Performance Index based on the contribution of the
industrial sector to the national GDP.
The UAE has an advanced industrial ecosystem with a diversified mix of energy, advanced digital
infrastructure, world-class information and communication technology. It also has a distinguished
geographical location that connects peoples with each other within eight hours of flying, and a
logistical infrastructure consisting of 10 civil airports and 12 ports with annual handling capacity of
80 million tons.
The UAE also ranks highly in terms of ease of doing business, quality of life, and political and
economic stability.
As for Egypt's industrial sector, the country’s GDP reached US$394.3 billion in 2021, while the
increase in GDP per capita totaled 6.8 percent. Egypt’s economy achieved 9 percent growth in the
first half of the 2021/2022 fiscal year. The value of industrial output stands at US$52.7 billion
(2020/2021), which represents around 15 percent of national GDP.

Oman: Mega hydrogen ammonia development signed
TradeArabia News Service
ACWA Power, OQ, Oman’s leading integrated energy group, and Air Products on Thursday signed
a joint development agreement (JDA) for a multi-billion-dollar investment in a world-scale green
hydrogen-based ammonia production facility powered by renewable energy in Oman.
The JDA signing follows a memorandum of understanding signed in December 2021.
Envisioned for Oman's Salalah Free Zone, the joint venture project will be based on proven, world-
class technology and include: the innovative integration of renewable power from solar, wind and
storage; production of hydrogen by electrolysis; production of nitrogen by air separation; and
production of green ammonia.
It is anticipated that the green hydrogen-based ammonia production facility will be equally owned
by the project partners.
Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi, said: “We are
delighted and honoured to work with the government of Oman to develop this multibillion-dollar
project, which would be similar to the world-scale green hydrogen project we are implementing with
our partners in NEOM in the Kingdom of Saudi Arabia.
We look forward to applying our know-how, technology and more than 60 years of experience in
hydrogen to help move this project forward and take another significant step in decarbonizing the
world.” OQ Chairman Mulham Al Jarf said: “We are proud of our partnership with ACWA Power
and Air Products.

This project positions OQ as an energy transition enabler, while playing on our strengths and
leveraging our expertise in the downstream chemicals business, particularly in Salalah where we
have extensive operations, and our demonstrated ability to off-take products and competitively
deliver them to global customers.
The project fits well with the Sultanates’ renewable energy strategy and fosters investments in
alternative energy resources, both of which contribute to Oman Vision 2040.”
ACWA Power Chairman Mohammad A Abunayyan said: “As a company that is driving the transition
towards a greener future through utilizing cutting-edge technologies and innovative solutions, we
are extremely proud to support the Government of Oman’s ambition to pursue decarbonization and
advance the development of green hydrogen, considered to be the fuel of the future.
Our investment in developing and building water desalination and power production plants in Oman
started in 2011, and we continue to expand our robust portfolio in the Sultanate. Utilizing our global
expertise, we were successfully able to launch Oman’s first utility-scale renewable energy project.
Oman continues to be a key market for ACWA Power for its potential, resources and location,
making it a tremendous enabler for the production of green hydrogen. The signing of the joint
development agreement is another milestone and signifies the continued trust being placed in
ACWA Power by all our partners in bringing this ambitious project to life.
“We aim to leverage our proven track record, knowledge and expertise in developing sustainable
global scale green projects including NEOM – a pioneering at-scale green hydrogen and ammonia
facility, and we are confident of leading green hydrogen development globally through partnership
and collaboration,” Abunayyan added.

India: Oilex announces Cambay field reserves re-classification
Source: Oilex
Oilex has announced an update with respect to the re-classification of Cambay gas and condensate
volumes to reserves and increase in resources.
Summary
A review of Oilex’s net reserve and resource position in the Cambay PSC by an independent
reserves auditor has resulted in the return of 206 BCF of gas and 8 million barrels of condensate to
the 2P Reserves category from Contingent Resources.
Oilex’s participating interest in the reserves and resources has increased from 45% to 100%
following its purchase of GSPC’s share of the project.
The revised reserve and resource position showing the re-allocation from Contingent Resource
category to Reserves and the increase in volumes from the GSPC acquisition is shown in Tables 1
and 2:
Background
In April 2015, the Company tabled a Resource Report on the Cambay Field Eocene gas and
condensate reservoir which is the same reservoir that hosts current oil and gas production and that
is the focus of upcoming re-frac of the C-77H well as reported in recent announcements. The
resource report was prepared by independent oil and gas advisors RISC and allocated recoverable
gas and condensate volumes across Reserve, Contingent Resources and Prospective Resources
categories. In June 2016, due to changes in economic assumptions specifically a fall in world oil
and gas prices and the then impasse with GSPC deferring field development activities, the
Reserves component of the overall gas and condensate volumes was re-classified to Contingent
Resources while the aggregate Reserve and Resource volumes remained unchanged.
RISC has again reviewed the recent material changes to the circumstances surrounding the
Cambay project which remove the previous impediments to progress on the project development.
These changes include the following:

 Grant of a PSC term extension to September 2029 by the Indian government
 Approval of a Field Development Plan for the Eocene reservoir by the Indian regulator (the Directorate
General of Hydrocarbons)
 Resolution of the joint venture impasse through Oilex’s purchase of GSPC’s participating interest
taking Oilex’s participating interest to 100%
 Recommencement of gas and condensate production from the Eocene reservoir with delivery of gas
to buyers under a new gas sales agreement
 Issue of new Environmental Clearances by the Indian government
 Oilex’s commitment to the required work program to develop the resources including advanced
planning and contracting for a re-frac of the C-77H well planned to commence in July 2022
 Improvements in economic factors including the high current global and Indian oil and gas prices and
the high demand for petroleum products in India.

U.S: Gasoline prices highest since 2012, near record levels
U.S. Energy Information Administration, Gasoline and Diesel Fuel Update
On May 23, heading into this Memorial Day weekend, the U.S. average retail price of regular
gasoline was $4.59 per gallon (gal), the highest inflation-adjusted (real) price since 2012. On a
nominal basis, this price is the all-time highest price for gasoline recorded in our weekly Gasoline
and Diesel Fuel Update, which dates back to 1990.
The high price of gasoline is currently driven by several factors, including the price of crude oil, the
effects of Russia’s full-scale invasion of Ukraine, and rising U.S. gasoline demand outpacing refinery runs.
Note: Real prices were calculated using the U.S. Bureau of Labor Statistics Consumer Price Index and based
on the methodology described in our Short-Term Energy Outlook Real Prices Viewer.
The price of Brent crude oil, the largest component of the gasoline price, has been rising since April
of 2020. The rising oil price has been mostly due to global petroleum demand increasing faster than
production.
Several OPEC member countries have been unable to increase production to meet previously
agreed targets. In the United States, relatively low returns (among several other factors) have led
to pressure from investors to maintain capital discipline, resulting in production restraint despite high
oil prices.
Gasoline demand in the United States is growing faster than gasoline production, which has reduced
gasoline inventories. Gasoline demand has increased significantly since April 2020, when it fell 38%
below 2019 levels; from March through May 20, 2022, gasoline has averaged only about 6% less
than 2019 levels.
Total refining capacity has decreased since 2020 because of several refinery closures and
conversions. Gross inputs into refineries are only slightly above the five-year average even though

refinery utilization is at the top of the five-year range, which indicates that refineries may be running
closer to maximum capacity utilization than gross inputs alone would indicate. The faster increase
in gasoline demand compared with production has led to inventories draws, and U.S. gasoline
inventories are currently 8% below the five-year (2017–21) average for this time of year.
The Gulf Coast has more than half of U.S. refining capacity and produces more gasoline than it
consumes. It generally has the lowest retail gasoline prices in the country. West Coast retail gasoline
prices are typically the highest in the country because of the region's tight supply and demand
balance, isolation from additional supply sources, and gasoline specifications that are more costly
to meet.
Retail gasoline prices across the United States were above $4.00/gal heading into the Memorial
Day weekend. On May 23, prices on the Gulf Coast were $4.16/gal, the lowest regional price, and
prices on the West Coast were $5.36/gal, the highest regional price. AAA forecasts that despite the
high gasoline prices, 34.9 million people will travel 50 miles or more from home this Memorial Day,
up 5% from 2021 but down 7% from 2019.

NewBase May 30 -2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices climb to over $120/B ahead of EU meeting on Russia sanctions
Reuters + NewBase
Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see
whether the European Union would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 47 cents, or 0.4%,
at $119.90 a barrel at 0659 GMT, after rising as high as $120.50 earlier in the session. The August
Brent contract , which is more active, rose 61 cents, or 0.5%, to $116.17 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 72 cents, or 0.6%, to $115.79 a barrel,
extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against
Russia for its invasion of Ukraine, actions Moscow calls a "special military operation".
Oil price special
coverage

"If we look at the recent price movement, it seems that market has factored in that the European
Union may reach a deal on some form of restrictions on Russian crude," said Madhavi Mehta,
commodity research analyst at Kotak Securities.
"We may see further upside only if it is a complete ban. Any watered-down deal or one which
includes exemptions may not have much positive impact," she added.
EU governments failed to agree on an embargo on Russian oil on Sunday but will continue talks on
a deal to ban seaborne deliveries of Russian oil while allowing deliveries by pipeline, ahead of the
summit on Monday afternoon, officials said.
"It's still quite difficult for the European group to reduce its energy dependency on Russia in the near
term. That said, an immediate import ban is less possible, and the demands may keep oil prices
afloat in the near term," said Leona Liu, analyst at Singapore-based DailyFX.
Any further ban on Russian oil would tighten a crude market already strained for supply amid rising
demand for gasoline, diesel and jet fuel ahead of the peak summer demand season in the United
States and Europe.
Sky-high refining margins for diesel and gasoline in Europe and the United States have sent prices
for some types of physical crude oil to record highs, according to traders. read more
Underscoring market tightness, the Organization of the Petroleum Exporting Countries and allies
including Russia, together called OPEC+, are set to rebuff Western calls to speed up increases in
their additions to oil output when they meet on Thursday. They will stick to existing plans to add
432,000 barrels per day in July, six OPEC+ sources told Reuters.
The oil market was also on edge after Iran on Friday said its navy had seized two Greek oil tankers
in retaliation for the confiscation of Iranian oil by the United States from a tanker held off the Greek
coast.
Crude prices are also finding support from a weaker U.S. dollar, and China's easing of virus related
restrictions, said Sunil Katke, head of commodities retail business at Kotak Securities.
A weaker dollar makes oil less expensive for importers holding other currencies.

NewBase Special Coverage
The Energy world –May -01 -2022
CLEAN ENERGY
Angola’s Energy Vision 2025 to Build a Clean, Sustainable Future
Source: Angola’s Ministry of Energy and Water, 2019
Angola has some of the most ambitious renewable energy plans in the world. Harnessing the
thunderous waters of the Kwanza River, the abundant sunshine of Benguela, the onshore wind of
Namibe and the biomass generated by the vast farmlands of Malanje, Angola is transforming into a
new kind of energy powerhouse.
Known around the world as a
leading producer of oil, the
southwest African nation is
repositioning its economy to meet
its future energy needs with clean
and renewable sources. In recent
years, it has quadrupled production
of hydropower, but this only
amounts to 20% of the estimated
potential of 18,200 MW, among the
highest in Africa.
The government has identified 100
locations for micro-hydropower
stations, and aims to raise Angola’s
electrification rate from the current
42% to 60% by 2025.
The clean energy investment
opportunity in Angola is clear. “We
need to take more advantage of
our hydroelectric potential,” says
António Henriques Da Silva,
Executive Chairman of AIPEX,
Angola’s agency for private
investment and export promotion.
The most stunning of Angola’s
water-based energy resources is
the Laúca hydropower project,
which spans high cliffs overlooking
the Kwanza, where the river
crosses the provincial border
between Cuanza Sul and Malanje.
The project first produced power in 2019 and now has a capacity of more than 2,000 MW, making
it the second-largest hydropower plant in Africa.
The Angolan government wants renewable energy to account for 70% of its fuel mix by 2025. “We
have a strongly hydro energy mix as about 60% of our energy is produced from water sources, and
we have huge untapped reserves of hydroelectric power,” says Giza Gaspar Martins, National

Director for Environment and Climate Action at Angola’s Ministry of Culture, Tourism and
Environment.
“We have huge untapped reserves of hydroelectric power. Hydropower in Angola is everywhere.”
National Director, Environment and Climate Action, Ministry of Culture, Tourism and Environment
In addition to its existing network of hydropower plants and the identified micro-hydro locations,
Angola is building another giant project, the Caculo Cabaça hydropower plant, which will be even
larger than Laúca. “Hydropower in Angola is everywhere,” says Martins.
So is sun and wind. The development of a 188 MW photovoltaic solar plant at Biópio in Benguela
Province is the largest project of its kind in sub-Saharan Africa. Martins also notes the “significant

potential for wind power” in Namibe Province and the Central Highlands region of the country. Land
is another abundance natural resource in Angola.
Twice the size of France and with only 15% of its arable land under cultivation, the country has the
potential to generate clean biomass energy as a biproduct of sugar cane production. Biocom, an
agro-industrial project based in Malanje Province, is producing electricity, as well as ethanol and
high-quality sugar, from sugar cane pulp, and the project has created thousands of jobs.
SUSTAINABLE FUTURE
Sugar Rush
On 28,000 hectares in Malanje
Province—Angola’s
breadbasket— cutting-edge
technology is used to turn sugar
cane and its fiber (bagasse) into
three valuable products: sugar,
ethanol and electricity.
“Sugar cane captures energy from
the sun through photosynthesis, so
we can say our field is a giant solar
panel,” says Luís Bagorro Júnior,
Deputy General Director of
Biocom, an agro-industrial project
that has been harvesting sugar cane since 2015.
While Angola has historically been a significant producer of oil and gas, with current oil production
at 1.2 million barrels per day, this sector has been almost entirely focused on export. Angola,
Martins, points out, is “a country that, as regards its energy consumption, does not require the use
of fossil fuels. Her nature offers all the energy potential required to supply its economy.” By
committing itself to renewable energy sources, Angola is not only diversifying its economy, but
taking a leading role in the fight against climate change.
At COP26, President Lourenço pledged to increase Angola’s use of renewable energy to 70% by
2025
Martins first became involved in this effort in 2009 as an Angolan representative on sustainable
economic development at the COP15 climate change summit in Copenhagen, and he chaired a
climate change group representing “least developed countries” at the UN and subsequent COP
summits.
In October 2021, Angola introduced its National Strategy for Climate Change, prioritizing the
implementation of a low-carbon development policy to eradicate poverty. “One of the challenges we
face is to eliminate the correlation between economic growth and the emission of greenhouse
gases,” says Martins.
“Most of our emissions derive from the production of oil, but this oil is not consumed in Angola.” If
Angola is to realize its green potential and diversify its economy at a pace that meets the
expectations of its youthful population (75% of which is under 25), it will need private investment.
President João Lourenço’s government has implemented reforms that have opened markets and
allow investors easy, unrestricted access. The government has “an important role” in introducing

these investment opportunities, says Da Silva, “so that we are able to grow and enable industries
to rely on much cleaner energy sources.”
At COP26 in November, President Lourenço stated that Angola would increase its renewable
energy capacity (including hydropower) to 70% by 2025, one of the highest percentages in the world
in terms of clean energy use. The renewal of Angola is underway.
Making Global Connections
Connectivity is a priority of the Angolan government, with substantial investment being made in the
country’s transport infrastructure to create an integrated grid of road and rail networks, airports and
deepwater ports.
This logistics system is
the key to unlocking
Angola’s potential as a
trading nation and a
transport hub for the
whole of southern Africa.
Blessed with one of the
most extensive coastlines
in Africa, Angola also
possesses some of the
continent’s most well-
established railways.
This makes it perfectly
positioned to transport the
valuable natural
resources found not only within its own borders, but also in landlocked and mineral-rich neighboring
countries, including Zambia and the Democratic Republic of Congo (DRC).
At the heart of this travel grid is the extensive Benguela Railway, which connects the Atlantic Ocean
with the mineral deposits of Central Africa. The railway has recently been modernized with a
government investment of $1.9 billion, and Angola is offering incentives to private investors to
support an extension of the 1,344-kilometer (835-mile) railway to the border with Zambia and its
famous copper belt.
“The expansion potential is enormous,” says Otoniel Mario de Almeida Manuel, Technical Executive
Manager of the Benguela Railway. “Railways are the agents of economic growth and development.”
The rail extension is intended to facilitate the global export of copper and cobalt produced in Zambia
and DRC via Angola’s Atlantic port of Lobito.
Currently, these materials are mostly transported via Durban, South Africa, and Dar-Es-Salaam,
Tanzania—journeys four times as long as those taken on the “Lobito Corridor,” as the Benguela
Railway route is known.
“From the geopolitical and geo-strategic viewpoints, the Lobito Corridor is the shortest route,” says
Manuel. The Benguela Railway already transports copper and manganese from Congo and carries
sulfur, sodium and construction materials in the opposite direction for use in industry. It is benefiting
from a modernization program that has enabled the acquisition of 50 locomotives from General
Electric, new passenger cars and cargo wagons, and the construction of station buildings and
installation of modern signaling and telecommunications systems.

Manuel notes that Rovos Rail, a luxury travel company based in South Africa, has partnered with
the Benguela Railway and given it “their quality seal.” Transport integration is key. The Lobito
Corridor, with four airports along its route, is “an array of infrastructures, with railways, roads,
airports and seaports that connect several regions,” making Angola “a logistics and transport center
for the region of Southern Africa,” says Manuel.
Building global supply chains
António Henriques da Silva, Executive Chairman Angola’s Agency for Private Investment and
Export Promotion (AIPEX), believes that the country’s 1,600-kilometer (1,000-mile) coastline can
enable it to transform the African economy by being the international gateway for landlocked nations
such as DRC, Zambia and Botswana.
“We are going to be able to create the value chains that will help us to grow our economy, but also
to grow the economies of other countries,” he says. These advanced supply chains “will enable
Africa as a whole and Angola, in particular, to play a much stronger role in the global economy.”
Angola’s government has created a development plan designed to support “multimodal
transportation through the joining of ports, railways and roads,” explains Ricardo Viegas de Abreu,
Minister of Transport.
Angola’s advantage is its strategic position with an Atlantic platform. Its six major ports are benefiting
from government-backed modernization and the country is looking to introduce private operators
with international credentials.
“We have been investing not only in infrastructure, improving ports’ capacity and operational
conditions, we have also invested in operational standards,” says de Abreu. Angolan ports comply
with International Maritime Organization conventions.

As Angola’s transportation ambitions are on their way to being realized, the country has partnered
with the International Civil Aviation Organization and introduced a new airspace management
program to increase safety, capacity and efficiency. In the capital, Luanda, an integrated ticketing
system enables customers to take a bus, train or ferry using a single ticket.
“It will bring a great improvement to urban mobility,” says de Abreu. Angola is working with experts
from the Netherlands to maximize supply chain efficiency in the transport of agricultural goods, he
says, so “our products can be placed on shelves in Angola and abroad in good condition for
consumption.”
Angola’s growing transport sector currently contributes 12% to GDP, and de Abreu asserts that it
can be the game changer for the entire Southern African economy. Echoing Manuel, he points out
that: “This is a sector that galvanizes and catalyzes economic development.”
In terms of governance, President João Lourenço “played a key role” in introducing high standards
for eliminating corruption. “As a result,” said Da Silva, “we are seeing that Angola is being perceived
as somewhere that not only mentioned that it wanted to tackle corruption but came up with concrete
examples of how we dealt with it in a very short period of time.”
In January, Transparency International reported that Angola has doubled its Corruption Perceptions
Index (CPI) score and praised its “significant improvement” since the 2017 election of President
Lourenço “who has taken steps to crack down on corruption.”
Da Silva also told the Bloomberg audience that Angola’s economic plan is based on “what we can
achieve for future generations” by lifting people out of poverty through jobs growth. “Employment
creation is one of the standards of ESG that we want to have in place.”

NewBase Energy News 30 May 2022 - Issue No. 1518 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.

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