NewBase April 06-2022 Energy News issue - 1502 by Khaled Al Awadi.pdf

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NewBase Energy News 07 April 2022 No. 1502 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 ‘needs over $671bn (AED2.5) trillion to transition to net-zero’
TradeArabia News Service + NewBase
The UAE will require AED2.5 trillion ($671.1 billion) to transition to net-zero (the balance between
the amount of greenhouse gas produced and the amount removed from the atmosphere), according
to a new research report by Standard Chartered which looks at the transition financing gap for
emerging markets and how to close it.
The study titled “Just in Time: Financing a just transition to net zero” found that:
 If the finance, the UAE needs to transition to net zero, is provided by developed markets,
UAE household spending could increase by around AED 2 trillion ($551.2 billion) compared
to self-financing
 If emerging markets fund their own transition, without the contribution of developed markets,
household consumption in these markets could fall by 5 per cent on average each year.
The transition finance gap
While the UAE requires investment of around AED2.5 trillion ($671.1 billion) to transition to net zero,
the report reveals that emerging markets as a whole need to invest an additional AED350 trillion
($94.8 trillion) – a sum higher than annual global GDP – to transition to net zero in time to meet

long-term global warming targets. This is on top of the capital
already allocated by governments under their current climate
policies.
Private investors can contribute over AED300 trillion ($83
trillion) of the AED350 trillion ($94.8 trillion) that is required –
underscoring the urgent need for financial institutions to fulfil
green and transition finance pledges.
However, the world’s top 300 investment firms with total
assets under management of more than $50 trillion, have just 2 per cent, 3 per cent and 5 per cent
of their investments in the Middle East, Africa and South America, respectively.
The report argues that to transition in the fairest way possible, greater collaboration is required in
strategy, policy, and financing. More importantly, banks need to live up to the pledges made during
COP26 if ordinary households are to avoid bearing the costs of their market’s transition to net-zero.
Closing the transition finance gap
The report looks at two pathways to closing the emerging market transition finance gap, self-
financing by emerging markets and developed market financing, where capital is provided through
grants and loans.
Exclusive emerging market self-financing would lead to higher taxes and an increase in government
borrowing, meaning that families in emerging markets, including the UAE, will have less to spend
on their everyday needs. However, developed market financing has the opposite effect.
However, developed market financing could see emerging market household spending increase by
around AED6.25 trillion ($1.7 trillion) on average each year (compared to self-financing) and would
also stimulate global growth – GDP could be around AED400 trillion ($108.3 trillion) higher
cumulatively between now and 2060 if developed markets finance the transition. Emerging markets
being able to reach net-zero without hampering their growth or prosperity would represent a just
transition.
Rola Abu Manneh, Chief Executive Officer, Standard Chartered UAE, said: “The UAE is well
positioned to capitalise on the major economic opportunities offered by the path to net zero.
Reaching this objective would require a strong focus on ensuring economic prosperity throughout
the transition process in addition to a great deal of investment.”
She added: “The public and financial sectors need to come together to help facilitate the flow of
investment into Net Zero. Failure to deliver transition finance could mean climate goals are missed,
therefore triggering an environmental catastrophe.”
Approach to net zero
Standard Chartered has committed to reaching net zero in our financed emissions by 2050, with
interim targets for the most carbon-intensive sectors by 2030.
“We plan to mobilise more than AED1.1 trillion ($300 billion) in green and transition finance by 2030
to support the transition to net zero in the markets we can home, supported by our own Transition
Finance Framework,” a Standard Chartered statement said
“We are accelerating new solutions, including through a new dedicated Transition Acceleration
Team to support clients in high-emitting sectors.”

Oman's MDO contract for airborne survey of mining areas
Oman Daily Observer
State-owned mining and mineral processing enterprise Minerals Development Oman (MDO) has
signed a contract with Canada-based Sander Geophysics Ltd (SGL) to conduct airborne
geophysical surveys covering MDO’s concession areas of approximately 21,480 square kilometres.
The two-year-long survey is scheduled to start next month.
Under the contract, SGL commits to conducting a number of airborne geophysical surveys using
fixed-wing aircraft. The purpose of the survey is to obtain geophysical data including magnetic,
radiometric, electromagnetic, and gravity.
These geophysical surveys are crucial to enhance the geological knowledge at surface and depth
leading to better target mineral anomalies which will be further tested to identify mineral ores.
On this occasion, MDO's CEO Eng Nasser Saif al Maqbali said: “This strategic agreement aims to
build a comprehensive geological database for the Company's concession areas. It is an important
step towards the company's efforts to explore strategic minerals in the Sultanate of Oman, which
will be followed by a number of
studies, geochemical surveys, and
exploratory drilling.
We hope to be able to identify metallic
areas such as copper, chromite, and
other strategic minerals which will be
eventually mined.”
He added: " These geophysical
surveys are playing a major role in
complementing MDO efforts to attract
direct foreign investors and secure
mining partnerships. The survey
results will assist us to provide
accurate information about mining
potential in Oman and building a
strong mining portfolio.
Furthermore, it will serve as an
important future reference for
researchers and those interested in
the fields of geology and mining. We
are conducting these studies in close
cooperation with the Ministry of
Energy and Minerals, and several
other Governmental Authorities, their
continuous support is highly valued.”
SGL Chairman commented: “On
behalf of Sander Geophysics Ltd
(SGL), we would like to express our
great pleasure at being selected to
participate in the MDO airborne
geophysical survey over seven

concession areas in the Sultanate of Oman.
SGL is very experienced in this type of project, having performed similar airborne geophysical
surveys worldwide for over sixty years. Our experience and expertise will ensure the project meets
the highest standards in safety, technical quality, and efficiency.
Providing training to Omani geoscientists is an important component of the project, and we
anticipate a rewarding and effective involvement with our Omani counterparts throughout the
project.
We look forward to providing final data, maps, and interpretative products that will be valuable for
the development of the Omani mining sector. SGL is very proud to be part of this important project,
and we look forward to a safe and successful survey.”
Last month, MDO signed an agreement for 12 concession areas with the Ministry of Energy and
Minerals (MoEM) in line with recent government directions aimed at promoting the mining sector as
a tributary of national economic growth.
Minerals Development Oman was established in 2017 with a clear strategic vision to invest in the
mining sector in the Sultanate of Oman and to increase its contribution to the growth of the economic
and social sectors by creating job opportunities and building local competencies, in addition to
supporting small businesses and developing the in-country value.

Saudi: Work starts at world's largest green hydrogen project in
NEOM with a $900m EPC contract … ARAB NEWS

Saudi Arabia's ACWA Power and its partners kicked off the construction work at the world's largest
green hydrogen project in NEOM.
The partners announced a $900 million contract for the engineering, procurement and construction
of the project, according to a bourse filing by ACWA Power.
Paddy Padmanathan, CEO of ACWA Power, told Arab News in an interview last year that the
project will be a game-changer for the Kingdom and the company as it will help ACWA expand into
the green hydrogen business once it’s completed.
The CEO of the Saudi-listed company also said in another interview that he expected to close
financing for the renewable project in the second half of 2022.
The plant will need around 4.3 GW of clean energy to power it, and ACWA plans to use solar during
the day and wind at night to eliminate the need for batteries and expensive storage solutions, he
added.
In July 2020, Air Products, together with ACWA Power and NEOM, announced an agreement for a
$5 billion world-scale green hydrogen-based ammonia production facility powered by renewable
energy.
Last month, NEOM launched a subsidiary company called ENOWA to will lead the development of
its sustainable energy and water systems.
Work to develop these utilities has begun to provide the critical infrastructure for NEOM’s key
projects, including THE LINE, its revolutionary urban development; OXAGON, its reimagined
industrial city, actively seeking tenants for its manufacturing hub, and supply of energy and water is
essential; and TROJENA, its sustainable mountain tourism destination.

U.S EIA explores effects of not building future interstate natural
gas pipelines Source: U.S. Energy Information Administration, Annual Energy Outlook 2022 (AEO2022)
In our Annual Energy Outlook 2022 (AEO2022), Issues in Focus: Exploration of the No Interstate
Natural Gas Pipeline Builds, we analyze the effects on the energy market if no additional U.S.
natural gas pipeline capacity is built between 2024 and 2050.
In the No Interstate Natural Gas Pipeline Builds case, we project 5% less natural gas production
and 4% less natural gas consumption in 2050 compared with the Reference case. We also project
that the Henry Hub spot price in 2050 would be 11% higher in that case than in the Reference case.
Restricting U.S. interstate pipeline builds in our projection results in 7.4 billion cubic feet per day
(Bcf/d) less interregional capacity in 2050 than in the Reference case projection, which, for example,
limits the amount of natural gas that can flow from the Appalachia production region to demand
areas such as the Midwest.
The higher natural gas prices that result from capacity constraints primarily affect natural gas
consumption in the U.S. electric power sector, which is more price-sensitive than the residential,
commercial, and industrial sectors.
In the No Interstate Natural Gas Pipeline Builds case, we project 11% less natural gas-fired
generation in the United States during 2050 than in the Reference case. Higher natural gas prices
make natural gas less economical for electric power generation compared with alternative sources,
such as coal or renewables.

We project that natural gas’s share of U.S. electricity generation would fall from 34% in 2050 in the
Reference Case to 31% in the No Interstate Natural Gas Pipeline Builds case. To make up for less
natural gas-fired generation in the No Interstate Natural Gas Pipeline Builds case, electricity
generation from renewables, coal, and nuclear sources increase.
We project that restricting interstate U.S. natural gas pipeline capacity would only slightly lower
energy-related carbon dioxide (CO2) emissions in the United States relative to the Reference case.
Total CO2 from all fuel sources in 2050 are 4% lower in the No Interstate Natural Gas Pipeline
Builds case than in the Reference case.
The relatively small effect on CO2 emissions, despite the decline in natural gas consumption and
growth in electric power generation from renewable sources, is due to our forecast of increased
coal-fired power generation, which would be more carbon intensive than the natural gas-fired
generation it displaces.

U.S:Prices for California’s emissions credits increase in 2022 auction
Source: Graph by the U.S. Energy Information Administration, based on California Air Resources Board data
In its first quarterly auction of 2022, emissions credits in the joint California-Quebec allowance
auction sold for $29.15 per metric ton of carbon dioxide equivalent, or nearly $10 per metric ton
more than the minimum price for allowances.
Emissions credits sold in this market can be used to comply with California’s cap-and-trade program,
which covers nearly all sources of emissions within the state, including electric utilities, industrial
facilities, and distributors of natural gas and gasoline.
Note: Prices are for the current vintage allowances sold in each auction.
Since 2012, most of the auctions have sold emissions credits at prices near the auction reserve
price, the minimum price for allowances in each auction.

Under the cap-and-trade program, the steadily declining cap on emissions helps California’s public
and private energy producers to meet carbon dioxide emissions reduction goals set by the state
legislature. Actual emissions have been below the cap in each of the compliance years through
2020, the latest data published.
Source: Graph by the U.S. Energy Information Administration, based on California Air Resources Board data
Proceeds from the sale of allowances in California are split between the state and utilities that use
the revenue to offset compliance costs. In the most recent auction, the California Air Resources
Board collected more than $1.5 billion in revenue: 63% of the proceeds will go to the state, and 37%
will go to public- and investor-owned utilities.
To comply with the cap, the program requires all facilities to submit emissions allowance permits for
each metric ton of emissions
they produce.
The California cap-and-trade
program is one of two major
cap-and-trade programs for
greenhouse gas emissions in
the United States. The
Regional Greenhouse Gas
Initiative has been in effect in
the northeastern United States
since 2009, but it only applies
to the electric power sector.

NewBase April 07-2022 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises as new Russia sanctions outweigh demand worries
Reuters + NewBase
Oil futures rose on Wednesday, paring early losses, as the threat of new sanctions on Russia raised
supply concerns, countering fears of weaker demand following a build in U.S. crude stockpiles and
Shanghai’s extended lockdown.
Brent crude futures were up $1.47, or 1.38%, at $108.11 a barrel as of 10.16 GMT, having fallen to
$105.06 earlier in the session. U.S. West Texas Intermediate futures climbed $1.62, or 1.62%, to
$103.62 a barrel, after dipping to as low as $103.17 in early trade.
Oil price special
coverage

The United States and its allies on Wednesday prepared new sanctions on Moscow over civilian
killings in northern Ukraine, which President Volodymyr Zelenskiy described as “war crimes.” Russia
denied targeting civilians.
“With allegations ramping up and new Western sanctions against Russia in the pipeline, further
Russian economic retaliation looks inevitable,” said Sophie Lund-Yates, lead equity analyst at
Hargreaves Lansdown
“These concerns have no doubt fed into the oil price trending higher, with volatility expected to
continue as the geopolitical situation unfolds.”
Proposed EU sanctions, which the bloc’s 27 member states must approve, would ban buying
Russian coal and prevent Russian ships from entering EU ports.
The head of the EU’s executive Ursula von der Leyen said the bloc was working on additional
sanctions, including on oil imports.
Britain also urged G7 and NATO nations to agree a timetable to phase out oil and gas imports from
Russia.
The growing supply concerns erased earlier price falls due to a stronger dollar, which makes oil
more expensive for holders of other currencies, and a surprise build in U.S. crude stockpiles. [API/S]
The dollar edged up to its highest level in nearly two years on Wednesday after jumping overnight
on more hawkish comments from a Federal Reserve official.
Demand worries also mounted after authorities in top oil importer China extended a lockdown in
Shanghai to cover all of the financial centre’s 26 million people.
Meanwhile, member states of the International Energy Agency (IEA) were still discussing how much
oil they would together release from storage to cool markets, three sources told Reuters, adding
that an announcement was expected in coming days.

NewBase Special Coverage
The Energy world –April -01 -2022
CLEAN ENERGY
Who is buying Russian crude oil and who has stopped
Reuters + NewBase
Australia, Britain, Canada and the United States have imposed outright bans on Russian
oil purchases following Moscow's invasion of Ukraine, but the European Union remains
divided.
The bloc's 27 members have been unable to agree on an embargo, with Germany
warning against hasty steps that could push the economy into recession, and, some
countries, such as Hungary, opposing any bans.
Germany, however, aims to phase out Russian oil imports by the end of this year, officials said, as
does Poland.
Many buyers in Europe are shunning Russian crude voluntarily to avoid reputational
damage or possible legal difficulties.
Meanwhile, India and China, which have refused to condemn Russia's actions, continue
to buy Russian crude.
Lured by steep discounts following Western sanctions on Russian entities, India has
bought at least 13 million barrels of Russian crude oil since late February. That
compared with some 16 million barrels for the whole of 2021, data compiled by Reuters
shows.
Below are current and former buyers of Russian crude (in alphabetical order):
CURRENT BUYERS
HELLENIC PETROLEUM (HEPr.AT)
Greece's biggest oil refiner relies on Russian crude for about 15% of its intake. The
company earlier this month secured additional supplies from Saudi Arabia.

HINDUSTAN PETROLEUM (HPCL.NS),
India's state refiner bought 2 million barrels of Russian Urals for May loading, according
to trading sources last week.
INDIAN OIL CORP (IOC.NS)
India's top refiner on March 23 bought 3 million barrels of Urals for May delivery from
Vitol, trade sources said. This is the second purchase of Urals by IOC since Russia
invaded Ukraine on Feb. 24.
The company has a contract with Rosneft that gives it an option to buy up to 2 million
tonnes, equivalent to about 15 million barrels, of Urals crude in 2022.
ISAB
Italy's largest refinery, owned by Lukoil-controlled (LKOH.MM) Swiss-based Litasco SA,
processes Russian and non-Russian crudes.
LEUNA
The land-locked Leuna refinery in eastern Germany, majority-owned by
TotalEnergies (TTEF.PA), is also fed Russian crude by the Druzhba pipeline.
MIRO
Russian crude continues to account for about 14% of the intake at Germany's largest
refinery, Miro, which is 24% owned by Rosneft (ROSN.MM). .
MOL (MOLB.BU)
The Hungarian oil group, which operates three refineries in Croatia, Hungary and Slovakia,
continues to buy Russian crude via Druzhba pipeline, as well as refined products, a company source
told Reuters.
Hungary is opposed to sanctions on Russian oil and gas.
NAYARA ENERGY
Indian private refiner, part-owned by Russia's Rosneft (ROSN.MM), has purchased
Russian oil after a gap of a year, buying about 1.8 million barrels of Urals from trader
Trafigura.
NEFTOCHIM BURGAS
A Bulgarian refinery, owned by Russia's Lukoil (LKOH.MM), and with Russian crude
accounting for about 60% of its intake, continues to refine Russian crude.
PCK SCHWEDT
Germany's PCK Schwedt refinery, 54% owned by Rosneft (ROSN.MM), receives crude
oil via the Druzhba pipeline.
PERTAMINA
Indonesian state energy firm PT Pertamina (PERTM.UL) is considering buying crude oil
from Russia as it seeks oil for a newly revamped refinery.

PKN Orlen (PKN.WA)
Poland's largest refiner has stopped buying Russian crude on the spot market, switching
to North Sea oil, but is still buying Urals under previously signed contracts which expire
by the end of this year or later.
The company, which operates refineries in Lithuania, Poland and the Czech Republic,
saw its profit from refining surge in March thanks to the discount it pays for Russian oil.
ROTTERDAM REFINERY
Exxon Mobil (XOM.N) declined to comment on whether its Dutch refinery in Rotterdam
was using Russian crude oil.
ZEELAND REFINERY
The Dutch refinery, 45% owned by Lukoil, declined to comment on whether it was using
Russian crude oil.
FORMER BUYERS
BP (BP.L)
The British oil major, which is abandoning its stake in Rosneft, will not enter new deals
with Russian entities for loading at Russian ports, unless "essential for ensuring security
of supplies".
ENEOS
Japan's biggest refiner (5020.T) has stopped buying crude oil from Russia, while some
cargoes signed under previous agreements will arrive in Japan until around April.
ENI (ENI.MI)
The energy group, 30.3% owned by the Italian government, is suspending purchases of
Russian oil.
No Russian crude will be used at Germany's Bayernoil refinery, in which Eni and Rosneft
have stakes.
EQUINOR (EQNR.OL)
Norway's majority state-owned energy firm has stopped trading Russian oil as it winds
down its operations in the country.
GALP (GALP.LS)
The Portuguese oil and gas company has suspended all new purchases of petroleum
products from Russia or Russian companies.
GLENCORE (GLEN.L)

The global mining and trading firm, which holds 0.57% stake in Rosneft, said it would
continue to honour its obligations under previously signed contracts, but would "not enter
into any new trading business in respect of Russian origin commodities unless directed
by the relevant government authorities".
NESTE (NESTE.HE)
The Finnish refiner has Russian oil contracts until the end of the year, but is not making
any new supply agreements.
PREEM
Sweden's largest refiner, owned by Saudi billionaire Mohammed Hussein al-Amoudi, has
"paused" new orders of Russian crude, which accounted for around 7% of its purchases,
replacing them with North Sea barrels.
REPSOL (REP.MC)
The Spanish company has stopped buying Russian crude oil in the spot market.
SHELL (SHEL.L)
The world's largest petroleum trader will stop buying Russian crude and phase out its
involvement in all Russian hydrocarbons.
TOTALENERGIES
The French oil major (TTEF.PA) will not sign new contracts, promising to stop buying
Russian crude oil and petroleum products by the end of this year.
VARO ENERGY
The Swiss refiner, which owns 51.4% in Germany's Bayernoil refinery, said it did not plan
to enter into new deals to buy Russian crude.

NewBase Energy News 06 April 2022 - Issue No. 1502 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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