New base energy news 25 november 2020 issue no-1389 by senior editor khaled al awadi -_compressed

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NewBase Energy News 25 November 2020 - Issue No. 1389 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: Abu Dhabi approves ADNOC $B 122, report oil discovery
WAM + Reuters + NewBase
Abu Dhabi’s Supreme Petroleum Council (SPC) approved on Sunday capital expenditure for Abu
Dhabi National Oil Company (ADNOC) of 448 billion dirhams ($121.97 billion) between 2021 and
2025, state news agency WAM reported.
The SPC also approved the awarding of a second round of exploration blocks and announced the
discovery of 2 billion barrels of conventional oil reserves and 22 billion barrels of unconventional oil
reserves.
Abu Dhabi’s crown prince also directed ADNOC to explore and pursue potential opportunities in
hydrogen, Also The Supreme Petroleum Council (SPC) announced today the discovery of
substantial recoverable unconventional oil resources located onshore, estimated at 22 billion stock
tank barrels (STB), and an increase in conventional oil reserves of 2 billion STB in the Emirate of
Abu Dhabi.
The announcements were made following the SPC meeting presided over by His Highness Sheikh
Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of
the United Arab Emirates (UAE) Armed Forces and Vice-Chairman of the SPC.
At the meeting, the SPC approved ADNOC’s capital expenditure (CAPEX) plan of AED 448 billion
($122 billion) for 2021-2025 to enable smart growth. As part of this plan, ADNOC aims to drive over
AED160 billion ($43.6 billion) back into the United Arab Emirates’ (UAE) economy between 2021-
2025.
www.linkedin.com/in/khaled-al-awadi-38b995b

The inflow to the local economy will be enabled by ADNOC’s In-Country Value (ICV) program which
is aimed at nurturing new local and international partnerships and business opportunities for the
private sector, fostering socio-economic growth and creating job opportunities for Emiratis.
In addition, the SPC gave approval for ADNOC to award exploration blocks in Abu Dhabi’s second
competitive block bid round which was launched in 2019.
The SPC also reviewed the transformation in ADNOC’s Marketing, Supply and Trading (MS&T)
Directorate, which has evolved to offer customers a broader service, while further stretching the
value from every barrel that ADNOC produces, refines and sells.
The directorate has become a more integrated shipping and logistics, storage and trading focused
entity, establishing two new trading companies – ADNOC Trading (AT) and ADNOC Global Trading
(AGT) – to help deliver its mandate.
The SPC also reviewed ADNOC and ADQ’s recently announced joint venture, TA’ZIZ, established
to fund and develop chemicals projects within the Ruwais Derivatives Park. ADNOC and ADQ,
through TA’ZIZ, are setting the stage for the UAE’s next generation of technology-driven growth and
helping to advance the UAE post-Covid economic recovery.
Other SPC members that attended the meeting were H.H. Sheikh Hazza bin Zayed Al Nahyan; H.H.
Sheikh Mansour bin Zayed Al Nahyan; H.H. Sheikh Hamed bin Zayed Al Nahyan; H.H. Sheikh
Mohammed bin Khalifa bin Zayed Al Nahyan; Dr. Sultan Ahmed Al Jaber; Suhail Mohamed Al
Mazrouei; Hamad Mubarak Al Shamsi; Dr. Ahmed Mubarak Al Mazrouei; Khaldoun Khalifa Al
Mubarak; Eng. Awaidha Murshed Al Marar; Abdullah Nasser Al Suwaidi; and Suhail Faris Ghanem
Al Mazrui.
During the meeting, H.H. Sheikh Mohamed bin Zayed reaffirmed the support of the UAE President
and Chairman of the SPC, H.H. Sheikh Khalifa bin Zayed Al Nahyan, for ADNOC as the company
continues to deliver sustainable value for the national economy through its 2030 strategy.
H.H. Sheikh Mohamed bin Zayed commended the Abu Dhabi National Oil Company’s (ADNOC)
agility and resilience, which has enabled the company to ensure zero interruptions to its operations
while achieving its operational and financial targets, despite the tough market conditions.
H.H. Sheikh Mohamed bin Zayed also commended ADNOC’s robust and proactive response to
COVID-19 which continues to prioritize the health and safety of its people and ensure business
continuity and ADNOC’s sustained contribution to the United Arab Emirates (UAE) economy.
Commenting on ADNOC’s discovery of onshore unconventional oil resources and an increase in its
conventional oil reserves, H.H. Sheikh Mohamed bin Zayed said the achievement is a testament to
ADNOC’s relentless efforts to unlock and maximize value from the UAE’s hydrocarbon reserves for
the benefit of the nation.
Following the meeting, H.H. Sheikh Mohamed bin Zayed engaged with front line staff and thanked
them for their hard work and dedication while stressing people are the nation’s greatest asset. He
met members of the ADNOC Future Leaders program virtually and emphasized the Leadership’s
commitment to enabling the development of the nation’s youth and ensuring they are equipped with
the necessary skills to build successful careers.
Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group
CEO, said: "We are thankful for the support and guidance of His Highness Sheikh Mohamed bin
Zayed and the SPC in steering ADNOC through a very challenging year where we have had to
navigate COVID-19 and volatile energy markets.

As a result of this wise guidance and our transformation over the past four years, ADNOC has
delivered robust operational and financial performance. Following the SPC’s approval of ADNOC’s
CAPEX, we are well-positioned to continue driving long-term and sustainable value for the UAE
while creating opportunities for local businesses and private-sector jobs for Emiratis through our in-
country value target."
Commenting on the SPC’s announcement of new hydrocarbon discoveries, Dr. Al Jaber said:
"Today’s announcement by the SPC of the discovery of recoverable unconventional oil resources
demonstrates how ADNOC is efficiently expediting the exploration and development of Abu Dhabi’s
unconventional resources and marks a major milestone as the nation’s unconventional industry
evolves. Importantly,
the increase in the UAE’s conventional oil reserves sends a strong signal that ADNOC is leaving no
stone unturned in unlocking value from our abundant hydrocarbon resources to ensure the UAE
remains a long-term and reliable energy provider to the world for decades to come.
"In parallel, we are developing large-scale capital projects in Ruwais to further stretch the margin
from each barrel of oil we produce as we deliver on our downstream expansion strategy – at the
heart of which are our plans to develop Ruwais into a dynamic, global hub for the UAE’s industrial
growth and economic diversification – and we are strengthening our marketing, supply, and trading
capabilities to unlock greater value from our products."
ADNOC’s CAPEX plan will enable it to drive upstream growth, progress downstream expansion and
further strengthen the company’s marketing and trading capabilities to ensure it maintains its
competitiveness and industry leadership position over the next fifty years.
To underpin this competitiveness, H.H. Sheikh Mohamed bin Zayed mandated ADNOC to explore
potential opportunities in Hydrogen with the ambition to position the UAE as a Hydrogen leader.
ADNOC’s downstream expansion continues to prioritize the transformation of Ruwais into a globally
competitive chemicals and industrial hub, leveraging close geographic proximity to fast-growing
global demand centers, a competitive feedstock position, Abu Dhabi’s attractive fiscal and
regulatory environment, and an integrated utilities, infrastructure and services offer to drive
accelerated FDI inflows over the long term.
Despite the challenging market conditions, ADNOC delivered AED 62 billion ($16.8 billion) in foreign
direct investment (FDI) to the UAE this year, taking the total FDI ADNOC has driven since 2016 to
AED 237 billion ($64.5 billion).
His Highness expressed the SPC’s appreciation of ADNOC’s smart and innovative approach to
strategic partnerships and investments which has resulted in the company completing several
landmark transactions.
ADNOC maintains its leadership role in driving ICV for the UAE following the huge success of its
ICV program which has driven more than AED 76 billion ($20.7 billion) back into the UAE’s economy
and created over 2,000 private-sector jobs for Emiratis since it was launched in January 2018.
ADNOC’s new ICV goal will enable the localization of strategically critical parts of the oil and gas
value chain and create more private-sector jobs for Emiratis.
The new discovered resources will further strengthen the UAE’s role as a leading resource holder
with high-quality crude grades, reinforce the country’s energy security and underpin its position as
an essential and reliable energy provider to the world. This year, ADNOC successfully increased its
crude oil production capacity to over 4 million barrels per day (mmbpd).

The mandate to explore potential opportunities in Hydrogen will see ADNOC capitalize on the
emerging global market for Hydrogen by leveraging its existing infrastructure and partnership base
as well as Abu Dhabi’s vast reserves of natural gas.
ADNOC already produces hydrogen for its downstream operations and following this mandate, the
company will explore the potential to help meet the emerging global demand for hydrogen and
ammonia derived from natural gas.
Building on its advantaged position as a major natural gas reserves holder and producer, with
existing infrastructure and strong partnerships, ADNOC is well placed to lead the development of
international value chains and establish a hydrogen ecosystem for the UAE in partnership with other
Abu Dhabi entities.
The 22 billion STB of recoverable unconventional oil resources announced by the SPC exceeds
some of Abu Dhabi’s major fields in terms of resources and the production potential ranks alongside
the most prolific North American shale oil plays.
The unconventional oil resource assessment was supported by extensive well data as well as a
dedicated appraisal program by ADNOC in an area covering 25,000 square kilometers onshore in
Abu Dhabi.
The 2 billion STB of conventional oil reserves announced by the SPC increases the UAE’s
conventional oil reserves base to 107 billion STB of recoverable oil, strengthening the country’s
position in global rankings as the holder of the sixth-largest oil reserves.
This increase in reserves is as a result of the ongoing maturation of ADNOC’s developments
towards its 5 million barrels per day (mmbpd) oil production capacity target by 2030, and its
appraisal activities, particularly in the Al Nouf field.
Both the conventional and unconventional oil resources offer the potential to provide ADNOC with
additional amounts of Murban-grade crude. Murban is ADNOC’s signature grade crude and is
recognized around the world for its intrinsic chemical qualities, consistent and stable production
volumes, large number of international buyers, and numerous long-term concession and production
partners.
Ryder Scott Co. LP has confirmed through an independent assessment that ADNOC’s conventional
oil reserves and the technically recoverable unconventional oil resources are consistent with their
results.
These additions to the UAE’s hydrocarbons base follows the announcement in November 2019 by
the SPC of increases in hydrocarbon reserves of 7 billion STB of oil, 58 trillion standard cubic feet
(TSCF) of conventional gas, and 160 TSCF of unconventional recoverable gas resources.
These additions to the UAE’s hydrocarbon reserves marked a historic milestone for the country
since the last major update of its reserves base three decades ago.
Following the SPC’s approval for ADNOC to award exploration blocks in the Abu Dhabi 2019 Block
Bid Round, the company is set to announce the successful bidders. Based on existing data from
detailed petroleum system studies, seismic surveys, exploration and appraisal wells data, estimates
suggest the blocks in this second bid round hold multiple billion barrels of oil and multiple trillion
cubic feet of natural gas.
As ADNOC develops its upstream resources and expands its downstream footprint, it is further
strengthening its marketing and trading capabilities. As part of this effort, AGT – a joint venture with
Eni and OMV – is set to begin the trading of refined products before the end of the year.

In addition, ADNOC will expand its shipping capabilities by purchasing a fleet of Very Large Crude
Carriers (VLCCs), through ADNOC Logistics & Services (ADNOC L&S), creating new long-term
revenue streams as it enters a new sector to support growing customer demand and its historic
move into trading.
AGT and AT are both incorporated at the International Financial Center, Abu Dhabi Global Market,
joining ICE Futures Abu Dhabi (IFAD), which plans to launch trading in Murban futures contract at
the end of March 2021. IFAD will be the world’s first trading platform to include futures contracts
based on Abu Dhabi’s unique grade of Murban crude – increasingly the benchmark grade in Asia’s
fast-growing economies.

UAE:AquaChemie breaks ground on $M40 petrochemical terminal
WAM/ /Tariq alfaham/Hatem Mohamed
AquaChemie Middle East - a leading chemical sales and services company and part of the UAE-
based AquaChemie Group - today broke ground on its strategic, world-class petrochemical terminal
in DP World’s flagship, Jebel Ali Port, Dubai.
The AED150 million ($40 million) project will serve as a vital gateway, facilitating and boosting the
growing petrochemical trade between manufacturers and end-users in the Middle East and globally,
while also addressing the acute shortage of storage facilities for redistribution and lease for bulk
chemicals in Jebel Ali Port.
The state-of-the-art specialised bulk storage terminal will have a total envisaged capacity of around 40,000 CBM (Cub
Scheduled for construction completion by early Q2 2022, the facility will be a turnkey and fully
integrated distribution center capable of handling bulk imports and packed chemicals at high
volume. The terminal is designed to store flammable chemicals, up to NFPA Class 1B. Over 100
chemicals of UN Class3 hazardous classification or non-hazardous chemicals can be stored in the
facility's nitrogen blanketed tanks.
AquaChemie Middle East targets revenue of around $400 million from the petrochemical terminal
business in the next 7 years. This would form a substantial portion of the AquaChemie Group
business.
The groundbreaking ceremony for the new chemical terminal was held at Jebel Ali and was attended
by Mohammed Al Muallem, CEO and Managing Director, DP World, UAE Region and CEO of Jafza;
Abdulla Bin Damithan, Chief Commercial Officer, DP World, UAE Region and Ahmad Al Haddad,
Chief Operating Officer, Parks and Zones, DP World, UAE Region. In addition, directors and key
members of AquaChemie Middle East and other industry associates and well-wishers were present.
Mohammed Al Muallem said, "The petrochemical sector forms an integral part of DP World, UAE
Region’s key industry clusters. Jebel Ali Port and Jafza’s combined capabilities as an integrated
hub that offers multimodal connectivity, caters to the extensive demand of the industry at the local
and international level. Over the years, we have been providing a wide range of solutions to the
region’s chemicals’ trade and logistics sector. We take pride in the fact that we can enable a regional
distributor like AquaChemie. We are confident that this project will transform the business landscape
of the petrochemicals segment that is underpinned by rapidly changing regulations, technology
disruptions and evolving customer demands."

AquaChemie Middle East has engaged Mott MacDonald, the renowned global engineering,
management, and development consultancy - to undertake the project's concept design, basic
engineering, detailed engineering and PMC, Project Management Contract.
The key advantage of the 20,000sqm project is its strategic location - connected by four jetty
pipelines - located only 500 meters from Jebel Ali Port Chemical Berth #4. The deep-water port is
the flagship facility of DP World that has a portfolio of over 80 marine and inland terminals across
six continents.
Cherian George, AquaChemie, Project Manager for this prestigious project commented, "I am
looking forward to the commissioning of this state-of-the-art facility, with utmost importance to safety
and quality, within the strict budget and time schedule. Moreover, we are fortunate to receive from
DP World, UAE Region a very strategic location for our new project."
Speaking on the occasion, Subrato Saha, Co-Founder and Director of AquaChemie Middle East,
said: "Being associated with the petrochemicals industry for over three decades, I am excited to
soon play a direct role in the distribution of additional 100-150 KTA (Kilo tonnes per annum) of over
50 petrochemicals globally. This new petrochemical facility will make us a sizeable industry player,
responsibly focused on Quality, Health, Safety and Environment."
According to Saha, the new chemical terminal will serve as a one-stop solution for sourcing raw
materials and process chemicals for several industries and is poised to service customers, including
oil and gas downstream, fine chemicals, fertilizer plants, paints and coatings, pharma,
agrochemicals, textiles, and other industrial and consumer products. Local and regional availability
of chemicals will foster all the chemical-based associated industries in the region, he added.
During the projected 16-18 months' construction duration, the project is expected to engage a
workforce of over 250 through various contractors. Once commissioned, AquaChemie will scale up
the personnel operation with an initial headcount of about 60 employees, which will swell with facility
utilization, stabilizing at around 100 blue and white-collar employees. Sales and marketing staff with
AquaChemie and its global distributors will be additional.
As per Grand View Research, the global petrochemicals market size is around $480 billion, with an
anticipated CAGR of approximately 5 percent. Although the Middle East and Africa, MEA,
consumption is only about 15 percent, it takes the lion's share in manufacturing and exports,
especially from the GCC region, due to the availability of low-cost feedstock and cheap energy
sources for production. Total global petrochemicals production is around 2,200 million tons per
annum.

Iraq: CNPC, CNOOC Weigh Deal for Exxon’s Iraq Oil Field Stake
Bloomberg News
China’s oil giants China National Petroleum Corp. and CNOOC Ltd. are considering
acquiring Exxon Mobil Corp.’s remaining stake in an oil field in Iraq, which could fetch at least $500
million, according to people familiar with the matter.
A deal would mark Exxon’s exit from the project and a further retreat from Iraq by international oil
majors, following Royal Dutch Shell Plc’s departure from the giant Majnoon field three years ago.
Tough contractual terms, payment delays and political instability have dulled the appeal of what had
once been the Middle East’s glittering oil prize.
“Iraq has not proved as attractive as it was hoped to be a decade ago,” said Richard Bronze, co-
founder of consultant Energy Aspects Ltd. “U.S and European firms are not pursuing those big
upstream opportunities -- which is bad news for Iraq’s further expansion plans. Chinese firms are,
by contrast, still interested.”
CNPC an CNOOC, both state-owned, are weighing a potential deal to buy Exxon’s 32.7% stake in
Iraq’s West Qurna 1 field, the people said, asking not to be identified as the matter is private.
No final decisions have been made and there is no guarantee the deliberations will lead to a deal,
the people said. Geopolitical risks in Iraq could bring uncertainties to any potential agreement, they
added. Representatives for CNOOC, Exxon and CNPC declined to comment.
Exxon’s departure from the field, where it was once the dominant player and remains the lead
contractor, would throw into further doubt a major water-injection project seen as critical for growing
Iraq’s production capacity. The U.S. company has been in talks over the common seawater supply
project for southern oil fields, which has encountered multiple delays.

While the government in Baghdad made enormous progress in rebuilding its war-scarred oil industry
in the last decade -- effectively doubling output between 2010 and 2015 despite an Islamist
insurgency and other challenges -- it has repeatedly been forced to push back its loftiest production
goals.
The country was pumping about 4.8 million barrels a day last September, just before a new round
of supply cuts agreed with fellow members of the Organization of Petroleum Exporting Countries. It
aims to reach 7 million barrels a day by 2027, Oil Minister Ihsan Abdul Jabbar said last month.
In 2010, Exxon signed an agreement with Iraq’s state-owned South Oil Co. to rehabilitate and
redevelop the West Qurna oil field. Three years later, Exxon reduced its holding by selling a stake
to PetroChina, CNPC’s listed unit, and to PT Pertamina. Itochu Corp. acquired Shell’s 19.6% stake
in the field in 2018.
Iraq awarded a contract to develop the West Qurna oilfield to Exxon and Shell in 2009. The oilfield
is one of the world’s largest with expected recoverable reserves of over 20 billion barrels, according
to Itochu’s website. The site produces slightly below 500,000 barrels a day, one of the people said.
Last year, Exxon’s staff left the Iraqi field after the U.S. withdrew non-essential staff from its
embassy in Baghdad, citing a threat from neighboring Iran, Reuters reported at the time. The
staff returned two weeks later after boosting company’s security.
The U.S. plans to accelerate a drawdown of troops in Iraq to 2,500, from about 3,000 currently,
Acting Secretary of Defense Christopher Miller announced on Tuesday at the Pentagon. Before he
leaves office in January, President Donald Trump is working to deliver on his longtime pledge to exit
“endless wars.”

India: Modi India set to double oil refining capacity in 5 years
Reuters + NewBase
India plans to nearly double its oil refining capacity in the next five years, Prime Minister Narendra
Modi said on Saturday, offering a much more aggressive timeline than previously despite the
coronavirus pandemic blighting the economy.
The country's energy minister was quoted (here) in June as saying India's oil refining capacity could
jump to 450-500 million tonnes in 10 years from the current level of about 250 million tonnes. But
addressing a petroleum university’s convocation, Modi said “work is being done to nearly double
the country’s oil refining capacity in the next five years”.
The convocation was also addressed virtually by billionaire Mukesh Ambani, whose Reliance
Industries Ltd operates the world’s biggest oil refinery in Modi’s home state of Gujarat.
Modi said India was also aiming to raise the share of natural gas in its energy-consumption mix by
up to four times. The cleaner-burning fuel currently accounts for about 6% of the energy consumed
in the country.
India would achieve its targets of increasing renewable energy capacity to 175 gigawatts by 2022
and 450 gigawatts by 2030 ahead of schedule, Modi added. The country had renewable energy
capacity of about 75 gigawatts at the end of 2018.
India to contribute 15% of Asia’s crude oil refining capacity in 2023, says GlobalData
India is the next largest contributor of Asia’s crude oil refining capacity, after China. The country is
expected to contribute 15% of the Asia’s crude oil refining capacity in 2023, according to GlobalData,
a leading data and analytics company.
The total refining capacity of India in 2018 was 5,010 thousand barrels per day (mbd), which is 15%
of Asia’s total refining capacity in 2018. The company’s report: ‘India Crude Oil Refinery Outlook to
2023‘ reveals that the country’s total refining capacity is set to grow at an average annual growth

rate (AAGR) of 5.3% to 6,525 mbd in 2023. India’s planned and announced crude oil refining
capacity is expected to increase to 580 mbd in 2023.
Soorya Tejomoortula, Oil & Gas Analyst at GlobalData, comments: “India’s crude oil refining
capacity is growing rapidly to meet burgeoning demand for petroleum products. The booming
automobile and aviation sectors, fast urbanization and growing use of liquefied petroleum gas (LPG)
for cooking are the major drivers for refined products in the country.”
GlobalData also forecasts that the country’s total crude distillation unit capacity, coking capacity,
catalytic cracker capacity and the hydrocracking capacity is expected to increase, during the outlook
period 2018–2023.
India’s total crude distillation unit capacity would increase from 5,010 mbd in 2018 to 6,525 mbd in
2023. The total coking capacity is expected to slightly increase from 1,035 mbd to 1,147 mbd over
the same period.
India’s total catalytic cracker unit capacity is expected to increase from 991 mbd in 2018 to 1,210
mbd in 2023. The hydrocracking unit capacity of the country is set to increase from 607 mbd to
1,064 mbd during the outlook period.
India has a total of 23 active crude oil refineries, of which, Jamnagar II, Jamnagar I and Vadinar are
the major active refineries with total refining capacities of 704 mbd, 660 mbd and 405 mbd,
respectively, in 2023.
Jamnagar III is the only announced refinery and Barmer is the only planned refinery in India, which
are expected to start operations in 2023 and 2022, respectively. The crude oil refining capacities of
Jamnagar III and Barmer refineries are 400 mbd and 180 mbd, respectively.

China Is Set to Eclipse America as World’s Biggest Oil Refiner
Bloomberg - Saket Sundria
Earlier this month, Royal Dutch Shell Plc pulled the plug on its Convent refinery in Louisiana. Unlike
many oil refineries shut in recent years, Convent was far from obsolete: it’s fairly big by U.S.
standards and sophisticated enough to turn a wide range of crude oils into high-value fuels. Yet
Shell, the world’s third-biggest oil major, wanted to radically reduce refining capacity and couldn’t
find a buyer.
As Convent’s 700 workers found out they were out of a job, their counterparts on the other side of
Pacific were firing up a new unit at Rongsheng Petrochemical’s giant Zhejiang complex in northeast
China. It’s just one of at least four projects underway in the country, totaling 1.2 million barrels a day
of crude-processing capacity, equivalent to the U.K.’s entire fleet.
The Covid crisis has hastened a seismic shift in the global refining industry as demand for plastics
and fuels grows in China and the rest of Asia, where economies are quickly rebounding from the
pandemic. In contrast, refineries in the U.S and Europe are grappling with a deeper economic crisis
while the transition away from fossil fuels dims the long-term outlook for oil demand.
America has been top of the refining pack since the start of the oil age in the mid-nineteenth century,
but China will dethrone the U.S. as early as next year, according to the International Energy Agency.
In 1967, the year Convent opened, the U.S. had 35 times the refining capacity of China.
The rise of China’s refining industry, combined with several large new plants in India and the Middle
East, is reverberating through the global energy system. Oil exporters are selling more crude to Asia
and less to long-standing customers in North America and Europe.

And as they add capacity, China’s refiners are becoming a growing force in international markets
for gasoline, diesel and other fuels. That’s even putting pressure on older plants in other parts of
Asia: Shell also announced this month that they will halve capacity at their Singapore refinery.
There are parallels with China’s growing dominance of the global steel industry in the early part of
this century, when China built a clutch of massive, modern mills. Designed to meet burgeoning
domestic demand, they also made China a force in the export market, squeezing higher-cost
producers in Europe, North America and other parts of Asia and forcing the closure of older,
inefficient plants.
“China is going to put another million barrels a day or more on the table in the next few years,” Steve
Sawyer, director of refining at industry consultant Facts Global Energy, or FGE, said in an interview.
“China will overtake the U.S. probably in the next year or two.”
Asia Rising
But while capacity will rise is China, India and the Middle East, oil demand may take years to fully
recover from the damage inflicted by the coronavirus. That will push a few million barrels a day more
of refining capacity out of business, on top of a record 1.7 million barrels a day of processing
capacity already mothballed this year. More than half of these closures have been in the U.S.,
according to the IEA.
About two thirds of European refiners aren’t making enough money in fuel production to cover their
costs, said Hedi Grati, head of Europe-CIS refining research at IHS Markit. Europe still needs to
reduce its daily processing capacity by a further 1.7 million barrels in five years.
“There is more to come,” Sawyer said, anticipating the closure of another 2 million barrels a day of
refining capacity through next year.
Chinese refining capacity has nearly tripled since the turn of the millennium as it tried to keep pace
with the rapid growth of diesel and gasoline consumption. The country’s crude processing capacity
is expected to climb to 1 billion tons a year, or 20 million barrels per day, by 2025 from 17.5 million
barrels at the end of this year, according to China National Petroleum Corp.’s Economics &
Technology Research Institute.
India is also boosting its processing capability by more than half to 8 million barrels a day by 2025,
including a new 1.2 million barrels per day mega project. Middle Eastern producers are adding to
the spree, building new units with at least two projects totaling more than a million barrels a day that
are set to start operations next year.
Plastic Driven
One of the key drivers of new projects is growing demand for the petrochemicals used to make
plastics. More than half of the refining capacity that comes on stream from 2019 to 2027 will be
added in Asia and 70% to 80% of this will be plastics-focused, according to industry consultant
Wood Mackenzie.
The popularity of integrated refineries in Asia is being driven by the region’s relatively fast economic
growth rates and the fact that it’s still a net importer of feedstocks like naphtha, ethylene and
propylene as well as liquefied petroleum gas, used to make various types of plastic. The U.S. is a
major supplier of naphtha and LPG to Asia.
These new massive and integrated plants make life tougher for their smaller rivals, who lack their
scale, flexibility to switch between fuels and ability to process dirtier, cheaper crudes.

The refineries being closed tend to be relatively small, not very sophisticated and typically built in
the 1960s, according to Alan Gelder, vice president of refining and oil markets at Wood Mackenzie.
He sees excess capacity of around 3 million barrels a day. “For them to survive, they will need to
export more products as their regional demand falls, but unfortunately they’re not very competitive,
which means they’re likely to close.”
Demand Trap
Global oil consumption is on track to slump by an unprecedented 8.8 million barrels a day this year,
averaging 91.3 million a day, according to the IEA, which expects less than two-thirds of this lost
demand to recover next year.
Some refineries were set to shutter even before the pandemic hit, as a global crude distillation
capacity of about 102 million barrels a day far outweighed the 84 million barrels of refined products
demand in 2019, according to the IEA. The demand destruction due to Covid-19 pushed several
refineries over the brink.
“What was expected to be a long, slow adjustment has become an abrupt shock,” said Rob Smith,
director at IHS Markit.
Adding to the pain of refiners in the U.S. are regulations pushing for biofuels. That encouraged some
refiners to repurpose their plants for producing biofuels.
Even China may be getting ahead of itself. Capacity additions are outpacing its demand growth. An
oil products oversupply in the country may reach 1.4 million barrels a day in 2025, according to
CNPC. Even as new refineries are built, China’s demand growth may peak by 2025 and then slow
as the country begins its long transition toward carbon neutrality.
“In an environment where the world has already got enough refining capacity, if you build more in
one part of the world, you need to shut something down in another part of the world to maintain the
balance,” FGE’s Sawyer said. “That’s the sort of environment that we are currently in and are likely
to be in for the next 4-5 years at least.”

U.S:N.Y the 4th most electricity from renewable sources of any state
Source: U.S. Energy Information Administration, Electric Power Monthly
In 2019, more electricity was generated from renewable sources in New York than in all but three
states, according to the U.S. Energy Information Administration’s (EIA) Electric Power Monthly. New
York’s 39.4 million megawatthours (MWh) of renewable electricity generation was more than any
other state east of the Mississippi River and accounted for 30% of the state’s total electricity
generation in 2019.
Hydroelectricity is the primary source of renewable generation in New York. Nearly 31 million MWh
of hydroelectric power was generated in New York in 2019, which accounted for 78% of the state’s
renewable electricity generation and 23% of the state’s total electricity generation.
The Robert Moses Niagara hydroelectricity plant, located downstream from Niagara Falls, has a
capacity of 2.4 gigawatts and is the second-largest conventional hydroelectric power plant in the
country in terms of electric generating capacity, behind only Washington’s Grand Coulee dam.

Wind has been the second-largest source of renewable electricity in New York, with 4.5 million MWh
generated in 2019. Wind generation in New York during 2019 accounted for 11% of the state’s
renewable generation and 3% of the state’s total electricity generation. At the end of 2019, New
York had 1,132 wind turbines at 27 power plants, according to EIA’s Annual Electric Generator
Inventory.
Solar energy generated nearly 2.4 million MWh of electricity in New York during 2019. Small-scale
solar installations, such as those found on residential and commercial rooftops, accounted for nearly
80% of the state’s solar electricity generation. Biomass, at 1.9 million MWh, accounted for the
remainder of New York’s renewable electricity generation in 2019.
Source: U.S. Energy Information Administration, Electric Power Monthly
In the United States, the sources of electricity generation have been shifting from coal to natural
gas and renewables since the mid-2000s. Changes in New York’s electricity generating mix have
contributed to this trend. Coal’s share of New York’s electricity generation fell from 14% in 2005 to
less than 1% in 2019, and natural gas-fired electricity grew from 22% to 36%.
Electricity generation from renewable energy technologies collectively grew from 19% to 29% in the
same period. New York adopted a renewable portfolio standard in 2004 and the Clean Energy
Standard (CES) in 2015. The CES currently requires New York to generate 100% carbon-free
electricity by 2040 and attain economy-wide net-zero carbon emissions by 2050.
Additional information is available in EIA’s Electricity Data Browser, which provides charts and data
tables for electricity by fuel, sector, and state. EIA’s State Energy Portal provides state-level
analysis for all types of energy.

NewBase November 24-2020 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil Keeps Rising After Eight-Month High on Demand Optimism
Bloomberg + NewBase
Oil kept rising after closing at a eight-month high on increasing optimism that recent Covid-19
vaccine breakthroughs will lead to a swift recovery in global energy demand next year.
West Texas Intermediate for January delivery rose 0.7% to $45.48 a barrel on the New York
Mercantile Exchange as of 9:44 a.m. in London. It closed at $44.91 Tuesday, the highest since
March 5 .Brent advanced 1.55% to $48.60 on the ICE Futures Europe exchange after closing up
3.9% on Tuesday.
Crude futures climbed 3% to 289.8 yuan per barrel on the Shanghai International Energy Exchange
after advancing 5% on Tuesday
Futures in New York climbed around 1% to trade above $45 a barrel as a broader financial markets
rally continued. Global benchmark Brent crude could reach $60 a barrel by the summer of 2021 as
the easing of travel restrictions boosts demand for fossil fuels, according to Bank of America Corp.
Oil price special
coverage

In another positive sign for consumption, Premier Li Keqiang said China, the world’s biggest oil
importer, will likely return to a more “proper” range of economic development in 2021. China and
Japan also agreed to restart some two-way travel by the end of November. Crude surged 4.3% on
Tuesday after the triggering of a formal transition process to U.S. President-elect Joe Biden.
Oil’s value has increased by more than a quarter this month amid positive results for three Covid-
19 vaccines. It’s reclaimed heights not seen since the pandemic devastated global demand in March
even as a resurgent virus prompted more lockdown measures. Expectations that OPEC and its
allies will delay an increase in production planned for January have also aided the rally.
The investor mood has been lifted by the developments around vaccines and the likely extension
of the OPEC+ output cuts, said Daniel Hynes, a senior commodity strategist at Australia & New
Zealand Banking Group Ltd. “The market is fairly well-priced and should continue gains in the
coming days.”
Goldman Sachs Group Inc. said in a note that it expects OPEC+ to delay its planned 2 million barrel
a day output ramp-up by three months. It forecast Brent would average $47 a barrel next quarter if
this happens.
The optimism is reshaping oil’s forward curves. Brent’s prompt timespread and the so-called WTI
red spread -- which measures futures for December of next year to December 2022 -- have both
flipped to backwardation this week, a bullish signal that suggests the market may be moving into
deficit.
Chinese and Indian refiners have issued a flurry of tenders seeking oil, adding more froth to the
market. Rongsheng Petro Chemical Co. is seeking spot crude supplies for delivery to Zhoushan
and is also looking for term supplies for next year, while Indian Oil Corp. is seeking Middle Eastern
and West African oil for December and January loading.

The American Petroleum Institute, meanwhile, reported crude inventories swelled by 3.8 million
barrels, according to people familiar with the data. That would be the third straight week of rising
stockpiles if confirmed by government figures due later on Wednesday. Inventories probably rose
by 225,000 barrels last week, according to the median estimate in a Bloomberg survey before the
official Energy Information Administration data.

NewBase Special Coverage
The Energy world – Nov. 11 -2020
Nuclear Power’s Renaissance Is Losing Momentum in Britain
Bloomberg - Rachel Morison
Britain’s ambition to renew its aging fleet of nuclear power plants is losing momentum after the
government offered few new details on how it will support additional projects.
Prime Minister Boris Johnson’s administration set aside 500 million pounds ($661 million) for small
modular reactor projects but was silent on support for traditional large-scale plants. The issue gained
urgency on Thursday as Electricite de France SA’s announced it will close its Hinkley Point B
reactors two years early.
Electricite de France SA's (EDF) Hinkley Point B nuclear power station near Bridgwater, U.K. in 2013. Photographer: Simon
Dawson/Bloomberg
The government’s latest thinking on how to replace its aging fleet of nuclear plants marks a dramatic
shift from 2013, when David Cameron agreed to funding for new reactors at the Hinkley Point site
with support from China.
Since then, relations with China have deteriorated, electricity demand slumped and renewables
such as wind and solar farms became much cheaper than new atomic plants.

“Large scale reactors are running into problems with delays, and developers pulling out,” said Rob
Gross, director of the U.K. Energy Research Center. “By contrast, small modular reactors appear
to politicians as new and exciting, with a leading role for British firms.”
Generation Mix
Nuclear was 17% of Britain's generation mix in 2019
That left an uncertain outlook for 20 billion pound Sizewell C nuclear project in eastern England that
EDF is hoping to develop. That would replace units set to retire in 2035, when the last of the existing
fleet of atomic plants in the U.K. will close.
Including the Hinkley Point B that EDF said will close in 2022, four major plants will close in the next
four years. The only project set to come online is Hinkley Point C in 2025.
The early closure of Hinkley Point B “is a reminder of the urgency of investing in new nuclear
capacity to hit net zero,” said Tom Greatrex, chief executive officer of the Nuclear Industry
Association. “It can only be replaced by new nuclear stations that produce the same reliable, always-
on, emissions-free power.”
For more than a year, the government has been promising an energy white paper that may set out
a future funding model for nuclear power plants.

That document is now due next month, delayed as ministers debate how to balance the energy
industry’s needs with strains on the budget from Covid-19 and the worst economic recession in
decades.
Uncertain Future
The problem for nuclear power is its cost and time scale. Each project can cost 20 billion pounds or
more and take a decade to deliver.
Wind farms need a fraction of that money and can come together in less than five years. And while
the cost of renewables is falling, nuclear power is becoming more expensive, with EDF reporting
cost overruns and delays both at its Hinkley Point C project and one in France.
EDF is the only remaining nuclear developer with a major project underway. The French utility
wants to build additional units in eastern England in a project dubbed Sizewell C. But it has made it
clear it can’t shoulder alone the risks and investment needed.
The government has suggested it may take an equity stake in Sizewell. The white paper may deliver
a verdict on whether it might adopt the Regulated Asset Base model that has been used to with
other major infrastructure projects.

Nuclear Workhorse
For Hinkley Point C now under construction in western England, China General Nuclear Power
Corp. took a one-third stake in the project. The government agreeing to pay a subsidy of 92.50
pounds for every megawatt-hour of electricity the plant produces for 35 years. The price would drop
to 89.50 pounds if a station using the same technology goes ahead at Sizewell C.
That deal left EDF and its partners with all the risks involved with building the plant and taxpayers
owing nothing until the facility begins generating electricity. However, the deal is looking like a bad
value for consumers, since the wholesale price of electricity at the moment is about half of what
EDF will earn.
The two key uncertainties that remain are “whether refinancing on a RAB model can bring down
costs and unblock development of conventional reactors, and how long it will take before SMRs are
market ready,” Gross said.
Up to now, the thinking had been that the U.K. would build one more large scale nuclear plant. That
was the advice to government of a National Infrastructure Commission paper in 2018. All other
projects on the drawing board have fallen by the wayside since then.
Britain’s Aging Nuclear Plants

Hitachi Ltd. exited a long-planned U.K. nuclear power project in September after turning down
the most generous support package the government had ever offered.
Nuclear power supporters note reactors feed a constant stream of electricity without climate-
damaging fossil fuel pollution. It’s part of the government’s roadmap on how it will meet targets for
reaching net-zero emissions by 2050.
“Only with robust financial commitments -– potentially including public equity stakes -- can the
government overcome the challenges which have undermined U.K. nuclear capacity development
over the past decade,” said Andrew Leming, researcher at the research group Bright Blue.

Britain’s Nuclear Projects
Project Size
(GW)
Partners Status Comments
Hinkley
Point C
3.2 EDF,
CGN
Under
construction
On track to start generating 2025, costing 22.5 billion
pounds. Construction financed by EDF. Government
guaranteed price for power sold from plant.
Sizewell C 3.2 EDF,
CGN
In planning
process
Reactor design based on Hinkley plant. EDF looking for
ways to fund it without shouldering all the risk. It’s seeking
to combine government and private funding. Construction
due to start 2021. Electricity flows from 2031.
Bradwell 2.3 CGN Early
technical
stages
Seeking government approval for a Chinese reactor
design. China’s ownership of a major infrastructure project
likely to be politically sensitive.
Wylfa 2.9 Hitachi Shelved Company was unable to reach financing agreement with
U.K. government. Was due to start generating in mid-
2020s.
Oldbury 2.9 Hitachi Shelved Project in very early development stages. Site identified
but no applications had been made for regulatory
approvals.
Moorside 3 Toshiba Shelved Decision to halt project came after failed attempts by
Toshiba to sell its stake. No financing agreement was in
place with the government. Was due to start operating in
2025.

NewBase Energy News 25 November 2020 - Issue No. 1389 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. Currently working as Technical Affairs Specialist for Emirates General
Petroleum Corp. “Emarat “with external voluntary Energy consultation for the GCC
area via Hawk Energy Service, as the UAE operations base. Khaled is the Founder
of NewBase Energy, and 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 more than 1400 popular
articles to his credit. He is proactively engaged in creating mass awareness on renewable energy, waste
management and environmental sustainability in different parts of the world. Khaled has become a reference
for many of the Oil & Gas Conferences and for many Energy program broadcasted internationally, via GCC
leading satellite Channels. Khaled can be reached at any time, see contact details above.
NewBase: For discussion or further details on the news above you may contact us on +971504822502, Dubai, UAE
NewBase 2020 K. Al Awadi

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