NewBase 28 August 2025 Energy News issue - 1820 by Khaled Al Awadi_compressed (1).pdf

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NewBase Energy News 28 August 2025 No. 1820 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: Drydocks World wins contract for world’s largest
floating LNG facility off Mexico
(WAM)
Drydocks World, a DP World company, has been awarded a landmark Engineering, Procurement,
and Construction (EPC) contract by AMIGO LNG for the world’s largest Floating Liquefied Natural
Gas (FLNG) liquefaction facility.
The breakthrough project includes the conversion of two LNG carriers into Floating Storage Units
(FSUs) and the construction of two newbuild FLNG barges at Drydocks World’s yard in Dubai. Once
operational in the second half of 2028, the four-vessel facility will provide more than 4.2 million
tonnes per annum (MTPA) of liquefaction capacity, surpassing any existing floating LNG
development worldwide.
AMIGO LNG is a joint venture between Texas-based Epcilon LNG LLC and Singapore-based LNG
Alliance Pte Ltd. Located off Guaymas, Sonora on Mexico’s west coast and supplied with natural
gas from the US Permian Basin, the facility will expand Mexico’s role in global energy supply by
enabling direct LNG exports to meet growing demand in Asia and Latin America.
Its strategic location shortens shipping distances to Asia compared with US Gulf terminals, cutting
costs and emissions while opening a new LNG corridor at a critical time for global energy security.
Capt. Rado Antolovic, CEO, Drydocks World, said: “This contract represents a major milestone for
Drydocks World and Dubai. With our expertise in complex offshore conversions and large-scale
new builds, we are setting new global benchmarks for floating LNG solutions. At the same time, this
project reinforces Dubai’s position as a hub for advanced maritime engineering that powers global
trade and the energy transition."
The EPC project will be executed using a modular build strategy, enabling precision fabrication,
seamless system integration and pre-commissioning in a controlled environment. This approach
ensures rigorous quality assurance, shorter delivery schedules, reduced environmental impact, and
reliable long-term performance.
ww.linkedin.com/in/khaled-al-awadi-80201019/

Dr. Muthu Chezhian, CEO of LNG Alliance Pte Ltd. , said: “By partnering with Drydocks World on
the world’s largest FLNG facility, we are securing best-in-class quality, exceptional production
capacity, and reliable long-term performance of this critical asset.
We are also harnessing the key advantages of FLNG solutions — from faster project schedules to
rigorous testing and seamless pre-commissioning in a controlled fabrication yard environment, as
well as the substantial environmental benefits this approach delivers.”
Drydocks World has completed more than 10 major LNG and FSRU conversion projects.
The Guaymas-based AMIGO LNG terminal will source feed gas from the Permian Basin. The
developers said combining FSU conversions with newbuild FLNG technology allows faster
construction, lower environmental impact, and competitive LNG supply to Asia and Latin America.
Drydocks World Wins EPC Contract for AMIGO LNG Floating
Facility in Mexico
Reinforcing Dubai’s position as a hub for advanced
maritime and offshore energy engineering

DEWA’s Green H2 project ouyput 100 tonnes since 2021 launch
WAM + NewBase Energy
Saeed Mohammed Al Tayer, MD and CEO of Dubai Electricity and Water Authority (DEWA) has
announced that DEWA’s Green Hydrogen project has produced more than 100 tonnes of green
hydrogen since its launch in May 2021. Most of this was used to produce over 1.15 gigawatt hours
(GWh) of clean electricity via a hydrogen gas engine, helping to abate more than 515 tonnes of
carbon dioxide.
Over 11 tonnes were shipped to ENOC, which were used to fuel hydrogen vehicles at ENOC’s
Service Station of the Future at Expo 2020 Dubai, and to power other industrial applications.
“The Green Hydrogen project supports the forward-looking vision of His Highness Sheikh
Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, to
consolidate the competitive advantages of the UAE in the field of hydrogen.
The project enhances DEWA’s efforts to support the National Hydrogen Strategy, the UAE's Net
Zero 2050 Strategy, the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon
Emissions Strategy 2050 to provide 100% of the energy production capacity from clean sources by
2050.
It also supports the Dubai Green Mobility Strategy 2030, which aims to stimulate the use of
sustainable transport in line with the emirate's strategic objectives to improve air quality and reduce
greenhouse gas emissions,” said Al Tayer.
The project has proved its pivotal role in consolidating the competitiveness of the UAE and Dubai.
The UAE ranks first in green hydrogen competitiveness, according to the Green Hydrogen Report
2024 by Alvarez & Marsal.
The Green Hydrogen project is the first of its kind in the Middle East and North Africa to produce
green hydrogen using solar energy. Implemented in collaboration with Expo 2020 Dubai and
Siemens Energy, the project produces about 20 kilogrammes of hydrogen per hour, with a gas tank
that can store up to 12 hours of hydrogen production. The stored hydrogen can be used for nighttime
power generation through a hydrogen gas motor with a capacity of approximately 300 kilowatts of
electrical energy. The project has been built to accommodate future hydrogen applications across
the energy, transport and industrial sectors.

USA: EIA expects record U.S. natural gas consumption in 2025
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO), August 2025
We forecast natural gas consumption in the United States will increase 1% to set a record of 91.4
billion cubic feet per day (Bcf/d) in 2025. In our latest Short-Term Energy Outlook, we expect
natural gas consumption to increase across all sectors except for electric power, which had been
the source of most natural gas consumption growth in the previous decade.
Natural gas consumption was high in the beginning of the year, driving our forecast. In January,
U.S. natural gas consumption was a record 126.8 Bcf/d, 5% more than the previous record set in
January 2024, according to data in our Natural Gas Monthly.
In February 2025, U.S. natural
gas consumption was 115.9
Bcf/d, 5% more than the previous
February consumption record set
in 2021. Natural gas consumption
in these winter months was
driven in part by colder weather,
including a polar vortex event in
mid-January.
U.S. natural gas
consumption typically peaks in
January or February, when
demand for space heating in the

residential and commercial sectors is greatest. According to household data from the U.S. Census
Bureau’s American Community Survey, 45% of homes use natural gas as their primary heating fuel.
We estimate that U.S. natural gas consumption decreased this spring and summer, compared with
consumption over the same period last year, especially in the electric power sector. Natural gas
remains the most prevalent source of electricity generation in the United States, but so far in 2025
natural gas has lost market share in the electric power sector to coal, solar, and wind.
We expect increases in natural gas consumed in the residential and commercial sectors to offset
decreases in natural gas consumed in the electric power sector. We currently forecast U.S. natural
gas consumption will decrease slightly in 2026, due in part to expected milder weather in the winter
months and therefore less consumption in the residential and commercial sectors.
Commodities

China's LNG imports are set to rise for a 4th month, it's not bullish
Reuters - Clyde Russell + NewBase
China's imports of liquefied natural gas (LNG) are poised to rise for a fourth straight month in August,
but this may not be quite as bullish as it first appears.
The world's biggest buyer of the super-chilled fuel is on track to see imports of 6.04 million metric
tons in August, the strongest since the same volume was landed in January, according to data
compiled by commodity analysts Kpler.
China's imports of LNG have been trending higher since hitting a five-year low of 4.48 million tons
in February. But while that piece of data is indicative of a recovery in demand, there is a more
important number that shows China's appetite for LNG remains muted.
The last time that imports were higher than the same month a year earlier was October 2024,
meaning that in the 11 months since then arrivals have been weaker on a year-on-year basis. It
would be hard to claim that China's LNG demand was recovering until imports in a month exceed
the level for the same month in the prior year.
The question then becomes what will it take for China's LNG demand to return to year-on-year
growth?
The answer is most likely linked to spot prices.
The LNG China is currently importing is largely volumes secured under long-term contracts, and
what it is not buying is spot cargoes. The spot price for LNG for delivery to North Asia has been
trending lower in recent weeks, ending at $11.40 per million British thermal units (mmBtu) in the
seven days to Aug. 22.

This is down from the peak so far in 2025 of $16.10 per mmBtu from mid-February, but it's also
worth noting that the lowest price this year has been $11.00 in the week to May 2.
The spot price has not dropped below $11 per mmBtu since May 2024, meaning LNG has been
expensive in comparison to recent years, with a low of $8.30 in 2024 and $9.00 in 2023. A spot
price above $10 per mmBtu means LNG struggles to be competitive in China against domestic and
pipeline natural gas, resulting in utilities paring imports.
LNG imports by Asia, Europe
INDIA SLUMP
The impact of high spot prices can be seen in other price-sensitive buyers in Asia, such as India,
where imports are on track to fall for a third straight month in August to 1.83 million tons, according
to Kpler data.
If the final figure for August remains at this level, it would be the weakest month for India since June
2023. A further question for the market is whether spot prices are likely to continue to trend lower
given weakness in buyers such as China and India.
So far this year demand in Europe as the continent works to refill natural gas storages has kept
prices robust, but this is starting to taper as inventories reach satisfactory levels.
Europe's August imports are forecast to reach 7.86 million tons, down from 8.84 million in July and
a fifth consecutive monthly decline. However, Europe's LNG imports are still up strongly on a year-
on-year basis, with August likely to be 22% higher than the 6.45 million from the same month last
year.
For the first eight months of the year Europe's LNG imports are 82.71 million tons, 22.1% higher
than the 67.74 million for the same period in 2024, according to Kpler data. It's also worth noting
that demand has been rising in Asia's developed economies, which are less sensitive to price
movements.
Japan, the world's second-biggest LNG buyer, is on track to receive 5.83 million tons in August, the
most since February, amid higher demand in the northern summer. South Korea, the third-ranked
LNG importer, is estimated to have August arrivals of 4.99 million tons, the most since December
2023.
In effect, Europe's strong
growth this year and
seasonal demand in
Japan and South Korea
are keeping spot LNG
prices at levels high
enough to crimp imports
by China, India and other
price-sensitive buyers in
Asia.

US fossil fuel electricity output and emissions hit 2025 peaks
Reuters - Gavin Maguire
There's good news and bad news for climate trackers following U.S. power generation and
emissions trends.
The good news is that electricity production from fossil fuels likely peaked for the year in July when
annual demand for air conditioning hit its highest, and has already started to retreat as cooler
temperatures cut power demand.
The bad news is that July's fossil generation peak was the highest monthly total in nine years, and
yielded the largest U.S. monthly power sector emissions toll since August 2021.
The mixed bag of generation and emissions milestones underscores the uneven progress of U.S.
energy transition efforts, and highlights the central role that coal and gas-fired power plants continue
to play in the U.S. generation system.
Yet the jagged nature of monthly generation trends also masks the continuing progress being made
across the U.S. power system, where clean power supplies have generated a record share of total
electricity so far this year.
Below are more key data points marking the ups and downs of fossil fuels and clean energy sources
within the U.S. power generation system.

SUMMER TOPS
U.S. fossil fuel-fired electricity generation peaks during July and August due to the higher levels of
electricity demand during those months from air conditioners.
Between 2015 and 2024, July marked the high point in U.S. monthly fossil fuel generation eight
times, while August marked the monthly high point twice.
In 2025, July again looks set to be the high water mark for fossil generation due to the number of
heatwaves that prevailed over much of the country that month, and the slightly cooler average
temperatures that have been registered since.
July's fossil fuel electricity generation total of roughly 290 terawatt hours (TWh) was the highest
monthly fossil-fired generation total since August 2016's total of 294 TWh, data from Ember shows.
The July total was 3% more than the generation total of the same month in 2024 (which was also
the annual fossil output peak last year), and led to the discharge of 191 million metric tons of carbon
dioxide (CO2), Ember data shows.
That was the largest monthly power emissions total since July 2021, and so seemingly reversed a
years-long trend of declining overall emissions within U.S. electricity production.
CONCEALED CLEAN PROGRESS
The upswing in fossil-fired generation and emissions this year has stoked fears of backsliding
among U.S. electricity producers with regard to clean energy generation momentum.

However, even as fossil electricity supplies scaled multi-year highs in July, the share of fossil fuels
within the overall U.S. electricity generation mix has declined to record lows so far in 2025.
Between January and July, fossil fuels accounted for an average of 56% of total U.S. utility-supplied
electricity.
That generation share compares to nearly 57% for the same months in 2024, and is well down from
a nearly 67% fossil share for the January to July period of 2015. On the flip side, clean energy
sources generated a record 44% share of U.S. electricity so far in 2025, which compares to only a
33% share during the same months a decade ago.

The share of clean power within U.S. electricity generation tends to dip to annual lows at the end of
summer as solar generation drops off, but then stages a strong rebound through the winter as wind
speeds pick up at wind farm turbine level.
Similarly, the use of fossil fuels within generation tends to drop off during periods of mild weather,
such as during the fall and spring, thereby allowing utilities to make maximum use of the clean
power sources at their disposal.
The speed of clean power generation growth is likely to slow going forward in response to U.S.
President Donald Trump's sudden scrapping of clean energy incentives.
But the overall footprint of clean generation sources continues to expand as existing projects are
completed.
That momentum should be enough to lift clean power's share of the U.S. electricity generation mix
to new highs for 2025, even as sporadic flare-ups in gas and coal power output underscore the still-
dominant status of fossil fuels.

U.S Transportation fuel demand below pre-pandemic levels
Five years after the COVID-19 national emergency was declared, gasoline demand, distillate
demand, and jet fuel demand all remain less than pre-pandemic averages. Several factors are
keeping demand, which we track as product supplied, below pre-pandemic levels.
For example, increased fuel efficiency in the vehicle and aircraft fleets has offset increased travel,
and demand for petroleum-based distillate fuel oil has been partially replaced by biomass-based
distillate fuels.
Finished motor gasoline

In April 2020 (the first full month following the March 13 declaration of the COVID-19 national
emergency), U.S. gasoline demand fell to 5.9 million b/d, the lowest since January 1974. In April
2025, U.S. gasoline demand averaged 8.9 million barrels per day (b/d), 52% higher than it was in
April 2020 but below the April 2019 average of 9.4 million b/d.
Gasoline demand gradually increased in the months following the emergency declaration. On an
annual basis, between 2016 and 2019, U.S. gasoline demand averaged 9.3 million b/d. In 2020, it
fell to 8.0 million b/d before averaging 8.9 million b/d in 2023 and 2024.
Increased vehicle efficiency has offset increased driving activity, measured as vehicle miles
traveled (VMT). U.S. VMT reached an all-time high in 2024, at 9.0 billion miles per day, which was
higher than the 2016–19 average of 8.8 billion VMT/d. However, increased fuel efficiency and
electrification of the vehicle fleet has resulted in less gasoline consumption despite increased driving
activity.
Petroleum distillate fuel oil
In May 2025, petroleum distillate fuel oil demand was 3.8 million b/d, 10% (0.3 million b/d) more
than in May 2020, when demand for distillate fell to its lowest point following the COVID-19
declaration.
Because distillate fuel oil is largely used in shipping goods and other economic activity, distillate
consumption was less affected by COVID-19 mitigation efforts than gasoline and jet fuel, which are
more closely tied to commuting and personal travel.
In 2024, petroleum distillate demand averaged 3.8 million b/d, less than the 4.1 million b/d
consumed in 2019.
The primary cause for this decline was substitution of petroleum diesel with biofuels, namely
renewable diesel, which has gained a larger market share of the diesel pool due to clean-fuel

programs that provide incentives for biofuels. In 2019, only 110,000 b/d of renewable diesel and
biodiesel were consumed as product, whereas in 2024, 310,000 b/d were consumed. Including
biodiesel and renewable diesel, total distillate demand in 2024 was closest to pre-pandemic levels,
at only 1% below 2019 distillate demand.
Jet fuel
In May 2025, U.S. jet fuel demand averaged 1.8 million b/d, significantly more than in May 2020,
when demand fell to 597,000 b/d, the lowest since May 1968.
In the three years prior to the pandemic, jet fuel demand gradually increased. However, jet fuel
demand has not returned to pre-pandemic levels in part because the fleet of aircraft has become
more efficient, and in 2024, jet fuel demand was 3% below 2019 levels.
In 2024, data from the Bureau of Transportation Statistics indicate the number of passengers and
the available seat miles, a measure of aircraft carrying capacity, both increased from 2019, although
the total number of flights decreased. Efficiency gains and changing flight patterns, among other
factors, have contributed to jet fuel consumption remaining slightly lower than pre-pandemic levels.

NewBase August 28 -2025 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil slips as market weighs end of US summer driving and India
supply dilemma
Reuters + NewBase Energy
Oil prices fell on Thursday as investors weighed the outlook for U.S. fuel demand with the end of
the summer driving season near, while assessing potential crude supply shifts as India faces
punishing U.S. tariffs for importing Russian oil.
Brent crude futures dropped 31 cents, or 0.46%, to $67.74 at 0027 GMT, and West Texas
Intermediate (WTI) crude futures dropped 36 cents, or 0.56%, to $63.79, after climbing more than
1% in the previous session.
The U.S. Energy Information Administration reported on Wednesday that U.S. crude
inventories fell by 2.4 million barrels in the week ended August 22, compared with analysts'
expectations in a Reuters poll for a 1.9-million-barrel draw.
The drop signalled strong demand ahead of the upcoming U.S. Labor Day long weekend. However,
this typically marks the unofficial end of the summer driving season and the onset of lower U.S.
demand, IG market analyst Tony Sycamore said.
Oil price special
coverage

On technical charts, crude faces resistance at $64-$65, while it is vulnerable to a test of support
near $60, he said.
Traders are watching out for how New Delhi responds to pressure from Washington to stop buying
Russian oil, after U.S. President Donald Trump doubled tariffs on imports from India to as much as
50% on Wednesday.
"India is expected to continue purchasing crude oil from Russia at least in the short term, which
should limit the impact of the new tariffs on global supply," said Sycamore. Underpinning oil price
gains this week, Russia and Ukraine have stepped up attacks on each other's energy infrastructure.
Russia launched a massive drone attack on energy and gas transport infrastructure across six
Ukrainian regions overnight, leaving more than 100,000 people without power, Ukrainian officials
said on Wednesday.
The prospect of a near-term interest rate cut in the U.S. has also supported the oil market, as that
would potentially boost economic activity and oil demand.
New York Federal Reserve Bank President John Williams said on Wednesday rates will likely fall
at some point, but policymakers will need to see upcoming economic data before deciding whether
it is appropriate to make a cut at the Fed's September 16-17 meeting.

Russia hits Ukrainian energy facilities across six regions,
By Reuters
Russia launched a massive drone attack on energy and gas transport infrastructure across six
Ukrainian regions overnight, leaving more than 100,000 people without power, Ukrainian officials
said on Wednesday.
Russian forces significantly damaged gas transport infrastructure in Poltava region and struck
equipment at one of the key substations in the Sumy region, the energy ministry said on the
Telegram messaging service. The attacks left more than 100,000 people without power in the
Poltava, Sumy and Chernihiv regions, Ukrainian President Volodymyr Zelenskiy said.
Ukraine's main gas production facilities are located in Poltava and Kharkiv regions. Kharkiv region
was also hit overnight, as were the regions of Zaporizhzhia and Donetsk, the energy ministry
said.In recent weeks, Russia has stepped up attacks on Ukrainian gas production and import
infrastructure despite efforts by U.S. President Donald Trump to end the war in Ukraine.
"We regard the Russian attacks as a continuation of the Russian Federation's deliberate policy of
destroying Ukraine's civilian infrastructure ahead of the heating season," the energy ministry said.
Ukraine had faced a serious gas shortage since Russian missile strikes earlier this year prompted
a 40% drop in production.
Ukraine's energy ministry said last week that energy facilities had been attacked 2,900 times since
March 2025. The attack on Poltava region temporarily cut power to consumers, which has since
been restored, Governor Volodymyr Kohut said in a statement on the Telegram messaging app.
Significant parts of the northern city of Sumy were left without power, the energy ministry said. All
water utility facilities were relying on emergency backups as of Wednesday morning, said Serhii
Kryvosheienko, the head of Sumy city military administration. Healthcare facilities also used backup
power sources, he added.
The Ukrainian Air Force said it had downed 74 drones out of 95 launched by Russia overnight, and
that 21 drones had struck nine locations around the country. Russia has denied targeting civilians
since launching its full-scale invasion in February 2022 but says energy systems and other
infrastructure are legitimate targets because they help Ukraine's war effort.

 Hawk Energy Sees Oil at averaging $70-$75 This Year with positive Growth
 That’s a ‘foreseeable & sensible range,’ Hawk Energy CEO M. Al Shihabi says
 Demand set to grow to from 103.8 to 105.5 MBD MBD, in 2025: Al Awadhi says

NewBase Special Coverage
The Energy world – August 28 -2025
CLEAN ENERGY
Global jet fuel consumption growth Year 2025 - 2030
NewBase Energy + IEA + IACO
Global jet fuel demand is projected to increase significantly between 2025 and 2030, driven by
strong air traffic growth from economic expansion and a growing middle class. While forecasts vary,
one expert estimated total jet-fuel demand will reach 7.62 million barrels a day in 2025.
The increasing demand is expected to outpace Sustainable Aviation Fuel (SAF) production capacity
in the near term, creating a significant gap that the industry must fill to meet decarbonization goals.
Key Drivers for Growth
Air Traffic Growth:
The International Air Transport Association (IATA) projects continued growth in air traffic, measured
in Revenue Passenger Kilometers (RPK).
Economic Expansion:
Global GDP growth fuels both business and leisure travel, contributing to higher jet fuel demand.
Expanding Middle Class:
A growing global middle class is more likely to travel by air, increasing demand.
Urbanization:
A further increase in the urban population creates a greater need for efficient air links.

The SAF Situation
SAF Growth:
SAF production doubled in 2024 and is expected to more than double again in 2025.
Production vs. Demand:
The overall demand for jet fuel is expected to grow, and industry analysis suggests that SAF
demand will outpace production capacity around 2030, creating a shortfall that will require a more
diversified approach to fuel supply.
Mandates:
Government mandates, such as those in the EU and UK starting in 2025, are expected to stimulate
SAF demand growth.
Industry Trends
Increased Utilization:
The aviation industry is using its fleets more to meet demand, which includes more flying hours from
existing aircraft.
Shift in Demand:
There's a notable trend of increasing demand for aviation fuels while demand for ground transport
fuels is expected to decline near the same period.
what drives aviation’s net zero transition
Just a few years ago, the idea of reaching this goal may have seemed like a long shot. Today, the
entire aviation sector continues to be committed to this goal – a message all aviation sector
participants / companies reaffirmed this.
It remains ambitious and certainly not without its challenges, but it is no longer a distant dream: it is
a work in progress. With this clear 2050 goal in sight, there has been a move towards championing
more policy support in many countries, and greater investment in the decarbonisation of the sector.

Just to highlight a few examples of how far the world we have come over the last five years:
 Sustainable aviation fuel (SAF) production reached about one million tonnes in 2024, while
this is roughly 0.3% of total jet fuel use, it is double the output of just a year prior. In 2025,
output is expected to more than double again to 2.1 million tonnes, signaling an accelerating
trajectory for SAF supply. As of this year, there are 11 approved pathways for SAF
production, and a further 11 currently being assessed, which help diversify supply and create
a menu of SAF options around the world, particularly in developing nations.
 Over 50 airlines worldwide, covering roughly 40% of global passenger traffic, have pledged
to SAF goals. Globally there are similar developments on the airport side, almost 100 airports
globally have had ongoing SAF deliveries since 2024. Business aviation is playing their part
as well, having pledged to the net-zero 2050 target in tandem with commercial airlines,
actively adopting efficiency measures.
 Manufacturers produce the world’s most fuel-efficient aircraft and engines, and work on
electric and hydrogen propulsion technologies.
 Airports are taking measures to increase efficiency of ground handling, infrastructure and
transportation, while air navigation service providers work towards creating more efficient
flight paths.
These industry actions are supported by governments across the globe: Around 45 countries, are
now developing or implementing policies to speed up the uptake of the approximately 23 million
tonnes of SAF needed by 2030.
None of this progress has happened in isolation. The International Civil Aviation Organization ICAO
has in many ways facilitated not just a joint commitment but is supporting its realisation.
The path to net zero carbon is driven by multilateralism. The agreement by ICAO Member States
on a long-term aspirational goal of net-zero carbon emissions by 2050 was a shining example of
what we can accomplish if we all agree on a common denominator.

ICAO’s role in coordinating this progress cannot be overstated: By bringing together more than 190
nations, ICAO provides the forum for States to coordinate action, align policies, and implement
frameworks that serve as solutions for climate action on a global scale.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – the first-ever
global market-based measure for any sector – is one example of how ICAO has helped to turn
ambition into action.
Airlines will need to purchase $20-30 billion in approved offsets for 1.2-2 billion tonnes of CO2. This
represents around 70% of the growth in international air transport emissions during the lifetime of
the scheme.
This is the result of extensive negotiations by developed and developing countries, the ICAO
system, industry and civil society, and represents a measure that will be effective without having a
disproportionately negative impact on developing nations and their capacity for growth.
A total of 130 states have now volunteered for the first stage (a new addition from Dominca which
joined today), making it likely to be one of the most successful UN-level carbon management
projects.
The progress of recent years has been truly encouraging. The world have moved from aspiration
to action and built a strong foundation for the next phase of aviation’s net zero journey, but the
world must acknowledge and actively address the challenges on the way.
The hardest work of scaling up from those first millions of tonnes of SAF to the hundreds of millions
needed, and deploying new technologies at global scale, still lies ahead. Achieving the objective
will require nothing less than a concerted push from all of countries in the coming decades.
This is a call to action for every stakeholder in aviation’s ecosystem. Governments have shown
leadership through ICAO; now it is urging them to continue translating that leadership into concrete
national policies and international collaboration.
Meanwhile, industry partners such as airlines, airports, manufacturers, fuel producers, and air
navigation service providers continue to invest, innovate, and share their knowledge. Institutions
and energy companies, too, are critical players; the latter of which have recently scaled back their
initial commitments on SAF production.
It is up to governments to introduce measures that will hold oil companies truly accountable and
ensure their crucial support in the scale-up of SAF. It will take unified ambition from all corners to
overcome the hurdles of this energy transition, whether it’s improving the economic viability of SAF,
commercialising hydrogen and electric propulsion systems, or upgrading infrastructure across the
world.
The next three to five years will be a vital time for the decarbonisation of yjis sector. The world need
to demonstrate a continued commitment, to ensure that the early gains we’ve seen can be solidified
into long-term transformation.
Air traffic will continue to increase every year to serve a global population that sees great benefits
in connectivity, and with it the need to decouple carbon emissions from growth becomes even more
important.
As impacts are felt by citizens with more frequent flooding and wildfires, climate change will
increasingly be a part of public consciousness, with greater demands for political, consumer and
corporate action.

U.S. jet fuel consumption & growth
U.S. jet fuel consumption growth has slowed in 2025, following a period of rapid consumption growth
after 2020, as U.S. air travel recovered from the COVID-19 pandemic.
IEA We forecast the slowdown in jet fuel consumption growth will continue through 2026, falling
below both the accelerated rate of the previous four years and the longer-term growth rate seen
during the 2010s.
Data source: U.S. Energy Information Administration, Short-Term Energy Outlook (STEO), August 2025
Note: Growth rates are compound annual growth rates for 2010 to 2019, 2020 to 2024, and 2024
to 2026. IEA use product supplied to estimate consumption.
Contributing factors include rising economic concerns weighing on flight demand and ongoing
improvements in commercial aircraft fleet fuel economy.
In 2020, annual average U.S. jet fuel consumption fell nearly 40% when efforts to mitigate the
COVID-19 pandemic substantially reduced commercial air travel.
As commercial air travel recovered over the next four years, jet fuel consumption grew at an
annualized rate of 12%, more than five times faster than the growth rate from 2010 to 2019.
U.S. commercial air travel fully recovered by 2024 when available seat miles, a measure of aircraft
carrying capacity, surpassed 2019 levels for both domestic and international travel.
Passenger volumes, as measured by the U.S. Transportation Security Administration, declined in
the second quarter of 2025 compared with the previous year for the first time since the pandemic
amid economic uncertainty.
The University of Michigan’s April 2025 Surveys of Consumers found consumers perceived
increasing risks to the economy, in large part due to ongoing uncertainty around trade policy and
the potential for a resurgence of inflation.

Major U.S. commercial airlines lowered their profit estimates for 2025 because of weakening air
travel demand in their outlooks. Although consumer confidence started to recover in June, it
remains lower than at the start of the year.
Data source: U.S. Energy Information Administration and U.S. Bureau of Transportation Statistics
An increasingly fuel-efficient U.S. commercial aircraft fleet is also contributing to slowing growth in
jet fuel consumption. The average fuel economy of U.S. carriers—in terms of available seat miles
per gallon—increased from 56 available seat miles per gallon in 2010 to 67 available seat miles per
gallon in 2024, up 19%.
This fuel-efficiency trend is expected to continue, contributing to our forecast deceleration in jet fuel
consumption growth. After a slowdown in new aircraft deliveries in 2024, Cerium, an aviation
analytics provider, expects aircraft deliveries to increase in 2025.
This increase in deliveries should drive increased commercial fleet fuel economy as older models
are switched out for more energy efficient newer ones.

NewBase Energy News 28- August - Issue No. 1820 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 Energies
program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time,
see contact details above.

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