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NewBase Energy News 11 May 2020 - Issue No. 1337 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: Barakah nuclear plant to meet the timeline, says Enec CEO
ENEC + The National + NewBas
Emirates Nuclear Energy Corporation (Enec) said following the successful loading of fuel
assemblies into the reactor, Unit 1 is in an advanced stage of start-up, while tests are still on at units
2, 3 and 4 following the completion of all construction work, said a top official.
"The Unit 1 will reach criticality very soon, and the COVID-19 pandemic has not derailed our plans.
We have 700 employees working on the project to meet the timeline," said Enec CEO Mohamed Al
Hammadi. Pictured in frame below
Al Hammadi was having a virtual fireside chat recently with Frederick Kempe, President and CEO
of the Atlantic Council Global Energy Centre, on the progress being made at the Barakah Nuclear
Energy Plant, the impact of the COVID-19 pandemic on energy systems, and the importance of
decarbonised, reliable and secure energy systems in the future.
www.linkedin.com/in/khaled-al-awadi-38b995b
Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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The online conversation was held under the theme of ‘COVID-19 and the Future of the
Decarbonised Global Power System’. The event forms part of the Atlantic Council’s evolving
discussions and analysis of the impacts of COVID-19 and the state of the global energy industry.
Al Hammadi began by highlighting how the UAE Peaceful Nuclear Energy Programme has and will
continue to power the future social and economic growth of the nation. The programme, he stated,
was simultaneously positioning the UAE at the forefront of global efforts to decarbonise the
electricity sector.
"The Barakah plant, the Arab World’s first peaceful nuclear energy facility located in the Al Dhafra
region of Abu Dhabi, will change the way the UAE powers its growth," remarked Al Hammadi.
"Producing 5.6 gigawatts of electricity while preventing the release of more than 21 million tonnes
of CO2 emissions annually, the Barakah Plant will power the UAE with clean, safe and reliable
baseload electricity," he stated.
"It is also providing countless high-value jobs through the establishment of a sustainable local
nuclear energy industry and supply chain," he added. Al Hammadi pointed out that the Barakah
Plant and nuclear energy
globally was also directly
contributing to the
decarbonisation of the
electricity sector and the
growth of electrification.
In the UAE alone, the
emissions that will be
prevented by the operation of
the Barakah Plant are
equivalent to the removal of
3.2 million cars from the
nation’s road annually - this is
immensely significant within
the context of our efforts to
combat global warming and
address air pollution
challenges around the world,"
he added.-
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Oman: $6.7bn Liwa Plastics enters commissioning phase
Oman Observer –
OQ (formerly Oman Oil and Orpic Group) – the Sultanate’s energy powerhouse – has announced
the start of the commissioning phase of Liwa Plastics Industries Complex (LPIC), a mammoth
petrochemicals project that seeks to optimize value generation from Oman’s hydrocarbon
resources.
“This transformational project will firmly put the Sultanate on the global petrochemicals map and
enhance OQ,” said the wholly government-owned energy conglomerate in a tweet.
Located within Sohar Port, with an upstream Natural Gas Extraction (NGL) around 300km away in
Fahud, Liwa Plastics is OQ’s signature investment. In addition to maximizing value addition to the
nation’s hydrocarbon wealth, the $6.7 billion mega venture will also spawn investments in a wide
array of downstream activities. The LPIC steam cracker project will allow polyethylene (PE) to be
produced in Oman for the first time, as well as strengthen the company’s polypropylene capabilities.
At full capacity, Liwa Plastics will boost OQ’s production of polyethylene and polypropylene to 1.4
million tons. The product portfolio will include linear Low-Density Polyethylene (LLDPE), High-
Density Polyethylene (HDPE) and Polypropylene (PP). The improvement of the product mix helps
OQ’s partners to address the growing global demand for innovative polymers.
In Q1 2019, OQ announced ambitious plans to invest $28bn in 9 core assets over the next 10 years.
These core assets include OXEA, one of the leading companies for oxo chemicals, with
headquarters in Germany and fully owned by OQ since 2013.
Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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Iraq: DNO completes Iraq well testing, announces budget cuts
DNO +NewBase
UAE-linked Norwegian oil and gas operator DNO has announced completion of testing and
appraisal of the Baeshiqa-2 exploration well in the Kurdistan Region of Iraq. The testing has proven
oil and gas in three separate Triassic aged reservoirs, Kurra China A, B and C, with testing also
carried out on shallower Jurassic-aged reservoirs.
Evaluation of the test results will determine next
steps towards further appraisal and
assessment of commerciality. DNO’s largest
shareholder is RAK Petroleum. Spudding of
the new Zartik-1 well, 15 km. from Baeshiqa,
targeting Jurassic reservoirs, is scheduled for
15th May.
DNO acquired a 32 per cent interest and
operatorship of the Baeshiqa licence in 2017.
Partners include ExxonMobil with 32 per cent,
Turkish Energy Company with 16 per cent and
the Kurdistan Regional Government with 20
per cent.
The company has also reported that it has identified and implemented 2020 budget cuts of $350
million or 35 per cent across all categories of spending as it moved early and quickly to protect its
personnel and operations and preserve its cash position in response to the devastating impact of
the pandemic.
The company exited the first quarter of 2020 with a cash balance of $543 million, up from $486
million at the end of 2019.
"One of the first to hit the brakes, DNO is positioned to be one of the first to press down on the
accelerator with signs of sustained market recovery, notably through short-cycle drilling in
Kurdistan," remarked Bijan Mossavar-Rahmani, DNO’s Executive Chairman of both DNO and RAK
Petroleum.
"Lifting costs below $5 per barrel in Kurdistan give DNO competitive advantage when oil prices are
weak and strong cash flow when oil prices recover," he added.
Releasing its interim first quarter results today, DNO reported revenues of $206 million, largely
driven by lower oil prices and a net loss of $40 million on the back of impairments of its North Sea
assets, again driven by lower oil prices. Production was split 80:20 between the Kurdistan region of
Iraq and the North Sea.
DNO’s Company Working Interest production averaged 99,857 barrels of oil equivalent per day
(boepd) during the quarter, of which Kurdistan contributed 81,221 barrels of oil per day (bopd) and
the North Sea 18,636 boepd.
Gross production at the DNO-operated Tawke and Peshkabir fields in Kurdistan averaged 61,493
barrels and 53,714 bopd, respectively. After completing five development wells in the licence during
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the quarter, DNO released four drilling rigs in Kurdistan but continues to use its workover rig to
service production wells.
In the North Sea, the Bergknapp exploration well, in which DNO has a share of 30 percent,
discovered hydrocarbons in multiple formations of poor to good reservoir quality with recoverable
resources ranging 26-97 million barrels of oil equivalent (MMboe).
The discovery is Norway’s largest to date in 2020 and the probability of commerciality is considered
high. Meanwhile, the Peshkabir-to-Tawke gas capture, transport and reinjection project to
effectively end CO2 emissions at Peshkabir and boost oil recovery at Tawke is completed and
undergoing commissioning.-
About DNO – Iraq
In 2004, DNO was the first international oil company to enter the Kurdistan region of Iraq, at a time
when the Kurdish region’s oil industry was virtually non-existent. DNO re-entered the North Sea
during 2017, acquiring offshore exploration licenses in Norway and the UK. This has since expanded
to include a number of producing assets offshore Norway and the UK.
Wherever we operate, we look to minimize risk and maximize success through smart exploration,
and, when a discovery is made, fast-track production. We have developed a best-in-class core
competency in the fractured carbonate plays that are characteristic of the MENA region.
At our flagship Tawke oil field in Kurdistan, we began production in 2007 – just two years after the
start of exploration activities. The neighboring Peshkabir field was brought on production in 2017.
We are now the leading international operator in production and reserves in Kurdistan, one of the
world’s remaining largely untapped onshore hydrocarbons frontiers.
DNO has among the lowest finding, development costs of any oil company anywhere in the world.
Combined with low lifting costs, this gives us a significant competitive advantage when oil prices
are weak and strong cash flow when oil prices are robust.
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Saudi Aramco suspends Noble Scott Marks jack-up rig
Off Shore Energy - Bojan Lepic
Oil giant Saudi Aramco has suspended the contract for one of Noble Corporation’s offshore drilling
rigs. Noble Corp. said in its financial report on Wednesday that the contract for the Noble Scott
Marks jack-up rig, located off Saudi Arabia, would be suspended at the request of the client.
The rig is currently under contract with Saudi Aramco which previously requested that Noble
Corp. reduces the rig’s dayrate from $159,000.
At the time, the Saudi company asked for the dayrates of four jack-up rigs to be reduced – Noble
Scott Marks, Noble Roger Lewis, Noble Joe Knight, and Noble Johnny Whitstine – with the request
being taken ‘under review’ by Noble.
The offshore drilling contractor added that Saudi Aramco suspended the rig for a period of up to
365 days, with the suspension starting in the first half of May following the conclusion of the well in
progress.
It is worth noting that the company did not provide any information regarding the previous dayrate
reduction request.
Noble stated that during the suspension period, no dayrate would be paid. However, the company
has the right to market the rig in pursuit of other work opportunities in the region. Regardless of the
suspension, the rig is still under contract with Saudi Aramco until late October 2022.
Noble reported a net loss in its financial report of $1.1 billion on total revenues of $281 million. The
first quarter 2020 result included net after-tax unfavourable items totalling $977 million – including
a pre-tax non-cash charge totalling $1.1 billion.
These related to the impairment of the semi-submersible rigs Noble Danny Adkins and Noble Jim
Day, the drillships Noble Bully I and Noble Bully II, and certain capital spares.
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India: LNG imports growth will depend on completion of
connecting pipelines , U.S. EIA, International Group of LNG Importers (GIIGNL)
India has been the world’s fourth-largest importer of liquefied natural gas (LNG) since 2011,
gradually increasing LNG imports as the country’s domestic natural gas production declined and
domestic consumption increased.
India’s LNG import capacity more than doubled during the past 10 years, and the U.S. Energy
Information Administration (EIA) expects it to increase by a third in the next 3 years as regasification
facilities currently under construction come online.
However, the construction of domestic pipelines to move LNG from the coastal import facilities to
major demand centers further inland has experienced delays. Future growth in India’s LNG imports
will depend on the timely completion of natural gas pipeline networks.
In recent years, growth in India’s LNG imports has been driven by declining domestic natural gas
production and growing consumption, particularly in the industrial sector (where natural gas is used
in the production of fertilizer) and City Gas Distribution network.
India’s domestic production of natural gas, 70% of which is located offshore, has experienced a
steady decline, from 4.4 billion cubic feet per day (Bcf/d) in 2012 to 2.9 Bcf/d in 2019, and it has
limited potential for further growth.
India’s LNG imports have grown from 31% of the country’s natural gas supply in 2012 to more than
50% in 2019. India does not import natural gas by pipeline and has no plans to build natural gas
pipelines through the deserts and mountains that form much of its northern borders.
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Source: U.S. Energy Information Administration, based on India's Ministry of Petroleum and Natural Gas and Global Trade Tracker
Currently, natural gas constitutes a relatively small share (6%) of India’s total primary energy
consumption. In 2019, the Indian government set a goal to increase the share of natural gas from
6.2% in 2018 to 15% by 2030. EIA expects future growth in consumption primarily in the industrial
and power generation sectors.
Earlier this year, India commissioned its sixth LNG import terminal, bringing the total regasification
capacity to 5.2 Bcf/d. Four more LNG import terminals—all but one of which are on the western
coast (Arabian Sea)—are currently under construction and are expected to come online by 2023,
adding 2.5 Bcf/d of LNG import capacity.
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Future growth in India's LNG imports is contingent on connecting LNG regasification terminals on
coasts to demand centers further inland via pipeline. Northwestern India has a highly developed
natural gas infrastructure, and both Hazira and Dahej are the most highly utilized terminals in India
(at 97% and 110%, respectively). However, the southern and eastern regions of the country lack
pipelines to move natural gas from coastal LNG import terminals to major demand centers further
inland.
The lack of pipeline infrastructure near LNG terminals is affecting both existing and planned LNG
terminals. In southwestern India, LNG imports to the existing Kochi terminal are currently limited to
local markets; pipelines expanding to nearby Mangalore are expected to come online in 2020 and
Banagalore in 2022.
Similarly, new pipelines are planned to connect the existing Ennore LNG terminal to areas beyond
nearby Chennai. In northeastern India, new pipelines that are planned to come online within the
next three years would connect the Dhamra LNG terminal currently under construction to nearby
Kolkata as well as existing pipelines in northwest India.
Source: U.S. EIA, based on International Group of Liquefied Natural Gas Importers (GIIGNL) annual LNG trade reports
Although India has expanded the number of countries it imports LNG from since 2016, Qatar
remains the main LNG supplier to India because of a relatively short transportation distance: an
LNG tanker can leave Qatar and reach India in three days. I
ndia’s LNG imports from the United States have grown to a total of 0.25 Bcf/d in 2019 and are
expected to grow as new commercial contracts are considered between the two countries. In 2019,
India ranked as the seventh-highest destination for U.S. LNG exports, receiving 5% of the U.S. total
last year.
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U.S: ethanol producer forced to find a new market — hand sanitizer
CNBC + NewBase
Where gasoline goes, ethanol follows, and both have been on a path to unprofitability.
Ethanol prices have collapsed as gasoline demand dropped by half due to COVID-19 shutdowns.
That because ethanol —a biofuel derived from corn — makes up about 10% of the gas in your tank.
So imagine you’re the guy right now who founded the world’s largest ethanol producing company.
“We produce about two billion gallons of ethanol per year,” says Jeff Broin, founder and CEO of
POET, based in Sioux Falls, South Dakota.
His company runs more than two dozen ethanol plants in the U.S., though currently three plants are
closed, and 10% of his workforce is laid off. “It’s down to about half capacity in a lot of plants,” he
said.
However, in two plants, POET is doing something new. It has re-engineered systems to make
harmaceutical grade hand sanitizer. “It takes some retrofitting,” says Broin. “That’s underway,
literally working around the clock.”
The conversion from ethanol to hand sanitizer comes with “some pretty significant costs,” he says.
The alcohol has to be further distilled to meet pharmaceutical grade standards, then it needs to be
mixed with other ingredients to make hand sanitizer. “And then we take it to a bottling facility, which
has not been something we’ve done in the past.”
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The company is donating much of the hand sanitizer to front line healthcare workers near its
headquarters, but it is also starting to sell some of the hand sanitizer online and in retail stores.
The new product helps offset losses in ethanol. Just as gasoline demand affects ethanol, ethanol
production has had its own ripple effects. The government says 40% of the nation’s corn crop now
goes into making the biofuel, and with less of it being produced, corn is even less profitable.
“Farmers were already oversupplied with grain, and this exacerbates issues on the farm,” Broin
says.
Livestock producers often buy a high-protein feed which is a byproduct of the ethanol process. In
a normal year, POET would produce and sell 10 billion pounds of that feed. Not this year. Beer and
soda companies use the CO2 that is another byproduct, and so do meat packing plants which use
carbon dioxide to flash freeze meat. Some are now concerned we may end up with a CO2 shortage.
However, gasoline demand is showing signs of a comeback, and ethanol futures are well off their
lows from a month ago. Even so, Broin says POET is going to stay in the hand sanitizer business.
He predicts it could eventually provide as much as 5% of income.
“I think the demand for hand sanitizer will increase over time,” he says. “People need to stay safe.”
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NewBase May 11-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil prices drop amid supply glut, fears of second coronavirus wave
Reuters + NewBase
Oil prices fell on Monday as concern over a persistent glut and economic gloom caused by the
coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top
producers.
Brent crude futures LCOc1 were down 51 cents, or 1.65%, at $30.46 a barrel by 7:31 GMT, while
U.S. West Texas Intermediate crude futures CLc1 fell 41 cents, or 1.66%, to $24.33 a barrel.
Both benchmarks have notched up gains over the past two weeks as countries have eased business
and social lockdowns imposed to cope with the coronavirus and fuel demand has rebounded
modestly. Oil production worldwide is also declining.
Oil price special
coverage
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But possible signs of a second wave of coronavirus infections in northeast China and South Korea
worried investors even as more countries started to pivot towards easing pandemic restrictions in
moves that could support oil demand.
Goldman Sachs analysts said there was still concern that demand will stay weak in 2021, with
worries about a second wave of COVID-19 cases and only a modest increase in personal or
corporate travel.
Global oil demand has plummeted by about 30% as the coronavirus pandemic curtailed movement
across the world, building up inventories globally.
Fears that the United States is running out of storage space triggered WTI prices crashing into
negative territory last month, prompting some U.S. producers to slash output.
In a sign of that impact, the number of operating oil and gas rigs in the world’s largest oil producer
fell to 74 in the week to May 8, a record low according to data released on Friday from energy
services firm Baker Hughes Co (BKR.N) going back to 1940.
“People are surprised by how quickly the U.S. is shutting in production and that’s exactly what we
need in order to support prices,” said Tony Nunan, a senior risk manager at Mitsubishi Corp in
Tokyo.
“There’s another 10 days before the June contract expires ... if the WTI contract can avoid a crash
going into expiry, hopefully we’ve seen the bottom.”
U.S. drillers cut oil & gas rigs to historic low -Baker Hughes
The number of operating oil and natural gas rigs fell to an all-time low - reflecting data going back
80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash
in fuel demand.
The rig count, an early indicator of future output, fell by 34 to a record low of 374 in the week to May
8, according to data on Friday from energy services firm Baker Hughes Co (BKR.N) going back to
1940. The prior all-time low was 404 rigs in May 2016.
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Fuel demand has declined about 30% worldwide and companies are making drastic cuts to
spending, laying off thousands of workers and closing production to offset a global glut.
Consumption has picked up modestly in the last couple of weeks, but the overhang of supply is
expected to last for months, if not years.
Drillers have cut an average of 52 rigs per week since mid March after crude prices started to plunge
due to the coronavirus and a brief oil price war between Saudi Arabia and Russia.
U.S. oil rigs fell by 33 this week to 292, their lowest since September 2009, while gas rigs fell by
one to 80, their lowest on record according to Baker Hughes data going back to 1987.
“The great coronavirus derigging kicked off mid to late in the first quarter, impacting well starts
across the major U.S. oil shale plays,” analysts at Enverus Rig Analytics said, noting the rig count
was down 38% in April and 62% over the last year.
Analysts expect companies will keep pulling rigs for the rest of the year and will be hesitant to
activate many new units in 2021 and 2022.
Raymond James projected the oil and gas rig count would collapse from around 800 at the end of
2019 to about 400 by the middle of the year and 200 at the end of 2020. The investment bank
expects an average of just 225 operating rigs in 2021.
The count in Canada already fell to a record low of just 26 rigs two weeks ago, according to Baker
Hughes.
U.S. crude futures CLc1 were trading around $24 a barrel on Friday, down about 60% since the
start of the year as lockdowns to stop the pandemic cut global economic growth and energy
demand.
Cowen & Co said 37 of the independent exploration and production companies that the financial
services firm tracks have cut spending plans since early March when crude prices started to plunge,
implying a 45% decline in 2020 capex. Before the price collapse, it forecast a drop of 11%.
Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase Special Coverage
The Energy world - Special 01- May-2020
Oil Stockpiles Have Stopped Growing in the World’s Biggest Buyer
Bloomberg - Dan Murtaugh
The great oil glut of 2020 may have already peaked in the world’s biggest crude importer.
Crude inventories in China have shrunk in recent weeks after rising to record levels, according to
analysts and satellite observations. Supplies have been drawn out of storage as refineries ramp up
operations to meet rising demand from an economy emerging from lockdown.
Inventories Easing
Satellite observations show China's oil stockpiles start to decline
Source: Orbital Insight Inc.
Note: Orbital uses optical and radar satellite observations to measure the amount of crude in tanks
with floating roofs. It estimates that floating roof storage accounts for about 90% of China's onshore
capacity.
Inventories drawing in the world’s biggest importer is an early sign that rebalancing may have
begun in the global oil market after an epic collapse in demand, according to Morgan Stanley.
Stockpiles dwindled even as oil imports in April increased from the previous month, according to
Customs data.
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“The combination of inventories falling and strong imports implies really solid refining activity,” said
Geoffrey Craig, an analyst with Ursa Space Systems Inc., which uses synthetic aperture radar to
track storage tank fills. “You saw them build aggressively in late February and into the end of March,
and since then they’ve absolutely plateaued and have come off a bit.”
Refiners are drawing oil out of inventory to process into gasoline and diesel as traffic once again
snarls China’s cities following the lockdown earlier this year to halt the spread of the coronavirus.
Even as driving demand dries up in the rest of the world, rush hours from Beijing to Shenzhen at
the end of last month are busier than they were in the same period last year.
Independent refiners in Shandong in northeast China are operating at record rates, while state-
owned giant PetroChina Co. said it was ramping up fuel production after it fell in the first quarter.
“The trend in April was a net withdrawal driven by higher refinery runs and lucrative margins,” said
Yao Li, chief executive officer of consultancy SIA Energy, which estimated inventories fell by 9.5
million barrels in April after growing by 161 million in the first quarter.
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China imported about 9.9 million barrels of crude a day in April, up 1.7% from March but below last
year’s average of about 10.2 million barrels a day, the most in the world. Imports of crude oil and
refined products are likely to rise in May, which could put tighten storage capacity, China Port
Association said last week in a statement.
Unlike the U.S. government, which publishes weekly snapshots of its oil inventories, China rarely
provides insight on it stockpiles, leaving analysts to come up with complex formulas to estimate
levels or use satellite observations to try to estimate how full the country’s floating-roof storage tanks
are.
Freeing Up Space
Ursa estimates show crude oil in tanks drop from a record high
Source: Ursa Space Systems Inc.
Note: Crude inventories as percentage of nameplate capacity of observed tanks
That’s what Ursa and Orbital Insight Inc. do. The companies use different methods, but both have
shown a recent drop. Ursa pegged peak inventory levels in late March, while Orbital saw supplies
peaking mid-April and falling off since then, according to data provided by the companies.
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New base energy news 11 may 2020 issue no. 1337 senior editor eng. khaled al awadi

  • 1. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 11 May 2020 - Issue No. 1337 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: Barakah nuclear plant to meet the timeline, says Enec CEO ENEC + The National + NewBas Emirates Nuclear Energy Corporation (Enec) said following the successful loading of fuel assemblies into the reactor, Unit 1 is in an advanced stage of start-up, while tests are still on at units 2, 3 and 4 following the completion of all construction work, said a top official. "The Unit 1 will reach criticality very soon, and the COVID-19 pandemic has not derailed our plans. We have 700 employees working on the project to meet the timeline," said Enec CEO Mohamed Al Hammadi. Pictured in frame below Al Hammadi was having a virtual fireside chat recently with Frederick Kempe, President and CEO of the Atlantic Council Global Energy Centre, on the progress being made at the Barakah Nuclear Energy Plant, the impact of the COVID-19 pandemic on energy systems, and the importance of decarbonised, reliable and secure energy systems in the future. www.linkedin.com/in/khaled-al-awadi-38b995b
  • 2. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 2 The online conversation was held under the theme of ‘COVID-19 and the Future of the Decarbonised Global Power System’. The event forms part of the Atlantic Council’s evolving discussions and analysis of the impacts of COVID-19 and the state of the global energy industry. Al Hammadi began by highlighting how the UAE Peaceful Nuclear Energy Programme has and will continue to power the future social and economic growth of the nation. The programme, he stated, was simultaneously positioning the UAE at the forefront of global efforts to decarbonise the electricity sector. "The Barakah plant, the Arab World’s first peaceful nuclear energy facility located in the Al Dhafra region of Abu Dhabi, will change the way the UAE powers its growth," remarked Al Hammadi. "Producing 5.6 gigawatts of electricity while preventing the release of more than 21 million tonnes of CO2 emissions annually, the Barakah Plant will power the UAE with clean, safe and reliable baseload electricity," he stated. "It is also providing countless high-value jobs through the establishment of a sustainable local nuclear energy industry and supply chain," he added. Al Hammadi pointed out that the Barakah Plant and nuclear energy globally was also directly contributing to the decarbonisation of the electricity sector and the growth of electrification. In the UAE alone, the emissions that will be prevented by the operation of the Barakah Plant are equivalent to the removal of 3.2 million cars from the nation’s road annually - this is immensely significant within the context of our efforts to combat global warming and address air pollution challenges around the world," he added.-
  • 3. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 3 Oman: $6.7bn Liwa Plastics enters commissioning phase Oman Observer – OQ (formerly Oman Oil and Orpic Group) – the Sultanate’s energy powerhouse – has announced the start of the commissioning phase of Liwa Plastics Industries Complex (LPIC), a mammoth petrochemicals project that seeks to optimize value generation from Oman’s hydrocarbon resources. “This transformational project will firmly put the Sultanate on the global petrochemicals map and enhance OQ,” said the wholly government-owned energy conglomerate in a tweet. Located within Sohar Port, with an upstream Natural Gas Extraction (NGL) around 300km away in Fahud, Liwa Plastics is OQ’s signature investment. In addition to maximizing value addition to the nation’s hydrocarbon wealth, the $6.7 billion mega venture will also spawn investments in a wide array of downstream activities. The LPIC steam cracker project will allow polyethylene (PE) to be produced in Oman for the first time, as well as strengthen the company’s polypropylene capabilities. At full capacity, Liwa Plastics will boost OQ’s production of polyethylene and polypropylene to 1.4 million tons. The product portfolio will include linear Low-Density Polyethylene (LLDPE), High- Density Polyethylene (HDPE) and Polypropylene (PP). The improvement of the product mix helps OQ’s partners to address the growing global demand for innovative polymers. In Q1 2019, OQ announced ambitious plans to invest $28bn in 9 core assets over the next 10 years. These core assets include OXEA, one of the leading companies for oxo chemicals, with headquarters in Germany and fully owned by OQ since 2013.
  • 4. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 4 Iraq: DNO completes Iraq well testing, announces budget cuts DNO +NewBase UAE-linked Norwegian oil and gas operator DNO has announced completion of testing and appraisal of the Baeshiqa-2 exploration well in the Kurdistan Region of Iraq. The testing has proven oil and gas in three separate Triassic aged reservoirs, Kurra China A, B and C, with testing also carried out on shallower Jurassic-aged reservoirs. Evaluation of the test results will determine next steps towards further appraisal and assessment of commerciality. DNO’s largest shareholder is RAK Petroleum. Spudding of the new Zartik-1 well, 15 km. from Baeshiqa, targeting Jurassic reservoirs, is scheduled for 15th May. DNO acquired a 32 per cent interest and operatorship of the Baeshiqa licence in 2017. Partners include ExxonMobil with 32 per cent, Turkish Energy Company with 16 per cent and the Kurdistan Regional Government with 20 per cent. The company has also reported that it has identified and implemented 2020 budget cuts of $350 million or 35 per cent across all categories of spending as it moved early and quickly to protect its personnel and operations and preserve its cash position in response to the devastating impact of the pandemic. The company exited the first quarter of 2020 with a cash balance of $543 million, up from $486 million at the end of 2019. "One of the first to hit the brakes, DNO is positioned to be one of the first to press down on the accelerator with signs of sustained market recovery, notably through short-cycle drilling in Kurdistan," remarked Bijan Mossavar-Rahmani, DNO’s Executive Chairman of both DNO and RAK Petroleum. "Lifting costs below $5 per barrel in Kurdistan give DNO competitive advantage when oil prices are weak and strong cash flow when oil prices recover," he added. Releasing its interim first quarter results today, DNO reported revenues of $206 million, largely driven by lower oil prices and a net loss of $40 million on the back of impairments of its North Sea assets, again driven by lower oil prices. Production was split 80:20 between the Kurdistan region of Iraq and the North Sea. DNO’s Company Working Interest production averaged 99,857 barrels of oil equivalent per day (boepd) during the quarter, of which Kurdistan contributed 81,221 barrels of oil per day (bopd) and the North Sea 18,636 boepd. Gross production at the DNO-operated Tawke and Peshkabir fields in Kurdistan averaged 61,493 barrels and 53,714 bopd, respectively. After completing five development wells in the licence during
  • 5. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 5 the quarter, DNO released four drilling rigs in Kurdistan but continues to use its workover rig to service production wells. In the North Sea, the Bergknapp exploration well, in which DNO has a share of 30 percent, discovered hydrocarbons in multiple formations of poor to good reservoir quality with recoverable resources ranging 26-97 million barrels of oil equivalent (MMboe). The discovery is Norway’s largest to date in 2020 and the probability of commerciality is considered high. Meanwhile, the Peshkabir-to-Tawke gas capture, transport and reinjection project to effectively end CO2 emissions at Peshkabir and boost oil recovery at Tawke is completed and undergoing commissioning.- About DNO – Iraq In 2004, DNO was the first international oil company to enter the Kurdistan region of Iraq, at a time when the Kurdish region’s oil industry was virtually non-existent. DNO re-entered the North Sea during 2017, acquiring offshore exploration licenses in Norway and the UK. This has since expanded to include a number of producing assets offshore Norway and the UK. Wherever we operate, we look to minimize risk and maximize success through smart exploration, and, when a discovery is made, fast-track production. We have developed a best-in-class core competency in the fractured carbonate plays that are characteristic of the MENA region. At our flagship Tawke oil field in Kurdistan, we began production in 2007 – just two years after the start of exploration activities. The neighboring Peshkabir field was brought on production in 2017. We are now the leading international operator in production and reserves in Kurdistan, one of the world’s remaining largely untapped onshore hydrocarbons frontiers. DNO has among the lowest finding, development costs of any oil company anywhere in the world. Combined with low lifting costs, this gives us a significant competitive advantage when oil prices are weak and strong cash flow when oil prices are robust.
  • 6. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 6 Saudi Aramco suspends Noble Scott Marks jack-up rig Off Shore Energy - Bojan Lepic Oil giant Saudi Aramco has suspended the contract for one of Noble Corporation’s offshore drilling rigs. Noble Corp. said in its financial report on Wednesday that the contract for the Noble Scott Marks jack-up rig, located off Saudi Arabia, would be suspended at the request of the client. The rig is currently under contract with Saudi Aramco which previously requested that Noble Corp. reduces the rig’s dayrate from $159,000. At the time, the Saudi company asked for the dayrates of four jack-up rigs to be reduced – Noble Scott Marks, Noble Roger Lewis, Noble Joe Knight, and Noble Johnny Whitstine – with the request being taken ‘under review’ by Noble. The offshore drilling contractor added that Saudi Aramco suspended the rig for a period of up to 365 days, with the suspension starting in the first half of May following the conclusion of the well in progress. It is worth noting that the company did not provide any information regarding the previous dayrate reduction request. Noble stated that during the suspension period, no dayrate would be paid. However, the company has the right to market the rig in pursuit of other work opportunities in the region. Regardless of the suspension, the rig is still under contract with Saudi Aramco until late October 2022. Noble reported a net loss in its financial report of $1.1 billion on total revenues of $281 million. The first quarter 2020 result included net after-tax unfavourable items totalling $977 million – including a pre-tax non-cash charge totalling $1.1 billion. These related to the impairment of the semi-submersible rigs Noble Danny Adkins and Noble Jim Day, the drillships Noble Bully I and Noble Bully II, and certain capital spares.
  • 7. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 7 India: LNG imports growth will depend on completion of connecting pipelines , U.S. EIA, International Group of LNG Importers (GIIGNL) India has been the world’s fourth-largest importer of liquefied natural gas (LNG) since 2011, gradually increasing LNG imports as the country’s domestic natural gas production declined and domestic consumption increased. India’s LNG import capacity more than doubled during the past 10 years, and the U.S. Energy Information Administration (EIA) expects it to increase by a third in the next 3 years as regasification facilities currently under construction come online. However, the construction of domestic pipelines to move LNG from the coastal import facilities to major demand centers further inland has experienced delays. Future growth in India’s LNG imports will depend on the timely completion of natural gas pipeline networks. In recent years, growth in India’s LNG imports has been driven by declining domestic natural gas production and growing consumption, particularly in the industrial sector (where natural gas is used in the production of fertilizer) and City Gas Distribution network. India’s domestic production of natural gas, 70% of which is located offshore, has experienced a steady decline, from 4.4 billion cubic feet per day (Bcf/d) in 2012 to 2.9 Bcf/d in 2019, and it has limited potential for further growth. India’s LNG imports have grown from 31% of the country’s natural gas supply in 2012 to more than 50% in 2019. India does not import natural gas by pipeline and has no plans to build natural gas pipelines through the deserts and mountains that form much of its northern borders.
  • 8. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 8 Source: U.S. Energy Information Administration, based on India's Ministry of Petroleum and Natural Gas and Global Trade Tracker Currently, natural gas constitutes a relatively small share (6%) of India’s total primary energy consumption. In 2019, the Indian government set a goal to increase the share of natural gas from 6.2% in 2018 to 15% by 2030. EIA expects future growth in consumption primarily in the industrial and power generation sectors. Earlier this year, India commissioned its sixth LNG import terminal, bringing the total regasification capacity to 5.2 Bcf/d. Four more LNG import terminals—all but one of which are on the western coast (Arabian Sea)—are currently under construction and are expected to come online by 2023, adding 2.5 Bcf/d of LNG import capacity.
  • 9. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 9 Future growth in India's LNG imports is contingent on connecting LNG regasification terminals on coasts to demand centers further inland via pipeline. Northwestern India has a highly developed natural gas infrastructure, and both Hazira and Dahej are the most highly utilized terminals in India (at 97% and 110%, respectively). However, the southern and eastern regions of the country lack pipelines to move natural gas from coastal LNG import terminals to major demand centers further inland. The lack of pipeline infrastructure near LNG terminals is affecting both existing and planned LNG terminals. In southwestern India, LNG imports to the existing Kochi terminal are currently limited to local markets; pipelines expanding to nearby Mangalore are expected to come online in 2020 and Banagalore in 2022. Similarly, new pipelines are planned to connect the existing Ennore LNG terminal to areas beyond nearby Chennai. In northeastern India, new pipelines that are planned to come online within the next three years would connect the Dhamra LNG terminal currently under construction to nearby Kolkata as well as existing pipelines in northwest India. Source: U.S. EIA, based on International Group of Liquefied Natural Gas Importers (GIIGNL) annual LNG trade reports Although India has expanded the number of countries it imports LNG from since 2016, Qatar remains the main LNG supplier to India because of a relatively short transportation distance: an LNG tanker can leave Qatar and reach India in three days. I ndia’s LNG imports from the United States have grown to a total of 0.25 Bcf/d in 2019 and are expected to grow as new commercial contracts are considered between the two countries. In 2019, India ranked as the seventh-highest destination for U.S. LNG exports, receiving 5% of the U.S. total last year.
  • 10. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 10 U.S: ethanol producer forced to find a new market — hand sanitizer CNBC + NewBase Where gasoline goes, ethanol follows, and both have been on a path to unprofitability. Ethanol prices have collapsed as gasoline demand dropped by half due to COVID-19 shutdowns. That because ethanol —a biofuel derived from corn — makes up about 10% of the gas in your tank. So imagine you’re the guy right now who founded the world’s largest ethanol producing company. “We produce about two billion gallons of ethanol per year,” says Jeff Broin, founder and CEO of POET, based in Sioux Falls, South Dakota. His company runs more than two dozen ethanol plants in the U.S., though currently three plants are closed, and 10% of his workforce is laid off. “It’s down to about half capacity in a lot of plants,” he said. However, in two plants, POET is doing something new. It has re-engineered systems to make harmaceutical grade hand sanitizer. “It takes some retrofitting,” says Broin. “That’s underway, literally working around the clock.” The conversion from ethanol to hand sanitizer comes with “some pretty significant costs,” he says. The alcohol has to be further distilled to meet pharmaceutical grade standards, then it needs to be mixed with other ingredients to make hand sanitizer. “And then we take it to a bottling facility, which has not been something we’ve done in the past.”
  • 11. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 11 The company is donating much of the hand sanitizer to front line healthcare workers near its headquarters, but it is also starting to sell some of the hand sanitizer online and in retail stores. The new product helps offset losses in ethanol. Just as gasoline demand affects ethanol, ethanol production has had its own ripple effects. The government says 40% of the nation’s corn crop now goes into making the biofuel, and with less of it being produced, corn is even less profitable. “Farmers were already oversupplied with grain, and this exacerbates issues on the farm,” Broin says. Livestock producers often buy a high-protein feed which is a byproduct of the ethanol process. In a normal year, POET would produce and sell 10 billion pounds of that feed. Not this year. Beer and soda companies use the CO2 that is another byproduct, and so do meat packing plants which use carbon dioxide to flash freeze meat. Some are now concerned we may end up with a CO2 shortage. However, gasoline demand is showing signs of a comeback, and ethanol futures are well off their lows from a month ago. Even so, Broin says POET is going to stay in the hand sanitizer business. He predicts it could eventually provide as much as 5% of income. “I think the demand for hand sanitizer will increase over time,” he says. “People need to stay safe.”
  • 12. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 12 NewBase May 11-2020 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Oil prices drop amid supply glut, fears of second coronavirus wave Reuters + NewBase Oil prices fell on Monday as concern over a persistent glut and economic gloom caused by the coronavirus pandemic combined to cancel out support from supply cuts at some of the world’s top producers. Brent crude futures LCOc1 were down 51 cents, or 1.65%, at $30.46 a barrel by 7:31 GMT, while U.S. West Texas Intermediate crude futures CLc1 fell 41 cents, or 1.66%, to $24.33 a barrel. Both benchmarks have notched up gains over the past two weeks as countries have eased business and social lockdowns imposed to cope with the coronavirus and fuel demand has rebounded modestly. Oil production worldwide is also declining. Oil price special coverage
  • 13. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 13 But possible signs of a second wave of coronavirus infections in northeast China and South Korea worried investors even as more countries started to pivot towards easing pandemic restrictions in moves that could support oil demand. Goldman Sachs analysts said there was still concern that demand will stay weak in 2021, with worries about a second wave of COVID-19 cases and only a modest increase in personal or corporate travel. Global oil demand has plummeted by about 30% as the coronavirus pandemic curtailed movement across the world, building up inventories globally. Fears that the United States is running out of storage space triggered WTI prices crashing into negative territory last month, prompting some U.S. producers to slash output. In a sign of that impact, the number of operating oil and gas rigs in the world’s largest oil producer fell to 74 in the week to May 8, a record low according to data released on Friday from energy services firm Baker Hughes Co (BKR.N) going back to 1940. “People are surprised by how quickly the U.S. is shutting in production and that’s exactly what we need in order to support prices,” said Tony Nunan, a senior risk manager at Mitsubishi Corp in Tokyo. “There’s another 10 days before the June contract expires ... if the WTI contract can avoid a crash going into expiry, hopefully we’ve seen the bottom.” U.S. drillers cut oil & gas rigs to historic low -Baker Hughes The number of operating oil and natural gas rigs fell to an all-time low - reflecting data going back 80 years - as the energy industry slashes output and spending to deal with the coronavirus-led crash in fuel demand. The rig count, an early indicator of future output, fell by 34 to a record low of 374 in the week to May 8, according to data on Friday from energy services firm Baker Hughes Co (BKR.N) going back to 1940. The prior all-time low was 404 rigs in May 2016.
  • 14. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 14 Fuel demand has declined about 30% worldwide and companies are making drastic cuts to spending, laying off thousands of workers and closing production to offset a global glut. Consumption has picked up modestly in the last couple of weeks, but the overhang of supply is expected to last for months, if not years. Drillers have cut an average of 52 rigs per week since mid March after crude prices started to plunge due to the coronavirus and a brief oil price war between Saudi Arabia and Russia. U.S. oil rigs fell by 33 this week to 292, their lowest since September 2009, while gas rigs fell by one to 80, their lowest on record according to Baker Hughes data going back to 1987. “The great coronavirus derigging kicked off mid to late in the first quarter, impacting well starts across the major U.S. oil shale plays,” analysts at Enverus Rig Analytics said, noting the rig count was down 38% in April and 62% over the last year. Analysts expect companies will keep pulling rigs for the rest of the year and will be hesitant to activate many new units in 2021 and 2022. Raymond James projected the oil and gas rig count would collapse from around 800 at the end of 2019 to about 400 by the middle of the year and 200 at the end of 2020. The investment bank expects an average of just 225 operating rigs in 2021. The count in Canada already fell to a record low of just 26 rigs two weeks ago, according to Baker Hughes. U.S. crude futures CLc1 were trading around $24 a barrel on Friday, down about 60% since the start of the year as lockdowns to stop the pandemic cut global economic growth and energy demand. Cowen & Co said 37 of the independent exploration and production companies that the financial services firm tracks have cut spending plans since early March when crude prices started to plunge, implying a 45% decline in 2020 capex. Before the price collapse, it forecast a drop of 11%.
  • 15. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 15 NewBase Special Coverage The Energy world - Special 01- May-2020 Oil Stockpiles Have Stopped Growing in the World’s Biggest Buyer Bloomberg - Dan Murtaugh The great oil glut of 2020 may have already peaked in the world’s biggest crude importer. Crude inventories in China have shrunk in recent weeks after rising to record levels, according to analysts and satellite observations. Supplies have been drawn out of storage as refineries ramp up operations to meet rising demand from an economy emerging from lockdown. Inventories Easing Satellite observations show China's oil stockpiles start to decline Source: Orbital Insight Inc. Note: Orbital uses optical and radar satellite observations to measure the amount of crude in tanks with floating roofs. It estimates that floating roof storage accounts for about 90% of China's onshore capacity. Inventories drawing in the world’s biggest importer is an early sign that rebalancing may have begun in the global oil market after an epic collapse in demand, according to Morgan Stanley. Stockpiles dwindled even as oil imports in April increased from the previous month, according to Customs data.
  • 16. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 16 “The combination of inventories falling and strong imports implies really solid refining activity,” said Geoffrey Craig, an analyst with Ursa Space Systems Inc., which uses synthetic aperture radar to track storage tank fills. “You saw them build aggressively in late February and into the end of March, and since then they’ve absolutely plateaued and have come off a bit.” Refiners are drawing oil out of inventory to process into gasoline and diesel as traffic once again snarls China’s cities following the lockdown earlier this year to halt the spread of the coronavirus. Even as driving demand dries up in the rest of the world, rush hours from Beijing to Shenzhen at the end of last month are busier than they were in the same period last year. Independent refiners in Shandong in northeast China are operating at record rates, while state- owned giant PetroChina Co. said it was ramping up fuel production after it fell in the first quarter. “The trend in April was a net withdrawal driven by higher refinery runs and lucrative margins,” said Yao Li, chief executive officer of consultancy SIA Energy, which estimated inventories fell by 9.5 million barrels in April after growing by 161 million in the first quarter.
  • 17. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 17 China imported about 9.9 million barrels of crude a day in April, up 1.7% from March but below last year’s average of about 10.2 million barrels a day, the most in the world. Imports of crude oil and refined products are likely to rise in May, which could put tighten storage capacity, China Port Association said last week in a statement. Unlike the U.S. government, which publishes weekly snapshots of its oil inventories, China rarely provides insight on it stockpiles, leaving analysts to come up with complex formulas to estimate levels or use satellite observations to try to estimate how full the country’s floating-roof storage tanks are. Freeing Up Space Ursa estimates show crude oil in tanks drop from a record high Source: Ursa Space Systems Inc. Note: Crude inventories as percentage of nameplate capacity of observed tanks That’s what Ursa and Orbital Insight Inc. do. The companies use different methods, but both have shown a recent drop. Ursa pegged peak inventory levels in late March, while Orbital saw supplies peaking mid-April and falling off since then, according to data provided by the companies.
  • 18. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 18 NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE The Editor :”Khaled Al Awadi” Your partner in Energy Services NewBase energy news is produced daily (Sunday to Thursday) and sponsored by Hawk Energy Service – Dubai, UAE. For additional free subscription emails please contact Hawk Energy 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 a total of 28 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 a UAE operations base , Most of the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many years were spent drafting, & compiling gas transportation, operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally, via GCC leading satellite Channels. NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE NewBase 2020 K. Al Awadi
  • 19. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 19
  • 20. Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 20 For Your Recruitments needs and Top Talents, please seek our approved agents below