NewBase 11 May-2023 Energy News issue - 1619 by Khaled Al Awadi.pdf

Copyright © 2022 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 2023 No. 1619 Senior Editor Eng. Khaed Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
U.A.E’s Masdar & Octopus Energy, enter deal to develop UK
battery storage
TradeArabia News Service
Global energy tech group Octopus Energy announced today it has signed a framework agreement
with Masdar, one of the world’s leading clean energy companies, to licence Octopus’
groundbreaking technology platform Kraken.
Masdar will use Kraken to flexibly manage its battery storage portfolio in the UK, said a
statement.
In the presence of Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced
Technology, Chairman of Masdar, and COP28 President-Designate, the agreement was signed
between Mohamed Jameel Al Ramahi, CEO of Masdar, and Greg Jackson, Founder and CEO of
Octopus Energy Group, at the UAE Climate Tech Forum.
The move will enable Masdar to optimise and expand its energy trading capabilities in the UK,
helping to accelerate the rollout of renewables across the country and supporting the country in
achieving its net-zero targets.
ww.linkedin.com/in/khaled-al-awadi-80201019/

This comes closely after Masdar committed to invest £1 billion in UK battery storage, following its
acquisition of London-based Arlington Energy in October 2022.
By using Kraken, Masdar will
be able to control the
performance of its batteries in
real-time, optimizing them for
maximum returns. It will also
enable them to store and
discharge electrons in the
greenest possible way.
Masdar chose the deep-tech
platform for its demonstrated
benefits of low cost, maximum
efficiency and its ability to
enable a smarter energy system. Kraken allows for extended analytics, data and real time
monitoring for a whole range of distributed energy resources (DERs), including battery storage.
It is currently contracted to manage over 5 GW across 38,000 green energy assets in ten
countries. The platform is targeting management of 100,000 devices and 6 GW of energy capacity
by the end of 2023.
Masdar and Octopus Energy will also assess joint participation possibilities in renewable energy
and explore collaborative opportunities in renewable generation.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: “Masdar and Octopus Energy share a
common commitment to pioneering innovative clean energy solutions that disrupt and transform
the energy market, and as we expand our presence in the UK energy sector, through our £1 billion
investment in battery storage, Kraken will provide us with the flexibility we need to scale our
business rapidly. Kraken’s experience and expertise in battery storage asset management will
help us to maximize the value of our investments and support the UK’s ambitious energy transition
goals.”
Greg Jackson, Founder and CEO of Octopus Energy Group, commented on the announcement:
“Masdar has established itself as one of the leading investors in renewable technologies around
the world. As they step into batteries in a big way - the acquisition of Arlington and this £1bn
announcement - we are delighted to partner with them. Working together with their infrastructure
expertise and Kraken's world-leading technology, we can make a real difference - driving cleaner,
cheaper and more secure energy at scale.”
The investment in UK battery storage is part of Masdar’s wider commitment to investing in
renewable energy and sustainable technologies around the world. The company has already
invested in a number of renewable energy projects in the UK, including the 402 MW Dudgeon
Offshore Wind Farm off the coast of Norfolk, and the 630 MW London Array, one of the world’s
largest wind farms.
Established in 2006, Masdar is the UAE’s clean energy powerhouse, active in over 40 countries
across the globe, and has invested in a portfolio of renewable energy projects with a combined
capacity of around 20 gigawatts (GW).

Adnoc to Sell 15% Stake in Logistics Unit in Abu Dhabi IPO
Bloomberg , Julia Fioretti
Abu Dhabi’s main energy company will sell a 15% stake in its maritime logistics unit in an initial
public offering, kicking off the second listing of one of its businesses this year.
Abu Dhabi National Oil Co. will offer about 1.11 billion shares in Adnoc Logistics & Services, it
said in a statement on Wednesday. The company will announce the price range and start taking
investor orders on May 16, with final pricing slated for May 25. Shares are expected to begin
trading June 1.
The sale comes months after state-owned Adnoc raised $2.5 billion in the listing of its gas
business, which is the world’s second-biggest IPO of the year so far. The company has also sold
stakes in some other portfolio businesses over the past two years — including in its drilling unit,
chemicals firm Borouge and fertilizer company Fertiglobe.
Those share sales came amid a rush of listings in the Persian Gulf, which has remained a
relatively busy market amid a global slump. Still, oil prices have come off their highs reached last
year in the wake of Russia’s invasion of Ukraine. Fears of a recession and bank failures in the US
have recently put pressure on the commodity, which strongly influences Gulf stock markets.
About $3.5 billion has been raised so far in 2023 through listings in the Middle East — the bulk of
it in Abu Dhabi, data compiled by Bloomberg show. That’s down sharply from the $11.4 billion
fetched by this time last year, as markets like Saudi Arabia have remained quiet and there haven’t
been any privatizations in Dubai, which helped boost volumes in 2022.
Expansion
Adnoc L&S plans to pay an annualized 2023 cash dividend of $260 million and expects to
increase this by at least 5% annually. The firm, which has been expanding its fleet to cope with
increased demand from the state-owned firm’s businesses, is targeting capital expenditure $4
billion to $5 billion in the medium term.
As part of Adnoc’s efforts to bolster its offshore oil, natural gas and wind businesses, the
firm acquired privately-owned ZMI Holdings in July and folded it under its logistics unit. Including
ZMI, Adnoc L&S’s proforma 2022 revenue was $2.29 billion, with adjusted earnings of just under
$600 million.
Abdulkareem Al Masabi, Chief Executive Officer of Adnoc L&S, said revenue had grown at a
compounded annual rate of 20% from 2017 to 2022 and would continue to increase at a rate of at
least 10% in the mid-term.
“Mergers and acquisitions, joint ventures and partnerships with our leading partners are definitely
going to be on the table for us to support our expansion in the future,” Al Masabi said. “As long as
it meets our strategic objectives (and) creates value for our shareholders, nothing’s off the table,”
he said, referring to sectors for acquisitions.
Adnoc Group companies accounted for nearly three-quarters of total sales for the year ended
December 31, 2022, the firm said. It recently signed a five-year contract with Adnoc Offshore to
provide integrated logistics services including port services and warehouse operations.
Citigroup Inc, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and JPMorgan Chase & Co. have
been appointed as joint global coordinators and joint bookrunners. Abu Dhabi Commercial Bank
PJSC, Arqaam Capital Limited, Credit Agricole SA, EFG-Hermes, International Securities and
Societe Generale SA are joint bookrunners for the offering.

Egypt: TAG Oil achieves first oil production in the Badr oil
field, Western Desert, Egypt… Source: TAG Oil
TAG Oil has announced the successful re-entry of the vertical well, BED 1-7, at the Badr Oil Field
('BED-1') in the Western Desert, Egypt. The Company perforated the Abu Roash 'F' formation
('ARF Formation') and conducted a Diagnostic Fracture Injectivity Test (DFIT). The reservoir was
further fracture stimulated with a large 110 tons sand treatment and pump schedule with positive
response confirming reservoir models and projected performance.
On flowback, the well unloaded to surface under natural flow and cleaned up approximately 40%
of the injected fracture fluid with significant presence of 230 API oil. Net cumulative oil produced
during the short flowback was in excess of 500 barrels, which was connected to a flow-line to the
BED-1 field’s production facilities and onward into a sales pipeline.
The well was shut-in to remove the frac string, install 3.5” production tubing string and down-hole
Electric Submersible Pump (ESP) to achieve steady production at stabilized oil rates. The well is
expected to be on production within the next few days and the Company expects to announce 30-
day rates from the well in mid June.
Data collected from the well along with geomechanical and 3D seismic review has enhanced our
horizontal well design. Plans are underway to secure a drilling rig to drill the first horizontal well
designed with a multi-stage fracture stimulation. All necessary permits have been secured and site
construction is underway. The well is expected to spud next month.
Toby Pierce, CEO of TAG Oil, commented: 'This activity is the first step to establish oil production
from the ARF Formation, an oil rich source rock that covers a significant portion of the 107 Sq.
Km. BED-1 concession. Production results confirm the economic feasibility of this important
resource play in the Western Desert of Egypt.'

U.K: Equinor offices targeted by climate protesters over oil field
Bloomberg + NewBase
Climate protesters have gathered outside Norwegian oil giant Equinor’s London offices to oppose
the company’s plans to develop the Rosebank oil and gas field. Rosebank, which lies west of the
Shetland Islands, is one of the largest such fields in the North Atlantic, capable of producing up to
500 million barrels of oil.
The International Energy Agency has previously said there must be no new investment in oil and
gas if the world is to become net zero by 2050, while the Intergovernmental Panel on Climate
Change said emissions from existing fossil fuel infrastructure are already set to push global
temperatures beyond safe limits.
Campaigners from Stop Rosebank, Greenpeace,
Fossil Free London and Parents For Future arrived
at Equinor’s central London headquarters on
Wednesday morning to try to persuade Equinor to
abandon its plans.
Equinor said Rosebank will have a lower carbon
footprint than other fossil fuel projects on the UK
Continental Shelf, but its calculations relate only to its operations and exclude emissions from
burning the fuel itself.
The company also said that investing in oil and gas will help the UK’s energy security and it is
unhelpful for Western democracies to stop developing their resources.

An international delegation of climate protesters plans to “challenge” Equinor at its AGM in
Stavanger in Norway on Wednesday afternoon, a spokesman for campaign group Uplift said. As
well as Rosebank, campaigners are protesting against Equinor’s fossil fuel expansion plans in
Canada, Brazil and Argentina.
Scottish Stop Rosebank campaigner
Lauren MacDonald, who is attending
Equinor’s AGM, said: “Equinor’s oil
projects in the UK and in the rest of the
world threaten our common future and,
as an international community, we cannot
stand by and watch that happen.
“I am joined in Stavanger by anti-Equinor
campaigners from Canada, Brazil and
Argentina to demand that Norway, a
supposed climate leader, stop its state-
owned oil company from developing all
new fossil fuel infrastructure including
Rosebank in the UK.
“Norway needs to set an example to the rest of the world and stop profiting off oil and gas during a
climate emergency.” The plans to develop Rosebank must be approved by the UK Government
and a decision is expected soon.
Climate protesters targeted the London offices of Norwegian oil giant Equinor to oppose its plans
to develop the Rosebank field (Gabriel Davalos/Uplift/PA) If it goes ahead, the Government will
give Equinor a tax break of £3.75 billion, meaning the company will only have to invest £350
million.
Campaigners, along with shadow climate change secretary Ed Miliband, say that up to 80% of the
oil and gas produced will be sold abroad so Rosebank will only be of limited economic value to the
UK.
Hundreds of scientists and academics have also written to Prime Minister Rishi Sunak urging him
to block the development, saying it will undermine the UK’s attempts to be a climate leader. An
Equinor spokesman said it is estimated it will bring £26.8 billion to the UK through tax payments
and investment.
He added: “Rosebank is a project that can help counteract the decline in domestic UK oil and gas
production.
“As long as there is a need for oil and gas, we think it is important that we continue to invest in
fields that can contribute to energy security with a low carbon footprint while creating jobs and
value for society.
“The project will be developed in line with the North Sea Transition Deal, UK net zero targets and
Equinor net zero ambitions.”
Tessa Khan, executive director of Uplift, said: “The Rosebank oil field will do nothing to secure
Britain’s energy supply or lower household bills, but it will blow through our carbon budget all while
costing the taxpayer £3.75 billion thanks to extremely generous government subsidies.
“This Government must join the thousands of people, represented by these campaigners at
Equinor’s AGM, that are saying no to Equinor’s profiteering at our expense.”

QatarEnergy enters Suriname offshore exploration
Staff Writer, Gulf Times
QatarEnergy has entered into two Production Sharing Contracts for Blocks 6 and 8 offshore the
Republic of Suriname, following successful bids in these blocks, as previously announced in June
2021.
Pursuant to the signed agreements, QatarEnergy will own a 20% working interest in both blocks,
where licensing of the new 3D seismic and associated exploration activities are planned. The
remaining working interest is shared equally between TotalEnergies (Operator) and Staatsolies
affiliate, Paradise Oil Company.
Commenting on the signing of the agreements, HE Minister of State for Energy Affairs, the
President and CEO of QatarEnergy Eng. Saad bin Sherida Al Kaabi said: "We are pleased to
have concluded our entry into Blocks 6 and 8 along with our partners, TotalEnergies and
Staatsolie, and look forward to commencing exploration in this promising basin."
HE Minister Al Kaabi added: "I would like to take this opportunity to thank the Surinamese
authorities, Staatsolie, and our strategic partner TotalEnergies for their excellent commitment and
support that resulted in the signing of these agreements."
The contracts, and other key agreements, were signed on behalf of QatarEnergy by Manager of
International Upstream and Exploration Ali Abdullah Al Mana during a ceremony hosted by
Staatsolie, Surinames State Oil Company in Paramaribo, the capital of Suriname.
Located in the Southern part of offshore Suriname, the adjacent Blocks 6 and 8 are immediately
South of Block 58 in shallow waters, with depths ranging between 40 and 65 metres.

Zimbabwe: oil, gas-condensate and Helium found in Mukuyu-1
Source: Invictus Energy
 Presence of light oil, gas-condensate and helium confirmed from Mukuyu-
1 mud gas compositional analysis
 Results confirm multiple oil and gas pay zones in sandstone reservoirs consistent
with wireline log interpretation
 Upper Angwa reservoirs contain liquids rich gas with condensate-gas-ratio
(CGR) estimated between 30 to 135 bbls/MMscf
 High quality gas with minimal CO2 content of less than 1%
 Helium content is consistent with global commercial helium producers
 Results confirm multiple oil and gas pay zones in sandstone reservoirs consistent
with wireline log interpretation and fluorescence observed in sidewall cores and cuttings
 Multiple source / reservoir / seal pairs through the Upper Angwa
Invictus Energy has provided an update on operations at its 80% owned Cabora Bassa Project in
Zimbabwe.
Comments from Managing Director Scott Macmillan:
'Results from the mudgas compositional analysis definitively proves the presence of
hydrocarbons in multiple reservoir pay zones at Mukuyu-1 consistent with the wireline log
interpretation, fluorescence, and elevated mudgas readings.
'Analysis shows the presence of light oil and rich natural gas-condensate, with condensate
gas ratios estimated at between 30 to 135 barrels per million cubic feet.

'The analysed samples demonstrate a consistent, highquality natural gas composition, exhibiting l
ow inert content, containing less than 1% CO2.
'Furthermore, the presence of helium gas in commercial concentrations in multiple reservoir
units is comparable with global helium producing fields and provides an additional high value by-
product.
'We are extremely pleased with the results from the mudgas analysis which confirm our geological
modelling of the Cabora Bassa Basin and the presence of both light oil and gas-condensate
provides us with confidence as we prepare for the drilling of Mukuyu-2 in Q3 this year.
'Success at Mukuyu-2 and confirmation of a significant discovery will further unlock the value
of our material portfolio and basin master position in the Cabora Bassa Basin.'
Result Summary
Compositional analysis has been completed for 5 priority mudgas samples acquired during
the drilling of the Mukuyu-1 / ST-1 well in selected Upper Angwa reservoir units. The results
indicate the presence of light (volatile) high API oil or oil associated gas
condensate in the shallower Upper Angwa reservoirs, which progressively become drier i.e. lower
condensate gas ratio (CGR) with increasing depth in the Upper Angwa formation.
The presence of liquid hydrocarbons (light oil and condensate) is consistent with the
observed fluorescence and elevated mudgas readings with heavier hydrocarbon components
observed during the drilling of Mukuyu-1/ST-1.
The samples analysed also show consistent high quality natural gas with low inert
content and contain less than 1% CO2, which will require minimal processing. Several samples
also contain commercial concentrations of helium gas which will provide an additional high value
by-product.
The results validate the Company’s basin and geological models of the Cabora Bassa and
the presence of multiple hydrocarbon bearing reservoirs in the Mukuyu-1 / ST-1 well. Additional
mudgas isotube samples have also been analysed with results to be confirmed and provided in
due course.

NewBase May 11 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil prices rise on strong fuel demand data
Reuters + NewBase
Oil prices rose in early Asian trade on Thursday after strong demand for fuels in the U.S.
outweighed concerns about the possibility of the world's biggest oil producer and consumer
defaulting on its debt.
Brent crude futures rose by 60 cents, or 0.79%, to $77.01 a barrel by 04.15 GMT. U.S. crude
futures rose 58 cents to $73.14.
Latest U.S. data showed consumer prices rose in April, increasing the likelihood that the Federal
Reserve will maintain higher interest rates which can have the knock-on effect of reducing oil
demand. Rising global interest rates have weighed on oil prices in recent months, with traders
concerned about recession.
Oil price special
coverage

However, fuel demand in the U.S. is showing signs of strength.
U.S. gasoline inventories fell by 3.2 million barrels last week, much more than the 1.2 million
barrel draw forecast by analysts. Distillate stocks also declined, data from the U.S. Energy
Information Administration showed on Wednesday.
U.S. jet fuel demand rose to its highest level since December 2019.
Meanwhile, detailed talks on raising the U.S. government's $31.4 trillion debt ceiling kicked off on
Wednesday with Republicans continuing to insist on spending cuts.
The standoff has rattled investors, sending the cost of insuring exposure to U.S. government debt
to record highs, as Wall Street grows more concerned about the risk of an unprecedented default.
Premiums Commanded by Dirty Crude Are Surprising Oil Traders
(Bloomberg)
Asian and European oil buyers are having to pay hefty prices for lower-quality, dirtier crudes as
sanctions on Russia and OPEC+ output cuts reduce the availability of those grades.
The shift has taken traders by surprise, as less-dense, or light, crude is usually more expensive
since it’s easier to process into higher-value fuels and requires less costly sulfur removal.
In a rare move, Saudi Aramco will sell its Arab Extra Light variety for less than Arab Light to Asia
next month. And the price gap between two of Abu Dhabi’s most widely traded varieties, which are
different in terms of quality, has also narrowed sharply this month.
An embargo on Russia’s flagship Urals oil and disruption to flows from Iraqi Kurdistan have
contributed to the unusual situation by boosting prices of medium sour grades. New refineries in
the Middle East, mainly in Kuwait and Saudi Arabia, have also been ramping up and taking more
feedstock, adding to the tightness for these varieties.

In contrast, the supply of lighter crude has been more robust, with barrels continuing to flow from
producers in the US, Kazakhstan and even Africa.
Those factors have weighed particularly on grades like Abu Dhabi’s Murban crude, for which
sellers have slashed spot premiums to make it competitive, according to traders who buy and sell
those barrels.
Murban for July loading is being discussed at a premium of about $1.70 a barrel to the Dubai
benchmark, while the heavier, more sulfurous Upper Zakum grade is only marginally cheaper at
$1.60 above the same marker, traders said. Omani crude, also heavier than Murban, is trading
about $1.50 above Dubai, they added.
Demand for Murban has also ebbed as profits from turning crude into diesel tumbled, which has
contributed to some Asian refiners considering cuts to processing rates. The grade is used to
produce a lot of the industrial and transport fuel.

NewBase Specual Coverage
The Energy world –May -11 -2023
CLEAN ENERGY
Europe Gas Prices Extends Drop With Record Amounts
of LNG Idling at Sea
Bloomberg News + NewBase
European natural gas prices closed at the lowest level in almost 22 months as demand
stalls and fuel cargoes pile up at sea.
European natural gas prices closed at the lowest level in almost 22 months as demand stalls and
fuel cargoes pile up at sea.
Benchmark futures, already down more than 50% since the start of the year, settled below €35 for
the first time since July 2021. With Europe’s heating season over and hot weather still to take
hold, gas consumption remains subdued and there’s no rush to bring in extra supply.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia
Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of
our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario,
M4W 3L4 | 416-383-2300
The volume of liquefied natural gas on the water for more than 20 days worldwide this week
jumped to the highest seasonal level since at least 2017, data compiled by Bloomberg show. It’s
now roughly double the average over the last six years.

The trend indicates there’s more gas available in the market than it currently needs. Similar levels
of on-water storage are usually seen in the run up to winter, not in spring when countries start to
build up inventories at lower prices ahead of the colder months.
LNG Trade Sees Sluggish Growth as Spot Appetite Dips: BNEF Chart
Traders are closely eyeing cooling demand, which could pick up in the coming weeks when the
weather turns hotter and bolsters prices for LNG sales. Attention is also on re-emerging demand
in Asia, as well as a rebound in industrial gas use.
Aggregated speed for the global LNG vessel fleet has declined, going from an average of about
14 knots for April in previous years, down to 13 knots this April, said Lu Ming Pang, an analyst at
Rystad Energy AS.
“This may indicate that there is sufficient supply in the market, with deliveries slowing down to
match decreased levels of activity in this period,” he said.
European LNG inventories have higher stocks than usual for this time of the year, while
underground gas storage facilities in the region are about 62% full — also well above historic
norms.
Dutch front-month gas, Europe’s benchmark, fell 2.7% to settle at €34.99 per megawatt-hour. The
UK equivalent contract lost 2%.

As is the norm with natural gas, changes in temperature and weather forecasts can lead to price
swings. With the latest models anticipating little temperature-driven consumption in the near term
(with less use of heaters/coolers across homes and businesses), prices are likely to be impacted
adversely.
Compounding the matter, daily production has hovered around the record 100 Bcf mark due to a
relatively mild winter, and this has pushed stocks significantly above historical levels.
However, a stable demand catalyst in the form of continued strong LNG feedgas deliveries is also
supporting natural gas. LNG shipments for export from the United States have been elevated for
months on the back of environmental reasons and record-high prices of the super-chilled fuel
elsewhere.
Now, with the Russia-Ukraine conflict dragging on, LNG has become even more coveted. As a
matter of fact, last year, the United States entered into a partnership with the EU to export
additional LNG to wean the bloc off its dependence on Russian natural gas supplies.
This means that LNG deliveries are poised to remain robust, especially with squeezed natural gas
supplies from Moscow to Europe, following a shutdown in the Nord Stream pipeline from last
August.
Finally, the return of the Freeport LNG export plant in Texas to full capacity will lead to more gas
flowing overseas. The Quintana, TX facility — responsible for around 15% of U.S. liquefaction
capacity — was knocked offline by a blast in June last year and was only partially functional till
recently.
Final Thoughts
Based on several factors, the natural gas market is down more than 55% so far this year. As a
matter of fact, the space is currently quite unpredictable and spooked by the sudden changes in
weather. As such, investors are rather unsure of what to do. As of now, the lingering uncertainty

over the fuel means that they should preferably opt for holding on to fundamentally strong stocks
like SilverBow Resources and Cheniere Energy.
SilverBow Resources: SilverBow has operations across roughly 130,000 net acres in the Eagle
Ford, and more than 80% of its total output comprises natural gas. The Zacks Rank #3 (Hold)
company’s exposure to premium markets and focus on costs and margins should help it to benefit
from any increase in natural gas prices.
SilverBow beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters,
the average being 80.8%. Valued at around $528 million, SBOW has lost 36.3% in a year.
Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its
2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy certainly enjoys a distinct
competitive advantage.
Cheniere Energy has a projected earnings growth rate of 187.6% for the current year. The Zacks
Consensus Estimate for this #3 Ranked natural gas exporter’s 2023 earnings has been revised
8.7% upward over the past 60 days. LNG shares have gained 10% in a year.
At the same time, investors might want to sell some bottom-ranked stocks like Comstock
Resources CRK. Comstock Resources: CRK is a leading operator in the Haynesville shale — a
premier natural gas basin — with 323,000 net acres. About 98% of the company’s total output is
natural gas.
Comstock Resources has a projected earnings growth rate of -50.1% for the current year. Valued
at around $2.9 billion, this Zacks Rank #5 (Strong Sell) company’s 2023 earnings have been
revised 37.8% downward over the past 60 days. CRK shares have lost 30.8% this year.
Morgan Stanley Boosts 2023-24 LNG Price Forecast on Europe Demand
Morgan Stanley raised its price estimates for liquefied natural gas in 2023 and 2024, seeing
Europe’s soaring demand for the fuel intensifying global competition for supplies.
The continent looks set to cope this winter even as Russia cut gas exports to the minimum, but
next year the supply crunch really could bite. Europe will need even more LNG to replace Russian

volumes next summer when the continent will be refilling storage, while China’s demand will
recover from lockdowns to offset lower imports from other Asian buyers. And supplies are lagging
behind.
“We see a rising deficit next year,” Morgan Stanley analysts including Martijn Rats said in a note.
“We see the need for prices to remain elevated for longer to continue constraining demand.”
The bank now sees Asian LNG prices averaging $39.50 per million British thermal units next year,
up by almost a third from $30 before. The 2024 price forecast was raised by 57% to $34.50.
Nearer-term forecasts were left unchanged.
That echoes comments from top LNG producers, which see the market getting even tighter next
year, and remaining short of supply until at least the mid-2020s.
Europe has imported record volumes of LNG this year after prices spiked well above rates in Asia,
helping to divert cargoes. Coupled with a milder start to the heating season and reduced demand
by industries, that’s helped the region fill inventories for this winter to 90% even as Russia slashed
exports to the continent.
Next year, Europe’s call for LNG could rise by almost 50 million tons, according to Morgan
Stanley, and it may still have below-normal inventories for winter 2023-24 under most scenarios.
China may need an additional 10 million tons, a 14% increase in demand, which will partially
offset lower purchases from some other Asian importers, including Japan and South Korea that
are rushing to replace expensive gas in power generation by alternatives like coal and nuclear.
Yet, it’s unclear what price signals Europe will be sending to LNG suppliers next year as the
region’s officials are discussing whether to implement caps, in addition to talks about the future of
the continent’s benchmarks.

NewBase Energy News 11-May 2023 - Issue No. 1619 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil &
Gas sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle
East, Africa and Asia. Khaled has successfully accomplished a wide range of
projects in the areas of Gas & Oil with extensive works on Gas Pipeline Network
Facilities & gas compressor stations. Executed projects in the designing & constructing of gas pipelines,
gas metering & regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy
program broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any
time, see contact details above.

NewBase 11 May-2023 Energy News issue - 1619 by Khaled Al Awadi.pdf

Recommandé

Recommandé

Contenu connexe

Similaire à NewBase 11 May-2023 Energy News issue - 1619 by Khaled Al Awadi.pdf

Similaire à NewBase 11 May-2023 Energy News issue - 1619 by Khaled Al Awadi.pdf (20)

Plus de Khaled Al Awadi

Plus de Khaled Al Awadi (20)

Dernier

Dernier (20)

NewBase 11 May-2023 Energy News issue - 1619 by Khaled Al Awadi.pdf