NewBase 29 May-2024 Energy News issue - 1624 by Khaled Al Awadi_compressed.pdf

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NewBase Energy News 29 May 2023 No. 1624 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: ADNOC Drilling unveils $75mln agreement for 6 new
hybrid drilling rigs
Mubasher -SyndiGate Media Inc. (Syndigate.info
ADNOC Drilling Company has signed a $75 million deal to purchase six newbuild hybrid power land
rigs, according to a press release. The six newbuild hybrid power rigs will be developed by Honghua
Golden Coast
The six newbuild hybrid power rigs will be developed by Honghua Golden Coast and will
progressively enter the fleet from the second quarter (Q2) of 2024.
Meanwhile, the partial revenue and earnings before interest, taxes, depreciation, and amortisation
(EBITDA) contribution from 2024 and full-year contribution from all rigs will be registered in 2025.
The new award follows an agreement for 10 newbuild hybrid power rigs that was announced last
March. In this regard, the ADX-listed company ordered a total of 16 new-built hybrid power land rigs
year-to-date.
All of these new-build rigs are part of the medium-term guidance to get to an owned-rig count of 142
by the end of 2024.
ww.linkedin.com/in/khaled-al-awadi-80201019/

Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling, noted: “As we implement our bold fleet
expansion plan, we are working to ensure that growth comes with the delivery of our decarbonization
commitments.”
Al Seiari highlighted: “The sixteen newbuild hybrid rigs ordered so far this year are central to ADNOC
Drilling’s rigorous decarbonization strategy and our commitment to support ADNOC’s target to
reduce greenhouse gas intensity by 25% by 2030, as well as the UAE Net Zero by 2050 strategic
initiative.’’
During the January-March 2023 period, ADNOC Drilling logged net profits valued at $218.68 million,
higher by 25% than $174.45 million in Q1-22.

Saudi: NEOM green hydrogen project reports 60% completion
of engineering works. by Almas TholotMay 26, 2023
NEOM Green Hydrogen Co. CEO David Edmondson informed the press that engineering works for
the green hydrogen project have reached 60% completion, with 80% of the main procurement
orders already placed.
Spanning an expansive 352 square kilometers, the project has garnered significant interest from
local, regional, and international banks and financial institutions, resulting in $6.1 billion in non-
recourse financing. David Edmondson, CEO of NEOM Green Hydrogen Company
The National Development Fund (NDF) and Saudi Industrial Development
Fund (SIDF) have played a substantial role in financing the project,
contributing over 40% of the required funds. Additionally, 13 international
banks participated in arranging financial support for NEOM, showcasing
the global enthusiasm for investment in Saudi Arabia and NEOM.
The primary objective of NEOM Green Hydrogen is to facilitate the transition of the global industry
from conventional fuels to cleaner sources. The project’s significant scale will enable a reduction in
the cost of hydrogen production and satisfy international market demand by generating substantial
volumes.

To facilitate efficient distribution, the company has adopted hydrogen-to-ammonia conversion, a
cost-effective method that allows for transportation via sea. Furthermore, NEOM Green Hydrogen
has established a large on-site storage space for its ammonia production facility.
A significant milestone for the company was securing a 30-year exclusive off-take agreement with
Air Products, guaranteeing the purchase of all green ammonia produced at the facility. Air Products
will transport the products to the United Kingdom, Germany, and Holland, with a substantial
investment of over $2 billion.
Recently, NEOM Green Hydrogen achieved financial closure for the world’s largest hydrogen
production plant, valued at $8.4 billion (SAR 31.5 billion). The company finalized financial
agreements with 23 local, regional, and global banks and investment firms.
The NDF, in partnership with local and international banks, contributed over SAR 10.3 billion in
financing for the world’s largest green hydrogen plant at Oxagon.
In July 2020, NEOM established a partnership agreement worth $5 billion with Air Products and
ACWA Power to construct an environmentally friendly hydrogen facility within NEOM. The objective
of this collaboration is to provide sustainable solutions for the global transportation sector and
mitigate the impact of climate change by reducing carbon emissions.
NEOM Green Hydrogen Company completes financial close at a total investment value of USD
8.4 billion in the world’s largest carbon-free green hydrogen plant. This is a significant
achievement in our plans for large-scale adoption of green hydrogen.
NGHC’s mega-plant is the first-of-its-kind project internationally. It will integrate up to 4GW of solar
and wind energy to produce up to 600 tonnes per day of green hydrogen by the end of 2026.
This will be produced in the form of green ammonia as a cost-effective solution for the
transportation and industrial sectors globally.

China’s Buying a Lot of Commodities From Russia, Just Not Wheat
Bloomberg + NewBase
China’s wheat imports are booming, but one top supplier is missing out: Russia.
The Asian nation is on track to be the largest buyer of the food staple this season, and Russia is
the biggest exporter. While Beijing said last year that it would allow imports from all parts of Russia,
trade has been hampered by a slew of issues, including phytosanitary regulations and transport
challenges.
The future of wheat and meat
shipments is likely to feature on
the agenda when Russian
government officials and
executives attend a business
forum in China this week,
according to Agriculture Minister
Dmitry Patrushev.
There is work to do. China has
been buying a lot of wheat, with
total imports surging more than
60% from a year earlier to about
6 million tons in the first four
months of the year. Of that,
Russia supplied just a trickle —
30,000 tons.
Wheat is an exception in China’s
buying spree from Russia.
Beijing’s purchases of energy and aluminum have soared as sanctions cut supplies to the West.

U.S: EIA explores effects of LNG exports on the U.S. N.gas market
Data source: U.S. Energy Information Administration, Annual Energy Outlook 2023 (AEO2023)
In our Issues in Focus: Effects of Liquefied Natural Gas Exports on the U.S. Natural Gas
Market supplement to our Annual Energy Outlook 2023 (AEO2023), we find that the volumes of
liquefied natural gas exports (LNG) do affect average U.S. natural gas prices.
However, the resulting range in natural gas prices in our new cases was narrower than the price
range in recent history and the AEO2023 side cases despite a wide variety of U.S. LNG export
volumes.
Note: Shaded regions represent maximum and minimum values for each projection year across the
AEO2023 Reference case and side cases. LNG=liquefied natural gas.
In our AEO2023, we explore long-term energy trends in the United States and present an outlook
for energy markets through 2050. The Issues in Focus articles based on the AEO provide in-depth
discussions on topics of special significance, such as LNG exports. This Issues in Focus presents
three additional side cases to the AEO2023 that explore how LNG exports volumes affect domestic
natural gas prices. These three cases are the:
Low LNG Price case, which assumes lower international natural gas prices
High LNG Price case, which assumes higher international natural gas prices, with limits on
how fast export facilities can be developed
Fast Builds Plus High LNG Price case, which assumes the same higher international natural
gas prices as the High LNG Price case but also allows faster development of export facilities
than in our other AEO2023 cases

Data source: U.S. Energy Information Administration, Annual Energy Outlook 2023 (AEO2023)
and LNG Capacity Tracker
Note: Existing, under construction, and approved liquefied natural gas (LNG) capacities are
baseload capacities. Shaded regions represent maximum and minimum values for each projection
year across the AEO2023 Reference case and side cases.
In these Issues in Focus cases, we project that, in 2050, LNG exports will range from 15.3 billion
cubic feet per day (Bcf/d) in the Low LNG Price case to 48.2 Bcf/d in the Fast Builds Plus High LNG
Price case. For comparison, in 2050, we project LNG exports will be:
12.6 Bcf/d in the Low Oil Price, where we assume lower crude oil prices relative to the
Reference case
27.3 Bcf/d in the Reference case
39.9 Bcf/d in the High Oil Price case, where we assume higher crude oil prices relative to the
Reference case
We project that increased U.S. natural gas demand from LNG exports increases the natural gas
spot price at the Henry Hub. In these three Issues in Focus cases, we project that the Henry Hub
price in 2050 ranges from $3.30 per million British thermal units (MMBtu) in the Low LNG Price case
to $4.30/MMBtu in the Fast Builds Plus High LNG Price case.
For comparison, we project the Henry Hub price in 2050 will be $3.80/MMBtu in the Reference
case. The Issues in Focus cases project a narrower range of the spot price than in our AEO2023
Oil and Gas Supply cases, which alter assumptions regarding resource availability and extraction
costs. We project the Henry Hub spot price to be as low as $2.80/MMBtu in the High Oil and Gas
Supply case and as high as $6.40/MMBtu in the Low Oil and Gas Supply case.

NewBase May 29 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil rises after US leaders strike provisional debt deal
Reuters + NewBase
Oil prices rose on Monday after U.S. leaders reached a tentative debt ceiling deal, possibly averting
a default in the world's largest economy and oil consumer, although concerns about further interest
rate hikes capped gains.
Brent crude futures climbed 66 cents, or 0.9%, to $77.61 a barrel by 0247 GMT, while U.S. West
Texas Intermediate crude was at $73.42 a barrel, up 75 cents, or 1%. Trade is expected to be
subdued on Monday because of UK and U.S. holidays.
U.S. President Joe Biden and House Speaker Kevin McCarthy on Saturday finalised an
agreement in principle to suspend the $31.4 trillion debt ceiling and cap government spending for
the next two years. Both leaders expressed confidence on Sunday that members of the Democratic
and Republican parties will vote to support the deal.
Reaching the deal and coming closer to avoiding a default on U.S. debt renewed investor appetite
for riskier assets such as commodities.
"The tentative debt deal offered a relief rally in risk assets, including crude oil," said Tina Teng, a
CMC Markets analyst.
Oil price special
coverage

Last week, Brent and WTI rose by more than 1%, gaining for a second week.
Prices gained as the U.S. debt ceiling talks showed progress and after Saudi energy
minister Abdulaziz bin Salman warned short-sellers betting that oil prices will fall to "watch out" for
pain.
Bin Salman's warning was seen as a signal that the Organization of Petroleum Exporting Countries
(OPEC) and allies including Russia, known as OPEC+, may further cut output when they meet on
June 4.
However, comments from Russian oil officials and sources, including Deputy Prime
Minister Alexander Novak, indicate the world's third-largest oil producer is leaning toward leaving
output unchanged.
Analysts see the boost in oil prices from the debt deal as short-lived.
The rally's sustainability is questionable as there is a higher chance the U.S. Federal Reserve will
raise interest rates in June after their preferred inflation metric rose more than expected for April,
IG's Sydney-based analyst Tony Sycamore said.
"Higher U.S. rates are a headwind for crude oil demand," he added.
Investors will be watching for manufacturing and services data in China, the world's biggest oil
importer, this week as well as U.S. nonfarm payroll data on Friday for signals on economic growth
and oil demand.
The bumpy economic recovery in China, is weighing on oil markets, said Teng.
Future oil output growth in the U.S., the world's biggest producer, also may slow as energy firms cut
rigs for a fourth week. The number of oil rigs operating fell by five to 570 last week to their lowest
since May 2022, energy services firm Baker Hughes Co (BKR.O) said in its weekly report on Friday.

Plunging LNG Prices may Cancel US LNG Export
Bloomberg) As global liquefied natural gas prices nosedive, traders are bracing for the possibility
that US cargoes will be canceled in the coming months.
Asian LNG spot prices are down more than 85% from last year’s record highs, falling to lows not
seen since May 2021. European gas prices have slumped 70% over the past year. Traders gathered
at an annual energy fair in Essen, Germany, this week debated whether slumping prices and
lackluster demand could trigger a supply-side response.
If prices fall further, it may not make economic sense to export LNG from the US – a reversal of the
situation a year ago, when prices hit record highs following Russia’s invasion of Ukraine.
The market is “not that far from US LNG cargo cancellations,” Gyorgy Vargha, chief executive officer
at Swiss trader MET International AG, said in an interview in Essen. “We are not that far away from
the bottom.”
Should steep declines continue, then by September — when European storage sites are full —
companies contracted for US cargoes may cancel scheduled shipments to avoid massive losses.
This hasn’t happened since 2020 when cargoes were refused in droves and millions of dollars in
penalties were paid out.
The impact could be significant – with gas trapped at home in the US, that could send domestic
prices plummeting to fresh lows. For Europe, it would put at risk a fragile market balance after
nations beefed up security of supply following the turmoil that followed Russia’s invasion of Ukraine.
To be sure, current price spreads to Europe and Asia still show wide enough margins to justify US
cargo loadings. BloombergNEF data shows US LNG is still in the money through November, based
on global spreads. Any tightening of global supply, such as from maintenance or the Atlantic
hurricane season, could also contribute to keeping price spreads wide and justifying US loadings.

Cancellations are unlikely unless LNG spot prices reach the low single digits, said Kazunori Kasai,
who leads the Singapore-based trading arm of Jera Co., one of the world’s largest buyers of the
fuel. The company currently isn’t considering the cancellation of shipments, he told media in Tokyo
on Friday.
Supply Response
LNG traders in Europe and Asia echoed that sentiment, saying prices need to fall below $5 per
million British thermal units before scrapping scheduled US deliveries comes into play. Prices are
presently about $9 per million Btu, after soaring above $71 in August.
Contract notice can vary but typically, purchasers must provide two months’ advance notice to LNG
producers such as Cheniere Energy Inc. for any cargo cancellations by the 20th of the calendar
month. This means that any decisions around September loadings would be made in the month of
July.
European gas prices are now more likely to get close to the levels needed to shut in US LNG by
late summer, consultant Energy Aspects Ltd. said in a note, though that isn’t its base case.
While US LNG is in focus, it’s possible that a supply response may also be seen elsewhere.
Export projects from Australia to Malaysia may use this period of lower prices to schedule
maintenance, and thereby effectively tighten global supply, traders said. Reduced supply could act
as a floor, helping to keep prices from plummeting further, they added.
“As the prices are going down so strongly, I am wondering will there be a point at which LNG
suppliers start scaling down production?” Andy Sommer, head of fundamental analysis and
modeling at Axpo Solutions AG, said in an interview in Essen.
“American suppliers are most visible but this would not be exclusive to US LNG plants if prices
continue in this direction.”

NewBase Specual Coverage
The Energy world –May -02 -2023
CLEAN ENERGY
Daphne Technology & Aramco working on mobile carbon capture
Aramco + NewBase
Swiss climate deep tech company Daphne Technology has obtained a license from
Saudi Aramco Technologies Company, a subsidiary of oil and gas major Aramco, to
further develop and commercialise its mobile carbon capture (MCC) technology.
Daphne Technology
Carbon capture technology is an important tool in addressing carbon abatement. Aramco’s
advanced MCC technology has the potential to contribute to the reduction of CO2 emissions
from the maritime transport and other hard-to-decarbonise sectors.
So far, Aramco has demonstrated the MCC technology in passenger road transportation
and, more recently, in a heavy-duty truck with up to 40% carbon capture.
While marine vessels consume thousands of tons more fuel than trucks, the science behind
carbon capture technology is similar. The next step is for Daphne Technology to explore
ways to adapt and integrate the technology with its proprietary solutions for deployment on
large commercial vessels.
“We are thrilled to partner with Saudi Aramco Technologies Company and commercialise
their innovative MCC technology for the maritime industry. It is a perfect fit with our strategy,
which is to develop and integrate innovative technology to help our clients meet their
decarbonisation goals.
The MCC technology complements our proprietary methane slip reduction (SlipPureTM)
and desulphurisation (SulPure) systems, creating decarbonisation packages for current and

future infrastructure and assets,” Mario Michan, Founder and CEO of Daphne Technology,
commented.
“Emissions from the shipping industry are particularly hard to abate, and there are limited
low-carbon alternatives that are commercially available today. Our MCC technology is a new
and innovative solution that aims to support the decarbonisation of the maritime sector, and
we are pleased to partner with Daphne Technology,” Adullah S. Dhuwaihi, CEO, Saudi
Aramco Technologies Company CEO, said.
Last year, Shell, Trafigura, AET and Saudi Aramco revealed they will invest in Daphne
Technology.
Specifically, Daphne leverages technology to remove toxic and GHG emissions such as
nitrogen oxides, methane and carbon dioxide from the combustion gas of any fuel type,
including oil, LNG, biofuels, ammonia, and hydrogen.
The plug-and-play solution breaks down the pollutants, converting them into non-hazardous
by-products, which are either released into the environment or transformed into valuable
products.
The International Maritime Organization (IMO) is currently targeting a 50% cut in
greenhouse gas emissions from the global fleet by 2050 compared to 2008 – this is driving
significant demand for GHG mitigation solutions for the maritime transport sector.
 Our technology has the potential to provide lower carbon transport for everyone
 We began working on mobile carbon capture in 2010
 Capturing the CO2 at source to lower engine emissions
 Successfully demonstrated in cars and pickups, being validated in trucks; our
next focus will be marine transport
For over 140 years, the internal combustion engine has been the heartbeat of our planet, moving
billions of people, goods, and materials across the world in cars, trucks, ships, planes and trains.
And the future will be no different, as more countries globally move themselves out of poverty and
consume more energy.

Current estimates predict that there will be 1.7 billion vehicles using internal combustion engines by
2040. This clearly poses huge challenges for both our natural resources and the environment –
particularly in terms of carbon dioxide (CO2) emissions and impending targets on carbon neutrality.
So how do you develop practical solutions for reducing emissions, at a reasonable cost, and with
only minimal impact on vehicle performance?
More efficient engines are just the start
There are several ways to increase the efficiency of a vehicle.
You can reduce its weight, improve the aerodynamics
so there is less drag, decrease engine friction, and so
on. Each of these can make a difference, but our
ambition was to take a much larger leap forwards in
terms of CO2 reduction.
An idea takes shape
The technology to capture CO2 at source has existed for a while in industrial settings
such as power plants. However, capturing it on the move poses a range of complex
challenges; from the physical confinements and relative lack of space on board a
vehicle, through to dealing with external influences such as variable air flows as it
moves.
An added complication is how to generate the additional energy needed to separate
the CO2 from the other exhaust gases. Especially as burning extra fuel would cost the
driver more money, and would in turn emit more CO2.
One solution lies in reusing existing "waste" energy
Engines typically convert between 25-40% of the energy in the fuel into propulsion.
The rest is lost as heat through the radiator and exhaust. Our breakthrough was

developing an energy recovery system that could take that wasted heat and convert
it into energy to power both the CO2 capture and the compressor units.
Our carbon capture system works by taking the exhaust gases and bringing them into
contact with a solvent to capture the CO2, emitting nitrogen, water vapour, and any
remaining CO2. Then we compress the CO2 and store it safely in a tank on board the
vehicle.
The Four Rs
Removing CO2 from the atmosphere is one of the four "Rs" (alongside reducing,
reusing and recycling), helping to restore the human-earth balance as part of the
circular carbon economy.
Once the CO2 has been captured, it has to be safely unloaded and then moved by
truck or pipeline. Depending on the local conditions, it can then be sequestered into
the ground, or used in a variety of different commercial and industrial applications.
For instance, we have developed innovative ways to convert CO2 back into fuels using
renewable energies, and to help cure cement.

Developing a feasibility prototype
We began in 2010, exploring different approaches to capturing CO2, including: liquid
absorption, solid sorbents, cryogenic, membranes and oxy-combustion. For the
feasibility prototype we decided to use a solid sorbent which came with some
disadvantages in terms of its size and inflexibility.
However, in 2011, after a year
of development, we
successfully integrated our
carbon capture system into a
Ford F-250 pickup truck,
capturing 10% of the
CO2 emissions.
Our instincts had been proven
correct, and now the challenge
was to make the system
smaller and more efficient.
The next phase: passenger cars

Perhaps somewhat counter-intuitively, smaller engines are more inefficient than
larger ones. They waste more heat, which means more energy is available to capture
and compress the CO2.
In 2013, we switched to a liquid solvent (potassium carbonate solution), enabling us
to shrink the whole system to just 1/8 of its original size, and integrate the majority of
it underneath the chassis of a Toyota Camry. The result was an impressive tripling in
performance - capturing 30% of the CO2 emissions while the car was being driven.
Heavy-duty applications

We also realised the potential our mobile carbon capture technology has for the
freight industry, especially as trucks usually return to a depot at the end of their
journey, which could make unloading the stored CO2 easier.
So in 2019 we began work on
integrating it into a class 8 Volvo
heavy-duty truck, using the same
principles as our passenger car
prototype, but with a much larger
system integrated between the cab
and trailer. We developed a novel
solvent system based on amino acids,
and used turbo-compounding to
recover energy from the engine. The
results were our best to date –
capturing 40% of the CO2 emissions from the truck.
Reimagining the freight industry
Currently, over a third of all transport CO2 emissions come from road freight.
Imagine if every heavy-duty truck in the world had our mobile carbon capture
technology on board. We could reduce CO2 emissions by up to 708 million tons
per year – that’s about the same impact as planting 120 billion new trees.
The future - capturing carbon at sea
Marine transportation is estimated to be responsible for 2.1% of all global
CO2 emissions. While ships consume thousands of tons more fuel than cars, the
science behind the carbon capture technology is the same - it’s all about scale.
The goal of the International Maritime
Organization (IMO) is to reduce
greenhouse gas emissions by at least
50% by 2050, compared to 2008
levels. And we’ve just started working
with our industry partners to explore
ways to adapt the technology for
deployment on large ships.
NewBase Energy News 29-May 2023 - Issue No. 1623 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services

NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

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