new base special 16 february 2014

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Copyright © 2014 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 endeavours 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 16 February 2014 Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE Egypt signs exploration deals with three oil firms www.offshoreenergytoday.com Egyptian government has signed exploration agreements with three oil companies this week, which is expected to attract a $265 million investment to the country. The three companies involved are Petroceltic from Ireland, UAE’s Dana Gas and Edison from Italy. According to a statement made by the Ministry of Petroleum and Mineral Resources, the companies will drill a minimum of 8 exploration wells. Under the agreement, the companies will explore for oil and gas in the Mediterranean sea, the Gulf of Suez and the Nile Delta. Energy minister Sharif Ismail said that in order to increase its oil production and develop more reserves, Egypt would continue inviting bids from international oil companies for new leases. He added that these contracts will make the investment climate in Egypt more attractive for international oil companies, which will lead to increased level of exploration activities.

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Page 1: New base special  16 february 2014

Copyright © 2014 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 endeavours 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 16 February 2014 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Egypt signs exploration deals with three oil firms www.offshoreenergytoday.com

Egyptian government has signed exploration agreements with three oil companies this week, which is expected to attract a $265 million investment to the country. The three companies involved are Petroceltic from Ireland, UAE’s Dana Gas and Edison from Italy. According to a statement made by the Ministry of Petroleum and Mineral Resources, the companies

will drill a minimum of 8 exploration wells. Under the agreement, the companies will explore for oil and gas in the Mediterranean sea, the Gulf of Suez and the Nile Delta. Energy minister Sharif Ismail said that in order to increase its oil production and develop more reserves, Egypt would continue inviting bids from international oil companies for new leases.

He added that these contracts will make the investment climate in Egypt more attractive for international oil companies, which will lead to increased level of

exploration activities.

Page 2: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

Renewable energy on the rise in the UAE and India Abhay Bhargavahttp://www.thenational.ae/business/

Energy demand in both India and the UAE is likely to soar this decade. To meet this demand, it is pivotal for both countries to establish a strong foundation to adopt renewable energy.

India and the UAE have independently announced plans for adoption of renewables. India has set a target of 29.8 gigawatts in additional renewable energy capacity by the end of 2017, taking its total to almost 55GW.

In the UAE, the various emirates have individual plans for renewable energy. Dubai has announced a target of generating 5 per cent of its total energy through renewables by 2030 and Abu Dhabi has plans for 7 per cent by 2020, which would make for 3GW more of renewable energy in the UAE.

While the countries have very different requirements that are driving the adoption of renewables, there are also some similarities. Both are striving to diversify their energy mix with an aim to enhance energy security and reduce dependence on conventional sources of fuel.

India has already made significant progress in this area, having installed a capacity of 30GW by the end of last year, 13.2 per cent of the country’s total power generation capacity. The country provides a well-structured and attractive market for renewable power generation, with both government and industrial participation spurring its growth. However, the high capital associated with renewables, coupled with high financing costs and insufficient power transmission and distribution infrastructure, has challenged and restrained renewable energy adoption in India.

The UAE, on the other hand, is relatively new to the adoption of renewable energy and is still in the process of developing an environment that would be conducive and attractive for private sector participation, a must for

accelerated development. Some key short-term achievements for the UAE have been:

• Setting up the Masdar Institute, which has helped to start and sustain research and development

• Hosting the International Renewable Energy Association, which in turn has led to greater commitment from the UAE to deliver on areas such as sustainability and energy efficiency

Page 3: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

• Creating plans to adopt renewable resources. Dubai’s recent announcements of rooftop solar and energy service companies are clear examples of this approach.

Renewable energy promises to be environmentally friendly and allows the UAE to diversify its energy mix and attain a higher degree of energy security. However, these benefits are not

adequate to counter the various challenges that the energy sources faces in the UAE and the rest of the region.

The foremost challenge for renewables adoption in the UAE is the practice of subsidising fuel for energy generation, and then subsidising electricity as well. In spite of recent price increases, non-renewable electricity is still available at a low cost, making renewables superfluous for most individuals. Renewables will

face difficulty in the UAE as long as this practice is in place.

The regulatory environment in the UAE is also not as conducive as in other countries that are promoting renewables. Lack of clarity on policies relating to private electricity generation through renewables will be a crippling factor, if it is not sorted out this year. Recent moves on the parts of Dubai and Abu Dhabi appear to be aimed towards sorting this out, sending a positive signal on this front.

One final factor challenging renewables adoption in the UAE is the insufficiency of supply through local sources, for both services and products. Given the UAE’s excessive dependence on imports to cater to demand, the country could face difficulty creating the infrastructure for renewables.

However, other factors will need to be considered that bode well for renewables. For instance, there is the dependence on generators that run on diesel to generate electricity for construction projects, telecoms and other facilities not within the reach of the existing power networks.

A recent Frost & Sullivan analysis shows sales of more than 6,000 diesel generators in the UAE for last year alone, and more than US$60 million is spent each year on non-diesel generator rentals. Multiply this by a large-scale construction ramp-up because of the Expo 2020 and the remoteness of some of the places the infrastructure would need to reach, and the UAE presents a very feasible case for the adoption of renewables.

Shams 1 100MW CSP Plant – Masdar Abu Dhabi

Page 4: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

QP and QAPCO align bidders on Qatar Ras Laffan Petrochemicals www.2b1stconsulting.com

After awarding Al-Sejeel front end engineering and design (FEED) work to Maire Tecnimont, the national companies Qatar Petroleum (QP) and Qatar Petrochemical Company (QAPCO) are aligning the engineering companies willing to bid for the engineering, procurement and construction (EPC) contract for the Al-Sejeel petrochemical project in Ras Laffan Industrial City of Qatar.

Qatar, as the other countries in the Gulf, does not want to rely only on exporting natural resources and is implementing a strategy to diversify its economy on downstream activities.

While Qatar ranks in the third position for the proved natural gas reserves in 2014, with 885 trillion cubic feet (tcf), behind Russia (1,888 tcf) and Iran (1,193 tcf), Qatar stands as the world largest exporter of liquefied natural gas (LNG) since 2006.

With a global demand for natural gas booming all over the world in beginning with the neighboring countries in the Gulf, Qatar established a long standing market leadership on the gas market, up to investing in LNG Terminals in USA in the years 2000s.

But the development of the shale gas in USA and the numbers of LNG projects under development in Australia, Canada, Russia, Africa are questioning the

sustainability of the current economical model in Qatar.

Qatar Al-Sejeel and Al-Karaana projects in progress

In order to reduce its exposure to depressing gas prices in the consumers markets such as Europe and Asia, Qatar is gearing up the development of its petrochemical industry.

From 2013 to 2020, Qatar is planning to invest $25 billion capital expenditure in the downstream sector.

Qatar Government set the target to increase the volume of production of the petrochemical sector from 9 million tonnes per year (t/y) in 2013 to 23 million t/y by 2020.

As the spearhead of this strategic evolution, Qatar Petroleum is leading two major projects, Al-Karaana in joint venture with Shell, and Al-Sejeel in partnership with QAPCO.

The local champion QAPCO is itself a 80/20 joint venture between QP and the French major company Total.

Page 5: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

In the Al-Sejeel project QP and QAPCO share the working interests in such a way that:

- QP 80% is the operator

- QAPCO 20%

In giving such leading role to QP in this downstream project, Qatar is trying to optimize the benefits of the integrated upstream-downstream business model deployed in USA from the shale gas fed petrochemical industry.

The advantage of this integrated upstream-downstream business model is to preserve the consolidated margins along the value chain regardless the price of the natural gas on the market.

Four consortia in competition for QP Al-Sejeel EPC

After awarding in 2013 the Al-Sejeel front end engineering and design (FEED) contract to the Italian engineering company Maire Tecnimont and the project management consultancy (PMC) contract to the California-based Bechtel, QP and QAPCO are receiving the first technical offers for theengineering, procurement and construction (EPC) contract.

Four consortia are in competition for this Al-Sejeel Petrochemical Complex to include:

- 1.4 million t/y ethylene

- 850,000 t/y of high density polyethylene (HDPE)

- 430,000 t/y of linear low density polyethylene (LLDPE)

- 760,000 t/y of polypropylene (PP)

- 83,000 t/y of butadiene

In respect with the on going progress of the call for tender, QP and

QAPCO expect to award the EPC contract of the Al-Sejeel Petrochemical complex on early 2015 in order to come on stream by 2018.

Page 6: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

Shell to sell 3 producing North Sea fields by Oman Observer in Business

Royal Dutch Shell is planning to sell three oil and gas producing assets in the North Sea, the

Guardian reported, a move that supports the Anglo-Dutch oil major’s existing plans to step-up

divestments this year.

Glen Cayley, Vice-President of Shell’s upstream business in Europe, said the company had been

talking to staff about the possible disposal of its Anasuria, Nelson and Sean platforms, the paper

said on its website.

Shell, along with its peers in the

industry, has been facing increasing

investor pressure to rein in spending as

costs rise and prospects for oil prices

wane. A media report said in January

that Shell planned to sell $15 billion

worth of assets over the next two years

including some North Sea fields.

said its investment strategy is to focus on assets where it sees an opportunity for growth. Staff were told of the plans this week.

"We are focusing and strengthening our portfolio for the decades ahead with many exciting projects such as new wells we are drilling at Shearwater, our investment in extending the life of Gannet, our investments in the non-operated ventures of Schiehallion and Clair and our purchases, last year, of a further interest in Beryl and the Curlew floating production, storage and offloading (FPSO) vessel.

The company said it was too early to talk about implications for staff. Anasuria, which is operated by Shell, is located 115 miles east of Aberdeen and produces gas and oil. Shell has a 50% equity share, and the joint venture partner is Esso Exploration and Production UK Ltd with a 50% holding.

Shell-operated Nelson is located around 124 miles east-north-east of Aberdeen and exports oil and gas. The co-venturers are Shell (58.1%), Esso Exploration and Production UK Ltd (21.23%), Apache North Sea Ltd (11.52%), Idemitsu Petroleum UK Ltd (7.48%), and Premier Oil ONS Ltd (1.66%).

Sean, which is Shell-operated, is located in the Southern North Sea, 68 miles north east of Lowestoft and produces gas. Shell has a 25% equity share, and the co-venture partners are Scottish and Southern Energy (50%), and Esso Exploration and Production UK Ltd (25%).

Page 7: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

US Murphy Oil eyes $3bn Asia assets sale Reuters

Murphy Oil Corp is considering selling some of its Asian oil and gas assets in a deal that could fetch up to $3 billion, sources said, as it looks to scale down in the region like some other US energy companies.

Energy majors from BP to Shell have faced pressure from shareholders to control spending and return spare cash amid concerns over the impact of rising costs and the returns available if oil prices drop. Murphy's planned sale comes after Newfield Exploration and Hess Corp sold their Southeast Asia operations, partly to address share price underperformance. The move has been prompted in part by the strong demand generated for the Newfield and Hess auctions last year, the sources, who had knowledge of the plan, said.

The advent of "fracking" shale formations is leading to a boom in US crude production which is expected to approach historic highs by the turn of the decade to levels that would have been unforeseen just a few years ago. "There is a possibility that these smaller producers are looking at their U.S. home market and see good prospects with the development we are seeing of tight oil," said Victor Shum, vice-president of energy

consultancy IHS Energy Insight, referring to the shale boom.

"That could be one factor driving them out of the Asian market, back to their home market. We are not seeing that as a trend as yet, but this could be the beginning as companies always evaluate their business options and portfolios," Shum added. Murphy's potential sale process, however, was still in the early stages and it could, in the end, decide not to sell, the sources said.

The Arkansas-based company has interests in oil and gas fields in Malaysia, Vietnam, Indonesia, Brunei and Australia. Malaysia is the biggest of Murphy's Asian portfolios, and accounted for more than 45 per cent of its total 2012 net production, according to the company's website. As on December 31, 2012, the company

Murphy Oil targets hydrocarbon production of 300,000 boepd

by 2015; Planned exploration and development activities in

Asia

Page 8: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

had majority interests in six separate production contracts in Malaysia, covering approximately 2.79 million gross acres, and held interests in four exploration licenses in Indonesia over a total of 3.381 million gross acres, according to the website.

The planned sale is driven less by share price underperformance and more by the desire to monetize part of the business at the valuation secured by Newfield, the sources said. In October, Newfield sold its Malaysian assets for $898 million, which translates into $59.87/barrell for 15 million barrels of proved reserves.

One of the deal structures being discussed was to sell just 30 percent of the Malaysian operations, one of the sources said. A Murphy spokesman did not immediately reply to an email and return a call to his office seeking comment. The sources declined to be identified as the company's plans are confidential. Murphy, which has a $10.7 billion market value, is working with a US-based consultant who has informally

reached out to potential buyers, including some sovereign wealth funds in the Middle East and Asian energy companies, which are relishing the opportunity to expand in their region. Brightoil Petroleum Holdings is one such company that has been keen to buy upstream assets for years.

The Hong Kong-listed oil trader and shipping firm has held talks with US oil companies Anadarko Petroleum Corp and Newfield to buy their China operations, sources said. Trading in Brightoil's shares has been suspended since February 11 pending an announcement of a "very substantial acquisition".-

Page 9: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

OECD offers to mediate on oil exploration in Congo gorilla park Reuters - UK

The OECD has offered to mediate between British oil company Soco International and conservation group WWF to determine whether exploration in the last refuge of Congo's mountain gorillas violates the

organisation's ethical standards.

WWF presented a complaint in October saying that Soco's oil activity in Virunga National Park, a UNESCO World Heritage site, violated the Organisation for Economic Cooperation and Development's (OECD) business guidelines. Soco, which denied the allegations, and the government of Democratic Republic of Congo, one of the world's poorest nations, want to explore the park's potential to generate oil revenue.

An initial report by the OECD's British office, released on Friday, said the WWF complaint raised important questions about how Soco should meet its obligations to contribute to sustainable development in Congo and that the issue merited further examination via mediation. The OECD said that if the two parties would not agree to mediation, it would conduct its own

investigation to determine whether Soco was in breach of the guidelines. The OECD has no power to enforce its standards.

Soco said it respected the OECD complaints process and hoped mediation would take place "outside the media spotlight". "The company looks forward to contributing to a further examination of how sustainable development can be achieved, whilst addressing the views of the international community together with the DRC's legitimate right to manage and protect its own energy resources," it said in a statement.

The WWF said the decision had set a precedent for using the OECD guidelines as a mechanism for safeguarding the environment. The OECD report found no specific human rights impact from Soco's activities and rejected complaints that there had been a lack of engagement with stakeholders, such as local residents, UNESCO and non-profit organisations.

It also dismissed WWF's complaint that a clause in Soco's contract, which exempts it from any tax or environmental legislation after the contract was signed, was a risk to environmental and human rights. The OECD acknowledged that SOCO had committed to environmental and social standards above the requirements of existing laws, including the OECD guidelines themselves.

It was concerned, however, that no environmental impact assessment of activities in the park had been published. In response, Soco said the Congolese government had now agreed to make the report public.Soco said that it had so far conducted a month-long seismic survey within the park, and after that initial testing, "no drilling has been planned or is even warranted", it said.

Page 10: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

Yemen gas price pressure mounts on France's Total BY DANIEL FINEREN (Reuters) –

Pressure on French energy giant Total to pay more for liquefied natural gas that it ships from Yemen has intensified, with the state news agency reporting that the long-term deal is being probed by public prosecutors. Total's leading role in building the $4.5 billion Yemen LNG export plant in 2005-09 made it the largest foreign investor in the country, which is one of the poorest in the Arab world. Since coming to power in 2012, the new government in Sanaa has complained that deals signed by officials under previous president Ali Abdullah Saleh undervalued the gas and deprived the state of desperately needed public funds.

Last week, official news agency Saba quoted unnamed judicial sources as saying the government's Public Funds Prosecution service, which helps to track down corrupt public officials and retrieve funds from them, had started to probe the arrangement with Total. The investigation, which began two months ago, encompasses several Oil Ministry officials linked to the deal and Total officials in Yemen, Saba reported without elaborating.

Contacted in France, Total did not respond to a request for comment. Yemen government officials were not available to comment on the Saba report. Stephane Michel, Middle East president of Total's exploration and production division, met with Yemen's oil minister Ahmed Dares in Sanaa last week to discuss altering prices of LNG sold to Total, Saba said without giving details.

Total is the biggest investor in Yemen's gas export industry through its 40 percent shareholding in Yemen LNG; U.S.-based Hunt Oil has 17 percent, state-run Yemen Gas Co 17 percent and Korea Gas Corp (Kogas) 6 percent. Before work on the LNG project began in 2005, Yemen LNG agreed on 20-year deals to sell 2.05 million tonnes per annum (mtpa) to South Korea, 2.55 mtpa to France's GDF-Suez and 2.10 mtpa to Total.

Kogas had a five-year renegotiation clause in its oil price- linked contract and last December agreed to a sharp price increase, to nearly $14 per million British thermal units (mmBtu) based on current oil prices from around $3, according to a statement from Yemen's cabinet.

The contracts signed by Total and GDF-Suez were structured differently; since the two Western firms intended to ship most of the LNG to the United States, their deals were linked to the U.S. Henry Hub gas price index. In mid-2005 the U.S. LNG price was around $7 per mmBtu, but by the time the Yemen facility loaded its first cargo in late 2009, U.S. gas prices had collapsed below $2, largely due to the U.S. shale gas production boom.

Page 11: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

As a result, Yemen LNG agreed to let Total and GDF-Suez divert the cargoes to Asia, where prices have risen sharply over the last few years and are currently near $20 per mmBtu. Around 80 percent of the

gas sold by Yemen LNG to Total last year was shipped to Asia, the Yemeni company said. In a statement last week, Yemen LNG defended the contracts signed with all three companies, saying they were subject to scrutiny at the time by the oil ministry, reviewed by parliament and then formally approved by the government.

Yemen LNG has estimated it will generate around $60 billion in revenues for the Yemeni government over the next 20 years. LNG has become important as a source of foreign currency for the country as frequent attacks on oil pipelines by militants and local tribesmen angry at the government cut oil exports .

Page 12: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

Saudi Arabia’s population to cross 37.2 million by 2020 Saudi Gazette report

The most recent data released by the Central Department of Statistics and Information (CDSI) show that the country's population has reached 30 million in 2013 and will rise to 37.2 million in 2020, Al-Eqtisadiah daily reported Saturday.

This number represents a growth of 2.7 percent compared to 2012, when the population was put at 29.2 million. The data showed that Saudis accounted for 20.3 million, which represents a growth of 2.15 compared to 2012.

Expatriates in the country accounted for approximately one third of the population, at 9.7 million, while Saudis accounted for two thirds at 67.6 percent.

The CDSI data for 2012 showed that Saudis accounted for 67.9 percent, at 19.8 million, while expatriates accounted for 32.1 percent, at 9.4

million.

The increase in expatriates’ numbers was 400,000 during 2013, and the country's ninth five-year plan called for reducing expatriates to 26.6 percent by 2014.

The average annual population growth in the country during the past 10 years was 3.2 percent. This growth was 3.4 percent in 2005-2006, 0.5 percent in 2007, 2.3 percent in 2008-2009, 7 percent in 2010, 4.6 percent in 2011, 2.9 percent in 2012, and 2.7 in during 2013.

Statistics indicate that at the current growth rate the country's population will reach 37.2 million by the year 2020. The CDSI expects the average annual population growth to continue and will reach 31.2 million in 2014, 32.2 million in 2015, 33.2 million in 2016, 34.3 in 2017, 35.5 million in 2018, 35.5 million in 2019, and 37.2 million in 2020.

Page 13: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

California solar plant greeted with fanfare, doubts about future BY RORY CARROLL AND NICHOLA GROOM - RETUERS

One of the world's largest solar projects, which uses heat from the sun to generate power in California,

opened on Thursday but may be the last of its kind in The Golden State.

Sprawling across 3,500 acres

in the Mojave desert near the

California-Nevada border, the

$2.2 billion Ivanpah solar

thermal power plant has more

than 300,000 mirrors that

reflect sunlight onto boilers

housed in the top of three

towers, each of which is 150

feet taller than the Statue of

Liberty. The sun heats water

inside the towers, creating

steam that moves turbines

and produces enough emissions-free electricity to power 140,000 homes, or about 392-megawatts.

Though Ivanpah is an engineering marvel, experts doubt more plants like it will be built in California.

Other solar technologies are now far cheaper than solar thermal, federal guarantees for renewable

energy projects have dried up, and natural gas-fired plants are much cheaper to build.

From a distance, the mirrors - known as heliostats - look like a pristine lake rising from the desert.

Ivanpah, about four times larger than New York City's Central Park, can even be seen from the

International Space Station. The Ivanpah plant was partially backed by a $1.6 billion loan guarantee

from the U.S. Department of Energy, the same controversial program that supported failed solar panel

maker Solyndra.

The opening of the Ivanpah plant marks a big step in federal and state renewable energy efforts, but

government funds for such projects under President Barack Obama have been largely tapped out. That

means the private sector must fill the gap at a time when building a natural-gas fired power plant costs

about $1,000 per megawatt, a fraction of the $5,500 per megawatt that Ivanpah cost. "Our job was to

kickstart the demonstration of these different technologies," Energy Secretary Ernest Moniz said in an

interview high up on one of the plant's three towers.

FAST-CHANGING MARKET

The solar market has changed dramatically since Ivanpah was approved by California regulators in

2010. Traditional solar panels, based on photovoltaic technology that uses the sun's light to generate

electricity, have undergone a massive drop in price in the last few years, leaving solar thermal far

Heliostats reflect sunlight onto boilers in towers during the grand

opening of the Ivanpah Solar Electric Generating System in the Mojave

Desert near the California-Nevada border February 13, 2014.

Page 14: New base special  16 february 2014

Copyright © 2014 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 endeavours 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

costlier. Ivanpah developer BrightSource Energy Inc has failed to secure a permit for any other solar

thermal projects in California in part due to environmental concerns, including fears that the intense

heat and energy around its plants would harm or kill desert birds.

Ivanpah is jointly owned by privately-held BrightSource, power plant owner NRG Energy Inc and

Google Inc. Aside from Ivanpah, NRG has invested in two other massive, government-backed solar

power plants in the U.S. West, but said smaller photovoltaic (PV) solar panel installations are the

future of the industry as it shifts toward distributed generation on rooftops and away from large solar

farms.

"There's no doubt that in terms of price competitiveness solar photovoltaic is cheaper," NRG Chief

Executive David Crane. "What really gets me excited in the morning is that there are 50 million

American buildings that should have solar PV on them."

Solar thermal projects like Ivanpah are more likely to crop up overseas in places like India, where land

and sun are plentiful and cheap natural gas is not abundant as it is in the United States, said Andy

Gillespie, project manager for Bechtel, the engineering and construction contractor for Ivanpah.

Late last year, Oakland-based BrightSource said it would focus increasingly on markets outside the

United States and in using its technology for industrial applications like enhanced oil recovery,

desalination and augmenting existing fossil fuel power plants. The market for solar thermal power will

reach 30 gigawatts globally by 2020, up from 2.5 GW at the end of 2012, BrightSource said at the time.

"We will have failed as a company if the last project we build is Ivanpah," BrightSource CEO David

Ramm said at the plant's opening. BrightSource is more than 20 percent owned by French power

equipment maker Alstom SA. Other investors include venture capital firms VantagePoint Capital

Partners and DBL Investors, Goldman Sachs Inc GS.N, Chevron Technology Ventures and BP

Ventures.

Page 15: New base special  16 february 2014

Copyright © 2014 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 endeavours have been used to ensure the accuracy of the information contained

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Copyright © 2014 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 endeavours 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

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Your partner in Energy Services

Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990

Energy Services & Consultants Mobile : +97150-4822502

[email protected] [email protected] Khaled Khaled Khaled Khaled Al Awadi is a UAE National with a total of 24 yearsAl Awadi is a UAE National with a total of 24 yearsAl Awadi is a UAE National with a total of 24 yearsAl Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates 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 General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for the GCC area via Hawk Energy Service as a UAE operations base , Most of Hawk Energy Service as a UAE operations base , Most of Hawk Energy Service as a UAE operations base , Most of 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 & the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & the experience were spent as the Gas Operations Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through gas compressor stations . Through gas compressor stations . Through gas compressor stations . Through

the years , he has developed great exthe years , he has developed great exthe years , he has developed great exthe years , he has developed great experiences in the designing & constructingperiences in the designing & constructingperiences in the designing & constructingperiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many of gas pipelines, gas metering & regulating stations and in the engineering of supply routes. Many 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 MOUyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUyears were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for the local authorities. He has become a reference for s for the local authorities. He has become a reference for s for the local authorities. He has become a reference for s for the local authorities. He has become a reference for

many of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE andmany of the Oil & Gas Conferences held in the UAE and Energy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satelliteEnergy program broadcasted internationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE

NewBase 16 February 2014 K. Al Awadi