New base special 10 april 2014

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NewBase 10 April 2014 Khaled Al Awadi

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

ADNOC orders catamarn ferries for offshore ops in UAE Press Release, April 09, 2014

Austal Limited has been awarded a contract from the Abu Dhabi National Oil Company (ADNOC) to design and construct two 45 metre high speed catamaran ferries. The contract is valued at approximately

$30 million. The high speed ferries will be designed and constructed at Austal’s Philippines shipyard. Construction will commence in the current quarter, with both vessels expected to be delivered in 2015. The high speed ferries will be used to transfer cargo, personnel, and equipment to ADNOC offshore installations. ADNOC is one of the world’s leading oil and gas companies, with substantial business interests in upstream and downstream activities, and steadily growing its fleet of offshore support vessels. Austal Chief Executive Officer Andrew Bellamy said it was pleasing to win the contract, which was in line with Austal’s strategy of targeting commercial vessel opportunities in the oil and gas market.

An Austal catamaran (Illustration only)




“Given the subdued commercial ferry market, we have repositioned our commercial business to be more

competitive and target sectors that will deliver value from the depth of knowledge Austal has in designing

and constructing these vessels,” Bellamy said.

“Expanding into the Philippines was a key step in increasing competitiveness and we have enhanced this

through the ongoing transfer of technology to the shipyard.

“We also identified new and emerging markets such the Middle East and the energy sector as key targets to

drive value from the shipyard.

“This contract is very pleasing as it demonstrates Austal’s ability to use our deep know-how and

competitive position to win work in this target market.

“It also illustrates the confidence that ADNOC has in Austal and our shipbuilding facilities in the

Philippines, which has been earned through a competitive tendering process and backed up by several

successful recent deliveries from Austal’s Philippines shipyard.”

Austal delivered an 80 metre commercial ferry to a repeat customer in December 2013 that was designed and constructed at its Philippines shipyard.




Abu Dhabi Spanish oil unit Cepsa acquires stake in Liberian exploration block Cepsa – Press Release

Compania Espanola de Petroleos (Cepsa), the Spanish oil company owned by Abu Dhabi’s International Petroleum Investment Company (Ipic), said it had acquired a 30 per cent stake in an exploration block off the Liberian coast in a so-called farm out agreement. The move into West Africa comes as part of the Madrid-based company’s expansion into emerging markets.

The block, LB-10, is operated by Anadarko Liberia Block 10, a wholly owned subsidiary of Anadarko Petroleum Corporation headquartered in Texas, Cepsa said. Cepsa did not say how much it intends to spend on the stake. Under the farm out agreement, an oil and gas company will




typically bring on board a third party to share expenses of exploration and drilling in return for a cut of the final profits.

In this agreement, Cepsa will participate in the drilling of two exploratory wells before August 2016, it said. The block is in a deep water area, with depths of between 1,000 and 2,000 metres. Cepsa and Anadarko, which has extensive experience as an operator in this basin, are joined in the block by London-based Liberia Japan Petroleum and Repsol of Spain.

Cepsa’s chief executive Pedro Miro said in November that the company plans to spend US$10 billion in the next five years to expand its exploration and petrochemical businesses in North Africa, South America and South East Asia. In the same month, Cepsa and partner Strategic Resources bought Coastal Energy for $2.2bn. Its biggest acquisition since 1999, Coastal Energy gives Cepsa a portfolio of oil and gas assets in South East Asia.

Cepsa’s largest production facilities are in Algeria and it would like to invest a further $1bn in that country, where it boasts a long-standing relationship with the government, Mr Miro said last year. epsa’s offshore portfolio includes two exploratory blocks in Brazil and one in Suriname as well as exploration and production blocks in Thailand and Malaysia.

Ipic, formed by the Abu Dhabi Government in 1984 to invest in energy around the world, made a 10 per cent investment in Cepsa in 1988 and increased its stake to 47 per cent in 2009. It became the sole shareholder in 2011 after buying the stake held by France’s Total for $5.4bn.

Abu Dhabi, which holds about 6 per cent of the world’s oil reserves, has been buying global energy assets to diversify its stores of wealth and to buy companies that can enhance exploration and production at home through advanced technologies.

Cepsa, which also works in Brazil, Canada, Panama and Peru, has said that it is also keen to grow in the field of petrochemicals, where demand from Asia is expected to accelerate. It is building a plant in Shanghai to produce phenol, a petrochemical used in the production of detergents and pharmaceuticals.

CEPSA, 100% owned by IPIC, is an energy group with a workforce of close to 10,000 employees, engaged in activities that span the hydrocarbon value chain: exploration and production of oil and gas; refining, transportation and marketing of petroleum products and natural gas; biofuels; and electricity cogeneration and sales. CEPSA has developed a world-class chemicals division that is tightly integrated with its oil refining segment, where feedstock is manufactured and sold for the production of high value-added components chiefly used in making new-generation plastics and biodegradable detergents. Not only is CEPSA a major energy player in Spain, but it is also broadening its global portfolio of operations in countries such as Algeria, Brazil, Canada, Colombia, Kenya, Malaysia, Panama, Peru, Portugal, Thailand and Suriname, selling its products around the world.




Opec to make room for extra crude from Iran, Iraq, Libya Source Bloomberg + OPEC

Opec, which supplies 40% of the world’s oil, will accommodate additional output from members Iraq, Iran and Libya, secretary-general Abdalla El-Badri said, without explaining how it will do so under the group’s ceiling.

The Organisation of Petroleum Exporting Countries will wait until 2015 to discuss output targets with Iraq, which currently operates outside the production-quota system for each of the group’s other 11 member countries, El-Badri told reporters yesterday in Doha. Opec foresees gradual increases from Iraq and Iran, while Libya is capable of boosting output by as much as 1mn barrels within a month, he said.

“There is no problem for Opec to absorb any production increment from Iraq and Iran in 2014,” El-Badri said. “When Libya output comes back, we will accommodate it because its production is in our numbers.” Opec is set to boost output as its second-biggest producer Iraq pumps at a 35-year high and Libya’s government makes progress in talks with rebels who control fields and export terminals in the country’s oil-rich east. Sanctions on Iran over its nuclear programme have constrained the country’s production and sales of crude.

Opec plans to meet on June 11 in Vienna to review its output target, now at 30mn bpd. Global demand will increase by 1.1mn bpd in 2014, and the group will produce up to 30mn bpd for the rest of the year, El-Badri said. “Of course, ministers can change that when they meet,” he said.

Opec pumped 30.3mn bpd in March, data compiled by Bloomberg show. The group has yet to determine how to make room for potential output increases from Iraq, Iran and Libya, El-

Badri said. “We will discuss that when they come to the point to discuss their increase,” he said. Iraq, with the world’s fifth-largest oil reserves, is rebuilding its energy industry after decades of war and economic sanctions. Helped by investors including Royal Dutch Shell and Exxon Mobil Corp, it leap-frogged Iran in 2012 to rank second in Opec, after Saudi Arabia. Iraq pumped 3.4mn a day in March, according to data compiled by Bloomberg, and targets 9mn a day.

Iran raised production to 2.9mn bpd last month, an increase of 65,000 barrels from February, the data shows. Libya, which produced 250,000 bpd in March, holds Africa’s biggest crude reserves. Libya’s government reached an agreement with eastern rebels on April 6 to reopen two oil ports.

Opec’s spare production capacity is at an adequate level this year, and producers and consumers are happy with current oil prices, El-Badri said. The price for Opec’s basket of crudes rose $1, or 1%, on Tuesday to $103.16 a barrel, the group’s secretariat reported yesterday.

The group’s 12 members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the UAE and Venezuela.




Natural gas will meet 26% of global energy demand by 2035: El-Badri Gulf Times

Natural gas will have a greater share in meeting global energy demand at 26% by 2035 compared with 22% in 2010, says Opec secretary-general Abdalla Salem El-Badri. “The global energy demand is set to grow”, El-Badri said, while delivering ‘The 2014 Abdullah bin Hamad al-Attiyah International Energy Awards lecture’ at the Museum of Islamic Art on Tuesday night. In Opec’s 2013 World Oil Outlook, world energy demand rises by 52% over the 2010 — 2035 period.

Renewables, from wind, solar, small hydro and geothermal, are expected to grow at more than 7% a year, often as a result of government support and incentives. They certainly hold promise; but globally their share of the energy mix will still be less than 3% by 2035, given their low initial base. Both the share of biomass and nuclear remain at steady levels throughout the 2010-2035 period, at around 9% and 6% respectively, El-Badri said.

So, it is fossil fuels that will continue to play the dominant role in meeting demand, although their overall share will fall from 82% to 80%. Throughout most of this period, oil will remain the energy source with the largest share, although its overall share declines from 33% to 27%. Coal’s share remains relatively stable at around 27%.

“Focusing specifically on oil, our projections see demand increasing by around 20mn barrels a day during the period to 2035. And there will be a big shift in the balance between the OECD area and elsewhere, leading to a steady decline in demand in all OECD regions. It will be developing countries that drive demand, with developing Asia accounting for most of the global increase,” El-Badri said.




The Opec secretary-general highlighted an issue that many experts are talking about, which is the role of US tight oil in the industry’s future. “There is no doubt that this is a welcome addition. It adds depth and diversity to the market. But questions remain as how sustainable this will be in the long-term. In Opec’s view, we see US tight oil, including NGLs, reaching 4.9mn barrels a day by 2018, before declining thereafter,” El-Badri said.

Earlier, El-Badri highly praised HE Abdullah bin Hamad al-Attiyah’s contributions to the global energy industry. “My own personal acquaintance with HE al-Attiyah goes back many decades. His achievements over the years are ones to be extremely proud of. In Qatar, he has been a driving force behind the country’s transformation into one of the world’s major energy hubs.

“At Opec too, he has played a prominent role in helping the organisation through some difficult times. He has been able to use his charm and humour to bring people together. And he has been able to broker solutions, when there has been discord. It is appropriate then, that the awards given tonight recognise the hard work of other people associated with the industry,” El-Badri said.

Former Lebanese prime minister Fuad Siniora hands over a special award to HE Abdullah bin Hamad al-Attiyah, Chairman of Administrative Control & Transparency Authority for “lifetime achievement for the advancement of the international energy industry” at a well-attended

ceremony at the W Hotel last night. Also seen in the picture is Bart Cahir, president and general manager of ExxonMobil Qatar.




Tunisia: PA Resources provides update on Tunisian farm-out to EnQuest Source: PA Resources

In May 2013 PA Resources entered into an agreement to sell to EnQuest 70% interests in, and to transfer the operatorship of, the offshore assets in Tunisia which include the Zarat Permit and the Didon

Concession. Due to the political situation in the country the transaction is still be ratified by the Tunisian authorities.

A key requirement to close the sale to EnQuest of an interest in the Zarat licence is Parliamentary approval of Avenant 5, extending the Zarat licence. Despite previous assurances from the Tunisian authorities that approval of Avenant 5 is imminent it is becoming clear that a favourable decision is not certain in the short term.

It is the firm belief of PA Resources that an early approval of Avenant 5 is in the best interest of Tunisia, especially as the company are working very closely with ETAP as PA’s Zarat partner to deliver a Plan of Development for the Zarat Field that will satisfy the needs of the Tunisian economy. PA Resources is working hard together with the relevant authorities to expedite the approval process and will continue

to explore all avenues to ensure the completion of the transaction and to realise the returns from the significant investments PA has made in these licences over many years.

Additional background information on the assets :-

All three fields are located in the Gulf of Gabes, offshore Tunisia.

Didon Oil field : Didon is located 70km offshore Tunisia, in a water depth of 70m. The field was discovered in 1976, with first oil in 1998 and production to date of 31 MMboe. Current daily production is around 1,400 Boepd. Didon is a mature offshore oil field with a good quality reservoir and with a current watercut of approximately 60%. Further field development is planned including a two infill well programme.

Zarat :- Located 80km offshore, in 90m water depth. Discovered in 1992, it is an undeveloped offshore oil and gas condensate discovery in moderate permeability fractured limestone.

Location of Didon and Zarat fields, offshore Tunisia (Source: PA Resources)




Tullow and Africa Oil reach threshold in Kenya South Lokichar Basin Press Release

The independent company Tullow Oil plc (Tullow) from UK and the Vancouver-based Africa Oil Corporation (Africa Oil) have accumulated sufficient reserves over the last two years to reach the threshold to develop the Blocks 10BB and 10A of the South Lokichar Basin in the north of Kenya in East Africa.

In 2010, Africa Oil and Tullow entered in farm-out agreement for the Blocks 10BB and 10A with Tullow becoming the operator. As a result Tullow and Africa Oil shared 50/50 the working interests on these acreages in the South Lokichar Basin.

Since Loperot-1 in 1992, Africa Oil, then with Tullow, accumulated discoveries such as Ekales-1 and Agete-1, and more recently in Amosing-1 and Envoi-1 in acreage of the the East African Rift Basin lying across Ethiopia and Kenya. Located approximately 500 kilometers east of Lake Albert, the Lokichar Basin benefit from the same geological structure as Lake Albert Rift Basin.

These discoveries in the Block 10BB have shown a high quality crude oil, but with a waxy gravity of 29 degree API. Considering that exporting this crude oil will suppose the construction of a 850 kilometers pipeline to the East Coast of Africa on the Indian Ocean, the waxy nature of the crude oil requires a deep evaluation of the different concepts to treat and export this crude oil on such distance. Although the South Lokichar Development is an onshore crude oil project, the distance from shore to export will have a major impact on the capital expenditure of the project.

But, since most of the exploratory wells yielded higher reserves than expected, Tullow and Africa Oil have estimated the South Lokichar

recoverable reserves to 600 million barrels of oil (bo) that should exceed 1 billion bo in respect with the upside still to be appraised.

Tullow and Africa Oil start pre-FEED on South Lokichar

Tullow and Africa Oil performed an intensive survey covering 100,000 square kilometers across Ethiopia and Kenya that will take years to fully developed the Lokichar Basin acreage.

In the meantime Tullow and Africa Oil have estimated to reach enough proven reserves to work on a South Lokichar start-up phase project. During this start-up phase, Tullow and Africa Oil are planning to put in production the first wells and to transport the crude oil by trucks and rail.




In parallel the two partners will carry out the pre-front end engineering and design (pre-FEED) for the South Lokichar full field development including the 850 kilometers export pipeline.

Because of its waxy nature, the crude oil produced from the Lokichar Basin tends to solidify at ambient temperature.

Therefore the pipeline to connect South Lokichar to the Indian Ocean will require energy intensive trace heating all along the 850 kilometers.

Currently used in Canada, the heat tracing technique will suppose significant power supply

along the pipeline in addition to the pumping stations.

In this context, Tullow and Africa Oil are planning to complete the design phase of the South Lokichar project by end of 2015 in order to start construction of the West-East Kenya pipeline in following.

Block 10BA

The Company and its operating partner on Block 10BA, Tullow, have completed a 1,450 kilometer 2D seismic

program, split evenly between onshore and offshore, half of which was acquired in 2013. The plan is to acquire

an additional 350 kilometers of onshore 2D seismic over the block during 2014 to define prospects in the Kerio

and North Lokichar Basins. Preparations are underway to drill two exploration wells in the West Turkana Basin

commencing with the Kiboko prospect in the second half of 2014. The 2D seismic acquired to date exceeds the

work obligations of the initial exploration period under the Block 10BA PSC which expires in April 2014.

Block 12A

The Company and its partners on Block 12A have completed a 548 kilometer 2D seismic acquisition program in

2013, and committed to an additional 120 kilometer infill program that was completed in February 2014. The 2D

seismic program is mainly focused in the Kerio Valley in the southwestern portion of the block. The 2D seismic

acquired to date exceeds the work obligations of the initial exploration period under the Block 12A PSC which

expires in September 2014.

Block 10A

In the first quarter of 2013, the Company and its operating partners on Block 10A completed drilling the Paipai-1

exploration well. The Paipai-1 well tested a large four-way closed structure with Cretaceous-age sandstone

targets at multiple depths. Paipai-1 spudded in September 2012 and completed drilling in the first quarter of 2013

to a total depth of 4,255 meters. Light hydrocarbons were encountered while drilling but attempts to sample the

reservoir fluid were unsuccessful. The license has subsequently been relinquished as the Tullow-Africa Oil

partnership focuses its activities on the main Tertiary Rift Play across Kenya and Ethiopia. The Paipai-1 well fully

satisfied the remaining work obligations under the Block 10A PSC.




Tower Resources announces placing to raise £19.3 million Source: Tower Resources

Tower Resources, the AIM listed Africa focused oil and gas exploration company, has announced: a placing and subscription to raise £19.3 million (US$32.0 million) before expenses; the proposed acquisition of Rift Petroleum Holdings, a company with interests offshore South Africa and onshore Zambia; and the proposed farm-in to Block 2B onshore Kenya alongside Taipan Resources and Premier Oil. These transformational transactions will create a diversified African portfolio with material activity and anticipated newsflow in the coming months and years, including 2 high impact wells in the next 9 months.

The Company has also announced its preliminary results for the 12 months ended 31 December 2013.

Highlights

• £19.3 million (US$32.0 million) to be raised by way of a Placing with certain existing and new

investors at a price of 3.5 pence per Placing Share

• As a result of the Placing, the Company is now fully financed for the remaining firm well costs to

drill the Welwitschia-1 well offshore Namibia, maintaining its 30% interest in the licence while

minimising dilution of the overall interest to the shareholders

• Placing proceeds to be used to fund:

o The Company's share of the remaining firm well costs associated with the Welwitschia-1

well in Namibia, planned to spud late-April 2014 and targeting net risked prospective

resources of 496mmboe

o Entry into South Africa and Zambia and funding ongoing costs associated with the all-share

acquisition of Rift Petroleum

o Funding for proposed farm-in to Block 2B, onshore Kenya, alongside Premier Oil and Taipan

Resources and to meet the Company's share of expected costs associated with the drilling

of the Badada-1 well in Q4 2014

o Anticipated entry into the Dissoni Block, offshore Cameroon, subject to final agreement,

and funding for 3D seismic acquisition in Q1 2015

• Proposed acquisition of Rift Petroleum in exchange for the issuance of 550 million ordinary shares

in Tower Resources (the "Consideration Shares")

o Privately owned exploration company with exposure to what the Directors believe are two

highly prospective areas offshore South Africa and two early stage licences onshore Zambia

o Provides only significant AIM exposure to emerging E&P region offshore South Africa with

50% interest in Algoa-Gamtoos, located between licences which have recently been farmed

into by Total and Exxon - a farm-out process is underway with newly interpreted 3D seismic

expected to be available in early Q3 2014

o Vendor shareholder contributing US$7.4 million in cash prior to completion to fund 2D

process/interpreting and 3D seismic acquisition/process/interpreting

• Farm-in to 15% of Block 2B Kenya, agreed with Taipan Resources, for 15% working interest (Taipan

currently 45%). Premier Oil (55%) farmed into Block 2B in December 2013

o Farm-in terms - US$4.5 million cash, 9 million Tower shares in two tranches and US$1.0

million contingent payment on spud of a second well

o Drilling of Badada-1 well anticipated Q4 2014, potential new Tertiary rift play opener in the

Anza basin

• Tower has been named as preferred bidder in respect of the Dissoni Block, offshore Cameroon

• Announcement of preliminary results for the period to 31 December 2013




Graeme Thomson, Chief Executive Officer of Tower Resources, said:

'I am very pleased with the success of this Placing which broadens the institutional shareholder base in difficult markets. I am even happier with the announcement of the accompanying acquisition of Rift Petroleum and the conditional farm-in to Block 2B Kenya. These transactions, combined with our existing assets in Namibia and Western Sahara, and our ongoing negotiations in Cameroon, Madagascar and elsewhere, will transform Tower into a true Pan-African exploration company. On completion Tower will hold a diversified asset portfolio, in highly prospective hydrocarbon regions and at various stages of development, which should deliver numerous operational milestones in the coming months and years. Each asset has the individual potential to deliver substantial upside for our investors.

The acquisition of Rift Petroleum and the farm-in to Block 2B are both products of the hard work of our team over the last 12 months, and result in Tower's exposure to what we consider to be some of the most exciting exploration acreage in Africa. I look forward to updating the market on our further progress.'

Jeremy Asher, Chairman of Tower Resources, added:

'The Board is delighted to be able to announce the signing of these transactions, and we hope that shareholders who may have been impatient for news can now see why it has taken a little time to coordinate and deliver their conclusion. Protecting and growing shareholder value is at the forefront of our thinking on all matters, and the recovery in Tower's share price presented the opportunity to fund our remaining costs associated with the drilling of the Welwitschia-1 well through a placing that is far less dilutive to shareholder interests than a farm-out. The team has been searching for a good entry point to South Africa for some time, so the chance to acquire the excellent Rift Petroleum assets there and in Zambia was also too good an opportunity to pass up, and we are delighted to welcome Julian McIntyre (the founder and indirect majority owner of Rift Petroleum) as a significant shareholder. Directors were unable to participate in this placing, owing to the fact that the Company was considered to be in a close period under the AIM Rules, but the placing was nevertheless over-subscribed and brings a number of new institutional investors into the company. As always, the Board would like to thank our existing shareholders for their continuing support and to extend a warm welcome to our new shareholders.'




US: Riding shale boom - U.S to become major LPG supplier to China Source: Reuters

A deal between China's top refiner Sinopec Corp and Phillips 66 could be a game changer that signals the United States is on track to become one of the top suppliers of liquefied petroleum gas (LPG) to the world's second-biggest economy. China is the biggest consumer of LPG, a compressed mix of propane and butane, used for heating and transport, and now increasingly being considered for making petrochemicals.

As demand in China soars, the U.S. shale boom has led to a surge in production of LPG, which is bringing down global prices and challenging established suppliers in the Middle East. Washington restricts exports of crude and has only slowly opening up liquefied natural gas shipments for energy security reasons, but there are no such limits on LPG sales.

China's first purchases of U.S. LPG were made last year, amounting to 3,530 barrels per day, according to Chinese customs' data, in deals done by little known private firms. But marking the entry of big oil Sinopec Corp and U.S. refining company Phillips 66 struck a deal last month to supply U.S. LPG for delivery likely to start in 2016 and put by traders at about 34,000 bpd worth around $850 million at current prices.

Sinopec, China's top ethylene producer, is looking at using U.S. LPG for making petrochemicals due to cheaper pricing and shortages of the traditional feedstock naphtha, a product from processing crude oil. 'The U.S. shale boom could lead to a fresh way of developing China's petrochemical sector,' said Mao Jiaxiang, deputy head of Sinopec's research arm, China Petrochemical Consulting Corp. 'We're evaluating the competitiveness of U.S. light-end feedstocks versus naphtha as a petrochemical feedstock,' added Mao.

U.S. exports of LPG could roughly triple by 2020 from last year to around 635,000-795,000 barrels per day, energy consultancy FACTS Global Energy estimated.

China has lined up about 100,000 bpd of long-term U.S. LPG imports with supplies mostly starting in 2015-16, including the Sinopec deal and otherwise mainly involving smaller firms, traders said. China's total LPG imports could reach half-a-million bpd by 2020, up nearly four-fold from last year and overtaking other key Asian importers such as Singapore and Indonesia, they said.




'The supply overhang of U.S. LPG...would put America in direct competition against the Middle East, vying for the China market,' said Al Troner of Houston-based Asia Pacific Energy Consulting. Middle East suppliers such as Qatar, the United Arab Emirates and Saudi Arabia together supplied 80 percent of China's LPG imports of 132,000 bpd in 2013. China is the world's largest LPG consumer, using about 874,000 bpd, though the bulk of this is for heating or transport and only 5 percent is used in the petrochemical sector. Most of China's own LPG supplies come as

a by-product in refineries and normally contain olefins containing coke that can create unwanted residue in steam crackers that makes it more dirty and expensive to use as a feedstock for petrochemicals. LPG from gas fields contains no olefins.

Colin Shelley of FACTS Global Energy said that China's imports had the potential to rise sharply now that LPG was being increasingly looked at as a feedstock to make petrochemicals. 'Sinopec is taking the lead. We may see CNOOC, we may also see PetroChina,' he said.

Last June, Sinopec proposed building a $3.1 billion ethylene plant in eastern China, which would be the company's first to use natural gas and LPG as a feedstock. CNOOC, parent of CNOOC Ltd, is also considering using LPG for its new 1 million tonne-per-year cracker in Guangdong province, said a company official. Currently traders estimate U.S. LPG costs roughly $850 per tonne, $50-100 per tonne lower than Middle East supplies for May delivery to China. It is also cheaper than naphtha for China delivery at about $1,000-1,200 per tonne.

The bulk of China's 100,000 bpd U.S. LPG orders is due for delivery from 2015-2016 when U.S. export facilities are completed and after an expansion of the Panama Canal to allow through bigger tankers, known as very large gas containers (VLGC), to cut the journey time to Asia by more than two weeks. LPG is transported in tankers at around minus 40 degrees Celsius, although not super-chilled to the extent of LNG at about minus 160 degree Celsius.

Apart from Sinopec, other Chinese buyers of LPG are mostly private investors in propane dehydrogenation (PDH) plants, which process propane into propylene, used in plastic products. China's Tianjin Bohai Chemical Industry Group launched in September a 600,000 tonne-per-year PDH plant in the northern city of Tianjin, the first of about 10 such plants being built or planned to cash in on a shortage of propylene. The plants have been tying up with U.S. LPG firms such as Enterprise Product Partners and Targa Resources Corp.




EIA: Half of 2013 Power Plant Capacity Additions Came from Natural Gas Source: EIA, April 09, 2014

Natural gas-fired power plants accounted for just over 50% of new utility-scale generating capacity

added in 2013. Solar provided nearly 22%, a jump up from less than 6% in 2012. Coal provided 11%

and wind nearly 8%. Almost half of all capacity added in 2013 was located in California. In total, a

little over 13,500 megawatts (MW) of new capacity was added in 2013, less than half the capacity

added in 2012.

Natural gas capacity additions were less than in 2012, as 6,861 MW were added in 2013, compared to 9,210 MW in 2012. The capacity additions came nearly equally from combustion turbine peaker plants, which generally run only during the highest peak-demand hours of the year, and combined-cycle plants, which provide intermediate and baseload power.

Nearly 60% of the natural gas capacity added in 2013 was located in California. The state is facing resource adequacy concerns as well as the need for more flexible generation resources to help complement more variable-output

renewable resources, particularly solar, being added to the system.

California added 6,395 MW of capacity, 47% of all capacity added in 2013. The state has added a large amount of new capacity in an effort to deal with a number of problems challenging the state’s resource adequacy and grid reliability, including:

California’s once-through cooling water policy, passed in 2010, is requiring power plants using once-through cooling—a substantial portion of the state’s existing capacity—to either invest in costly retrofits to reduce their water consumption or retire over the next decade.

The unexpected outage in 2012, and subsequent permanent retirement in 2013, of the 2,150 MW San Onofre Nuclear Generating Station (SONGS) plant in Southern California further exacerbated the state’s near- to mid-term resource adequacy and reliability concerns.

California’s Renewable Portfolio Standard policy requiring 33% renewable energy by 2020 has led the state’s electric utilities to procure new renewable capacity at a far higher rate than any other state. Integrating these growing levels of variable renewable generation has required more flexible resources to maintain grid

reliability and to adapt to the grid’s evolving generation needs.




Botswana: Tlou Energy completes coring program at its Lesedi CBM project in Botswana , Source: Tlou Energy

Tlou Energy has announced that coring of D3-3X, the third and final core-hole of the three well coring program at the Lesedi CBM project area, was completed on 1st April 2014. After finalising wireline logging operations the rig was released from all coring operations marking completion of

the current program. The core-holes intersected well-developed coal sequences throughout the Serowe, Morupule and Kamotaka formations. Coal quality and thickness results are in-line with pre-drill expectations. A total of 80 coal gas desorption tests have been captured across the three core-holes. Samples will remain in gas desorption analysis for several weeks and will determine the gas content of the main target coal seam as well as other potential targets in surrounding coal seams. Early results for the Lower Morupule coal seam, the main target reservoir, are particularly encouraging. Once gas desorption testing has been completed, a series of additional tests will be conducted on the core such as isotherm testing and coal petrographic analysis. Early results from the core-holes complement Tlou’s existing knowledge of the Lesedi CBM project area.

The new core-hole data will assist with initial reserves certification in the Lesedi CBM project area and the identification of future drilling sites. Lesedi and Selemo Pods : The Lesedi and Selemo pilot pods continue to de-water. Plans are on-track to upgrade the pumps to increase water lifting capacity in April.




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Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al 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 Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as

Technical Affairs SpTechnical Affairs SpTechnical Affairs SpTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for ecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for ecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for ecialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for

the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations

Manager in Emarat , responsManager in Emarat , responsManager in Emarat , responsManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed ible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed ible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed ible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed

great experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructinggreat experiences in the designing & constructing of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply

routesroutesroutesroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs fo. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs fo. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs fo. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for r r r

the local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andthe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broEnergy program broEnergy program broEnergy program broadcasted adcasted adcasted adcasted

internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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NewBase 10 April 2014 K. Al Awadi

Economy & Finance

New base special 10 april 2014