New base special 24 june 2014

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NewBase 24 June 2014 Khaled Al Awadi

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Abu Dhabi’s Mubadala Petroleum makes Malaysian gas discovery OffSore Energy

Mubadala Petroleum yesterday said that it had made a “substantial” gas discovery in offshore Malaysia. This would be the company’s fourth find in its operating block SK320 in the South China Sea. “Together these discoveries represent a very significant hydrocarbon resource, with the potential for a commercially attractive, integrated development,” said Maurizio La Noce, the chief executive of Mubadala Petroleum. “We will be working closely with our partners, Petronas Carigali and Shell, to evaluate all the options for commercialising the resources in the block in

due course.” As the operator, Mubadala Petroleum owns a 55 per cent share in Block SK320, Petronas Carigali owns 25 per cent and the rest is held by Sarawak Shell.

The block was awarded to Mubadala in 2010. In January, Mubadala Petroleum, a unit of Abu Dhabi’s investment fund Mubadala, signed a deal with Shell to swap equity in two exploration blocks in offshore Malaysia. Shell gained its 20 per cent interest in Block SK320 under the agreement while Mubadala Petroleum received a 20 per cent interest in the Deepwater Block 2B. Shell operates Deepwater Block 2B.

To meet the growing energy demand, Mubadala Petroleum is building a gas portfolio in Africa, the Caspian region and Asia. It is also behind the two gas-import projects – the Qatar-UAE Dolphin pipeline that is undergoing expansion and the Emirates liquefied natural gas (LNG) floating terminal in Fujairah under construction. The Emirates LNG terminal is expected to be ready in 2016.

In October, Mubadala Petroleum started gas production at its Ruby gasfield in Indonesia. The Abu Dhabi company and its partners Total E&P Sebuku and Inpex South Makassar have invested about US$500 million in the project.




Saudi's SAFCO says delayed Urea plant start-up on end of year 2014 Reuters

Saudi Arabian Fertiliser Co (SAFCO) said the start of commercial operations at its SAFCO-5 plant had been delayed until the first quarter of next year, while the firm also announced a reduced dividend for the first half of 2014.

The delay in the start-up of the plant, originally scheduled for the third quarter of 2014, was due to construction work falling behind the original timetable, a statement to the Saudi stock market said on Monday.

SAFCO-5 will be one of the largest urea plants in the world once completed, according to the company's website, with an annual production capacity of 1.1 million tonnes.

Meanwhile, the company - a unit of Saudi Basic Industries Corp (SABIC) - announced in a separate filing a dividend of

4 riyals per share for the first half of 2014. This is down from 6 riyals per share in the corresponding period of last

year, according to Thomson Reuters data.

SAFCO attributed the fall to the company using its own cash to fund the construction of SAFCO-5, rather than taking on bank loans, which kept the firm's balance sheet free of debt.

The delay would not increase the total cost of building the plant, which had been put at 2 billion riyals ($533 million), the first statement said.

The plant is being built by Italian contractor Saipem . Construction began in December 2011 and was expected to take 26 months to complete. However, it is now scheduled to finish in the fourth quarter of 2014, with a three-month trial run of the project planned ahead of commercial start-up, it added.




Iraqi oil exports from the Gulf near record, insulated from turmoil By Alex Lawler LONDON, June 23 (Reuters

Iraq oil exports from its southern terminals are near record rates in June despite attacks by Sunni Islamist insurgents and their capture of swathes of territory in northwest and central Iraq, according to loading data and industry sources. The insurgency and evacuation of some staff by oil majors Exxon Mobil and BP despite moves by the Baghdad government to tighten security have raised concern that Iraq's crude exports could slow down. The worries have boosted oil prices, sending Brent crude to a nine-month high above $115 a barrel on Thursday. Brent crude was up at around $115 a barrel on Monday, supported by worries about potential disruptions to supply from Iraq. Iraqi officials say the southern regions that produce some 90 percent of the country's oil are completely safe from the Islamic State of Iraq and the Levant (ISIL), which has seized much of the north in a week as Baghdad's forces there collapsed. Exports from Basra and Iraq's other southern terminals have averaged 2.53 million barrels per day (bpd), according to shipping data for the first 21 days of June tracked by Reuters. Two industry sources, who also monitor the exports, had a similar estimate.

"I do not think this turmoil will have any impact on Basra," a trader with a company that buys Iraqi crude said on Monday. "It is too far south."

The export rate so far in June is close to May's average of 2.58 million bpd - the highest since 2003. However, it is not as high as the 2.70 million bpd Iraqi officials have said is planned for June.

"So far, exports are looking very steady compared with last month. There does not seem to have been any spillover in the south," said an industry source

who tracks tanker shipments. Iraq's oil potential was held back by decades of wars and sanctions. The country has been expanding oil production in the south since Western companies signed a series of service contracts with Baghdad in 2010.

Total exports from Iraq's northern and southern ports hit a record high of 2.8 million bpd in February. But northern shipments of Kirkuk crude have been shut since March 2 due to attacks on a pipeline to Turkey, keeping total exports below their potential.

While there is no sign yet of a drop in southern exports, traders were concerned that fallout from the insurgency may impact further increases in Iraqi production.

"The turmoil may slow things down - not exports, but production may not increase," said the trader whose company buys Iraqi crude. Although the pipeline from Kirkuk has been shut since March, the autonomous Kurdistan region has been exporting some of its own oil output by truck and via a new pipeline to Turkey, in defiance of the central government.

Kurdistan's Ministry of Natural Resources said on Friday it delivered a second oil shipment through the port of Ceyhan to the buyers, and two more tankers were loading.




Huge modules made by L&T Oman's Sohar facility sets sail for oil fields of Abu Dhabi © Times of Oman 2014

Muscat - Over 5,500 tonnes of steel shaped into giant multi-storied structure that the oil and gas industry refers to as a 'Topside' took to the sea last month from the water-front of the Modular Fabrication facilities of Larsen & Toubro. These modules are bound for the Nasr fields of Abu Dhabi's Abu Dhabi Marine Operating Company (ADMA OPCO).

The CEO of ADMA OPCO flagged off the barge carrying two topsides from the company's water front facilities under a banner that reads 'Made with pride in Sultanate of Oman. All persons present at the water front became emotional, upon the spectacle of the giant structures, who had become part of their lives for past 17 months during the manufacturing phase, were being dispatched.

Recruitment of talent

From a larger perspective, these structures reflect the effectiveness of the 'Omanisation programme' institutionalised at L&T MFY, Sohar.

It's a programme that begins with recruitment of talent from around the country and continues through careful assessment of potential and development of the relevant skills. L&T is among the few companies in the region to have set up a full-fledged 'training centre' within the campus. The skills taught here cover a broad range of welding processes -- submerged arc welding (SAW), shielded metal arc (SMA), flux-cored arc (FCA). Trainees who successfully complete the course receive competency certificates that are becoming sought after in the industry. Besides nurturing Omani skills, these mega projects helped in development of local ancillary industries thus immensely adding to in country value creation.

With the successful completion of the ADMA OPCO project, the company now has the capability and expertise to undertake new projects from GCC countries besides being available for the nation's offshore oil exploration programme as well as for Orpic expansion project.




Sonde expects to drill Fisal-1 well in Q4 , Press Release

Sonde Resources has provided an update regarding the company’s operations in the Joint Oil

Block.

The Joint Oil Block is a 768,000 acre license, equally contributed by Tunisia and Libya, straddling the maritime boundary in the central Gulf of Gabes, about 100 km (62 mi) offshore in water depths averaging 95 m (312 ft).

“The preparations for drilling the Fisal-1 well have progressed. All long lead materials (casing and drilling

support material) have been ordered and initial deliveries arrived in Sfax, Tunisia (shore base) last week.

“Preparations are underway to perform the site surveys in anticipation of starting drilling operations in

early fourth quarter of 2014,” the company said in a release.

The 3D seismic survey acquired in late 2013 has been processed and initial evaluation of the data confirms the potential nature of the Hadaf structure in Libyan waters. Detailed interpretation work of the processed seismic data is underway.

Fisal is a high-quality prospect, immediately adjacent to the Zarat discovery in Tunisian waters, with Eocene oil potential and Upper Cretaceous gas / condensate potential.

Sonde Resources Corp. is a Calgary, Alberta, Canada based energy company engaged in the exploration and production of oil and natural gas. Its operations are located in Western Canada and offshore North Africa.




ExxonMobil, Turkey in shale gas JV talks Reuters

US oil firm ExxonMobil is in talks with state-run Turkish Petroleum Corporation over a venture to explore for shale gas in the country's southeast and northwest regions, a Turkish energy official said.

Exxon held talks with TPAO in 2012 to over a partnership in shale, but the negotiations were inconclusive. Turkish officials say talks have since advanced and are likely to result in an agreement. "ExxonMobil is coming to Turkey to partner up with TPAO," Selami Incedalci, the head of the energy ministry's General Directorate of Petroleum Affairs, said late on Sunday. He said ExxonMobil was interested in onshore opportunities in the southeast and Thrace, in northwestern Turkey. Turkey wants to reduce its annual energy bill of around $60 billion and is developing domestic resources including nuclear, coal, solar and wind energy. With domestic gas consumption rising, and its location well-placed to supply international markets, major exploitable reserves could be a game changer for Turkey's economy and highly lucrative for whoever finds them. Investors from the United States, Europe and Canada are also interested in Turkey's shale gas and oil, Incedalci said, adding that the Ministry was planning to hold talks with potential investors in October. Royal Dutch Shell is also drilling for shale gas in the region around the southeastern city of Diyarbakir, while Canadian firm TransAtlantic Petroleum is also active in the region. Estimates of how big Turkey's shale gas reserves are vary wildly. One energy official said data from some international bodies suggested Turkey could have a massive 20 trillion cubic metres (cbm) of total reserves. Another industry expert said proven reserves so far stood at just 6-7 billion cbm. That compares with U.S. Energy Intelligence Administration's (EIA) assessment of 7,299 trillion cubic feet of estimated shale gas reserves in the United States, among the world's top producers of the commodity. –




Indonesia awards second shale gas block to three foreign firms Source : Energy pedia

Indonesia's energy and mining ministry on Monday awarded its second shale gas exploration block to a consortium of foreign oil firms that included New Zealand Oil & Gas. The New Zealand company, along with Canada's Bukit Energy and Pacific Oil & Gas in Hong Kong, won the tender to explore the Kisaran

block in North Sumatra, said Saleh Abdurrahman, the ministry's spokesman. The consortium agreed to commit more than $11.5 million, which will go to conducting a geology and geophysics study, a seismic survey and to dig at least one exploration well.

Monday's announcement comes more than a year after Indonesia's state-owned Pertamina won the country's first shale gas block, also located in North Sumatra. Indonesia hopes shale gas output can help compensate for declining energy production from mature oil and gas fields. The former OPEC member has been struggling for years to attract enough investment to halt declining domestic output, which has dropped to about half of its 1995 peak of 1.6 million barrels per day.




Russia: Repsol makes Russia’s largest hydrocarbons discovery in two years Source: Repsol

• Repsol has made two new hydrocarbon discoveries in the Karabashsky 1 and 2 blocks in Western Siberia in

Russia. According to the Ministry of Natural Resources and Environment of the Russian Federation’s

calculations, these finds could add 240 million barrels of oil equivalent in recoverable resources for Repsol.

• According to the Ministry of Natural Resources and Environment of the Russian Federation this is the largest

discovery made in Russia in the last two years.

• The Gabi-1 and Gabi-3 wells have been drilled with the use by Repsol of innovative drilling and seismic

techniques that will allow the potential of these resources to be fulfilled.

• The company`s exploratory success in Russia, the world’s second-largest crude producer, adds to those

obtained during the last year in The United States, Latin America and Africa.

• The company has for the last three years beaten its own resource addition targets outlined in its 2012-2016

strategic plan.

Repsol has made two new discoveries in Russia’s Karabashsky blocks, in the West-Siberian Ouriyinskoye

field. The recoverable resources from the Gabi-1 and Gabi-3 wells are estimated by the Ministry of Natural Resources and Environment of the Russian Federation at 240 million barrels of oil equivalent, a considerable addition to the resources Repsol currently holds in Russia. The Minister of Natural Resources and Environment of the Russian Federation, Sergei Donskoi said this find is the biggest made in Russia in the last two years.

The use of modern seismic techniques to detect these potential resources has allowed Repsol to make these significant finds in a relatively unexplored area of West Siberia. The discoveries confirm Repsol’s expectations of its Russian operations, where it is developing one of its key strategic projects, the AROG joint venture, together with Alliance Oil.

The exploratory success obtained in Russia adds to the successes during the last year in the United States, Latin America and Africa which added resources that will boost reserves over the coming years as they are developed. In 2013, Repsol posted the highest reserve replacement rate amongst its peers at 275%, which also beat the company’s own reserve addition targets for a third consecutive year to reach a total 1.515 billion barrels of oil equivalent.

Repsol has boosted its exploratory activity in the last few years with significant success, with more than 50 discoveries since 2008, including some of the world’s largest finds in the period.

Repsol in Russia

Repsol has been exploring the Karabashsky 1 and 2 blocks since 2010. In 2011 it created a joint venture with Alliance Oil, called AROG, which is a growth platform for both companies in Russia, combining the knowledge and access to exploration and production opportunities of Alliance Oil in the country with the experience and technological capacity of Repsol, including new drilling techniques.

During 2013, Russia contributed 14,600 barrels of oil equivalent a day to Repsol’s production. This has risen to 17,640 boepd in 2014 with the

startup of new gas wells on the SK field.




Kenya: Swala Energy completes farm-out of Kenya Block 12B to CEPSA Source: Swala Energy

Swala Energy has announced the completion of the farm-out agreement for a 25% working interest in Block

12B (Kenya) to CEPSA Kenya, an affiliate of Compañía Española de Petróleos, S.A.U. ('CEPSA'), a blue chip international integrated oil and gas company.

As previously announced by the Company on 10th March 2014 the farm-out agreement was subject to certain conditions that included the consent of the Kenyan Government and the Competition Authority of Kenya. These consents have now been received and the farm-out agreement has been finalised and is unconditional. CEPSA is a Spanish integrated energy company operating at every stage of the oil value chain. CEPSA is 100% owned by IPIC (International Petroleum Investment Company), a sovereign fund of Abu Dhabi, and is Spain's fourth largest industrial group.

Swala will retain a 25% net working interest in Block 12B, CEPSA will own a 25% net working interest and Tullow Oil will hold the remaining 50% net working interest and continue to act as the joint venture Operator. As part of the farm-out agreement Swala will have its past costs repaid and be free carried through the first two exploration wells if CEPSA decides to participate, up to a maximum of $7.5 million for each one. As previously announced the 2D seismic program over parts of Block 12B began on 23rd April 2014. Dr. David Mestres Ridge (CEO) said, 'I would like to again welcome CEPSA, a company of sound financial and technical standing to the Kenya Block 12B joint venture. Completion of this farm-in agreement will now allow the Company to focus its resources on existing operated assets and the continued growth of the Company’s portfolio'.




Hibiscus Petroleum buys stake in Kitan oil field Press Release

Hibiscus Petroleum has executed a Share Sale Agreement for the acquisition of 100% of the

shares in Talisman Resources (JPDA 06 105) Pty Ltd, a wholly-owned subsidiary of Talisman

Energy Inc.

The assets of the company acquired include a 25% stake in the Kitan producing oil field. Based on the current

estimates, Hibiscus expects the Kitan oil field to contribute significant net cash to the company in the second half of

2014.

At current oil prices, this will allow Hibiscus to book its first operating profit in 2014. The purchase price for the acquisition is USD 18 million. The purchase price is for the acquisition of 100% of the shares in the Talisman subsidiary, Talisman Resources (JPDA 06-105) Pty Limited and includes the value of the asset effective 1st January 2014 together with the working capital within the company effective 23rd June 2014.

Completion of the transaction is subject to regulatory approvals. The acquisition is being funded using the equity capital raised through the conversion of Hibiscus warrants which are due for conversion by July 2014.

The Kitan field was discovered in 2008 and started production in 2011. Wood Mackenzie has estimated 17 million barrels of remaining reserves on 1st January 2014 (4.25 million barrels net to Hibiscus) and that the average production rate in 2014 is expected to be 10,000 barrels of oil per day (2,500 barrels of oil per day net to Hibiscus).

The Kitan oil field is currently being operated by Eni, the Italian integrated energy company. The field is in the Bonaparte Basin within the Australia-Timor Leste Joint Petroleum Development Area (JPDA) approximately 550km North East of Darwin, Australia.




The field is developed by a subsea production system with three subsea wells tied back to the Glas Dowr Floating Production Storage Offloading Unit (FPSO). Eni owns a 40% stake in the asset while the remaining 35% is held by the Japanese oil and gas Exploration & Production (E&P) company, INPEX CORPORATION. A number of infill drilling and additional well tieback opportunities are under consideration.

Under the deal which was executed on 23rd June 2014, Hibiscus Petroleum will acquire Talisman’s stake of the oil field with an effective date of 1 st January 2014 with all existing assets and liabilities as well as absorb the risk of well projects to be executed post-agreement, upon completion of the transaction.

“The acquisition of a producing asset represents a key milestone under Hibiscus Petroleum’s portfolio

balancing strategy. After evaluating many producing assets over the course of the past 3 years, we believe

we have finally found a target that has a manageable risk profile with many areas of upside potential at a

reasonable price. We also look forward to working with reputable international E&P companies as

partners in extracting further value from this asset. We bid for this asset using certain base assumptions

while taking into consideration potential value accretion from future development and infill drilling

projects.” said Kenneth Pereira, Managing Director of Hibiscus Petroleum.




Ventech and Velocys in JV with Waste Management and NRG for small-scale

GTL projects Ventech Engineering International LLC (Ventech), Velocys plc (Velocys), Waste Management Inc. (Waste Management) and NRG Energy Inc. (NRG) formed a joint venture to develop and promote gas-to-liquids (GTL) small-scale production units to monetize biogas and natural gas.

These four companies are bringing together their respective expertise to take the fast growing opportunity opened from the sustained gap between the $4 per million btu gas price in the USA and the $100 per barrel of the light crude oil price.

Since the transportation fuels and high added value lubricants issued from the GTL transformation are pricely indexed on the light crude, this process meets a great interest in the USA where gas prices stand at disesperatly low levels. Houston-based, Waste Management is leading the North American market regarding the waste treatment. The wastes generate naturally biogas which has been ignored so far by lack of adapted technologies and commercially viable business model to capture it and monetize it.

Also based in Houston, Velocys was formerly branded Oxford Catalysts and develop innovative technologies around the GTL solutions in the range of 1,500 to 15,000 barrels per day (b/d) of liquids.In this small sizes, Velocys is proposing a competitive modular design to focus on all the processes generating untapped waste gas that could potentially be captured and monetized.

Petrobras is currently evaluating Velocys GTL technology to capture flared gas from the pre-salt crude oil for what should become the first floating GTL to be moored offshore Brazil.

Ventech – Velocys completed FEED on Oklahoma GTL Headquartered in Pasadena, Texas, Ventech benefits from a long standing experience in modular design and construction of gas processing plants, refineries and petrochemical production units.

Ventech know-how fits perfectly with the ambition of the joint venture to propose plug-and-play GTL small-scale units.In addition, this modular design enables the facilities to be dismantled and relocated on demand, thus optimizing the capital expenditure regardless the duration of the feeder. On its side NRG competitive advantage as energy retailer relies on the diversification of its power production sources including solar and wind.

In that respect, biogas contributes to enrich its portfolio with the high added value GTL monetization across its geographical coverage. After a pilot project installed in Waste Management East Oak facilities in Oklahoma, the joint venture is planning to go for its first project, paving the way to a long series in the USA, Canada, China and UK. With the conclusions of the pilot project, Velocys and Ventech completed the detailed design Oklahoma GTL project. While all the

permitting documents are expected soon, Waste Management, NRG, Ventech and Velocys joint venture are planning the final investment decision (FID) for the East Oak Oklahoma GTL project by the end of 2014.




Manufacturing in China, Japan returns to growth Reuters/Tokyo/London

Manufacturing in China and Japan returned to growth in June after months of decline but an unexpectedly sharp fall in French business activity dragged on the wider eurozone, surveys showed yesterday.

Beijing’s targeted stimulus measures and Japan’s improving labour market supported domestic demand in Asia’s dominant economies but the gap between the common currency area’s big two remains wide.

Germany and France went their separate ways again, with German business activity expanding robustly, albeit at a slower pace than last month, while France’s private sector shrank at the fastest rate in four months.

“The recovery has not gained as much traction as people had hoped. We’ve been highlighting the divergence between France and Germany for some time – it’s not just in the PMIs. It’s definitely a concern,” said Jessica Hinds at Capital Economics.

Markit’s Composite Purchasing Managers’ Index (PMI), based on surveys of thousands of companies across the 18 countries that use the euro and seen as a good indicator of growth, fell to 52.8 from May’s 53.5. That was well below the consensus for 53.5 in a Reuters survey, matching the lowest forecast polled.

Readings above 50 indicate expansion. Markit said that with a robust recovery taking place in some eurozone periphery countries, the data still point to second-quarter economic growth of 0.4%. Germany, Europe’s largest economy, was again the driving force although its composite PMI eased to 54.2 from 55.6. But the French index slumped to 48.0 from 49.3, its lowest reading since February.

“Déjà vu with the French numbers: worse than expected. Our own and the Banque de France’s forecast of GDP expanding by 0.2% in Q2 looks optimistic now,” said Holger Sandte at Nordea.




Also somewhat worryingly for the European Central Bank, a composite PMI sub-index measuring output prices held below the 50 mark for the 27th month, coming in at 49.7 as firms kept cutting prices despite soaring input costs.

Inflation slowed to just 0.5% in May, prompting the ECB to cut interest rates to record lows and offer new long-term loans to banks to help boost lending to eurozone companies.

“The further weakening of the PMI vindicates the ECB’s recent decision to implement further monetary easing and will keep fears of a Japanification of Europe firmly alive,” said Martin van Vliet at ING. European stocks fell after the eurozone data in contrast with the upbeat numbers from China that earlier lifted Asian shares and the Australian dollar.

The stakes are high for China, which may need more stimulus to offset a cooling housing market and avoid a hard landing. Japan’s weak exports also take the gloss off the government’s efforts to breathe new life into its economic reform agenda.

The HSBC/Markit Flash China Manufacturing PMI rose more than expected to 50.8 in June from May’s final reading of 49.4, beating a Reuters poll forecast of 49.7 and creeping above the 50-point level. It was the first time since December that the PMI was in growth territory, and the highest reading since November, when it was also 50.8.

“The country’s factory sector gained momentum again and offering new signs that overall economic growth is at least stabilizing thanks to the government’s efforts to shore up growth,” said Nikolaus Keis at UniCredit.

China’s government has unveiled a series of modest policy measures in recent months to give a lift to economic growth, which dipped to an 18-month low in the first quarter. These include targeted reserve requirement cuts for some banks to encourage more lending, quicker fiscal spending and hastening construction of railways and public housing projects. The Markit/JMMA flash Japan Manufacturing PMI rose to a seasonally adjusted 51.1 in June from a final reading of 49.9 in May, showing the first growth in three months. Japan’s new orders index jumped to 52 from 49.6, indicating consumers are shrugging off an increase in the nationwide sales tax on April 1 as strong demand for workers puts upward pressure on wages. External demand, however, remained weak for the two export powerhouses in a worrying sign that the US and Europe may not be recovering as strongly as anticipated, meaning it could be difficult to rely on exports for growth.




Texas hits new peak wind output Source: U.S. Energy Information Administration

At 8:48 p.m. on March 26, wind generation on the electric grid covering most of the state of Texas reached a new instantaneous peak output of 10,296 megawatts (MW). At that moment, wind supplied almost 29% of total electricity load, according to the Electric Reliability Council of Texas (ERCOT), the grid's operator. The average wind production in that hour was 10,120 MW. The new wind record surpassed two highs reached in the previous week, while the record prior to March was 9,674 MW set in May 2013.

March's wind power record will likely be surpassed in the near future as wind capacity continues to be added in the state. Texas currently has more than 12,000 MW of operational utility-scale wind capacity (see graph below)—about one-fifth of the total wind capacity in the United States. According to preliminary data from the U.S. Energy Information Administration's Electric Power Monthly, Texas added 150 MW of utility-scale wind capacity in 2013, less than one-tenth of the nearly 1,600 MW added in the previous year.

Source: U.S. Energy Information Administration, EIA-860 Annual Electric Generator Report and the Electric Power

Monthly

Note: 2000-2012 data from the EIA-860. Preliminary 2013 data from the Electric Power Monthly. Data include

facilities with a net summer capacity of 1 MW and above only. Data also include wind capacity located in the small

areas of Texas lying outside the ERCOT grid footprint.




The significant slowdown in wind additions in 2013 mirrored the national trend, which reflected the lapse of the federal production tax credit (PTC) at the end of 2012. That lapse encouraged those with facilities under construction to complete them and begin operation before the end of 2012 in order to receive the tax credits (which are for all generation during the first 10 years of operation). The subsequent one-year extension in early 2013 required only that plants commence construction in 2013 to be eligible to receive the tax credits after the start of operations at a later date. This modification of eligibility requirements led to many wind projects beginning construction in 2013 with expected completion dates in 2014-15. Trade association reports estimate that there were more than 7,000 MW of wind projects under construction in Texas at the end of 2013; however, exactly how much of that capacity will actually be completed and by when remains to be seen.

The recent wind output records are a result not only of the growing amount of wind capacity in the state, but also of the successful completion of a major state-directed transmission expansion program, the Competitive Renewable Energy Zones (CREZ) program, which was specifically designed to allow wind power to reach a wider swath of the ERCOT grid and reduce grid congestion-related curtailments of wind power. Tomorrow's article will discuss wind curtailments and the CREZ program in more detail.




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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 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 Specialist for Emirates General Petroleum Corp. “Emarat“ with external volTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external volTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external volTechnical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for untary Energy consultation for untary Energy consultation for untary 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

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New base special 24 june 2014