UAE Opts To Develop Sour Gas Reserves Amid Uncertainty Over Qatari Supplies

The natural gas shortage in the Middle East has again cast its shadow over the ongoing crises in the Arabian Gulf region. While the region as a whole controls more than 40% of global gas reserves, its countries, with the exception of Algeria and Qatar, face a critical lack of supply.

The combined gas reserves in the Gulf Cooperation Council (GCC) total about 1,500 Tcf, but much of it is associated gas and expensive to extract.

Because it is dependent on the Dolphin gas pipeline that links it to Qatar, the UAE has relatively limited immediate options to replace the 2 Bcf/d of gas it imports if Qatar decides to cut off exports to that country. That is considered unlikely to happen.

The UAE also has an LNG import terminal in Dubai with a capacity of 3 mpta and plans to build another terminal in Fujairah with a capacity of 9 mtpa. The country also faces a deficit of 2 Bcf/d during the peak summer season. It is estimated the UAE will need another 5 Bcf/d for extra power capacity by 2019.

The UAE is having difficulty producing enough gas to meet domestic requirements, though it holds about 5% of the world’s proven reserves. Much of it is sulfur-laced sour gas, which is expensive to produce. Sour gas is highly corrosive, and generally more challenging to process because of its high sulfur content, which requires special handling and infrastructure.

The UAE has already identified this issue and tapped the development of its sour gas fields, one of the most challenging types of fields, which are mainly located in Abu Dhabi. The sour gas prospect is estimated by analysts to contain about 5 Tcf of gas and forecast to produce 1 Bcf/d, which would equate to about 18% of the UAE’s current demand.

“Tapping into undeveloped gas reservoirs is part of ADNOC’s focused strategy to drive a more sustainable and economic gas supply,” the director of upstream activities at ADNOC, Abdul Munim al-Kindy told local media.

Production costs of deep and mildly sour gas projects in the Gulf are between $5 per million Btu (MMbut) and $6/MMbtu, but domestic sales prices range from  75 cents to $2, with negligible prices for household, according to local analysts.

Amid the soaring local gas consumption, the UAE decided to develop its sour gas reserves and had already started up production from Shah gas field. For Shah, selecting the right foreign partner wasn’t easy and included many setbacks. Initially, ADNOC selected ConocoPhillips Co. (NYSE: COP) as a partner to develop the project, but in April 2010, ConocoPhillips withdrew from the $10 billion development saying that it intended to shift its operational focus from midstream and downstream activities to upstream work.

But in January 2011, ADONC selected Occidental Petroleum Corp. (NYSE: OXY) as a partner, and set up Al Hosn Gas, a joint venture between ADNOC and Oxy. The project was successfully started up in early 2016. Shah produces a total of 1 billion cubic feet per day (Bcf/d), of which 500 million cubic feet per day (MMcf/d) is delivered to the UAE’s gas grid, as well as producing 33,000 bbl/d of petroleum condensates and 4.4 mtpa of natural gas liquids. Already, Al Hosn has laid out plans to increase output by 50%.

Meanwhile, Bab gas field, another sour gas field, witnessed setbacks as Shell announced in early 2016 that it has pulled out of the $10 billion Bab sour gas project in Abu Dhabi, citing “technical challenges” and the falling price of oil as key factors in its decision. But despite the setbacks, ADNOC is determined to boost its gas output.

In early June, local media reports said that the company is considering greenlighting another huge gas project which could meet nearly 20% of the UAE’s gas demand by the end of the decade. The state oil company’s investment committee is considering proposals for a $20 billion development of the Hail and Ghasha, Delma, Nasr and Shuwaihat “ultra-sour” gasfields, which lie in relatively shallow water southwest of Abu Dhabi.

Source: http://www.epmag.com

Telecoms operator du confirms beIN Sports network suspended in the UAE

Dubai-based telecoms operator du has confirmed that it has suspended transmission of the Qatar-owned beIN Sports network across its cable television services after customers took to social media on Monday evening to complain about an interruption in the service.

“We would like to confirm that the service of beIN Sports are currently suspended. Our customer service teams will be in touch with all the affected customers,” du said in a statement.

The company did not clarify whether the suspension of service is in relation to the ongoing Qatar crisis, in which the UAE, Saudi Arabia, Bahrain, Egypt, Yemen, Libya and the Maldives have cut ties with the GCC member over claims that the country supports terrorist organisations.

Customers who attempt to access beIN Sports channels via their du cable box receive a blue screen stating “This channel is currently unavailable”.

Etisalat customers report receiving the same notice, however the UAE state-owned telecoms firm has yet to release an official statement regarding the matter.

The beIN Sports website has also subsequently been blocked by both the telecoms operators in the UAE.

Part of the larger Al Jazeera network of channels, beIN Sports holds the exclusive broadcasting rights to a number of major international sporting tournaments including the UEFA Champions League, English Premier League, La Liga, Formula 1 Grand Prix and the NBA, amongst others.

The UAE has also blocked the Al Jazeera TV channel and website, while Saudi Arabia has also revoked the media group’s licence in the kingdom.

Source: http://gulfbusiness.com

One map shows how much trouble Qatar Airways may be in

As Bahrain, Saudi Arabia, and the United Arab Emirates sever diplomatic relations with Qatar, the nations have also closed their airspace to its neighbour.

Unfortunately for Qatar Airways, the lack of access to Bahrainian, Emirati, and Saudi airspace could have a devastating effect on its operations.

 "Losing Saudi, Bahrain and UAE airspace would effectively ground Qatar Airways," CAPA -- Center for Aviation wrote in a report.

That's because Qatar actually has very little airspace relative to the size of the country.

"It is largely surrounded by Bahrain airspace (the Bahrain FIR), a slither on the south is managed by Saudi Arabia while the UAE is on the eastern border," CAPA stated.

While losing access to Saudi airspace will force Qatar Airways into the costly manoeuvre of rerouting its Africa-bound flights, losing access to Bahrainian airspace could be catastrophic because it almost completely encircles Qatar.

That means, should the ban hold up, Qatar Airways flights will need to fly through airspace that it is currently banned from in order to reach its home base in Doha.

Qatar Airways did not immediately respond to a request for comment on how they plan to overcome this challenge.

While the countries are free to refuse landing rights, it is unclear if Bahrain and the UAE can legally ban Qatar Airways from its airspace. As signatories to the International Air Services Transit Agreement, Bahrain the UAE can't legally shut off its airspace to fellow signatory Qatar.

Saudi Arabia, however, is not an IASTA member country and can legally shut Qatar Airways out of its airspace.

According to Flightradar24, Bahrain sent notified pilots that it will limit flights to and from Qatar by Qatari aircraft through its airspace to a single air route. This means, even if Qatar Airways isn't grounded, it will be subject to heavy air traffic congestion.

Over the past two decades, Qatar Airways has grown to become one of the most influential international airlines in the world. In 2015, consumer aviation website Skytrax named it the best airline in the world.

Source: www.msn.com

France election fears ease as polls suggest Macron will beat Le Pen

Concerns over the French presidential election seemed to have eased slightly on Monday with the yields on the 10-year French bond falling.

The yield on the 10-year government bond dropped to 0.881 percent on Monday morning – the lowest level seen in the last month.

"The slight deterioration in exit polls for Marine Le Pen in the run-off ballot helps stabilizing market sentiment," Norbert Wuthe, senior analyst at BayernLB, told CNBC via email.

This is "further supported by the news that the two socialist candidates won't form a coalition," he added.

Until now, investors have been concerned about the growing support for the far-right leader Marine Le Pen and the outcome of the French vote, which takes place over two rounds in April and May.

The fact that the far-left candidate Jean-Luc Melenchon and the socialist runner Benoit Hamon haven't managed to form an alliance reduces the chances that there will be a final round with both far-left and far-right candidates.

"It's all closely linked to the probability of a Marine Le Pen victory in the final two candidate Presidential round. That would be the horror scenario for the markets and the EU given her radical euro-exit policies," Jan Randolph, head of sovereign risk at IHS Markit, told CNBC about Monday's market moves.

Polls released over the weekend have shown that the centrist candidate Emmanuel Macron is well placed to beat Le Pen in the second round and become the next president of France.

A poll published by the newspaper Le Figaro showed Macron winning the second round against Le Pen with 58 percent of the votes. Another poll conducted by Odoxa/Dentsu-Consulting said Macron would beat Le Pen with 61 percent against 39 percent.

The good polling numbers for the independent runner Macron follow the announcement of the centrist Francois Bayrou that he would join forces with the former economy minister. Bayrou is a veteran in French politics, which could help the 39-year-old Macron winning the confidence of some French voters.

Macron announced Monday plans to slash government spending by 60 billion euros ($63.5 billion) and cut 120,000 public-sector jobs. He also unveiled intentions to reduce some taxes and support green energy investments.

"However, we do expect a yield increase in the second half of the week when increased euro zone inflation numbers and duration heavy French supply will weigh on the market," Wuthe added.

Source: http://www.cnbc.com

What is MOAB? 'Mother of All Bombs' GBU-43/B dropped on ISIS is 11-tonnes of pure TNT

It's a weapon that justifies the use of the word 'terrifying' to describe its power and marks a deadly ramping up of America's military initiative abroad.

The GBU-43/B Massive Ordnance Air Blast Bomb, nicknamed MOAB, or 'Mother of All Bombs', is a 21,600 pound, GPS-guided munition that is America's most powerful non-nuclear bomb.

Almost 20 feet long, it truly is the queen of the so-called 'bunker busters'.

Deployed from as high as 20,000 feet, the MOAB races to the ground at supersonic speed before slamming its way toward a hardened target through layered subterranean defenses such as native rock, reinforced concrete, and steel plates.

The 11-tonnes of TNT warhead then bursts about 6 feet (1.8 meters) above the ground.

The idea behind an 'air burst' weapon, as opposed to a weapon that explodes on impact with the ground, is to increase its destructive range.

A bomb that penetrates the ground and then bursts tends to send all of its energy either down into the ground or straight up into the air.

An air burst weapon sends a great deal of its energy out to the side.

As a precision-guided 'smart bomb' the MOAB is designed to cause maximum damage to bunkers, tunnels and other areas that can typically withstand even large standard bombs or artillery strikes.

It can kill people within several hundred metres of the point of detonation, and cause lung damage and other injuries over an even wider area.

“The most amazing thing about MOAB is it’s the most powerful bomb ever built and has done its job—deterring the enemy—simply because they know about it,” Robert Hammack, a team chief for the bomb’s development, was quoted as saying in an Air Force article in 2008.

The bomb, dropped at 7pm local time (4pm UK time) today in Afghanistan, was operated by an Air Force Special Operations Command.

It was deployed by an MC-130 aircraft to target ISIS and extremists.

The bomb had to be "kicked" out the back of the cargo plane due to its colossal size, according to military sources.

The US Air Force targeted a cave complex in the Achin district of Nangarhar province after a US special forces 'Green Beret' was killed fighting the terror group in the country, according to Fox News .

In terms of destructive capability, it can be said to be the most fearsome explosive weapon among a range of massive-blast ordnance developed by the Pentagon over the past decade.

It replaces the Vietnam-era "Daisy Cutter," a 15,000-pound bomb with 12,600 pounds of the less-powerful GSX explosives.

Gen. John Nicholson, commander of US forces in Afghanistan, signed off on the use of the bomb, according to U.S. sources.

As [ISIS'] losses have mounted, they are using IEDs, bunkers and tunnels to thicken their defense," General Nicholson said in a statement.

"This is the right munition to reduce these obstacles and maintain the momentum of our offensive against [ISIS]."

This is the first time a MOAB is believed to have been used in battlefield after first being developed during the Iraq War.

Military officials told CNN in 2003 that the MOAB was mainly conceived as a weapon employed for "psychological operations."

They said they hoped the MOAB would create such a huge blast that it would rattle Iraq troops and pressure them into surrendering or not even fighting.

Officials suggested that perhaps the Iraqis might have even mistaken a MOAB blast for a nuclear detonation.

Source: http://www.mirror.co.uk

Iran's President Rouhani visited Russia: another step to a Multipolar World

The significance of Iranian President Hassan Rouhani’s visit to Russia on March 27-28 goes far beyond the bilateral relationship. Iran is one of the main actors in Syria and Iraq. It has an importance place in the geopolitical plans of US President Donald Trump. Its relationship with Russia is an important factor of international politics. The future of the entire Middle East depends to a great extent on what Russia and Iran do and how effectively they coordinate their activities.

Less than two months are left till the presidential election in Iran. The presidential race formally starts on April 17 and Rouhani has a good chance to win. True, the country’s foreign policy at the strategic level is defined by Iran's Supreme Leader, Ayatollah Ali Khamenei, but the executive branch of the government led by president implements it. The spiritual leader does not pay visits to other countries but Russian President Vladimir Putin met him in Tehran last year – the second time in the recent 17 years.

This was Rouhani's first official visit to Russia and the first time he and Putin met within a bilateral framework. The trip took place against the background of growing partnership as both countries have become leading forces of the Astana process that made Iran, Russia and Turkey guarantors of the Syrian cease-fire.

True, the cooperation in Syria is of utmost importance but there is each and every reason to believe that Russia and Iran will have to join together in an attempt to settle the conflict in Afghanistan. As a regional superpower, Iran will gain much by coordinating activities with Russia in that country after the US withdrawal that seems to be inevitable. Such cooperation would become a game-changing factor with far-reaching consequences for the region from the Mediterranean to Pakistan.

The emerging triangle, including Russia, Iran and Turkey, becomes an alliance, could reshape the region. A ceasefire in Syria reached as a result of the Astana process led by the «big three» would reduce the clout of the US, the UK and France. Actually, their influence has already been diminished. The neighboring states will see that progress can be achieved without the «traditional players» representing the West.

Russia is the country that can debunk the myth that the Middle East is threatened by a «Shia threat» emanating from Tehran. It can use its close and friendly relations with leading Sunni states – Egypt, Jordan, the UAE and, perhaps, Saudi Arabia – to play the stabilizing role of mediator between the Shia and Sunni camps. Russia has a unique position to act as an intermediary between Iran and Israel – something nobody else can do.

It’ll take years to heal the wounds and mitigate the contradictions between Shia and Sunni Muslims in Lebanon, Syria and Iraq. Today, the West does not enjoy the clout it once had there. The borders drawn by Western countries caused many conflicts; direct military interventions made them lose trust and support. Under the circumstances, Russia is not exactly an outside actor. Moscow needs peace and stability in the region. This goal can be achieved in tandem with Turkey and Iran. Iraq and Syria can join the trio after they overcome the devastating results of wars. It makes the cooperation with Tehran an issue of paramount importance for Russia.

The bilateral relationship is going to be strengthened by large-scale economic projects.

Despite the importance of foreign policy issues, the talks mainly focused on prospects for deepening trade, economic and investment cooperation, including under large joint projects in energy and transport infrastructure. More than ten major trade and economic agreements were signed during the visit. Russia has already pumped about one billion euros into Iran' railway network, with serious financial injections into bilateral projects yet to be implemented.

Exports to Iran stand at only around 1 percent of Russian foreign trade, but a trade surplus and the existence of a large market for Russian manufactured goods make Iran an important partner. The bilateral trade grew by 60 percent from $1.2 billion in 2015 to almost $2 billion in 2016.

The resumption of weapons deliveries and participation in infrastructure projects financed by Russian loans have led to the doubling of exports of non-energy products from Russia to Iran. The first batch of S-300 air defense systems was delivered in April 2016.

Russia has agreed to provide Iran with a loan of $2.2 billion for infrastructure projects involving Russian companies. It is planned to build a power plant and enhance generation at another in Iran in a contract worth several billion dollars. Under an agreement signed between the two sides, the Russians will improve efficiency at the Ramin power plant in Khuzestan province to 50-55% from 36% now. Another Russian company will build a 1,400-megawatt power plant in the Iranian city of Bandar Abbas in Hormuzgan province. Russian truck manufacturer Kamaz plans to export 300 trucks in 2017, GAZ signed a memorandum with the Iranian authorities for the supply of 900 buses.

Russia’s role in reaching the Iran nuclear deal, the cooperation in Syria and the allegiance to the policy of rapprochement declared by President Putin provide ample evidence of Moscow’s desire to boost the bilateral ties.

A momentous event to take place this year will provide an impetus to the development of Russia-Iran relations. Tehran is expected to become a full-fledged member of the Shanghai Cooperation Organization (SCO) this June. Iran also has expressed interest in signing a trade agreement with the Eurasian Union.

Russia and Iran are united by common goals and interests. The development of relations between the two great powers is a significant contribution into creating alternative poles of power to change the world for the better.

Souce: http://www.zerohedge.com

Meryl Steep Imitates Donald Trump in Orange Face Alongside Her 'Mamma Mia!'

Meryl Streep proved on Monday night that there's not a role she won't tackle.

The three-time Oscar winner put on a fat suit and lathered on the orange makeup as she channeled presidential hopeful, Donald Trump, during the annual Shakespeare in the Park Public Theater Gala at the Delacorte Theater in Central Park. Streep imitated Trump alongside her Mamma Mia! co-star, Christine Baranski, who was impersonating former Secretary of State, Hillary Clinton, who's also running for president.

The performance was a twist on the song "Brush Up Your Shakespeare" from Cole Porter’s Broadway musical, Kiss Me, Kate, which is based off of The Taming of The Shrew. During the duet, Streep, as Trump, recited, "You’ll let me know why it is all the women say no."

Baranski, as Clinton, crooned back, "Brush up your Shakespeare and the women you will wow. ...Just declaim a few lines from Othello, and they'll think you're a hell of a fella."

Trump's road to landing the republican presidential nomination has been met with some contention from those in both political parties. ET spoke with Fox News' Megyn Kelly after her headline-grabbing feud with the aspiring politician. "Donald Trump is a lot of things," she said. "Even in the midst of coming after me, he can be charming. It's very confusing. One minute you're thinking, 'What?' and then you're laughing."

Source: www.etonline.com