Page 10 - LatAmOil Week 03 2021

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MEOG: Hydrogen, climate on the agenda pipeline’s presidential permit via an executive
While concerns about the long-term demand order on the list of immediate priorities pub-
for oil have slipped from the headlines follow- lished on his administration’s transition website
ing the upside shock of Saudi Arabia’s decision ahead of his inauguration on January 20.
to cut production for February and March, gov- The move is not surprising, given that for-
ernments in the Middle East are taking steps to mer US President Barack Obama, under whom
shore up long-term energy strategies that main- Biden served as vice president, had previously
tain their relevance as other countries reduce rejected the pipeline before it was approved by
their reliance on oil and gas. outgoing President Donald Trump. In addition,
With regional powerhouse Riyadh announc- Biden is moving swiftly to undo some of the
ing NEOM’s highly publicised The Line ini- Trump administration’s decisions, which “do not
tiative, the UAE and Qatar have followed by serve the US national interest,” according to the
making their own statements of intent. Abu incoming administration.
Dhabi unveiled the Abu Dhabi Hydrogen Keystone XL’s developer, TC Energy, was not
Alliance (ADHA), comprised of state oil firm ready to give up on the project until the end.
ADNOC, investment company Mubadala and Earlier this week, it unveiled a plan for the pipe-
holding firm ADQ. This announcement fol- line to achieve net-zero greenhouse gas (GHG)
lowed the signing of a wide-ranging collabora- emissions if it was brought into service, targeted
tion deal between Japan and the UAE to jointly for 2023.
explore opportunities and uses for fuel ammo- The company said net-zero emissions could
nia and carbon recycling, with Tokyo looking to be achieved by buying renewable energy from
source supplies of blue ammonia for use in its electricity providers and purchasing renewable
power sector. The urgency for acting on the cli- energy credits or carbon offsets where direct Keystone XL’s
mate front has not escaped Qatar, whose NOC, access to renewable power is not available. developer, TC
Qatar Petroleum, launched a new sustainability TC Energy also pledged that additional
strategy last week that aims to reduce the emis- renewable sources would be developed along the Energy, was
sions intensity of its operations by 2030. pipeline’s route by 2030, phasing out any poten-
Meanwhile, contracting appears to be resum- tial need for renewable credits or carbon offsets. not ready to
ing in Saudi Arabia as Aramco has issued tender Biden has a long-term goal of putting the US
documents to its onshore LTA cohort for main- on the path towards net-zero emissions by 2050, give up on the
tenance and upgrade work at the vital Abqaiq and in the immediate term, he will be focused pipeline project
plant, which handles up to 7mn bpd of oil. The on driving an economic recovery following the
news follows the cancellation of tenders for coronavirus (COVID-19) pandemic. until the end
major expansion work at the Berri and Marjan TC Energy had hoped that Keystone XL’s job
oilfields, as well as slowing start-up at the flag- creation potential, combined with these new
ship Jafurah unconventional gas field. environmental goals, would help to sway Biden
in his stance on the pipeline. However, the pro-
If you’d like to read more about the key events shaping ject has become such a lightning rod for envi-
the Middle East’s oil and gas sector then please click ronmental protests that TC Energy’s last-ditch
here for NewsBase’s MEOG Monitor. efforts were not expected to sway the new presi-
dent towards a last-minute reprieve.
NorthAmOil: Halting Keystone XL
The future of the planned Keystone XL pipeline If you’d like to read more about the key events shaping
appears to have been decided this week. US Pres- the North American oil and gas sector then please click
ident-elect Joe Biden included plans to cancel the here for NewsBase’s NorthAmOil Monitor .™

P10 www. NEWSBASE .com Week 03 21•January•2021