Page 16 - AsianOil Week 03 2021

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MEOG: H2, climate on agenda NorthAm: Keystone XL on chopping block
While concerns about the long-term The future of the planned Keystone XL pipeline
demand for oil have fallen from the head- could be decided this week. CBC News reported
lines following the upside shock of Saudi that US President-elect Joe Biden had indicated
Arabia’s decision to cut production for plans to cancel the pipeline’s presidential permit
February and March, governments in the via an executive order on his first day in office.
Middle East are taking steps to shore up The news services cited a briefing note reported
long-term energy strategies that maintain to be from the Biden transition team, citing the can-
their relevance as other countries reduce cellation as being among the first executive actions
their reliance on oil and gas. scheduled. The move would not be surprising,
With regional powerhouse Riyadh given that former US President Barack Obama,
announcing NEOM’s highly publicised under whom Biden served as vice president, Joe Biden
The Line initiative, the UAE and Qatar had previously rejected the pipeline before it was
have followed by making their own state- approved by outgoing President Donald Trump. In reportedly
ments of intent. Abu Dhabi unveiled the addition, Biden is expected to move swiftly to undo
Abu Dhabi Hydrogen Alliance (ADHA), some of the Trump administration’s decisions. indicated plans
comprised of state oil firm ADNOC, However, Keystone XL’s developer, TC
investment company Mubadala and hold- Energy, is not yet ready to give up on the pro- to cancel the
ing firm ADQ. ject and unveiled a plan this week for the pipe- Keystone XL
This announcement followed the signing of a line to achieve net zero greenhouse gas (GHG)
wide-ranging collaboration deal between Japan emissions when it is put into service, targeted pipeline’s
and the UAE to jointly explore opportunities and for 2023. The company said net zero emissions
uses for fuel ammonia and carbon recycling with would be achieved by buying renewable energy presidential
Tokyo looking to source supplies of blue ammo- from electricity providers, and purchasing
nia for use in its power sector. renewable energy credits or carbon offsets where permit via an
The urgency for acting on the climate front direct access to renewable power is not available. executive order
has not escaped Qatar whose NOC Qatar Petro- TC Energy also pledged that additional
leum launched a new sustainability strategy last renewable sources would be developed along the on his first day in
week that aims to reduce the emissions intensity pipeline’s route by 2030, phasing out any poten-
of its operations by 2030. tial need for renewable credits or carbon offsets. office.
Meanwhile, contracting appears to be resum- Biden has a long-term goal of putting the US
ing in Saudi Arabia as Aramco has issued tender on the path towards net zero emissions by 2050,
documents to its onshore LTA cohort for main- and in the immediate term, he will be focused
tenance and upgrade work at the vital Abqaiq on driving an economic recovery following
plant which handles up to 7mn bpd of oil. the coronavirus (COVID-19) pandemic. TC
The news follows the cancellation of tenders Energy will be hoping that Keystone XL’s job
for major expansion work at the Berri and Mar- creation potential, combined with these new
jan oilfields as well as slowing start-up at the flag- environmental goals, will help to sway Biden in
ship Jafurah unconventional gas field. his stance on the pipeline.

If you’d like to read more about the key events If you’d like to read more about the key events shaping
shaping the Middle East’s oil and gas sector then the North American oil and gas sector then please click
please click here for NewsBase’s MEOG Monitor. here for NewsBase’s NorthAmOil Monitor.™

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