Author: admin

From the moment that China offered Saudi Crown Prince Mohammed bin Salman (MbS) a face-saving way out of the Saudi Aramco initial public offering disaster that he had created, as analysed in depth in my new book on the new global oil market order, the relationship between the two countries has grown ever stronger.

Toward the end of last year, Saudi Arabia reiterated its commitment to China as its “most reliable partner and supplier of crude oil,” along with broader assurances of its ongoing support in several other areas.

This followed the comment in March 2021 at the annual China Development Forum hosted in Beijing, from Aramco chief executive officer, Amin Nasser that: “Ensuring the continuing security of China’s energy needs remains our highest priority – not just for the next five years but for the next 50 and beyond.”

Such statements appeared to confirm that MbS now sees the U.S. as a partner just for its security considerations in the new global oil market order, with no meaningful quid pro quo on Saudi Arabia’s part, whilst regarding China as its key partner economically and Russia as its key partner in energy matters. A slew of new commitments last week from Saudi Arabia to China appear to confirm these views. 

To begin with, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman said that the Kingdom is keen to cooperate further with China in developing gas ties, as well as those relating to crude oil.

These gas ties will span the entire sector, from the development of reserves to new petrochemicals projects, and follow on from the signing last August of a multi-pronged memorandum of understanding (MoU) between Saudi Aramco and the China Petroleum & Chemical Corporation (Sinopec). As the president of Sinopec, Yu Baocai, put it at the time: “The signing of the MoU introduces a new chapter of our partnership in the Kingdom [of Saudi Aabia] …The two companies will join hands in renewing the vitality and scoring new progress of the Belt and Road Initiative [BRI] and [Saudi Arabia’s] Vision 2030.”

Crucially for China’s long-term plans in Saudi Arabia, it also covers opportunities for the construction of a huge manufacturing hub in King Salman Energy Park that will involve the ongoing, on-the-ground presence on Saudi Arabian soil of significant numbers of Chinese personnel.

These will not just be directly related to the oil, gas, petrochemicals, and other hydrocarbons activities, but will also include a small army of security personnel to ensure the safety of China’s investments. At that point last year, Aramco already had a 25 percent stake in the 280,000 barrels per day (bpd) Fujian refinery in south China through a joint venture with Sinopec (and the U.S.’s ExxonMobil) and had also earlier agreed (in 2018) to buy a 9 percent stake in China’s 800,000 bpd ZPC refinery from Rongsheng. 

Several other joint projects between China and Saudi Arabia that had been agreed in principle had been delayed due to a combination of factors at the time. These were the ongoing effects of COVID-19, Aramco’s crushing dividend repayment schedule, and concern from both countries – especially China – on how Washington might react to this clear threat to the U.S.’s own long-running relationship with Saudi Arabia, as also analysed in depth in my new book on the new global oil market order.

The basis of this enduring relationship had been struck back in 1945 at a meeting on 14 February 1945 between the then-U.S. President Franklin D. Roosevelt and the Saudi King at the time, Abdulaziz bin Abdul Rahman Al Saud. The deal that they agreed – which had been the basis for all the U.S.’s Middle East policy up until very recently – was this: the U.S. would receive all of the oil supplies it needed for as long as Saudi had oil in place, in return for which the U.S. would guarantee the security both of the ruling House of Saud and, by extension, of Saudi Arabia. This landmark deal survived the 1973 Oil Crisis and even looked as though it might survive the Saudi-led Oil Price War from 2014 to 2016, aimed by Riyadh at destroying or at least severely disabling the then-nascent U.S. shale oil industry. The real death of the 1945 Bitter Lake deal came when Russia emerged at the end of 2016 to support the then-beleaguered Saudi Arabia and OPEC in future oil production deals, given the lack of credibility in the global oil markets that both had at the end of the 2014-2016 Oil Price War.

With the announcements last week, it seems that all the key elements of the previously-announced deals between Saudi Arabia and China are coming back into play.

Just prior to the signing of the wide-ranging MoU in August 2022 – the precursor to last week’s agreements – Saudi Aramco’s senior vice president downstream, Mohammed Y. Al Qahtani, announced the creation of a ‘one-stop shop’ provided by his company in China’s Shandong. “The ongoing energy crisis [caused by Russia’s invasion of Ukraine in February 2022], for example, is a direct result of fragile international transition plans which have arbitrarily ignored energy security and affordability for all,” he said. “The world needs clear-eyed thinking on such issues – that’s why we highly admire China’s 14th Five Year Plan for prioritising energy security and stability, acknowledging its crucial role in economic development,” he added.

The megaproject in Shandong, which is home to around 26 percent of China’s refining capacity and is a key destination for Saudi Aramco’s crude oil exports, will broadly involve the flagship Saudi oil and gas giant creating “stronger ties with the world’s largest oil exporter [that] would enhance China’s energy security, especially as we work on increasing our production capacity to 13 million barrels per day,” according to Al Qahtani. Aside from the fact that Saudi Arabia still cannot produce anywhere near 13 million barrels per day of crude oil, as examined in detail in my new book, closer cooperation between Aramco and China will mean Saudi Arabia investing heavily in the build-out of a large, integrated downstream business across the country in tandem with its Chinese partners.

A key facet of agreements made by emerging nations with China is that they tend to feature significant deal creep. As highlighted above, they all tend to feature the build-out by China of major facilities in the target countries that allow Beijing to station significant numbers of personnel – including those designated as security staff – in and around them. They also tend to act as the precursor to several other more insidious features that only become clearer as time progresses. In December 2022, MbS hosted a series of meetings in Riyadh between China’s President Xi Jinping and the leaders of countries in the Arab League.

The Arab League comprises Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordon, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen. At this meeting – and the January 2022 meeting between senior officials from the Chinese government and foreign ministers from Saudi Arabia, Kuwait, Oman, Bahrain, plus the secretary-general of the Gulf Cooperation Council (comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) – the principal topics of conversation were to finally seal a China-GCC Free Trade Agreement and to forge a “deeper strategic cooperation in a region where U.S. dominance is showing signs of retreat”.

Also at the December 2022 meetings, China’s President Xi Jinping identified two ‘priority areas’ that he believed should be addressed as quickly as possible, as also analysed in depth in my new book on the new global oil market order. The first was the transition to using the Chinese renminbi in oil and gas deals done between the Arab League countries and China.

The second was to bring nuclear technology to targeted countries, beginning with Saudi Arabia. Previously, the Kingdom had been in talks to acquire nuclear technology from the U.S. under the ‘1-2-3’ protocol.

As highlighted in 2019 by then-US Energy Secretary, Rick Perry, Saudi Arabia had told the U.S. that it wanted to go ahead with a full-cycle nuclear programme, including the production and enrichment of uranium for atomic fuel. The U.S. had made it clear that for U.S. companies to participate in Saudi Arabia’s project, Riyadh would need to sign an accord on the peaceful use of nuclear technology with Washington. The ‘1-2-3’ protocol was intended to limit the enrichment of uranium for arms purposes.

China does not have such a protocol in place for Saudi Arabia. And, as Saudi Arabia’s energy minister Prince Abdulaziz bin Salman again reiterated last week: “We came to recognise the reality of today that China has taken a lead and will continue to take that lead […] We do not have to compete with China, we have to collaborate with China.”

OilPrice by Simon Watkins, June 28, 2023

In the European oil industry, green is out of fashion and black is making a comeback.The trend has been months in the making, but it reached a high point on Wednesday when Shell Plc announced what amounts to a pivot back into hydrocarbons and a promise to deliver higher returns to shareholders.Gone are the days when Shell aimed to reduce its oil production every year, and lavishly invest in loss-making electricity businesses.

Now, Wael Sawan, the company’s new-ish chief executive officer, has promised that it “will invest in the models that work – those with the highest returns that play to our strengths.” Translation: more spending on fossil fuels, less solar and wind. That’s music to shareholders and a public rebuttal of the strategy of his predecessor, Ben van Beurden. After all, if Shell will now only invest in what works, the corollary is that previously it was investing in businesses that didn’t. Sawan has now put some of those operations on sale and canceled many others.

Shell faces an uphill battle to convince shareholders that it’s serious. The dividend — increased 15% to about 33 cents per share starting this quarter – is still well below the 47 cents when Van Beurden slashed it in April 2020. At the time, it was the first cut for Shell since World War II. Another round of share buybacks will also help, as will the promise to reduce capital expenditure. At the midpoint of it guidance, Shell will target capex of $23.5 billion in 2024 and 2025; that’s down from $25 billion in 2023.

Shell said that the combination of a focus on higher-yielding investments and “stronger capital and cost discipline” would allow it to return to shareholders 30% to 40% of its cash flow from operations, up from 20% to 30% previously. The increase would help Shell close a valuation gap with its US rivals.

Trading at less than three times enterprise value to underlying earnings, Shell is significantly cheaper than Exxon Mobil Corp. and Chevron Corp., which trade at around five times.But investors can be forgiven their skepticism. Too many zigs and zags in the last five years by not just Shell but BP Plc and TotalEnergies SE, have left shareholders unsure of what comes next. The reaction to the announcement was lackluster. Shell shares barely budged.Is the latest swing in the European Big Oil industry’s strategy truly the last? Unlikely. But for now, at least, in large part because European governments have woken up to the dangers of reducing investment in fossil fuels in the wake of Russia’s isolation, the ESG trend has lost momentum.

On Wednesday, the International Energy Agency’s annual update predicted oil demand growing in the next five years, even if at a slower rate than historically from 2026 onward due to more efficient internal-combustion vehicles and, at the margin more electric cars. By 2028, the final year of the IEA’s forecast horizon, global oil demand will reach nearly 106 million barrels a day, up from 102 million in 2023.

Note that according to the IEA, to meet the net zero emissions by 2050 targets, oil demand would need to drop to 75 million barrels a day by 2030.

Given the urgency to reduce carbon emissions, the contradictions are never far from the surface, even in Shell’s own statement on Wednesday. Disregarding the legal boiler plate, the press release runs at 623 words exactly.

In it, Shell mentions every buzzword you would imagine a big oil producer uttering when it’s trying to buy the love of Wall Street — buybacks, returns, cost discipline. All of them, except one word: oil. In Shell’s words, its focus is on the “liquids” business — of course, liquid as in oil.

If an oil company like Shell can’t muster itself to say it’s in the oil business, I don’t see why shareholders should give Sawan the full vote of confidence he was hoping for.

The Washington Post by Javier Blas, June 22, 2o23

Iraq on Sunday invited foreign companies to bid for contracts to explore and develop natural gas reserves in 11 new blocks as the OPEC member seeks to produce much-needed natural gas for power stations and cut imports that weigh on the country’s budget.

Eight blocks are located in western Anbar province, one in the northern city of Mosul and two others are located along province borders, including one between Anbar region with Mosul and another with Iraq’s southern city of Naja, the oil ministry said in a statement on Sunday.

Iraq’s oil ministry has ended preparation to launch a sixth bidding round to auction off the gas blocks, the ministry said, without setting a date for the bidding process.

Iraq, OPEC’s second-largest producer after Saudi Arabia, flares much of its own gas, extracted alongside crude oil at its fields, because it lacks the facilities to process it into fuel and instead uses Iranian power imports to generate electricity.

Baghdad has been under pressure from the US to reduce its reliance on gas imports from Iran.

By ALARABIYA NEWS, June 22, 2023

Saudi Arabia has long had deep ties with the East and the West thanks to its strong position in the international energy arena. The Kingdom has been an oil and gas superpower for decades and is now focusing its attention on the development of its green energy capacity, to lead in the world of renewables.

But as it goes forward, it will have to decide on which international energy partners its wants to maintain and who it wants to compete with. China, a superpower in pretty much every energy source, is one such power. Over the last year, Saudi Arabia has been deepening its ties with the Asian giant, with greater collaboration suggesting a long-term energy partnership. 

China and Saudi Arabia have several long-standing ties, in energy and beyond. Until recently, when Russia overtook, Saudi Arabia was China’s top oil supplier. In 2022, it provided China with the equivalent to 1.75 million bpd of crude. And in December 2022, Saudi Arabia hosted the China-Arab summit, which was attended by Chinese President Xi Jinping.

The two leaders discussed trade ties and regional security, an ongoing discussion for the states. They decided to align policies across several areas, including security and oil, without interfering in one another’s internal affairs. Saudi Arabia and China stressed the “the importance of stability in the world oil markets,” highlighting that Saudi Arabia is a reliable exporter of oil to its Chinese partner. 

In March, the two powers announced they would be working together to construct a landmark $10-billion refinery in the north-eastern Liaoning province of China, with funding from Saudi’s state-owned Aramco. This brings together the largest energy consumer worldwide and one of its biggest exporters.

The development will consist of an integrated refinery and petrochemicals complex. Ashok Dutta, an oil industry executive based in Calgary, believes the move says “I’m committed to what you are doing, I will help you out and make this relationship more meaningful.” Aramco also acquired an expanded stake in a privately controlled Chinese petrochemical group for $3.6 billion. 

That same month, Saudi Arabia’s cabinet approved the decision to join the Shanghai Cooperation Organisation, a China-led political, security and trade alliance that includes member states such as Russia, India, Pakistan and four other central Asian nations. While it will not be considered a full member, the partial membership shows Saudi’s commitment to aligning its interests with China.

Earlier in the month, China helped secure a deal for long-time Middle Eastern rivals Saudi Arabia and Iran to resume diplomatic relations and reopen embassies in one another’s countries, demonstrating China’s involvement in the region. 

And this month, Saudi’s Energy Minister, Prince Abdulaziz bin Salman, said that the Kingdom wanted greater cooperation with China on trade and energy, rather than competition. Bin Salman stated during the 10th Arab-China Business Conference: “We came to recognize the reality of today that China is taking, had taken a lead, will continue to take that lead. We don’t have to compete with China, we have to collaborate with China.”

The energy minister highlighted the value in working in partnership with China, as the Asian giant has already strongly developed its renewable energy sector, getting the “right manufacturers”. Further, China’s oil demand continues to grow year on year, showing significant potential for Saudi’s crude export market as demand in other parts of the world begins to wane. 

However, bin Salman was quick to state that this partnership does not mean that Saudi Arabia will stop collaborating with other world powers, such as Europe, South Korea, Japan, the U.S., and Latin America. When asked whether the strengthening of ties with China would affect Saudi’s relationship with other countries the minister said: “We are Saudi Arabia, we don’t have to be engaged in what I call a zero-sum game. We believe that there are so many global opportunities.”

Also at the event, Saudi Arabia signed a $5.6-billion deal with China’s electric vehicle maker Human Horizons to design and manufacture EVs. A total of $10 billion worth of agreements were signed in total during the Arab-China conference, across the technology, renewables, agriculture, real estate, minerals, supply chains, tourism, and healthcare industries.

This demonstrates a greater commitment to deepening ties with China, as the Kingdom expands its investments beyond oil and gas to renewables. This also aligns Saudi’s Vision 2030, with the aim for greater economic diversification and the establishment of a strong renewable energy sector, that will support the development of smart cities. 

Over several meetings during the last year, Saudi Arabia has made it abundantly clear that it intends to continue developing its relationship with China, particularly in energy and security. As the two powers look to become world leaders in renewable energy, while also continuing their commitment to fossil fuels in the mid-term, they will align policies to support their energy industries.

The Kingdom has suggested that this will not negatively affect its relations with other world powers, although some remain sceptical about this commitment. 

Oilprice.com by Felicity Bradstock, June 22, 2023

The 58 rating InvestorsObserver gives to Exxon Mobil Corp (XOM) stock puts it near the top of the Oil & Gas Integrated industry. In addition to scoring higher than 88 percent of stocks in the Oil & Gas Integrated industry, XOM’s 58 overall rating means the stock scores better than 58 percent of all stocks.

What do These Ratings Mean?

Analyzing stocks can be hard. There are tons of numbers and ratios, and it can be hard to remember what they all mean and what counts as “good” for a given value. InvestorsObserver ranks stocks on eight different metrics. We percentile rank most of our scores to make it easy for investors to understand. A score of 58 means the stock is more attractive than 58 percent of stocks.

These scores are not only easy to understand, but it is easy to compare stocks to each other. You can find the best stock in an industry, or look for the sector that has the highest average score. The overall score is a combination of technical and fundamental factors that serves as a good starting point when analyzing a stock. Traders and investors with different goals may have different goals and will want to consider other factors than just the headline number before making any investment decisions.

What’s Happening With Exxon Mobil Corp Stock Today?

Exxon Mobil Corp (XOM) stock is down -1.58% while the S&P 500 has gained 0.48% as of 2:14 PM on Monday, Jun 12. XOM has fallen -$1.70 from the previous closing price of $107.44 on volume of 7,532,421 shares. Over the past year the S&P 500 has gained 15.19% while XOM has gained 10.32%. XOM earned $14.78 a per share in the over the last 12 months, giving it a price-to-earnings ratio of 7.16.

By InvestorsObserver, June 22, 2023

U.S. Oil, a leader in retail, commercial, and wholesale fuel distribution; supply and trading; logistics; and terminal operations of refined products and renewable fuels, and U.S. Gain, a leader in the development and distribution of alternative fuels and environmental credits, today announced the formation of a combined company: U.S. Energy.

U.S. Energy is a vertically integrated energy solutions provider proficient in refined products, alternative fuels, and environmental credits. Its comprehensive portfolio of assets paired with risk management, financial services, and advisory insights offer customers realistic, executable strategies that satisfy both their economic and environmental goals.

U.S. Energy has offices in Wisconsin and Texas with an asset portfolio of more than 30 refined product terminals, 40 renewable natural gas development projects, 50 alternative fuel stations, and three forestry projects. As a key supplier to the transportation market, U.S. Energy offers diesel, gasoline, natural gas liquids, ethanol, biodiesel, renewable diesel, compressed natural gas, renewable natural gas, electric charging solutions, hydrogen, and a variety of carbon credits. Tenured in trading, logistics, storage, compliance, and marketing, U.S. Energy is uniquely positioned to serve its customers’ current and future energy needs.

As a privately held, family-owned business, U.S. Energy is a U.S. Venture company, committed to finding a better way to be the very best provider of transportation products, sustainability solutions, and insight driving the world forward.

U.S. Oil was most recently led by Eric Kessenich who joined the company in 2010 and was promoted to president in 2017. Kessenich was further promoted to chief operating officer of U.S. Venture in August 2022. As chief operating officer, Kessenich will oversee the operations of all U.S. Venture companies: including U.S. Energy, U.S. AutoForce, U.S. Lubricants, Breakthrough, and IGEN.

“This reunion is an important milestone for our company. While our roots remain in the refined products side of our business, we recognize the need to offer a more diverse range of solutions under one brand as our customers’ needs evolve—ultimately becoming an energy-agnostic solutions provider,” shared Eric Kessenich, chief operating officer at U.S. Venture. “With U.S. Oil’s tenure in refined products and U.S. Gain’s expertise in renewables, we knew we had an opportunity to service our customers with a more comprehensive offering and a streamlined experience.”

Mike Koel has been selected to lead U.S. Energy as its president. Koel has been with U.S. Venture for over 20 years—working within U.S. Oil as a trader, vice president of supply and trading, and vice president of business development. In May 2017, Koel was named president of U.S. Gain: a Sustainable Energy Solutions™ company he founded within U.S. Oil in 2011. In his new role as president of U.S. Energy, Koel will be responsible for the company’s growth and expansion into new markets and technologies.

“I’m honored to lead the U.S. Energy team in this next chapter as a company, and I’m excited to share we’ve already discovered synergies and opportunities to improve our customer experience,” said Mike Koel, president of U.S. Energy. “Our vertical integration throughout the energy supply chain enables access to an array of solutions at a competitive price. As an energy developer, distributor, and marketer, we can ensure our customers are aware of risks and opportunities within the industry and benefit from our development of new technologies that integrate with our service offerings.”

“The U.S. Oil brand dates back to our inception as a business. Formerly known as Schmidt Brothers Oil Company, my father and uncle founded this company in 1951 on our customer promise of finding a better way,” shared John Schmidt, president and chief executive officer at U.S. Venture. “As market needs have shifted, so have our solutions—giving way to new portfolio offerings and additional business units. The U.S. Energy brand continues that legacy: putting our customers first alongside their unique energy needs.”

Driven to be the very best and most trusted energy solutions provider dedicated to finding a better way toward a sustainable future, U.S. Energy has diversified throughout the energy supply chain to better serve its customers.

Gibson Energy said on Wednesday it will buy South Texas Gateway oil terminal from Buckeye Partners and its partners for $1.1 billion as the Canadian energy infrastructure firm looks to expand into U.S. crude oil export markets.

U.S. oil exports have boomed in recent years, touching a record of about 4.5 million barrels per day in March, on rising shale output, while Russia’s invasion of Ukraine boosted demand for U.S. oil.

South Texas Gateway, located in Ingleside, Texas, at the mouth of the Corpus Christi ship channel, is the second largest oil exports facility in the United States with total capacity of 8.6 million barrels across 20 tanks.

“As U.S. crude oil exports grow, driven by production growth from the low-cost, resource-rich Permian basin, Gibson anticipates the potential for future expansions at the terminal,” the Calgary, Alberta, company said in a statement.

Buckeye did not reply to a request for comment.

In March, the terminal exported a record 670,000 barrels per day, and year to date has handled 12% of U.S. crude exports, Gibson said.

The facility is 50% owned and operated by privately held Buckeye Partners. Phillips 66 (PSX.N) and Marathon Petroleum Corp (MPC.N) each have 25% stakes.

The company will finance the deal through a C$350 million ($262.72 million) equity offering and other debt offerings.

J.P. Morgan Securities Canada is acting as exclusive financial advisor to the deal, which is set to close in the third quarter of 2023. Latham and Watkins LLP and Bennett Jones were legal advisors on the transaction.

By Reuters, June 21, 2023

El Musel LNG terminal in Gijon has received administrative authorization for its start-up from the Spanish Ministry for the Ecological Transition and the Demographic Challenge.

According to the Spanish energy company Enagás, the technical conditions for the provision of LNG logistics services at the plant are established, and for its start-up, only the Commissioning Act is pending by the Industry and Energy Area of ​​the Government Delegation in the Principality of Asturias.

Previously, in February, the plant received the approval of the singular economic regime for its logistic use by the National Commission for Markets and Competition (CNMC).

“The start-up of El Musel is a milestone for the start of commercial operations of the infrastructure, which is part of the Government’s More Energy Security Plan, and will make it possible to reinforce the security of energy supply in Europe,” Enagás said.

To note, on 6 June, Enagás began the binding phase of the capacity allocation process (Open Season) for logistics services at the El Musel, which is expected to end in July. The logistics services offered for this infrastructure are LNG unloading, storage and loading operations.

The Spanish major pointed out that the Gijón plant could contribute up to 8 bcm of LNG capacity per year to the security of the European energy supply and will allow the docking of ships of between 50,000 and 266,000 m3. The plant has two tanks with 150,000 m3 of LNG storage capacity, two tanker loading bays with a capacity to load a maximum of 9 GWh/d and a maximum emission capacity of 800,000 Nm 3/h.

On 28 February, Enagás and Spanish LNG terminal operator Reganosa signed an agreement by which Enagás acquired a network of 130 km of natural gas pipelines from Reganosa and in return, Reganosa purchased a 25% stake in the El Musel plant.

Enagás noted that the agreement reinforces both companies, allowing them to take advantage of their synergies and work together on new possibilities for collaboration to strengthen the security of supply and progress with the decarbonisation objectives of Spain and Europe.

To note, the start-up of El Musel is also a part of Enagás’ 2030 strategic plan.

By Offshore Energy, June 16, 2023

Port of Rotterdam has awarded a feasibility study contract to Proton Venture, an ammonia engineering company, for the scoping and conceptual design of an ammonia export terminal in Western Australia (WA).

Via this future ammonia hub to be located in Oakajee, the Dutch port aims to import 3 million tons of ammonia per year by 2030. As explained, the facility will employ proven technology in a new application for the transfer and loading of ammonia onto marine vessels.

Under the feasibility study contract, Proton Venture will demonstrate the technical and economical feasibility of an integrated port terminal facility for ammonia storage and loading.

As the main contractor, Proton Venture teamed up with Intecsea, a company designing the subsea pipelines, and Bluewater, a designer of the single point mooring (SPM), to employ storage tanks in combination with a unique SPM.

This innovative approach will accelerate the export of ammonia supporting Port of Rotterdam’s import targets, the company said.

In addition to ammonia export, the Netherlands and Australia have already established collaboration on renewable hydrogen.

Earlier this year, the Netherlands and Australia signed a memorandum of understanding (MoU) to support the development of a renewable hydrogen supply chain from Australia to Europe, including hydrogen trade policy, standards and certification schemes, port infrastructure and supply chain development, innovative hydrogen technologies, including shipping, equipment and services, and government policies about safety, social licence and regulations for hydrogen.

The MoU is said to have the potential to make Rotterdam an international hub for hydrogen imports, including for transport to other countries in Northwest Europe.

Shortly after signing this MoU, the two countries formed a tripartite partnership with Germany, aiming to develop a joint hydrogen hub in Western Australia, known as TrHyHub.

The objective of the project is to develop a new and modern port industrial complex for large-scale hydrogen production for both local use and export.

OFFSHORE ENERGY by Ajsa Habibic, June 16, 2023