New base 24 january 2018 energy news issue 1132 by khaled al awadi

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Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its content. Page 1 NewBase Energy News 24 January 2018 - Issue No. 1132 Senior Editor Eng. Khaled Al Awadi NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE UAE: Adnoc strikes three-year deal to supply Lotte Chemical Titan with 1 mn tons of naphtha a year The National - Mahmoud Kassem The Abu Dhabi National Oil Company (Adnoc) signed a three-year deal with Lotte Chemical Titan to sell the Malaysian petrochemical company up to 1 million tonnes of naphtha a year as the Emirate’ largest hydrocarbon producer increasingly strikes long-term deals to sell its products. “With this agreement we are implementing a new approach toward our sale of naphtha,” said Abdulla Al Dhaheri, the director of marketing, sales and trade at Adnoc. “Previously we have sold the product on shorter term, one-year contracts. By switching to a three- year contract we are capturing long-term market access and securing offtake. It is another example of how Adnoc is committed to mutually beneficial partnerships.” Adnoc produces more than 12 million tonnes of naphtha a year. It can be used for petrochemical-based products, including plastics used in cars, durable goods, detergent and milk bottles and food packaging. The agreement was signed at Adnoc’s headquarters by Mr Al Dhaheri and Lee Dong Woo, the president and chief executive of Lotte Chemical. “Demand for petrochemicals in South East Asia is expanding steadily and this three-year agreement with Adnoc will ensure security of naphtha supply, enabling us to expand and diversify our product portfolio and diversify our product portfolio,” Mr Lee said.

Transcript of New base 24 january 2018 energy news issue 1132 by khaled al awadi

Page 1: New base 24 january 2018 energy news issue   1132  by khaled al awadi

Copyright © 2018 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,

or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavours have been used to ensure the accuracy of the information contained in this

publication. However, no warranty is given to the accuracy of its content. Page 1

NewBase Energy News 24 January 2018 - Issue No. 1132 Senior Editor Eng. Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE

UAE: Adnoc strikes three-year deal to supply Lotte Chemical Titan with 1 mn tons of naphtha a year

The National - Mahmoud Kassem

The Abu Dhabi National Oil Company (Adnoc) signed a three-year deal with Lotte Chemical Titan to sell the Malaysian petrochemical company up to 1 million tonnes of naphtha a year as the Emirate’ largest hydrocarbon producer increasingly strikes long-term deals to sell its products.

“With this agreement we are implementing a new approach toward our sale of naphtha,” said Abdulla Al Dhaheri, the director of marketing, sales and trade at Adnoc.

“Previously we have sold the product on shorter term, one-year contracts. By switching to a three-year contract we are capturing long-term market access and securing offtake. It is another example of how Adnoc is committed to mutually beneficial partnerships.”

Adnoc produces more than 12 million tonnes of naphtha a year. It can be used for petrochemical-based products, including plastics used in cars, durable goods, detergent and milk bottles and food packaging. The agreement was signed at Adnoc’s headquarters by Mr Al Dhaheri and Lee Dong Woo, the president and chief executive of Lotte Chemical.

“Demand for petrochemicals in South East Asia is expanding steadily and this three-year agreement with Adnoc will ensure security of naphtha supply, enabling us to expand and diversify our product portfolio and diversify our product portfolio,” Mr Lee said.

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ADNOC Exploration and Production

ADNOC produces over 3.15 million barrels of oil per day, and over 8 billion standard cubic feet of gas

per day, which places us among the largest energy producers in the world

We are committed to producing a target of 3.5 million barrels of oil per day by 2018, with due consideration of prevailing market conditions, and are constantly researching, developing and implementing innovative technologies and approaches that will enable us to enhance recovery and ensure improved production efficiency.

Processing and Refining

ADNOC produces fuel for transportation, energy for heat and light, lubricants to keep engines and industries moving, and petrochemical products that positively impact the lives of millions of people around the world.

We are committed to strengthening and expanding our processing and refining businesses to optimize the application of our resources, while developing and producing a wide-range of new and innovative products that benefit customers worldwide.

The following ADNOC businesses are responsible for processing, refining and transforming our oil and gas into a variety of products that enhance our quality of life:

Abu Dhabi Oil Refining Company (Takreer)

Takreer is a leading oil refining company, with a total production capacity of almost 900,000 barrels per day, specializing in crude oil and condensate refining, supply of petroleum products and production of granulated sulphur.

Abu Dhabi Polymers Company (Borouge)

Borouge is an innovative chemical and plastics solutions provider, with a total production capacity of 4.5 million tons of polyolefin per year, specializing in the development of sophisticated, value-added plastics for fast-paced industries.

Ruwais Fertilizer Industries (Fertil)

Fertil is the Middle East’s leading producer and supplier of environmentally friendly Granular Urea and Ammonia Fertilizers, producing up to 3,300 metric tons of Ammonia per day and up to 5,800 metric tons of Urea per day.

Abu Dhabi Gas Industries Ltd., (GASCO)

GASCO is one of the world’s largest natural and associated gas processing companies, with a process capability of 5.5 billion standard cubic feet of feed gas per day. The company operates 3

desert plants for gas processing and natural gas liquids (NGL) extraction, an NGL Fractionation Plant, and a pipeline distribution network.

Abu Dhabi Gas Liquefaction Company Ltd., (ADGAS)

ADGAS is a natural and associated gas processing company, with a process capability of 8 million tons of Liquefied Natural Gas, Liquefied Petroleum Gas, Paraffinic Naphtha and Liquid Sulphur per year. The company operates a Liquefied Natural Gas plant on Das Island in the Emirate of Abu Dhabi.

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Morocco & Egypt:SDX Energy provides operational update Source: SDX Energy

SDX Energy, the North Africa focused oil and gas company, has provided a 2018 operational outlook statement prior to Tuesday's site visit for sell-side and industry analysts in Morocco.

Morocco (75% Working Interest)

• Given continued drilling success, 2018 gross production is targeted to increase in line with new customer tie-ins. Depending on timing of tie-ins, SDX is targeting gross production of 8-10mmscf/d of conventional natural gas by the end of 2018.

• SDX’s nine well Moroccan drilling programme continues in 2018, with the tie-in and testing of the most recent discovery, ONZ-7, the drilling of two development wells (KSS-2 and SAH-1) and the drilling of two exploration wells (LNB-1 and LMS-1).

• Including ONZ-7, the gross drilling cost for these wells inclusive of customer tie-ins, is expected to be approx. US$13.0 million.

• In addition, SDX plans to shoot 240km2 of 3D seismic in its Rharb Centre concession at an estimated cost of US$6.5 million.

Egypt - Meseda Concession (50% Working Interest/19.25% Economic Interest)

• 2018 gross production guidance is increased to 3,800bopd.

• SDX plans to drill four wells in 2018. Two wells to develop the Rabul discoveries (Rabul-3 and Rabul-4) and two wells to maintain production in the wider Meseda area (Infill Producer-1 and Infill Producer-2).

• The Company also aims to replace up to five ESPs in the wider Meseda area.

• Gross Meseda capex in 2018 is expected to be approx. US$6.0 million (SDX 50% share).

Egypt - North West Gemsa Concession (50% Working Interest)

• SDX intends to maintain gross 2018 production at 2017 levels, targeting 4,422boepd.

• To achieve this production it is planned to drill two wells (AASE-25 and AASE-27), and undertake seven well workovers.

• The expected gross cost of the two wells including processing facility tie-ins is US$6.6 million with the seven workovers expected to cost gross US$1.7 million (SDX 50% share).

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Egypt - South Disouq Concession (55% Working Interest)

• Up to four wells planned in H1 2018 with estimated gross capex of approx. US$12.0 million (SDX share 55%).

o Two exploration wells (Ibn Yunus-1X and Kelvin-1X) o Two development wells (SD-4X and SD-3X).

• Upon success of SD-4X and SD-3X, SDX expects to complete construction of a 10km

pipeline to the regional gas grid, together with the SD-1X processing facility. Gross capex is estimated at approx. US$15.0 million, subject to completion of tenders (SDX share 55%).

• Ibn Yunus-1X and Kelvin-1X are targeting up to 150bcf in separate structures from the SD1X discovery. If successful, volumes will be tied back to the SD-1X processing facility and flow through the 10km pipeline directly to the regional gas grid.

• Given the above, and assuming all necessary approvals are obtained, first gas is targeted mid-2018, with approx. 50mmscf/d expected from three wells in the SD-1X discovery structure. The gas price is still under negotiation.

• Annual gross opex, including processing facility rental cost, is predominantly fixed and estimated at approx. US$6.0 million, subject to completion of tenders (SDX share 55%).

Cash and Working Capital

Q4 2017 Highlights • Recovered approx. US$6 million from backdated Egyptian and Moroccan receivables.

• Paid approximately US$5 million of Moroccan drilling campaign costs.

• Reduced backdated payables by approx. US$6 million.

2018 Outlook

• In 2018, the Company will look to make further reductions in its backdated Egyptian receivables balance.

• Commitment well in South Ramadan offshore concession (SDX share 12.75%) expected to be drilled in 2018. SDX's share of the cost expected to be approx. US$3 million.

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Morocco: SDX Energy gas discovery at the ONZ-7 development SDX Energy, the North Africa focused oil and gas company, has announced that a gas discovery has been made at its ONZ-7 development well on the Sebou permit in Morocco.

The ONZ-7 well was drilled to a total depth of 1,167 meters with 5 meters of net conventional natural gas pay in the Hoot formation. The well came in on prognosis but reservoir quality exceeded initial expectations, encountering porosity in the pay section of 35.3%.

The well will now be completed, tested and connected to existing infrastructure. SDX expects to provide a further update on testing results in early February.

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Bapco's $5 billion modernisation drive will be completed in 2022 Reuters/Hamad I Mohammed

The Bapco modernisation programme, estimated to cost a total of $5 billion, is on track for completion in 2022, Oil Minister Shaikh Mohammed bin Khalifa Al Khalifa has said.

The minister said the $4.2bln engineering, procurement, construction and commissioning turnkey contract was awarded last month to a joint venture led by TechnipFMC.

Addressing delegates today during the opening of the Middle East Refining Technology Conference (MERTC) in the Ritz-Carlton, Bahrain, the minister said the $4.2bn engineering, procurement, construction and commissioning turnkey contract was awarded last month to a joint venture led by TechnipFMC.

The programme entails the expansion of the capacity of the existing Sitra oil refinery from 267,000 up to 360,000 barrels per day besides improving energy efficiency, valorisation of the heavy part of the crude oil barrel (bottom of the barrel), enhancing products slate and meeting environmental compliance. The minster also said Bahrain is looking for more partners to develop the Bahrain oilfield, which was exited by Mubadala and Occidental Petroleum in 2016.

Residents are seen doing their evening walk near the petroleum pipelines as State-run

Bahrain Petroleum Co (Bapco) refinery is seen at the back, in Ma'ameer village, south of

Manama, Bahrain, August 22, 2017.

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Oman:Pact inked to drive renewable energy development Oman Observer

GlassPoint Solar, the leading supplier of solar energy to the oil and gas industry, has signed a collaboration agreement with a host of partners to establish its corporate social responsibility initiative, the ‘GlassPoint Innovation Spur’.

The programme is set to contribute and sustainably drive innovation within Oman’s renewable energy and water management sectors. The list of partners includes The Research Council (TRC), Innovation Park Muscat (IPM), Public Authority for SME Development (Riyada) and Sharakah.

An intensive full-cycle incubation programme, the ‘GlassPoint Innovation Spur’ will provide aspiring Omani entrepreneurs with an integrated ecosystem of scientific, technical and business support. The two-year programme will equip participants with valuable skill sets through coaching and mentorship, as they transform their innovations into implementable businesses.

A robust screening, selection, and testing criteria is in place to ensure originality and economic feasibility. Selected entrepreneurs will receive practical support to further develop their inventions and establish businesses before being linked to investors.

Signing the agreement on behalf of GlassPoint was Ben Bierman, COO and Acting CEO: “GlassPoint is committed to driving innovation for a sustainable Oman. That is why we are launching the ‘GlassPoint Innovation Spur’ to act as a catalyst and create green businesses.

It transcends typical business-related programmes because it goes beyond conceptualisation and training and focuses on knowledge-transfer. Thanks to the contributions of our partners, we are able to offer a full-fledged mentorship and incubation programme that promises to hone the business acumen of Omani entrepreneurs and help them grow their inventions into feasible and sustainable businesses.”

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Dr Hilal Ali Zaher al Hinai, Secretary-General of TRC, remarked: “The Research Council recognises the significant role of entrepreneurship promoting a culture of innovation and research amongst Oman’s young talent. This is an initiative that stands out for its unequivocal focus on transforming innovations into genuinely valuable and needed commercial products and services.”

Representing IPM at the signing ceremony was Dr AbdulBaqi Ali al Khabouri, Director of Science Parks. He said: “Through IPM, we look forward to providing Oman’s ambitious, innovative and talented entrepreneurs with the required tools to unlock their full potential and ensure a sustainable and successful future for these fledgling businesses.”

Signing for Riyada, was Khalid bin al Safi al Huraibi, the Acting Chief Executive of Riyada. He said: “There is certainly tremendous entrepreneurial spirit in the Sultanate but bringing an innovation to market and creating a sustainable business is a complicated process.

Well-researched and thoroughly planned, this programme is a rigorous, motivating and realistic preparation for the commercial

journey. Riyada is proud to lend its expertise to the participants and helping them take the necessary right first steps to ensure a sustainable success of their innovations.”

The agreement was also signed by Abdullah al Jufaili, General-Manager of Sharakah. He remarked: “Sharakah is proud to partner in this programme in order to develop new innovative and research-based renewable energy and water management start-ups in Oman. We are confident that the foundation and direction this programme provides will equip Oman’s young eco-entrepreneurs for both domestic and international success.”

An example to the Innovation Spur entrepreneurs, GlassPoint developed its own proprietary solar technology that’s been deployed on oilfields in California and the Middle East. Its unique technology harnesses the sun’s free and renewable energy to produce steam for heavy oil extraction.

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Russia may back Aramco IPO, enhance OPEC ties Reuters - Dmitry Zhdannikov

Russian pension funds are considering investing in Saudi Arabian state oil major Aramco when it lists its stock in a move to strengthen the partnership between the world’s two top oil producers, Russia’s top state investment officer said.

The head of Russia’s Direct Investment Fund, Kirill Dmitriev, told Reuters on Tuesday that Moscow and Riyadh should be coordinating oil policies for many more years.

“We see great interest in the Aramco IPO from Russian pension funds as well as from our Chinese partners,” said Dmitriev, who two years ago was the first Russian official to suggest the possibility of a joint oil output deal with OPEC.

He said he could not disclose the names of the funds or the amount they were prepared to invest.

Sources told Reuters last year Chinese state oil companies were willing to become cornerstone investors in the Aramco IPO which could become the world’s biggest, valuing the firm at up to $2 trillion and raising more than $100 billion.

“Russia already has significant positions in the oil business so it is hard to expect us taking a very significant stake during the IPO,” Dmitriev said on the sidelines of the World Economic Forum in Davos. He added that the deal would help strengthen growing cooperation with Riyadh.

Non-OPEC Russia and OPEC led by Saudi Arabia agreed to cut oil output by 1.8 million barrels per day (bpd) or around 2 percent of global production throughout 2017 and 2018, in a move that has helped oil prices to double from their 2016 lows to around $70 a barrel.

“Extending such cooperation for many more years would be very useful for the market. It has proven its efficiency, when we were targeting balancing supply and demand rather than targeting a particular oil price,” said Dmitriev.

OPEC has said it wanted global oil stocks to return to a five-year average and the group’s officials have said that target could be reached by the middle or end of 2018. But even when the target is reached, OPEC has insisted it would exit from cuts gradually in order not to shock the market.

“Future mechanisms of cooperation and concrete tools could differ,” said Dmitriev. He said oil producers had generated an extra $600 billion in revenues thanks to oil cuts and higher prices over the past year, which allowed them to resume investments and guarantee no supply shortages in the future.

For Russia and Saudi Arabia the deal has also paved the way for dialogue on many other fronts despite the two countries effectively fighting a proxy war in Syria. “The deal has created elements of trust in investments and in political cooperation. It did help political dialogue. It showed Russia and Saudi Arabia can work together,” Dmitriev said.

“Without the deal, a visit of the Saudi king to Russia wouldn’t have been possible and wouldn’t have been that successful,” said Dmitriev, referring to King Salman’s visit in October.

Page 10: New base 24 january 2018 energy news issue   1132  by khaled al awadi

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NewBase January 24 - 2018 Khaled Al Awadi

NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE

Oil dips on higher U.S. fuel stocks, but overall market remains supported Reuters + NewBase + Bloomberg

Brent crude futures were at $69.79 a barrel at 0749 GMT, down 17 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $64.45 a barrel, down 2 cents from their last settlement. Prices were pressured by U.S. data showing an increase in crude and gasoline stocks.

The American Petroleum Institute said on Tuesday crude inventories rose by 4.8 million barrels in the week to Jan. 19 to 416.2 million, after nine weeks of drawdowns. Gasoline stocks climbed by 4.1 million barrels, while refinery crude runs fell by 420,000 barrels per day.

In Asia, oversupply of gasoline has pulled down refinery profits their lowest level since 2015. Amid these indicators, traders are taking measures to protect themselves from a potential fall in crude prices.

Trading data shows open interest for Brent put options to sell at $70, $69 and $68 per barrel has surged since the middle of last week on the Intercontinental Exchange (ICE).

Oil price special

coverage

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WTIl Rally Pauses on Signs U.S. Crude Tanks Start to Fill Again

Futures were little changed in New York after advancing Tuesday to close at the highest level since December 2014. Industry data signaled inventories rose by 4.76 million barrels last week, which will be the first gain in 10 weeks if confirmed by a government report on Wednesday. The Energy Information Administration is forecast to show supplies slid by 2 million barrels.

Oil has extended a two-year gain as the Organization of Petroleum Exporting Countries and its allies trim output to reduce a global glut. While rising U.S. production is seen as a challenge to those supply cuts, Qatar’s Energy Minister Mohammed Al Sada said the market can absorb shale growth and will re-balance in the second half of 2018. The International Monetary Fund said the global economy this year will expand at the fastest pace since 2011.

“The market has been waiting for a pullback for a long time,” said Michael McCarthy, a chief strategist at CMC Markets in Sydney. “There seems to be a collective view that it may not arrive and any break through recent highs could see a potential run to $72 for West Texas. Despite the fact that U.S. production has come back toward record levels, it appears traders are focused more on the increase in demand that we’re seeing.”

West Texas Intermediate for March delivery was at $64.49 a barrel on the New York Mercantile Exchange, up 2 cents, at 7:45 a.m. in London. Total volume traded was about 11 percent below the 100-day average. WTI closed at $64.47 on Tuesday after advancing for a second session.

See also: Big Oil Said to Plan Tenfold Expansion of Cost-Cut Collaboration

Brent for March settlement lost 13 cents to $69.83 a barrel on the London-based ICE Futures Europe exchange after rising 1.4 percent on Tuesday. The global benchmark crude traded at a premium of $5.35 to WTI.

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STILL STRONG SUPPORT

Despite this, traders said oil would unlikely tumble far as markets remain supported by strong economic growth and by supply restrictions led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia.

Russian Energy Minister Alexander Novak said on Wednesday that an average Brent price of around $60 was a reasonable forecast for this year, Interfax news agency reported.

In the latest sign of healthy economic growth, Japanese manufacturing activity expanded at the fastest pace in almost four years in January, a survey showed on Wednesday.

Economic growth is translating into oil demand growth and comes at a time that OPEC and Russia lead production cuts aimed at tightening the market. The deal to withhold output started in January last year and is currently set to last through 2018.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore said a “beaming economic forecast along with stout compliance from OPEC (to withhold production) is providing convincing support.”

Futures in New York, which were rising closer to $65 a barrel in after-hours trading, plunged back to the level where they settled on Tuesday, at $64.47. The American Petroleum Institute was said to have reported domestic oil inventories increased 4.76 million barrels last week. That would be the first build in stockpiles since November if data from the Energy Information Administration confirms it on Wednesday.

Refiners are in the midst of maintenance with many plants planning to take down key process units in February, further weakening their demand for oil.

The U.S. benchmark closed at the highest since 2014 during Tuesday’s session amid expectations of falling U.S. inventories and after assurances from Russian and Saudi Arabian oil chiefs that a historic production accord by the world’s largest producers will endure. BBL Commodities LP, one of the world’s largest oil-focused hedge funds, believes Brent futures, the London-traded benchmark, will climb to $80 this year as stockpiles drop rapidly on OPEC’s curbs.

Prices have been rallying toward to $65 a barrel in New York and $70 in London as the Organization of Petroleum Exporting Countries and allied producers curb output for a second straight year.

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NewBase Special Coverage

News Agencies News Release January 24-2017

U.S. Solar Tariffs slow module sales & inflaming trade tensions By Liam Denning

It is perhaps fitting that President Donald Trump's salvo of tariffs on solar-power equipment was unleashed in a press release dropped late on Monday and sporting a headline that actually led with "large residential washing machines."

Why? Because, digging into the impact, the tariffs help to demonstrate one thing: Solar modules -- blocks of cells that are put together to make panels -- might seem space-age, but, cost-wise, they're a little more mundane. That, of course, is the whole point.

China's breathtaking expansion in making them has been the primary reason their price has declined by 80 percent since 2010, crushing margins everywhere and helping to push many a manufacturer elsewhere into bankruptcy. Yet the tariffs Trump has imposed look unlikely to encourage solar-equipment factories to start sprouting across the U.S.

Duties on imported modules from non-exempt countries start at 30 percent in year one and fall by 5 percentage points each year until the final level of 15 percent. Here's Bloomberg New Energy Finance's latest projections of the cost of solar modules in the U.S.:

Sundown

The cost of solar modules has fallen dramatically already

Source: Bloomberg New Energy Finance

Note: Average estimated and projected module cost for U.S. utility-scale tracking solar installation. Real 2017 U.S dollars.

On the face of it, therefore, if the tariffs kicked in this year, they would add about 10 cents to the cost, taking it to 43 cents per watt.

Notice this would still be lower than in 2016 -- which also happened to be the biggest year ever for U.S. solar installations, at 13.6 gigawatts.

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That year's activity was given a boost by a different arm of the government, as project developers rushed to start them ahead of a feared abolition of tax credits by Congress, which ultimately didn't happen. Still, modules costing almost 50 cents a watt clearly were not a barrier.

Stopping the Clock

All else equal, the tariffs would keep imported module prices at levels prevailing in late 2016 and through 2017

Source: Bloomberg New Energy Finance, Bloomberg Gadfly analysis

Note: Estimated average and projected cost of modules for utility-scale tracking solar installations. Real 2017 U.S. dollars.

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Another thing to bear in mind is that the cost of a solar project involves many other elements, such as inverters to make the current useful, design and construction, permitting and other elements. Here, for example, is how the elements break down for a commercial and industrial installation:

Modular Costs

Modules are just one element of the cost of a solar-power project

Source: Bloomberg New Energy Finance

Note: Estimated and projected average cost breakdown for a U.S. commercial and industrial solar installation. Real 2017 U.S. dollars. "EPC" is engineering, procurement and construction.

Over time, the module's share of overall project costs has fallen significantly, for all three of the main types of use:

Modular Mundanity

Modules have been declining as a part of the overall cost of solar projects of any type

Source: Bloomberg New Energy Finance

Note: Module's share of estimated and projected average cost of U.S. solar-installations by type. Residential share rises after 2021 due to scheduled roll-off of investment tax credit.

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The different levels there do mean, however, that the tariffs won't have the same effect on each type of project. Using BNEF's projections, the cost of a residential installation would rise by about 3 percent on average over the four years of the duties, while commercial and industrial costs would go up by 4.4 percent. Utility-scale projects would see a jump of almost 9 percent.

To be clear, in an industry as competitive as this, anything that messes with the continued decline in costs will deter some sales. Given that manufacturing accounts for only about 15 percent of the U.S. solar-power workforce, this seems not super-helpful for job creation.

However, it is tough to see how these tariffs stop the industry in its tracks, especially as the impending sunset of the investment tax credit offers an incentive for developers to not delay beyond this decade.

It is possible that, in disrupting sales and supply chains, the tariffs throw a structural wrench into continued declines in unit costs, not just temporary ones. And the door to further tit-for-tat trade-war escalations has been opened a bit wider -- with consequences that could spread way beyond solar power, energy, and even washing machines.

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

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Khaled Al Awadi is a UAE National with a total of 28 years of experience in the Oil & Gas sector. Currently working as Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary 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 Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years, he has developed great experiences in the designing & constructing of gas pipelines, gas metering &

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