Sharjah National Oil Corporation signs new utility gas supply deal

Sharjah National Oil Corporation (SNOC) has announced an agreement with Sharjah Electricity and Water Authority (SEWA) to supply the emirate with natural gas for power generation.

The deal will see SNOC organise the import of LNG into Hamriyah Port in a joint venture with German energy company Uniper to supply three SEWA power stations.

The first deliveries of the joint venture will begin in early 2019, with some gas to jetty directly to SEWA’s Hamriyah power station.

Other gas will flow to SNOC’s Sajaa gas field and apply other SEWA power stations.

SNOC said the agreement would utilise a new floating storage and regasification unit moored permanently in Hamriyah Port. This will deliver gas directly into the UAE’s pipeline system.

“We have committed on the capability of the LNG import project to provide a smooth and reliable supply of energy to further enhance power generation within Sharjah. Further, we will make reliable gas supplies available throughout the emirate as a strategic energy infrastructure asset for the nation,” said Sheikh Sultan bin Ahmed Al Qasimi, deputy chairman of the Sharjah Petroleum Council and president of SNOC

“This will help meet the growing demand for energy by residential, industrial and utility consumers. The joint venture has considerable capabilities to achieve the planned targets considering the experience of both sides in natural gas activities.”

Dr Rashid Alleem, chairman of SEWA, added that the deal would close the gas supply and demand gap in Sharjah and the northern emirates with room to support energy demand across the country, allowing Sharjah to resume its role as a major energy supplier to the UAE.