SNOC, SEWA sign gas sales pact for power generation

Sharjah / WAM

The Sharjah National Oil Corporation (SNOC), and the Sharjah Electricity and Water Authority (SEWA), have signed a full gas sales agreement, GSA, targeting the supply of natural gas for power generation in the emirate of Sharjah.
The agreement was signed by Sheikh Sultan bin Ahmed Al Qasimi, Deputy Chairman of the Sharjah Petroleum Council and President of SNOC, and Dr. Rashid Alleem, Chairman of SEWA.
SNOC, in a joint venture with its partner, Uniper, will organise the importation of liquefied natural gas, LNG, into Hamriyah Port in Sharjah, and supply natural gas to the three power stations operated by SEWA.
First gas deliveries to SEWA under the joint venture will be in early 2019. Some of the gas will flow from the Hamriyah Port receiving jetty directly into the SEWA ‘Hamriyah’ power station. Additional gas will flow to SNOC’s Sajaa gas field complex and will supply the other SEWA power stations.
The project will utilise a new, state-of-the-art floating storage and regasification unit that will be moored permanently in Hamriyah Port. The vessel will deliver natural gas into the pipeline system to support the requirements of customers throughout the UAE.
The agreement signed in the presence of Sheikh Mohamed Bin Ahmed Al Qasimi, Supreme Petroleum Council, and Engineer Hatem Al Mosa, Chief Executive Officer of SNOC.
“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. 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,” Al Qasimi said.
Commenting on the agreement, Dr. Alleem said, “The local supply of natural gas directly into Sharjah will enhance the economy, reliability, and security of electrical power supplies to all our residential and industrial customers. The vast flexibility provided by importing LNG as an energy source will assist in meeting the winter and summer energy demands for the foreseeable future.”
Speaking about the project’s goal, Al Mosa said, “The petroleum sector of Sharjah has a long heritage of 34 years in providing gas supplies to customers throughout Sharjah and the northern emirates and we are pleased to be able to resume the role of a major energy supplier within the UAE. The project’s objective is to close the gas supply-demand gap in Sharjah and the northern regions of the country with room for expansion to support energy demand across the country for many years to come.”