Sharjah National Oil Corporation (SNOC) said it has signed a full gas sales agreement (GSA) with Sharjah Electricity and Water Authority (Sewa) targeting the supply of natural gas for power generation in the UAE emirate.
SNOC, in a joint venture with its partner Uniper, will organise the importation of liquefied natural gas (LNG) into the Port of Hamriyah in Sharjah and supply natural gas to the three power stations operated by Sewa, said Sheikh Sultan Bin Ahmed Al Qasimi, the deputy chairman of the Supreme Petroleum Council and president of SNOC after inking the agreement with Dr Rashid Alleem, the chairman of Sewa.
First gas deliveries to Sewa from the joint venture will be in early 2019, he stated at the signing ceremony held in the presence of Sheikh Mohamed Bin Ahmed Al Qasimi, Supreme Petroleum Council and Hatem Al Mosa, the chief executive of SNOC.
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, he added.
The project will utilise a new, state of the art Floating Storage and Regasification Unit (FSRU) 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.
Sheikh Sultan said: "We have committed 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 emirates as a strategic energy infrastructure asset for the nation, to meet the growing demand for energy by residential, industrial and utility consumers."
"The joint venture to import the LNG between SNOC and Uniper has considerable capabilities and experience in natural gas activities to achieve the planned targets," he added.
Dr Alleem said the local supply of natural gas, landing directly into Sharjah will enhance the economy, reliability and security of electrical power supplies to all its 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," he noted.
Al Mosa pointed out that the petroleum sector of Sharjah had a long heritage of 34 years in providing gas supplies to customers throughout the Northern Emirates.
"We are pleased to be able to resume the role as a major energy supplier within the UAE. The project objective is to close the gas supply/demand gap in Sharjah and the Northern Emirates with room for expansion to support energy demand across the country for many years to come," he added.