SEWA and SNOC sign gas sales agreement for power generation in Sharjah

SEWA SNOCSharjah National Oil Corporation (SNOC) and Sharjah Electricity and Water Authority (SEWA) have signed a full gas sales agreement (GSA) to supply natural gas for power generation in the emirate

The agreement was signed by Sheikh Sultan Bin Ahmed Al Qasimi, deputy chairman of the Supreme Petroleum Council and president of SNOC, and Rashid Alleem, chairman of SEWA.

SNOC, in a joint Venture with its partner Uniper, will organise the LNG import into the Port of Hamriyah to supply natural gas to the three power stations operated by SEWA.

First gas deliveries to SEWA from 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 (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.

Al Qasimi 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 the emirate of 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 JV to import the LNG between SNOC and Uniper has considerable capabilities and experience in natural gas activities to achieve the planned targets.”

Dr Alleem added, “The local supply of natural gas, landing 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.”

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