Sharjah taps local gas supply and imports from Adnoc to meet power demand

Sharjah National Oil Company will meet the entirety of the emirate's gas demand

A Snoc gas exploration site. Sharjah has also begun to develop its own resources of gas to meet the growing demand for fuel for power generation. Courtesy of Sharjah Government Media Bureau

State-backed Sharjah National Oil Corporation has signed an agreement with the Sharjah Electricity and Water Authority to meet the gas requirements of the northern emirate amid its growing power needs.

Snoc will supply gas through its own output as well as imports from Abu Dhabi National Oil Company, it said in a statement on Monday. Snoc entered into a 10-year supply agreement with Adnoc in July.

“Snoc has been entrusted to make sure that Sewa always has the right quantity of gas that it needs to keep the lights on in Sharjah, as well as maintain the supply of water,” Sheikh Sultan bin Ahmed Al Qasimi, Deputy Ruler of Sharjah, said in the statement.

Sharjah has also begun to develop its own resources of gas to meet the growing demand for fuel for power generation.

Earlier this year, Snoc and Italian company Eni began developing the Mahani gasfield, which was found last year and has significant gas deposits. The Italian company will drill for gas from the Mahani-1 gas well. The gasfield was the first to be discovered in Sharjah in nearly 37 years.

The discovery is critical as it could help Sharjah meet its growing power needs. Home to more than 1.4 million people, the emirate is actively looking at various options to diversify its power mix to meet the rising demand of a growing population.

The extraction of new reserves will support Sharjah's plans to reach self-sufficiency in power generation by the end of this year. The emirate's utility has been looking to boost its power capacity as well as privatising parts of its business.

The potential of the domestic supply of gas, as well as imports from Adnoc, will eliminate the need for more expensive options to support the power grid.

Snoc previously planned to support Sewa by deploying a floating storage and regasification unit moored offshore at the Hamriya Port. However, the plans are now on the back burner following the successful award of three concessions to Eni.