Sharjah National Oil Corporation (SNOC) and Sharjah Electricity, Water & Gas Authority (Sewa) have signed an agreement in which SNOC is now contractually responsible for meeting nearly all of Sharjah’s gas demand.
To meet its obligation, SNOC is drawing on a portfolio of its own production, as well as gas imported from Abu Dhabi National Oil Company (Adnoc), with whom SNOC entered a 10-year supply agreement that started in July 2021, a WAM report said.
Sheikh Sultan bin Ahmed Al Qasimi, Deputy Ruler of Sharjah, Chairman of Sharjah Petroleum Council and President of Sharjah National Oil Corporation welcomed the development and lauded the SNOC, Sewa and Adnoc teams for their efforts to meet Sharjah’s growing energy needs.
Sheikh Sultan said: "While we all recognise that this is a historic event for SNOC, we also appreciate the great responsibility that comes with it. 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. I am confident that, with our people in SNOC and the cooperation of Sewa and Adnoc, we shall meet our obligation in the smoothest possible manner."
Saeed Sultan Al Suwaidi, Chairman of Sharjah Electricity, Water and Gas Authority, welcomed the development saying: "To secure a reliable gas supply, Sewa has diligently worked with SNOC to provide the most realistic gas demand forecast, taking into account the new IPP schedule and potential delays due to Covid-19. Sewa’s and SNOC’s magnificent cooperation has resulted in the most flexible technical and commercial contract. Sewa will continue to provide their best cooperation to assure the success of this gas deal."
Hatem Al Mosa, Chief Executive Officer of SNOC, said: "From the first year SNOC was established, it started exploring ways to resolve Sharjah’s gas supply challenge. It has taken years of planning and diligent work to get to this point. SNOC would like to recognise the support and cooperation of Adnoc management and teams, who were involved in securing a long-term gas supply agreement."
In 2019 SNOC and Adnoc signed an interim contract to close the gas supply gap with Sewa. This contract was later fortified with a 10-year gas supply agreement, which started in July 2021.
Gas is now flowing smoothly from SNOC’s portfolio to Sewa, including regular supplies from Adnoc, in accordance with the provisions of the signed contracts.-- TradeArabia News Service