Sharjah National Oil Corporation (SNOC), one of the major natural gas, condensate and LPG producers in the UAE, and RAKGAS, a state-owned energy firm, have signed a gas storage service agreement to meet the growing gas demand in the Northern Emirates, the companies said in a joint statement.
 
The deal, which was signed at ADIPEC 2023, is the first standalone commercial gas storage agreement for SNOC, following its continuing efforts to develop gas storage facilities since 2017. 
 
Hatem Al Mosa, Chief Executive Officer of SNOC, said: “This gas storage service agreement between SNOC and RAKGAS enhances the utilisation of SNOC gas storage infrastructure and achieves more optimal gas supply management for RAKGAS.”
 
Al Mosa highlighted that the company has already been operating and serving storage needs over two summers, with phase one set for completion by the first quarter of 2024. 
 
Chris Wood, Chief Executive Officer of RAKGAS, said the collaboration with SNOC will allow it to further strengthen capabilities and stabilise its system to be better prepared to face increasing demand swings in the future.
 
Established in October 2010, SNOC owns, manages and operates the oil and gas assets, originally under the 1978 Sharjah concession with AMOCO and later with BP. 
 
SNOC, the main gas provider to Sharjah, has four gas and condensate fields, a gas processing complex at Sajaa that connected and delivered gas to the Northern Emirates since 1983, as well as two export terminals located at Hamriyah.
 
Founded in 1984, RAK Gas ensures reliable gas distribution, exploring industrial fuels and gas-to-power solutions.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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