Sharjah’s LNG Project Gets the Green Light

Sharjah National Oil Corporation & Uniper successfully complete a Feasibility Study For the FSRU LNG Import Project offshore in Sharjah

By The Gulf Intelligence

A fully-fledged feasibility study has been completed and plans are now going ahead for the implementation of the Floating Storage and Regasification Unit (FSRU) at a location offshore of Hamriyah Port in the Emirate of Sharjah. The FSRU will have a size of approximately 180,000 cubic meter (m³) LNG storage volume and a gas send-out capacity of up to 1.0 billion cubic feet per day (bcfd). After the LNG has been re-gasified on board the FSRU, the gas will be routed to onshore through a subsea pipeline and tied-in to the existing local and Emarat pipeline gas grid.

The Project is now starting the required front-end engineering and design (FEED) work for the proposed LNG import facility. The FEED will be carried out by Uniper's Technology Group (UTG) in Germany.  In due course, UTG will manage the Invitation To Tender (ITT) process for the Engineering Procurement and Construction (EPC) contract(s).

In 2016, in order to implement this strategic project, SNOC, Sharjah’s state-owned oil and gas company, experienced in the management and development of gas fields and gas infrastructure, signed an MOU to form a Joint Venture with Uniper, a global energy company, experienced in building, owning and managing LNG, Power Generation and Gas Storage assets, as well as a global supplier of LNG and pipeline gas. 

The project will provide Sharjah and the UAE with a new independent point of entry for gas and is considered as a strategic energy project. The project supports the efforts of the UAE to close the current gas supply shortage and to provide a robust solution for the UAE’s future energy security. A binding ten-year Gas Sales Agreement was signed with Sharjah Electricity & Water Authority (SEWA) in May 2017 and the project is also in detailed discussions for additional Industrial-use gas off-take.

Hatem Al Mosa, CEO of SNOC commented: “SNOC is pleased to commit funds for the start of the FEED contract on this strategic project. This will enable the start of the project execution on sound grounds and planning in order to achieve a world-class project performance.”

John Roper, Managing Director and Head of Middle East for Uniper Global Commodities SE added: ‘’We have worked closely with our colleagues at SNOC in order to find the right technical and commercial solution for this important project in this rapidly developing gas market and we are very pleased to be at this exciting stage of our project’’.