Emirates Global Aluminium, EGA, and the Dubai Natural Gas Company, DUGAS, have signed a landmark tolling agreement under which EGA will generate the electricity required for industrial operations at the DUGAS using natural gas sourced by DUGAS from the Dubai Supply Authority.
The agreement is the first one wherein EGA will supply another company with all its power requirements, which will improve the overall power generation efficiency and reduce environmental emissions in the UAE, while creating a new revenue stream for EGA.
EGA is the third-largest electricity generator in the UAE after the Dubai and Abu Dhabi utilities, with natural gas-fired power plants in both Jebel Ali and Al Taweelah to meet its own electricity needs. Its power plant in Jebel Ali has a capacity of 2,350MW.
Abdulla Kalban, EGA Managing Director and Chief Executive Officer, said, "EGA and the DUGAS operate two of the largest industrial facilities in Dubai and this agreement makes the combined use of natural gas for power generation more efficient. This is in line with the goals of the Dubai Plan 2021 and the UAE Vision 2021 to promote the sustainable use of resources, and also creates a new commercial opportunity for EGA."
Receiving electricity from EGA’s more efficient power generation facilities means less natural gas is required to meet the power needs of the DUGAS, thus reducing costs. The company will place its power generation facilities on stand-by for use only during emergencies.
Saif Humaid Al Falasi, ENOC Group Chief Executive Officer, said, "As a leading industry player, we are committed to identifying avenues for operational efficiency, resource management and cost optimisation. Our agreement with EGA is a collaboration that exemplifies our true spirit of promoting stewardship and innovation. This agreement will strengthen both our businesses for the years ahead and enable us to deliver on our mandate to meet the UAE’s energy needs."