EGA to supply DUGAS with electricity in landmark tolling agreement, improving power generation efficiency and reducing environmental emissions for the UAE
by Roberto Guccione
EGA, Emirates Global Aluminium, the world’s biggest ‘premium aluminium’ producer, and DUGAS, Dubai Natural Gas Company, have signed a landmark tolling agreement under which EGA will generate the electricity required for DUGAS’s industrial operations using natural gas sourced by DUGAS from Dubai Supply Authority (DUSUP). DUGAS, part of ENOC Group (Emirates National Oil Company), is a producer of the gasoline additive Methyl Tertiary Butyl Ether (MTBE) as well as propane mix and NGL as by-products. The agreement, the first for EGA to supply another company with all its power requirements, will improve overall power generation efficiency and reduce environmental emissions in the United Arab Emirates, while creating a new revenue stream for the 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. EGA’s electricity generation capacity is 5,450 megawatts and its power plant in Jebel Ali has a capacity of 2,350MW. Receiving electricity from EGA’s more efficient power generation facilities means less natural gas is required to meet DUGAS’s power needs, reducing costs. DUGAS will place its own power generation facilities on stand-by for use only in emergencies. Abdulla Kalban, Managing Director & Chief Executive Officer of EGA, said: “EGA and DUGAS operate two of the largest industrial facilities in Dubai and this agreement makes our combined use of natural gas for power generation more efficient. This is in line with the goals of Dubai Plan 2021 and UAE Vision 2021 to promote the sustainable use of resources, and also creates a new commercial opportunity for EGA.”
Saif Humaid Al Falasi, Group Chief Executive Officer, ENOC Group said: “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.”