Abu Dhabi National Oil Company (Adnoc) has announced that it has signed a landmark gas sales agreement with Dubai Supply Authority (Dusup).
The agreement showcases the UAE’s commitment to progressive and pragmatic climate action and reinforces Adnoc’s role in enabling a responsible energy transition, said a statement from Adnoc.
As per deal, Adnoc will supply Dusup with natural gas, which will be used instead of clean coal for electricity generation at Dubai Electricity and Water Authority (DEWA)’s IPP (Independent Power Producer) Hassyan Power Complex, further reducing carbon emissions from the power generation process.
Initially built as a dual-fuel plant with the ability to operate full-time at full load on both natural gas or clean coal, the complex has now been transformed to run only on natural gas, it stated.
Present net electricity generation capacity of Hassyan Power Complex is 1,200 MW. A further 600 MW (net) is scheduled to be added in Q4 and an additional 600 MW (net) will be added by Q3 of 2023.
This supports the UAE Net Zero by 2050 Strategic Initiative and its plans to generate electricity from cleaner energy sources, stated the report.
The agreement was signed by Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy and Director-General of Dusup, and Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO in the presence of President HH Sheikh Mohamed bin Zayed Al Nahyan and HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai and other senior government officials.
On the deal, Sheikh Ahmed said: "This agreement supports the vision and directives of the wise leadership to turn Dubai into a carbon-neutral economy and provide 100% of Dubai’s total power generation capacity from clean energy sources by 2050."
"This agreement further strengthens energy cooperation between Abu Dhabi and Dubai, building on the foundations originally laid in 1998 and reinforced over the years, to expand the breadth and depth of our energy relations," he stated.
"While many countries around the world are returning to coal as a result of geopolitical uncertainty and energy price volatility, the UAE is delivering on its commitment to decarbonize its power sector," he added.
Dr Al Jaber said Adnoc was advancing its efforts to harness Abu Dhabi’s vast natural gas resources to meet the world’s growing demand for this important transition fuel and enable a responsible energy transition.
This landmark agreement will significantly reduce power generation emissions at the Hassyan Power Complex, directly supporting the UAE Net Zero by 2050 Strategic Initiative.
"Working in close collaboration with our customers and partners, Adnoc will continue to expand our natural gas capacity to deliver against our strategic objectives of decarbonizing our energy and power systems, ensuring UAE gas self-sufficiency and driving long-term and sustainable growth for the UAE," he added.
According to him, Adnoc’s integrated gas masterplan links every part of the gas value chain to ensure a sustainable and economic supply of natural gas to meet the growing requirements of the UAE and international markets.
The plan includes the application of new approaches and technologies to enable increased and competitive gas recovery from existing fields as well as developing untapped resources and leveraging innovation to continually drive emissions’ reduction.
Domestically produced natural gas is more commercially competitive compared to imported coal or gas and it will support economic growth while lowering emissions when used as a subsitute for coal in power generation, he added.-TradeArabia News Service