Sharjah Energy
What Sharjah’s New Gas Finds Mean for the Economy By Billy FitzHerbert, Regional Editor, Middle East, Oxford Business Group Following the discovery of significant gas deposits, the first such onshore find in 37 years, Sharjah has taken a significant step towards energy selfsufficiency. In late January the state-owned hydrocarbons company Sharjah National Oil Corporation (SNOC) and Italian energy firm Eni announced that they had found gas and condensate reserves with flow rates of 50m cu metres per day at the Mahani field, located near the emirate’s western border with Dubai. The discovery, the first onshore gas find since the early 1980s, comes a year after SNOC and Eni signed a
concession agreement for exploration in the area.
MEETING DEMAND
The development is set to provide a series of benefits to Sharjah, which – unlike other emirates and countries in the region – does not have significant hydrocarbons reserves. Indeed, some 92% of the emirate’s GDP comes from the non-oil sector. First and foremost, the gas should help Sharjah meet its rising power needs. With a population that is expected to reach around 2m by the end of the year, up from 1.5m in 2018, the emirate has been looking to expand
and diversify its power mix to keep pace with rising demand. The discovery is also expected to contribute to efforts to achieve power self-sufficiency by 2021. In late 2017 the Sharjah Electricity and Water Authority launched its strategy for the sector, which includes adding 1500 MW of capacity to the national grid by the end of next year. This would offset existing power imports, estimated to range from 700 MW to 1200 MW at present.
INDUSTRIAL IMPACT
The new reserves are also expected to bolster capacity in industry, one of the emirate’s major economic drivers. Industry accounts for around 25% of Sharjah’s GDP, and the recent finds should help to meet the energy demands of the growing sector.
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