RAK Gas has signed a gas storage service agreement with Sharjah National Oil Corporation (SNOC) to manage the demand and supply of natural gas in Ras Al Khaimah.
The agreement, signed on the sidelines of Adipec, will allow RAK Gas to use the Sharjah-based energy company’s gas storage complex to handle the fluctuation between high and low demand periods, the companies said on Tuesday.
A statement said the service will give “operational flexibility” and mitigate supply shortages during emergencies.
“SNOC has always seen the availability of gas storage infrastructure as a strategic necessity for Sharjah and the UAE to assure an uninterrupted gas supply during seasonal and daily demand changes,” said Hatem Al Mosa, chief executive of SNOC.
SNOC, established in 2010, is tasked with the exploration, production, engineering, construction, operation and maintenance of Sharjah's energy assets.
In addition to the Mahani gasfield, which was discovered in 2020, SNOC owns and operates three onshore fields, a gas processing complex, two hydrocarbon liquid storage and export terminals and a network of flow lines and production pipelines.
In July, SNOC signed an initial agreement with Japan’s Sumitomo Corporation to explore a carbon-capture project in the emirate.
The companies will conduct a feasibility study covering the entire carbon-capture and storage value chain, including transport, storage, business models and assessment of regulatory aspects, SNOC said at the time.
“This agreement marks a significant step towards ensuring the reliability and sustainability of gas supply across Ras Al Khaimah,” said Chris Wood, chief executive of RAK Gas.
“Collaborating with SNOC allows us to enhance our operational efficiency and make a meaningful contribution to our emirate’s energy security.”
State-owned RAK Gas is tasked with ensuring reliable gas distribution and exploring industrial fuels and gas-to-power solutions.
The company is currently focusing on sustainable energy and exploring the potential of clean energy sources held within Ras Al Khaimah's geological formations.
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