Emirates Global Aluminium PJSC (EGA) announced last week that it has reached a landmark tolling agreement with Dubai Natural Gas Company (DUGAS) to generate electricity for the firm’s operations utilizing natural gas sourced by DUGAS from the Dubai Supply Authority (DUSUP).
Per the announcement, EGA will provide ENOC Group subsidiary DUGAS power for its operations from its power plant at Jebel Ali, which houses a power-generating capacity of 2,350 MW. With EGA providing DUGAS the totality of its power needs, DUGAS will place its own less-efficient power generation plant on standby for use in emergencies only.
This agreement is the first of its kind for EGA, and the firm says it will improve overall power generation efficiency and reduce costs and emissions. The agreement also opens a new revenue source for the firm.
Abdulla Kalban, Managing Director & Chief Executive Officer of EGA, noted the advantages provided to both entities by the deal.
“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.”
“As a leading industry player, we’re committed to identifying avenues for operational efficiency, resource management and cost optimisation,” noted ENOC Group’s CEO H.E Saif Humaid Al Falasi.
“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.”
Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminium is an aluminium conglomerate created by the merger between Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of US$15 billion at the time the merger took place. The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting.