The agreement is the first for EGA to provide another company with all its electricity requirements. It will improve the overall efficiency of electricity generation and reduce environmental emissions in the Uae, while creating a new source of revenue for the EGA. The agreement is the first of its kind for EGA, and the company says it will improve overall efficiency of electricity generation and reduce costs and emissions. The agreement also opens up a new source of revenue for the company. “EGA and DUGAS operate two of Dubai`s largest industrial facilities and this agreement makes our combined use of natural gas more efficient for electricity generation. This is in line with the objectives of the Dubai 2021 plan and the UAE Vision 2021 to promote the sustainable use of resources and also creates a new business opportunity for EGA. Emirates Global Aluminium, based in Abu Dhabi, United Arab Emirates, is an aluminum group created in 2013 by the merger of Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL). At the time of the merger, EGA had an estimated enterprise value of $15 billion. The company is equally owned by the Mubadala Development Company of Abu Dhabi and the Dubai Investment Corporation.
Emirates Global Aluminium owns shares in aluminum oxide deraxit/oxide and primary aluminum smelting. “Our agreement with EGA is a cooperation that exemplifies our true spirit of promoting trust and innovation. This agreement will strengthen our two businesses for years to come and allow us to fulfill our mandate to meet the energy needs of the United Arab Emirates. After the split into two separate companies – Alcoa and Arconic – in 2016, Despite the volatility of global aluminum prices, Alcoa (NYSE: AA) has managed to increase its aluminum business by approximately $0.7 billion over the past three years and has increased the segment`s revenue base from $6.5 billion in 2016 to $7.2 billion in 2018. Trefis expects sales to remain buoyant over the next two years due to lower global aluminum prices (along with the increase in Chinese exports), compounded by a drop in aluminum shipments with the expiration of the Tennessee toll agreement in December 2018, under which Arconic can supply products to some Alcoa customers. However, beyond 2020, sales growth could be driven by strong end-market demand and global prices, which could help Alcoa increase its aluminum sales by about $1 billion over the next five years (2019-2023). United Arab Emirates: Emirates Global Aluminium (EGA) and Dubai Natural Gas Company (DUGAS) have signed a pioneering toll agreement under which EGA will produce the electricity needed for the industrial exploitation of DUGAS natural gas by the Dubai Supply Authority (DUSUP).