Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) on Thursday announced the financial closing of their $3.8 billion strategic project to power and significantly decarbonise the former’s offshore production operations.
The ADNOC project, being implemented with a consortium comprising Korea Electric Power (KEPCO), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF), is a first-of-its-kind high-voltage direct current (HVDC) sub-sea transmission network in the MENA region.
The innovative project progressed rapidly from concept to development phase, with construction starting in early 2022, underscoring both ADNOC and TAQA’s efforts to drive climate action and support the UAE net-zero by 2050 strategic initiative.
The consortium will build, own, operate and transfer the state-of-the-art transmission system alongside ADNOC and TAQA, with the full project returned to ADNOC after 35 years of operation.
Dr. Sultan Al Jaber, minister of industry and advanced technology, and managing director and Group CEO of ADNOC, said the Group has once again demonstrated its ability to successfully structure and close a bold and progressive transaction that would help the efforts to decarbonise its operations.
“As the responsible provider of reliable and low-carbon energy, ADNOC will continue to work with our partners to advance practical and commercially viable solutions as the energy transition partner of choice,” Al Jaber said.
The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 percent, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network, operated by TAQA’s wholly owned subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO).
Mohamed Hassan Alsuwaidi, chairman of TAQA, reaching financial closure was an important milestone for this distinctive project, which will see TAQA providing ADNOC offshore facilities with low-carbon energy securely and efficiently through TRANSCO’s power network system. More than 50 percent of the value of this project will flow back into the UAE’s economy under ADNOC’s hugely successful In-Country Value (ICV) programme.
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