Middle East

Abu Dhabi’s ADNOC, Taka announces a $ 3.6 billion project to decarbonize offshore operations

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (Taqa) have announced a $ 3.6 billion project to “significantly” decarbonize ADNOC’s offshore production operations.

According to the statement, the project plans to develop and operate a high voltage direct current (HVDC-VSC) submarine transmission system in the MENA region.

The total installed capacity of the transmission system is 3.2GW and consists of two independent submarine HVDC links and a converter station connecting to Taka’s onshore power grid operated by its subsidiary Abu Dhabi Transmission and Distribution Company.

The system powers ADNOC’s offshore production operations with “cleaner and more efficient” energy supplied through Abu Dhabi’s onshore power grid.

The project is funded through a special purpose vehicle (SPV) (30% stake each) jointly owned by ADNOC and Taqa, and a consortium consisting of Korea Electric Power Corporation (KEPCO), Kyushu Electric Power of Japan and France Electric Power. increase. France (EDF).

The consortium, led by KEPCO, owns a total of 40% stake in the project based on construction, ownership, operation and transfer.

The consortium will develop and operate the transmission system together with ADNOC and Taqa, and after 35 years of operation the entire project will be returned to ADNOC.

Construction will begin in 2022 and commercial operation is expected to begin in 2025. This project requires the approval of the relevant regulatory agency.

The project is expected to reduce carbon dioxide emissions from ADNOC’s offshore operations by more than 30% and replace existing offshore gas turbine generators with more sustainable power sources.

The statement added that it is expected to increase operational efficiency and improve energy supply system reliability while providing the possibility of optimizing power supply costs.

The project also offers the potential for ADNOC to more effectively utilize the gas currently used to power offshore facilities for higher value purposes, allowing the company to generate additional revenue. It will be possible, the statement said.

Yaser Saeed Almazrouei, Executive Director of ADNOC Upstream, said:

Over 50% of the project value will be returned to the UAE economy under ADNOC’s Domestic Value (ICV) program.

Jassim Hussain Tabet, Group CEO and Managing Director of Taka, said:

A bid was placed on the project in April 2020, which received “very strong interest” from international companies. Following the competitive bidding process, a consortium was selected.

Following the recently announced global clean energy venture among Taka, ADNOC and Mubadara, the project aims for a total renewable energy capacity of at least 50 GW by 2030.

ADNOC has also signed a Clean Energy Partnership with EWEC. This is expected to bring up to 100% of ADNOC’s onshore and more than 90% of the offshore production operations supplied by EWEC’s nuclear and solar clean energy sources.

https://gulfbusiness.com/abu-dhabis-adnoc-taqa-announce-3-6bn-project-to-decarbonise-offshore-operations/ Abu Dhabi’s ADNOC, Taka announces a $ 3.6 billion project to decarbonize offshore operations

Show More
Back to top button