United Arab Emirates-based oil and gas companies ADNOC and TAQA announced on Wednesday a $ 3.6 billion strategic project to “significantly decarbonize” ADNOC’s offshore production operations.
The two companies said the project is expected to develop and operate the first high voltage, direct current (HVDC-VSC) submarine transmission system of its kind in the Middle East and North Africa (MENA) regions.
“It will power ADNOC’s offshore production operations with cleaner, more efficient energy supplied through Abu Dhabi’s onshore grid owned and operated by TAQA’s transmission and distribution companies,” said ADNOC. increase.
The project will be funded through a consortium consisting of a dedicated company (SPV) jointly owned by ADNOC and TAQA and the Korea Electric Power Corporation (KEPCO), Kyushu Electric Power Company of Japan. Co. and Électricité de 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. The project requires the approval of the relevant regulatory agency.
According to ADNOC, this development is expected to reduce carbon dioxide emissions from ADNOC’s offshore operations by more than 30% and replace existing offshore gas turbine generators with the more sustainable power sources available in Abu Dhabi’s onshore power network. It has been.
ADNOC said that more than 50% of the project value will flow back into the UAE’s economy under ADNOC’s National Value (ICV) program, “ADNOC to promote responsible and sustainable investment and value creation in Abu Dhabi and the UAE. Supports TAQA’s efforts. “
The total installed capacity of the transmission system is 3.2 gigawatts (GW) and consists of two independent submarine HVDC links and a converter station that connects to TAQA’s onshore power grid operated by its subsidiary Abu Dhabi Transmission and Distribution Company (TRANSCO). .. Construction will begin in 2022 and commercial operation is expected to begin in 2025.
ADNOC also offers the possibility that this project will more effectively utilize the abundant gas that ADNOC is currently using to power offshore facilities for higher value purposes, and ADNOC added. He said it would be possible to generate income.
“The bid for this innovative project was issued in April 2020 and received a great deal of interest from international companies. Following this highly competitive bidding process, the consortium was selected.” ADNOC says.
https://www.oedigital.com/news/493037-adnoc-taqa-launch-3-6b-project-to-decarbonize-offshore-production-ops ADNOC launches $ 3.6 billion project to decarbonize TAQA