ADNOC and TAQA close a $3.8 billion strategic project to power and significantly decarbonize offshore production operations
Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) announced today the successful financial closing of their $3.8 billion strategic project to power and significantly decarbonize ADNOC’s offshore production operations.
Together with a consortium comprised of Korea Electric Power (KEPCO), Kyushu Electric Power Company (Kyuden) and Électricité de France (EDF) (the Consortium), this 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 leading positions 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 being returned to ADNOC after 35 years of operation.
The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, 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).
More than 50% of the value of this project will flow back into the UAE’s economy under ADNOC’s hugely successful In-Country Value (ICV) program. This landmark transaction also sets another benchmark for large-scale investment into the UAE and ADNOC from leading global energy companies and reinforces ADNOC’s focus and role as a catalyst for responsible and sustainable investment and value creation for Abu Dhabi and the UAE.
