ADNOC, TAQA Close Funding for Offshore Power Project
The $3.8-billion campaign will result in the delivery of power and decarbonization of ADNOC’s offshore production operations.
Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) have closed financing on their $3.8-billion project to power and decarbonize ADNOC’s offshore production operations and supporting the UAE’s “Net-Zero by 2050 Strategic Initiative.” Together with a consortium comprising Korea Electric Power, Kyushu Electric Power Company (KEPCO), and Électricité de France, this is a first-of-its-kind high-voltage direct current (HVDC) subsea transmission network in the Middle East and North Africa region, according to ADNOC and TAQA.
The project was originally announced in December 2021 as a $3.6-billion investment. The $200-million increase is the result of higher interest rates.
The consortium will build, own, operate, and transfer the transmission system alongside ADNOC and TAQA, with the full project being returned to ADNOC after 35 years of operation.
The transmission system's total installed capacity will be 3.2 GW and comprise two, independent subsea HVDC links and converter stations that will connect to TAQA’s onshore electricity grid—operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO). Commercial operation is expected to begin in 2025.
“This innovative and first-of-its-kind project in the region is driving responsible and sustainable value creation into Abu Dhabi, further cementing the UAE’s standing as a trusted, go-to investment destination of global capital,” said Dr. Sultan Ahmed Al Jaber, ADNOC Group CEO. “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.”
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 TRANSCO.
More than 50% of the value of this project will flow back into the UAE’s economy under ADNOC’s In-Country Value program.
The KEPCO-led consortium collectively holds a 40% stake in the project on a build, own, operate, and transfer basis, with ADNOC and TAQA each owning a 30% stake.