Abu Dhabi, UAE: ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have announced a strategic investment project worth up to $2.4 billion (AED 8.8 billion) to provide sustainable water supply for ADNOC’s onshore operations.
The project will develop a centralized world-class seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi. The facility will use nano filtration technology to treat seawater and reduce water injection related energy consumption by up to 30%. The project will also be connected to the grid and will receive 100% of its power from clean energy sources.
ADNOC and TAQA will jointly hold a 51% majority stake (25.5% each) in the Project Company and the remaining 49% stake has been awarded to a consortium comprised of Orascom Construction and Metito (the “Consortium”). The Consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer (BOOT) model, with the full project being returned to ADNOC after 30 years of operation.
The project is expected to create significant value for ADNOC and TAQA as well as the UAE economy, as more than 60% of the project value during the development and operation phases will flow back into the UAE’s economy under ADNOC’s highly successful In-Country Value (ICV) program.
Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said: “We are delighted to partner with TAQA and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonize and future proof our operations. The project will enhance our onshore energy efficiency by replacing less-efficient high-salinity, deep aquifer water systems with a centralized seawater treatment facility and transportation network. With a substantial portion of the project value flowing back into the UAE economy, this landmark initiative will further stimulate economic and industrial growth and create commercial opportunities for the private sector, in line with the UAE Leadership’s wise directives.”
Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As a champion for low carbon power and water, TAQA is pleased to partner again with ADNOC, this time to advance the UAE’s sustainability goals by providing treated seawater for ADNOC’s onshore operations. As a major utility, TAQA is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”
The project is part of ADNOC’s ongoing efforts to optimize its operations and reduce its carbon footprint. ADNOC has set a target to reduce its greenhouse gas emissions intensity by 25% by 2030 and increase its use of clean energy sources. TAQA is also pursuing its vision to be a leading provider of low carbon power and water solutions in the UAE and beyond.
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