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Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) have closed their $3.8 billion strategic projects to decarbonize ADNOC’s offshore production operations.
The company said in a statement that the project is a high-voltage direct current (HVDC) subsea transmission network in the Middle East and North Africa region.
with our partners @ADNOCGroup We completed a landmark transaction that will significantly reduce their offshore business. pic.twitter.com/vMNVLIctua
— TAQA (@TAQAGroup) September 23, 2022
A consortium comprising Korea Electric Power Company (KEPCO), Kyushu Electric Power Company (Kyuden) and EDF (EDF) will build, own, operate and transfer the transmission system together with ADNOC and TAQA and return the entire project to ADNOC after 35 years operation.
The development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, replacing existing offshore sources with more sustainable sources on Abu Dhabi’s onshore electricity network operated by Abu Dhabi Transmission, a wholly-owned subsidiary of TAQA Gas Turbine Generator and Dispatch Company (TRANSCO).
Construction of the project will begin in early 2022, with commercial operations expected to begin in 2025. Project announced in December 2021.
read: Abu Dhabi’s ADNOC, Taqa announce a $3.6 billion project to decarbonize offshore operations
According to ADNOC’s Domestic Value (ICV) scheme, more than 50% of the project’s value will flow back into the UAE’s economy.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Special Envoy for Climate Change, ADNOC Managing Director and Group CEO, said: “The region’s first innovative projects are driving responsible and sustainable value creation in Abu Dhabi, Further cementing the UAE’s position as a trusted and preferred investment destination for global capital.”
TAQA Chairman Mohamed Hassan Alsuwaidi added: “Achieving financial close is an important milestone for this unique project where TAQA will safely and efficiently supply ADNOC’s offshore facilities with low-carbon energy through TRANSCO’s power grid system.”
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