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ABU DHABI, 24th May, 2023 (WAM) — ADNOC and Abu Dhabi National Energy Company, TAQA, today announced the award of a strategic investment project estimated at up to US$2.4 billion (AED8.8 billion) to provide ADNOC with Sustainable water supply onshore operations, strengthening ADNOC and TAQA’s position as responsible energy leaders and highlighting their efforts to drive sustainability initiatives to deliver long-term value.
The project will develop a centralized world-class seawater treatment facility and transportation network for Abu Dhabi’s Bab and Bu Hasa fields. The project will replace the oilfield’s current high-salinity deep aquifer water system, reducing water injection-related energy consumption by up to 30%. The project will be connected to the grid, and 100% of the electricity will come from clean energy.
ADNOC and TAQA will jointly hold a 51% majority stake in the project company (25.5% each) with the remaining 49% stake awarded to a consortium comprising Orascom Construction and Metito (Consortium).
The consortium will arrange project financing for the construction phase, develop the project on a Build, Own, Operate and Transfer (BOOT) model, and return the entire project to ADNOC after 30 years of operation.
Abdulmunim Al Kindy, Executive Director Upstream, ADNOC, said: “We are delighted to be working with TAQA and other industry leaders on this strategic project, which will reduce our environmental footprint and unlock significant value as we continue to decarbonise and future-proof our operations The project will improve our onshore energy efficiency by replacing inefficient, highly saline deep aquifer water systems with centralized seawater treatment facilities and transport networks. With a significant portion of the project’s value flowing back into the UAE economy, this This landmark move will further stimulate economic and industrial growth and create business opportunities for the private sector, in line with the wise directives of the UAE leadership.”
“Under ADNOC’s highly successful Domestic Value (ICV) programme, more than 60% of project value during the development and operational phases will flow back into the UAE economy.”
Jasim Husain Thabet, Group CEO and Managing Director of TAQA, said: “As a champion of low-carbon electricity and water, TAQA is delighted to be working with ADNOC once again, this time by providing ADNOC’s onshore operations with treated seawater. Sustainable Development Goals for the UAE. As a major utility company, TAQA is particularly committed to forging partnerships like this, using our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”
The project will deliver more than 110 million imperial gallons per day (MIGD) of nano-filtered seawater through 75 kilometers of transportation and over 230 kilometers of distribution pipelines and two pumping stations, providing sustainable water supply to ADNOC’s onshore operations.
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