The Four groups have submitted binding commercial offers for the planned high-voltage sub-sea transmission project to connect Abu Dhabi National Oil Company’s (Adnoc’s) offshore oil and gas production facilities to Abu Dhabi’s onshore national electricity grid.
The use of power generated onshore is expected to reduce Adnoc’s offshore carbon footprint by up to 30 per cent, with a significant amount of Abu Dhabi’s energy to be provided by renewable energy and nuclear power in the coming years.
“This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources,” Yaser Saeed Al-Mazrouei, Adnoc Upstream executive director, said in April when the tender was launched. “It will enable Adnoc to utilise the natural gas currently used to power our offshore facilities for higher-value purposes.”
The project will be developed by a special purpose vehicle (SPV) – in which the successful developers from the tender will hold a 40 per cent stake, with Adnoc and ADPower, now fully owned by Abu Dhabi National Energy Company (Taqa), to each hold a 30 per cent stake.
The scheme will be developed under a build-own-operate and transfer (BOOT) model, with ownership of the project to be transferred back to Adnoc at the end of the concession agreement.
The project is due to be commissioned in 2025.