Share

ADNOC, TAQA $3.8 billion offshore electrification and decarbonization project begins operations

Project involves world's largest power cable-laying vessel, Leonardo da Vinci
ADNOC, TAQA $3.8 billion offshore electrification and decarbonization project begins operations
The project will require some 1,000 km of HVDC cables bundled with fibre optics (Photo Credit: WAM)

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have begun a AED13.95 billion ($3.8 billion) strategic project to power and significantly reduce the carbon emissions of ADNOC’s offshore production operations. This project involves the use of the world’s largest and most advanced power cable-laying vessel, the Leonardo da Vinci, owned by the Prysmian Group.

The innovative project aims to develop and operate a high-voltage, direct current (HVDC) subsea transmission system in the Middle East and North Africa (MENA) region. This system will deliver cleaner and more efficient energy to ADNOC’s offshore production operations through the Abu Dhabi onshore power grid, which is operated by TAQA’s subsidiary, the Abu Dhabi Transmission and Despatch Company (TRANSCO).

Read more: ADNOC Gas, TotalEnergies, prioritize sustainability in $1 bn LNG deal

To achieve this, approximately 1,000 kilometers (km) of HVDC cables bundled with fiber optics will be required, the Emirates News Agency (WAM) reported. The transmission system will have a total installed capacity of 3.2 Gigawatts (GW), with two independent sub-sea HVDC links and converter stations.

Cable-laying operations by the Leonardo da Vinci

The Leonardo da Vinci will be responsible for laying the bundled cabling along two routes. The vessel has arrived in the UAE from Europe and will operate between Mirfa on the western Abu Dhabi coastline and the offshore Zakum cluster, covering a distance equivalent to that between Abu Dhabi and Dubai. The first route is 134km long, and the second route is 141km long.

Commercial operations of the offshore electrification project are scheduled to begin in 2025. The project aims to reduce Abu Dhabi National Oil Company‘s offshore operations’ carbon footprint by up to 50 percent by replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network.

The project will also have a significant economic impact on the UAE. More than 50 percent of the project’s value will contribute to the UAE’s economy under ADNOC’s In-Country Value (ICV) program.

Consortium participation and ownership

The project was initially announced in December 2021 and is funded through a special purpose vehicle (SPV) jointly owned by ADNOC and TAQA. A consortium consisting of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co., and Électricité de France (EDF) also holds a stake in the project. Moreover, led by KEPCO, the consortium has a combined 40 percent ownership and operates the project on a build, own, operate, and transfer basis.

For more news on sustainability, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.