Page 13 - DMEA Week 39 2022

DMEA NEWS IN BRIEF DMEA

COMPANIES

ADNOC and TAQA close

landmark clean energy
and decarbonisation

transaction

Abu Dhabi National Oil Co. (ADNOC) and
Abu Dhabi National Energy Co. (TAQA) have
announced the successful financial closing of
their $3.8bn strategic project to power and sig-
nificantly decarbonise ADNOC’s offshore pro-
duction operations.
Together with a consortium comprised of
Korea Electric Power (KEPCO), Kyushu Electric
Power Co. (Kyuden) and Électricité de France
(EDF) (the Consortium), this is a first-of-its-
kind high-voltage direct current (HVDC) sub-
sea transmission network in the MENA region.
The innovative project progressed rapidly from
concept to development phase with construc-
tion starting in early 2022, underscoring both
ADNOC and TAQA’s leading positions to drive
climate action and support the “UAE Net-Zero
by 2050 Strategic Initiative.”
The Consortium will build, own, operate and
transfer the state-of-the-art transmission system in accelerating the UAE’s energy transition by installed capacity of 3.2 GW and will comprise
alongside ADNOC and TAQA, with the full pro- delivering cohesive solutions that enable cleaner two independent sub-sea HVDC links and con-
ject being returned to ADNOC after 35 years of sources of power to fuel economic growth. verter stations.
operation. Reaching financial close is an important mile- Commercial operation is expected to com-
Commenting on the successful financial clos- stone for this distinctive project, which will see mence in 2025.
ing of the transaction, Dr. Sultan Al Jaber, UAE TAQA providing ADNOC offshore facilities ADNOC, September 23 2022
Minister of Industry and Advanced Technology, with low-carbon energy securely and efficiently
Special Envoy for Climate Change and Manag- through TRANSCO’s power network system. QatarEnergy, GE to develop
ing Director and Group CEO of ADNOC, said: TAQA continues to showcase how its expertise
“ADNOC has once again demonstrated its abil- can be utilised to decarbonise industry through carbon capture roadmap
ity to successfully structure and close a bold and strategic partnerships and bringing value to its
progressive transaction that will help secure our stakeholders.’ and low-carbon solutions
low-carbon future as we intensify our efforts to More than 50% of the value of this project
decarbonise our operations. This innovative and will flow back into the UAE’s economy under for Qatar’s energy sector
first-of-its-kind project in the region is driving ADNOC’s hugely successful In-Country Value
responsible and sustainable value creation into (ICV) programme. QatarEnergy signed a Memorandum of Under-
Abu Dhabi, further cementing the UAE’s stand- This landmark transaction also sets another standing (MoU) with General Electric (GE)
ing as a trusted, go-to investment destination benchmark for large-scale investment into the to collaborate on developing a carbon capture
of global capital. As the responsible provider of UAE and ADNOC from leading global energy roadmap for the energy sector in Qatar. The
reliable and low-carbon energy, ADNOC will companies and reinforces ADNOC’s focus and focus of the MoU is to explore the feasibility of
continue to work with our partners to advance role as a catalyst for responsible and sustainable developing a world-scale carbon hub at Ras Laf-
practical and commercially viable solutions as investment and value creation for Abu Dhabi fan Industrial City, which as of today, is home to
the energy transition partner of choice.” and the UAE. more than 80 GE gas turbines.
The development is expected to reduce the Background: The project was initially Saad Sherida Al-Kaabi, the Minister of State
carbon footprint of ADNOC’s offshore oper- announced on December 22, 2021. for Energy Affairs, the President and CEO of
ations by more than 30%, replacing existing Given higher interest rates at the time of QatarEnergy, witnessed the signing of the MoU,
offshore gas turbine generators with more sus- Financial Closing, total project cost is $3.8bn vs. which was held at QatarEnergy’s headquarters
tainable power sources available on the Abu $3.6bn as announced on December 22, 2021. in Doha today. The MoU was signed by Ahmad
Dhabi onshore power network, operated by The KEPCO-led Consortium collectively Saeed Al-Amoodi, QatarEnergy’s Executive
TAQA’s wholly owned subsidiary, Abu Dhabi holds a 40% stake in the project on a build, Vice President, Surface Development and Sus-
Transmission and Despatch Co. (TRANSCO). own, operate and transfer (BOOT) basis, with tainability and Joseph Anis, the President and
Mohamed Hassan Alsuwaidi, Chairman of ADNOC and TAQA each owning a 30% stake. CEO of GE Gas Power Europe, Middle East and
TAQA, said: “TAQA is taking a progressive role The transmission system will have a total Africa.

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