ADNOC and ADPower launch joint tender for first-of-its-kind sub-sea power transmission network in Middle East
The Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Power Corporation (ADPower) announced, the issuance of a joint tender for a first-of-its-kind project in the Middle East & North Africa (MENA) region. The joint tender sets out to develop and operate the region’s first high-voltage, direct current (HVDC) sub-sea transmission system, that will connect ADNOC’s offshore production facilities to ADPower’s onshore electricity grid using state-of-the-art technology.
This innovative project, initiated by ADNOC in line with its continued objective to drive efficiencies and bolster resilience, brings together two vital UAE entities. Together, ADNOC and ADPower will deliver valuable long-term synergies in national infrastructure and jointly attract international partners to Abu Dhabi. In addition, this milestone project demonstrates the two entities’ commitment to continuously drive responsible and sustained investment and value creation for Abu Dhabi and the UAE, and support the ongoing development of the national economy in this complex and challenging period.
The project is expected to reduce the carbon footprint of ADNOC’s offshore facilities by up to 30% through ADPower’s efficient onshore power production. It also offers power supply cost optimization potential for ADNOC’s offshore facilities and will drive operational efficiency and system reliability by replacing the existing offshore localized gas turbine generators with diverse, more efficient and environmentally sustainable sources of energy, including renewable and nuclear power.
The project also offers potential for ADNOC to more effectively utilize its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing ADNOC to generate additional revenue for ADNOC and Abu Dhabi.
Requests for proposal have been sent to international companies that have the requisite experience to partner with ADNOC and ADPower on this important infrastructure project for Abu Dhabi. The transmission system will comprise two independent sub-sea HVDC transmission links and converter stations that will connect to ADPower’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO) – and provide a total installed capacity of 3,200 megawatts. Commercial operation is expected in 2025.
This significant capital project will be funded through a special purpose vehicle jointly owned by ADNOC (30% stake), ADPower (30% stake) and the selected developers and investors (40% stake). The project is to be executed on a build, own, operate and transfer (BOOT) basis. The successful bidders, alongside ADNOC and ADPower, will develop and operate the transmission system, with the full project being returned to ADNOC at the end of the transmission agreement.
About ADNOC
ADNOC is one of the world’s leading diversified energy and petrochemicals groups with a daily output of about 3 million barrels of oil and 10.5 billion cubic feet of natural gas. With 14 specialist subsidiary and joint venture companies, ADNOC is a primary catalyst for the UAE’s growth and diversification.
About Abu Dhabi Power Corporation
Abu Dhabi Power Corporation (ADPower) is a public joint stock company overseeing the financial and operational growth of Abu Dhabi’s water and electricity sector. ADPower’s subsidiaries are Emirates Water and Electricity Company (EWEC), Abu Dhabi Transmission and Despatch Company (TRANSCO), Abu Dhabi Distribution Company (ADDC), Al Ain Distribution Company (AADC), Al Mirfa Power Company (AMPC), Abu Dhabi Energy Services Company (ADES) and the ADX-listed Abu Dhabi National Energy Company (TAQA). ADPower is responsible for the transformation of Abu Dhabi’s water and electricity sector into a reliable, efficient, sustainable and value-generating system that is fit for the future. ADPower is a subsidiary of ADQ.