Abu Dhabi's ADNOC, Taqa in venture for sustainable water supply to onshore operations; projects of Dh8.8b expected
ADNOC-Taqa take 51% in project company, with investments ranging around $2.4b
Dubai: Abu Dhabi powerhouses ADNOC and Taqa are launching a new project company to provide sustainable water supply for ADNOC’s many onshore operations. The project investments that the new entity will take on are estimated at Dh8.8 billion ($2.4 billion).
ADNOC and Taqa will have 51 per cent in the 'project company', with a consortium holding the rest on a build-own-operate and transfer (BOOT) basis. The consortium features Orascom Construction and Metito, and will arrange the project financing for the construction phase and develop the project. The full project will be returned to ADNOC after 30 years of operation.
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, supplying sustainable water for ADNOC’s onshore operations.
The plan entails developing a centralized seawater treatment facility and transportation network for ADNOC operations at the Bab and Bu Hasa fields in Abu Dhabi. This project will replace the current 'high-salinity, deep aquifer water systems' at the fields, thereby reducing water injection related energy consumption by up to 30 per cent.
The project will be connected to the grid and will receive 100 per cent of its power from clean energy sources.
Incidentally, ADNOC and Taqa are shareholders in Masdar, the Abu Dhabi clean energy company. (Mubadala is the other entity.)
The new entity will 'reduce our environmental footprint and unlock significant value as we continue to decarbonize and future-proof our operations', said Abdulmunim Al Kindy, ADNOC's Upstream Executive Director.
"With a substantial portion of the project value flowing back into the UAE economy, this landmark initiaitive will further stimulate economic and industrial growth and create commercial opportunities for the private sector.”