ADNOC's offshore facilities will be connected through the sub-sea transmission with ADPower's grid. The project could bring about a major reduction on carbon footprint. Image Credit: Gulf News Archive

Abu Dhabi: Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi Power Corporation (ADPower) have issued a joint tender for what is said to be a first-of-its-kind project in the Middle East and North Africa.

The tender sets out to develop and operate the region’s first high-voltage, direct current sub-sea transmission system that will connect Adnoc’s offshore oil and gas production facilities to ADPower’s onshore electricity grid.

Commissioning is expected in 2025.

The project is expected to reduce the carbon footprint of Adnoc’s offshore facilities by up to 30 per cent through ADPower’s eonshore power production.

Other related benefits will include supply cost optimisation for Adnoc’s offshore facilities as well as replacing the existing offshore gas turbine generators with more environmentally sustainable sources of energy.

“This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources.” said Yaser Saeed Al Mazrouei, Adnoc Upstream executive director.

It will enable Adnoc to “utilise the natural gas currently used to power our offshore facilities for higher-value purposes.

Funding mechanism

The project will be funded through a special purpose vehicle jointly owned by Adnoc and ADPower – each holding 30 per cent - and the selected developers and investors with 40 per cent.

It is to be executed on a build-own-operate and transfer 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.

“We are reinforcing Abu Dhabi’s global position as we implement this first-of-a-kind mega project that will not only create synergy between two critical industries, but drive the emirate’s economic growth through long-term value creation,” said Omar Alhashmi, executive director – Asset Management at ADPower.

Tender update
Requests for proposal have been sent to international companies.

The transmission system will comprise of two independent sub-sea 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.