Adnoc and Abu Dhabi National Energy Company (Taqa) have completed the financial closing of their $2.2 billion (AED 8.3 billion) strategic project to provide sustainable water supply for Adnoc’s onshore operations.
This strategic investment between two Abu Dhabi energy giants entails developing and operating facilities to sustainably treat and supply seawater for Adnoc’s operations at the Bab and Bu Hasa fields in Abu Dhabi, furthering Adnoc’s efforts to decarbonise, transform and future proof its business.
A consortium comprised of Orascom Construction and Metito (the Consortium) will construct a centralised world-class seawater treatment facility and transportation and distribution network.
Adnoc and Taqa own a joint 51 per cent majority stake (25.5 per cent each) with the Consortium owning the remaining 49 per cent stake in the project company, that will develop the project under a build, own, operate and transfer (BOOT) model, with the full project being transferred to Adnoc after 30 years of operation.
The project will be financed by a group of nine local and international banks, including First Abu Dhabi Bank (FAB), Gulf International Bank (GIB), Natixis, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), Emirates NBD (ENBD), Emirates Development Bank (EDB) and Warba Bank through a combination of commercial and Islamic finance facilities.
The balance of the project cost will be provided by the project sponsors in accordance with their equity shares.
Abdulmunim Al Kindy, Adnoc Upstream Executive Director, said: “This strategic sustainable investment is a further example of how Adnoc is transforming, decarbonising and future-proofing our operations as we fully embrace the energy transition. At the same time, we are delighted to work in collaboration with Taqa to deliver another innovative project that will drive long-term value to Abu Dhabi and the UAE. As we accelerate our transformational journey to a lower-carbon future, this innovative project will equip our onshore operations with energy-efficient water supply, significantly reducing our carbon footprint.”
In line with the objectives of Adnoc’s In-Country Value (ICV) program, more than 60 per cent of the value of the project is expected to flow back into the UAE’s economy.
Jasim Husain Thabet, Group Chief Executive Officer and Managing Director at Taqa, said: “We are proud to have reached financial close on this important project, which has progressed rapidly since its inception. The collaboration of industry leaders Taqa and Adnoc allows us to deliver a world-class sustainable water project that not only reduces energy consumption but also bolsters energy security. As a low carbon power and water champion, and a fully integrated utility company, Taqa is a partner of choice for industrial players seeking to decarbonise their operations through the provision of sustainable water and power solutions and investment in the critical infrastructure needed to enable net-zero."
Replacing the current high-salinity, deep aquifer water systems at the fields, the project is expected to reduce water injection-related energy consumption by up to 30 per cent. Connected to the grid, the project is expected to receive 100 per cent of its power from clean energy sources. --OGN/ TradeArabia News Service