ADNOC, TAQA award $2.4bn contract for sustainable water project ADNOC, TAQA award $2.4bn contract for sustainable water project
Now Reading
ADNOC, TAQA invest $2.4bn to supply sustainable water to onshore operations

ADNOC, TAQA invest $2.4bn to supply sustainable water to onshore operations

The project will develop a centralised seawater treatment facility for operations at the Bab and Bu Hasa fields in Abu Dhabi

Avatar
ADNOC Group Onshore Drilling Rig

ADNOC Group and Abu Dhabi National Energy Company (TAQA) have invested $2.4bn (Dhs8.8bn) to provide sustainable water supply to the oil company’s onshore operations, as part of the two entities’ broader sustainability initiatives that deliver long-term value.

The Abu Dhabi-based oil major and TAQA will jointly hold a 51 per cent majority stake (25.5 per cent each) in the project and the remaining 49 per cent stake has been awarded to a consortium comprised of Orascom Construction and Metito.

“We are also very pleased to strengthen our presence in the UAE as we continue to target strategic projects in the region across sectors in which we have developed strong expertise. This project also plays a key role in our growth strategy to pursue infrastructure investments that provide both construction opportunities and long-term recurring income,” said Osama Bishai, CEO of Orascom Construction.

The consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer model, with the full project being returned to ADNOC after 30 years of operation.

The project will develop a centralised world-class seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi. It will replace the current high-salinity, deep aquifer water systems at the fields.

The new water supply system will reduce water injection-related energy consumption by as much as 30 per cent. The project will be connected to the grid and will receive 100 per cent of its power from clean energy sources.

“We are delighted to partner with TAQA and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonise and future-proof our operations,” said Abdulmunim Al Kindy, ADNOC Upstream executive director.

“The project will enhance our onshore energy efficiency by replacing less-efficient, high-salinity, deep aquifer water systems with a centralised seawater treatment facility and transportation network.”

The initiative is expected to further stimulate economic and industrial growth and create commercial opportunities for the private sector in the UAE, as a substantial portion of the project value will flow back into the local economy.

“More than 60 per cent of the project value during the development and operation phases will flow back into the UAE’s economy under ADNOC’s highly successful In-Country Value (ICV) programme,” added Al Kindy.

The project will deliver more than 110 million imperial gallons per day (MIGD) of nano-filtered seawater through 75km of transportation and over 230km of distribution pipelines and two pumping stations, supplying sustainable water for the oil company’s onshore operations.

“The UAE established its name as the leader for knowledge-based, future-focused economic strategies and a leader in combating climate change and promoting water positivity,” said Rami Ghandour, Metito managing director.

“Being a global hub for innovations and sustainable practices, this mega project is testament of how capitalising on technology can revolutionise industry norms and practices to best preserve valuable water resources and the environment.”

ADNOC,TAQA cooperation

Meanwhile, ADNOC and TAQA are collaborating on several projects as part of the UAE’s broader strategy to raise the output of hydrocarbons while at the same time reducing planet-warming emissions by 2050.

Last September, ADNOC and TAQA closed their $3.8bn strategic project to decarbonise the Abu Dhabi-based oil firm’s offshore production operations. The initiative is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 per cent and replace existing offshore gas turbine generators with more sustainable power sources.

ADNOC, TAQA and Abu Dhabi wealth fund Mubadala said in December 2022 that they would all become shareholders in Masdar. TAQA is the biggest shareholder in Masdar’s solar and wind power business with a 43 per cent shareholding, Mubadala retained its 33 per cent while ADNOC is the main partner in the company’s green-hydrogen unit with a 24 per cent.

TAQA is also expanding into electric vehicle (EV) infrastructure following the formation of a mobility joint venture, E2Go, with ADNOC Distribution to build and operate charging stations in Abu Dhabi.

Read: Abu Dhabi’s ADNOC, TAQA and Mubadala complete deal to acquire Masdar stakes

Image credit: ADNOC Group

You might also like


© 2021 MOTIVATE MEDIA GROUP. ALL RIGHTS RESERVED.

Scroll To Top