ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have concluded the financial closing of their strategic project to provide a sustainable water supply for ADNOC’s onshore operations.
This strategic investment between two prominent energy entities in Abu Dhabi involves the development and operation of facilities to sustainably treat and supply seawater for ADNOC’s operations at the Bab and Bu Hasa fields in Abu Dhabi. This project further strengthens ADNOC’s commitment to decarbonize, transform, and future-proof its business, ADNOC said on Monday in a press release.
A consortium consisting of Orascom Construction and Metito will construct a centralized, state-of-the-art seawater treatment facility, as well as a transportation and distribution network. ADNOC and TAQA jointly hold a majority stake of 51% (25.5% each), while the Consortium owns the remaining 49% stake in the project company. The project will be developed under a build, own, operate, and transfer (BOOT) model, with the full project being transferred to ADNOC after 30 years of operation.
The $2.2 billion (AED 8.3 billion) 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. The financing will be a combination of commercial and Islamic finance facilities, with the project sponsors contributing the remaining balance of the project cost based on their equity shares.
“This strategic sustainable investment exemplifies ADNOC’s commitment to transforming, decarbonizing, and future-proofing our operations as we fully embrace the energy transition,” said Abdulmunim Al Kindy, ADNOC Upstream Executive Director.
“We are delighted to collaborate with TAQA to deliver another innovative project that will generate long-term value for Abu Dhabi and the UAE. As we accelerate our journey toward a lower-carbon future, this groundbreaking project will equip our onshore operations with energy-efficient water supply, significantly reducing our carbon footprint,” he added.
Aligned with the objectives of ADNOC’s highly successful In-Country Value (ICV) program, over 60% of the project’s value is expected to contribute to the UAE’s economy.
Jasim Husain Thabet, Group Chief Executive Officer and Managing Director at TAQA, expressed his pleasure in achieving financial close on this significant project, which has made rapid progress since its inception.
“The collaboration between industry leaders TAQA and ADNOC enables the delivery of a world-class sustainable water project that not only reduces energy consumption but also enhances energy security,” Thabet said. “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 decarbonize their operations through the provision of sustainable water and power solutions and investment in critical infrastructure required for achieving net-zero emissions,” he noted.
The project aims to replace the existing high-salinity, deep aquifer water systems at the fields, resulting in an estimated reduction of up to 30% in water injection-related energy consumption. Additionally, the project will be connected to the grid and is expected to derive 100% of its power from clean energy sources.