ADNOC and TAQA announced a strategic investment project to provide a sustainable water supply to ADNOC’s onshore operations worth up to $2.4 billion.
The project will reinforce ADNOC and TAQA as responsible energy leaders and will develop centralized world-class seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi
51% majority stake of the project will be hold by ADNOC and TAQA and the remaining 49% stake has been awarded to a consortium comprised of Orascom Construction and Metito (the “Consortium”).
The Consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer (BOOT) model, with the full project being returned to ADNOC after 30 years of operation.
Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said: “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 decarbonize and future proof our operations. The project will enhance our onshore energy efficiency by replacing less-efficient high-salinity, deep aquifer water systems with a centralized seawater treament facility and transportation network. 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, in line with the UAE Leadership’s wise directives.”
Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As a champion for low carbon power and water, TAQA is pleased to partner again with ADNOC, this time to advance the UAE’s sustainability goals by providing treated seawater for ADNOC’s onshore operations. As a major utility, TAQA is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”
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.