The $3.8 billion subsea transmission project, which will aid in the decarbonization of the energy producer’s offshore activities, has reached its financial close, according to state-owned Abu Dhabi National Oil Co. and Abu Dhabi National Energy Co. (commonly known as TAQA).
First announced last year, the 3.2GW high-voltage, direct current (HVDC-VSC) transmission project will be operated by TAQA’s subsidiary Abu Dhabi Transmission and Despatch Company (TRANSCO).
The project’s commercial operation is expected to start in 2025. It is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30%, as existing offshore gas turbine generators will be replaced with more sustainable power sources, the Abu Dhabi energy companies said in a joint statement.
The transmission project is being funded through a special purpose vehicle (SPV) jointly owned by ADNOC (30%), TAQA (30%), and a consortium of Korea Electric Power Corporation (KEPCO), Kyushu Electric Power, and Électricité de France (EDF), which will hold a combined stake of 40% in the project
Combined investment from the consortium, commercial lenders and export credit agencies yielded more than $3 billion in foreign direct investment.
The partnership will construct, acquire, run, and transfer the cutting-edge transmission system, returning the entire project to ADNOC after 35 years of service. Under the very successful In-Country Value (ICV) initiative of ADNOC, more than 50% of the project’s value will be reinvested in the UAE’s economy.
