The Abu Dhabi Offshore Power Transmission Company has obtained more than $3.2 billion in funding from banks and export credit organisations for an offshore electricity transmission project, according to a statement from the Japan Bank for International Cooperation.
The financing is to build and operate a high-voltage direct current offshore power transmission system linking two offshore production facilities owned by oil giant Abu Dhabi National Oil Company (ADNOC) to Abu Dhabi’s onshore grid.
Japan Bank for International Cooperation (JBIC) provided $1.201 billion for the direct current transmission project. The remaining $2 billion was financed by Export-Import Bank of Korea, Mizuho, Sumitomo Mitsui Banking Corporation , BNP Paribas Fortis and Standard Chartered , JBIC said in the statement on Wednesday.
“The project will receive payment of power transmission charges from ADNOC for 35 years after the construction has been completed,” JBIC said.
ADNOC and JBIC signed a memorandum of understanding in November to cooperate on decarbonization, energy transmission and energy efficiency.
According to JBIC, the project was in keeping with the UAE’s pledge to achieve net zero carbon dioxide emissions by 2050, made in October of last year.
