Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (TAQA) have announced a significant investment project valued at approximately $2.4B. The initiative aims to establish a sustainable water supply project for ADNOC’s onshore operations, highlighting their commitment as responsible energy leaders and their focus on driving long-term value through sustainable endeavors.
The project will involve the development of a state-of-the-art seawater treatment facility and a transportation network to cater to the operations at Abu Dhabi’s Bab and Bu Hasa fields. This undertaking will replace the existing water systems sourced from deep aquifers with high salinity, thereby reducing energy consumption associated with water injection by up to 30%. Notably, the project will be connected to the grid and powered entirely by clean energy sources.
To facilitate the water supply project, ADNOC and TAQA will jointly hold a majority stake of 51% (25.5% each) in the Project Company. The remaining 49% stake has been awarded to a consortium comprising Orascom Construction and Metito (the Consortium), according to WAM.
The Consortium will be responsible for arranging project financing during the construction phase and will execute the project under a build, own, operate, and transfer (BOOT) model. After 30 years of operation, the full project ownership will be returned to ADNOC.
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 treatment facility and transportation network. With a substantial portion of the project value flowing back into the UAE economy, this landmark initiative will further stimulate economic and industrial growth and create commercial opportunities for the private sector, in line with the UAE Leadership’s wise directives.”
“More than 60% 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) program.”
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 initiative aims to provide a sustainable water supply to ADNOC’s onshore operations by delivering over 110 million imperial gallons per day (MIGD) of nano-filtered seawater. This will be accomplished through an extensive network comprising 75 kilometers of transportation pipelines, over 230 kilometers of distribution pipelines, two pumping stations, and other necessary infrastructure. The project’s objective is to ensure a consistent and reliable water source for ADNOC’s operations in an environmentally responsible manner.
