ADNOC has unveiled a £2.7billion development for electrification of giant offshore oil and gas fields off Abu Dhabi.
A “first-of-its kind” subsea transmission network will be built, decarbonising production via fellow Emirati firm TAQA’s clean onshore power network and replacing existing offshore gas turbine generators with more sustainable power sources.
The electrification project is expected to cut ADNOC carbon emissions offshore by more than 30%, including from Upper Zakum, the world’s second-largest oil field.
ADNOC said the project is being carried out in support of the UAE’s aim of reaching net zero by 2050.
A dedicated company will fund the development, jointly owned by TAQA and ADNOC (30% stake each), and a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan’s Kyushu Electric Power Co. and Électricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40% stake in the project on a build, own, operate and transfer basis.
The consortium will develop and operate the project, which will be returned to ADNOC after 35 years.
Yaser Saeed Almazrouei, ADNOC upstream executive director, said: “As ADNOC embraces the energy transition, this bold and progressive project will replace our existing offshore local power supply with cleaner and more sustainable onshore power sources, significantly reducing our carbon footprint while enabling additional cost savings.
“This first-of-its-kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future, while driving significant foreign direct invesment, and, in turn, cementing Abu Dhabi and the UAE’s position as a trusted global investment destination.”
© Supplied by ADNOCConstruction is expected to begin in 2022 with commercial operation starting in 2025. It follows a competitive tender process which began in April 2020.
The transmission system will have a total installed capacity of 3.2 Gigawatts (GW) and comprise two independent subsea HVDC links and converter stations that will connect to TAQA’s onshore electricity grid.
The project also offers the potential for ADNOC “to more effectively utilise its rich gas” – currently used to power the offshore facilities – “for higher-value purposes”, allowing ADNOC to generate additional revenue, it said.
Jasim Husain Thabet, TAQA’s group CEO and managing director, said: “This first-of-its-kind project shows how the UAE continues to demonstrate its strong leadership and innovation in the global energy transition by bringing together critical players to boost sustainability credentials and maximizing the utilization of Abu Dhabi’s diverse and efficient energy mix.
“Decarbonisation continues to provide social and economic opportunities for collaboration and growth, which TAQA is actively pursuing through its strategic alliances and partnerships in the market.”