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ADNOC and ADPower launch joint tender for subsea power transmission network

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Oilfield Technology,


ADNOC and Abu Dhabi Power Corp. (ADPower) have announced the issuance of a joint tender for the development and operation of the Middle East and North Africa's (MENA) first high-voltage, direct current (HVDC) subsea transmission system, that will connect ADNOC’s offshore production facilities to ADPower’s onshore electricity grid.

The project is expected to reduce the carbon footprint of ADNOC’s offshore facilities by up to 30% through ADPower’s efficient onshore power production. It also offers power supply cost optimisation potential for ADNOC’s offshore facilities and will replace the existing offshore localised gas turbine generators with diverse, more efficient and environmentally sustainable sources of energy, including renewable and nuclear power.

The project also offers 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 for ADNOC and Abu Dhabi.

Commenting on the tender issuance, Yaser Saeed Al Mazrouei, ADNOC Upstream Executive Director, said: “We are very pleased to partner with ADPower on this innovative project that is a logical result of ADNOC’s transformation journey, directly supporting our value creation and sustainability strategy as well as our objective to remain one of the world’s lowest-cost oil producers and lowest-carbon emitters in our industry. This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources. It will lower ADNOC and the UAE’s carbon footprint, whilst at the same time enabling ADNOC to utilise the natural gas currently used to power our offshore facilities for higher-value purposes. Equally, the project will deliver operational expenditure reductions in the long run as well as lasting strategic benefits as we continue to drive sustainable value and responsible investment opportunities that stimulate economic growth for Abu Dhabi and the UAE in the current market environment.”

Omar Alhashmi, Executive Director – Asset Management at ADPower, said: “As we continue to accelerate the transformation of Abu Dhabi’s water and electricity sector, ADPower is pleased to partner with ADNOC on this important, innovative, large-scale effort. Working together, we are reinforcing Abu Dhabi’s global position as we implement this first-of-a-kind mega project that will not only create synergy between two critical industries, but drive the Emirate’s economic growth through long-term value creation.”

Requests for proposal have been sent to international companies that have the requisite experience to partner with ADNOC and ADPower. The transmission system will comprise two independent subsea HVDC transmission links and converter stations that will connect to ADPower’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO) – and provide a total installed capacity of 3200 megawatts. Commercial operation is expected in 2025.

This significant capital project will be funded through a special purpose vehicle jointly owned by ADNOC (30% stake), ADPower (30% stake) and the selected developers and investors (40% stake). The project is to be executed on a build, own, operate and transfer (BOOT) basis. The successful bidders, alongside ADNOC and ADPower, will develop and operate the transmission system, with the full project being returned to ADNOC at the end of the transmission agreement.

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/27042020/adnoc-and-adpower-launch-joint-tender-for-subsea-power-transmission-network/

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