Adnoc and ADPower issue tender for subsea transmission system
Invitations to build and run the networks have been sent to international oil companies
Abu Dhabi National Oil Company and ADPower issued a joint tender for a subsea transmission system connecting offshore oil facilities to the onshore electricity grid.
The joint tender will be for the development and operation of the first high-voltage, direct current subsea system of its kind in the region, the company said.
Requests for proposal have been dispatched to international oil companies with expertise in the field. The project will comprise two independent subsea direct current transmission links and converter stations that connect to ADPower's onshore electricity grid.
The grid is operated by the firm's subsidiary, Abu Dhabi Transmission and Despatch Company (Transco) and has a total installed capacity of 3.2GW. The commercial operation of the scheme is expected in 2025.
"This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources," said Yasser Saeed Al Mazrouei, Adnoc upstream executive director.
The project is also expected to lower Adnoc's carbon footprint in line with the UAE's drive to reduce emissions, while at the same time allowing the firm to use natural gas used to power offshore facilities for "higher-value purposes", he added.
The scheme would allow for a 30 per cent reduction in the carbon footprint of offshore facilities and allow the operators to optimise power supply costs, a statement said.
Operational efficiency will also be achieved by replacing existing localised, offshore gas turbine generators with more efficient, diverse and sustainable sources of energy, including renewables and nuclear, the companies said.
The project will be financed through a special purpose vehicle in which Adnoc and ADPower will each have 30 per cent stakes. The remaining 40 per cent will be owned by selected developers and investors. The scheme will be executed on a build, own, operate, and transfer basis. Successful bidders will develop and operate the transmission grid alongside the two companies. The completed project will be handed over to Adnoc at the end of the transmission agreement period.
ADPower owns most of the power and water assets in Abu Dhabi. In February, the company submitted an offer to transfer most of its water and electricity generation, transmission, and distribution companies portfolio to the Abu Dhabi National Energy Company, also known as Taqa. The transaction, which has been approved by Taqa's board, is effectively a reverse takeover which will create a new, regional utilities champion.
The combined entity will have total assets worth Dh200 billion, with more than 85 per cent of its revenue coming from regulated and contracted businesses.
The deal with Taqa is part of ongoing efforts in the UAE capital to consolidate assets. The emirate has already seen large-scale mergers in the banking and finance industry following the slide in oil prices in 2016.
The deal would make the new entity one of the top utility companies in the Europe, Middle East, and Africa region and also make Taqa one of the largest listed companies on the Abu Dhabi stock market.
Updated: April 27, 2020 03:04 PM