The project comprises two subsea HVDC transmission links and converter stations that will ADNOC’s offshore production facilities to ADPower’s onshore electricity grid
New subsea power transmission network project planned in the Middle East. (Credit: Abu Dhabi National Oil Company)
Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi Power Corporation (ADPower) have jointly launched a tender for what it claims to be the first high-voltage, direct current (HVDC) subsea transmission system in the Middle East & North Africa (MENA) region.
The tender seeks proposals from potential international bidders to build and operate the HVDC subsea transmission system, with an installed capacity of 3,200MW.
Initiated by ADNOC as part of its plan to drive efficiencies and boost resilience, the project is expected to reduce ADNOC’s offshore facilities CO2 footprint by up to 30% through ADPower’s efficient onshore power production.
In addition to providing power supply cost optimisation potential for ADNOC’s offshore facilities, the project will help in ensuring system reliability by replacing the existing offshore localised gas turbine generators with sustainable energy.
Subsea transmission project to be commissioned in 2025
Scheduled for completion in 2025, the project comprises two independent sub-sea HVDC transmission links and converter stations that will connect ADNOC’s offshore production facilities to ADPower’s onshore electricity grid.
ADNOC upstream executive director Yaser Saeed Al Mazrouei said: “This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources.
“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.”
The project, which will be implemented on a build, own, operate and transfer (BOOT) basis, will be funded through a special purpose vehicle, which is jointly owned by ADNOC (30% stake), ADPower (30% stake) and the selected developers and investors (40% stake).
ADPower asset management executive director Omar Alhashmi said: “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.”
Earlier this year, ADPower and Japan-based Marubeni have formed a consortium to develop the 2.4GW Fujairah F3 independent power producer project (Fujairah F3 IPP project) in the UAE.