ADNOC and TAQA announce $2.4b project for sustainable water supply to onshore operations

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) announced on Wednesday the award of a strategic investment project estimated at up to $2.4 billion (AED 8.8 billion) to provide sustainable water supply for ADNOC’s onshore operations, reinforcing ADNOC and TAQA’s position as responsible energy leaders and underscoring their efforts to drive sustainable initiatives that deliver long-term value.

The project will develop a centralised world-class seawater treatment facility and transportation network for operations at the Bab and Bu Hasa fields in Abu Dhabi, the companies said.

This project will replace the current high-salinity, deep aquifer water systems at the fields, thereby reducing water injection related energy consumption by up to 30%. The project will be connected to the grid and will receive 100% of its power from clean energy sources.

ADNOC and TAQA will jointly hold a 51% majority stake (25.5% each) in the Project Company and the remaining 49% stake has been awarded to a consortium comprised of Orascom Construction and Metito. The consortium will arrange the project financing for the construction phase and develop the project under a build, own, operate and transfer (BOOT) model, with the full project being returned to ADNOC after 30 years of operation, ADNOC said.

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 decarbonise 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 project will deliver more than 110 million imperial gallons per day (MIGD) of nano filtered seawater through 75 kilometers of transportation and over 230 kilometers of distribution pipelines and two pumping stations, supplying sustainable water for ADNOC’s onshore operations.