Abu Dhabi receives bids for subsea transmission project
UAE, Abu Dhabi: State oil company Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi Power Corporation (ADPower) have received proposals for a multi-billion high-voltage sub-sea transmission project to connect Adnoc’s offshore oil and gas production facilities to ADPower’s onshore national electricity grid.
Energy & Utilities reported in April that Adnoc and ADPower had launched a joint tender for the high-voltage sub-sea transmission project, the first of its kind in the Middle East and North Africa region.
According to sources close to the project, at least six proposals were submitted for the scheme. The following groups are believed to have submitted bids: Kepco, Elia Grid, Kansai Electric, State Grid China, Southern Power Grid, and Terna.
The use of power generated onshore is expected to reduce Adnoc’s offshore carbon footprint by up to 30 %, with a significant amount of Abu Dhabi’s energy to be provided by renewable energy and nuclear power in the coming years.
“This project will meet our future offshore power needs, even as our fields mature, using diverse and sustainable sources,” Yaser Saeed Al-Mazrouei, Adnoc Upstream executive director, said in April when the tender was launched. “It will enable Adnoc to utilise the natural gas currently used to power our offshore facilities for higher-value purposes.”
The project will be developed by a special purpose vehicle in which the successful developers from the tender will hold a 40 % stake, with Adnoc and ADPower to each hold a 30 % holding.
The scheme will be developed under a build-own-operate and transfer model, with ownership of the project to be transferred back to Adnoc at the end of the concession agreement.
The project is due to be commissioned in 2025.
Source: Energy & Utilities