ADNOC, TAQA to decarbonise offshore production
SUMMARY
The partners envision laying a subsea line to link the UAE grid to offshore installations.
By Daniel GraeberPOSTED IN:
Abu Dhabi National Oil Co. (ADNOC) and the Abu Dhabi National Energy Co., known as TAQA, announced plans December 22 to invest $3.6bn to decarbonise offshore production using electricity.
The partners envision a 3.2-GW transmission system that will link TAQA’s onshore grid to offshore production centres. The project itself would be developed by a special purpose vehicle (SPV) consisting of ADNOC and TAQA, alongside Korea Electric Power Corp., Japan’s Kyushu Electric Power Co. and Electricite de France.
Parties to the arrangement expect the new system could reduce ANDOC’s offshore carbon footprint by as much as 30% by substituting offshore gas turbines with onshore electricity.
“As ADNOC embraces the energy transition, this bold and progressive project will replace our existing offshore local power supply with cleaner and more sustainable onshore power sources, significantly reducing our carbon footprint while enabling additional cost savings,” said Yaser Saeed Almazrouei, the upstream director at ADNOC.
Like many of its peers, ADNOC approved a new energies strategy, under which it will develop renewable energy, hydrogen and other low-carbon fuels. It has an established partnership with UAE power company EWEC to make the grid fully powered by nuclear and solar energy.
The offshore power consortium will hand over the operational reins to ADNOC after 35 years. More than half of the project’s value, meanwhile, is expected to be funnelled back into the Emirati economy.
Construction begins next year with the goal of starting commercial operations in 2025.
