THE UNITED ARAB EMIRATES – Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy (TAQA) are joining forces for a $3.6 billion subsea transmission system project to power the former’s offshore production operations.

The 3.2 GW HVDC-VSC transmission project will be developed and operated in the Middle East and North Africa (MENA) region. It will support the UAE’s ambition to become net-zero by 2050, reports NS Energy.

According to ADNOC, the subsea transmission system will have two independent subsea HVDC links and converter stations that will connect to an onshore power grid, that is operated by TAQA’s subsidiary Abu Dhabi Transmission and Despatch Company (TRANSCO).

Construction on the project is likely to start next year, while the commercial operation is targeted to be achieved in 2025.

Funding of the transmission project will be made through a special purpose vehicle (SPV) to be jointly owned by ADNOC (30%), TAQA (30%), and a consortium of Korea Electric Power Corporation (KEPCO), Kyushu Electric Power, and Électricité de France (EDF).

The consortium, which will be led by KEPCO, will hold a combined stake of 40% in the project on a build, own, operate and transfer basis.

It will develop and operate the subsea transmission system alongside ADNOC and TAQA. The full project will be returned to ADNOC after 35 years of operation.

The project is expected to enable ADNOC to use its rich gas for higher-value purposes. Currently, the company is using gas for powering its offshore facilities.

According to ADNOC, the transmission project is subject to relevant regulatory approvals.

Source: NS Energy