UAE Focus

The new project will link Adnoc’s offshore facilities to ADPower’s onshore electricity grid.

The new project will link Adnoc’s offshore facilities to ADPower’s onshore electricity grid.

Tender issued for sub-sea power network

June 2020

Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi Power Corporation (ADPower) have issued a joint tender for a first-of-its-kind project in the Middle East and North Africa (Mena) region.

The joint tender sets out to develop and operate the region’s first high-voltage, direct current (HVDC) sub-sea transmission system that will connect Adnoc’s offshore production facilities to ADPower’s onshore electricity grid using state-of-the-art technology, a Wam news agency report said, quoting Adnoc.

Requests for proposal have been sent to international companies that have the requisite experience to partner with Adnoc and ADPower on this important infrastructure project for Abu Dhabi. The transmission system will comprise two independent sub-sea HVDC transmission links and converter stations that will connect to ADPower’s onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (Transco) – and provide a total installed capacity of 3,200 megawatts (MW). Commercial operation is expected in 2025.

This significant capital project will be funded through a special purpose vehicle jointly owned by Adnoc (30 per cent), ADPower (30 per cent) and selected developers and investors (40 per cent). The project is to be executed on a build, own, operate and transfer (Boot) basis. The successful bidders, alongside Adnoc and ADPower, will develop and operate the transmission system, with the entire project being returned to Adnoc at the end of the transmission agreement.

The project is expected to reduce the carbon footprint of Adnoc’s offshore facilities by up to 30 per cent through ADPower’s efficient onshore power production. It also offers power supply cost optimisation potential for Adnoc’s offshore facilities and will drive operational efficiency and system reliability by replacing the existing offshore localised gas turbine generators with diverse, more efficient and environmentally sustainable sources of energy, including renewable and nuclear power.

The project also offers potential for Adnoc to more effectively utilise its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing Adnoc to generate additional revenue.




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