Abu Dhabi National Oil Company and Abu Dhabi National Energy Company have closed their $3.8 billion strategic projects aimed at powering and decarbonizing Adnoc's offshore production operations.

A consortium comprising Korea Electric Power, Kyushu Electric Power Company and EDF to build, own, operate and transmit the HVDC subsea transmission system together with Adnoc and Taqa, the two Abu Dhabi companies said in a joint statement to the Abu Dhabi Stock Exchange. stated in the statement. A group of companies led by Kepco jointly holds a 40% stake in the project on a BOOT basis, with Adnoc and Taqa each owning 30%. The entire project will be returned to Adnoc after 35 years of operation. The cost of the project is higher given the higher interest rates at the financial close, compared to $3.6 billion when it was originally announced in December 2021.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced, said Adnoc has once again demonstrated its ability to successfully structure and close a bold and progressive deal that will help ensure our low carbon future as we step up efforts to make our Decarbonize business. Adnoc's Technology and Managing Director and Group Chief Executive Officer. As the energy transition partner of choice, Adnoc will continue to work with our partners to advance practical and commercially viable solutions. The transmission system, with a total installed capacity of 3.2 GW, includes two independent subsea HVDC transmission lines and converter stations, and will be connected to Taqa's onshore grid - operated by its subsidiary Abu Dhabi Transmission and Dispatching Company.

With construction starting earlier in 2022, commercial operations of the project are expected to begin in 2025, the statement said. The project also offers Adnoc the potential to use its abundant natural gas more efficiently for higher-value purposes, allowing the company to generate additional revenue. Mohamed Al Suwaidi, Chairman of Taqa, said that reaching financial settlement is an important milestone for this unique project, which will allow Taqa to safely and efficiently supply low-carbon energy to Adnoc's offshore facilities through Transco's power grid system.

More than half of the value of the project, which aims to strengthen Adnoc and Taqa's position in supporting the UAE's strategic initiative to achieve net zero by 2050, will flow back into the UAE economy under Adnoc's domestic value scheme. It will also attract large-scale investments in the UAE and Adnoc from global energy companies, strengthening Adnoc's role in sustainable investment and value creation in Abu Dhabi and the UAE.

The joint investment of the consortium, commercial lenders and export credit agencies generated more than $3 billion in foreign direct investment, underscoring the UAE's position as a trusted global investment destination.

Dr Al Jaber said the region's first innovative projects are driving responsible and sustainable value creation in Abu Dhabi, further cementing the UAE's position as a trusted and preferred investment destination for global capital.Editor/XingWentao