Adnoc and Abu Dhabi National Energy Company have announced a $2.4 billion project to provide sustainable water supply for Adnoc's onshore business as part of their decarbonization efforts.

The two companies stated in a statement to the Abu Dhabi Stock Exchange that the project will develop a centralized seawater treatment facility and transportation network for the operation of the Abu Dhabi Bab and BuHasa oil fields.

Adnoc and Taqa will jointly hold a majority stake of 51% in the project company, while the remaining 49% will be granted to a consortium composed of Orascom Construction and Metito. The consortium will arrange project financing during the construction phase and develop the project in a mode of construction, ownership, operation, and transfer.

The two companies stated that the entire project will be returned to Adnoc after 30 years of operation. Abdulunim Al Kindy, Executive Director of Adnoc Upstream, stated that this strategic project will reduce our environmental footprint and unleash significant value as we continue to decarbonize and operate towards the future. This project will improve our onshore energy efficiency by replacing inefficient high salinity deep aquifer water systems with centralized seawater treatment facilities and transportation networks. The two companies stated that this will reduce energy consumption related to water injection by up to 30%. Adnoc has taken multiple measures to reduce carbon emissions, aiming to reduce the intensity of greenhouse gas emissions by 25% by 2030.

In January 2023, the company announced that it would invest $15 billion in decarbonization projects by the end of this decade. The elements include clean energy, carbon capture use and storage (CCUS), further electrification of operations, carbon dioxide absorption technology, and energy efficiency. The company stated at the time that it would also take measures to continue implementing the zero conventional natural gas combustion policy. In December, National Energy Corporation also established a new low-carbon solutions and international growth business unit, which will focus on renewable energy, clean hydrogen, and CCUS, as well as international expansion of natural gas, liquefied natural gas, and chemicals. In September, Adnoc and Taqa also completed a $3.8 billion strategic project to provide power and decarbonization for Adnoc's offshore production business.

The two companies stated at the time that a consortium consisting of South Korean Electric Power Company, Kyushu Electric Power Company, and French Electric Power Company would work with Adnoc and Taqa to build, own, operate, and transfer a high-voltage direct current subsea transmission system. It is expected that this development project will reduce the carbon footprint of Adnoc's offshore business by more than 30%, replacing existing offshore gas turbine generators with more sustainable power sources from the Abu Dhabi onshore power grid.Editor/XingWentao