Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company PJSC (TAQA) awarded a $3.6 billion contract to a consortium led by Korea Electric Power Corp. (KEPCO) for a subsea transmission system.
The project is to establish a high voltage direct current transmission system that will power ADNOC's offshore production operations with cleaner energy, delivered through the Abu Dhabi onshore power grid, according to ADNOC and KEPCO on Dec. 22.
The project is expected to cut the carbon emissions of ADNOC’s offshore operations by more than 30%, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network, the United Arab Emirates (UAE) state-run oil company said.
“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 ADNOC Upstream Executive Director Yaser Saeed Almazrouei.
Earlier this year, the UAE announced an ambition to achieve net-zero emissions by 2050.
TO START CONSTRUCTION 2022, COMMERCIAL OPERATION IN 2025The KEPCO-led consortium, which Japan’s Kyushu Electric Power Co. and Électricité de France (EDF) joined, will develop and operate the system alongside ADNOC and TAQA, with the full project being returned to ADNOC after 35 years of operation.
The construction is expected to begin next year with a schedule for commercial operation from 2025.
South Korea’s Samsung C&T Corp. and Belgium’s Jan De Nul NV are set to work on the design and construction of the subsea transmission system. South Korea’s state-run Export-Import Bank of Korea (KEXIM) provided financial supports, according to KEPCO.
KEPCO expected the project to help take the lead in the competition for power grid deals, which are expected to increase in Latin America and Central Asia.
Write to Ji-Hoon Lee at
lizi@hankyung.comJongwoo Cheon edited this article.
