ADNOC and ADPower team up on subsea HVDC links
ADNOC and ADPower have issued a joint tender to develop and operate the MENA region’s first HVDC subsea transmission system.
The system will connect ADNOC’s offshore production facilities to ADPower’s onshore electricity grid.
The project should as a result reduce the carbon footprint of ADNOC’s offshore facilities by up to 30 per cent.
The transmission system will comprise two independent subsea HVDC transmission links and converter stations, operated by ADPower’s TRANSCO unit.
It will provide a total installed capacity of 3,200 megawatts.
It also offers power supply cost optimization potential for ADNOC’s offshore facilities.
Namely, it will replace the existing offshore localized gas turbine generators with environmentally sustainable sources of energy, including renewable and nuclear power.
The project further offers potential for ADNOC to more effectively utilize its rich gas, currently used to power the offshore facilities.
ADNOC and ADPower are also looking to team up with international companies that have the experience in such infrastructure projects.
The project funding will go through a special purpose vehicle jointly owned by ADNOC (30 per cent stake), ADPower (30 per cent stake) and the selected developers and investors (40 per cent stake).
The project execution is on a build, own, operate and transfer (BOOT) basis.
The successful bidders, alongside ADNOC and ADPower, will develop and operate the transmission system.
However, the full project should return to ADNOC at the end of the transmission agreement.
Commercial operation should start in 2025, according to ADNOC.