Sumitomo inks $200 million deal for first Middle East subsea transmission system
Sumitomo Electric Industries has received a limited notice to proceed (LNTP) from Samsung C&T Corporation to deliver a high-voltage direct current (HVDC) cable for what will be the first of its kind submarine HVDC network in the Middle East.
Under the $200 million deal, Sumitomo will deliver its 400 kV DC Cross-Linked Polyethylene (XLPE) cable technology for Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates (UAE).
The initial engineering work will be commenced under the LNTP, followed by a full contract award and financial investment decision this year.
System operation is expected to be started in 2025.
“It is a great honor for us to be selected as a HVDC cable supplier for this important project for UAE. As one of the leading players in the HVDC transmission industry, Sumitomo Electric is committed to supporting the creation of zero-carbon societies in the world with its extremely reliable and fault-free high voltage cable system technology,” said Yasuyuki Shibata, managing executive officer of Sumitomo Electric.
The new link, part of the strategic HVDC transmission system for the Abu Dhabi National Oil Company (ADNOC) Abu Dhabi National Energy Company PJSC (TAQA) Lightning Project, will allow bulk-power energy transmission between the converter station in Al Mirfa, in Abu Dhabi mainland, and that on the Al Ghallan artificial offshore island.
The project aims to decarbonize ADNOC’s offshore production operations, in a push to strengthen its position in driving sustainability efforts and support the UAE’s Net-Zero by 2050 Strategic Initiative.
With a capacity of 3.2 GW, the project comprising two HVDC links will be the most powerful power-from-shore solution in the MENA region to date, as well as the first HVDC power-from-shore solution outside Norwegian waters.
Swiss company Hitachi Energy will supply four converter stations, while Italy’s Prysmian is set to deliver the power cables.