ADNOC, TAQA close $2.2bn financing for water project
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ADNOC, TAQA close $2.2bn financing for water project

ADNOC, TAQA close $2.2bn financing for water project

The project is being financed by a group of nine local and international banks, through a combination of commercial and Islamic finance facilities

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ADNOC, TAQA secure financing for $2.2bn water project

ADNOC Group and the Abu Dhabi National Energy Company (TAQA) have secured funding for a $2.2bn (Dhs8.3bn) project to provide sustainable water supply for ADNOC’s onshore operations.

The project, which was unveiled in May, entails developing and operating facilities to sustainably treat and supply seawater for ADNOC’s operations at the Bab and Bu Hasa fields in Abu Dhabi.

The investment is set to boost ’s decarbonisation efforts while transforming and future-proofing the energy giant’s business.

The Abu Dhabi-based oil major and TAQA will jointly hold a 51 per cent majority stake (25.5 per cent each) in the project and the remaining 49 per cent stake has been awarded to a consortium comprised of Orascom Construction and Metito.

“The consortium will develop the project under a build, own, operate and transfer (BOOT) model, with the full project being transferred to ADNOC after 30 years of operation,” ADNOC and TAQA said in a bourse filing.

The project is being financed by a group of nine local and international banks, through a combination of commercial and Islamic finance facilities.

The banks to finance the project are First Abu Dhabi Bank, Gulf International Bank, Natixis, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Emirates NBD, Emirates Development Bank and Warba Bank.

The balance of the project cost will be provided by the project sponsors in accordance with their equity shares.

“This strategic sustainable investment is a further example of how ADNOC is transforming, decarbonising and future-proofing our operations as we fully embrace the energy transition,” said Abdulmunim Al Kindy, ADNOC Upstream executive director.

“As we accelerate our transformational journey to a lower-carbon future, this innovative project will equip our onshore operations with energy-efficient water supply, significantly reducing our carbon footprint.”

ADNOC accelerates decarbonisation

The project, which will replace the current high-salinity, deep aquifer water systems at the Bab and Bu Hasa fields, is expected to reduce water injection-related energy consumption by up to 30 per cent. It is also expected to receive 100 per cent of its power from clean energy sources.

“The collaboration of industry leaders TAQA and ADNOC allows us to deliver a sustainable water project that not only reduces energy consumption but also bolsters energy security,” said Jasim Husain Thabet, group CEO and managing director at TAQA.

The project will deliver more than 110 million imperial gallons per day (MIGD) of nano-filtered seawater. Its transportation network includes 75 km of transportation and more than 230 km of distribution pipelines and two pumping stations.

The initiative is expected to further stimulate economic and industrial growth and create commercial opportunities for the private sector in the UAE, as a substantial portion of the project value will flow back into the local economy.

The two entities said more than 60 per cent of the value of the project is expected to flow back into the UAE’s economy, in line with the objectives of ADNOC’s In-Country Value (ICV) program.

Read: ADNOC Gas signs multimillion LNG supply deal with PetroChina

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