State-owned ADNOC, an energy and petrochemicals group, and Abu Dhabi National Energy Company (TAQA), a utilities and energy company headquartered in Abu Dhabi, have completed the financial close of a sustainable water supply project.
The investment, valued at US$2.2 billion, 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 project will be financed through a combination of conventional commercial and Islamic finance facilities, from a group of nine local and international banks, namely Abu Dhabi Islamic Bank; Warba Bank; Gulf International Bank; First Abu Dhabi Bank; Natixis; Abu Dhabi Commercial Bank; Commercial Bank of Dubai; Emirates NBD; and Emirates Development Bank.
Orascom Construction and Metito will construct a centralized seawater treatment facility along with a transportation and distribution network. ADNOC and TAQA jointly own a 51% majority stake (at 25.5% each), while Orascom and Metito own the remaining 49%. The full project will be transferred to ADNOC after 30 years of operation.
The balance of the project cost will be provided by the project sponsors in accordance with their equity shares. Over 60% of the value of the project is expected to flow back into the UAE’s economy, a statement read.
The project is expected to replace the current high salinity, deep aquifer water systems in the fields, and reduce water injection-related energy consumption by up to 30%. It is also expected to receive 100% of its power from clean energy sources.
“This strategic sustainable investment is [a] further example of how ADNOC is transforming, decarbonizing and future-proofing our operations as we fully embrace the energy transition,” said Abdulmunim Al Kindy, ADNOC’s upstream executive director.