ABU DHABI — Abu Dhabi National Oil Co. (ADNOC) and Abu Dhabi National Energy Co. PJSC (TAQA) have jointly announced their partnership in a groundbreaking sustainable water supply project valued at approximately $2.4 billion. The majority stake in the project will be held by ADNOC and TAQA, while a consortium will retain a 49% stake and take charge of project financing.
The consortium, comprising leading firms Orascom Construction and Metito, will oversee the construction phase and execute the project under a build, own, operate, and transfer (BOOT) model. Following 30 years of operation, the full control of the project will be transferred back to ADNOC, as specified in the agreement unveiled on Wednesday.
This transformative initiative aims to establish a centralized seawater treatment facility and a robust transportation network to support operations at the Bab and Bu Hasa fields in Abu Dhabi. By replacing the existing high-salinity, deep aquifer water systems at these fields, the project is projected to reduce water injection-related energy consumption by an impressive 30%. Additionally, the project will be seamlessly integrated into the grid and will draw power exclusively from clean energy sources.
Emphasizing its commitment to bolstering the domestic economy, ADNOC’s In-Country Value (ICV) program ensures that over 60% of the project’s value during both the development and operational phases will circulate back into the United Arab Emirates (UAE). This ambitious undertaking underscores the UAE’s dedication to advancing sustainable practices and fostering economic growth in the region.
The collaboration between ADNOC, TAQA, and the consortium of Orascom Construction and Metito marks a significant milestone in the pursuit of sustainable water management and renewable energy integration. By harnessing the expertise of multiple stakeholders, this pioneering project sets a benchmark for responsible resource utilization and environmental stewardship in the global energy sector.
