ADNOC, TAQA partner to invest $2.4bn in water supply project in Abu Dhabi

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have unveiled plans for a groundbreaking investment project worth up to $2.4 billion (AED 8.8 billion).

This strategic initiative aims to ensure a sustainable water supply project for ADNOC’s onshore operations, further solidifying their roles as responsible energy leaders and demonstrating their commitment to driving long-term value through sustainable initiatives.

The project’s centerpiece will be the establishment of a state-of-the-art seawater treatment facility and 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 with this centralized facility, the project is expected to reduce water injection-related energy consumption by an impressive 30%. Moreover, the facility will be powered entirely by clean energy sources, with 100% of its power coming from the grid.

ADNOC and TAQA Partner to Invest $2.4 Billion in Sustainable Water Supply Project for Onshore Operations in Abu Dhabi (Photo Courtesy: ADNOC Group)

Abdulmunim Al Kindy, ADNOC Upstream Executive Director, said: “We are delighted to partner with TAQA and other industry leaders in this strategic project that will reduce our environmental footprint and unlock significant value as we continue to decarbonize and future proof our operations. The project will enhance our onshore energy efficiency by replacing less-efficient high-salinity, deep aquifer water systems with a centralized seawater treament facility and transportation network. With a substantial portion of the project value flowing back into the UAE economy, this landmark initiative will further stimulate economic and industrial growth and create commercial opportunities for the private sector, in line with the UAE Leadership’s wise directives.”

In this joint venture, ADNOC and TAQA will collectively hold a majority stake of 51% (25.5% each) in the Project Company. The remaining 49% stake has been awarded to a consortium led by Orascom Construction and Metito. The Consortium will assume responsibility for securing project financing during the construction phase and will execute the project under a build, own, operate, and transfer (BOOT) model. After 30 years of operation, full ownership of the project will be transferred back to ADNOC.

Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, said: “As a champion for low carbon power and water, TAQA is pleased to partner again with ADNOC, this time to advance the UAE’s sustainability goals by providing treated seawater for ADNOC’s onshore operations. As a major utility, TAQA is especially committed to partnerships like this that use our expertise to help drive environmental stewardship while maintaining water security and supporting economic growth.”

Under ADNOC’s successful In-Country Value (ICV) program, over 60% of the project’s value will flow back into the UAE’s economy throughout the development and operation phases. This serves to stimulate economic growth and enhance local industries.

Once completed, the project will deliver an impressive capacity of more than 110 million imperial gallons per day (MIGD) of nano-filtered seawater. This water will be transported through an extensive network of 75 kilometers of pipelines and distributed across more than 230 kilometers of distribution pipelines. Two pumping stations will facilitate the efficient supply of sustainable water to ADNOC’s onshore operations.

ADNOC and TAQA’s strategic investment in this cutting-edge project underscores their unwavering dedication to sustainable practices and their determination to forge a future where responsible energy solutions are at the forefront.