ADNOC, TAQA announces financial close of $2.2bn on Sustainable Water Supply Project

25 September 2023
ADNOC, TAQA announces financial close of $2.2bn on Sustainable Water Supply Project

ADNOC and Abu Dhabi National Energy Company PJSC (TAQA) have successfully completed the financial closing of their $2.2 billion (AED 8.3 billion) strategic project to provide sustainable water supply for ADNOC’s onshore operations.

This strategic investment between two Abu Dhabi energy giants 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, furthering ADNOC’s efforts to decarbonize, transform and future proof its business.

A consortium comprised of Orascom Construction and Metito (the Consortium) will construct a centralized world-class seawater treatment facility and transportation and distribution network.

ADNOC and TAQA own a joint 51% majority stake (25.5% each) with the Consortium owning the remaining 49% stake in the project company, that 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.

The project will be financed by a group of nine local and international banks, including First Abu Dhabi Bank (FAB), Gulf International Bank (GIB), Natixis, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB), Commercial Bank of Dubai (CBD), Emirates NBD (ENBD), Emirates Development Bank (EDB) and Warba Bank through a combination of commercial and Islamic finance facilities. The balance of the project cost will be provided by the project sponsors in accordance with their equity shares.

Replacing the current high-salinity, deep aquifer water systems at the fields, the project is expected to reduce water injection-related energy consumption by up to 30%. Connected to the grid, the project is expected to receive 100% of its power from clean energy sources.

The project will deliver more than 110 million imperial gallons per day (MIGD) of nano filtered seawater through 75 kilometers of transportation and over 230 kilometers of distribution pipelines and two pumping stations, supplying sustainable water for ADNOC’s onshore operations.