ADNOC and TAQA Collaborate on $2.4 Billion Sustainable Water Supply Project

Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi National Energy Company (TAQA) have unveiled an ambitious project that will require an investment of approximately $2.4 billion. The initiative aims to construct a sustainable water supply system for ADNOC's onshore operations in Abu Dhabi. As part of this infrastructure endeavor, a centralized seawater treatment facility and transportation network will be established to serve the Bab and Bu Hasa fields, both of which have a combined production capacity of over 1 million barrels per day (B/D).

ADNOC's Bu Hasa field, its largest onshore asset, currently produces 650,000 B/D. In 2021, ADNOC announced plans to invest more than $300 million in a multiyear project to install remotely controlled production systems in up to 260 conventional and unconventional wells within the Bu Hasa field. Additionally, the Bab field, with a capacity exceeding 450,000 B/D, is undergoing an enhanced oil recovery project that aims to increase its production capacity to 485,000 B/D.

This significant capital program for both fields aligns with ADNOC's broader strategy to elevate the UAE's production from 4 million to 5 million B/D by 2030.

The joint project between ADNOC and TAQA intends to replace the existing high-salinity, deep aquifer water systems, aiming to reduce water injection-related energy consumption by up to 30%. Notably, the entire project will rely on 100% renewable energy sourced from the UAE's grid, emphasizing its commitment to sustainability.

Upon completion, the project will provide over 110 million gallons per day (gal/D) of treated seawater through an extensive network of transportation and distribution pipelines spanning more than 300 kilometers. ADNOC and TAQA have emphasized that over 60% of the project's value during the development and operation phases will be reinvested in the UAE's domestic economy, showcasing their commitment to local growth and prosperity.

Under the partnership agreement, ADNOC and TAQA will jointly hold a 51% stake (25.5% each) in the project, while the remaining share will be owned by a consortium utilizing a build, own, operate, and transfer scheme. After 30 years of operation, the project will be returned to ADNOC.

Notably, ADNOC and TAQA have previously collaborated in 2021 to establish a joint venture aimed at generating 30 gigawatts (GW) of renewable energy in the UAE by 2030. This venture also focuses on producing and storing green hydrogen.

In 2022, ADNOC and TAQA separately announced plans to invest $3.8 billion to power and decarbonize ADNOC's offshore production operations, showcasing their ongoing commitment to sustainable practices within the energy sector.