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UAE Announces Project to Decarbonise ADNOC's Offshore Production Operation

UAE announces project to decarbonize the offshore production operations of Abu Dhabi National Oil Company (ADNOC) (WAM)
UAE announces project to decarbonize the offshore production operations of Abu Dhabi National Oil Company (ADNOC) (WAM)
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UAE Announces Project to Decarbonise ADNOC's Offshore Production Operation

UAE announces project to decarbonize the offshore production operations of Abu Dhabi National Oil Company (ADNOC) (WAM)
UAE announces project to decarbonize the offshore production operations of Abu Dhabi National Oil Company (ADNOC) (WAM)

UAE announced a $3.6 billion strategic project to significantly decarbonize the offshore production operations of Abu Dhabi National Oil Company (ADNOC).

The innovative project will see the development and operation of a first-of-its-kind high-voltage, direct current (HVDC-VSC) subsea transmission system in the MENA region.

It will power ADNOC's offshore production operations with cleaner and more efficient energy, delivered through the Abu Dhabi onshore power grid, owned and operated by Abu Dhabi National Energy Company (TAQA) transmission and distribution companies.

The project will be funded through a special purpose vehicle (SPV), a dedicated company that ADNOC and TAQA will jointly own with a 30 percent stake each.

It also includes a consortium comprised of Korea Electric Power Corporation (KEPCO), Japan's Kyushu Electric Power Co., and Électricité de France (EDF). Led by KEPCO, the consortium will hold a combined 40 percent stake in the project on a build, own, operate and transfer basis.

The project will strengthen the position of ADNOC and TAQA in driving and leading sustainability efforts and supporting the UAE' Net-Zero by 2050 Strategic Initiative'.

The development is expected to reduce the carbon footprint of ADNOC's offshore operations by more than 30 percent, replacing existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network.

The progressive and collaborative approach will also drive operational efficiencies and improve system reliability of energy supply while offering the potential for power supply cost optimization.

ADNOC Upstream Executive Director Yaser Saeed al-Mazrouei said that ADNOC is delighted to be collaborating again with TAQA.

"This first-of-its-kind project is a further example of how ADNOC is advancing practical and commercially viable solutions to secure a lower carbon future while driving significant foreign direct investment, and, in turn, cementing Abu Dhabi and the UAE's position as a trusted global investment destination."

TAQA's Group CEO and Managing Director, Jasim Husain Thabet, announced that TAQA is the recognized low carbon power and water champion of Abu Dhabi and one of the top five utilities in EMEA by market value.

"TAQA is pleased to again partner with ADNOC on such an important project that will contribute to the decarbonization of Abu Dhabi's energy industry in such an impactful way."

The transmission system with a total installed capacity of 3.2 Gigawatts (GW) and comprises two independent sub-sea HVDC links and converter stations that will connect to TAQA's onshore electricity grid – operated by its subsidiary, Abu Dhabi Transmission and Despatch Company (TRANSCO).

The project also offers the potential for ADNOC to more effectively utilize its rich gas – currently used to power the offshore facilities – for higher-value purposes, allowing ADNOC to generate additional revenue.

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China Eyes Electric Vehicle Manufacturing Opportunities in Saudi Arabia

Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)
Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)
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China Eyes Electric Vehicle Manufacturing Opportunities in Saudi Arabia

Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)
Chinese ambassador to Saudi Arabia (Asharq Al-Awsat)

China’s ambassador to Saudi Arabia, Chang Hua, expressed Beijing’s hopes to strengthen its partnership with the kingdom, especially in electric vehicle production and other industries.
Speaking to Asharq Al-Awsat, Hua condemned violations of Lebanon’s sovereignty and the targeting of civilians.
He called for immediate action to reduce tensions and prevent further escalation in the region.
“China is deeply shocked by the high civilian casualties from the conflict between Israel and Lebanon,” Hua said, urging the international community to work on calming the situation.
He emphasized that, no matter how things unfold, “China will always stand for justice and remain committed to peace and stability in the Middle East. We are ready to work with all parties to promote peace in the region.”
China’s Economic Growth
Hua highlighted China’s rise from a $30 billion economy to a $17.8 trillion one, making it the world’s second-largest economy and a leader in trade and industry.
He reiterated China’s goal to maintain high-level openness, push for high-quality economic development, and promote a multipolar world with fair global governance and inclusive economic globalization.
Saudi-China Relations
Hua described the partnership between Saudi Arabia and China as entering a new phase of deep development, congratulating Saudi Arabia on its 94th National Day.
He noted that Chinese Premier Li Qiang’s recent visit to Saudi Arabia has boosted bilateral relations and strengthened the comprehensive strategic partnership, driving it towards a more stable and prosperous future.
The ambassador stressed the need to expand trade and investment between the two countries and highlighted the upcoming “Saudi-Chinese Cultural Year 2025” as a key event.
Hua also pointed out that Saudi Crown Prince Mohammed bin Salman values the strong and historic relationship between the two nations.
The Crown Prince looks forward to further aligning Saudi Vision 2030 with China’s Belt and Road Initiative, expanding cooperation in energy, investment, and culture.
Hua noted that China is Saudi Arabia’s largest trading partner, with bilateral trade exceeding $100 billion in the past two years. He also mentioned the recent currency swap agreement between the two countries, which has helped boost trade and investment.
New Developments in Saudi-China Relations
According to Hua, the cooperation between the two nations has grown significantly, particularly in the automotive, renewable energy, and tourism sectors.
In 2023, Saudi imports of Chinese cars reached $4.12 billion, driven by companies like Changan, Geely, MG, Chery, Great Wall, Hongqi, GAC, and BYD, which have opened branches in the kingdom.
Discussions are ongoing about building local manufacturing plants. China exported 4.91 million vehicles in 2023, making it the largest car exporter globally for the first time, including 1.203 million electric vehicles, a 77.6% increase from the previous year.
Hua noted that Saudi Vision 2030 aims for electric vehicles to account for at least 30% of all cars in Riyadh by 2030, and he expressed optimism about enhancing collaboration in automotive manufacturing.
Chinese companies are also increasingly involved in Saudi Arabia’s renewable energy sector. They are working on multiple solar projects, including the Al Shuaibah photovoltaic plant, the largest of its kind in the world, with a capacity of 2.6 gigawatts.
In July 2023, the Renewable Energy Localization Company (RELC), backed by the Saudi Public Investment Fund, signed agreements with three Chinese firms—Envision Technology Group, Jinko Solar, and TCL Zhonghuan—to establish joint ventures for high-efficiency solar cell production in Saudi Arabia.
These projects will focus on producing solar components, helping Saudi Arabia achieve its goal of sourcing 75% of renewable energy project components locally by 2030.
Hua also highlighted the increasing exchange of visits between citizens of both countries. In September 2023, China and Saudi Arabia signed a memorandum of understanding to facilitate group tourism, making the kingdom an official destination for Chinese tour groups.
Several Chinese travel agencies have begun offering packages to Saudi Arabia, and direct flights between the two countries are increasing. Saudi Airlines has expanded its routes, operating numerous weekly flights between Beijing, Shanghai, Shenzhen, Riyadh, and Jeddah.