ADNOC secures financing of up to $11bn for Hail & Ghasha project

Abu Dhabi National Oil Company (ADNOC) and its partners have successfully secured a structured financing transaction of up to AED40.4 billion (US$11 billion) to monetise Hail and Ghasha’s midstream future gas production.

The Ghasha concession, located offshore Abu Dhabi, is set to produce 1.8 billion standard cubic feet per day (bscfd) of gas. The non-recourse financing transaction, unique for an energy project of this scale and complexity, enables ADNOC to realise upfront value for its products at competitive rates.

In addition to providing immediate access to capital, the financing structure introduces an innovative commercial model that ring-fences midstream facilities and operations, which enables ADNOC and its partners (Eni S.p.A. and PTT Exploration and Production Public Company Limited) to raise low-cost funding while retaining strategic and operational control of the assets.

Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO, said: “This landmark transaction builds on ADNOC’s successful track record of global energy partnerships and unlocks capital to drive progress at Hail and Ghasha, one of the world’s most ambitious offshore gas projects.

“The exceptional demand from over 20 leading global and regional financial institutions reinforces confidence in ADNOC’s value creation strategy, innovative approach to financing, and proven track record in delivering mega projects.”

The transaction, as part of the Ghasha concession project, will enable responsible energy production needed to meet the growing demands of local industries.

Over 60 per cent of the investment value of the entire project will flow back into the UAE’s economy under ADNOC’s In-Country Value (ICV) programme, reinforcing ADNOC’s commitment to ensuring more economic value remains in the country from the contracts it awards.

The bank consortium includes Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Agricultural Bank of China, Bank of China, Citibank, The Development Bank of Singapore, Dubai Islamic Bank, Emirates Development Bank, Emirates NBD, First Abu Dhabi Bank, Gulf Investment Bank, Industrial and Commercial Bank of China, Mashreq Bank, Mizuho Bank, MUFG Bank, Natixis, National Bank of Kuwait, Sharjah Islamic Bank, Sumitomo Mitsui Banking Corporation, Saudi National Bank and Standard Chartered Bank.

It is the latest in a series of pioneering infrastructure development partnerships that ADNOC has executed over the past decade, including the US$4.9 billion (AED18 billion) oil pipeline partnership, and the US$10.1 billion (AED37.1 billion) gas pipeline agreement, with some of the world’s leading global infrastructure and institutional investors. 

ADNOC has also been involved in pioneering BOOT (build-own-operate-transfer) projects such as the US$3.8 billion (AED14 billion) project to power and decarbonise offshore operations and the US$2.2 billion (AED8.3 billion) project to deliver sustainable water supplies to onshore operations.

Hail and Ghasha is the world’s first gas development that aims for net-zero emissions. The project will capture 1.5 million tonnes per year (mtpa) of carbon dioxide, equivalent to removing over 300,000 fuel-powered cars off the road every year, and aims to deploy fully unmanned offshore operations.