ADNOC Gas, a unit of Abu Dhabi National Oil Company (ADNOC), has awarded a $615m (SR2.3bn) contract to engineering services provider Petrofac Emirates.

The engineering, procurement, and construction (EPC) contract is for the Habshan carbon capture, utilisation and storage (CCUS) project.

Under the scope of the work, Petrofac will build carbon capture units, pipeline infrastructure, and drill a series of wells to inject carbon dioxide (CO₂).

The CCUS project is a component of ADNOC’s decarbonisation plan and is situated at the Habshan gas processing plant, 150km south-west of Abu Dhabi. ADNOC is backed by the United Arab Emirates (UAE) Government.

According to ADNOC Gas, the Habshan CCUS project will have the capacity to capture and permanently store 1.5 million tonnes per annum (mtpa) of CO₂, making it one of the largest carbon capture projects in the Middle East and North Africa region.

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By GlobalData

ADNOC Gas CEO Ahmed Mohamed Alebri said: “Integrated carbon capture projects, such as the Habshan CCUS project, are essential building blocks for ADNOC Gas to achieve its decarbonisation goals.

“This project represents our commitment to significantly reduce greenhouse gas emissions while unlocking new and attractive commercial opportunities for delivering sustainable, lower-carbon growth for the company.”

Petrofac group chief executive Tareq Kawash said: “By accelerating plans to make energy cleaner, the UAE is investing in its future. We look forward to combining our CCUS expertise and UAE project delivery experience to support ADNOC Gas in delivering on their decarbonisation plans, maximising energy output while minimising emissions, and helping to support the UAE’s energy transition.”

Once operational, the project is expected to increase ADNOC’s capacity to capture CO₂ threefold to 2.3mtpa.

The Habshan CCUS project is expected to be operational in 2026 and the CO₂ will be injected for permanent storage in ADNOC Onshore’s Bab Far North Field, which is located more than 240km south-west of Abu Dhabi.

ADNOC Gas will build, run and maintain the project for ADNOC, which announced the final investment decision for the project early last month.