Adnoc Gas awards $615m carbon capture contract

03 October 2023
Petrofac will perform EPC works on the project to build a carbon capture, utilisation and storage facility at the Habshan gas processing complex

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Adnoc Gas, a subsidiary of Abu Dhabi National Oil Company (Adnoc Group), has awarded UK-headquartered Petrofac the main contract for a project to develop a large carbon capture facility at its Habshan gas processing complex in Abu Dhabi.

The value of the engineering, procurement and construction (EPC) contract awarded to Petrofac is $615m, Adnoc Group said in a statement on 3 October.

The planned Habshan carbon capture, utilisation and storage (CCUS) facility will have the capacity to capture and permanently store 1.5 million tonnes a year (t/y) of carbon dioxide (CO2) within geological formations deep underground.

The Habshan CO2 recovery project will be built, operated and maintained by Adnoc Gas, and is expected to be commissioned in 2026.

Adnoc Gas reached a financial investment decision (FID) on the project in early September.

The proposed facility will feature carbon capture units at the Habshan gas processing plant, pipeline infrastructure and a network of wells for CO2 injection into oil and gas fields in Abu Dhabi.

Captured CO2 will be permanently stored in reservoirs deep in the sub-surface by deploying closed-loop CO2 capture and reinjection technology at the well site at Adnoc Onshore’s Bab Far North Field, located about 240 kilometres southwest of Abu Dhabi city.

Adnoc decarbonisation efforts

The Habshan CCUS project is aligned with Adnoc Group’s overall target of attaining net-zero emissions by 2045 and reaching zero methane emissions by 2030.

The project is projected to triple Adnoc’s carbon capture capacity to 2.3 million t/y, equivalent to removing over 500,000 gasoline-powered cars from the road every year.

In January, Adnoc Group announced allocating a budget of $15bn for projects to decarbonise its operations. These projects will include investments in clean power, CCUS, further electrification of its operations, energy efficiency and new measures to build on Adnoc’s zero routine gas flaring policy.

The Habshan CCUS project is part of the portfolio of investments in the $15bn budget allocation.

More recently, Adnoc Group has doubled its target of capturing CO2 emissions from its operations to 10 million t/y by 2030. Adnoc’s board of directors endorsed the new target at a meeting in late September.

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