Adnoc Gas awards $615 million contract for Habshan CCUS project

Adnoc’s gas and LNG unit, Adnoc Gas, has awarded a $615 million contract to Petrofac Emirates for the Habshan carbon capture, utilization, and storage (CCUS) project.

Under the engineering, procurement and construction (EPC) contract, Petrofac Emirates will build carbon capture units, pipeline infrastructure, and a network of wells for carbon dioxide (CO2) injection at the Habshan gas processing plant, as part of Adnoc’s accelerated decarbonization plan, according to a statement by Adnoc Gas.

UAE’s Adnoc Gas said the Habshan CCUS project is one of the largest carbon capture projects in the Middle East and North Africa (MENA) region.

The project will have the capacity to capture and permanently store 1.5 million tons per annum (mtpa) of CO2 within geological structures deep underground.

Moreover, CO2 will be injected and placed for permanent storage in Adnoc Onshore’s Bab Far North Field, located southwest of Abu Dhabi.

Adnoc Gas will be responsible for building, operating, and maintaining the project on behalf of its parent Adnoc.

Boosting carbon capture capacity

Building on Adnoc’s landmark carbon capture facility, Al Reyadah, which has the capacity to capture up to 800,000 tons of CO2 per year, the Habshan CCUS project could support enhanced oil recovery of low carbon-intensity barrels and the production of low-carbon feedstocks such as hydrogen, to help customers decarbonize their operations, the firm said.

The Habshan CCUS project will triple Adnoc’s carbon capture capacity to 2.3 mtpa, equivalent to removing over 500,000 gasoline-powered cars from the road per year, Adnoc Gas said.

The firm expects to launch the Habshan CCUS project in 2026.

Adnoc launched Adnoc Gas on January 1 as it looks to further expand its international presence.

This year, Adnoc Gas signed LNG supply deals with France’s TotalEnergies, India’s top state oil refiner Indian Oil, Japan Petroleum Exploration (Japex), and the most recent deal with PetroChina.

Adnoc owns a 70 percent stake in Adnoc LNG, that currently produces about 6 mtpa of LNG from its facilities on Das Island.

Besides this terminal, Adnoc is also working on the second LNG export plant in Al Ruwais.

According to Adnoc, the LNG terminal would have two 4.8 mtpa LNG trains, boosting the company’s LNG production capacity by 9.6 Mtpa, as it looks to respond to the growing global demand for natural gas.

Most Popular

Venture Global’s Plaquemines LNG wraps up $4 billion notes offering

Venture Global's unit Plaquemines LNG has closed a $4 billion offering of senior secured notes.

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

More News Like This

Santos enters exclusive due diligence with Adnoc-led consortium

Australian LNG player Santos has entered into a process and exclusivity agreement with a consortium led by Adnoc's investment unit, XRG, related to the latter's $18.7 billion takeover offer.

India’s ITD Cementation scores Ruwais LNG jetty gig

India's ITD Cementation has won a contract to build a jetty for Adnoc's Al Ruwais LNG export project in the UAE.

Santos gets $18.7 billion takeover offer from Adnoc-led consortium

Australian LNG player Santos has received a takeover offer valued at $18.7 billion from a consortium led by Adnoc's investment unit XRG.

Adnoc Gas dishes out $5 billion in contracts for expansion project

Adnoc’s gas and LNG unit, Adnoc Gas, has taken the final investment decision on its Rich Gas Development (RGD) project. It also awarded $5 billion in contracts for the first phase of the project in the UAE.