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.

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