ADNOC Gas awards $615mn Habshan CCUS project contract to Petrofac

ADNOC Gas, a unit of UAE's ADNOC, has awarded a $615mn engineering, procurement and construction (EPC) contract to Petrofac for a carbon capture project at Habshan gas processing plant, ADNOC Gas announced on October 3.

Petrofac Emirates will construct carbon capture units, pipeline infrastructure and a network of wells for carbon dioxide (CO2) injection at the Habshan gas processing plant. The Habshan carbon capture, utilisation and storage (CCUS) project will have the capacity to capture and permanently store 1.5mn tonnes/year of CO2 within geological structures deep underground. ADNOC Gas will be responsible for building, operating and maintaining the project on behalf of ADNOC.

The Habshan CCUS project is expected to be commissioned in 2026. CO2 will be injected and placed for permanent storage in ADNOC's Bab Far North field, located approximately 150 miles southwest of Abu Dhabi.

The Habshan CCUS project could support enhanced oil recovery of low carbon-intensity barrels and the production of low-carbon feedstocks such as hydrogen, ADNOC Gas said. The project will triple ADNOC's carbon capture capacity to 2.3mn tonnes/year.

The final investment decision on the Habshan CCUS project was announced last month. The decision to develop the project fully aligns with ADNOC's recently announced net zero by 2045 ambition and forms part of the company’s initial $15bn decarbonisation investment in low carbon solutions.