ADNOC awards $615mn contract for Habshan project to Petrofac

By Arya M Nair, Official Reporter
  • Follow author on
ADNOC Gas_Petrofac Emirates EPC Contract
Rep.Image | Courtesy: Petrofac

ADNOC Gas has awarded a $615 million Engineering, Procurement and Construction (EPC) contract to Petrofac Emirates for constructing 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, Utilization and Storage (CCUS) project is one of the largest carbon capture projects in the Middle East and North Africa (MENA) region and will have the capacity to capture and permanently store 1.5 million tons per annum (mtpa) of CO2 within geological structures deep underground, as ADNOC builds a unique platform to connect sources of emissions and sequestration sites.

Ahmed Alebri_ADNOC Gas EPC contract to Petrofac
Ahmed Alebri

“Integrated carbon capture projects, such as the Habshan CCUS project, are essential building blocks for ADNOC Gas to achieve its decarbonization 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. This large-scale project reaffirms our steadfast commitment to maximizing energy output while minimizing our emissions, steering us toward a more sustainable and environmentally responsible future.”

CCUS projects are recognized by the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) as critical decarbonization enablers in achieving global climate goals. Over 65 percent of the contract value will flow back into the UAE’s economy through ADNOC’s In-Country Value (ICV) program, supporting local economic and industrial growth and diversification.

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

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.

Using best-in-class technology, the Habshan CCUS project will triple ADNOC’s carbon capture capacity to 2.3 mtpa, equivalent to removing over 500,0001 gasoline-powered cars from the road per year.

Related News | ADNOC awards $700mn EPC project for Habshan Complex to Petrofac