Oil and Gas News
Petrofac Secures $615 Million EPC Contract for ADNOC's Habshan CCUS Project
Petrofac Emirates LLC has been awarded a substantial $615 million engineering, procurement, and construction (EPC) contract by ADNOC Gas plc for the development of carbon capture units, pipeline infrastructure, and an underground carbon dioxide injection network at the Habshan gas processing plant. This endeavor is part of Abu Dhabi National Oil Company's (ADNOC) aggressive decarbonization strategy.
The Habshan Carbon Capture, Utilization, and Storage (CCUS) project, one of the largest in the Middle East and North Africa (MENA) region, is designed to capture and permanently store 1.5 million tons per annum (mtpa) of carbon dioxide deep underground. The captured carbon dioxide will be stored in ADNOC Onshore's Bab Far North Field, located approximately 150 miles southwest of Abu Dhabi, with commissioning anticipated in 2026.
The project is in line with ADNOC's commitment to reducing greenhouse gas emissions and pursuing sustainable, lower-carbon growth opportunities. It is an integral part of ADNOC Gas' decarbonization objectives and will support enhanced oil recovery and the production of low-carbon feedstocks like hydrogen.
Over 65% of the contract value will be reinvested in the UAE economy through ADNOC's In-Country Value program, bolstering local economic growth and diversification.
Petrofac Group Chief Executive Tareq Kawash highlighted the UAE's commitment to cleaner energy and expressed the company's readiness to support ADNOC Gas in achieving its decarbonization goals.