ADNOC awarded $17 billion worth of contracts as it announced on Thursday the final investment decision to develop the Hail and Ghasha offshore gas project which the United Arab Emirates' energy giant aims to be the world's first such project operating with net-zero emissions.
The contract awards went to a joint venture between National Petroleum Construction Company and Italy's Saipem for an EPC contract for the offshore facilities on artificial islands and subsea pipelines, and another EPC contract to Tecnimont to deliver the onshore scope, including CO2 and sulfur recovery and handling.
Hail and Ghasha are part of Abu Dhabi's Ghasha Concession which is set to produce more than 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade, contributing to UAE gas self-sufficiency and ADNOC's gas growth and export expansion plans, the UAE's national company said.
The project will capture 1.5 million tonnes per year (mtpa) of CO2, taking ADNOC's committed investment for carbon capture capacity to almost 4 mtpa. The CO2 will be captured, transported onshore and safely stored underground, while low-carbon hydrogen is produced that can replace fuel gas and further reduce emissions. The project will also use clean power from nuclear and renewable sources from the grid.
Earlier this year, ADNOC said it was bringing forward its target for net-zero emissions to 2045, from a previous target of 2050, becoming the first oil company in its peer group to commit to net zero in 2045. The new targets come as the UAE is preparing to host the COP28 climate summit next month. The president-designate of the COP28 summit is ADNOC's group CEO Sultan Ahmed Al Jaber.
At the same time, ADNOC is accelerating plans to raise its oil production capacity to 5 million barrels per day (bpd) from 4 million bpd now, but it is also looking to decarbonize part of its operations with the use of grid energy from renewables and nuclear generation to power onshore operations.
By Michael Kern for Oilprice.com
Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, More
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