ADNOC Gas awards $615 million contract for one of MENA’s largest integrated carbon capture projects

ADNOC Gas plc, a large-scale integrated gas processing company, announced today it has awarded a $615 million (AED2.26 billion) 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, as part of ADNOC’s accelerated decarbonisation plan.

The Habshan Carbon Capture, Utilisation 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 unique platform to connect sources of emissions and sequestration sites. ADNOC Gas will be responsible for building, operating and maintaining the project on behalf of ADNOC.

Ahmed Mohamed Alebri, Chief Executive Officer of ADNOC Gas, said: “Integrated carbon capture projects, such as the Habshan CCUS project, are essential building blocks for ADNOC Gas to achieve its decarbonisation 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 maximising energy output while minimizing our emissions, steering us toward a more sustainable and environmentally responsible future.”

CCUS projects are recognized by both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) as a critical decarbonisation enabler in achieving global climate goals.

Over 65% 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 decarbonise 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 500,000 gasoline-powered cars from the road per year