Abu Dhabi: ADNOC has awarded contracts worth about $16.94 billion for a gas project that aims to operate with net zero carbon dioxide emissions, adding it would be the first in the world to do so.
This project aims to achieve net-zero carbon dioxide (CO2) emissions, aligning with ADNOC’s commitment to responsible energy production and its Net Zero by 2045 goal.
The project comprises two engineering, procurement, and construction (EPC) contracts and is part of the Ghasha Concession in Abu Dhabi. It’s expected to produce over 1.5 billion standard cubic feet per day of gas by the end of the decade. Over 60 per cent of the project’s investment value will contribute to the UAE’s economy through ADNOC’s In-Country Value (ICV) program.
Italian engineering group MAIRE and energy services group Saipem said in separate statements they had been awarded $8.7 billion and $4.1 billion contracts by ADNOC respectively for the project.
ADNOC said the offshore EPC contract - worth about $8.2 billion - was awarded to a joint venture between Saipem and National Petroleum Construction Company (NPCC), owned by Abu Dhabi wealth fund ADQ.
“The project will drive in-country value, provide highly skilled career opportunities for UAE Nationals and stimulate socio-economic growth for the nation,” said Abdulmunim Al Kindy, ADNOC Upstream Executive Director. “Natural gas is an important transition fuel and ADNOC will continue to responsibly unlock its gas resources to enable gas self-sufficiency for the UAE, grow our export capacity and support global energy security.”
The project’s design incorporates innovative decarbonization technologies, capturing 1.5 million tonnes per year of CO2. This investment brings ADNOC’s total carbon capture capacity commitment to nearly 4 million tonnes per year. Additionally, low-carbon hydrogen production will replace fuel gas, and clean power from nuclear and renewable sources will be integrated into the grid.
The carbon captured will support ADNOC’s broader carbon management strategy, with a goal to reach 10 million tonnes per year of CO2 capture by 2030. The project’s EPC contracts have been awarded to various companies.
Local manufacturing opportunities worth Dh10 billion
ADNOC has also entered agreements with 30 firms to locally manufacture non-oil products in its supply chain, supporting its decarbonization efforts and the ‘Make it in the Emirates’ initiative. These agreements aim to produce up to Dh10 billion ($2.7 billion) worth of products in ADNOC’s procurement pipeline by 2027, stimulating industrial growth, creating jobs, and enhancing the supply chain’s resilience.
“The UAE boasts a competitive industrial sector that is delivering innovative products and advanced technology,” said Omar Ahmed Suwaina Al Suwaidi, Undersecretary of the Ministry of Industry and Advanced Technology. “Localizing key supply chains is essential to ensuring we continue to strengthen and diversify our economy.”
- With inputs from Reuters