UAE's ADNOC awards $17 B in contracts for gas project
(Reuters) - Abu Dhabi National Oil Company (ADNOC) said on Thursday it had 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.
The two engineering, procurement and construction (EPC) contracts were signed for the Hail and Ghasha Offshore Development project that will produce 1.5 billion standard cubic feet per day (bscfd) of gas before the end of the decade.
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.
MAIRE's onshore EPC contract is worth about $8.74 billion and includes CO2 and sulfur recovery and handling, ADNOC said.
MAIRE will focus on two gas processing units, three sulfur recovery sections, the associated utilities and offsites as well as export pipelines, it said.
Saipem and NPCC will build on artificial islands four drilling centers and one processing plant, as well as various offshore structures and more than 300 km (186 miles) of subsea pipelines, Saipem said.
MAIRE's shares were up about 8% at 0730 GMT, while Saipem's were up roughly 4%.
"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," Abdulmunim Al Kindy, ADNOC's upstream executive director, said in a statement.
The Hail and Ghasha project will capture 1.5 million tons per year (mtpa) of CO2, which would raise ADNOC's committed investments for carbon capture capacity to almost 4 mtpa, the statement said.
ADNOC - which in July brought forward its net zero carbon emissions target to 2045 - last week said it aimed to increase its carbon capture capacity to 10 mtpa by 2030.
On Tuesday, ADNOC said it would install a 10 ton-per-day carbon capture unit manufactured by UK-based Carbon Clean at a nitrogen fertilizer plant owned by Fertiglobe, a joint venture between it and Dutch fertilizer company OCI.
The United Arab Emirates (UAE) hosts the United Nations COP28 climate summit from Nov. 30 to Dec. 12. Its incoming president is ADNOC CEO Sultan al-Jaber, a choice that has drawn criticism from climate activists.
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