The Abu Dhabi National Oil Company (ADNOC) said on Thursday that contracts had been issued for a gas project that would be the first in the world to operate with net zero carbon dioxide emissions.
Italian engineering companies Maire Tecnimont (MTCM.MI) and Saipem (SPMI.MI) said separately that ADNOC had given them contracts for $8.7 billion and $4.1 billion, respectively, for the project.
Before the end of the decade, the Hail and Ghasha Offshore Development project will produce 1.5 billion standard cubic feet of gas per day thanks to the signing of two engineering, procurement, and construction (EPC) contracts.
“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,” said Abdulmunim Al Kindy, ADNOC’s executive director for upstream operations.
According to the release, the Hail and Ghasha project will increase ADNOC’s committed expenditures for carbon capture capacity to roughly 4 mtpa by capturing 1.5 million tonnes of CO2 annually (mtpa).
Last Monday, ADNOC announced that it plans to boost its carbon capture capacity to 10 mtpa by 2030. ADNOC, which in July advanced its net zero carbon emissions target to 2045, announced this goal in July.
The nitrogen fertiliser factory owned by Fertiglobe, a joint venture between ADNOC and Dutch fertiliser manufacturer OCI, will receive a 10 tonne per day carbon capture unit installed by UK-based Carbon Clean.
From November 30 to December 12, the United Arab Emirates will serve as the host country for the COP28 climate summit. ADNOC CEO Sultan al-Jaber will be its next president, which has angered environmentalists.
Previously, The Saudi Crown Prince Mohammed Bin Salman and Indian Prime Minister Narendra Modi have decided to form a joint task team to expedite the project. It followed the announcement of another large-scale cooperative initiative, the India-Middle East-Europe Economic Corridor, at the G20 Summit.
According to the Indian government, India and the United Arab Emirates began settling bilateral commerce in their respective national currencies in August. India’s leading refiner paid in rupees for the purchase of a million barrels of oil from the Middle Eastern country.
The Indian Embassy in the UAE announced that Indian Oil Corp had paid Abu Dhabi National Oil Company (ADNOC).
