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UK’s Petrofac gets over $600 million carbon capture contract from ADNOC Gas
Global Banking & Finance Review®
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(Reuters) -UK oil services firm Petrofac said on Tuesday it got a more than $600 million contract from ADNOC Gas for the Habshan carbon capture and storage (CCS) project, as the Abu Dhabi-based company steps up its decarbonisation plan.
(Reuters) -UK oil services firm Petrofac said on Tuesday it got a more than $600 million contract from ADNOC Gas for the Habshan carbon capture and storage (CCS) project, as the Abu Dhabi-based company steps up its decarbonisation plan.
Energy producers globally have identified CCS as key to cutting emissions without scaling back oil and gas output, and have started to invest in such technology at a time countries around the world are increasingly pushing towards cleaner fuels.
CCS technology removes carbon dioxide produced by industrial processes from the atmosphere, or captures it at the point of emission, and stores it underground.
The engineering, procurement and construction contract from ADNOC Gas would be a boost for Jersey-based Petrofac, which in August posted a half-yearly loss, hurt by subdued activity at its largest unit of engineering and construction.
The ADNOC contract involves delivery of carbon capture units, associated pipeline infrastructure and a network of wells for carbon dioxide recovery and injection, the London-listed company said in a statement.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Nivedita Bhattacharjee, Dhanya Ann Thoppl and Sharon Singleton)
Carbon capture is a technology that captures carbon dioxide emissions from industrial processes or directly from the atmosphere and stores it underground to reduce greenhouse gas emissions.
ADNOC Gas is a subsidiary of the Abu Dhabi National Oil Company, focused on natural gas production and processing, playing a key role in the UAE's energy sector.
Decarbonisation refers to the process of reducing carbon dioxide emissions associated with energy production and consumption, aiming to mitigate climate change.
A CCS project involves capturing carbon dioxide emissions from sources like power plants and storing it underground to prevent it from entering the atmosphere.
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