ADNOC takes FID, awards EPC for Abu Dhabi sour gas megaproject
Abu Dhabi National Oil Co. (ADNOC) has taken final investment decision and awarded two major engineering, procurement, and construction (EPC) contracts for its Hail and Ghasha project in the Ghasha concession, the world’s largest offshore sour gas development located northwest of the Emirate of Abu Dhabi (OGJ Online, July 27, 2022).
Approved for FID on Oct. 5 and set to produce more than 1.5 bcfd of natural gas by yearend 2029, the multibillion-dollar project is designed operate with net zero carbon dioxide (CO2) emissions via integration of decarbonization technologies to enable capture of 1.5 million tonnes/year (tpy) of CO2 that will boost ADNOC’s overall committed carbon capture capacity to nearly 4 million tpy, ADNOC said.
A key component of ADNOC’s integrated gas masterplan aimed at ensuring a sustainable and economic supply of natural gas to meet the growing requirements of the UAE as well as export markets, the Hail and Ghasha development project also forms an important step in furthering the operator’s internal sustainability journey under the UAE’s Net Zero by 2050 Strategic Initiative, which ADNOC has brought forward internally by 5 years to 2045.
ADNOC said the project—which will also leverage clean power from nuclear and renewable sources from the regional grid—will entail capturing CO2 offshore for subsequent transport onshore to be safely stored underground.
The project additionally will include production of low-carbon hydrogen to replace fuel gas used in operations, further helping to reduce emissions, according to the operator.
ADNOC said carbon captured at Hail and Ghasha will support ADNOC’s wider carbon management strategy, which aims to create a unique platform connecting all sources of emissions and sequestration sites to accelerate decarbonization goals.
WIth 55% of the project’s total investment value to flow back into the UAE’s economy under ADNOC’s in-country value program to ensure more economic value remains in the country from contracts the company awards, the Hail and Ghasha project also will provide employment opportunities for UAE nationals to further stimulate regional socio-economic growth, ADNOC said.
“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 upstream executive director.
While the Ghasha concession includes Hail, Ghasha, Hair Dalma, Bu Haseer, Satah, Nasr, SARB, Shuweihat, and Mubarraz offshore fields, the newly approved Hail and Ghasha development project—which included one of the UAE’s largest marine environmental baseline surveys ever and uses artificial islands to reduce dredging and drilling activities—will produce gas from Hail and Ghasha fields, serving as a hub for fellow concession fields, ADNOC said.
ADNOC operates the Ghasha concession with partners Eni SPA (25%), Wintershall Dea AG (10%), OMV AG (5%), and PJSC LUKOIL (5%).
EPC contracts
Upon announcing FID, ADNOC also confirmed award of two major EPC contracts for the Hail and Ghasha project’s associated infrastructure.
As part of an $8.2-billion contract, a consortium of National Petroleum Construction Co. and Saipem SPA will deliver engineering, procurement, and construction (EPC) of four drilling centers and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 km of subsea pipelines, Saipem said in a separate release Oct. 5. Saipem values its share of the contract at $4.1 billion.
Under a second contract valued at $8.74-billion, Maire SPA’s Tecnimont SPA will provide EPC services for the project’s onshore scope, including installations for recovery and handling of CO2 and sulfur, ADNOC said.
In a separate Oct. 5 release, Maire said its scope of delivery specifically will include EPC services for two gas processing units, three sulfur recovery sections, associated utilities and offsites, as well as export pipelines.
Tecnimont’s work under the contract—which also will include development of digital solutions aimed at reducing emissions and optimizing energy consumption at the project’s onshore installations—is scheduled to be completed during 2028, Maire said.
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
