ADNOC Gas Awards $600 Million Carbon Capture Contract to Petrofac

(Reuters) — U.K. 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 decarbonization 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.

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