ADNOC’s Hail and Ghasha Project Targets Net Zero Emissions
With Chief Legal Counsel, Salem Mohammed Al Darei (pictured) at the helm of its legal department, Abu Dhabi National Oil Company (ADNOC) has officially approved the final investment decision (FID) and awarded contracts for the groundbreaking Hail and Ghasha Offshore Development project, aiming to operate with net zero carbon dioxide (CO2) emissions. This ambitious initiative reflects ADNOC’s commitment to responsible energy production, aligning with its Net Zero by 2045 aspiration and accelerated decarbonization plan.
The contract awards, comprising two engineering, procurement, and construction (EPC) agreements, were formalized during the world’s largest energy industry gathering, ADIPEC. Hail and Ghasha are integral components of the Ghasha Concession in Abu Dhabi, poised to produce over 1.5 billion standard cubic feet per day (bscfd) of gas by the end of the decade. This substantial gas production will contribute significantly to UAE’s gas self-sufficiency and ADNOC’s ambitious growth and export plans for natural gas.
Notably, over 60 percent of the total investment value for this project will circulate back into the UAE’s economy, reinforcing ADNOC’s unwavering commitment to enhancing economic value retention within the nation through its In-Country Value (ICV) program.
Abdulmunim Al Kindy, ADNOC Upstream Executive Director, emphasized the significance of this milestone, stating, “The final investment decision for Hail and Ghasha is a major milestone for ADNOC and our strategic partners, and we are delighted to advance this pioneering project with net zero carbon dioxide emissions, significantly boosting ADNOC’s carbon capture capacity as we work toward a lower carbon future.”
Al Kindy further highlighted the project’s broader impact, including driving in-country value, offering valuable career opportunities for UAE Nationals, and fostering socio-economic growth.
The Hail and Ghasha development introduces innovative decarbonization technologies within an integrated solution. It will capture 1.5 million tonnes of CO2 annually, increasing ADNOC’s committed carbon capture capacity to nearly 4 million tonnes per annum. The captured CO2 will be transported onshore and securely stored underground. Simultaneously, low-carbon hydrogen will be generated to replace fuel gas, further mitigating emissions. The project will leverage clean energy sources, including nuclear and renewables from the grid.
This initiative aligns with ADNOC’s broader carbon management strategy, aiming to establish a comprehensive platform connecting emission sources and sequestration sites to expedite ADNOC and the UAE’s decarbonization objectives. It comes on the heels of ADNOC’s recent commitment to double its carbon capture capacity target, reaching 10 million tonnes per annum of CO2 by 2030.
The first EPC contract encompasses offshore facilities, including installations on artificial islands and subsea pipelines, awarded to a joint venture between National Petroleum Construction Company and Saipem. The second EPC contract pertains to onshore aspects, including CO2 and sulfur recovery and handling, and has been awarded to Tecnimont.