ADNOC advances net zero ambition with Hail and Ghasha Offshore Development

ADNOC has taken a significant step towards its Net Zero by 2045 ambition by announcing the final investment decision and contract awards for the Hail and Ghasha Offshore Development project. This groundbreaking project is set to operate with net zero carbon dioxide (CO2) emissions, aligning with ADNOC’s commitment to responsible energy production and decarbonization.

The contract awards, consisting of two engineering, procurement, and construction (EPC) contracts, were formalized at ADIPEC, the world’s largest energy industry gathering. Hail and Ghasha are integral components of Abu Dhabi’s Ghasha Concession, expected to generate over 1.5 billion standard cubic feet per day (bscfd) of gas by the end of the decade. This substantial gas production will contribute to UAE’s gas self-sufficiency and ADNOC’s growth and export expansion plans.

An impressive aspect of this project is that more than 60% of the investment value will circulate back into the UAE’s economy, reinforcing ADNOC’s commitment to bolstering economic value within the country through its In-Country Value (ICV) program.

ADNOC advances net zero ambition with Hail and Ghasha Offshore Development. Photo courtesy of ADNOC.

Abdulmunim Al Kindy, ADNOC Upstream Executive Director, expressed his enthusiasm, stating, “The final investment decision for Hail and Ghasha is a major milestone for ADNOC and our strategic partners. We are delighted to advance this pioneering project with net zero carbon dioxide emissions, significantly enhancing ADNOC’s carbon capture capacity as we strive for a lower carbon future.”

Al Kindy added, “The project will create in-country value, offer highly skilled career opportunities for UAE Nationals, and stimulate socio-economic growth for the nation. Natural gas plays a crucial role as a transition fuel, and ADNOC will continue to responsibly tap into its gas resources to achieve UAE gas self-sufficiency, expand our export capacity, and bolster global energy security.”

The Hail and Ghasha development design incorporates innovative decarbonization technologies into an integrated solution. It aims to capture 1.5 million tonnes per year (mtpa) of CO2, increasing ADNOC’s committed investment in carbon capture capacity to nearly 4 mtpa. The captured CO2 will be transported onshore and safely stored underground, while low-carbon hydrogen production will replace fuel gas, further reducing emissions. The project will also leverage clean power from nuclear and renewable sources from the grid.

The carbon capture efforts at Hail and Ghasha will support ADNOC’s broader carbon management strategy, connecting emissions sources and sequestration sites to accelerate decarbonization goals for ADNOC and the UAE. This decision follows ADNOC’s recent commitment to double its carbon capture capacity target to 10 mtpa of CO2 by 2030.

The first EPC contract for offshore facilities, including artificial islands and subsea pipelines, has been awarded to a joint venture between National Petroleum Construction Company and Saipem S.p.A. The second EPC contract, encompassing onshore activities such as CO2 and sulfur recovery and handling, has been awarded to Tecnimont S.p.A.