ADNOC Gas plc, a subsidiary of the state energy company Abu Dhabi National Oil Company, on Tuesday announced the award a contract worth 2.26 billion dirhams ($615 million) to Petrofac Emirates for its carbon capture project.

The engineering, procurement and construction (EPC) contract covers the construction of carbon capture units, pipeline infrastructure and a network of wells for carbon dioxide (CO2) injection at the Habshan gas processing plant, the integrated gas processing company said in a regulatory filing on ADX where its shares trade.

The Habshan Carbon Capture, Utilization and Storage (CCUS) project, one of the largest carbon capture projects in the MENA region, will have the capacity to capture and permanently store 1.5 million tons per annum (mtpa) of CO2 within geological structures deep underground. The  project, located near Abu Dhabi, is expected to be commissioned in 2026.

CCUS projects are recognized by both the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) as a critical decarbonization enabler in achieving global climate goals.

ADNOC Gas will be responsible for building, operating and maintaining the project on behalf of ADNOC.

Over 65% of the contract value will flow back into the UAE’s economy through ADNOC’s In-Country Value (ICV) program, supporting local economic and industrial growth and diversification.

(Writing by Brinda Darasha; editing by Daniel Luiz)