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Sharjah National Oil Corporation (SNOC), one of the major natural gas, condensate and LPG producers in the UAE, has signed a memorandum of understanding (MoU) with Japan’s Sumitomo Corporation wholly owned subsidiary Sumitomo Corporation Middle East FZE to conduct a joint feasibility study related to the potential for carbon capture and storage (CCS) in Sharjah and beyond.
The feasibility study will cover the entire CCS value chain, including the techno-economic analysis of CO2 capture, transport, storage, business models and assessment of regulatory aspects to assess the viability of a small to large-scale CCS project, SNOC said in a statement.
The mature gas field owned and operated by SNOC is potentially a competitive carbon sink for sequestration due to its large storage capacity and ideal location, close to multiple large-scale CO2 sources such as power plants and other industrial emitters.
The two companies aim to accelerate the decarbonisation of local industries through the CCS project, contributing to the UAE Net Zero 2050. This will be achieved by leveraging SNOC’s gas management, subsurface capability and know-how relating to the mature gas fields and Sumitomo’s project development and management expertise in energy and infrastructure sectors.
“As part of the joint feasibility study, we will collaborate with industry leaders, environmental organisations and regulators with the aim of developing a viable project which adheres to the highest standards,” said Hatem Al Mosa, CEO of SNOC.
SNOC has committed to reaching net zero on its own operations by 2032, and CCS has the potential to support this goal and beyond, he added.
Hajime Mori, Managing Director of Sumitomo Corporation Middle East FZE, said the company believes there is a big potential for CCS in the Middle East, which is a key technology to materialise energy transition.
Sumitomo is aiming to be carbon neutral by 2050, Mori disclosed.
(Writing by P Deol; Editing by Anoop Menon)
