The UAE's Abu Dhabi Future Energy Company (ADFEC) has awarded Canada's SNC-Lavalin a contract for a feasibility study on a project to capture carbon emissions and boost oil output, ADFEC said on Wednesday.
It is part of a plan by the United Arab Emirates to reduce emissions of greenhouse gases, blamed for global warming, by 40 %.
The aim is to pump the gas to oilfields for injection underground to sustain reservoir pressure and maximise crude output, while freeing up the natural gas that is currently reinjected for this purpose.
The UAE is the world's sixth largest oil exporter and aims to boost capacity to 3.5 million bpd early next decade from around 2.8 million-2.9 million bpd now.
The study will be completed by the end of this year, government-run ADFEC said in a statement. It is the first step in establishing a country-wide network of carbon capture and storage (CCS) projects, it said.
CCS is unproven new technology that works by burying carbon dioxide (CO2) produced by burning fossil fuels.
The multi-billion dollar CCS project will be the largest of its kind in the world and the first to be undertaken at a national level, ADFEC said.
SNC-Lavalin will identify and evaluate the potential for capturing emissions from the UAE's oil and gas production facilities, power plants, petrochemical facilities and existing and planned industrial plants.
It will also provide conceptual engineering for capturing, processing, transporting and storing carbon.
The UAE, like most of its Gulf Arab neighbours, is struggling to meet its rapidly rising demand for gas.
SNC-Lavalin was one of five companies that ADFEC invited to bid. The others were Foster Wheeler, Technip, Parsons and Jacobs Engineering.
ADFEC is owned by Mubadala Development Company, a 100 % Abu Dhabi government-owned entity.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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