Masdar Awards Design Contract for Abu Dhabi Carbon Capture and Storage Project to Mustang Engineering

Tuesday, Nov 18, 2008

Masdar, an Abu Dhabi government initiative, owned by Mubadala Development Company, announced today the selection of Houston, Texas-based Mustang Engineering, a subsidiary of international energy services company John Wood Group PLC, to provide front-end engineering and design (FEED) services for Masdar’s Carbon Capture and Storage (CCS) project in the United Arab Emirates.

The project constitutes the first phase in a series of facilities capturing carbon dioxide emissions from Abu Dhabi’s industrial and power generation plants. The CO2 will be transported in a pipeline network and injected in Abu Dhabi’s oil reservoirs for enhanced oil recovery. The objective of the CCS network is to reduce Abu Dhabi’s carbon footprint and replace the vast amount of natural gas currently re-injected into oil reservoirs.

The first phase consists of five million tons of CO2 gas captured per year as of end 2013 from three emission sources: a gas-fired power plant, an aluminium smelter and a steel mill.

“This project marks a major milestone in our leadership’s vision to provide clean energy, reduce carbon emissions and promote sustainable development,” said Masdar CEO Dr. Sultan Al Jaber.

“We selected Mustang Engineering because of their industry-leading position in CO2 recovery, conditioning and injection projects, as well as their expertise in energy production projects worldwide. This series of projects will reduce our carbon footprint, and position Masdar and Abu Dhabi as global leaders in clean power.”

The FEED follows a successful eight-month feasibility study conducted by Masdar in 2007 to investigate CO2 emission sources in Abu Dhabi and evaluate the technical and economic feasibility of CO2 capture and transportation to oil reservoirs.

"Mustang is excited to be part of this strategic initiative with Masdar. This world-class CCS development greatly complements our extensive experience with CO2 related projects. We are committed to the support of sustainable development and look forward to seeing the impact this project will have on the environment of the region," said Steve Knowles, Mustang president.

J P Kenny, also a Wood Group company and operating from their Abu Dhabi office, will be responsible for FEED services for the CO2 pipeline network that will connect the capture sites in Abu Dhabi to the oilfield injection sites. This work is scheduled for completion in the 4th quarter 2009.

About Masdar

The Masdar Initiative is Abu Dhabi’s multi-faceted, multibillion dollar investment in the development and commercialization of innovative technologies in renewable, alternative and sustainable energies as well as sustainable design. Masdar is driven by the Abu Dhabi Future Energy Company (ADFEC), a wholly owned company of the government of Abu Dhabi through the Mubadala Development Company. In January 2008, Abu Dhabi announced it will invest $15 billion in Masdar, the largest single government investment of its kind.

Masdar’s Carbon Management Unit (CMU) is actively developing a broad portfolio of carbon-related projects in oil & gas, heavy industry, renewable energy and waste management, together with various government and industry partners. The unit is particularly focused on advancing CO2 capture and storage (CCS) for enhanced oil recovery - a strategic technology with positive impact on the regional economy.

For more information about the Masdar Initiative, please visit www.masdaruae.com.

About Wood Group

Wood Group is an international energy services company with approximately $5.0bn sales, employing approximately 27,000 people worldwide and operating in 46 countries. The Group has three businesses - Engineering & Production Facilities, Well Support, and Gas Turbine Services - providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil & gas, and power generation industries worldwide.

About Mustang

Mustang is an independent services provider to the global oil, gas, chemical and manufacturing industries. The company specializes in design, engineering, procurement, project management and construction management and offers these services through its six business units: upstream oil and gas, midstream, pipeline, automation and control, refining and petrochemicals, and process & industrial. Mustang has a staff of 5,000 worldwide, with offices in the United States, United Kingdom, Australia, India, and the Middle East.

About J P Kenny

J P Kenny, one of the world’s leading independent subsea and pipeline organizations, operates from seven locations worldwide and provides its clients with solutions that range from the planning stage through to procurement, fabrication, construction management, commissioning and operations support services. J P Kenny operates from offices in Australia, India, Indonesia, Norway, the United Kingdom, the United States and United Arab Emirates.

 

Source: Wood Group