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The deal is likely to bolster UAE's efforts to build CCUS capacity in locations including the Musaffah industrial district.

By Callum Cyrus

UAE's Abu Dhabi National Oil Company and TotalEnergies have agreed to contemplate carbon capture, utilisation and storage in the Emirates as part of a new strategic partnership agreement between the two companies, TotalEnergies announced July 19.

The agreement was announced as UAE and France struck a bi-government collaboration deal aimed at shoring up energy security and transition cooperation between both countries.

Surging oil prices over the past year have increased the headroom for ADNOC to invest in CCUS to support the national climate mitigation strategy, which aims to achieve net-zero emissions by 2050. That would make the UAE the first carbon-neutral society in the Middle East and North Africa.

The UAE already has one major CCS project planned in Abu Dhabi, under the management of Al Reyadah: Abu Dhabi Carbon Capture Company. Al Reyadah will source CO2 from the Emirates Steel Industries factory in Mussafah, an industrial district to the southwest of Abu Dhabi. It was unclear whether TotalEnergies will participate in the Emirates Steel project.

Patrick Pouyanne, chairman and CEO of TotalEnergies, said: "I am pleased that TotalEnergies is reaffirming and expanding its strategic collaboration with the United Arab Emirates through a multi-energy cooperation with ADNOC, our long-standing partner in the UAE.

"Our partnership across the entire energy value chain allows our two companies to join forces to contribute to the energy supply of global markets, while reducing carbon emissions from our operations.”

TotalEnergies holds several assets in partnership with ADNOC, including a 15% stake in ADNOC's gas processing division, 5% in ADNOC's LNG division and 40% in the unconventional gas concession Ruwais Diyab.

The agreement with ADNOC also covers the supply of diesel from the UAE to France, which should ease French fuel shortages caused by the war in Ukraine. TotalEnergies also plans to look at new oil and gas projects in the UAE with ADNOC, in a bid to contribute to global energy security.