Abu Dhabi National Oil Company (ADNOC) signed on Monday a framework agreement with Saudi Aramco to explore potential opportunities for collaboration in the natural gas and liquefied natural gas (LNG) sectors.
The cooperation brings together two of the world’s biggest energy producers from the Gulf to work together in an area of strategic importance for both companies as they seek to boost revenues from natural gas and LNG business segments.
The agreement was signed by Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Amin Nasser, Saudi Aramco president and CEO.
Under the terms of the agreement, ADNOC and Aramco will jointly assess investment opportunities across the LNG value chain that could unlock value and drive revenue growth for both companies. They will partner on techno-economic feasibility studies and exchange knowledge and experience in LNG growth markets.
Al Jaber said: “The UAE and the Kingdom of Saudi Arabia have a strong relationship built on shared strategic interests. Increased cooperation between ADNOC and Saudi Aramco will ensure greater energy security and long-term economic prosperity for both nations.
“This agreement reinforces our strategy to undertake partnerships with forward-thinking partners who can help accelerate access to new growth centers of global demand. It will ensure that we are well-positioned to secure greater returns from global LNG demand growth by combining the technological and operational expertise of two of the world’s leading national oil companies.”
The framework agreement follows the announcement that Abu Dhabi’s Supreme Petroleum Council has approved ADNOC’s new integrated gas strategy that will sustain LNG production to 2040 and allow ADNOC to seize incremental LNG and gas-to-chemicals growth opportunities – where they arise – from the UAE’s dynamic demand/supply position and evolving energy mix.
Nasser said: “Our partnership with ADNOC continues to strengthen, after the recent decision to jointly develop a major refinery in India. We have shared strategic interest to expand our gas businesses, and this new agreement underlines our confidence in strong global gas demand growth.
"Our cooperation further supports the corporate transformation strategy of both ADNOC and Saudi Aramco to pursue opportunities that help unlock greater value for both companies and meet the growing needs of stakeholders around the world that depend on our energy to develop and grow their economies.”
LNG is the fastest-growing hydrocarbon with a growth rate of 4 percent per year, twice that of natural gas. Global LNG demand is expected to exceed 500 million tons per year by 2035, up from nearly 300 million tons per year in 2017.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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