The Abu Dhabi National Oil Co. (Adnoc) today signed 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 leading energy producers from the Arab 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 Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and Amin Nasser, 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.
“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…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,” Al Jaber said.
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 from the UAE’s dynamic demand/supply position and evolving energy mix. And it will enable the company to explore LNG investment opportunities, as well as create additional value from international LNG trading expansion, in response to the dominant role Asian markets will play in driving demand for LNG.
Aramco’s 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%/year, twice that of natural gas. Global LNG demand is expected to exceed 500 million metric tons/year (MMt/y) by 2035, up from nearly 300 MMt/y in 2017.
By Natasha Alperowicz
Source: Chemical Week
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