Saudi Aramco, Abu Dhabi's ADNOC team up for gas exploration, LNG projects
12 November 2018
State-run oil companies Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) have signed a “strategic framework agreement” to invest in natural gas exploration and liquefied natural gas projects.
The heads of Saudi Aramco Amin H Nasser and UAE minister of state and ADNOC Group CEO Sultan Ahmed Al Jaber signed the agreement at a ceremony in Abu Dhabi.
The cooperation brings together two of the world’s leading energy producers from the Arabian Gulf to jointly work together in an area of strategic importance for both companies as they seek to boost revenues from the natural gas and LNG business segments, the two companies stated in a joint release.
Under the agreement, Saudi Aramco and ADNOC will jointly assess investment opportunities across the natural gas and LNG value chain, exchange technical knowledge and expertise in natural gas and LNG growth markets.
“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,” Nasser 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,” Al Jaber said.
“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 natural gas and LNG demand growth by combining the technological and operational expertise of two of the world’s leading National Oil Companies.”
ADNOC LNG, a subsidiary of ADNOC, is a reliable LNG supplier with a proven track record over 40 years and 2 per cent of the global share of the LNG market.
LNG is the fastest-growing hydrocarbon with a growth rate of 4% per annum. Global LNG demand is expected to exceed 500 million tonnes per annum by 2035, up from nearly 300 million tonnes per annum in 2017.