Saudi Aramco and the Abu Dhabi National Oil Company (ADNOC) signed a framework agreement on Monday to explore collaborative opportunities in the natural gas and Liquefied Natural Gas (LNG) sector, the two companies said in a joint statement.
The agreement was signed on the sidelines of the four-day Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), which began on Monday and will run until Thursday in the United Arab Emirates' capital.
According to 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.
"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 companies said.
Commenting on the agreement, Saudi Aramco President and CEO Amin Nasser said the partnership between the two companies continued 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," he said.
"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," he added.
U.A.E. Minister of State and ADNOC Group CEO Sultan Ahmed Al Jaber said increased cooperation between ADNOC and Saudi Aramco would 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 natural gas and LNG demand growth by combining the technological and operational expertise of two of the world’s leading national oil companies," he added.
According to the statement, LNG is the fastest-growing hydrocarbon with a yearly growth rate of 4 percent. Global LNG demand is expected to exceed 500 million tons per year by 2035, up from nearly 300 million tons in 2017.
By Hale Turkes