Both the firms have signed an agreement owing to which two of the biggest energy producers in the Gulf region will come together to increase business in the natural gas and LNG sectors.
Abu Dhabi/UAE – Saudi Aramco and the Abu Dhabi National Oil Company (Adnoc) recently signed a framework agreement to explore opportunities for collaboration in the Natural Gas and Liquefied Natural Gas (LNG) sector.
The co-operation 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 agreement was signed by Amin H. Nasser, Saudi Aramco President and CEO, and His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO on the sidelines of Adipec.
Saudi Aramco and Adnoc will jointly assess investment opportunities across the natural gas and LNG value chain, exchange technical knowledge as well as expertise in natural gas and LNG growth markets. This move has been undertaken by both the companies post its decision to jointly develop a major refinery in Ratnagiri, India. The new agreement underlines the confidence in strong global gas demand growth for both the firms.
Increased co-operation between Adnoc and Saudi Aramco is also expected to ensure greater energy security and long-term economic prosperity for both the nations. 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.